FriGol records revenue of R$1 billion in the second quarter of 2025
Net revenue reached R$984.1 million, also a 25% increase. EBITDA (earnings before interest, taxes, depreciation, and amortization) was R$154.1 million, an increase of 234.6%, with a margin of 15.7%. Net income was R$86.6 million, a significant increase compared to the R$1.7 million recorded in the second quarter of 2024.
"The quarter's positive results reflect improved prices in the foreign market, particularly in China, and our strategy of diversifying our destinations, opting for the most profitable ones", said Luciano Pascon, CEO of FriGol.
In this scenario, sales to the foreign market represented 56.3% of FriGol's revenue, an increase of 4.7 percentage points year-on-year.
China remains the main export destination, but its share increased from 81% in the second quarter of 2024 to 77%, a result of the diversification strategy. Israel, the second largest market, increased from 7% to 6%, Hong Kong from 3% to 2%, while other markets increased their share from 9% to 15%.
Among the highlights of the increase in export volumes are the European Union, Canada, Chile and Saudi Arabia, as well as Indonesia, the Philippines and Singapore, Southeast Asian countries in which the company has a strong focus.
"The results could have been even better if not for the initial effects of the livestock cycle, with a reduced supply of fed cattle and, consequently, a rise in the price per arroba of approximately 40% compared to the second quarter of 2024," notes Carlos Corrêa, CFO & Sustainability Director. In this scenario, the company slaughtered 155,000 head of cattle in the quarter, an 8% decrease year-over-year.
The domestic market, which accounted for 43.7% of revenue, faced pressure on margins, impacted by the rising arroba price and declining 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 lines saw a 5.8% increase compared to the second quarter of last year.
Financial strength
In the comparison between June 30, 2025, and December 31, 2024, leverage increased from 1.2x to 1.5x net debt/EBITDA. Despite the change, the ratio remained among the best in the market, reflecting the focus on financial discipline, even during a period marked by increased working capital needs in operations. During this period, Accounts Receivable from Customers grew R$128.8 million (a 144.6% increase compared to December 31, 2024), while Inventory increased R$20 million (16.65%), in line with the expansion of operations.
Additionally, we recorded a reduction in the Suppliers account compared to December 31, 2024. At the end of the year, an increase in the volume of cattle purchases on credit is typical, while in the first half of the year the company had a lower volume, which resulted in a reduction of R$52.9 million.
In total, these variations represented a financing challenge of R$201.7 million, which resulted in a R$52.3 million increase in gross debt and a R$152.9 million reduction in cash. FriGol ended the second quarter with R$206.8 million in cash.
It is also important to highlight that, in the period, the company appropriated ICMS credits (according to ICMS Agreement 109/2024, Complementary Law 160/2017 and Confaz Agreement 190/2017) in the amount of R$ 19.9 million related to 2025 and R$ 92.5 million of extemporaneous credit, which positively impacted EBITDA and net income.
On the other hand, maintaining a conservative stance, the company made significant provisions during the quarter, such as the launch of the PRR/Funrural in accordance with CPC 23 and 26 and the provision for amounts related to the levy of PIS and COFINS on the Presumed ICMS Credit, due to changes in forecasts brought about by recent case law, reducing the quarter's results; however, in compliance with the best accounting and tax standards. Therefore, EBITDA and net income for the quarter were impacted by a R$28.7 million reduction from the PIS and COFINS provision, and there was no impact on equity regarding the PRR/Funrural, as required by the CPC.
Half-Yearly Results
In the first half of 2020, FriGol posted gross revenue of R$2.1 billion, a 21% increase compared to the R$1.7 billion recorded in the first half of 2024. Net revenue was R$2.0 billion, a 22% increase compared to R$1.6 billion year-over-year. EBITDA for the period was R$164 million, a 140% increase year-over-year, with a margin of 8.4%. Net income was R$87.6 million, compared to a loss of R$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: + Cultura + Eficiência + Resultados, with the objective of engaging all teams in initiatives that promote organizational culture, drive operational efficiency and directly contribute to generating better financial results.
At the same time, all leadership—including CEO, directors, managers, coordinators, and supervisors—participates throughout the year in the Leadership DNA training program. Developed with the support of a specialized consultancy, the training addresses management topics and behavioral competencies aligned with FriGol's values, essential for the company's strengthening and growth.
ESG
At the end of the first half of the year, FriGol released its 2024 Annual and Sustainability Report, which summarizes financial and operational results and publicizes the company's progress and goals within its ESG (environmental, social, and governance) agenda. The report, published for the fourth consecutive year, follows the Global Reporting Initiative (GRI) guidelines, which are aligned with the UN Sustainable Development Goals (SDGs).
Furthermore, the period was also marked by the release, in May, of the Federal Public Prosecutor's Office of Pará's audit of the Legal Meat TAC. For the third consecutive year, FriGol achieved 100% compliance, proving that all direct suppliers are in social and environmental compliance.
Another important milestone in the semester was the publication, in March, of the 2024 results of the monitoring of indirect level 1 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 from Febraban (Brazilian Federation of Banks) to the Brazilian beef sector. Monitoring indirect suppliers is a challenge for the sector and essential to mitigating deforestation across all links in the production chain. The company considers it a significant achievement to have monitored 100% of indirect level 1 suppliers for two years. Considering the two-year average, compliance reached 72.5%.
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