EX-99.1 2 ex99-1.htm EX-99.1

 

 
 

Interim Financial Information, Individual and Consolidated | June 30, 2025

   

Index

Index 2
Statements of Financial Position 4
Statements of Income (Loss) 5
Statements of Comprehensive Income (Loss) 6
Statements of Changes in Equity 7
Statements of Cash Flows 8
Statements of Value Added 9
Management Report 10
1.   Company’s Operations 43
2.   Basis of preparation and presentation of interim financial information 48
3.   Summary of material accounting policies 48
4.   Cash and cash equivalents 50
5.   Marketable secutities 51
6.   Trade Accounts and Notes Receivable 52
7.   Inventories 54
8.   Biological Assets 54
9.   Recoverable Taxes 56
10.   Deferred Income Taxes 58
11.   Judicial Deposits 59
12.   Investments 60
13.   Property, plant and equipment 62
14.   Intangible assets 63
15.   Loans and borrowings 65
16.   Trade accounts payable 67
17.   Leases 68
18.   Share-based payment 71
19.   Employees benefits 72
20.   Provision for tax, civil and labor risks 72

 

 

2 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

21.   Equity 74
22.   Earnings (loss) per share 75
23.   Financial instruments and risk management 75
24.   Segment Information 90
25.   Net sales 92
26.   Expenses by nature 92
27.   Financial income (expenses) 93
28.   Related parties 94
29.   Commitments 98
30.   Transactions that do not involve cash 98
31.   Events after the reporting period 98
32.   Approval of the Financial Statements 99
INDEPENDENT AUDITORS’ REPORT ON INDIVIDUAL AND CONSOLIDATED FINANCIAL STATEMENTS 100
Opinion of the Audit and Integrity Committee 102
Opinion of Executive Board on the Consolidated Financial Statements and Independent Auditor’s Report 103

 

3 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

Statements of Financial Position

      Parent Company   Consolidated         Parent company   Consolidated
ASSETS Note   06.30.25   12.31.24   06.30.25   12.31.24   LIABILITIES Note   06.30.25   12.31.24   06.30.25   12.31.24
CURRENT ASSETS                     CURRENT LIABILITIES                  
Cash and cash equivalents 4    7,696,979   3,989,024   14,146,203     11,165,364   Loans and borrowings 15    895,678    952,565     2,042,518     1,230,273
Marketable securities 5    947,762   894,060     947,783    894,080   Trade accounts payable 16     13,295,810   12,227,480   14,646,818   13,558,284
Trade receivables 6    5,196,089   7,834,133     3,903,457    6,075,013   Lease 17.2    825,512    847,407     938,655     1,014,813
Notes receivable 6   22,596    32,302   22,596     32,302   Payroll, related charges and employee profit sharing      1,230,147    1,348,225     1,355,915     1,557,051
Inventories 7    4,632,716   4,289,502     6,976,993    6,728,002   Taxes payable      240,475    292,069     831,296     1,141,951
Biological assets 8    2,888,300   2,659,317     3,050,114    2,844,633   Derivative financial instruments 23    120,585    382,976     120,585     382,976
Recoverable taxes 9    1,859,625   1,393,036     2,569,198    2,214,186   Provision for tax, civil and labor risks 20    720,763    687,712     731,079     692,650
Derivative financial instruments 23    390,863    63,033     390,863     63,033   Employee benefits 19.2     63,959   63,959   90,300   95,276
Prepaid expenses      294,068   126,189     349,788    176,290   Customer advances      134,877    222,055     368,969     475,650
Advances     66,315    57,397     215,005    114,469   Advances from related parties 28    5,369,929    6,859,502    -    -
Restricted cash      -   1,674   15,051    276,025   Other current liabilities      158,539    229,723     538,429     671,653
Assets held for sale        1,584   3,445     1,584    3,445                      
Other current assets      292,877   264,907     275,349    243,643                      
Total current assets     24,289,774    21,608,019   32,863,984     30,830,485   Total current liabilities       23,056,274   24,113,673   21,664,564   20,820,577
                                         
NON-CURRENT ASSETS                     NON-CURRENT LIABILITIES                  
LONG-TERM RECEIVALBLES                     Loans and borrowings 15     17,176,521   16,827,677   18,703,002   19,510,275
Marketable securities 5   18,600    18,450     275,495    323,811   Trade accounts payable 16    549   11,766     990   11,766
Trade receivables 6   21,726    21,726   21,848     22,620   Lease 17.3    2,975,969    2,746,294     3,178,264     2,978,116
Notes receivable 6     8,429   8,035     8,429    8,035   Taxes payable        69,552   76,121   71,096   77,854
Recoverable taxes 9    4,291,539   4,529,397     4,312,329    4,545,446   Provision for tax, civil and labor risks 20    1,485,503    1,493,517     1,543,765     1,539,464
Deferred income taxes 10    1,599,556   2,238,313     1,734,724    2,331,012   Deferred income taxes 10   -    -   22,634     1,933
Judicial deposits 11    366,277   408,039     375,527    422,333   Liabilities with related parties 28    2,308     2,535    -    -
Biological assets 8    1,755,026   1,685,731     1,860,068    1,787,237   Employee benefits 19.2    263,031    248,200     454,193     467,127
Derivative financial instruments 23    422,375   251,570     422,375    251,570   Derivative financial instruments 23    131,890    236,206     131,890     236,206
Restricted cash     34,727    32,501   64,828     60,790   Other non-current liabilities      321,503    354,469     420,509     532,554
Other non-current assets      140,821   213,717     153,331    221,014                      
Total long-term receivables      8,659,076   9,407,479     9,228,954    9,973,868   Total non-current liabilities       22,426,826   21,996,785   24,526,343   25,355,295
                                         
                      EQUITY 21                
                      Capital       13,349,156   13,349,156   13,349,156   13,349,156
                      Capital reserves      2,763,364    2,763,364     2,763,364     2,763,364
                      Profit reserves      2,079,253    2,079,253     2,079,253     2,079,253
                      Other equity transactions     (163,847)   (141,608)    (163,847)    (141,608)
Investments 12   12,943,845    13,925,719     595,761    129,283   Accumulated earnings      1,865,056    -     1,865,056    -
Property, plant and equipment 13   13,199,385    13,062,018   15,174,253     15,068,229   Treasury shares     (1,723,905)   (1,345,657)    (1,723,905)    (1,345,657)
Intangible assets 14    3,237,433   3,192,874     6,429,610    6,673,211   Other comprehensive loss     (1,322,664)   (1,618,857)    (1,322,664)    (1,618,857)
                      Attributable to controlling shareholders       16,846,413   15,085,651   16,846,413   15,085,651
                      Non-controlling interests     -    -     1,255,242     1,413,553
Total non-current assets     38,039,739    39,588,090   31,428,578     31,844,591   Total equity       16,846,413   15,085,651   18,101,655   16,499,204
TOTAL ASSETS     62,329,513    61,196,109   64,292,562     62,675,076   TOTAL LIABILITIES AND EQUITY       62,329,513   61,196,109   64,292,562   62,675,076

The accompanying notes are an integral part of the interim financial information.
(In thousands of Brazilian Reais)

 

4 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

Statements of Income (Loss)

      Parent Company     Consolidated
      2025   2024     2025   2024
  Note   Apr - jun   Jan - jun   Apr - jun   Jan - jun     Apr - jun   Jan - jun   Apr - jun   Jan - jun
NET SALES  25   13,561,117   26,800,824   11,843,992   22,711,655       15,364,631     30,876,652     14,929,592     28,307,101
Cost of sales  26   (9,924,566)    (19,481,764)   (9,256,519)    (17,902,501)     (11,271,059)   (22,730,475)   (10,999,625)   (21,152,847)
GROSS PROFIT      3,636,551     7,319,060    2,587,473    4,809,154     4,093,572   8,146,177   3,929,967   7,154,254
OPERATING INCOME (EXPENSES)                                    
Selling expenses  26   (1,826,302)   (3,471,106)   (1,652,318)   (3,176,085)       (2,118,790)     (4,062,761)     (1,938,182)     (3,710,000)
General and administrative expenses  26   (179,285)   (290,348)   (175,480)   (304,738)       (277,859)     (495,044)     (251,215)     (452,708)
Impairment loss on trade receivables  6; 26      3,237     2,236     (18,873)     (34,793)      1,422     (3,329)    (20,897)    (48,115)
Other operating income (expenses), net  26   (121,278)   (132,630)     (12,569)   17,561       (117,751)     (121,721)    (12,772)     18,172
Income from associates and joint ventures  12   (148,388)   (691,356)    2,355,136    3,253,777       (511)    1,293     (3,612)     (6,019)
INCOME BEFORE FINANCIAL RESULTS AND INCOME TAXES      1,364,535     2,735,856    3,083,369    4,564,876     1,580,083   3,464,615   1,703,289   2,955,584
Financial income      243,651    426,853    171,492    368,238     373,240   739,088   273,915   548,594
Financial expenses     (999,824)   (1,926,450)   (911,444)   (1,842,926)       (1,004,506)     (1,925,711)     (886,749)     (1,793,862)
Foreign exchange and monetary variations      334,537     1,033,487   (1,266,840)   (1,519,444)      (64,770)     33,302   222,756   317,563
FINANCIAL INCOME (EXPENSES), NET 27   (421,636)   (466,110)   (2,006,792)   (2,994,132)       (696,036)     (1,153,321)     (390,078)     (927,705)
INCOME (LOSS) BEFORE TAXES       942,899     2,269,746    1,076,577    1,570,744     884,047   2,311,294   1,313,211   2,027,879
Income taxes 10   (202,278)   (404,690)     (88,825)     (77,999)       (149,126)     (391,303)     (219,319)     (340,243)
INCOME (LOSS) FOR THE PERIOD      740,621     1,865,056    987,752    1,492,745     734,921   1,919,991   1,093,892   1,687,636
                                     
Income (Loss) Attributable to                                    
Controlling shareholders      740,621     1,865,056    987,752    1,492,745     740,621   1,865,056   987,752   1,492,745
Non-controlling interest      -    -    -    -       (5,700)     54,935   106,140   194,891
       740,621     1,865,056    987,752    1,492,745     734,921   1,919,991   1,093,892   1,687,636
                                     
                                     
INCOME (LOSS) PER SHARE                                     
Weighted average shares outstanding - basic                       1,610,923,390   1,610,923,390   1,665,884,834   1,665,884,834
Loss per share - basic 22                     0.45975   1.15776   0.59293   0.89607
Weighted average shares outstanding - diluted                       1,613,528,816   1,613,528,816   1,667,487,853   1,667,487,853
Income (Loss) per share - diluted 22                     0.45901   1.15589   0.59236   0.89521

 

The accompanying notes are an integral part of the interim financial information.
(In thousands of Brazilian Reais)

 

5 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

Statements of Comprehensive Income (Loss)

      Parent Company   Consolidated
      2025   2024   2025   2024
  Note   Apr - jun   Jan - jun   Apr - jun   Jan - jun   Apr - jun   Jan - jun   Apr - jun   Jan - jun
Income for the period      740,621     1,865,056    987,752     1,492,745    734,921   1,919,991    1,093,892    1,687,636
Other comprehensive income (loss), net of taxes                                  
Gain (loss) on foreign currency translation of foreign operations     (111,829)    (332,230)   34,394     101,969   (178,098)    (538,905)    167,307    252,463
Gain (loss) on net investment hedge (1)     39,436     142,507   (141,238)    (180,118)   39,436   142,507   (141,238)     (180,118)
Cash flow hedges – effective portion of changes in fair value (1)      107,584     437,029   (192,368)    (237,253)    107,584   437,029   (192,371)     (236,915)
Cash flow hedges – reclassified to profit or loss  23    -    36,702   40,819    (6,618)    -    36,702   40,819   (6,618)
Debt investments measured at FVTOCI (1) - changes in fair value 5   12,452    13,094    -     -   12,452    13,094    -   -
Items that are or may be reclassified subsequently to profit or loss     47,643     297,102   (258,393)    (322,020)     (18,626)    90,427   (125,483)     (171,188)
Actuarial gains (losses) on pension and post-employment plans (1)  19.2    (2,161)    (909)   (2,996)   (10,166)   (6,769)     (7,480)   (8,938)    (24,561)
Items that will not be reclassified to profit or loss     (2,161)    (909)   (2,996)   (10,166)   (6,769)     (7,480)   (8,938)    (24,561)
Comprehensive income (loss) for the period      786,103     2,161,249    726,363     1,160,559    709,526   2,002,938    959,471    1,491,887
Attributable to                                  
Controlling shareholders      786,103     2,161,249    726,363     1,160,559    786,103   2,161,249    726,363    1,160,559
Non-controlling interest       -     -    -     -     (76,577)    (158,311)    233,108    331,328
       786,103     2,161,249    726,363     1,160,559    709,526   2,002,938    959,471    1,491,887
(1)Items above are stated net of deferred taxes on income and the related taxes are disclosed in note 10.

The accompanying notes are an integral part of the interim financial information.
(In thousands of Brazilian Reais)

 

6 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

Statements of Changes in Equity

      Attributed to controlling shareholders
                      Income reserves   Other comprehensive income (loss)                
      Capital   Capital reserves   Other equity transactions   Treasury shares   Legal reserve   Reserve for capital increases   Reserve for expansion   Reserve for tax incentives   Accumulated foreign currency translation adjustments   Gains (losses) on marketable securities at FVTOCI (2)   Gains (losses) on cash flow hedge    Actuarial gains (losses)   Accumulated aearnings (losses)   Total equity   Non-controlling interest   Total shareholders' equity
(consolidated)
BALANCES AT DECEMBER 31, 2023       13,349,156   2,763,364    (70,106)    (96,145)     -     -     -     -     (1,048,895)     -     65,569    (39,515)     -     14,923,428   720,228    15,643,656
Comprehensive income (loss) (1)                                                                  
Gain on foreign currency translation of foreign operations       -     -     -     -     -     -     -     -   122,951     -     -     -     -   122,951   225,552     348,503
Loss on net investment hedge        -     -     -     -     -     -     -     -     (339,101)     -     -     -     -     (339,101)     -    (339,101)
Unrealized gains (losses) in cash flow hedge       -     -     -     -     -     -     -     -     -     -     (312,532)     -     -     (312,532)    338    (312,194)
Actuarial losses on pension and post-employment plans       -     -     -     -     -     -     -     -     -     -     -     (8,827)     -     (8,827)    (10,936)   (19,763)
Realized loss in marketable securities at FVTOCI (2)       -     -     -     -     -     -     -     -     -    (46,529)     -     -     -    (46,529)     -   (46,529)
Income for the year       -     -     -     -     -     -     -     -     -     -     -     -   3,213,274   3,213,274   478,630     3,691,904
SUB-TOTAL COMPREHENSIVE INCOME (LOSS)       -     -     -     -     -     -     -     -     (216,150)    (46,529)     (312,532)     (8,827)   3,213,274   2,629,236   693,584     3,322,820
Employee benefits remeasurement - defined benefit       -     -     -     -     -     -     -     -     -     -     -    (11,978)     11,978     -     -    -
Appropriation of income (loss)                                                                  
Dividends       -     -     -     -     -     -     -     -     -     -     -     -     -     -     (259)    (259)
Interest on shareholders' equity - R$0.69325 per outstanding share at the end of exercise       -     -     -     -     -     -     -     -     -     -     -     -     (1,145,999)     (1,145,999)     -    (1,145,999)
Legal reserve       -     -     -     -   160,664     -     -     -     -     -     -     -     (160,664)     -     -    -
Reserve for expansion       -     -     -     -     -     -   796,275     -     -     -     -     -     (796,275)     -     -    -
Reserve for capital increases       -     -     -     -     -   482,573     -     -     -     -     -     -     (482,573)     -     -    -
Reserve for tax incentives       -     -     -     -     -     -     -   639,741     -     -     -     -     (639,741)     -     -    -
Share-based payments       -     -    (71,502)     38,730     -     -     -     -     -     -     -     -     -    (32,772)     -   (32,772)
Acquisition of treasury shares       -     -     -     (1,288,242)     -     -     -     -     -     -     -     -     -     (1,288,242)     -    (1,288,242)
BALANCES AT DECEMBER 31, 2024       13,349,156   2,763,364     (141,608)     (1,345,657)   160,664   482,573   796,275   639,741     (1,265,045)    (46,529)     (246,963)    (60,320)     -     15,085,651   1,413,553    16,499,204
Comprehensive income (loss) (1)                                                                  
Loss on foreign currency translation of foreign operations     -   -   -   -   -   -   -   -     (332,230)   -   -   -   -     (332,230)     (206,675)    (538,905)
Gain on net investment hedge      -   -   -   -   -   -   -   -   142,507   -   -   -   -   142,507   -     142,507
Unrealized gains (losses) in cash flow hedge     -   -   -   -   -   -   -   -   -   -   473,731   -   -   473,731   -     473,731
Actuarial losses on pension and post-employment plans     -   -   -   -   -   -   -   -   -   -   -     (909)   -     (909)     (6,571)    (7,480)
Realized loss in marketable securities at FVTOCI (2)     -   -   -   -   -   -   -   -   -     13,094   -   -   -     13,094   -    13,094
Income for the year     -   -   -   -   -   -   -   -   -   -   -   -   1,865,056   1,865,056     54,935     1,919,991
SUB-TOTAL COMPREHENSIVE INCOME (LOSS)     -   -   -   -   -   -   -   -     (189,723)     13,094   473,731     (909)   1,865,056   2,161,249     (158,311)     2,002,938
Share-based payments     -   -    (22,239)     38,493   -   -   -   -   -   -   -   -   -     16,254   -    16,254
Acquisition of treasury shares     -   -   -     (416,741)   -   -   -   -   -   -   -   -   -     (416,741)   -    (416,741)
BALANCES AT JUNE 30, 2025       13,349,156   2,763,364     (163,847)     (1,723,905)   160,664   482,573   796,275   639,741     (1,454,768)    (33,435)   226,768    (61,229)   1,865,056     16,846,413   1,255,242    18,101,655
(1)All changes in other comprehensive income are presented net of deferred taxes on profit, when applicable, are disclosed in note 10.
(2)FVTOCI: Fair Value through Other Comprehensive Income in note 5.

 

The accompanying notes are an integral part of the interim financial information.
(In thousands of Brazilian Reais)

 

7 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

Statements of Cash Flows

    Parent Company   Consolidated
    2025   2024   2025   2024
    Jan - jun   Jan - jun   Jan - jun   Jan - jun
CASH FLOWS FROM OPERATING ACTIVITIES                
Income (loss) for the period    1,865,056    1,492,745    1,919,991    1,687,636
Adjustments for:                
Depreciation and amortization    773,338    755,102    994,368    964,214
Depreciation and depletion of biological assets    656,743    671,937    727,650    749,373
Result on disposal of property, plant and equipments, investment and intangible   12,162     (16,346)   10,959     (21,248)
Provision for tax, civil and labor risks    248,454    177,010    270,143    176,374
Income from investments under the equity method    691,356   (3,253,777)   (1,293)     6,019
Financial results, net    466,110    2,994,132    1,153,321    927,705
Deferred income tax    322,435   63,317    278,046   25,135
Short-term employee benefits   -    274,597   -    266,627
Other    224,658   35,703    214,350   44,322
     5,260,312    3,194,420    5,567,535    4,826,157
Changes in assets and liabilities:                
Trade accounts and notes receivables    2,507,389   (437,482)    1,981,347   (153,803)
Inventories   (349,220)    427,799   (585,926)    442,490
Biological assets - current   (228,983)   (9,218)   (247,091)     (31,061)
Trade accounts payable    217,272   (359,214)    162,324   (704,883)
Cash generated by operating activities    7,406,770    2,816,305    6,878,189    4,378,900
                 
Redemptions (investments) in securities at FVTPL (1)     1,285     8,987     1,285     (42,920)
Interest received    235,674    146,045    368,765    346,975
Dividends and interest on shareholders' equity received   -   13   (318)   -
Payment of tax, civil and labor provisions   (233,221)   (144,410)   (227,429)   (144,102)
Derivative financial instruments    114,741     (74,644)    114,740     (83,806)
Other operating assets and liabilities (2)   (1,722,051)    1,377,435   (948,111)   (267,128)
Net cash provided by operating activities    5,803,198    4,129,731    6,187,121    4,187,919
                 
CASH FLOWS FROM INVESTING ACTIVITIES                
Redemption (additions) on investments in securities at amortized cost    -    -   14,581   39,713
(Constitution) redemption of restricted cash   (8,665)    -    251,109    -
Investments in securities at FVTOCI (3)     (80,138)   (830,623)     (80,125)   (830,623)
Additions to property, plant and equipment   (602,360)   (250,782)   (895,839)   (270,982)
Additions to biological assets - non-current   (724,734)   (651,662)   (807,017)   (712,852)
Proceeds from disposals of property, plant, equipments and investment     9,822   58,433     9,822   58,433
Additions to intangible   (124,688)   (106,748)   (158,234)   (107,702)
Aquisição de participação em coligadas e joint ventures     2,922    -   (511,106)    -
Capital increase in subsidiaries     (60,000)   47,221    -    -
Net cash used in investing activities   (1,587,841)   (1,734,161)   (2,176,809)   (1,824,013)
                 
CASH FLOWS FROM FINANCING ACTIVITIES                
Proceeds from debt issuance    1,187,623    1,981,490    1,433,877    2,132,390
Repayment of debt   (286,643)   (1,213,151)   (411,482)   (1,373,136)
Payment of interest   (606,187)   (654,916)   (732,916)   (761,784)
Payment of interest derivatives - fair value hedge     (66,428)   (153,452)     (66,428)   (153,452)
Treasury shares acquisition   (416,741)   (348,272)   (416,741)   (348,273)
Dividends and interests on shareholders' equity paid    -   -   -   -
Payment of lease liabilities   (320,217)   (325,196)   (422,050)   (418,016)
Net cash used in financing activities   (508,593)   (713,497)   (615,740)   (922,271)
                 
Effect of exchange rate variation on cash and cash equivalents     1,191   15,050   (413,733)    751,559
Net increase in cash and cash equivalents    3,707,955    1,697,123    2,980,839    2,193,194
Balance at the beginning at the period    3,989,024    4,701,549   11,165,364    9,264,664
Balance at the end of the period    7,696,979    6,398,672   14,146,203   11,457,858
(1)FVTPL: Fair Value Through Profit and Loss.
(2)In the Parent Company, contemplates mainly the effects of prepayments of exports with subsidiaries in the amount of R$(1.698.131) in the six-month period ended June 30, 2025 (R$2.339.584 in the same period of the previous year).
(3)FVTOCI: Fair Value through Other Comprehensive Income in note 5.

