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v3.26.1

Risk management and financial instruments | 6 Months Ended
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Jun. 30, 2026
Disclosure of risk management strategy related to hedge accounting [abstract] |
Risk management and financial instruments | Risk management and financial instruments Financial instruments are recognized in the consolidated financial statements as follows:
| Notes |  | Fair value hierarchy |  | June 30, 2026 |  | December 31, 2025
Assets |  |  |  |  |  |  |
Fair value through profit or loss (1) |  |  |  |  |  |  |
Financial / Overnight investments | 3 |  | Level 2 |  | 2,146,796 |  |  | 1,887,853 |
National treasury bills | 3 |  | Level 1 |  | 155,486 |  |  | 123,204 |
Derivative assets |  |  | Level 2 |  | 115,199 |  |  | 155,441 |
Fair Value through Other Comprehensive Income |  |  |  |  |  |  |
Investment in financial assets at fair value | 3 |  | Level 1 |  | — |  |  | 49,908 |
Derivative assets |  |  | Level 2 |  | 2,971 |  |  | 161 |
Amortized cost (2) |  |  |  |  |  |  |
Cash at banks | 3 |  |  |  | 1,259,842 |  |  | 2,557,740 |
CME Margin investments | 3 |  |  |  | 75,297 |  |  | 105,993 |
Trade accounts receivable | 4 |  |  |  | 3,555,443 |  |  | 4,231,924 |
Dividends Receivable |  |  |  |  | — |  |  | 1,465 |
Related party receivables | 8 |  |  |  | 32,709 |  |  | 41,231 |
Financial investments | 3 |  |  |  | 50,949 |  |  | 45,780 |
Total |  |  |  |  | 7,394,692 |  |  | 9,200,700 |
Liabilities |  |  |  |  |  |  |
Amortized cost (2) |  |  |  |  |  |  |
Loans and financing | 16 |  |  |  | (22,650,689) |  |  | (21,090,568) |
Trade accounts payable and supply chain finance | 15 |  |  |  | (7,047,210) |  |  | (7,332,559) |
Debt with related party | 8 |  |  |  | (142,536) |  |  | (190,998) |
Lease | 12.2 |  |  |  | (1,794,217) |  |  | (1,767,285) |
Dividends Payable |  |  |  |  | (117) |  |  | — |
Fair value through profit or loss |  |  |  |  |  |  |
Derivative liabilities |  |  | Level 2 |  | (217,212) |  |  | (267,214) |
Fair value through Other Comprehensive Income |  |  |  |  |  |  |
Derivative liabilities |  |  | Level 2 |  | (1,497) |  |  | (3,567) |
Total |  |  |  |  | (31,853,478) |  |  | (30,652,191) |
(1)CDBs are updated at the effective rate but have a short-term and negotiated with financial institutions, and their recognition is similar to fair value; national treasury bill is recognized according to market value. (2)Loans and receivables are classified as amortized cost; the accounts receivable are short-term and net from expected losses. Fair value of assets and liabilities: Financial assets and financial liabilities are offset and presented on a net basis when there is a legally enforceable right to offset the recognized amounts and an intention to settle them on a net basis or to realize the asset and settle the liability simultaneously. Fair value measurements are classified into hierarchy levels based on the significance of the inputs used in determining fair value, as defined below: Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 – valuation techniques using observable inputs for the asset or liability, either directly or indirectly, other than quoted prices included within Level 1; Level 3 – valuation techniques using unobservable inputs for the asset or liability. Fair value of assets and liabilities carried at amortized cost: The fair value of the Notes (Bonds) under Rule 144-A and Regulation S, are estimated using the closing sale price of