São Paulo – Brazilian food processor MBRF said in its second-quarter earnings report, released Thursday night (13), that its presence in the Gulf helped the company mitigate operational challenges. The region has been affected by a conflict involving the United States and Israel against Iran since February 28.
MBRF reported higher costs in dollars through Sadia Halal but also increased profitability. EBITDA (earnings before interest, taxes, depreciation and amortization) reached USD 95 million, with an operating margin of 16.1%, the highest since the first quarter of 2025. Revenue from April to June this year totaled USD 590 million, up from USD 506 million in the same period of 2025 and below the USD 596 million reported in the first quarter of this year.
Sadia Halal is MBRF’s company operating in the region in partnership with Saudi Arabia’s Public Investment Fund (PIF). It was officially established earlier this year and has three production plants, as well as distribution centers in the Gulf. The Middle East accounted for 7% of MBRF’s exports, the same share as in the second quarter of last year, making it the company’s third-largest consumer market, behind the United States and Brazil.
The company also reported that the conflict in the Middle East drove up meat prices in the region. This helped offset the impact of higher logistics costs.
MBRF’s consolidated results showed net revenue of BRL 40.7 billion (USD 7.8 billion), up 4.9% from the second quarter of 2025, and net income of BRL 69 million (USD 13 million), down 19.5%. MBRF CEO Miguel Gularte said in the statement that the company demonstrated its ability to generate results despite a challenging macroeconomic environment, currency appreciation and high interest rates.
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Translated by Guilherme Miranda