The accompanying notes are an integral part of the interim financial information.
(In thousands of Brazilian Reais)

 

8 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

Statements of Value Added

    Parent Company   Consolidated
    2025   2024   2025   2024
    Jan - jun   Jan - jun   Jan - jun   Jan - jun
1 - REVENUES   29,755,590     25,185,443   34,012,127     30,932,275
Sales of goods and products   29,293,506     24,954,426   33,458,897     30,699,568
Other income   (132,162)     18,454   (121,253)     19,065
Revenue related to construction of own assets    592,010   247,356    677,812   261,757
Expected credit losses     2,236    (34,793)   (3,329)    (48,115)
2 - SUPPLIES ACQUIRED FROM THIRD PARTIES    (18,429,822)   (16,608,047)    (21,352,772)   (19,638,801)
Costs of goods sold    (15,336,639)   (14,034,650)    (17,906,597)   (16,837,658)
Materials, energy, third parties services and other   (3,087,177)     (2,558,753)   (3,438,900)     (2,806,270)
Reversal for inventories losses   (6,006)    (14,644)   (7,275)    5,127
3 - GROSS ADDED VALUE  (1-2)   11,325,768   8,577,396   12,659,355     11,293,474
4 - DEPRECIATION AND AMORTIZATION   (1,430,081)     (1,427,039)   (1,722,018)     (1,713,587)
5 - NET ADDED VALUE (3-4)    9,895,687   7,150,357   10,937,337   9,579,887
                 
6 - VALUE ADDED RECEIVED THROUGH TRANSFER   (264,972)   3,621,125    739,912   541,680
Income from associates and joint ventures   (691,356)   3,253,777     1,293     (6,019)
Financial income    426,853   368,238    739,089   548,594
Others   (469)     (890)   (470)     (895)
                 
7 - ADDED VALUE TO BE DISTRIBUTED (5+6)    9,630,715     10,771,482   11,677,249     10,121,567
                 
8 - DISTRIBUTION OF ADDED VALUE    9,630,715     10,771,482   11,677,249     10,121,567
Payroll    3,504,808   3,245,930    4,292,108   3,763,955
Salaries    2,356,722   2,142,381    2,983,126   2,624,939
Benefits    978,229   948,305    1,122,470   970,951
Government severance indemnity fund for employees    169,857   155,244    186,512   168,065
Taxes, Fees and Contributions    3,267,989   2,583,907    3,428,338   3,058,492
Federal    1,612,832   1,129,823    1,706,806   1,491,802
State    1,623,845   1,426,480    1,682,901   1,533,196
Municipal   31,312     27,604   38,631     33,494
Capital Remuneration from Third Parties    992,862   3,448,900    2,036,812   1,611,484
Interests, including exchange variation    924,345   3,380,692    1,924,132   1,495,545
Rents   68,517     68,208    112,680   115,939
Interest on Own-Capital    1,865,056   1,492,745    1,919,991   1,687,636
Income (loss) for the year    1,865,056   1,492,745    1,865,056   1,492,745
Non-controlling interest    -   -   54,935   194,891

The accompanying notes are an integral part of the interim financial information.
(In thousands of Brazilian Reais)

 

9 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

 

