May 12, 2025 – FriGol, one of Brazil’s leading and most traditional beef processors, reported a gross revenue of R$ 1 billion in the first quarter of 2025, marking a 17% increase compared to the same period in 2024. Net revenue reached R$ 972 million, an 18% increase. The company posted a net profit of R$ 1 million, an improvement compared to the first quarter of 2024, when it had a loss of R$ 5 million.

“Traditionally, the first quarter is the weakest in our industry. In 2023 and 2024, we posted losses during this period. Now, we’ve recorded growth in both revenue and profit despite the challenges of low cattle supply,” said Luciano Pascon, CEO of FriGol.

The cattle cycle, with a low supply of fat cattle and consequently higher prices for live cattle, had impacts on the number of animals slaughtered and EBITDA. The company slaughtered 159,000 cattle in the quarter, a 7% decline compared to 2024. EBITDA was R$ 9.7 million, a 56% decrease year-over-year, with a margin of 1%.

“The rise in cattle prices has pressured margins both in the domestic and export markets, even though there was a 9% increase in the export price per ton compared to the previous year. In the second quarter, we are seeing a more positive scenario, with a downward trend in cattle prices, an increase in the export price per ton, and more consistent margins in the domestic market,” highlighted Carlos Corrêa, Chief Financial Officer & Sustainability at FriGol.

Exports and Market Diversification

In the first quarter, exports accounted for 51% of gross revenue, while the domestic market represented 49%. As a result of the market diversification strategy, Canada, for the first time, became one of the top four destinations for FriGol’s exports, representing 7% of the sales revenue from exports. China, the company’s primary market, saw its share drop from 79% in the first quarter of 2024 to 68% in the first quarter of this year. Israel, the second-largest market, reduced its share from 12% to 9%, Hong Kong increased its share from 1% to 3%, while other markets grew their participation from 6% to 13%.

In the domestic market, the focus was on high-value-added products, such as the Chef, Angus, BBQ Secrets, and Açougue Completo product lines, which saw a 14% increase in sales volume compared to the previous year.

Financial Solidity

Reflecting its robust capital structure, FriGol ended the quarter with cash of R$ 230 million. Leverage stood at 2.1x Net Debt/EBITDA, which is considered extremely healthy for the sector.

With a focus on financial discipline, the first quarter was marked by the implementation of a series of initiatives under the Efficiency Program, aimed at improving productivity and optimizing costs and expenses. “This strategy led to temporary increases in costs and expenses on the first-quarter balance sheet, but will bring absolutely positive results throughout the year,” added Carlos Corrêa.

About FriGol

FriGol is one of Brazil’s leading and most traditional beef slaughterhouses. Founded in 1992 by the Gonzaga Oliveira family, which has been in the meat business since 1970, FriGol is strategically located in the states of São Paulo and Pará. Today, the company has a significant share of the national and international market, with a presence in more than 60 countries across North and South America, Europe, the Middle East, Asia and Africa.