these securities informed by a financial newswire on June 30, 2026 and December 31, 2025, considering there is an active market for these financial instruments. The carrying amount of the remaining fixed-rate loans approximates fair value since the interest rate market, the Group's credit quality, and other market factors have not significantly changed since entering into the loans. The carrying amount of variable-rate loans and financings approximates fair value given the interest rates adjusted for changes in market conditions and the quality of the Group’s credit rating has not substantially changed. For all other financial assets and liabilities, carrying amount approximates fair value due to the short duration of the instruments. For the six-month period ended June 30, 2026, the principal amount is US$19,102,688 (US$18,052,688 on December 31, 2025) and the fair value is US$18,799,743 (US$18,157,182 on December 31, 2025). Risk management: In its operational routine, the Group is exposed to various market, credit, and liquidity risks. These risks are disclosed in the financial statements as of December 31, 2025. There were no changes in the nature of these risks during the current quarterly reporting period. The following section presents the risks and operations to which the Group is exposed in the current period. Additionally, a sensitivity analysis is provided for each type of risk, showing the potential impact on Financial Results under hypothetical changes: CDI and other rates at 25% and 50%, and currency and commodity exposure at 15% and 30% in the relevant risk variables. For the probable scenario, the Company deems it appropriate to use the Value at Risk (VaR) methodology with a 99% confidence interval (CI) and a one-day horizon. a.Interest rate risk The Group understands that the quantitative data referring to the Group's interest rate exposure risk on June 30, 2026 and December 31, 2025, are in accordance with the Financial and Commodity Risk Management Policy and are representative of the exposure incurred during the period. For informational purposes and in accordance with our Financial and Commodities Risk Management Policy, the notional amounts of assets and liabilities exposed to floating interest rates are presented below:
| June 30, 2026 |  | December 31, 2025
Net exposure to the CDI/FED rate: |  |  |
CRA - Agribusiness Credit Receivable Certificates | (139,265) |  |  | (54,231) |
Credit note - export | (59) |  |  | (410) |
Rural - Credit note - Prefixed | (198,565) |  |  | (114,282) |
Related party transactions | (104,842) |  |  | (105,892) |
CDB-DI (Bank certificates of deposit) | 1,211,063 |  |  | 727,695 |
CME Margin investments | 75,297 |  |  | 105,760 |
Treasury bills | 94,910 |  |  | 75,286 |
Subtotal | 938,539 |  |  | 633,926 |
Derivatives (CDI) | 55,688 |  |  | — |
Derivatives (Swap) | (696,006) |  |  | (922,938) |
Total | 298,221 |  |  | (289,012) |
Net exposure to the IPCA rate: |  |  |
Treasury bills | 60,576 |  |  | 47,920 |
CRA - Agribusiness Credit Receivable Certificates | (2,163,111) |  |  | (2,165,193) |
Related party transactions | (4,985) |  |  | (43,875) |
Subtotal | (2,107,520) |  |  | (2,161,148) |
Derivatives (Swap) | 594,253 |  |  | 805,029 |
Total | (1,513,267) |  |  | (1,356,119) |
Liabilities exposure to the SOFR rate: |  |  |
Export credit note | (156,938) |  |  | (254,903) |
Working Capital - USD | (23,945) |  |  | (11,691) |
Total | (180,883) |  |  | (266,594) |
Liabilities exposure to the Euribor rate: |  |  |