1T24 Relatório da Administração São Paulo, August 14, 2025 - BRF S.A. (B3: BRFS3; NYSE: BRFS) – "BRF" or "Company" releases its results for the 2nd quarter of 2025. The comments included herein refer to results in Reais, in accordance with Brazilian corporate law and practices adopted in Brazil and in accordance with International Financial Reporting Standards (IFRS), which comparisons are based on the same periods of 2024 and/or prior years, as indicated. DEBT AVERAGE TERM 8.2 MARKETCAP STOCK PRICES ISSUED SHARES 1,682,473,24618.87 R$3.50 US$ BRFS3 BRFS 80,772,898 15,365 MillionR$ 14,930Millionin2Q24 R$ GROSSPROFIT 4,094 3,930Millionin2Q24 26.6% 26.3%in2Q24 735 1,094Millionin2Q24 ADJUSTEDEBITDA FREE CASH FLOW NET LEVERAGE 0.43x 16.3% ADJUSTED EBITDA MARGIN 2,502 84231.75 R$5.89 US$ FINANCIAL INDICATORS 08/15/2025 – Friday - 9h00 US ET | 10h00 BRT Accessin:Click here MillionR$ R$ MillionR$ R$ MillionR$ R$ MillionR$ R$ CONFERENCE CALL Management Report | 2Q25 10 2,621Millionin2Q24 17.6%in2Q24 1,728Millionin2Q24 1.14xin2Q24 years 8.0yearsin2Q24 Billion Base:08/13/2025 GROSSMARGIN NET INCOME (LOSS) Base:08/13/2025 ONShares/TreasuryShares Base:06/30/2025 NET REVENUE 1T24 Relatório da Administração Dear employees, shareholders, partners and clients, The second quarter of 2025 was marked by the announcement of the merger of BRF's business with Marfrig, creating MBRF, one of the largest food companies in the world, with consolidated net revenue of R$ 152 billion. The deal will result in a single, more agile and diversified listed company with a strong global presence. The broad approval of the transaction at the shareholders' meeting held in August, with the validation of the majority of minority shareholders, reinforces investor confidence in our value creation proposal. Once the transaction is completed, we will have a truly multi-protein company, with iconic brands and an integrated portfolio, with 38% of sales volume coming from high value-added processed products. Our increasingly complementary management and exchange of best practices have already contributed to a company focused on operational excellence and consistent results, as demonstrated by BRF's record EBITDA in the first half of this year. Every day, we are strengthening joint initiatives, intensifying the use of our brands, expanding our market reach, and reducing expenses. Once all conditions precedent have been fully met, we will begin the most intense phase of capturing synergies and reinforcing our competitive advantages. We will remain focused on consolidating a culture of efficiency and high performance, unlocking value and promoting economic, social, and environmental development. I would like to thank our shareholders for their continued trust, our employees for their commitment and dedication, and our suppliers and customers for their partnership. We will continue to work together, growing stronger, building a company committed to feeding the future with quality and excellence, of which our families and all of us will continue to be proud. MESSAGE FROM THE CHAIRMAN Marcos Antonio Molina dos SantosChairman of the Board of Directors 11 Management Report | 2Q25 1T24 Relatório da Administração Dear Mr./Madam, BRF reaches the middle of 2025 reporting the best first half of its history, with EBITDA of R$5.3 billion and net profit of R$1.9 billion. The results highlight the Company's operational excellence, strategic vision, and financial discipline, as well as its ability to react in adverse scenarios such as that faced in the second quarter, marked by restrictions on Brazilian chicken exports. Focused on its path of efficiency and value creation, in the second quarter the company reported net revenue of R$15.4 billion, EBITDA of R$2.5 billion and free cash flow of R$842 million, reflecting the lowest leverage ever recorded in the Company's history (0.43x). The Brazil segment recorded the highest volume and net operating revenue for a second quarter, driven by the increase in the customer base, which now exceeds 330,000, and by the consumption in the domestic market. During the period, we also strengthened the connection between our brands and consumers by renewing strategic sponsorships and expanding our portfolio through innovations in value-added products, especially the Sadia/Bassi and Perdigão/Montana burgers, and Perdigão's entry into the ready-to-eat snack category. In the international segment, the Company continued its strategy of diversifying destinations, obtaining 11 new authorizations to export in the quarter, 23 in the year to date, and a total of 198 since 2022. In the Halal market, the company continues to consolidate its leadership and strong presence with the launch of the Sadia Fresh line of chilled chicken produced in Saudi Arabia, further strengthening its strategic partnership with the Kingdom. In addition, we recorded growth in the market share of processed products in GCC countries. On the operational efficiency front, BRF+ continues to optimize our results with actions aimed at the continuous improvement of operational indicators. These initiatives enabled operating gains of R$208 million, highlighting the importance of a high-performance culture with increasingly consistent deliveries. This quarter, we made progress on our ESG agenda, starting with valuing teams. In the last 12 months, we have filled 72% of leadership positions through internal recruitment. The brand Qualy received the Carbon Free seal for the first time for neutralizing 100% of the emissions from its advertising campaign. In the social dimension, with the “Educação para o Futuro” (Education for the Future) initiative, the BRF Institute has benefited more than 5,000 people directly, mobilizing volunteers in all our operations. We remain optimistic about our sustainable growth path, driven by a solid strategy, innovation and operational excellence. We reaffirm our commitment to quality, safety, and integrity in producing and marketing our products and iconic brands, bringing excellence to clients and consumers worldwide and generating a positive impact on society. We would like to conclude by thanking our chairman and controller Marcos Molina for his support and strategic direction, the Board of Directors for their assistance, our shareholders for their trust, our integrated producers, customers, suppliers and the communities where we operate for their partnership and our more than 100,000 employees for their dedication and daily work. The result achieved by BRF is the sum of everyone's dedication and commitment. MESSAGE FROM MANAGEMENT 12 Miguel GularteCEO Management Report | 2Q25 1T24 Relatório da Administração The consolidated results for 2Q25 was impacted by hyperinflation in Türkiye, which is highlighted below: Below we will present the results by business segment from a managerial perspective, excluding the accounting effects of hyperinflation in Türkiye in all periods. OPERATIONAL AND FINANCIAL PERFORMANCE 13 Management Report | 2Q25 Highlights (Million R$)2Q252Q24Chg. % y/y1Q25Chg. % q/qVolume (Thousand Tons)1,2281,244(1.3%)1,243(1.2%)Net Revenues15,36514,9302.9%15,512(1.0%)Average Price (R$/kg)12.5112.004.2%12.480.2%COGS(11,271)(11,000)2.5%(11,459)(1.6%)COGS/Kg (9.18) (8.84)3.8% (9.22)(0.5%)Gross Profit4,0943,9304.2%4,0531.0%Gross Margin (%)26.6%26.3%0.3 p.p.26.1%0.5 p.p.Net (Loss) Income7351,094(32.8%)1,185(38.0%)Net Margin (%)4.8%7.3%(2.5) p.p.7.6%(2.9) p.p.Adjusted EBITDA 2,5022,621(4.5%)2,753(9.1%)Adjusted EBITDA Margin (%)16.3%17.6%(1.3) p.p.17.7%(1.5) p.p.EBITDA2,4642,569(4.1%)2,723(9.5%)EBITDA Margin (%)16.0%17.2%(1.2) p.p.17.6%(1.5) p.p.Cash Generation (Consumption)8421,728(51.3%)1,282(34.3%)Net Debt4,7358,932(47.0%)5,982(20.9%)Leverage (Net Debt/Adj.EBITDA LTM)0.43x1.14x(62.3%)0.54x(20.0%)Highlights (Million R$)Consolidated Results 2Q25TurkeyHyperinflationConsolidated Managerial Results 2Q25Chg. % Volume (Thousand Tons)1,228-1,228-Net Revenues15,3659915,4640.6%Average Price (R$/kg)12.51-12.590.6%COGS(11,271)(40)(11,311)0.4%COGS/Kg (9.18)- (9.21)0.4%Gross Profit4,094604,1531.5%Gross Margin (%)26.6%-26.9%0.2 p.p.EBITDA 2,464382,5021.5%EBITDA Margin (%)16.0%-16.2%0.1 p.p.Adjusted EBITDA 2,502-2,5020.0%Adjusted EBITDA Margin (%)16.3%-16.2%0.0 p.p.Net (Loss) Income Total Consolidated735(16)719(2.2%)Net Margin - Total Consolidated (%)4.8%-4.6%(0.1) p.p. 1T24 Relatório da Administração SEGMENT BRAZIL 1T24 Relatório da Administração BRAZILSEGMENT In the second quarter of 2025, we achieved an EBITDA of R$1,324 million in Brazil, and a margin of 16.4%, which represented an increase of 0.7 p.p. compared to the second quarter of 2024 and a retraction of 0.7 p.p compared to the last quarter. The maintenance of our commercial performance indicators at good levels contributed to achieving record sales volume for a second quarter and surpassing the 330,000 customer mark (332,500 clients in 2Q25), while increasing the number of items sold per client. This result, coupled with the resilience of food consumption in the domestic market, allowed us to increase sales both year-on-year and quarter-on-quarter, with the performance of processed foods standing out with sales volume growth of 7.4% y/y and 7.0% q/q, in addition to the contribution of the in natura category to the segment's margins. Regarding unit costs, we observed an increase of 7.8% y/y and stability in the quarterly comparison. The year-on-year variation is mainly explained by the increase in the cost of the consumption of grains and oils, the inflationary effects on goods and services, the higher volume of raw material purchases from third parties to attend the demand for processed products and the mix of products sold in the period, effects partially mitigated by the captures of the efficiency program, BRF+. This quarter, we kept FIFO discounts at a historic low level, highlighting the assertiveness of demand planning, supply chain dimensioning, and production plans. In Brazil, economic indicators related to employment and income reached record highs in June. The unemployment rate reached 5.8%1, the lowest level in the historical series, with the total number of employees with a formal contract also reaching the highest level ever recorded. This result was reflected in the income mass2, also a record high, and in average earnings, which rose 3.3% y/y and 1.1% q/q3. The performance of the aforementioned indicators reflects signs of increased demand and tends to boost sales of our processed products in particular. 1 - Source: Brazilian Institute of Geography and Statistics (IBGE) - Continuous PNAD - Unemployment rate in the quarter ended on June/25 2 - Income mass: the sum of everything people receive for their work - Source: Brazilian Institute of Geography and Statistics (IBGE) 3 - Source: Brazilian Institute of Geography and Statistics (IBGE) - Continuous PNAD - Average Real Habitual Income of Occupied Persons - R$3,477 in Jun/25, R$3,440 in Mar/25 and R$3,367 in Jun/24 15 Management Report | 2Q25 Brazil Segment (Million R$)2Q252Q24Chg. % y/y1Q25Chg. % q/qNet Operating Revenues 8,0806,87217.6%7,4358.7%Average price (R$/kg)13.1111.8111.1%12.772.7%COGS(5,693)(4,990)14.1%(5,375)5.9%COGS/kg (9.24) (8.57)7.8% (9.23)0.1%Gross Profit2,3871,88226.8%2,06015.9%Gross Margin (%)29.5%27.4%2.2 p.p.27.7%1.8 p.p.Adjusted EBITDA1,3241,07623.1%1,2743.9%Adjusted EBITDA Margin (%)16.4%15.7%0.7 p.p.17.1%(0.7) p.p. 1T24 Relatório da Administração Sadia started the second quarter with its Mother's Day campaign. Starring Olympic medalist and ambassador Rebeca Andrade and her mother, Rosa Santos, the campaign valued the maternal role and highlighted the brand's positioning as a partner at all times through the “Linha Fácil Sadia”, a portfolio of proteins that go from the freezer to the oven, offering flavor and practicality. Following its strategy of connecting with young audiences, Sadia sponsored the NBA for the fifth consecutive year and communicated its range of breaded meats, sausages and pizzas. In addition, Sadia was the first frozen food brand to invest in the gamer universe with its sponsorship of LTA Sul, where it promoted its portfolio of ready meals, snacks and the relaunch of Hot Pocket ready meals. Sadia ended the quarter with the launch of the Pop Dog sausage, ideal for airfrying, made with beef and providing a snack bar experience at home. Perdigão, which for the 5th consecutive year is the food brand most chosen by Brazilians4, maintained its presence on the sports platform as a sponsor of the Northeast Cup, with its Core line, and in the broadcasts of the Brazil Cup on Globo and Brasileirão on Globo and Record, with the Perdigão Na Brasa line. The extension of Perdigão's Ouro portfolio, which is the leader in smoked mortadella5 and now includes smoked salami and chicken breast, was presented in the high-impact campaign “Se é Ouro, é Perdigão” (If it's Ouro, it's Perdigão). In June, Perdigão, the leader in sausages6, sponsored and was present with its ambassador Ivete Sangalo at São João de Caruaru, reinforcing its sausage portfolio. Perdigão has expanded its product range and entered the ready-to-eat snack category with three new Perdigão Montana items: Cheeseburger, Churrasburguer and Toscanaburguer. The brand has also entered the ready-to-eat pies category by launching chicken pie with bacon and pepperoni pie with cream cheese. In margarines, Qualy, the category's leading brand7, continued its strategy of communicating the versatility of the brand's products with the launch of the webseries “Passa Lá em Casa” (Come By My House), starring ambassador Eliana and with the participation of real consumers. Deline, the Northeast's regional leader in margarines8, was present at the traditional São João festival in Caruaru, as well as highlighting the Deline Milho special edition, the only corn-flavored margarine on the market. In a quarter full of campaigns and innovations, BRF increased its leadership in the processed food and margarine market9, with Sadia being recognized as the strongest and most valuable food brand in Brazil by Brand Finance10. BRAND HIGHLIGHTS 16 Management Report | 2Q25 4 - Source: Brand Footprint Worldpanel by Numerator of Kantar, 2025 5 - Nielsen Retail - 3rd bimester 2025 reading for processed foods and margarines 6 - Nielsen Retail - 3rd bimester 2025 reading for processed foods and margarines 7 - Nielsen Retail - 3rd bimester 2025 reading for processed foods and margarines 8 - Nielsen Retail - 3rd bimester 2025 reading for processed foods and margarines 9 - Nielsen Retail - 3rd bimester 2025 reading for processed foods and margarines 10 - The most valuable brands in Brazil - 2025, Brand Finance 1T24 Relatório da Administração SEGMENT INTERNATIONAL 1T24 Relatório da Administração In 2Q25, we achieved adjusted EBITDA of R$ 1,168 million, with a margin of 17.3%, maintaining a healthy level of profitability despite temporary bans on Brazilian chicken exports as a result of avian flu, which led to a decline in sales volumes. During the quarter, several important destinations for Brazilian chicken exports, such as the countries of the European Union, China, Saudi Arabia, South Korea, Mexico and Chile, were totally or partially blocked, with some blockades persisting until today. Once again, the strategy of diversifying markets by gaining new authorizations to export has allowed us to expand the destinations for our products despite the restrictions imposed. Since 2022, we have obtained 198 new export permits, 11 of which were obtained this quarter, with destinations such as Argentina and Canada standing out. Despite the avian flu scenario, we saw an evolution in the price in dollars of various poultry and pork cuts, however, the appreciation of the real against the dollar resulted in stable prices in reais in the period (average ptax 2Q25 at R$ 5.67 versus R$ 5.85 in 1Q2511). The 10.7% increase in unit costs year-on-year and 1.4% quarter-on-quarter is mainly explained by the increase in the cost of consuming grains and oils, the mix of products sold in the period, the increase in the cost of production at our platform in Türkiye and the inflationary effects on supplies and services, partially offset by the positive effects of BRF+. In the GCC12, we highlight our portfolio of value-added products, which, through assertive innovations aligned with the local culture, continues to contribute to stable margins. We continue to operate with high occupancy at our plants in the region (Dammam in Saudi Arabia and Kezad in the United Arab Emirates), which are dedicated to the production of processed products to meet local demand and global accounts, including gains in market share in important categories such as hamburgers and chicken sausage13. In July, we launched the Sadia brand in the chilled chicken category, with production in Saudi Arabia, as a result of the acquisition of 26% of Addoha Poultry Company, a chicken slaughtering company, through BRF Arabia (a joint venture between BRF and Halal Products Development Company, a wholly-owned subsidiary of the Saudi sovereign wealth fund PIF). In Türkiye, we continued to increase the share of processed products in total sales, which helped mitigate the effects of the increase in the local supply of fresh products, with repercussions on price dynamics, in addition to the inflationary scenario that continues to challenge family income and the company's cost structure. In the Asian market, we observed a recovery in prices in dollars, especially for pork protein. In the Americas, we highlight the profitability of turkey breast and pork exports and the portfolio of value-added products, mainly through the Sadia brand in countries such as Argentina, Chile, Uruguay and Paraguay. In Europe, exports to the United Kingdom, resulting from new authorizations obtained in recent years, continue to contribute to the expansion of consolidated profitability. INTERNATIONALSEGMENT 11 - Source: Central Bank of Brazil - Average Ptax for the periods reported 12 - Gulf Cooperation Council (GCC): Member countries are Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Kuwait and Oman 13 - Source: Nielsen 18 Management Report | 2Q25 International Segment (Million R$)2Q252Q24Chg. % y/y1Q25Chg. % q/qNet Operating Revenues6,7417,073(4.7%)7,483(9.9%)Average price (R$/kg)13.5112.716.3%13.53(0.1%)COGS(5,103)(5,140)(0.7%)(5,580)(8.5%)COGS/kg(10.23)(9.24)10.7%(10.09)1.4%Gross Profit1,6391,933(15.2%)1,903(13.9%)Gross Margin (%)24.3%27.3%(3.0) p.p.25.4%(1.1) p.p.Adjusted EBITDA1,1681,486(21.4%)1,426(18.0%)Adjusted EBITDA Margin (%)17.3%21.0%(3.7) p.p.19.1%(1.7) p.p. 1T24 Relatório da Administração In the GCC countries, we remained market leaders in the second quarter, with a 36.2%14 share, maintaining the journey of growth in the processed category, in line with the long-term strategy for the region. In May, BRF took part in the Saudi Food Show 2025, the largest event in the food and beverage sector in Saudi Arabia, held in Riyadh, the country's capital. Participating in the Saudi Food Show was a valuable opportunity for BRF to strengthen its presence in an increasingly relevant market. We were there with a 168m² stand, where we presented our brands, portfolio and innovations. Visitors were also able to taste various locally produced products, including the Breaded line, Sadia Beef and the convenient Easy & Juicy line. Showcasing the variety and quality of our products reaffirms our commitment to expanding our global operations and strengthening our commercial relations in the region. In addition, our communication in the second quarter focused on boosting the growth of our breaded range, with the support of online and in-store activations in GCC markets. The campaign reached 11.4 million people, with high levels of engagement driven by influencer marketing. Also, in July we launched the first line of chilled chicken produced locally in the Kingdom of Saudi Arabia (KSA): Sadia Fresh. As well as meeting local consumer demand, the new line reinforces BRF's commitment to food safety in the Kingdom. As the market share leader in the chicken category, the launch of the line is a strategic move to maintain the brand's leadership in the Saudi market. In Türkiye, in the second quarter, we proudly maintained our leading position in the Ipsos Brand Health survey as the preferred brand - well ahead of our closest competitor. As part of our “Smart Kids' Table” project, we proudly inaugurated the Banvit Sustainable Food Center at KidZania - an interactive learning space for children - with a special event attended by members of the media and influencers. There, the children learn how to avoid food waste and store it properly. We also continue to support sport by becoming the main sponsor of the Kyzikos Ultra Marathon, held in our hometown of Bandırma. The event brought together around 1,500 athletes, and we offered tastings of our products to the participants and the local community. For the Southern Cone15, international marketing initiatives were very prominent, especially in Chile. The second phase of the “Tu Día Pide Sadia” campaign was officially launched, focusing on presenting the new packaging to Chilean consumers. The action was conducted through a 360º strategy, with the largest investment in communication ever made by the brand in the country. As a result, there was an increase in volume in every week of broadcasting. There were also significant increases in market share16, especially in the nuggets, IQF chicken and lasagne categories. For the rest of the world, we launched 30 new SKUs in the quarter, enabling the diversification of the portfolio and contributing to the flexibility and profitability of commodity products. Among them, 9 SKUs are value-added products, such as processed and IQF, reinforcing our strategy of growing in these categories. In value-added items, we highlight the debut in the ready meals category in Argentina, with 4 SKUs of Sadia lasagna and empanadas in Singapore. Finally, we announced the production of the beef portfolio using the Sadia brand with the first shipments to China in customized boxes. The initiative marks the transition of the entire GJ brand portfolio to Sadia, capitalizing on synergies with Marfrig through brand strength and portfolio optimization. BRAND HIGHLIGHTS 19 14 - Source: Nielsen 15 - Geographically and culturally defined region in South America, made up of Argentina, Chile, Uruguay and Paraguay 16 - Source: Nielsen – market share volume Management Report | 2Q25 1T24 Relatório da Administração SEGMENTS OTHER 1T24 Relatório da Administração In Ingredients, as a result of the progress of the efficiency program, BRF+, we continue to see a reduced supply of products for this business segment. In the quarter, BRF Ingredients reached new markets with the conclusion of the first sale of heparin to China and Hong Kong, maximizing the profitability of the pharmaceuticals segment. Also noteworthy was the start-up of the new breading flour line at the Toledo, Paraná plant, allowing the Ingredients segment to expand its product portfolio. In Pet Food, we increased our active clients base by 8% y/y, which enabled us to increase the volumes sold in the quarter and, consequently, the segment's revenue. We completed the implementation and unification of the ERP system (SAP), making significant progress in the areas of integration and value generation, with a strategic focus on supplies, industrial operations and logistics. In addition, during the quarter, we highlighted the relevance of our feline portfolio of our main brands, increasing visibility and exposure for this sub-segment of products, which boosts consolidated profitability. During the second quarter of 2025, the Company carried out one-off arbitrage , operations involving the sale of grains between regions as a result of its more active role in identifying market opportunities to reduce origination costs. These operations contributed to the absolute result of the Other Business Segments. Pet:In the second quarter of the year, the BRF Pet brands continued their visibility plan, with a digital communication campaign for the GranPlus (Special Premium) and Biofresh (Super Premium Natural) brands, reinforcing their flavor credentials and high inclusion of fresh ingredients, respectively. To strengthen its relationship with veterinarians, the company sponsored the Cat Congress, the largest feline-focused congress in the country, with a prominent space for the GranPlus, Guabi Natural and Biofresh brands, showcasing portfolio solutions that meet the needs of cats for their healthy development. OTHER SEGMENTS Corporate The adjusted EBITDA of this segment is explained, among other effects, by the result on the sale and write-off of fixed assets and investments and by the reversal/provision of tax and civil contingencies. Further details on the result are available in Explanatory Note 24 to the Interim Financial Information. The negative gross profit of R$107 million in 2Q24 refers to the impact on COGS of the weather events in Rio Grande do Sul. The costs and expenses associated with these events were allocated to the Corporate segment due to their non-recurring nature and because they are not directly related to the markets. For more details of these impacts, see Explanatory Note 1.2 to the Financial Statements. BRAND HIGHLIGHTS 21 Management Report | 2Q25 Other Segments (Million R$)2Q252Q24Chg. % y/y1Q25Chg. % q/qNet Operating Revenues643728(11.7%)655(1.9%)Average price (R$/kg)5.696.91(17.7%)6.12(7.1%)COGS(515)(563)(8.4%)(522)(1.3%)COGS/kg(4.56)(5.35)(14.7%)(4.88)(6.5%)Gross Profit127165(22.7%)133(4.5%)Gross Margin (%)19.8%22.6%(2.8) p.p.20.3%(0.5) p.p.Adjusted EBITDA5286(39.9%)76(31.4%)Adjusted EBITDA Margin (%)8.1%11.9%(3.8) p.p.11.5%(3.5) p.p.Corporate (Million R$)2Q252Q24Chg. % y/y1Q25Chg. % q/qGross Profit0(107)n.m.(1)119.4% Adjusted EBITDA(42)(28)(53.0%)(22)(91.7%) 1T24 Relatório da Administração CONSOLIDATED PERFORMANCE 1T24 Relatório da Administração In 2Q25, we observed net revenue increase by 2.9% y/y, mainly due to the 4.2% y/y increase in the average price, influenced, among other factors, by the evolution of prices and volumes in the domestic market in all segments and in exports of pork and turkey proteins, as well as the exchange rate impact on the International segment's revenue (average 2Q24 ptax of R$5.21 versus R$5.67 in 2Q2517), which helped mitigate the reduction in sales volumes associated with the suspension of chicken meat exports due to the outbreaks of avian flu. In the quarterly comparison, the 1.0% drop in revenue is also explained by the reduction in volumes sold as a result of the temporary blockades on the export of chicken protein to various markets. From a managerial perspective, where we exclude the effects of Türkiye's hyperinflation in all periods, our net revenue reached R$15,464 million in 2Q25 versus R$14,672 million in 2Q24 and R$15,573 in 1Q25, a variation of 5.4% y/y and -0.7% q/q. The effects of financial instruments for exchange rate hedging on the result totaled R$91.785 million in 2Q25, according to Explanatory Note 23.2 of the Interim Financial Information, and are due to the positions settled in the quarter, which were contracted over the 12 months prior to their settlement. In the consolidated figures for the year to date, the effects of the instruments totaled R$55.015 million. * Weighted average rate Similarly, the outstanding position, according to Note 23.2.1.ii to the Financial Statements, is shown below. * Weighted average rate 1.NET OPERATING REVENUE OperatingIncomeProtectionStrategy-hedgeaccounting The company may contract additional cash flow protection, as provided for in its Financial Risk ManagementPolicy, always backed by future export revenues, as their probability evolves and assuming a defined timehorizon of up to 12 months. For the purposes of cash flow hedging, we emphasize that its objective is to protectthe operating result and reduce volatility, and under no circumstances may derivative financial instruments becontracted for speculative purposes. 17 - Source: Central Bank of Brazil - Average Ptax for the periods reported 23 Management Report | 2Q25 NOR (Million R$)2Q252Q24Chg. % y/y1Q25Chg. % q/qVolume (Thousand Tons)1,2281,244(1.3%)1,243(1.2%)Net Operational Revenues15,36514,9302.9%15,512(1.0%)Average Price (NOR)12.5112.004.2%12.480.2%Build-up of Derivatives Instruments Settled in 2Q25 2Q243Q244Q241Q252Q25Cummulative Notional Exposure (US$ Million)4884349454594Average Strike Price (BRL/USD)* 5.475.616.016.005.95Derivatives Instruments by Expiry Date (Million US$) 3Q254Q251Q262Q26Notional to be settled in each period 5182099742Strike Price (BRL/USD)*6.016.336.426.16 1T24 Relatório da Administração In the year-on-year comparison, we observed an increase of 3.8% in unit costs in the accounting view, and 6.1% in the managerial view, in which we eliminated the effects of Türkiye's hyperinflation: i)the increase in the cost of consumption of grains and oils (corn+27.7% y/y and soybean oil +28.6% y/y18); ii)the increase in production costs on the Turkish platform, with effectsmainly related to the inflationary environment, union readjustmentsand grain consumption; iii)the effects of inflation on supplies and services (IPCA +5.35%19); 2.COSTS, EXPENSES E OTHER OPERATING RESULTS CostsofGoodSold(COGS) 18 - Variation in the 6-month moving average of grain and oil prices, 2Q25 x 2Q24. Source: Bloomberg and Cepea/ESALQ. 19 - 12-month accumulated variation. Source: IBGE - Brazilian Institute of Geography and Statistics 20 - Variation in Embrapa's cost of production index (ICP Chicken and ICP Pork), publicly available at www.embrapa.br. 21 - Source: Bloomberg, CEPEA-Esalq, SECEX and IBGE. Price of whole chicken and pork carcass in relation to the cost of feed adjusted for the chicken and pork cycle. iv)the effect of the sales mix and the greater volume of raw material purchases from third parties to meet thegrowing demand for processed products. The impacts described above were partially mitigated by the BRF+ efficiency program savings. In the quarterly comparison, we can see a reduction of 0.5% in unit cost in the accounting view and 0.3% in the managerial view, mainly due to the sales mix between markets during the second quarter. We observed a reduction in the sector's cost of production in June when analyzing the ICP Embrapa20 theoretical cost index , mainly influenced by the reduction in the cost of grains at current prices. Despite this improvement in costs, there was a decrease in the profitability of chicken producers and an increase in the profitability of swine producers21, both driven by the price level of in natura proteins. 24 Management Report | 2Q25COGS (Million R$)2Q252Q24Chg. % y/y1Q25Chg. % q/qCost of Goods Sold(11,271)(11,000)2.5%(11,459)(1.6%)COGS/kg (9.18) (8.84)3.8% (9.22)(0.5%)Cost of Goods Sold (Managerial)(11,311)(10,799)4.7%(11,477)(1.5%)COGS/kg (Managerial) (9.21) (8.68)6.1% (9.24)(0.3%) 95 100 168 Jan/19 Mar/19 May/19 Jul/19 Sep/19 Nov/19 Jan/20 Mar/20 May/20 Jul/20 Sep/20 Nov/20 Jan/21 Mar/21 May/21 Jul/21 Sep/21 Nov/21 Jan/22 Mar/22 May/22 Jul/22 Sep/22 Nov/22 Jan/23 Mar/23 May/23 Jul/23 Sep/23 Nov/23 Jan/24 Mar/24 May/24 Jul/24 Sep/24 Nov/24 Jan/25 Mar/25 May/25 Evolution of Embrapa Cost Index and Chicken Producers' Margin (Base 100) Chicken Producers Margin Embrapa's Chicken Cost Index 130 100 162 Jan/19 Mar/19 May/19 Jul/19 Sep/19 Nov/19 Jan/20 Mar/20 May/20 Jul/20 Sep/20 Nov/20 Jan/21 Mar/21 May/21 Jul/21 Sep/21 Nov/21 Jan/22 Mar/22 May/22 Jul/22 Sep/22 Nov/22 Jan/23 Mar/23 May/23 Jul/23 Sep/23 Nov/23 Jan/24 Mar/24 May/24 Jul/24 Sep/24 Nov/24 Jan/25 Mar/25 May/25 Evolution of Embrapa Cost Index and Swine Producers' Margin (Base 100) Swine Producers' Margin Embrapa's Swine Cost Index Jun/25 Jun/25 1T24 Relatório da Administração OperationalExpenses *Includes impairment of accounts receivable of -R$1.4 million in 2Q25 (R$20.9 million in 2Q24 and R$4.8 million in 1Q25) In 2Q25, the percentage indicator of operating expenses over netrevenue in the year-on-year comparison varied by +0.8 p.p. in theaccounting view and +0.7 p.p. in the managerial view, explained byhigher disbursements i) with marketing and trade marketingactions, to boost sales, such as the Mother's Day campaigns inBrazil and hamburgers in Chile, both by Sadia, ii) with logisticsexpenses, mainly warehousing, iii) with personnel, as a result ofsalary readjustments, to compensate inflation, and a higherheadcount, to support the significant increase in sales volume andactive clients, iv) with exchange rate variations due to thedevaluation of the real against the dollar, and v) with provisionsfor variable remuneration as a result of achieving targets. In the quarterly comparison, there was a variation of +1.5 p.p. in the accounting view and +1.4 p.p. in themanagerial view. This result is mainly influenced by higher spending on marketing and trade marketing,warehousing logistics costs and provisions for variable remuneration as a result of achieving targets. For further details on this item, see Explanatory Note 26 to the Interim Financial Information. This performance is mainly explained by civil and tax contingencies (mainly related to adherence to the REFIS of the state of Minas Gerais to settle a contingency with an impact of R$93 million) and net losses on the disposal and write-off of fixed assets and investments, partially offset by the recovery of expenses, among other net effects. For further details on this item, see Explanatory Note 26 to the Interim Financial Information. OtherOperatingResults 3.NET FINANCIAL RESULT 25 Management Report | 2Q25 Operating Expenses (Million R$)2Q252Q24Chg. % y/y1Q25Chg. % q/qSelling Expenses*(2,117)(1,959)8.1%(1,949)8.7%% of the NOR (13.8%)(13.1%)(0.7) p.p.(12.7%)(1.1) p.p.General and Administrative Expenses(278)(251)10.6%(217)27.9%% of the NOR (1.8%)(1.7%)(0.1) p.p.(1.4%)(0.4) p.p.Operating Expenses(2,395)(2,210)8.4%(2,166)10.6%% of the NOR (15.6%)(14.8%)(0.8) p.p.(14.1%)(1.5) p.p.Other Operating Results (Million R$)2Q252Q24Chg. % y/y1Q25Chg. % q/qOther Operating Results(118)(13)n.m.(4)n.m.% of the NOR (0.8%)(0.1%)(0.7) p.p.(0.0%)(0.7) p.p.Financial Results (Million R$)2Q252Q24Chg. % y/y1Q25Chg. % q/qFinancial Income37327436.3%3662.0%Interest on cash and cash equivalents and revenue from securities31819563.4%3151.0%Interest and other financial revenues5579(30.5%)518.2%Financial Expenses(1,005)(887)13.3%(921)9.0%Interests on loans and borrowings(492)(479)2.7%(472)4.3%Interest on contingencies, leasing and actuarial liabilities(137)(128)7.3%(129)6.0%Adjustment to present value(248)(140)77.3%(197)25.5%Other financial expenses(127)(140)(9.1%)(122)4.2%Exchange variation and derivative results, net(65)223(129.1%)98(166.0%)Exchange rate variation on monetary assets and liabilities(33)127(125.7%)(12)(168.1%)Exchange variation on derivatives(50)131(138.1%)51(197.9%)Interest and fair value of derivatives(27)3(974.1%)1(3303.1%)Net monetary gains or losses45(38)216.5%59(23.5%)Net Financial Results(696)(390)(78.4%)(457)52.2%Exchange variation on monetary assets and liabilities and derivatives(82)258(131.9%)39(313.4%) 1T24 Relatório da Administração The main components of the net financial result have been grouped into the following categories: FinancialRevenues Total Financial Revenues in 2Q25 amounted to R$373 million, R$99 million higher than in 2Q24. The combination of the higher cash position and the rise in the CDI rate in the period (CDI 3.3% in 2Q25 vs. 2.5% in 2Q2422) contributed to the increase in interest income on cash and investments in the period. This increase, however, is mitigated by the reduction in interest on taxes to be recovered. FinancialExpenses They derive from the effect of the following accounts: Interest on loans and financing:Interest expenses increased by R$13 million in 2Q25 compared to 2Q24. The effect of the rise in the CDI rate on interest (CDI 3.3% in 2Q25 vs. 2.5% in 2Q2423) was mitigated by the amortization of bilateral debts, which reduced charges. Adjustment to present value (AVP): The increase in 2Q25 compared to 2Q24 is mainly due to the increase in the balance of accounts payable throughout the year, driven by greater investments in capex and the increase in the cost of the DI futures curve. The AVP refers to the financial charge associated with the payment terms of customer and supplier accounts, with a corresponding entry in gross profit. Interest on contingencies and leases: Higher expenses of R$9 million in 2Q25 compared to the same period last year, mainly due to higher interest on tax and lease contingencies. Otherfinancialexpenses:Includes bank fees, expenses with assignment and credit insurance, taxes on financial income, provision for discount of tax credits, among other effects. The R$13 million reduction in expenses in 2Q25 compared to 2Q24 was mainly due to the positive effect of the fair value of restricted shares of R$28 million, mitigated by higher expenses with provisions for tax credit write-offs of R$9 million and with taxes on financial income of R$8 million. MonetaryandExchangeVariationsandResultsofDerivatives: The Company has financial assets and liabilities denominated in foreign currencies, whose exchange rate variations affect the financial result. The Company contracts derivative financial instruments to hedge this net foreign exchange exposure, as per Explanatory Note 23.2.1 to the Interim Financial Information. In 2Q25, the net effect of exchange rate variations on monetary assets and liabilities and derivatives to hedge the balance sheet's exchange rate exposure totaled -R$82 million and monetary gains related to Türkiye's hyperinflation had a total impact of +R$45 million. 26 Management Report | 2Q25 22 -Source: B3 –Brasil, Bolsa, Balcão 23 -Source: B3 –Brasil, Bolsa, Balcão 4.NET INCOME (LOSS) The Company reported a net profit of R$735 million in 2Q25 versus R$1,094 million in the same period of the previous year, essentially reflecting the increase in operating and financial expenses. Net Income (Million R$)2Q252Q24Chg. % y/y1Q25Chg. % q/qNet Income7351,094(32.8%)1,185(38.0%)Net Margin (%)4.8%7.3%(2.5) p.p.7.6%(2.9) p.p. 1T24 Relatório da Administração 5.ADJUSTED EBITDA 27 6.CASH FLOW *The free cash flow statement above does not follow the same methodology as the accounting cash flow statement presented in the FinancialStatements, see reconciliation on page 28 of this report. Management Report | 2Q25 EBITDA (Million R$)2Q252Q24Chg. % y/y1Q25Chg. % q/qConsolidated Net Income7351,094(32.8%)1,185(38.0%)Income Tax and Social Contribution149219(32.0%)242(38.4%)Net Financial69639078.4%45752.2%Depreciation and Amortization8848662.0%8385.4%EBITDA 2,4642,569(4.1%)2,723(9.5%)EBITDA Margin (%)16.0%17.2%(1.2) p.p.17.6%(1.5) p.p.Effects of Hyperinflation38(66)157.8%3024.2%Income from Associates and Joint Ventures13.6(85.8%)(2)128.4%Climatic Events - RS (0)113n.m.1(119.4%)Adjusted EBITDA2,5022,621(4.5%)2,753(9.1%)Adjusted EBITDA Margin (%)16.3%17.6%(1.3) p.p.17.7%(1.5) p.p.Free Cash Flow (Million R$)2Q252Q241Q25LTMAdjusted EBITDA2,5022,6212,75311,026Working Capital848(461)1,1221,761Δ Accounts Receivable966(1,056)7381,473Δ Inventories(582)(124)45(841)Δ Suppliers4647183391,129Other variations(808)255(258)(316)Cash Flow from Operating Activities2,5422,4143,61712,471CAPEX with IFRS16(1,081)(784)(975)(3,836)Cash Flow from Operations with Capex1,4611,6302,6428,635M&A and Sale of Assets(219)29(509)(754)Cash Flow from Investments(1,301)(756)(1,484)(4,590)Cash - Financial Results(249)(193)(245)(1,022)Interest Income2941942871,106Interest Expenses(261)(350)(539)(1,777)Derivatives (cash)27(48)5225FX Variation on Cash and Cash Equivalents(212)467(406)(137)Cash Flow from Financing Activities(400)69(852)(1,805)Free Cash Flow8421,7281,2826,076Shares Buyback/IoC0(213)(417)(2,501)Free Cash Flow8421,5158653,575New Debt Amortizations1,0071,23415(265)Cash Variations1,8492,7508803,310 Free cash flow reached R$842 million in 2Q25, R$886 million less than in the same period of the previous year. Disregarding disbursements with M&A and exchange rate effects, the amount would have reached R$1,281 million, representing a cash conversion of 51%. Below is a breakdown of the components of the free cash flow. FreeCashFlow 1T24 Relatório da Administração Operating cash generation totaled R$2,542 million in 2Q25, a result driven by solid operating performance and the shortening of the financial cycle, which favored more efficient cash conversion. The amount shows an increase of R$128 million compared to 2Q24, a variation that was partially offset by the higher disbursement with variable remuneration in 2Q25. The company's cash conversion cycle ended 2Q25 at -13.3 days, down 18.5 days on 2Q24. The maintenance of a negative financial cycle has been favored by the higher balance payable to suppliers, longer terms for Capex and good efficiency in inventory turnover despite the challenges posed by market restrictions associated with avian flu. Operating Cash Flow and Cash Conversion Cycle 28 Among the main projects in 2Q25 are the following: Cash flow from investments totaled R$1,301 million in 2Q25, an increase of R$545 million compared to the same period last year due to higher Capex disbursements of R$ 297 million and the acquisition of the plant in Henan (China). In the quarter, R$449 million was earmarked for growth, efficiency and support; R$ 394 million for biological assets and R$239 million for leasing and others, as shown in the table below: InvestmentCashFlow • Strategic investments in production units are underway, according to the established schedules, with afocus on market diversification, commercial flexibility and expanding the supply of processed products.These initiatives are aimed at both domestic and foreign markets, with the Kezad (United Arab Emirates),Concórdia (SC), Lucas do Rio Verde (MT) and Videira (SC) units standing out. Growth Management Report | 2Q25 *Amount referring to the acquisition of the factory in Henan, China, represented by fixed assets, cash and taxes to be recovered. CAPEX (Million R$)2Q252Q24Chg. % y/y1Q25Chg. % q/qGrowth(133)(14)850.0%(88)51.1%Efficieny(59)(53)11.3%(56)5.4%Support(257)(139)84.9%(239)7.5%Biological Assets(394)(345)14.2%(367)7.4%Commercial Lease and Others(239)(233)2.6%(225)6.2%Total(1,081)(784)37.9%(975)10.9%Total M&A and sales of assets(219)29(869.4%)(509)(56.9%)Total - CAPEX + M&A and sales of assets(1,301)(756)72.2%(1,484)(12.4%) 1T24 Relatório da Administração • Improved agricultural efficiency and reduced costs at feed mills, especially at the Toledo - PR, Arroio doMeio - RS and Francisco Beltrão - PR units; • Projects in poultry factories to improve the yield of raw materials and the implementation of dynamicweighing systems and post-evisceration washing cabins, especially at the production units in Toledo - PR,Capinzal - SC and Dourados - MS; • Projects at pork factories to improve the yield of raw materials, especially at the production units in Toledo -PR, Rio Verde - MT and Uberlândia - MG; • Projects in industrialized products factories to improve the yield of finished products, especially at theproduction units in Tatuí - SP, Concórdia - PR and Toledo - PR; • Progress in the digital journey with tools for efficient management in logistics, sales and planningprocesses; and • Efficiency of energy resources at the Chapecó - SC and Toledo - PR plants. Efficiency • Adaptation of units and offices to standards and legislation, renewal of operating licenses, replacement ofdepreciated assets, recovery of damaged assets and improvements in working conditions, in particularinvestments in the following units: Uberlândia - MG, Carambeí - PR, Concórdia - SC, Videira - SC, Toledo - PR,Serafina Correia - RS and Lajeado - RS. • Continued renewal of licenses needed to maintain the Company's activities and update management andoperational support resources related to Information Technology; and • Maintenance of forestry and poultry transport operations. Support 29 *Composed of Loans and Net Derivative Instruments. *The cash considered is composed of Cash and Cash Equivalents, Financial Investments, and Restricted Cash. 7.INDEBTEDNESS In 2Q25, net interest expenses and financial expenses with a cash effect showed a reduction of R$135 million compared to 2Q24, driven mainly by the higher liquidity position between periods and the drop in interest paid, reflecting the lower exposure of debt indexed to the CDI, in addition to the amortization of bilateral debts concentrated in the second half of 2024. This gain was mitigated by the increase in the adjustment to present value of the balance payable to suppliers. When incorporating the exchange rate effects of balance sheet hedging derivatives and the Exchange Variation in Cash and Cash Equivalents, the financial cash flow had a cash consumption of R$400 million in 2Q25, R$469 million lower than in the same period of the previous year. FinancialCashFlow Management Report | 2Q25 CurrentNon-currentTotalTotalΔ %TotalΔ %Local Currency(398)(9,339)(9,737)(8,613)13.1%(10,590)(8.1%)Foreign Currency*(1,374)(9,073)(10,448)(10,969)(4.8%)(11,490)(9.1%)Gross Debt(1,772)(18,413)(20,185)(19,582)3.1%(22,079)(8.6%)Cash Investments**Local Currency8,748838,8317,07624.8%8,02610.0%Foreign Currency6,3612576,6186,5241.4%5,12129.2%Total Cash Investments15,10934015,44913,60013.6%13,14717.5%Net Debt13,337(18,072)(4,735)(5,982)(20.8%)(8,932)(47.0%)At 06.30.2024At 03.31.2025Debt (Million R$)At 06.30.2025 1T24 Relatório da Administração 30 Rating Amortizations for the quarter totaled R$317 million, allocated to (i) bilateral lines - R$287 million; and (ii) working capital lines - R$31 million. Borrowings in 2Q25 totaled R$1,325 million, mainly due to the issue of R$1.25 billion in Agribusiness Receivables Certificates - CRA in April 2025 and working capital lines of R$0.5 billion. The average term of debt ended 2Q25 at 8.2 years, an increase of 0.1 year compared to 1Q25. Net debt totaled R$4,735 million in 2Q25, a reduction of R$1,247 million compared to 1Q25. The company's net leverage, measured by the ratio of net debt to Adjusted EBITDA over the last twelve months, reached 0.43x in 2Q25 versus 0.54x in 1Q25 (equivalent leverage in USD reached 0.53x in 2Q25 versus 0.69x in 1Q25). After the end of the quarter, on August 5, 2025, the company concluded its seventh issue of simple, non-convertible, unsecured debentures, in up to 5 series, for private placement, in the total amount of R$2,000 million, with series maturing in 4, 7, 10, 15 and 20 years. The debentures were privately placed with ECO Securitizadora de Direitos Creditórios do Agronegócio S.A. (“Securitizadora”), within the scope of its 403rd issue of agribusiness receivables certificates (“CRA”), backed by agribusiness credit rights, for distribution to the general public. This transaction is in line with the company's debt profile management strategy, optimizing the term/cost ratio of its debt instruments. The proforma calculation of the average debt maturity, considering this new issue, is 8.3 years. In the normal course of business, the Company may consider, from time to time, the repurchase of any of its senior unsecured notes (bonds), debentures or CRA, subject to market conditions, as an alternative to reduce the cost of capital and better equalize the exchange rate indexation of the debt profile. Such repurchases can also take place, through open market transactions. In accordance with applicable laws, such transactions may be carried out at any time and the Company has no obligation to acquire any specific amount of the aforementioned securities. The Company reiterates that it has no financial leverage restrictive covenants and reaffirms its commitment to disciplined management of its capital structure, liquidity, and leverage. Management Report | 2Q25AgencyDomesticOutlookGlobalOutlookStandard & Poor´sAAA(bra)StableBB+StableFitch RatingsAAA(bra)StableBB+PositiveMoody‘s Investors Service--Ba2Stable 1T24 Relatório da Administração ClimateChange Recognition on the 2024 “List A” of Supplier Engagement by the CDP - Carbon Disclosure Project - demonstrating the company's leadership in the management of greenhouse gas (GHG) emissions. WasteandPackaging Qualy offsets the emissions from the “Tudo de Qualy Pra Você” digital campaign and receives the Carbon Free seal for the first time, in line with the brand's strategy, which already recycles the equivalent of 100% of the plastic used in its packaging. ESG HIGHLIGHTS Management Report | 2Q25 SocialResponsibility In April, the BRF Institute promoted the “Educação para o Futuro” (Education for the Future) volunteering campaign. The initiative directly benefited more than 5,000 people through the revitalization of educational spaces and dynamics with young people about their professional future and the job market. Governance Publication of the 5th Transparency and Integrity Report, highlighting the commitment to ethics and compliance. 31 1T24 Relatório da Administração ANNEXES ConsolidatedIncomeStatement 32 Management Report | 2Q25 Statements of Income (Loss) (Million R$)2Q252Q24Chg. % y/y1Q25Chg. % q/qNet Operating Revenues15,36514,9302.9%15,512(1.0%)Cost of Sales(11,271)(11,000)2.5%(11,459)(1.6%)% of the NOR(73.4%)(73.7%)0.3 p.p.(73.9%)(0.5) p.p.Gross Profit4,0943,9304.2%4,0531.0%% of the NOR26.6%26.3%0.3 p.p.26.1%0.5 p.p.Operating Expenses(2,395)(2,210)8.4%(2,166)10.6%% of the NOR(15.6%)(14.8%)(0.8) p.p.(14.0%)1.6 p.p.Operating Income1,6981,720(1.2%)1,887(10.0%)% of the NOR11.1%11.5%(0.5) p.p.12.2%(1.1) p.p.Other Operating Results(118)(13)(821.9%)(4)(2866.0%)Income from Associates and Joint Ventures(1)(4)85.9%2(128.3%)EBIT1,5801,703(7.2%)1,885(16.2%)% of the NOR10.3%11.4%(1.1) p.p.12.1%(1.9) p.p.Net Financial Expenses(696)(390)(78.4%)(457)(52.2%)Income before Taxes8841,313(32.7%)1,427(38.1%)% of the NOR5.8%8.8%(3.0) p.p.9.2%(3.4) p.p.Income Tax and Social Contribution(149)(219)(32.0%)(242)38.4%% of Income before Taxes(16.9%)(16.7%)(0.2) p.p.(17.0%)(0.1) p.p.Net Income - Continued Op.7351,094(32.8%)1,185(38.0%)% of the NOR 4.8%7.3%(2.5) p.p.7.6%(2.9) p.p.EBITDA2,4642,569(4.1%)2,723(9.5%)% of the NOR16.0%17.2%(1.2) p.p.17.6%(1.5) p.p.Adjusted EBITDA 2,5022,621(4.5%)2,753(9.1%)% of the NOR16.3%17.6%(1.3) p.p.17.7%(1.5) p.p. 1T24 Relatório da Administração ConsolidatedBalanceSheet 33 Management Report | 2Q25 Statements of Financial Position - Assets (Million R$)06.30.2512.31.24Current AssetsCash and cash equivalents14,14611,165Marketable securities948894Trade receivables3,9036,075Notes receivable2332Inventories6,9776,728Biological assets3,0502,845Recoverable taxes2,5692,214Derivative financial instruments39163Prepaid expenses350176Advances215114Restricted cash15276Assets held for sale 23Other current assets275244Total Current Assets32,86430,830Non-Current AssetsLong-term assets9,2299,974Marketable securities275324Trade and other receivables2223Notes receivable88Recoverable taxes4,3124,545Deferred income taxes1,7352,331Judicial deposits376422Biological assets1,8601,787Derivative financial instruments422252Restricted cash6561Other non-current assets153221Investments596129Property, Plant and Equipment15,17415,068Intangible6,4306,673Total Non-Current Assets31,42931,8450Total Assets64,29362,675 1T24 Relatório da Administração ConsolidatedBalanceSheet 34 Management Report | 2Q25 Balance Sheet - R$ Million06.30.2512.31.24Current LiabilitiesLoans and borrowings2,0431,230Trade accounts payable14,64713,558Lease liability9391,015Payroll, related charges and employee profit sharing1,3561,557Taxes payable8311,142Derivative financial instruments121383Provision for tax, civil and labor risks731693Employee benefits9095Customer advances369476Other current liabilities538672Total Current Liabilities21,66520,821Non-Current LiabilitiesLoans and borrowings18,70319,510Trade accounts payable112Lease liability3,1782,978Taxes payable 7178Provision for tax, civil and labor risks1,5441,539Deferred income taxes232Employee benefits454467Derivative financial instruments132236Other non-current liabilities421533Other non-current liabilities24,52625,355Total Liabilities46,19146,176EquityCapital13,34913,349Capital reserves2,7632,763Profit reserves2,0792,079Other equity transactions(164)(142)Accumulated gains1,8650Treasury shares(1,724)(1,346)Other comprehensive loss(1,323)(1,619)Attributable to controlling shareholders16,84615,086Non-controlling interests1,2551,414Total Equity18,10216,4990Total Liabilities and Equity64,29362,675 1T24 Relatório da Administração The table below shows the reconciliation between the accounting cash flow view and the managerial free cash flow (page 20 of this report). 1The variations in Cash Accounting and Managerial Cash have different methodologies for determining the group of accounts that make up cash: Cash Accounting variation considers the variation in the Cash and Cash Equivalents account, while Managerial Cash variation considers the variation in the accounts of Cash and Cash Equivalents, Financial Investments, and Restricted Cash. Consolidated Statement of Cash Flows 35 Management Report | 2Q25 Statements of Cash Flows (R$ Milions)2Q252Q241Q25Income (loss) from continuing operations7351,0941,185Adjustments to reconcile net income to cash generated1,9751,6011,672Changes in balance sheet balances495(375)816Trade accounts receivable1,098(787)883Inventories(583)22(3)Biological assets - current(103)67(144)Trade accounts payable8232380Cash generated by operating activities3,2052,3203,674Interest received215137154Other operating assets and liabilities(845)(191)(214)Net cash provided by operating activities2,5742,2663,613Additions to property, plant and equipment(568)(138)(328)Additions to biological assets - non-current(417)(360)(390)Proceeds from disposals of property, plant, equipments and investment8292Additions to intangible assets(110)(67)(48)Other assets and liabilities from investing activities212(840)(538)Net cash used in investing activities(875)(1,376)(1,302)Proceeds from debt issuance1,3252,068109Repayment of debt(317)(882)(94)Payment of interest(247)(234)(486)Payment of interest derivatives - fair value hedge(14)(68)(53)Buyback Program0(213)(417)Payment of lease liabilities(213)(220)(209)Net cash provided by (used in) financing activities533451(1,149)Effect of exchange rate variation on cash and cash equivalents(138)549(275)Net increase (decrease) in cash and cash equivalents2,0941,891887Reconciliation of Consolidated Cash Flow vs. Managerial Cash Flow 2Q25Variation of accounting cash 2Q25APV e DerivativesCommercial leasingFX Variation on CashFX Variation on Cash EquivalentsInterest Income and Others(+) Funding and AmortizationWithdrawals and Applications(+) Shares Buyback/IoCManagerial cash variation1 2Q25(-) Funding and Amortization(+) Shares Buyback/IoCFree Cash Flow 2Q25Cash Flow from Operanting Activities2,574 134 - - - (165) - (1) - 2,542 - - 2,542 Cash Flow from Investments(875) - (213) - - (0) - (212) - (1,301) - - (1,301) Cash Flow from Financing Activities 533 (134) 213 (138) (73) 207 (1,007) - - (400) 1,007 - 608 Exchange variation on cash and cash equivalents(138) - - 138 - - - - - - - - - Total2,094 - - - (73) 42 (1,007) (213) - 842 1,007 - 1,849 1T24 Relatório da Administração ABOUT US 1T24 Relatório da Administração FULLY INTEGRATED BUSINESS MODEL FROM FARM TO TABLE 37 ~8.4k integrated producers responsible for the farming of the animals. Vertical integration system in line with BRF’s Global Animal Welfare Program. +9.000 kton of feed and Premix produced in 24 units in Brazil. +530,000 deliveries per month. ~60,000 containers exported to ~120 countries. +440k customers. ~100,000 employees worldwide. Grain Feed Farm Facility Distribution Point of sale 1 2 3 4 5 6 Present in ~120 countries. Market share 40.6% in Brazil 36.2% in the Gulf countries 24.1% in Türkiye 7 Consumer Poultry ~6MM heads/day of slaughtering capacity. Pork ~40k heads/day of slaughtering capacity. Modern industrial platform, strategically located close to the main producing regions of grains and consumer markets. 45 industrial facilities around the globe, producing +5mm tons of food per year. Largest corn and soybean meal consumer in Brazil with 100% traceability of grain suppliers. Management Report | 2Q25 1T24 Relatório da Administração Global cost-efficient operation, with modern and strategically located facilities 101 45 INDUSTRIAL FACILITIES DISTRIBUTION CENTERS OUR GLOBAL OPERATIONS 38 Management Report | 2Q25 1T24 Relatório da Administração PET IN NATURA INGREDIENTS PROCESSED FOODS Poultry and Pork Ready meals, sausages, franks, cold cuts and spreads Viscera flour, fats and hydrolyzed Dry and moist food and snacks for dogs and cats BRF has a broad portfolio with synergies among segments OUR PRODUCTS 39 Management Report | 2Q25 1T24 Relatório da Administração Perdigão is the MOST PRESENT FOOD BRAND in Brazilian homes Qualy is a TOP-SELLING MARGARINE BRAND In Brazil MOST VALUABLE AND PREFERRED BRAZILIAN BRAND by consumers in the food sector Sadia and Qualy are TOP OF MIND BRANDS for +10 consecutive years TOP OF MIND PREFERRED BRANDS IN BRAZIL WINNING together, in Christmas dinners, Smoked sausage, and Margarines MARKET SHARE in Processed products 40.6% 40 Management Report | 2Q25 1T24 Relatório da Administração DISTRIBUTION CONTROL in key markets VAST PORTFOLIOOF BRANDS with high share of processed food LEADERSHIP OVER DECADES IN THE HALAL MARKET 36.2% In the GCC 24.1% in Türkiye MARKET SHARE 41 Management Report | 2Q25 1T24 Relatório da Administração Fabio Luis Mendes MarianoChief Financial and Investor Relations Officer Leticia VaccaroE-mail: leticia.vaccaro@brf.com Fernanda CoutinhoE-mail: fernanda.coutinho@brf.com Leonardo SquariziE-mail: leonardo.squarizi@brf.com Bruno CunhaE-mail: bruno.cunha@brf.com João ValeE-mail: joao.vale@brf.com IR CONTACT Investor Relations Website:https://ri.brf-global.com/ Investor Relations Phone: +55 (11) 23225377 E-mail: acoes@brf.com Press E-mail: imprensa@brf.com 42 Management Report | 2Q25

