Net profit was BRL 86.6 million, compared to BRL 1.7 million year-over-year

August 12, 2025 – FriGol, one of the main and most traditional beef processors in Brazil, recorded gross revenue of BRL 1 billion in the second quarter of 2025, an increase of 25% compared to the same period of the previous year. Net revenue reached BRL 984.1 million, also 25% higher. EBITDA (earnings before interest, taxes, depreciation, and amortization) was BRL 154.1 million, a 234.6% increase, with a margin of 15.7%. Net profit was BRL 86.6 million, a significant increase compared to the BRL 1.7 million recorded in the second quarter of 2024.

“The positive results for the quarter reflect the improvement in prices in the foreign market, especially in China, and our strategy of diversifying destinations, choosing the most profitable ones,” highlights Luciano Pascon, CEO of FriGol.

Given this scenario, sales to the foreign market represented 56.3% of FriGol’s revenue, a 4.7 percentage point increase compared to the previous year.

China remains the main export destination, however, its share dropped from 81% in the second quarter of 2024 to 77%, as a result of the diversification strategy. Israel, the second-largest market, dropped from 7% to 6%, Hong Kong from 3% to 2%, while other markets increased their share from 9% to 15%.

Among the highlights in the increase of export volumes are the European Union, Canada, Chile, and Saudi Arabia, as well as Indonesia, the Philippines, and Singapore — Southeast Asian countries where the company has a strong focus.

“Results could have been even better if not for the early effects of the cattle cycle, with lower supply of finished cattle and, consequently, an increase of approximately 40% in the price per arroba compared to the second quarter of 2024,” notes Carlos Corrêa, Chief Financial & Sustainability Officer.

In this context, the company slaughtered 155,000 head of cattle in the quarter, an 8% drop year-over-year.

The domestic market, which accounted for 43.7% of revenue, faced pressured margins, impacted by the increase in cattle prices and weak consumption. To address this, FriGol’s strategy has focused on sales of high value-added products, such as the Chef, Angus, BBQ Secrets, and Açougue Completo lines. These product lines saw an increase of 5.8% compared to the second quarter of last year.

Financial strength

Comparing June 30, 2025, to December 31, 2024, leverage increased from 1.2x to 1.5x net debt/EBITDA. Despite the variation, the ratio remains among the best in the market, reflecting a strong commitment to financial discipline, even during a period marked by increased working capital needs.

In this interval, Accounts Receivable grew by BRL 128.8 million (an increase of 144.6% compared to 12/31/2024), while Inventory increased by BRL 20 million (16.65%), following the expansion of operations.

Additionally, a reduction was recorded in Accounts Payable compared to 12/31/2024. At year-end, it is typical to see an increase in cattle purchases on credit; however, in the first half of the year, the company had a lower volume, resulting in a BRL 52.9 million reduction.

In total, these variations represented a financing challenge of BRL 201.7 million, which was reflected in an increase of BRL 52.3 million in gross debt and a BRL 152.9 million reduction in cash. FriGol ended the second quarter with cash of BRL 206.8 million.

It is also important to highlight that, during the period, the company recognized ICMS tax credits (according to ICMS Agreement 109/2024, Complementary Law 160/2017, and Confaz Agreement 190/2017) in the amount of BRL 19.9 million for 2025 and BRL 92.5 million in extemporaneous credits, which positively impacted EBITDA and net profit.

On the other hand, maintaining a conservative posture, the company made important provisions during the quarter, such as the PRR/Funrural entry in accordance with CPC 23 and 26, and the provision for PIS and COFINS on presumed ICMS credits, due to changes in forecasts brought by recent jurisprudence, reducing the result for the quarter — however, in line with best accounting and tax practices.

Thus, EBITDA and net profit for the quarter were impacted by a BRL 28.7 million reduction from the PIS and COFINS provision. Regarding the PRR/Funrural, there was no impact on equity, as determined by CPC.

First-Half Results

In the first half, FriGol accumulated gross revenue of BRL 2.1 billion, an increase of 21% compared to the BRL 1.7 billion recorded in the first half of 2024. Net revenue was BRL 2.0 billion, up 22% from BRL 1.6 billion year-over-year. EBITDA for the period was BRL 164 million, 140% higher than in the same comparison, with a margin of 8.4%. Net profit reached BRL 87.6 million, compared to a loss of BRL 3.3 million in the first half of last year.

Management focused on culture, efficiency, and results

In July, FriGol launched the internal program FriGol Mais: + Culture + Efficiency + Results, aiming to engage all teams in initiatives that promote organizational culture, boost operational efficiency, and directly contribute to generating better financial results.

At the same time, the entire leadership — including the CEO, directors, managers, coordinators, and supervisors — is participating throughout the year in the DNA of Leadership training program. Developed with support from a specialized consultancy, the training addresses management topics and behavioral skills aligned with FriGol’s values, essential for strengthening and growing the company.

ESG

At the end of the semester, FriGol released its 2024 Annual and Sustainability Report, which brings together financial and operational results and publicly discloses the company’s progress and goals regarding the ESG agenda (Environmental, Social, and Governance). The report, published for the fourth consecutive year, follows the Global Reporting Initiative (GRI) guidelines, aligned with the United Nations Sustainable Development Goals (SDGs).

Additionally, the period was also marked by the disclosure in May by the Federal Public Prosecutor’s Office of Pará of the audit results for the “Legal Meat” Conduct Adjustment Agreement (TAC). For the third consecutive time, FriGol achieved 100% compliance, proving that all direct suppliers meet socio-environmental criteria.

Another important milestone in the semester was the publication in March of the 2024 results of the monitoring of Tier 1 indirect suppliers, that is, those who supply cattle to the company’s direct suppliers. This is the second consecutive year that this monitoring has been made public on FriGol’s website, responding to a request by Febraban (Brazilian Federation of Banks) to the Brazilian beef sector. The monitoring of indirect suppliers is a challenge for the sector and essential for mitigating deforestation throughout all links in the production chain. The company sees it as a significant achievement to have monitored 100% of its Tier 1 indirect suppliers for two years. Considering the average of the two years, compliance reached 72.5%.

About FriGol

FriGol is one of Brazil’s leading and most traditional beef processing companies. Founded in 1992 by the Gonzaga Oliveira family, who has been operating in the meat industry since 1970, FriGol is strategically located in the states of São Paulo and Pará. The company currently has a strong presence in both domestic and international markets, with exports to over 60 countries across South and North America, Europe, the Middle East, Asia, and Africa.

Press contact:

Elaine Daffara
elaine.daffara@frigol.com.br
+55 (14) 9.8181-0183