Working Capital - EUR | (45,312) |  |  | (55,348) |
Revolving credit facility | (31,348) |  |  | (33,701) |
Total | (76,661) |  |  | (89,049) |
Sensitivity analysis and derivative financial instruments breakdown:
|  |  |  |  |  | Scenario (i) VaR 99% I.C. 1 day |  | Scenario (ii) Interest rate variation - 25% |  | Scenario (iii) Interest rate variation - 50%
Contracts exposure |  | Risk |  | Current scenario |  | Rate |  | Effect on income |  | Rate |  | Effect on income |  | Rate |  | Effect on income
CDI |  | Decrease |  | 14.15 | % |  | 14.08 | % |  | (215) |  |  | 10.61 | % |  | (10,550) |  |  | 7.08 | % |  | (21,099) |
IPCA |  | Increase |  | 4.72 | % |  | 4.73 | % |  | (115) |  |  | 5.90 | % |  | (17,857) |  |  | 7.08 | % |  | (35,713) |
SOFR |  | Increase |  | 3.68 | % |  | 3.68 | % |  | (7) |  |  | 4.60 | % |  | (1,664) |  |  | 5.52 | % |  | (3,328) |
Euribor |  | Increase |  | 2.73 | % |  | 2.73 | % |  | (2) |  |  | 3.41 | % |  | (523) |  |  | 4.09 | % |  | (1,046) |
|  |  |  |  |  |  |  | (339) |  |  |  |  | (30,594) |  |  |  |  | (61,186) |
Details of derivative instruments (Swap):
|  |  |  |  |  | June 30, 2026 |  | December 31, 2026
Instrument |  | Risk factor |  | Maturity |  | Notional |  | Fair value (Asset) - R$ |  | Fair value (Liability) - R$ |  | Fair value |  | Notional |  | Fair value (Asset) - R$ |  | Fair value (Liability) - R$ |  | Fair value
Swap |  | IPCA |  | 2027 - 2037 |  | 474,168 |  |  | 594,253 |  |  | (696,006) |  |  | (101,753) |  |  | 672,843 |  |  | 805,029 |  |  | (922,938) |  |  | (117,909) |
b1.Exchange rate risk: Below are presented the risks related to the most significant exchange rates fluctuation given the relevance of these currencies in the Group’s operations and the stress analysis scenarios and VaR to measure the total exposure as well as the cash flow risk with B3 and the Chicago Mercantile Exchange. The Group discloses these exposures considering the fluctuations of a exchange rate in particular towards the functional currency of each subsidiary.
| USD |  | EUR |  | GBP
| June 30, 2026 |  | December 31, 2025 |  | June 30, 2026 |  | December 31, 2025 |  | June 30, 2026 |  | December 31, 2025
Operating (including cash and cash equivalents, trade accounts receivable and sales orders) | 3,770,328 |  |  | 4,244,622 |  |  | 334,195 |  |  | 483,608 |  |  | 72,150 |  |  | 123,168 |
Financial (including loans and financing) | (570,734) |  |  | (369,538) |  |  | (1,576) |  |  | (1,525) |  |  | — |  |  | (191) |
TOTAL EXPOSURE | 3,199,594 |  |  | 3,875,084 |  |  | 332,619 |  |  | 482,083 |  |  | 72,150 |  |  | 122,977 |
Derivatives | 660,769 |  |  | 6,334 |  |  | 62,402 |  |  | 1,276 |  |  | (65,859) |  |  | (67,532) |
NET EXPOSURE | 3,860,363 |  |  | 3,881,418 |  |  | 395,021 |  |  | 483,359 |  |  | 6,291 |  |  | 55,445 |
b1.Sensitivity analysis and derivative financial instruments breakdown: b1.1 USD - American dollars (amounts in thousands of US$):
|  |  |  | Current exchange rate |  | Scenario (i) VaR 99% C.I. 1 day |  | Scenario (ii) Interest rate variation - 15% |  | Scenario (iii) Interest rate variation - 30%
Exposure of US$ |  | Risk |  |  | Exchange rate |  | Effect on income |  | Exchange rate |  | Effect on income |  | Exchange rate |  | Effect on income
Operating |  | Depreciation |  | 1.00 |  |  | 0.98 |  |  | (65,230) |  |  | 0.85 |  |  | (565,549) |  |  | 0.70 |  |  | (1,131,098) |
Financial |  | Appreciation |  | 1.00 |  |  | 1.02 |  |  | (9,876) |  |  | 1.15 |  |  | (85,610) |  |  | 1.30 |  |  | (171,220) |