 

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1.Company’s Operations

BRF S.A. (“BRF”), and its subsidiaries (collectively the “Company”) is a publicly traded company, listed on the segment Novo Mercado of Brasil, Bolsa, Balcão (“B3”), under the ticker BRFS3, and listed on the New York Stock Exchange (“NYSE”), under the ticker BRFS. The Company’s registered office is at 475 Jorge Tzachel Street, Fazenda District, Itajaí - Santa Catarina and the main business office is in the city of São Paulo. The Company’s direct parent company is Marfrig Global Foods S.A. (“Marfrig”).

BRF is a Brazilian multinational company, with global presence, which owns a comprehensive portfolio of products, and it is one of the world’s largest companies of food products. The Company operates by raising, producing and slaughtering poultry and pork for processing, production and sale of fresh meat, processed products, pasta, margarine, pet food and others.

The Company holds as main brands Sadia, Perdigão, Qualy, Chester®, Kidelli, Perdix, Banvit, Biofresh and Gran Plus, present mainly in Brazil, Türkiye and Middle Eastern countries.

 

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1.1.Equity interest
              % Equity interest
Entity     Main activity   Country   06.30.25   12.31.24
Direct subsidiaries                
BRF Energia S.A.     Commercialization of eletric energy   Brazil     100.00     100.00
BRF Foods UK Ltd.     Administrative and marketing services   England     100.00     100.00
BRF GmbH     Holding   Austria     100.00     100.00
BRF Pet S.A.     Industrialization, commercialization and distribution of feed and nutrients for animals   Brazil     100.00     100.00
MBR Investimentos Ltda.     Holding, management of companies and assets   Brazil     100.00     100.00
Sadia Alimentos S.A.U.     Holding   Argentina     100.00     100.00
Sadia Uruguay S.A.     Import and commercialization of products   Uruguay     100.00     100.00
                   
Indirect subsidiaries                  
Al Khan Foodstuff LLC ("AKF") (a)   Import, commercialization and distribution of products   Oman    70.00    70.00
Al-Wafi Al-Takamol International for Foods Products     Import and commercialization of products   Saudi Arabia     100.00     100.00
Al-Wafi Food Products Factory Sole Propr. LLC     Import, export, industrialization and commercialization of products   UAE (1)     100.00     100.00
Badi Ltd.     Holding   UAE (1)     100.00     100.00
Banvit Bandirma Vitaminli Yem Sanayii AS     Import, industrialization and commercialization of products   Turkey    91.71    91.71
BRF Arabia Holding Company JSC     Holding   Saudi Arabia    70.00    70.00
BRF Arabia Food Industry Ltd.     Preparation and preservation of meat, fish, crustaceans and mollusks and production of oils and animal and plant based fats   Saudi Arabia     100.00     100.00
BRF Foods GmbH (d)   Industrialization, import and commercialization of products   Austria   -     100.00
BRF Foods LLC     Industrialization, import and commercialization of products   UAE (1)     100.00     100.00
BRF Global Company Nigeria Ltd.     Marketing and logistics services   Nigeria     100.00     100.00
BRF Global Company South Africa Proprietary Ltd.     Administrative, marketing and logistics services   South Africa     100.00     100.00
BRF Global GmbH     Holding and trading   Austria     100.00     100.00
BRF Japan KK     Marketing and logistics services, import, export, industrialization and commercialization of products   Japan     100.00     100.00
BRF Korea LLC     Marketing and logistics services   Korea     100.00     100.00
BRF Kuwait Food Supply Management Co. (a)   Import, commercialization and distribution of products   Kuwait    49.00    49.00
BRF Shanghai Management Consulting Co. Ltd.     Provision of consultancy and marketing services   China     100.00     100.00
BRF Shanghai Trading Co. Ltd.     Import, export and commercialization of products   China     100.00     100.00
BRF (Henan) Food Co. Ltd. (g)   Import, production and commercialization of products   China     100.00   -
BRF Singapore Foods PTE Ltd.     Administrative, marketing and logistics services   Singapore     100.00     100.00
Eclipse Holding Cöoperatief U.A.     Holding   The Netherlands     100.00     100.00
Federal Foods LLC (a)   Import, commercialization and distribution of products   UAE (1)    49.00    49.00
Federal Foods Qatar (a)   Import, commercialization and distribution of products   Qatar    49.00    49.00
Hercosul Alimentos Ltda. (c)   Manufacturing and sale of animal feed   Brazil   -     100.00
Hercosul Distribuição Ltda. (c)   Import, export, wholesale and retail sale of food products for animals   Brazil   -     100.00
Hercosul International S.R.L.     Manufacturing, export, import and sale of feed and nutrients for animals   Paraguay     100.00     100.00
Hercosul Soluções em Transportes Ltda.     Road freight   Brazil     100.00     100.00
Joody Al Sharqiya Food Production Factory LLC     Import and commercialization of products   Saudi Arabia     100.00     100.00
Mogiana Alimentos S.A.     Manufacturing, distribution and sale of Pet Food products   Brazil     100.00     100.00
One Foods Holdings Ltd.     Holding   UAE (1)     100.00     100.00
ProudFood Lda.     Import and commercialization of products   Angola     100.00     100.00
Sadia Chile SpA     Import, export and commercialization of products   Chile     100.00     100.00
TBQ Foods GmbH     Holding   Austria    60.00    60.00
                   
Affiliated                  
Addoha Poultry Company (e)   Industrialization and commercialization of products   Saudi Arabia    26.00   -
Al Samina Agricultural Production Company (e)   Broiler chicken farming   Saudi Arabia     100.00   -
PlantPlus Foods LLC (f)   Management of assets   Brazil    30.00   -
PlantPlus Foods Brasil (f)   Management of assets   Brazil   0.10   -
Potengi Holdings S.A. (b)   Holding   Brazil    50.00    50.00
PR-SAD Administração de Bem Próprio S.A.     Management of assets   Brazil    33.33    33.33

 

(1) UAE – United Arab Emirates.

(2) EUA – United States of America.

(a)For these entities, the Company has agreements that ensure full economic rights, except for AKF, in which the economic rights are of 99%.
(b)Affiliate with subsidiary of Auren Energia S.A. in which the economic participation is 24% (note 12).
(c)On January 2, 2025, the subsidiaries Hercosul Alimentos Ltda. and Hercosul Distribuição Ltda. were merged into Mogiana Alimentos S.A.
(d)On February 1, 2025, BRF Foods GmbH was merged into BRF GmbH.
(e)On January 14, 2025, a shareholders' agreement was signed, ensuring effective participation in the administration of Addoha. Al Samina is a wholly owned subsidiary of Addoha.
(f)On January 23, 2025, the transfer of shares in PlantPlus LLC and PlantPlus Brasil to BRF was finalized.
(g)On April 30, 2025, the transaction was completed, which was not characterized as a business combination, since it exclusively involved the acquisition of assets.

 

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Location of Subsidiaries, Affiliates and Join Ventures

1.2.Incident at the plant in Carambeí - PR

On August 1st, 2024, the Company informed its shareholders and the market in general that a fire had occurred in part of its Carambeí - PR unit. There were no fatalities and all employees were safe. In the same month, the Company was able to gradually resume operations at the unit.

 

Due to the fire, the Company recognized in its results for the period expenses mainly related to losses in the production process, expenses for structural and equipment recovery, as well as partial reimbursement of the claim received from insurers, generating a practically neutral impact for the period ended on June 30, 2025.

The Company has insurance policies for events of this nature and continue in the process of regulating this claim in Carambeí - PR.

1.3.Acquisition of stake in Addoha Poultry Company

On October 31, 2024, BRF Arabia Holding Company (“BRF Arabia”), joint venture 70% owned by BRF and 30% by Halal Products Development Company, a wholly owned subsidiary of the Public Investment Fund da Arabia Saudita (“PIF”), has entered into a binding agreement to acquire 26% da Addoha Poultry Company, a company that operates in the slaughtering of poultry in the Kingdom of Saudi Arabia.

 

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On January 14, 2025, a shareholders' agreement was signed between BRF Arabia and the current shareholders of Addoha, ensuring effective participation in the company's management and allowing the know-how of BRF and HPDC to contribute to maximizing synergies between the entities. On this date, the acquisition was concluded, and of its total value of SAR316,200 (equivalent to R$511,105), R$188,351 was recorded as investment and R$322,754 was recorded as goodwill for future profitability expectations.

Since Addoha is an associate of BRF Arabia, and due to the significant influence in this associate, the investment was accounted for using the equity method.

1.4.Acquistion of processed foods factory in Henan Province in China

On November 20, 2024, BRF GmbH, a wholly owned subsidiary of the Company, has signed a binding agreement with Henan Best Foods Co. Ltd., a subsidiary of the OSI Group, a U.S.-based company specializing in food processing, to acquire a processed foods factory in Henan Province, China.

 

On April 30, 2025, the transaction was closed for a total amount of USD 44,986 (equivalent to BRL 254,630 on that date), using funds previously recorded as Restricted Cash. This did not constitute a business combination, as it involved only an asset acquisition. On June 23, 2025, BRF GmbH carried out a capital increase of CNY 70,000 (equivalent to BRL 53,816) to support the expansion of this new operation.

 

The factory has two food processing lines with an annual capacity of 28,000 tons and the potential to expand to two additional lines. The acquisition solidifies the company's presence in the Chinese market and consolidates its ability to serve customers in the region.

1.5.Term sheet Gelprime

On December 17, 2024, MBR Investimentos Ltda. (“MBR”), a company wholly controlled by BRF, signed a term sheet with Viposa Participações Ltda., Indústria e Comércio de Couros Britali Ltda., and Vanz Holding Ltda., current holders of 100% of the capital stock of Gelprime Indústria e Comércio de Produtos Alimentícios Ltda. (“Gelprime”), a company engaged in the production, commercialization, and distribution of gelatin and collagen through the processing of animal-origin raw materials.

 

The term sheet sets forth the main terms and conditions for the acquisition, by MBR, of a 50% equity interest in Gelprime (“Acquisition”) for R$312,500, subject to potential adjustments.

 

Following the term sheet, on March 14, 2025, an Investment Agreement was executed, additionally providing that the acquisition will be structured through a combination of share subscription and purchase and sale transactions, which may be subject to adjustments. Depending on Gelprime’s performance over the next three years, the purchase price may be increased by up to USD13,600, equivalent to R$78,082 on the date of the Investment Agreement. On the same date, BRF made an advance for future capital increase (AFAC) to MBR in the amount of R$60,000 (note 12.1), which was used to make an initial advance for the full acquisition amount.

 

 

 

46 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

 

The acquisition was approved without reservations by the Administrative Council for Economic Defense (“CADE”) on June 23, 2025. Completion of the transaction is subject to the fulfillment of certain customary conditions precedent, including the conversion of Gelprime into a joint stock company.

 

On August 1, 2025, the First Amendment to the Investment Agreement was signed, through which MBR subscribed one hundred new shares of Gelprime (already converted into a joint stock company) as a capital increase, in the amount of R$3, and made a payment of R$100,457 as an AFAC, which will be converted into capital stock on the acquisition closing date.

 

1.6.Factory in Jeddah/Saudi Arabia

On April 21, 2025, the Board of Directors approved an investment of approximately USD 160,000, equivalent to R$919,840, for the construction of a new processed products factory in Jeddah, Saudi Arabia. The investment will be made by BRF Arabia Holding Company, a subsidiary of the Company and the vehicle for the joint venture with Halal Products Development Company, a wholly owned subsidiary of the Public Investment Fund (PIF). On June 17, 2025, BRF Arabia Holding Company carried out a capital increase of SAR 150,000 (equivalent to R$224,159 on that date) in BRF Arabia Food Industry Ltd., the subsidiary that will own the new factory, thereby continuing the Company’s expansion process in the Halal market.

The new factory will have a production capacity of approximately 40,000 tons per year of processed poultry and beef products. The project will allow BRF to increase its local production from 17,000 to up to 57,000 tons per year, capturing the growing demand in the regional market and from global accounts, as well as solidifying its strategic partnership with Saudi Arabia.

1.7.Merger of Shares between Marfrig and BRF

On May 15, 2025, Marfrig and BRF (together, the “Companies”) announced to their shareholders and the market in general the execution and approval, in meetings held by the Boards of Directors of both Companies, of the “Protocol and Justification for the Merger of Shares Issued by BRF S.A. by Marfrig Global Foods S.A.” (the “Protocol”), which sets forth the terms and conditions applicable to the merger of shares issued by BRF by Marfrig (the “Transaction”).

On June 17 and July 11, 2025, BRF informed its shareholders and the market in general that the Brazilian Securities and Exchange Commission (“CVM”), in response to requests for interruption and postponement of the Extraordinary General Meeting (“EGM”) initially scheduled for June 18, 2025 and rescheduled for July 14, 2025, granted postponement requests for a period of 21 days from the date of availability of the additional information requested. Accordingly, BRF made the requested additional information available and convened the EGM for August 5, 2025, to deliberate on the Transaction.

On August 5, 2025, as disclosed in a Joint Material Fact, through EGMs held on the same date, the shareholders of Marfrig and BRF approved, among other matters, the merger of shares issued by BRF by Marfrig. With this step completed, the 30-day legal period for exercising the Right of Withdrawal begins, applicable to shareholders of both Companies. The conclusion of the Transaction remains subject to final approval by CADE.

1.8.Seasonality

During the months of November and December of each year, the Company is impacted by seasonality in the Brazil operating segment due to Christmas and New Year’s Celebrations. The products that are relevant contributors are: Türkiye, Chester®, ham and pork cuts (hind leg/pork loin).

 

In the International operating segment, seasonality is due to Ramadan, which is the holy month of the Muslim calendar. The beginning of Ramadan depends on the beginning of the moon cycle and, in 2025, occurred between February 28, 2025, and March 29, 2025.

 

47 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
2.Basis of preparation and presentation of interim financial information

The Parent Company’s and Consolidated interim financial information were prepared in accordance with i) the accounting practices adopted in Brazil, which include those included in Brazilian corporate legislation and the pronouncements, guidelines, and technical interpretations issued by the Accounting Pronouncements Committee (“CPC”) and approved by the Federal Accounting Council (“CFC”) and the Securities and Exchange Commission (“CVM”), in accordance with CPC 21 (R1) – Interim Financial Statements, and ii) international financial reporting standards (“IFRS”), IAS 34 – Interim Financial Reporting, issued by the International Accounting Standards Board (“IASB”). IFRS comprises International Accounting Standards, interpretations by the International Financial Reporting Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC).

In accordance with OCPC 07 - Disclosure in General Purpose Accounting and Financial Reports, all relevant information specific to the financial statements, and only that information, is being disclosed, and corresponds to that used by Management in its management.

The Parent Company’s and Consolidated interim financial information are expressed in thousands of Brazilian Reais (“R$”), unless otherwise stated. For disclosures of amounts in other currencies, the values are also expressed in thousands, unless otherwise stated.

The preparation of the Parent Company’s and Consolidated interim financial information requires management to make judgments, use estimates, and adopt assumptions that affect the reported amounts of revenues, expenses, assets, and liabilities, as well as the disclosures of contingent liabilities. The uncertainty inherent to these judgments, assumptions, and estimates could result in material adjustments to the carrying amount of certain assets and liabilities in future periods.

Any judgments, estimates, and assumptions are reviewed at each reporting period.

The Parent Company’s and Consolidated interim financial information were prepared based on the recoverable historical cost, except for the items maintained at fair value as described in note 3.4 of the Financial Statements for the year ended on December 31, 2024.

The Company prepared its Parent Company’s and Consolidated interim financial information under the going concern assumption and disclosed all relevant information in its explanatory notes, in order to clarify and complement the accounting basis adopted.

3.Summary of material accounting policies

The individual and consolidated interim financial information, in this case, interim financial information, is intended to provide an update based on the latest complete annual financial statements. Therefore, it focuses on new activities, events, and circumstances and does not repeat previously disclosed information, except when management deems it relevant to maintain certain information.

The interim financial information presented here was prepared based on the material accounting policies and methods of calculating estimates adopted in the preparation of the annual financial statements for the year ended December 31, 2024, in a uniform manner for all entities of the group and consistent across all periods presented.

The material accounting policies applied in the preparation of this interim financial information have been included in the respective explanatory notes and are consistent across all periods presented.

 

48 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
3.1.Hyperinflationary Economies

The Company has subsidiaries in Argentina and Türkiye, countries considered to have hyperinflationary economies.

For the Turkish subsidiary, the inflation rate for the period ended June 30, 2025 was 16.7%. In the consolidated information for the period ended June 30, 2025, the hyperinflation adjustment impacted the Income (Loss) before Financial Results in R$(119,112) (R$(22,244) in the same period of the previous year), and a revenue was recognized that impacted the Financial Result in R$98,212 (R$98,223 in the period ended June 30, 2024) and the Net Income (Loss) in R$30,972 (R$57,125 in the same period of the previous year).

For the Argentine subsidiary, the inflation rate for the period ended June 30, 2025 was 15,0%, and the hyperinflation adjustment impacted the Income (Loss) before Financial Results in R$222 (R$(383) in the same period of the previous year), the Financial Result in R$5,166 (R$(2,842) in the period ended June 30, 2024) and the Net Income (Loss) in R$(2,391) (R$(7,714) in the same period of the previous year).

3.2.Standards issued but not yet effective

The following amendments to standards have been issued and approved by the IASB and CVM but are not yet effective for the fiscal year 2025:

·CVM Resolution No. 193/23, with amendments introduced by CVM Resolution No. 219/24 and CVM Resolution No. 227/25 - Provides for the preparation and disclosure of the sustainability-related financial information report, based on the international standard issued by the International Sustainability Standards Board (“ISSB”) – Implementation on January 1, 2026;

 

·Amendments to IFRS 18: Presentation and Disclosure in Financial Statements – Implementation on January 1, 2027;

 

·Amendments to IFRS 19: Subsidiaries without Public Accountability: Disclosures – Implementation on January 1, 2027;

 

·Tax reform (Complementary Law No. 214/2025) – As a result of Constitutional Amendment No. 132/2023, which changed the National Tax System, Complementary Law No. 214/2025 was enacted, introducing the regulation of the Tax Reform on Consumption. The new legislation establishes the CBS, IBS, and IS taxes, with the progressive replacement of the current PIS, COFINS, ICMS, and ISS taxes by 2033. The transition schedule provides for the replacement of PIS and COFINS by CBS in 2027 and the beginning of the replacement of ICMS and ISS by IBS in 2029.

The main impacts relate to the elimination of tax benefits and the introduction of full non-cumulative taxation, allowing for the full appropriation of credits on purchases of goods and services, without the limitations of the current tax system. Given this scenario, a multidisciplinary technical group was formed with a focus on:

-Assess fiscal impacts on costs, expenses, and pricing;
-Map operational, systemic, and contractual adjustments;
-Ensure compliance with new legislation;
-Identify opportunities for tax and strategic efficiency.

 

The group's proactive approach aims to ensure a safe and competitive transition, in line with the Company's governance and sustainability guidelines.

 

49 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

The Company and its subsidiaries are monitoring potential impacts that these new standards may bring to the Group and do not expect significant effects, except for IFRS 18 and CVM Resolution No. 193/23.

4.Cash and cash equivalents
  Average rate (1)   Parent Company   Consolidated
    06.30.25   12.31.24   06.30.25   12.31.24
Cash and bank accounts                  
Brazilian reais -   348,673   269,699   379,658   296,529
Saudi riyal -     -     -   306,545   256,879
U.S. dollar -     81,135   162,389   560,562   630,990
Euro -    4,260    4,603    34,949     16,995
Turkish lira -     -     -   3,455    6,348
Other currencies -     15,511     78   289,427   170,621
      449,579   436,769   1,574,596   1,378,362
Cash equivalents                  
In Brazilian reais                  
Investment funds  14.90    7,757    4,727   7,757    4,727
Off shore note (3) -     -     -    -   1,501,608
Senior financial note   15.17   512,802     -   512,802     -
Bank deposit certificates  15.05   6,711,955   3,545,946   6,879,725   3,716,958
      7,232,514   3,550,673   7,400,284   5,223,293
In U.S. Dollar                  
Term deposit 4.93     -     -   4,023,087   2,721,270
Overnight -     14,886    1,582    14,886    1,582
Other currencies -                
Term deposit (Saudi riyal) 5.64     -     -   308,521   959,103
Term deposit (2) -     -     -   824,829   881,754
        14,886    1,582   5,171,323   4,563,709
      7,696,979   3,989,024    14,146,203     11,165,364
(1)Weighted average annual rate.
(2)Amounts are substantially denominated in Turkish Lira (TRY) at a weighted average annual rate of 48.88% (49.57% on December 31, 2024).
(3)Represent an investment in a financial institution on the international market with a balance in Brazilian reais (R$), indexed to the DI.

 

 

 

50 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

 

5.Marketable secutities
  WAM (1)   Currency   Average rate (2)   Parent Company   Consolidated
        06.30.25   12.31.24   06.30.25   12.31.24
Fair value through other comprehensive income                          
National treasury notes (5) 8.30    R$     11.90   910,485   859,029   910,486   859,029
Equity securities (3) -    USD    -   -   -    13,643     15,481
              910,485   859,029   924,129   874,510
Fair value through profit and loss                          
Financial treasury bills 0.67    R$     12.13     37,277     35,031    37,277     35,031
Investment funds - FIDC II 1.08    R$    -     18,600     18,450    18,600     18,450
Other 0.08    R$    -   -   -     20     20
                55,877     53,481    55,897     53,501
Amortized cost                          
Sovereign bonds and other (4) 4.81    USD    6.81   -   -   243,252   289,880
              966,362   912,510   1,223,278   1,217,891
Current             947,762   894,060   947,783   894,080
Non-current (6)               18,600     18,450   275,495   323,811
(1)Weighted average maturity in years.
(2)Weighted average annual rate.
(3)It’s comprised of Aleph Farms Ltd. stocks.
(4)It’s comprised of private securities and sovereign securities of the Angola Government and are presented net of expected credit losses in the amount of R$23,433 (R$22,530 on December 31, 2024). The amounts are denominated in Bonds in U.S. Dollar at a weighted average annual rate of 6.81% (U.S. Dollar 6.82 on December 31, 2024).
(5)FVTOCI: Fair Value through Other Comprehensive Income R$33,435.
(6)Maturity until May of 2035.

 

On June 30, 2025, the amount of R$25,867 (R$69,753 on December 31, 2024) classified as cash and cash equivalents and marketable securities were pledged as guarantee, with no use restrictions, for future contracts traded on B3.

 

 

51 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
6.Trade Accounts and Notes Receivable
    Parent Company   Consolidated
    06.30.25   12.31.24   06.30.25   12.31.24
Trade accounts receivable                
Domestic market                
Third parties    937,169   2,285,150   1,034,710   2,420,942
Related parties    118,184     51,834   9,435     16,402
      1,055,353   2,336,984   1,044,145   2,437,344
Foreign market                 
Third parties     2,168,754   2,906,380   3,516,759   4,395,420
Related parties     2,609,839   3,299,865    45,288     30,924
      4,778,593   6,206,245   3,562,047   4,426,344
                 
( - ) Adjustment to present value ("APV")     (22,472)    (28,340)   (33,527)    (39,291)
( - ) Expected credit losses   (593,659)     (659,030)    (647,360)     (726,764)
      5,217,815   7,855,859   3,925,305   6,097,633
                 
Current     5,196,089   7,834,133   3,903,457   6,075,013
Non-current   21,726     21,726    21,848     22,620
                 
                 
Notes receivable   49,481     61,628    49,481     61,628
( - ) Adjustment to present value ("APV")    (3,733)     (5,910)     (3,733)     (5,910)
( - ) Expected credit losses     (14,723)    (15,381)   (14,723)    (15,381)
    31,025     40,337    31,025     40,337
                 
Current   22,596     32,302    22,596     32,302
Non-current (1)     8,429    8,035   8,429    8,035
(1)On June 30, 2025, the weighted average maturity is 2 years.

For sales in the external market on credit, the Company has insurance, letters of credit, and other guarantees in the amount of R$1,024,043 (R$1,441,599 on December 31, 2024), which cover 61.2% (78.8% on December 31, 2024) of this modality.

 

52 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

The Company performs credit assignments with no right of return to the BRF Clients’ Credit Rights Investment Fund (“FIDC BRF II”), which has the sole purpose to acquire credit rights arising from commercial transactions carried out between the Company and its clients in Brazil.

On June 30, 2025, FIDC BRF II has an outstanding balance of R$961,811 (R$959,434 on December 31, 2024) related to such credit rights, which were ceased to be recognized in the Company’s statement of financial position when the credits were sold.

On June 30, 2025, other receivables are mainly represented by receivables from the sale of farms and various properties not linked to production.

The movements of the expected credit losses are presented below:

 

    Parent Company   Consolidated
    06.30.25   06.30.25
Beginning balance     (659,030)    (726,764)
(Additions) reversals    2,236    (3,329)
Write-offs    4,824    17,344
Exchange rate variation     58,311    65,389
Ending balance     (593,659)    (647,360)

The aging of trade accounts receivable is as follows:

 

    Parent Company   Consolidated
    06.30.25   12.31.24   06.30.25   12.31.24
Not overdue     5,097,927   7,749,078   3,484,165   5,904,865
Overdue                
01 to 60 days     127,619   120,451   439,632   203,179
61 to 90 days   6,405    5,050    11,747    9,228
91 to 120 days   4,148    711   4,292    2,891
121 to 180 days   7,417    934    17,414    9,307
181 to 360 days    10,360     23,131    20,924     41,254
More than 360 days     580,070   643,874   628,018   692,964
(-) Adjustment to present value ("APV")   (22,472)    (28,340)   (33,527)    (39,291)
(-) Expected credit losses    (593,659)     (659,030)    (647,360)     (726,764)
      5,217,815   7,855,859   3,925,305   6,097,633

 

53 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
7.Inventories

 

    Parent Company   Consolidated
    06.30.25   12.31.24   06.30.25   12.31.24
Finished goods   2,305,902   1,553,208   4,230,411   3,574,304
Work in progress   363,033   354,152   411,090   409,037
Raw materials   868,894   1,373,016   1,057,398   1,589,282
Packaging materials   150,564   116,731   189,669   154,696
Secondary materials   718,116   571,303   776,250   621,207
Supplies   127,403   128,313   197,591   190,041
Imports in transit   152,559   235,125   153,720   236,453
Other     81,986     68,521   101,509     68,528
(-) Adjustment to present value ("APV") (1)     (135,741)     (110,867)    (140,645)     (115,546)
    4,632,716   4,289,502   6,976,993   6,728,002

(1)The adjustment refers to the counter-entry of the adjustment of present value from trade accounts payable and is carried out for cost according to inventories turnover.

 

 

The movements of the reduction to net realizable value of inventories, for which the additions, reversals, and write-offs were recorded against the Cost of Goods Sold, are presented in the table below:

 

    Parent Company
    06.30.25
    Realizable value through sale   Impaired inventories   Obsolete inventories   Total
Beginning balance    (1,256)     (17,739)   (664)     (19,659)
Additions    (3,481)     (26,188)   (9,071)     (38,740)
Reversals     4,546   -   -     4,546
Write-offs   -   25,359     2,829   28,188
Exchange rate variation   -   -   -   -
Ending balance    (191)     (18,568)   (6,906)     (25,665)

 

    Consolidated
    06.30.25
    Realizable value through sale   Impaired inventories   Obsolete inventories   Total
Beginning balance    (1,403)     (24,861)     (1,017)   (27,281)
Additions     (10,371)     (39,183)   (15,275)   (64,829)
Reversals     7,291   -    -   7,291
Write-offs   -   41,520   8,021    49,541
Exchange rate variation     490     166     67   723
Ending balance    (3,993)     (22,358)     (8,204)   (34,555)
8.Biological Assets

The live animals are represented by poultry and pork and segregated into consumables and animals for production. The roll-forward of the biological assets during the period is presented below:

 

54 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
    Parent Company
    06.30.25
    Current   Non-current
    Live animals    
    Total   Live animals   Forests   Total
Beginning balance   2,659,317   1,215,393   470,338     1,685,731
Additions/Transfer     12,680,694   357,157    47,203     404,360
Changes in fair value    1,762,405     (187,057)    -    (187,057)
Harvest     -     -   (33,556)   (33,556)
Write-off     -     -     (5)     (5)
Transfer between current  and non-current   114,447     (114,447)    -    (114,447)
Transfer to inventories   (14,328,563)     -    -    -
Exchange variation     -     -    -    -
Monetary correction by Hyperinflation     -     -    -    -
Ending balance   2,888,300   1,271,046   483,980     1,755,026

 

    Consolidated
    06.30.25
    Current   Non-current
    Live animals            
    Total   Live animals   Forests   Total
Beginning balance    2,844,633   1,316,899   470,338     1,787,237
Additions/Transfer     13,961,309   391,077     47,203     438,280
Changes in fair value     2,020,835     (209,302)     -    (209,302)
Harvest     -     -    (33,556)   (33,556)
Write-off     -     -   (5)     (5)
Transfer between current  and non-current    114,745     (114,745)     -    (114,745)
Transfer to inventories    (15,849,798)     -     -    -
Exchange variation    (42,406)    (22,970)     -   (22,970)
Monetary correction by Hyperinflation    796     15,129     -    15,129
Ending balance    3,050,114   1,376,088   483,980     1,860,068

The change in the biological asset includes depreciation of breeders and depletion of forests in the amount of R$656,745 in the Parent Company and R$727,654 in the Consolidated (R$671,937 in the Parent Company and R$749,373 in the Consolidated on June 30, 2024).

 

The estimated quantities of live animals on June 30, 2025, are 186,354 thousand heads of poultry and 4,764 thousand heads of pork at the Parent Company (177,889 thousand heads of poultry and 4,866 thousand heads of pork on December 31, 2024). In the Consolidated, there are 208,400 thousand heads of poultry and 4,764 thousand heads of pork (201,241 thousand heads of poultry and 4,866 thousand heads of pork on December 31, 2024).

The Company has forests pledged as collateral for financing and tax and civil contingencies on June 30, 2025, in the amount of R$59,357 in the Parent Company and in the Consolidated (R$70,025 in the Parent Company and in the Consolidated on December 31, 2024).

 

55 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
9.Recoverable Taxes
    Parent Company   Consolidated
    06.30.25   12.31.24   06.30.25   12.31.24
Recoverable ICMS and VAT    1,901,826    1,900,655   2,506,572    2,473,731
Recoverable PIS and COFINS    2,139,450    2,031,212   2,148,907    2,040,746
Recoverable IPI    1,175,370    1,176,162   1,186,625    1,177,941
Recoverable INSS    510,157    422,154   510,157    422,163
Recoverable income taxes    462,307    430,454   567,985    683,051
Other recoverable taxes    105,294    102,546   105,484    102,951
(-) Impairment   (143,240)   (140,750)     (144,203)   (140,951)
     6,151,164    5,922,433   6,881,527    6,759,632
                 
Current    1,859,625    1,393,036   2,569,198    2,214,186
Non-current    4,291,539    4,529,397   4,312,329    4,545,446

  

9.1ICMS – tax on movement of goods and services and VAT – value added taxes

As result of the activity, the Company generates recoverable ICMS balances that are offset against ICMS payables arising from sales in the domestic market or that are transferred to third parties.

The Company has recoverable ICMS balances in the States of Paraná, Santa Catarina, Mato Grosso do Sul, Minas Gerais and Amazonas, which will be realized in the short and long term, based on the recoverability study reviewed and approved by the Management.

In other jurisdictions outside Brazil, value added taxes (VAT) are due in regular operations of the Company with goods and services, with expectations of achievement in the short and long term.

On June 20, 2024, the Company entered into an agreement to purchase ICMS credits from Marfrig, in the state of São Paulo, in the amount of R$113,000, with a discount applied in line with market conditions. Additionally, on October 16, 2024, an agreement was signed for the additional acquisition of up to R$350,000 in credits for the same tax and calculated in the same state, also with a discount applied in line with the market. The use will be made according to the Company's monthly calculation in the state, with total compensation expected by October 2025. As of June 30, 2025, a total of R$375,000 had been transferred (R$256,000 on December 31, 2024), and the Company offset the amount of R$308,123 related to these credits (R$178,076 on December 31, 2024).

9.2PIS and COFINS – social integration plan and contribution for social security

The accumulated recoverable PIS and COFINS balances arise from taxes on raw material purchases subsequently used in the production of exported products or products for which sale is not taxed, as well as recoverable taxes on commercial and labor expenses. The realization of these balances usually occurs through the offsetting with taxes payable on sales of taxed products in the domestic market, with other federal taxes and social security contributions payable, or even, if necessary, through refund or reimbursement requests.

 

56 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

As described in note 13, the Company re-opted for the treatment of PIS and COFINS credits on fixed assets and, therefore, reclassified the amount of R$219,884 from that group of accounts to the group of Taxes Recoverable.

As of June 30, 2025, the updated balance of the processes related to the exclusion of ICMS from the PIS and COFINS calculation basis recognized by the Company is R$1,625,527 (R$1,720,431 as of December 31, 2024). The monetary update of balances is recognized against Net financial income (expenses).

9.3IPI – industrialized product tax

The Company has recognized tax assets as a result of gains from lawsuits related to IPI, especially “crédito prêmio”. The balance referring to these assets in the Parent Company and Consolidated on June 30, 2025, is R$1,224,081 (R$1,185,146 on December 31, 2024), of which R$1,162,991 (R$1,162,991 on December 31, 2024) is recorded as Recoverable Taxes and the remainder, referring to cases in which the government will reimburse in cash, recorded under other current assets in the amount of R$38,935 and non-current assets in the amount of R$22,155 (R$22,155 on December 31, 2024). The monetary update of balances is recognized against Net financial income (expenses).

9.4Income taxes

The accumulated recoverable income taxes mainly arise, from withholding taxes on securities, interest and prepayments of income tax and social contribution in Brazil. These amounts are realized through the offset with federal taxes and contributions payable.

9.5Realization of Brazilian federal tax credits

The Company used recoverable balances of PIS, COFINS, IPI, and Other to offset federal taxes payable such as INSS, Income Taxes, and Other in the amount of R$619,041 for the period ended on June 30, 2025 (R$728,107 for the year ended on December 31, 2024), preserving its liquidity and optimizing its capital structure.

 

57 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
10.Deferred Income Taxes
10.1Breakdown
    Parent Company   Consolidated
    06.30.25   12.31.24   06.30.25   12.31.24
Assets                
Tax losses carryforward   2,504,706   2,504,706   2,543,414   2,543,398
Negative calculation basis (social contribution)   901,694   901,694   915,629   915,623
                 
Temporary differences - Assets                
Provisions for tax, civil and labor risks   401,608   392,062   408,343   394,642
Expected credit losses    32,313   209,378    37,976   215,626
Impairment on tax credits    54,799     54,853    54,799     54,853
Provision for other obligations    58,017     86,636    68,272   110,059
Write-down to net realizable value of inventories   8,786    6,842    10,517     10,248
Employees' benefits plan   111,177   106,134   135,092   133,783
Lease basis difference   294,588   256,005   296,161   256,418
Share-based payment    27,404     26,967    27,404     26,967
Adjustment to the expcted annual rate   446,572     -   446,572     -
Other temporary differences   116,821   243,259   172,399   299,549
    4,958,485   4,788,536   5,116,578   4,961,166
                 
Temporary differences - Liabilities                
Goodwill amortization basis difference    (323,005)     (323,005)    (335,549)     (337,038)
Depreciation (useful life) basis difference    (1,142,326)     (1,096,046)    (1,164,746)     (1,118,093)
Business combination (1)    (954,563)     (959,663)    (954,563)     (959,663)
Monetary correction by Hyperinflation    -     -   (10,116)    (46,319)
Unrealized gains on derivatives, net    (244,118)     (120,326)    (244,118)     (120,326)
Unrealized fair value gains, net   (93,352)    (26,986)   (93,352)    (29,977)
Other - exchange rate variation    (493,016)     -    (493,016)     -
Other temporary differences    (108,549)    (24,197)    (109,028)    (20,671)
     (3,358,929)     (2,550,223)    (3,404,488)     (2,632,087)
                 
Total deferred taxes   1,599,556   2,238,313   1,712,090   2,329,079
                 
Total Assets   1,599,556   2,238,313   1,734,724   2,331,012
Total Liabilities    -     -   (22,634)     (1,933)
    1,599,556   2,238,313   1,712,090   2,329,079
(1)The deferred tax liability on business combination is substantially represented by the allocation of goodwill to property, plant and equipment, brands and contingent liabilities.

As of June 30, 2025, the Parent Company has accumulated tax losses of Income Tax (IRPJ) and negative bases of Contributions on Net Profit (CSLL) in Brazil, which at current tax rates represent R$6,223,814 (R$6,266,431 as of December 31, 2024). In Consolidated, tax losses at local income tax rates represent the amount of R$6,346,440 (R$6,380,870 as of December 31, 2024). Of these amounts, R$3,406,400 in the Parent Company and R$3,459,043 in Consolidated (R$3,406,400 in the Parent Company and R$3,459,021 in Consolidated as of December 31, 2024) are recognized in assets, according to the expectation of recoverability over a ten-year period.

The roll-forward of deferred income taxes, net, is set forth below:

 

    Parent Company   Consolidated
    06.30.25   06.30.24
Beginning balance   2,238,313    2,329,079
Deferred income taxes recognized     (322,435)   (278,046)
Deferred income taxes recognized in other comprehensive income     (316,322)   (316,321)
Other     -     (22,622)
Ending balance   1,599,556    1,712,090

 

58 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
10.2Effective income tax rate reconciliation
     Parent Company      Consolidated
    2025   2024     2025   2024
    Apr - jun   Jan - jun   Apr - jun   Jan - jun     Apr - jun   Jan - jun   Apr - jun   Jan - jun
                                   
Income (loss) before taxes    942,899     2,269,746    1,076,577     1,570,744      884,047    2,311,294    1,313,211   2,027,879
Nominal tax rate   34%   34%   34%   34%     34%   34%   34%   34%
Expenses at nominal tax rates   (320,586)    (771,714)   (366,036)    (534,053)     (300,576)   (785,840)   (446,492)     (689,479)
                                   
Adjustments to income taxes                                  
Income from associates and joint ventures     (50,451)    (235,059)    800,747     1,106,286     (174)     440   (1,228)     (2,046)
Tax rate, GAAP and permanent differences on the results of a subsidiary    -     -    -     -     (112,478)   (154,163)    258,221   477,392
Difference of functional currency of foreign subsidiaries    -     -    -     -      -    -    -     30,588
Effect of exchange rate variation on assets and liabilities of subsidiaries    -     -    -     -      109,477     (27,244)    493,826   493,826
Deferred tax assets not recognized    -     -   (514,489)    (665,832)       (15,588)     (29,541)   (514,609)     (665,930)
Interest on taxes   12,590    23,808   25,788    45,821     14,127   26,778   25,846     45,919
Tax paid on international subsidiaries    -    45,376    -     -      -   45,376    -   -
Adjustment for the expected tax rate in the fiscal year   93,721     446,572    -     -     93,721    446,572    -   -
Other permanent differences   62,448    86,327     (34,835)   (30,221)     62,365   86,319     (34,883)    (30,513)
    (202,278)    (404,690)     (88,825)   (77,999)     (149,126)   (391,303)   (219,319)     (340,243)
                                   
Effective rate   21.5%   17.8%   8.3%   5.0%     16.9%   16.9%   16.7%   16.8%
                                   
Current tax     (86,034)   (82,255)     (14,885)   (14,682)       (70,092)   (113,257)   (187,250)     (315,108)
Deferred tax   (116,244)    (322,435)     (73,940)   (63,317)       (79,034)   (278,046)     (32,069)    (25,135)

 

Income tax returns in Brazil are subject to review by the tax authorities for a period of five years from the date of their delivery. The Company may be subject to additional collection of taxes, fines and interest as a result of these reviews. The results obtained by subsidiaries abroad are subject to taxation in accordance with the tax laws of each country.

11.Judicial Deposits

The roll-forward of the judicial deposits is set forth below:

    Parent Company
    06.30.25
    Tax   Labor   Civil, commercial and other   Total
Beginning balance     186,872    156,833     64,334    408,039
Additions    55   41,066   1,289   42,410
Release in favor of the Company     (24,336)     (12,170)     (140)     (36,646)
Release in favor of the counterparty    (8,045)     (52,134)     (2,413)     (62,592)
Interest     6,032     7,175   1,859   15,066
Exchange variation   -   -    -   -
Ending balance     160,578    140,770     64,929    366,277

 

59 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
    Consolidated
    06.30.25
    Tax   Labor   Civil, commercial and other   Total
Beginning balance   192,057     160,130     70,146     422,333
Additions     84    41,403    1,300   42,787
Release in favor of the Company   (24,336)   (12,132)   (140)     (36,608)
Release in favor of the counterparty     (8,045)   (52,144)   (8,181)     (68,370)
Interest   6,134   7,410    1,848   15,392
Exchange variation    -     (7)     -    (7)
Ending balance   165,894     144,660     64,973     375,527
12.Investments
12.1Composition and roll-forward of the investments
    Parent Company   Consolidated
    06.30.25   12.31.24   06.30.25   12.31.24
Investments   12,943,262     13,925,136   595,178   128,699
Investment in subsidiaries   12,815,865     13,796,437     -   -
Investments in associates and joint ventures    127,397   128,699   595,178   128,699
Other investments     583    583   583    584
    12,943,845     13,925,719   595,761   129,283

 

60 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

The roll-forward of the direct investments in subsidiaries and affiliates of the Parent Company is set forth below:

      Income (loss) for the year   Capital transaction    Other    
  Beginning balance (12.31.24)   Income (loss) from associates and joint ventures   Advance for future capital increase   Acquisition (sale) of equity interest   Other comprehensive income   Constitution (reversal) of provision for loss   Ending balance (06.30.25)
Direct subsidiaries                          
BRF Energia S.A.  12,979    532     -     -     -   -   13,511
BRF Pet S.A. 1,287,674    (82,086)     -     -    (17,171)     -     1,188,417
BRF GmbH   12,437,503   (615,602)     -     -   (324,459)     -   11,497,442
BRF Foods UK Ltd 1,999    499     -     -     (75)     -     2,423
MBR Investimentos 6,259    183     60,000     -     -     -   66,442
Sadia Alimentos S.A.U. 2,024   (1,308)     -     -    1,625     -     2,341
Sadia Uruguay S.A.  46,274   (244)     -     -   (1,773)     -   44,257
                           
Indirect subsidiaries  -     -     -     -     -     -   -
Hercosul International S.R.L. 1,006    2     -     -   (662)     -     346
Proudfood Ltd. 719   54     -     -     (87)     -     686
Sadia Chile SpA   55     10,924     -     -    2,922    (13,901)   -
                           
Affiliated                          
Potengi Holdings S.A. 120,616   (4,107)     -     -     -     -     116,509
PR-SAD Adm. Bem próprio S.A. 8,083     -     -     -     -     -     8,083
PlantPlus Foods LLC  -   (202)     -    2,922   80     -     2,800
PlantPlus Foods Brasil  -   (1)     -   17     (11)     -     5
                           
   13,925,191   (691,356)     60,000    2,939   (339,611)    (13,901)   12,943,262

 

On June 30, 2025, these subsidiaries and affiliates do not have any restriction to amortize their loans or advances to the Company.