Derivatives |  | Depreciation |  | 1.00 |  |  | 0.98 |  |  | (11,432) |  |  | 0.85 |  |  | (99,115) |  |  | 0.70 |  |  | (198,231) |
|  |  |  |  |  |  |  | (86,538) |  |  |  |  | (750,274) |  |  |  |  | (1,500,549) |
b1.2 EUR - EURO (amounts in thousands of US$):
|  |  | Scenario (i) VaR 99% I.C. 1 day |  | Scenario (ii) Interest rate variation - 15% |  | Scenario (iii) Interest rate variation - 30%
Exposure of US$ | Risk | Current exchange rate | Exchange rate |  | Effect on income |  | Exchange rate |  | Effect on income |  | Exchange rate |  | Effect on income
Operating | Depreciation | 1.14 |  | 1.12 |  |  | (5,137) |  |  | 0.97 |  |  | (50,219) |  |  | 0.80 |  |  | (100,258) |
Financial | Appreciation | 1.14 |  | 1.16 |  |  | (24) |  |  | 1.31 |  |  | (236) |  |  | 1.48 |  |  | (473) |
Derivatives | Depreciation | 1.14 |  | 1.12 |  |  | (959) |  |  | 0.97 |  |  | (9,360) |  |  | 0.80 |  |  | (18,720) |
|  |  |  |  | 6,120 |  |  |  |  | 59,815 |  |  |  |  | 119,451 |
b1.3 GBP - British Pound (amounts in thousands of US$):
|  |  | Scenario (i) VaR 99% I.C. 1 day |  | Scenario (ii) Interest rate variation - 15% |  | Scenario (iii) Interest rate variation - 30%
Exposure of US$ | Risk | Current exchange rate | Exchange rate |  | Effect on income |  | Exchange rate |  | Effect on income |  | Exchange rate |  | Effect on income
Operating | Depreciation | 1.33 |  | 1.31 |  |  | (1,121) |  |  | 1.13 |  |  | (10,822) |  |  | 0.93 |  |  | (21,645) |
Derivatives | Appreciation | 1.33 |  | 1.35 |  |  | (1,024) |  |  | 1.52 |  |  | (9,879) |  |  | 1.72 |  |  | (19,758) |
|  |  |  |  | (2,145) |  |  |  |  | (20,701) |  |  |  |  | (41,403) |
b 1.4 Derivative financial instruments outstanding:
|  |  |  |  |  | June 30, 2026 |  | December 31, 2025
Instrument |  | Risk factor |  | Nature |  | Notional (US$) |  | Fair value |  | Notional (US$) |  | Fair value
Future Contract |  | American dollar |  | Long |  | 203,054 |  |  | 298 |  |  | 241,445 |  |  | (1,814) |
Deliverable Forwards |  | American dollar |  | Short |  | (239,970) |  |  | (13,791) |  |  | (278,582) |  |  | 13,069 |
Non-Deliverable Forwards |  | American dollar |  | Long |  | 697,685 |  |  | 11,005 |  |  | 43,471 |  |  | (4,467) |
Future Contract |  | Euro |  | Short |  | (69,251) |  |  | 40 |  |  | (79,419) |  |  | 62 |
Deliverable Forwards |  | Euro |  | Long |  | 140,777 |  |  | (331) |  |  | 103,646 |  |  | (2,039) |
Non-Deliverable Forwards |  | Euro |  | Short |  | (9,124) |  |  | 235 |  |  | (22,591) |  |  | (55) |
Future Contract |  | British pound |  | Short |  | (40,043) |  |  | 9 |  |  | (40,676) |  |  | 72 |
Deliverable Forwards |  | British pound |  | Short |  | (25,816) |  |  | (257) |  |  | (26,856) |  |  | 129 |
c.Commodity price risk The Group operates globally (across the entire livestock protein chain and related business) and during the regular course of its operations is exposed to price fluctuations in feeder cattle, live cattle, lean hogs, corn, soybeans, and energy, especially in the North American, Australian and Brazilian markets. Commodity markets are characterized by volatility arising from external factors including climate, supply levels, transportation costs, agricultural policies and storage costs, among others. The Risk Management Department is responsible for mapping the exposures to commodity prices of the Company and proposing strategies to the Risk Management Committee, in order to mitigate such exposures. c1.Position balance in commodities and corn contracts:
Exposure in Commodities (Live Stock) - Expressed in contract quantity |  | June 30, 2026 |  | December 31, 2025
OPERATING |  |  |  |
Firm contracts |  | 24,425 |  |  | 31,200 |
Subtotal |  | 24,425 |  |  | 31,200 |
DERIVATIVES |  |  |  |
Future contracts |  | (3,650) |  |  | 7,348 |
Deliverable Forwards |  | (24,674) |  |  | (41,942) |
Subtotal |  | (28,324) |  |  | (34,594) |
NET EXPOSURE |  | (3,899) |  |  | (3,394) |
Sensitivity analysis as of June 30, 2026:
|  |  |  | Scenario (i) VaR 99% I.C. 1 day |  | Scenario (ii) Interest rate variation - 15% |  | Scenario (iii) Interest rate variation - 30%
Exposure |  | Risk |  | Current price |  | Price |  | Effect on income |  | Price |  | Effect on income |  | Price |  | Effect on income
Operating |  | Decrease |  | 38 |  |  | 38 |  |  | (18,645) |  |  | 32 |  |  | (279,674) |  |  | 27 |  |  | (559,347) |
Derivatives |  | Increase |  | 35 |  |  | 36 |  |  | (18,293) |  |  | 41 |  |  | (274,396) |  |  | 46 |  |  | (548,792) |
|  |  |  |  |  |  |  | (36,938) |  |  |  |  | (554,069) |  |  |  |  | (1,108,139) |
Derivatives financial instruments breakdown:
|  |  |  |  |  | June 30, 2026 |  | December 31, 2025
Instrument |  | Risk factor |  | Nature |  | Quantity |  | Fair value |  | Quantity |  | Fair value
Future Contracts |  | Commodities (Live stocks) |  | Short |  | (3,650) |  |  | 431 |  |  | 7,348 |  |  | (346) |
Deliverable Forwards |  | Commodities (Live stocks) |  | Short |  | (24,674) |  |  | (70,640) |  |  | (41,942) |  |  | (93,782) |
Exposure in Commodities (Grains and others) - Expressed in contract quantity |  | June 30, 2026 |  | December 31, 2025
OPERATING |  |  |  |
Purchase orders |  | 6,292 |  |  | 5,403 |
Subtotal |  | 6,292 |  |  | 5,403 |
DERIVATIVES |  |  |  |
Future B3 |  | 50,203 |  |  | 17,515 |
Future CME |  | 300 |  |  | 155 |
Deliverable Forwards |  | 19,483 |  |  | 32,783 |
Non Deliverable Forwards |  | 438,827 |  |  | — |
Subtotal |  | 508,813 |  |  | 50,453 |
NET EXPOSURE |  | 515,104 |  |  | 55,856 |
Sensitivity analysis as of June 30, 2026:
|  |  |  | Scenario (i) VaR 99% I.C. 1 day |  | Scenario (ii) Interest rate variation - 15% |  | Scenario (iii) Interest rate variation - 30%
Exposure |  | Risk |  | Current price |  | Price |  | Effect on income |  | Price |  | Effect on income |  | Price |  | Effect on income
Operating |  | Increase |  | 24 |  |  | 24 |  |  | (3,913) |  |  | 28 |  |  | (58,694) |  |  | 31 |  |  | (117,389) |
Derivatives |  | Decrease |  | 6 |  |  | 6 |  |  | (8,355) |  |  | 5 |  |  | (125,322) |  |  | 4 |  |  | (250,644) |
|  |  |  |  |  |  |  | (12,268) |  |  |  |  | (184,016) |  |  |  |  | (368,033) |
Derivatives financial instruments breakdown:
|  |  |  |  |  | June 30, 2026 |  | December 31, 2025
Instrument |  | Risk factor |  | Nature |  | Quantity |  | Fair value |  | Quantity |  | Fair value
Future Contracts |  | Commodities (grains and others) |  | Long |  | 50,203 |  |  | 1,752 |  |  | 17,515 |  |  | (170) |
Deliverable Forwards |  | Commodities (grains and others) |  | Long |  | 19,483 |  |  | 15,638 |  |  | 32,783 |  |  | 46,621 |
Future CME |  | Commodities (grains and others) |  | Short |  | 300 |  |  | 456 |  |  | 155 |  |  | (45) |
Non Deliverable Forwards |  | Commodities (grains and others) |  | Long |  | 438,827 |  |  | (1,857) |  |  | — |  |  | — |