 

61 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
13.Property, plant and equipment

The roll forward of fixed assets, which includes the right-of-use balances (note 17.1), is presented below:

      Parent Company
  Average rate (1)   12.31.24   Additions   Disposals   Transfers (2)   06.30.25
Cost                      
Land     535,043     985   (473)    -    535,555
Buildings, facilities and improvements       12,785,804    345,635   (307,189)     167,228     12,991,478
Machinery and equipment     9,653,352   32,454     (33,937)    84,813    9,736,682
Furniture and fixtures     135,632   84   (2,428)   5,024    138,312
Vehicles     147,623    101,639   (2,977)    -    246,285
Construction in progress     599,239    592,010   (322)    (454,191)    736,736
Advances to suppliers       15,204     9,705   -   (16,300)    8,609
        23,871,897    1,082,512   (347,326)    (213,426)     24,393,657
Depreciation                      
Land (3) 5.00%    (17,348)   (2,038)   89    -    (19,297)
Buildings, facilities and improvements 2.85%     (5,352,383)   (416,678)    287,534   2,517     (5,479,010)
Machinery and equipment 5.84%     (5,262,441)   (240,755)   24,471    (6,757)     (5,485,482)
Furniture and fixtures 6.80%    (68,414)   (3,693)     1,658   122    (70,327)
Vehicles 15.07%     (109,293)     (33,530)     2,667    -     (140,156)
      (10,809,879)   (696,694)    316,419    (4,118)    (11,194,272)
        13,062,018    385,818     (30,907)    (217,544)     13,199,385
(1)The weighted average annual rate applicable to right-of-use assets is disclosed in Note 17.1.
(2)Refers to the net transfer of R$795 to intangible assets, R$219,884 related to the re-option of PIS and COFINS credits for recoverable taxes, and R$3,135 of assets held for sale
(3)Land depreciation refers to right-of-use assets (note 17.1). The amount of R$848 of depreciation was recognized in the cost of formation of forests and will be realized in the result according to the depletion.

 

      Consolidated
  Average rate (1)   12.31.24   Additions   Disposals   Transfers (2)   Monetary correction by Hyperinflation   Exchange rate variation   06.30.25
Cost                              
Land     784,718     4,576    (1,290)   -     204     (37,038)   751,170
Buildings, facilities and improvements       13,970,153     537,516   (370,721)     190,021   32,508   (164,107)     14,195,370
Machinery and equipment       10,963,286   81,994     (35,377)   56,002   70,895   (198,150)     10,938,650
Furniture and fixtures     269,845     136    (2,863)     5,799   11,498     (26,308)   258,107
Vehicles     502,545     119,070    (5,914)   15,616     3,898     (46,298)   588,917
Construction in progress     645,621     677,812    (388)   (465,194)    (3,188)    (5,435)   849,228
Advances to suppliers       19,719   18,707   -     (23,489)    (946)    (573)     13,418
        27,155,887     1,439,811   (416,553)   (221,245)     114,869   (477,909)     27,594,860
Depreciation                              
Land (3) 5.00%    (58,976)    (5,052)    89   -     4,308     5,176    (54,455)
Buildings, facilities and improvements 2.99%     (5,779,019)   (468,274)     350,956     (12,722)     8,626   52,484     (5,847,949)
Machinery and equipment 6.09%     (5,846,956)   (277,708)   24,865   12,904     (38,445)   83,106     (6,042,234)
Furniture and fixtures 7.09%     (121,541)    (6,481)     1,969     197    (4,726)   10,138     (120,444)
Vehicles 14.66%     (281,166)     (97,534)     3,716    (4,498)    (178)   24,135     (355,525)
      (12,087,658)   (855,049)     381,595    (4,119)     (30,415)     175,039   (12,420,607)
        15,068,229     584,762     (34,958)   (225,364)   84,454   (302,870)     15,174,253
(1)The weighted average annual rate applicable to right-of-use assets is disclosed in Note 17.1.
(2)Refers to the net transfer of R$8,615 to intangible assets, R$219,884 related to the re-option of PIS and COFINS credits for recoverable taxes, and R$3,135 of assets held for sale.
(3)Land depreciation refers to right-of-use assets (note 17.1). The amount of R$848 of depreciation was recognized in the cost of formation of forests and will be realized in the result according to the depletion.

 

The amount of capitalized borrowing costs during the period ended June 30, 2025 was R$31,381 in the Parent Company and R$31,722 in the Consolidated (R$18,320 in the Parent Company and R$19,246 in the Consolidated in the same period of the previous year) and in the three-month period ended June 30, 2025, it was R$20,409 for the Parent Company and R$20,506 for the Consolidated (R$8,884 for the Parent Company and R$9,423 for the Consolidated in the same period of the previous year).

 

62 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

The weighted average rate used to determine the amount of borrowing costs subject to capitalization during the period ended June 30, 2025 was 8.98% p.a. in the Parent Company and 9.74% p.a. in the Consolidated for the six-month period ended June 30, 2025 (9.28% p.a. in the Parent Company and 11.50% p.a. in the Consolidated in the same period of the previous year).

The book value of the property, plant and equipment items that are pledged as collateral for transactions of different natures are set forth below:

        Parent Company   Consolidated
    Type of collateral   06.30.25   12.31.24   06.30.25   12.31.24
Land   Financial/tax/civil   50,366     62,144    50,366     62,144
Buildings, facilities and improvements   Financial/tax    914,274   947,286   914,274   947,286
Machinery and equipment   Financial/labor/tax/civil    964,823   1,036,448   964,823   1,036,448
Furniture and fixtures   Financial/tax   11,608     11,751    11,608     11,751
Vehicles   Financial/tax   70     82     70     82
         1,941,141   2,057,711   1,941,141   2,057,711

 

14.Intangible assets

The intangible assets roll forward, is set forth below:

      Parent Company
  Average rate (1)   12.31.24   Additions   Disposals   Transfers (2)   06.30.25
Cost                      
Goodwill       1,783,655   -   -    -    1,783,655
Trademarks       1,152,885   -   -    -    1,152,885
Non-compete agreement     12,646     1,127   -    -   13,773
Patents       1,810   -   -    -     1,810
Customer relationship     -   -   -    -   -
Software       587,126   -   (237)     126,848    713,737
Land use license     -   -   -    -   -
Intagible in progress     37,260    123,561   (3,432)    (126,053)   31,336
        3,575,382    124,688   (3,669)   795    3,697,196
Amortization                      
Non-compete agreement 50.12%     (10,844)   (1,711)   -    -     (12,555)
Parents 10.00%    (1,697)     (11)   -    -   (1,708)
Customer relationship -   -   -   -    -   -
Software 40.21%   (369,967)     (75,767)     234    -   (445,500)
Land use license -   -   -   -    -   -
      (382,508)     (77,489)     234    -   (459,763)
        3,192,874   47,199   (3,435)   795    3,237,433
(1)Weighted average annual remaining rate.
(2)Refers to the net transfer of R$795 from property, plant and equipment.

 

63 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

 

      Consolidated
  Average rate (1)   Saldo em
31.12.24		   Additions   Disposals   Transfers (2)   Monetary correction by Hyperinflation   Exchange rate variation   30.06.25
Cost                              
Goodwill       3,771,262    -    -    -    41,586    (217,767)     3,595,081
Trademarks       2,006,266    -    -    -    49,174   (86,601)     1,968,839
Non-compete agreement      57,019   1,127    -    -    -     (4,932)    53,214
Patents     5,386    -    -    -    36    (400)   5,022
Customer relationship       1,654,610    -    -    -    94,295    (251,398)     1,497,507
Software       700,208    -    (340)     137,942   2,710   (12,376)     828,144
Land use license      -    29,088    -    -    -     (1,144)    27,944
Intagible in progress      37,692     128,019     (3,435)    (129,327)     494   (69)    33,374
        8,232,443     158,234     (3,775)   8,615     188,295    (574,687)     8,009,125
Amortization                              
Non-compete agreement 50.12%   (54,468)     (1,936)    -    -    -   4,932   (51,472)
Parents 8.67%     (4,150)    (173)    -    -     120     253     (3,950)
Customer relationship 7.44%    (1,034,270)   (55,924)    -    -   (60,880)     164,617    (986,457)
Software 39.15%    (466,344)   (82,005)     305    -   2,823   7,709    (537,512)
Land use license 2.66%    -    (126)    -    -    -   2    (124)
       (1,559,232)    (140,164)     305    -   (57,937)     177,513    (1,579,515)
        6,673,211    18,070     (3,470)   8,615     130,358    (397,174)     6,429,610
(1)Weighted average annual remaining rate.
(2)Refers to the net transfer of R$8.615 from property, plant and equipment.

 

64 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
15.Loans and borrowings
  Parent Company
  Charges (p.a.)   Average rate (1)   WAMT (2)   12.31.24   Borrowing   Amortization   Interest paid   Interest accrued (3)   Exchange rate variation   06.30.25
Local currency                                      
Export credit facility CDI    16,56% (13,77% on 12.31.24)      2.20     1,113,401     -     -    (84,151)    88,122   -    1,117,372
Debentures CDI / IPCA / Fixed Rate    12,06% (11,24% on 12.131.24)      6.79     7,226,736    1,159,897     (286,643)     (262,467)     782,174   -    8,619,697
Fiscal incentives Fixed Rate    0,00% (0,00% on 12.31.24)      -   -     -     -   (5)   5   -   -
                8,340,137    1,159,897     (286,643)     (346,623)     870,301   -    9,737,069
Foreign currency                                      
Bonds Fixed Rate + FX (USD)    5,34% (5,34% on 12.31.24)    12.88     7,842,004     -     -     (228,559)     227,710   (940,960)    6,900,195
Export credit facility Fixed Rate + FX (USD)    4,24% (4,24% on 12.31.24)      3.24     1,598,101     -     -    (31,005)    31,180   (189,916)    1,408,360
Advance on foreign exchange contracts Fixed Rate + FX (USD)    0,00% (0,00% on 12.31.24)      -   -     -     -     -    -   -   -
Working capital 0    -     -   -     -     -     -    -   -   -
Debentures Fixed Rate + FX (USD)    6,00% (0,00% on 12.31.24)      9.76   -     27,726     -     -    (1,151)   -   26,575
                9,440,105     27,726     -     (259,564)     257,739   (1,130,876)    8,335,130
              17,780,242    1,187,623     (286,643)     (606,187)     1,128,040   (1,130,876)   18,072,199
                                       
Current               952,565                        895,678
Non-current             16,827,677                       17,176,521
(1)Weighted average annual rate.
(2)Weighted average maturity in years.
(3)Includes interest amounts, monetary restatement of the principal coupon and mark-to-market for debts hedged object to fair value hedge protection.

 

 

 

 

 

 

65 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
  Consolidated
  Charges (p.a.)   Average rate (1)   WAMT (2)   12.31.24   Borrowing   Amortization   Interest paid   Interest accrued (3)   Exchange rate variation   06.30.25
Local currency                                      
Export credit facility CDI    16,56% (13,77% on 12.31.24)     2.20    1,113,400    -    -    (84,151)   88,123     -    1,117,372
Debentures CDI / IPCA / Fixed Rate    12,06% (11,24% on 12.31.24)     6.79    7,226,736   1,159,897    (286,643)     (262,467)    782,174     -    8,619,697
Fiscal incentives Fixed Rate    0,00% (0,00% on 12.31.24)     -   -    -    -   (5)     5     -   -
               8,340,136   1,159,897    (286,643)     (346,623)    870,302     -    9,737,069
Foreign currency                                      
Bonds Fixed Rate + FX (USD)    5,16% (5,16% on 12.31.24)      12.88    9,601,353    -   (20,696)     (263,588)    263,299     (1,148,704)    8,431,664
Export credit facility Fixed Rate + FX (USD)    4,24% (4,24% on 12.31.24)     3.24    1,598,102    -    -    (31,005)   31,180     (189,917)    1,408,360
Advance on foreign exchange contracts Fixed Rate + FX (USD)    0,00% (0,00% on 12.31.24)     -   -    -    -     -   -     7     7
Working capital Fixed Rate / EIBOR3M+1.8% + FX (TRY/AED)    10,98% (10,62% on 12.31.24)     0.66    1,200,957   246,254    (104,143)    (91,700)   64,731     (174,254)    1,141,845
Debentures Fixed Rate + FX (USD)    6,00% (0,00% on 12.31.24)     9.76   -    27,726    -     -   (1,151)     -   26,575
              12,400,412   273,980    (124,839)     (386,293)    358,059     (1,512,868)   11,008,451
              20,740,548   1,433,877    (411,482)     (732,916)    1,228,361     (1,512,868)   20,745,520
                                       
Current              1,230,273                        2,042,518
Non-current             19,510,275                       18,703,002

(1)

Weighted average annual rate.
(2)average maturity in years
(3)Includes interest amounts, monetary restatement of the principal coupon and mark-to-market for debts hedged object to fair value hedge protection.

 

The maturity schedule of the loans and borrowings is presented on note 23.1.

On June 30, 2025 and on December 31, 2024, the Company did not have any financial covenant clauses related to its loans and borrowings agreements.

 

66 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
15.1Guarantees

On June 30, 2025, the amount of bank guarantees contracted by the Company was R$190,327 (R$195,798 as of December 31, 2024) which were offered mainly in litigations involving the Company’s use of tax credits. These guarantees carry an average cost of 1.62% p.a. (1.63% p.a. as of December 31, 2024).

15.2Issuance of debentures

On April 23, 2025, the Company settled its sixth issuance of simple, non-convertible into shares, unsecured debentures, in four series for private placement, in the total amount of R$1,250,000.

The debentures were subject to Private Placement with ECO Securitizadora de Direitos Creditórios do Agronegócio S.A. (“Securitization Company”), in the context of its 390th issuance of agribusiness receivables certificates, in four series, backed by agribusiness credit rights arising from the debentures, for public distribution.
 

    Parent Company and Consolidated
    30.06.25
Operation   Series   Issue date   Maturity   Rate   Notional   Updated value
                         
Debenture - 6th Issuance    1st Series     04.23.25     04.03.35     FX + 6% p.a.                           29,178                    26,575
Debenture - 6th Issuance    2nd Series     04.23.25     04.16.35     IPCA + 8,04% p.a.                         448,179                  452,594
Debenture - 6th Issuance    3rd Series     04.23.25     04.16.40     IPCA + 8,23% p.a.                         417,440                  425,228
Debenture - 6th Issuance    4th Series     04.23.25     04.17.45     IPCA + 8,38% p.a.                         355,203                  366,829
                                      1,250,000               1,271,226

Issuances costs of R$63,272 are recognized in the Statement of Income over the term of the debt, according to the effective interest rate method.

16.Trade accounts payable
    Parent Company   Consolidated
    06.30.25   12.31.24   06.30.25   12.31.24
Trade accounts payable                
Domestic market                
Third parties     11,690,362     10,691,833    11,881,818     10,888,870
Related parties   315,884   404,215    60,403     36,380
      12,006,246     11,096,048    11,942,221     10,925,250
Foreign market                
Third parties   1,305,293   1,311,144   2,909,648   2,833,403
Related parties   223,463     17,466    49,124    5,587
    1,528,756   1,328,610   2,958,772   2,838,990
                 
(-) Adjustment to present value ("APV")     (238,643)     (185,412)    (253,185)     (194,190)
      13,296,359     12,239,246    14,647,808     13,570,050
                 
Current     13,295,810     12,227,480    14,646,818     13,558,284
Non-current    549     11,766   990     11,766

 

67 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

The Company has partnerships with several financial institutions that allow suppliers to anticipate their receivables and, therefore, transfer the right to receive invoices with financial institutions (“Supply Chain Finance” or “Program”). Suppliers are free to choose whether or not to anticipate their receivables and with which financial institution, without any involvement from BRF.

The Program can generate benefits in the commercial relations of BRF and its suppliers, such as preference and priority of supply in cases of restricted supply, better commercial conditions, among others, without modifying the commercial essence of the relationship.

Invoices included in the Program are paid according to the same price and term conditions negotiated with its suppliers, without incurring any charge to the Company, so that there are no changes in commercial conditions after negotiation and invoicing of goods or services.

The balances of invoices included in the Supply Chain Finance are R$4,117,544 in the Parent Company and R$4,388,557 in the Consolidated on June 30, 2025 (R$4,735,503 in the Parent Company and R$4,942,713 in the Consolidated on December 31, 2024). The average payment term agreed with suppliers who choose to participate in the Program is substantially similar to that agreed with non-participating suppliers.

The Company measures and discriminates the adjustment to present value for all its commercial operations carried out in installments, specifying financial and operational items.

17.Leases

The Company is lessee in several lease agreements for forest lands, offices, distribution centers, outgrowers, vehicles, among others. Some contracts have a renewal option for an additional period at the end of the agreement, established by contractual amendments. Automatic renewals or renewals for undetermined periods are not allowed.

The contract clauses mentioned, with respect to renewal, readjustment and purchase option, are contracted according to market practices. In addition, there are no clauses of contingent payments or restrictions on dividends distribution, payments of interest on shareholders’ equity or obtaining debt.

 

 

 

68 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
17.1Right-of-use assets

The right-of-use assets as set forth below are part of the balance of property, plant and equipment (note 13).

      Parent Company
  Average rate (1)   12.31.24   Additions   Disposals   06.30.25
Cost                  
Land     36,081     984   (434)   36,631
Buildings, facilities and improvements       4,496,383    345,635   (303,211)    4,538,807
Machinery and equipment       151,781   31,894   (951)    182,724
Vehicles       140,437    101,639   (2,978)    239,098
        4,824,682    480,152   (307,574)    4,997,260
Depreciation                  
Land 10.97%     (16,771)   (2,000)   92     (18,679)
Buildings, facilities and improvements 13.39%   (1,838,731)   (311,659)    284,968   (1,865,422)
Machinery and equipment 19.83%     (54,921)     (17,621)     394     (72,148)
Vehicles 69.29%   (102,689)     (33,404)     2,668   (133,425)
      (2,013,112)   (364,684)    288,122   (2,089,674)
        2,811,570    115,468     (19,452)    2,907,586
(1)Weighted average annual rate.
      Consolidated
  Average rate (1)   12.31.24   Additions   Disposals   Transfer (2)   Monetary correction by Hyperinflation   Exchange rate variation   06.30.25
Cost                              
Land       156,818     4,575    (432)    -    (8,829)     (14,535)   137,597
Buildings, facilities and improvements       4,770,918     388,270    (366,616)    22,495    (4,545)     (33,884)   4,776,638
Machinery and equipment       203,958   32,508    (1,078)   (38,191)   -    (184)   197,013
Vehicles       479,356     118,619    (5,913)    15,696     3,835     (45,670)   565,923
        5,611,050     543,972    (374,039)    -    (9,539)     (94,273)   5,677,171
Depreciation                              
Land 7.0%   (58,397)    (5,014)    90    -     4,308     5,176    (53,837)
Buildings, facilities and improvements 14.1%    (2,023,004)    (349,642)     348,360   (17,494)   12,675   22,283     (2,006,822)
Machinery and equipment 20.2%   (81,885)     (18,843)     483    22,072   -     147    (78,026)
Vehicles 61.6%    (258,994)     (96,978)     3,716     (4,578)    (384)   23,567     (333,651)
       (2,422,280)    (470,477)     352,649    -   16,599   51,173     (2,472,336)
        3,188,770   73,495     (21,390)    -     7,060     (43,100)   3,204,835
(1)Weighted average annual rate.

17.2Lease liabilities
  Parent Company
  Weighted average
interest rate (p.a.)		   WAM (1)   12.31.24   Additions   Payments   Interest paid   Interest accrued   Disposals   06.30.25
Land 13.6%     6.9   25,153   984   (1,127)   (1,620)   1,620     (398)    24,612
Buildings, facilities and improvements (2) 10.0%     6.7    3,417,059     345,635   (267,084)     (68,753)   173,723   (55,785)   3,544,795
Machinery and equipment 14.4%     3.8    108,104    31,894     (15,791)   (8,587)   8,587     (609)   123,598
Vehicles 3.8%     1.6   43,385     101,639     (36,215)   (2,036)   2,036     (333)   108,476
           3,593,701     480,152   (320,217)     (80,996)   185,966   (57,125)   3,801,481
                                   
Current          847,407                       825,512
Non-current          2,746,294                       2,975,969
(1)Weighted average maturity in years.
(2)Includes the amount of R$2,462,849 in the Parent Company and in the Consolidated (R$2,349,173 in the Parent Company and in the Consolidated on December 31, 2024) referring to the right of use identified on integrated producers contracts.

 

69 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

 

  Consolidated
  Weighted average
interest rate (p.a.)		   WAM (1)   12.31.24   Additions   Payments   Interest paid   Interest accrued   Disposals   Exchange rate variation   06.30.25
Land 8.8%   11.4    119,805   4,575   (2,614)   (4,743)   4,743     (398)   (11,220)     110,148
Buildings, facilities and improvements (2) 10.0%     3.7    3,514,736     388,270   (304,195)     (72,331)   177,302   (55,797)    (5,993)     3,641,992
Machinery and equipment 14.1%     3.1    135,150    32,508     (16,774)   (9,022)   9,022     (607)   (17,728)     132,549
Vehicles 6.6%     2.4    223,238     118,619     (98,467)   (7,561)   7,561     (602)   (10,558)     232,230
           3,992,929     543,972   (422,050)     (93,657)   198,628   (57,404)   (45,499)     4,116,919
                                       
Current          1,014,813                             938,655
Non-current          2,978,116                             3,178,264
(1)Weighted average maturity in years.
(2)Includes the amount of R$2,462,849 in the Parent Company and in the Consolidated (R$2,349,173 in the Parent Company and in the Consolidated on December 31, 2024) referring to the right of use identified on integrated producers contracts.
17.3Lease liabilities maturity schedule

The maturity schedule of the minimum required future payments is presented below:

    Parent company   Consolidated
    06.30.25   06.30.25
Current   825,512    938,655
Non-current   2,975,969     3,178,264
2026   377,866    412,163
2027   607,206    662,764
2028   482,993    514,281
2029   388,416    405,292
2030 onwards   1,119,488     1,183,764
    3,801,481     4,116,919
17.4recognized in the statement of income

The amounts directly recognized in the statement of income presented below relate to items not capitalized, including low-value assets, short-term leases and leases with variable payments.

    Parent Company   Consolidated
    2025   2025
    Apr - jun   Jan - jun   Apr - jun   Jan - jun
Variable payments not included in the lease liabilities   3,734    6,986    3,734    6,986
Expenses related to short-term leases   2,328    5,171    2,533    7,518
Expenses related to low-value assets   5,038    9,989    5,055     10,022
     11,100     22,146     11,322     24,526

 

 

70 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
18.Share-based payment

The rules for the restricted shares plans granted to executives were disclosed in the financial statements for the year ended December 31, 2024 (note 18).

The breakdown of the outstanding shares granted is set forth below:

Date   Quantity   Grant (1)
Grant   Vesting date   Shares granted (2)   Outstanding shares   Fair value of the shares
07/01/22   07/01/25   4,703,472   1,186,145    14.11
06/01/23   06/01/26   4,758,877   1,378,268   7.38
07/01/23   07/01/26   2,108,504   1,268,491   8.98
04/01/24   04/01/27   2,323,377   1,389,958    16.35
07/01/24   07/01/27   1,086,352   1,066,458    19.54
04/01/25   04/01/28   2,308,198   2,308,198    19.16
          17,288,780   8,597,518    
(1)Amounts expressed in Brazilian Reais.
(2)granted before income tax deduction.

 

The roll forward of the granted options and shares for the period ended on June 30, 2025, is presented below:

Consolidated
Outstanding stocks as of December 31, 2024   9,712,356
 Forfeiture (1) :     
 Restricted shares – April 2024 grant      (254,336)
 Restricted shares – July 2024 grant     (48,509)
 Restricted shares – July 2023 grant     (55,714)
 Restricted shares – June 2023 grant      (392,581)
 Restricted shares – July 2022 grant      (183,990)
 Exercised:     
 Restricted shares – April 2024 grant      (845,328)
 Restricted shares – June 2023 grant     (1,676,400)
 Granted:     
 Restricted shares – April 2025 grant    2,308,198
 True-up:     
 Supplemental restricted shares – April 2024 grant    11,337
 Supplemental restricted shares – June 2023 grant    22,485
Outstanding stocks as of June 30, 2025   8,597,518
(1)The forfeitures are related to the resignation of eligible executive before the end of the vesting period.

 

 

71 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

The Company has registered the fair value of share-based compensation plans in the amount of R$109,633 under shareholders’ equity (R$131,872 as of December 31, 2024) and in the amount of R$37,351 under non-current liabilities (R$47,301 as of December 31, 2024). Regarding these plans, expenses of R$8,648 were recognized in the Parent Company and R$20,089 in the Consolidated for the six-month period ended June 30, 2025 (R$67,371 in the Parent Company and R$72,718 in the Consolidated for the same period of the previous year) and R$10,914 in the Parent Company and R$22,355 in the Consolidated for the three-month period ended June 30, 2025 (R$39,082 in the Parent Company and R$44,373 in the Consolidated for the same period of the previous year).

19.Employees benefits

The Company offers pension and other post-employment plans to the employees. The characteristics of such benefits were disclosed in the annual financial statements for the year ended on December 31, 2024 (note 19) and have not been changed during the following periods.

The actuarial liabilities are presented below:

 

    Parent Company   Consolidated
    Liabilities   Liabilities
    06.30.25   12.31.24   06.30.25   12.31.24
Medical assistance     63,587    60,486   64,229    61,278
F.G.T.S. Penalty (1)     79,127    75,771   79,127    75,771
Award for length of service   116,512     111,071    116,512     111,071
Other (2)     67,764    64,831    284,625     314,283
    326,990     312,159    544,493     562,403
                 
Current     63,959    63,959   90,300    95,276
Non-current   263,031     248,200    454,193     467,127
(1)FGTS – Government Severance Indemnity Fund for Employees.
(2)Includes retirement bonus, life insurance and liabilities related to subsidiaries located abroad, if certain conditions are met upon termination, in accordance with the legislation of each country.
20.Provision for tax, civil and labor risks

The Company and its subsidiaries are involved in certain legal matters arising in the normal course of business, which include tax, social security, labor, civil, environmental, administrative and other processes.

 

Company’s Management believes that, based on the elements existing at the base date of these interim financial information, the provision for tax, labor, civil, environmental, administrative and other risks, is sufficient to cover eventual losses with administrative and legal proceedings, as set forth below.

 

 

 

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Interim Financial Information, Individual and Consolidated | June 30, 2025

  

The roll forward of the provisions for tax, labor, civil, environmental, administrative and other risks, classified as with probable loss, and contingent liabilities is presented below:

 

    Parent Company
    06.30.25
    Tax Labor Civil and other Contingent liabilities (1) Total
Beginning balance     1,337,104    428,159    365,136     50,830    2,181,229
Additions     146,719    137,733   14,406     -    298,858
Reversals     (27,578)     (45,833)   (6,348)   (3,044)     (82,803)
Payments   (156,043)   (125,750)     (14,019)     -   (295,812)
Interest   57,783   41,507     5,504     -    104,794
Exchange rate variation   -   -   -     -   -
Ending balance     1,357,985    435,816    364,679     47,786    2,206,266
                     
Current                    720,763
Non-current                    1,485,503
(1)Contingent liabilities recognized at fair value as of the acquisition date, arising from the business combination with Sadia.

 

    Consolidated
    06.30.25
    Tax Labor Civil and other Contingent liabilities (1) Total
Beginning balance   1,339,666     436,422    371,305     84,721     2,232,114
Additions   157,732     140,004   15,785     -     313,521
Reversals   (28,542)   (46,100)     (11,753)     (3,044)     (89,439)
Payments    (156,035)    (125,750)     (14,019)     -   (295,804)
Interest    58,047    42,577   15,064     -     115,688
Exchange rate variation   (33)    (1,162)     (41)     -    (1,236)
Ending balance   1,370,835     445,991    376,341     81,677     2,274,844
                     
Current                     731,079
Non-current                     1,543,765
(1)Contingent liabilities recognized at fair value as of the acquisition date, arising from the business combination with Sadia, Hercosul and Mogiana.

 

The Company has contingencies for which losses are possible, according to the assessment prepared by Management with support from legal advisors. On June 30, 2025, the total amount of possible contingencies was R$22,913,654 (R$22,388,927 on December 31, 2024) and have the same characteristics as those disclosed in the financial statements for the year ended December 31, 2024. Of these, R$20,390,605 (R$19,881,466 as of December 31, 2024) are of a tax nature, R$273,601 (R$331,877 as of December 31, 2024) of a labor nature, and R$2,249,448 (R$2,175,584 as of December 31, 2024) of a civil and other nature, and, of which solely the ones arising from the business combination with Sadia, Hercosul, and Mogiana are provisioned, measured by the estimated fair value at the business combination date: R$81,678 (R$84,721 as of December 31, 2024).

 

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Interim Financial Information, Individual and Consolidated | June 30, 2025

  
21.Equity
21.1Capital stock

On June 30, 2025, the subscribed and paid capital of the Company was R$13,653,418, composed of 1,682,473,246 common book-entry shares with no par value. The realized value of the capital stock in the balance sheet is net of the public offering expenses of R$304,262, which covers the period from 2009 to 2024.

21.1.1 Roll forward of outstanding shares

The outstanding shares are calculated by the number of common shares reduced by the number of treasury shares.

    Parent Company and Consolidated
    06.30.25   12.31.24
Common shares    1,682,473,246   1,682,473,246
Treasury shares     (80,772,898)   (61,629,171)
Outstanding shares    1,601,700,348   1,620,844,075
21.2Capital reserves and other equity transactions

 

    Parent Company and Consolidated
    06.30.25   12.31.24
Capital reserves    2,763,364     2,763,364
Other equity transactions   (163,847)    (141,608)
Share-based payments    109,633     131,872
Acquisition of non-controlling interest   (273,260)    (273,260)
Capital transactions with controlled entities   (220)    (220)

 

21.3Treasury shares

The rollforward in treasury shares in the period ended June 30, 2025, is presented below:

 

    Parent Company and Consolidated
    Quantity of outstanding of shares
    06.30.25   12.31.24
Shares at the beggining of the period     61,629,171     3,817,179
Repurchase of shares     21,044,000    59,835,200
Delivery of restricted shares     (1,900,273)    (2,023,208)
Shares at the end of the period (1)     80,772,898    61,629,171

(1) Treasury shares are registered at an average cost, in units of Reais, of R$21,32 per share.

 

 

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Interim Financial Information, Individual and Consolidated | June 30, 2025

  
21.3.1 Repurchase of shares

On February 26, 2025, the Company's Board of Directors approved, within the scope of the share repurchase program of its own issuance, an additional up to 15 million common shares to the amount of 6,544,000 already repurchased by the Company up to this date.

In the three-month period ended June 30, 2025, the Company did not repurchase any shares, maintaining the number of shares acquired unchanged:

    Parent Company and Consolidated
    2024   2025
    Total   Jan - mar   Apr - jun   Total
Program II                
Number of shares acquired     45,835,200    21,044,000    -     66,879,200
Average unit price (in units of reais)    23.83   19.80    -    22.56
Total value    1,092,105   416,741    -    1,508,846

(1) On June 30, 2025, the Company had an outstanding balance of 500,000 shares that had not been repurchased under its share buyback program.

22.Earnings (loss) per share
    Parent Company and Consolidated
    2025    
    Apr - jun   Jan - jun   Apr - jun   Jan - jun
Basic numerator                
Net income (loss) for the period attributable to controlling shareholders   740,621   1,865,056   987,752   1,492,745
Basic denominator                
Common shares     1,682,473,246     1,682,473,246     1,682,473,246     1,682,473,246
Weighted average number of outstanding shares - basic     1,610,923,390     1,610,923,390     1,665,884,834     1,665,884,834
Net income (loss) per share basic - R$    0.45975    1.15776   0.59293   0.89607
                 
Diluted numerator                
Net income (loss) for the period attributable to controlling shareholders   740,621   1,865,056   987,752   1,492,745
                 
Diluted denominator                
Weighted average number of outstanding shares - basic      1,610,923,390     1,610,923,390     1,665,884,834     1,665,884,834
Number of potential shares   2,605,426   2,605,426   1,603,019   1,603,019
Weighted average number of outstanding shares - diluted     1,613,528,816     1,613,528,816     1,667,487,853     1,667,487,853
Net income (loss) per share diluted - R$    0.45901    1.15589   0.59236   0.89521

 

23.Financial instruments and risk management
23.1Overview

In the ordinary course of business, the Company is exposed to credit, liquidity and market risks, which are actively managed in compliance with the Financial Risk Management Policy (“Risk Policy”) and internal guidelines and strategic documents subject to such policy. The Risk Policy was approved by the Board of Directors on December 17, 2024, valid for one year and is available on the Company’s website.

The Company’s risk management strategy, guided by the Risk Policy, has as main objectives:

 

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Interim Financial Information, Individual and Consolidated | June 30, 2025

  
»To protect the Company’s operating and financial results, as well as its equity from adverse changes in the market prices, particularly commodities, foreign exchange and interests;
»To protect the Company against counterparty risks in existing financial operations as well as to establish guidelines for sustaining the necessary liquidity to fulfil its financial commitments;
»To protect the cash of Company against price volatility, adverse conditions in the markets in which the Company acts and adverse conditions in its production chain.

The Risk Policy defines the governance of the bodies responsible for the execution, tracking and approval of the risk management strategies, as well as the limits and instruments that can be used.

Additionally, the Management of the Company approved the following policies on November 10, 2021, which are available at the Company’s website:

»Financial Policy, which aims to: (i) establish guidelines for the management of the Company's financial debt and capital structure; and (ii) guide the Company's decision-making in connection with cash management (financial investments).
»Profit Allocation Policy, which aims to establish the practices adopted by the Company regarding the allocation of its profits, providing, among others, the periodicity of payment of dividends and the baseline used to establish the respective amount.

i) Indebtedness

The ideal capital structure definition at BRF is essentially associated with: (i) strong cash position as a tolerance factor for liquidity shocks, which includes minimum cash analysis; (ii) net indebtedness; and (iii) minimization of the capital opportunity cost.

On June 30, 2025, the non-current consolidated gross debt, as presented below, represented 91.22% (92.63% as of December 31, 2024) of the total gross debt, which has an average term of 8.2 years.

The Company monitors the gross debt and net debt as set forth below:

    Consolidated
    06.30.25   12.31.24
    Current   Non-current   Total   Total
Foreign currency loans and borrowings   (1,644,570)   (9,363,881)     (11,008,451)     (12,400,412)
Local currency loans and borrowings   (397,948)   (9,339,121)   (9,737,069)   (8,340,136)
Derivative financial instruments, net     270,278     290,485     560,763   (304,579)
Gross debt   (1,772,240)     (18,412,517)     (20,184,757)     (21,045,127)
                 
Cash and cash equivalents   14,146,203   -   14,146,203   11,165,364
Marketable securities     947,783     275,495     1,223,278     1,217,891
Restricted cash   15,051   64,828   79,879     336,815
    15,109,037     340,323   15,449,360   12,720,070
Net debt   13,336,797     (18,072,194)   (4,735,397)   (8,325,057)

 

 

 

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Interim Financial Information, Individual and Consolidated | June 30, 2025

  

ii) Derivative financial instruments

Summarized financial position of derivative financial instruments, that aim to protect the risks described below:

      Parent Company   Consolidated
  NOTE   06.30.25   12.31.24   06.30.25   12.31.24
Assets                  
Designated as hedge accounting                  
Foreign exchange risk on operating income      348,768     35,484   348,768     35,484
Commodities price risk 23.2.2   15,839     20,727    15,839     20,727
Interest rate risk 23.2.3    448,305   251,795   448,305   251,795
Not designated as hedge accounting                  
Foreign exchange risk on statement of financial position 23.2.1 i)     326    6,597   326    6,597
       813,238   314,603   813,238   314,603
                   
Current assets      390,863     63,033   390,863     63,033
Non-current assets      422,375   251,570   422,375   251,570
                   
Liabilities                  
Designated as hedge accounting                  
Foreign exchange risk on operating income 23.2.1 ii)   (4,446)     (360,557)     (4,446)     (360,557)
Commodities price risk 23.2.2     (15,185)    (22,102)   (15,185)    (22,102)
Interest rate risk 23.2.3   (134,391)     (236,523)    (134,391)     (236,523)
Not designated as hedge accounting                  
Foreign exchange risk on statement of financial position 23.2.1 i)     (98,453)     -   (98,453)     -
      (252,475)     (619,182)    (252,475)     (619,182)
                   
Current liabilities     (120,585)     (382,976)    (120,585)     (382,976)
Non-current liabilities     (131,890)     (236,206)    (131,890)     (236,206)
                   
Position of derivative financial instruments - net      560,763     (304,579)   560,763     (304,579)

 

 

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Interim Financial Information, Individual and Consolidated | June 30, 2025

  

iii) Financial commitments

The table below summarizes the significant commitments and contractual obligations that may impact the Company’s liquidity:

  Parent Company
  06.30.25
  Book
value		   Contractual cash flow   Up to
12 months		   2026   2027   2028   2029   2030 onwards
Non derivative financial liabilities                              
Loans and borrowings   18,072,199     29,211,640     1,841,239   982,010   3,505,549   1,964,722   1,687,149    19,230,971
Principal       18,333,992     633,383   385,832   2,380,702   1,026,469   818,315    13,089,291
Interest       10,877,648     1,207,856   596,178   1,124,847   938,253   868,834   6,141,680
Trade accounts payable   13,296,359     13,535,002    13,535,002     -     -     -    -    -
Lease liabilities 3,801,481    4,890,693     882,060   431,407   740,729   629,563   540,966   1,665,968
Derivative financial liabilities                              
Financial instruments designated hedge accounting for protection of:                            
Interest rate risk 134,391     -    -     -     -     -    -    -
Foreign exchange risk  4,446    4,446   4,446     -     -     -    -    -
Commodities price risk   15,185     15,185    15,185     -     -     -    -    -
Financial instruments not designated as hedge accounting for protection of:                        
Foreign exchange risk   98,453     98,453    98,453     -     -     -    -    -
                               
  Consolidated
  06.30.25
  Book
value		   Contractual cash flow   Up to
12 months		   2026   2027   2028   2029   2030 onwards
Non derivative financial liabilities                              
Loans and borrowings   20,745,520     32,065,082     3,132,721   2,540,379   3,509,140   1,964,722   1,687,149    19,230,971
Principal       21,050,543     1,822,232   1,910,692   2,383,544   1,026,469   818,315    13,089,291
Interest       11,014,539     1,310,489   629,687   1,125,596   938,253   868,834   6,141,680
Trade accounts payable   14,647,808     14,900,993    14,900,993     -     -     -    -    -
Lease liabilities 4,116,919    5,278,456     1,002,953   470,563   808,505   670,345   564,470   1,761,620
Derivative financial liabilities                              
Financial instruments designated hedge accounting for protection of:                            
Interest rate risk 134,391     -    -     -     -     -    -    -
Foreign exchange risk  4,446    4,446   4,446     -     -     -    -    -
Commodities price risk   15,185     15,185    15,185     -     -     -    -    -
Financial instruments not designated as hedge accounting for protection of:                        
Foreign exchange risk   98,453     98,453    98,453     -     -     -    -    -

The Company does not expect that the cash outflows to fulfill the obligations shown above will be significantly anticipated by factors unrelated to its best interests, or have its value substantially modified outside the normal course of business.

23.2Market risk management
23.2.1 Foreign exchange risk

The risk is the one that may cause unexpected losses to the Company resulting from volatility of the FX rates,

reducing its assets and revenues or increasing its liabilities and costs. The Company’s exposure is managed

in three dimensions: statement of financial position exposure, operating income exposure and investments

exposure.

 

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Interim Financial Information, Individual and Consolidated | June 30, 2025

  

i) Statement of financial position exposure

The Risk Policy regarding statement of financial position exposure has the objective to balance assets and liabilities denominated in foreign currencies, hedging the Company’s statement of financial position by using natural hedges, over-the-counter derivatives and exchange traded futures.

Assets and liabilities denominated in foreign currency for which the exchange variations are recognized in the Financial Results are as follows, summarized in Brazilian Reais:

    Consolidated
    06.30.25   12.31.24
Cash and cash equivalents    4,243,603     4,276,065
Trade accounts receivable    6,122,088     6,238,093
Trade accounts payable   (2,389,206)    (1,377,169)
Loans and borrowings   (9,376,723)    (9,726,343)
Other assets and liabilities, net    2,659,368     1,570,012
Exposure of assets and liabilities in foreign currencies    1,259,130     980,658
Derivative financial instruments (hedge)   (385,380)    (773,197)
Exposure in result, net    873,750     207,461

The net exposure in Reais is mainly composed of the following currencies:

    Parent Company
Net Exposure (1)   06.30.25   12.31.24
U.S. Dollars (USD)    295,396    (2,052,569)
Euros (EUR)    343,490   1,879,079
Yen (JPY)   (829)     (1,501)
Angolan kwanza (AOA)     (17,432)    36,366
Turkish Liras (TRY)    136,824   267,834
Argentinian Peso (ARS)   (2,385)     (2,125)
Chilean Pesos (CLP)    118,686    80,377
Total    873,750   207,461

(1) The Company is exposed to other currencies, although they have been grouped in the currencies above due to its high correlation

or for not being individually significant.

 

The Company holds more financial liabilities in foreign currencies than assets and, therefore, holds derivative financial instruments to reduce such exposure.

As a result of this protection strategy, the Company recognized under Financial Expenses in the Consolidated an income from foreign exchange derivatives of R$1,068 for the six-month period ending on June 30, 2025 (revenue of R$203,921 for the same period last year), and for the three-month period ending on June 30, 2025, an expense of R$49,779 (revenue of R$130,736 for the same period last year).

The exchange rate variation and price variation of monetary assets and liabilities in the Consolidated Financial Statements resulted in an expense of R$44,888 in the six-month period ended June 30, 2025 (income of R$48,165 in the same period of the previous year) and for the three-month period ended June 30, 2025, it was an expense of R$32,694 (income of R$127,376 in the same period of the previous year).

 

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Interim Financial Information, Individual and Consolidated | June 30, 2025

  

The derivative financial instruments acquired to hedge the foreign currency statement of financial position exposure on June 30, 2025 and are set forth below:

    06.30.25
Derivative instruments not designated   Asset   Liability   Maturity   Notional   Exercise rate   Fair value (R$)
Parent Company and Consolidated                          
Non-deliverable forward    USD     CLP     3th Qtr. 2025     CLP    25,000    956.3368     (3,562)
Non-deliverable forward    USD     EUR     3th Qtr. 2025     EUR    (175,000)     1.0924   (91,897)
Non-deliverable forward    BRL     EUR     3th Qtr. 2025     EUR   (60,000)     6.4966     (2,994)
Futures - B3    BRL/USD     USD/BRL     3th Qtr. 2025     USD    -     5.5626   326
                    (210,000)       (98,127)

ii) Operating income exposure

The Risk Policy regarding operating income exposure aims to hedge revenues and costs denominated in foreign currencies. The Company relies on internal models to measure and monitor these risks, and utilizes financial instruments designated as cash flow hedges to mitigate them. The Company has more sales in foreign currency than expenditures and, therefore, holds derivative financial instruments to reduce such exposure.

As a result of this protection strategy, the Company recognized revenue of R$55,015 under Consolidated Net Revenue for the six-month period ended June 30, 2025 (compared to revenue of R$6,618 for the same period last year), and revenue of R$91,785 for the three-month period ended June 30, 2025 (compared to expenses of R$40,819 for the same period last year).

The derivative financial instruments designated as cash flow hedges for foreing exchange operating income exposure on June 30, 2025 are set forth below:

        06.30.25
Cash flow hedge - Derivative instruments   Hedged object   Asset   Liability   Maturity   Notional   Designation rate   Fair value (1)
Parent Company and Consolidated                              
Non-deliverable forward   USD Exports   BRL   USD   1st Qtr. 2026   USD   49,500     6.3488    27,599
Non-deliverable forward   USD Exports   BRL   USD   2nd Qtr. 2026   USD   42,000     6.1559    11,741
Non-deliverable forward   USD Exports   BRL   USD   3rd Qtr. 2025   USD 126,000     6.1740    83,359
Non-deliverable forward   USD Exports   BRL   USD   4th Qtr. 2025   USD 137,000     6.4555   108,530
Collar   USD Exports   BRL   USD   1st Qtr. 2026   USD   48,000     6.4964    10,650
Collar   USD Exports   BRL   USD   3rd Qtr. 2025   USD 391,500     5.9633    88,396
Collar   USD Exports   BRL   USD   4th Qtr. 2025   USD   72,000     6.0820    14,047
                      866,000       344,322

(1) Correspond to the not realized portion of the hedge which is registered in Other comprehensive income.

iii) Investments exposure

The Company holds both investments (net assets) and loans (financial liabilities) denominated in foreign currency. To balance the accounting effects of such exposures, some non-derivative financial liabilities are designated as hedging instruments for the investments exposure.

As a result of this strategy, the Company recognized revenue of R$142,507, net of income tax, under Other comprehensive income for the six-month period ended June 30, 2025 (expense of R$180,118 in the same period of the previous year) and for the three-month period ended June 30, 2025, revenue of R$39,436 (expense of R$141,238 in the same period of the previous year).

 

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Interim Financial Information, Individual and Consolidated | June 30, 2025

  

The non-derivative financial instruments designated as net investment hedge instruments on June 30, 2025 are set forth below:

        06.30.25
Net investment hedge -
Non-derivative instruments		   Object (Investment)   Liability   Maturity   Notional   Rate   Exchange variation (1)
Parent company and consolidated                          
Bond - BRF SA BRFSBZ 4.35   Federal Foods LLC   USD   3º Tri. 2050   USD (2)   44,158   3.7649    (109,602)
Bond - BRF SA BRFSBZ 4.35   BRF Kuwait Food Management Company WLL   USD   3º Tri. 2050   USD (2)   88,552   3.7649    (150,729)
Bond - BRF SA BRFSBZ 4.35   Al Khan Foodstuff LLC   USD   3º Tri. 2050   USD (2)   53,446   3.7649    (103,098)
Bond - BRF SA BRFSBZ 4.35   Al-Wafi Al-Takamol International for Foods Products   USD   3º Tri. 2050   USD (3)   23,426   5.1629     (5,786)
                  209,582        (369,215)

(1) Corresponds to the effective portion of the hedge result accumulated in Other Comprehensive Income.

(2) Designated on August 1st, 2019.

(3) Designated on November 9, 2022.

*On February 1, 2025, BRF Foods GmbH was merged into BRF GmbH and the hedge relationship was discontinued.

 

23.2.2 Commodities price risk

The Company uses commodities as production inputs and is exposed to commodities price risk arising from future purchases. The management of such risk is performed through physical inventories, future purchases at fixed price and through derivative financial instruments.

The Risk Policy establishes coverage limits to the flow of purchases of corn, meal and soy, soybeans and soybean oil with the purpose of reducing the impact due to a price increase of these raw materials. The hedge may be reached using derivatives or by inventory management.

As a result of this protection strategy, the Company recognized under Consolidated Cost of Goods Sold an expense of R$12,567 for the six-month period ended June 30, 2025 (expense of R$133,128 for the same period in the prior year), and for the three-month period ended June 30, 2025, a revenue of R$608 (expense of R$12,385 for the same period in the prior year).

The Company performs purchases at variable prices in future and spot markets and, to hedge such exposure, it holds derivative financial instruments in long position (buy) to fix these prices in advance.

The financial instruments designated as cash flow hedges for the variable commodities price exposure on June 30, 2025, are set forth below:

        06.30.25
Cash flow hedge - Derivative instruments   Hedged object   Index   Maturity   Quantity   Exercise price (1)   Fair value
Parent Company and Consolidated                          
Collar - buy   Soybean meal purchase - Floating price   Soybean meal - CBOT   3rd Qtr. 2025     38,989 ton    347.84    (4,048)
Collar - buy   Soybean meal purchase - Floating price   Soybean meal - CBOT   4rd Qtr. 2025     14,000 ton    357.70    (1,434)
Non-deliverable forward - buy   Soybean meal purchase - Floating price   Soybean meal - CBOT   1st Qtr. 2026     13,989 ton    336.48   (553)
Non-deliverable forward - buy   Soybean meal purchase - Floating price   Soybean meal - CBOT   3rd Qtr. 2025     15,976 ton    327.79    (1,551)
Non-deliverable forward - buy   Soybean meal purchase - Floating price   Soybean meal - CBOT   4rd Qtr. 2025    8,990 ton    892.26   (642)
Collar - buy   Corn purchase - Floating price   Corn - CBOT   3rd Qtr. 2025     14,999 ton    175.07   (309)
Collar - buy   Corn purchase - Floating price   Corn - CBOT   4rd Qtr. 2025     14,999 ton    181.45   (309)
Collar - buy   Corn purchase - Floating price   Corn - B3   3rd Qtr. 2025     96,714 ton    1,230.65    (3,379)
Collar - buy   Corn purchase - Floating price   Corn - B3   4rd Qtr. 2025     81,513 ton    1,180.62   (946)
Collar - buy   Corn purchase - Floating price   Corn - B3   1st Qtr. 2026     14,445 ton    1,213.90     (38)
                314,614           (13,209)

(1) Base price of each commodity in USD/ton, except for Corn – B3 denominated in R$/ton.

 

In certain cases, the Company performs futures purchases at fixed prices and, to hedge such exposure, it

holds derivative financial instruments in short position (sell) to keep these prices at market value.