c2.Hedge accounting: c2.1. Effects of hedge instruments on the financial information: The indirect subsidiary Seara Alimentos Ltda. applies hedge accounting for gain purchase, aiming at bringing stability to the subsidiary's results. The designation of these instruments is based on the guidelines outlined in the Financial and Commodity Risk Management Policy defined by the Risk Management Committee and approved by the Board of Directors. Below is shown the effects on income for the period, on other comprehensive income and on the balance sheet of derivative financial instruments contracted for hedging exchange rates, commodity prices and interest rates (cash flow and fair value hedges):
|  |  | June 30, 2026 |  | December 31, 2025
Hedge result |  |  |  | Asset |  |  | OCI |  |  |  |  | Liability | OCI
Grain hedge |  |  |  | 491 |  |  |  | 1,542 |  |  |  |  |  | (15) |  | (854) |
d.Liquidity risk The table below shows the contractual obligation amounts from financial liabilities of the Company according to their maturities:
| June 30, 2026 |  | December 31, 2025
| Less than 1 year |  | Between 1 and 3 years |  | Between 4 and 5 years |  | More than 5 years |  | Total |  | Less than 1 year |  | Between 1 and 3 years |  | Between 4 and 5 years |  | More than 5 years |  | Total
Trade accounts payable and supply chain finance | 7,047,210 |  |  | — |  |  | — |  |  | — |  |  | 7,047,210 |  |  | 7,332,559 |  |  | — |  |  | — |  |  | — |  |  | 7,332,559 |
Loans and financing | 1,334,897 |  |  | 841,785 |  |  | 1,545,992 |  |  | 18,928,015 |  |  | 22,650,689 |  |  | 833,085 |  |  | 249,115 |  |  | 794,458 |  |  | 19,213,910 |  |  | 21,090,568 |
Estimated interest on loans and financing (1) | 309,235 |  |  | 659,005 |  |  | 320,065 |  |  | 3,786,567 |  |  | 5,074,872 |  |  | 1,265,226 |  |  | 2,425,415 |  |  | 2,377,113 |  |  | 15,237,492 |  |  | 21,305,246 |
Derivatives liabilities | 116,808 |  |  | 101,901 |  |  | — |  |  | — |  |  | 218,709 |  |  | 156,405 |  |  | 114,376 |  |  | — |  |  | — |  |  | 270,781 |
Payments of leases | 368,699 |  |  | 619,220 |  |  | 364,469 |  |  | 780,964 |  |  | 2,133,352 |  |  | 354,887 |  |  | 520,701 |  |  | 351,036 |  |  | 861,409 |  |  | 2,088,033 |
Commodities and energy forward purchase contracts | 289,905 |  |  | 24,126,196 |  |  | 6,813,584 |  |  | 3,811,072 |  |  | 35,040,757 |  |  | 140,956 |  |  | 13,912,887 |  |  | 11,252,506 |  |  | 2,614,618 |  |  | 27,920,967 |
(1)Includes interest on all loans and financing outstanding. Payments are estimated for variable rate debt based on effective interest rates on June 30, 2026 and December 31, 2025. Payments in foreign currencies are estimated using the June 30, 2026 and December 31, 2025 exchange rates. The Group has future commitment for purchase of grains and cattle whose balances as of June 30, 2026 in the amount of US$34.3 billion (US$27.9 billion on December 31, 2025). The Group has securities pledged as collateral for derivative transactions with the commodities and futures whose balance as of June 30, 2026 is in the amount of US$168,301 (US$159,562 on December 31, 2025). This guarantee is larger than its collateral. The interest payments on variable interest rate loans and bond issues in the table above reflect market forward interest rates at the reporting date and these amounts may change as market interest rates change. The future cash flows on derivative instruments may be different from the amount in the above table as interest rates and exchange rates or the relevant conditions underlying the contingency change. Except for these financial liabilities, it is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.

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