 

81 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

The financial instruments designated as fair value hedges for the fixed commodities price exposure on June 30, 2025, are set forth below:

        06.30.25
Fair value hedge - Derivative instruments   Hedged object   Index   Maturity   Quantity   Exercise price (1)   Fair value
Parent Company and Consolidated                          
Non-deliverable forward - sell   Soybean purchase - fixed price   Soybean - CBOT   1st Qtr. 2026     27,460 ton    384.78   (405)
Non-deliverable forward - sell   Corn purchase - fixed price   Corn - CBOT   1st Qtr. 2026     91,835 ton    182.41     4,293
Non-deliverable forward - sell   Corn purchase - fixed price   Corn - CBOT   2nd Qtr. 2026    6,782 ton    188.99     327
Non-deliverable forward - sell   Corn purchase - fixed price   Corn - CBOT   3rd Qtr. 2026    9,564 ton    181.79     217
Corn future - sell   Corn purchase - fixed price   Corn - B3   3rd Qtr. 2025   144,774 ton    1,106.08     748
Corn future - sell   Corn purchase - fixed price   Corn - B3   1st Qtr. 2026     16,794 ton    1,292.59    27
Corn future - sell   Corn purchase - fixed price   Corn - B3   3rd Qtr. 2026    3,105 ton    1,203.33     7
                300,314           5,214

(1) price of each commodity in USD/ton, except for Corn – B3 denominated in R$/ton.

 

The Company assessed that part of its cost, future physical purchases of commodities in dollars, also generates foreign exchange exposure and therefore contracted the following derivatives and designated them as fair value hedges:

        06.30.25
Fair value hedge - Derivative instruments   Hedged object   Assets   Liabilities   Maturity   Notional   Exercise price   Fair value
Parent Company and consolidated                                  
Non-deliverable forward - buy   Cost in USD   BRL   USD    1st Qtr. 2026       USD    27,316    6.0798   8,428
Non-deliverable forward - buy   Cost in USD   BRL   USD    3rd Qtr. 2026       USD      925    6.1999   160
Non-deliverable forward - buy   Cost in USD   BRL   USD    2nd Qtr. 2026       USD      185    6.1991     61
                          28,426       8,649

The outstanding and settled derivative instruments of commodity risk hedging strategies represent effects on the balance sheet of: i) the Inventories item in the Consolidated in the credit amount of R$45,061 on June 30, 2025 (R$28,811 debit on December 31, 2024); ii) the Other Comprehensive Income item in the debit amount of R$1,554 on June 30, 2025 (R$29,447 credit on December 31, 2024).

23.2.3 Interest rate risk

The interest rate risk may cause economic losses to the Company resulting from volatility in interest rates that affect its assets and liabilities.

The Company’s Risk Policy does not restrict exposure to different interest rates, nor does it establishes limits for fixed or floating rates. However, the Company continually monitors the market interest rates to evaluate any need to enter into hedging transactions to protect them from the volatility of such rates and manage the mismatch between its financial assets and liabilities.

As a result of this protection strategy, the Company recognized under Financial Income and Expenses an income of R$232,198 for the six-month period ended June 30, 2025 (expense of R$197,723 in the same period of the previous year), and for the three-month period ended June 30, 2025, an income of R$112,431 (expense of R$92,348 in the same period of the previous year).

The derivative financial instruments used to hedge the exposure to interest rates as of June 30, 2025 are presented in the table below:

 

82 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
        06.30.25
                          Fair value (R$)
Fair value hedge - Derivative instruments   Hedged Object   Asset   Liability   Maturity   Notional     Instrument   Object (1)
Parent company and Consolidated                          
Interest rate swap   Debenture - 1st issue - 3rd series - IPCA + 5,50% p.a.   IPCA + 5,50% p.a.   CDI + 0,57% p.a.   2nd Qtr. 2026     200,000 BRL     14,721   5,491
Interest rate swap   Debenture - 1st issue - 3rd series - IPCA + 5,50% p.a.   IPCA + 5,50% p.a.   100% of CDI   2nd Qtr. 2026     200,000 BRL     11,564   4,673
Interest rate swap   Debenture - 2nd issue - 3rd series - IPCA + 5,30% p.a.   IPCA + 5,30% p.a.   CDI + 2,20% p.a.   3rd Qtr. 2027     400,000 BRL     79,897   135,184
Interest rate swap   Debenture - 2nd issue - 2rd series - IPCA + 5,60% p.a.   IPCA + 5,60% p.a.   CDI + 2,29% p.a.   3rd Qtr. 2030     595,000 BRL     82,051    36,077
Interest rate swap   Debenture - 3rd issue - single series - IPCA + 4,78% p.a.   IPCA + 4,78% p.a.   CDI + 0,12% p.a.   2nd Qtr. 2031     1,000,000 BRL   122,533    92,841
Interest rate swap   Debenture - 1st issue - 1ª series - IPCA + 6,83% a.a.   IPCA + 6,83% p.a.   109,32% of CDI   3rd Qtr. 2032     990,000 BRL     76,455    17,409
Interest rate swap   Debenture - 5th issue IPCA + 7,23%   IPCA + 7,23% p.a.   CDI + 0,98% p.a.   2nd Qtr. 2034     1,635,000 BRL    (86,628)    78,039
Interest rate swap   Debenture - 5th issue fixed rate + 12,92%   FIXED RATE 12,92% p.a. CDI + 0,89% p.a.   2nd Qtr. 2031     925,000 BRL    (47,763)    15,028
Interest rate swap   Debenture - 6th issue - 2rd series - IPCA + 8,04% p.a.   IPCA + 8,04% p.a.   CDI + 0,3% p.a.   2nd Qtr. 2035     448,179 BRL     15,657   (15,446)
Interest rate swap   Debenture - 6th issue  - 3rd series - IPCA + 8,23% p.a.   IPCA + 8,23% p.a.   CDI + 0,59% p.a.   2nd Qtr. 2040     417,440 BRL     21,161   (20,720)
Interest rate swap   Debenture - 6th issue  - 4rd series - IPCA + 8,38% p.a.   FIXED RATE 8,38% p.a. CDI + 0,825% p.a.   2nd Qtr. 2045     355,203 BRL     24,266   (21,408)
                      7,165,822     313,914   327,168
(1)Corresponds to the accumulated amount of fair value hedge adjustments on the hedged items, included in the carrying amount of the debentures.
23.3Credit risk management

The Company is exposed to the credit risk related to the financial assets held: trade and non-trade accounts receivable, marketable securities, derivative instruments and cash and equivalents. The Company’s credit risk exposure can be assessed in notes 4, 5 and 6.

23.3.1 Credit risk in accounts receivable

The credit risk associated with trade accounts receivable is actively managed through specific systems and is supported by internal policies for credit analysis. The significant level of diversification and geographical dispersion of the customer portfolio significantly reduces the risk. However, the Company chooses to complement the risk management by contracting insurance policies for specific markets. The impairment of these financial assets is carried out based on expected credit losses.

23.3.2 Counterparty credit risk

The credit risk associated with marketable securities, cash and cash equivalents and derivative instruments in general is directed to counterparties with Investment Grade ratings. The maintenance of assets with counterparty risk is constantly assessed according to credit ratings and the Company’s portfolio concentration, aligned with the applicable impairment requisites.

 

 

83 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
23.4Capital management and liquidity risk

The Company is exposed to liquidity risk as far as it needs cash or other financial assets to settle its obligations in the respective terms. The Company’s cash and liquidity strategy takes into consideration historical volatility scenarios of results as well as simulations of sectorial and systemic crisis. It is grounded on allowing resilience in scenarios of capital restriction.

23.5Sensitivity analysis

Management believes that the most relevant risks that may affect the Company’s results, for which it uses derivative financial instruments to protect, are the volatility of commodities prices, foreign exchange rates and interest rates.

For the probable scenario of commodities, Management uses as a reference the future value of assets on June 30, 2025 and therefore understands that there will be no changes in the results of operations. As for the exchange rate, Management uses the Focus report for the American Dollar as a reference inserting the quotes for the current and subsequent years. The likely scenario for other currencies is determined based on the US Dollar parity.

In the possible and remote scenarios, both positive and negative variations of 15% and 30% respectively were considered in both cases from the probable scenario. Such sensitivity scenarios originate from information and assumptions used by Management in monitoring the previously mentioned risks.

The information used in the preparation of the analysis is based on the position as of June 30, 2025, which has been described in the items above. The estimated values may differ significantly to numbers and results that will be effectively registered by the Company. Positive values indicate gains and negative values indicate losses.

 

84 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
    Scenario
    Remote   Possible   Probable   Possible   Remote
Exchange rate - Balance   - 30%   - 15%       + 15%   + 30%
USD   4.0215   4.8833   5.7450   6.6068   7.4685
Monetary assets and liabilities     253,878     101,482    (50,913)    (203,309)     (355,704)
Derivative instruments - not designated    (331,587)    (132,545)     66,498     265,540   464,583
Net effect   (77,709)   (31,063)     15,585    62,231   108,879
                     
EUR   4.7333   5.7476   6.7619   7.7761   8.7904
Monetary assets and liabilities    (487,441)    (194,844)     97,753     390,350   682,947
Derivative instruments - not designated     397,079     158,724    (79,632)    (317,987)     (556,343)
Net effect   (90,362)   (36,120)     18,121    72,363   126,604
                     
JPY   0.0279   0.0339   0.0398   0.0458   0.0518
Monetary assets and liabilities     218    87     (44)    (175)     (305)
Net effect     218    87     (44)    (175)     (305)
                     
TRY   0.1010   0.1227   0.1443   0.1660   0.1876
Ativos e passivos monetários   (35,994)   (14,388)    7,218    28,825     50,431
Net effect   (35,994)   (14,388)    7,218    28,825     50,431
                     
AOA   0.0044   0.0054   0.0063   0.0073   0.0082
Monetary assets and liabilities     4,586     1,833   (920)    (3,672)   (6,425)
Net effect     4,586     1,833   (920)    (3,672)   (6,425)
                     
ARS   0.0034   0.0041   0.0048   0.0055   0.0063
Monetary assets and liabilities     628     251   (126)    (503)     (879)
Net effect     628     251   (126)    (503)     (879)
                     
CLP   0.0043   0.0052   0.0060   0.0071   0.0080
Monetary assets and liabilities   (67,101)   (26,822)     13,457    53,736     94,015
Derivative Instruments - Not designated    35,884    14,344   (7,196)   (28,736)    (50,276)
Net effect   (31,217)   (12,478)    6,261    25,000     43,739

 

    Scenario
    Remote   Possible   Probable   Possible   Remote
Exchange rate - Operating results   - 30%   - 15%       + 15%   + 30%
USD   4.0215   4.8833   5.7450   6.6068   7.4685
Revenue in USD   (1,243,230)     (496,954)     249,321    995,597    1,741,872
NDF     508,920   203,430    (102,061)   (407,551)     (713,041)
Collar     146,431     58,533   (29,366)   (116,928)     (203,964)
Net effect   (587,879)     (234,991)     117,894    471,118    824,867

 

 

 

85 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
    Scenario
    Remote   Possible   Probable   Possible   Remote
 Operating Result – Foreign Exchange   - 30%   - 15%       + 15%   + 30%
USD   4.0215   4.8833   5.7450   6.6068   7.4685
Cost of Sales     (40,809)     (16,313)    8,184   32,681     57,177
NDF   40,809   16,313   (8,184)     (32,681)    (57,177)
Net effect    -    -   -    -   -
                     
    Scenario
    Remote   Possible   Probable   Possible   Remote
Operating Result – Commodities   - 30%   - 15%       + 15%   + 30%
Soy Grain - CBOT     271     329    388     446    504
Cost of Sales    (3,193)   (1,596)     -     1,596    3,193
NDF     3,193     1,596     -   (1,596)     (3,193)
Net effect   -   -     -   -     -
                     
Soybean meal - CBOT     220     267    314     361    409
Cost of sales     8,678     4,339     -   (4,339)     (8,678)
Collar    (3,734)   (1,867)     -     1,867    3,734
Call    (5,002)   (2,501)     -     2,501    5,002
Net effect     (58)     (29)     -   29     58
                     
Corn - CBOT     120     146    172     198    224
Cost of sales    (4,038)   (2,019)     -     2,019    4,038
Collar     (54,243)     (22,441)     -     2,487     17,042
NDF     5,658     2,829     -   (2,829)     (5,658)
Net effect     (52,623)     (21,631)     -     1,677     15,422
                     
Corn - B3     746     905    1,065     1,225    1,385
Cost of sales     8,947     4,474     -   (4,474)     (8,947)
Collar     (54,243)     (22,441)     -     2,487     17,042
Future   52,068   26,034     -     (26,034)    (52,068)
Net effect     6,772     8,067     -     (28,021)    (43,973)

 

86 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
23.6Financial instruments by category
    Parent Company
    06.30.25
    Amortized cost   FVTOCI (3) - Equity instruments   Fair value through profit and loss   Total
Assets                
Cash and bank     449,579    -    -   449,579
Cash equivalents    -    -     7,247,400   7,247,400
Marketable securities    -     910,485    55,877   966,362
Restricted cash    34,727    -    -     34,727
Trade accounts receivable     4,917,187    -     300,628   5,217,815
Notes receivables    31,025    -    -     31,025
Derivatives not designated    -    -     326   326
Derivatives designated as hedge accounting (1)    -    -     812,912   812,912
                 
Liabilities                
Trade accounts payable   (13,296,359)    -    -   (13,296,359)
Loans and borrowings (2)   (10,262,369)    -    (7,809,830)   (18,072,199)
Derivatives not designated    -    -   (98,453)    (98,453)
Derivatives designated as hedge accounting (1)    -    -    (154,022)     (154,022)
    (18,126,210)     910,485     354,838   (16,860,887)

 

    Consolidated
    06.30.25
    Amortized cost   FVTOCI (3) - Equity instruments   Fair value through profit and loss   Total
Assets                
Cash and bank     1,574,596    -    -   1,574,596
Cash equivalents    -    -    12,571,607    12,571,607
Marketable securities     243,252     924,129    55,897   1,223,278
Restricted cash    79,879    -    -     79,879
Trade accounts receivable     3,624,677    -     300,628   3,925,305
Notes receivables    31,025    -    -     31,025
Derivatives not designated    -    -     326   326
Derivatives designated as hedge accounting (1)    -    -     812,912   812,912
                 
Liabilities                
Trade accounts payable   (14,647,808)    -    -   (14,647,808)
Loans and borrowings (2)   (12,935,690)    -    (7,809,830)   (20,745,520)
Derivatives not designated    -    -   (98,453)    (98,453)
Derivatives designated as hedge accounting (1)    -    -    (154,022)     (154,022)
    (22,030,069)     924,129     5,679,065   (15,426,875)

 

(1) All derivatives are classified at fair value through profit and loss. Those designated as hedge accounting instruments have their gains and losses also affecting Equity and Inventories.

(2) The part of the loans and borrowings that is object in a fair value hedge is classified as Fair value through profit and loss. The rest of the loans and borrowings balance is classified as amortized cost and those designated as cash flow or net investment hedge accounting instruments have their gains and losses also affecting Equity.

(3) FVTOCI: Fair Value Through Other Comprehensive Income.

 

87 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
23.7Fair value of financial instruments

The fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Depending on the inputs used for measurement, the financial instruments at fair value may be classified into 3 hierarchy levels:

»Level 1 - Uses quoted prices (unadjusted) for identical instruments in active markets. In this category are classified investments in stocks, savings accounts, overnights, term deposits, Financial Treasury Bills (“LFT”) and investment funds;
»Level 2 - Uses prices quoted in active markets for similar instruments, prices quoted for identical or similar instruments in non-active markets and evaluation models for which inputs are observable. In this level are classified the investments in Bank Deposit Certificates (“CDB”) and derivatives, which are measured by well-known pricing models: discounted cash flows and Black-Scholes. The observable inputs are interest rates and curves, volatility factors and foreign exchange rates;
»Level 3 - Instruments for which significant inputs are non-observable. The Company does not have financial instruments in this category.

 

The table below presents the classification of financial instruments recorded at fair value by measurement hierarchy. Throughout the period ended June 30, 2025, there were no changes among the 3 levels of hierarchy.

    Parent Company
    06.30.25   12.31.24
    Level 1   Level 2   Total   Level 1   Level 2   Total
Financial Assets                        
Fair value through other comprehensive income                        
National treasury notes     910,485   -     910,485     859,029   -     859,029
Stocks   -   -    -   -   -    -
Fair value through profit and loss                        
Savings account and overnight   14,886   -    14,886     1,582   -   1,582
Term deposits   -   -    -   -   -    -
Bank deposit certificates   -     6,711,955   6,711,955   -     3,545,946   3,545,946
Financial treasury bills   37,277   -    37,277   35,031   -    35,031
Investment funds   26,357   -    26,357   23,177   -    23,177
Trade accounts receivable   -     300,628     300,628   -     266,210     266,210
Derivatives   -     813,238     813,238   -     314,603     314,603
Other titles   -   -    -   -   -    -
Financial Liabilities                        
Fair value through profit and loss                        
Derivatives   -   (252,475)    (252,475)   -   (619,182)    (619,182)
Loans and borrowings   -   (7,809,830)    (7,809,830)   -   (6,334,836)    (6,334,836)
      989,005   (236,484)     752,521     918,819   (2,827,259)    (1,908,440)

 

88 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
    Consolidated
    06.30.25   12.31.24
    Level 1   Level 2   Total   Level 1   Level 2   Total
Financial Assets                        
Fair value through other comprehensive income                        
National treasury notes     910,486   -     910,486     859,029   -     859,029
Stocks   13,643   -    13,643   15,481   -    15,481
Fair value through profit and loss                        -
Savings account and overnight   14,886   -    14,886     1,582   -   1,582
Term deposits     5,156,437   -   5,156,437     4,562,127   -   4,562,127
Bank deposit certificates   -     6,879,725   6,879,725   -     3,716,958   3,716,958
Financial treasury bills   37,277   -    37,277   35,031   -    35,031
Investment funds   26,357   -    26,357   23,177   -    23,177
Trade accounts receivable   -     300,628     300,628   -     266,210     266,210
Derivatives   -     813,238     813,238   -     314,603     314,603
Other titles    20   -     20    20   -     20
Financial Liabilities                        
Fair value through profit and loss                        
Derivatives   -   (252,475)    (252,475)   -   (619,182)    (619,182)
Loans and borrowings   -   (7,809,830)    (7,809,830)   -   (6,334,836)    (6,334,836)
      6,159,106     (68,714)   6,090,392     5,496,447   (1,154,639)   4,341,808

 

The fair value of financial instruments approximates the carrying value, except in the cases presented below, where bonds are stated based on observable prices in active markets and debentures are measured using discounted cash flows.

 

    Parent Company and Consolidated
            06.30.25   12.31.24
    Currency   Maturity   Book
value		   Fair
value		   Book
value		   Fair
value
BRF S.A.                        
BRF SA BRFSBZ 4 7/8   USD   2030     (3,265,312)     (3,227,087)   (3,706,212)   (3,351,896)
BRF SA BRFSBZ 5 3/4   USD   2050     (3,634,881)     (3,141,341)   (4,135,792)   (3,262,625)
Debenture - 1st issue   BRL   2026     (278,418)     (270,937)   (550,542)   (520,552)
Debenture - 2nd issue   BRL   1st serie 2027 and 2nd series 2030     (2,882,990)     (3,083,497)   (2,739,446)   (2,897,325)
Debenture - 3rd issue   BRL   2031     (1,171,568)     (1,171,568)   (1,109,135)   (1,109,135)
Debenture - 4rd issue   BRL   1st serie 2027 and 2nd series 2032     (1,132,773)     (1,207,449)   (1,062,066)   (1,139,664)
Debenture - 5rd issue   BRL   1st serie 2029, 2nd series 2031 and 3rd series 2034     (1,909,297)     (1,627,094)   (1,765,547)   (1,780,894)
Debenture - 6rd issue   BRL   2nd series 2035, 3rd series 2040 and 4th series 2045     (1,244,651)     (1,244,651)   (1,765,547)   (1,780,894)
Parent company           (15,519,890)   (14,973,624)    (16,834,287)    (15,842,985)
                         
BRF GmbH                        
BRF SA BRFSBZ 4.35   USD   2026     (1,531,467)     (1,590,797)   (1,759,349)   (1,712,346)
Consolidated           (17,051,357)   (16,564,421)    (18,593,636)    (17,555,331)

 

89 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
24.Segment Information

The operating segments are reported consistently with the management reports provided to the main strategic and operational decision makers for assessing the performance of each segment and allocation of resources. The operating segments information is prepared considering three reportable segments, being: Brazil, International and Other segments.

The operating segments include the sales of all distribution channels and are subdivided according to the nature of the products, for which the characteristics are described below:

»In-natura: production and sale of whole poultry and cuts and pork and other cuts;
»Semi-processed: production and marketing of in-natura cooked and smoked foods;
»Processed: production and sale of processed food, frozen and processed products derived from poultry, pork and beef, margarine, vegetables and soybean-based products;
»Other sales: sales of flour for food service and others.

Other segments are comprised of commercialization and development of animal nutrition ingredients, human nutrition, plant nutrition (fertilizers), healthcare (health and wellness), pet food, as well as commercialization of agricultural products.

The items not allocated to the segments are presented as Corporate and refer to relevant events not attributable to the operating segments.

The net sales by nature for each reportable operating segment is set forth below:

 

    Consolidated
    2025   2024
    Apr - jun   Jan - jun   Apr - jun   Jan - jun
Brazil                
In-natura    2,036,794   4,015,911    1,703,823   3,288,988
Semiprocessed    648,068   1,225,176    485,814   929,999
Processed    5,331,776    10,201,279    4,621,547   8,745,645
Other sales   63,167    71,993   60,372    69,314
     8,079,805    15,514,359    6,871,556    13,033,946
International                
In-natura    5,457,329    11,647,936    6,225,465    11,761,282
Semiprocessed    140,771   303,293    171,624   295,153
Processed    1,010,580   2,043,515    886,951   1,673,909
Other sales   33,452    69,440   46,452    85,244
     6,642,132    14,064,184    7,330,492    13,815,588
                 
Other segments    642,694   1,298,109    727,544   1,457,567
    15,364,631    30,876,652   14,929,592    28,307,101

 

 

90 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  

The gross profit and income (loss) before financial results for each segment and for Corporate are set forth below:

    Consolidated
    Gross profit   Income (loss) before financial results and income taxes
    2025   2024   2025   2024
    Apr - jun   Jan - jun   Apr - jun   Jan - jun   Apr - jun   Jan - jun   Apr - jun   Jan - jun
Brazil    2,386,831     4,446,835    1,881,943     3,469,017    913,841     1,780,256    655,963     1,170,659
Margin (%)   29.5%   28.7%   27.4%   26.6%   11.3%   11.5%   9.5%   9.0%
International    1,579,218     3,439,713    1,990,169     3,453,442    678,842     1,665,004    1,126,624     1,798,137
Margin (%)   23.8%   24.5%   27.1%   25.0%   10.2%   11.8%   15.4%   13.0%
Other segments    127,293     260,583    164,669     338,609   29,237    84,318   61,288     115,511
Margin (%)   19.8%   20.1%   22.6%   23.2%   4.5%   6.5%   8.4%   7.9%
Subtotal    4,093,342     8,147,131    4,036,781     7,261,068    1,621,920     3,529,578    1,843,875     3,084,307
Corporate     230    (954)   (106,814)    (106,814)     (41,837)   (64,963)   (140,586)    (128,723)
Total    4,093,572     8,146,177    3,929,967     7,154,254    1,580,083     3,464,615    1,703,289     2,955,584
 Margin (%)    26.6%   26.4%   26.3%   25.3%   10.3%   11.2%   11.4%   10.4%

The composition of selected items that were not allocated to the Company’s operating segments as they are not linked to its main activity and, therefore, were presented as Corporate is set forth below:
 

    Consolidated
    2025    
Corporate   Apr - jun   Jan - jun   Apr - jun   Jan - jun
Results with sale and disposal of fixed assets and investments    (8,936)   (10,485)    (8,581)   9,073
Reversal/(provision) for tax and civil contingencies     (32,119)   (55,695)     (16,921)   (18,775)
Expenses with demobilization    (1,623)     (1,933)    (1,397)     (6,764)
Weather events     230     (954)    (113,083)     (113,083)
Other     611   4,104    (604)   826
      (41,837)   (64,963)    (140,586)     (128,723)

 

No customer individually or in aggregate (economic group) accounted for more than 5% of net sales in the period ended June 30, 2025, and 2024.

The goodwill arising from business combinations and the intangible assets with indefinite useful life (trademarks) were allocated to the reportable operating segments, considering the economic benefits generated by such intangible assets. The allocation of these intangible assets is presented below:

 

    Consolidated
    Goodwill   Trademarks   Total
    06.30.25   12.31.24   06.30.25   12.31.24   06.30.25   12.31.24
Brazil     1,151,498    1,151,498    982,478    982,478    2,133,976    2,133,976
International     1,987,193    2,159,259    511,646    549,072    2,498,839    2,708,331
Other segments     456,390    460,505    474,715    474,716    931,105    935,221
      3,595,081    3,771,262    1,968,839    2,006,266    5,563,920    5,777,528

Information related to total assets by reportable segment is not disclosed, as it is not included in the set of information made available to the Company’s management, which makes investment decisions and determines allocation of resources based on information about the consolidated assets.

 

91 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
25.Net sales
    Parent Company       Consolidated
    2025   2024       2025   2024
    Apr - jun   Jan - jun   Apr - jun   Jan - jun       Apr - jun   Jan - jun   Apr - jun   Jan - jun
Gross sales                   Gross sales                
Brazil    9,827,533    18,917,908    8,367,020    15,932,015   Brazil    9,827,533    18,917,908    8,367,020    15,932,015
International    5,203,915    10,646,231    4,537,429     8,763,202   International    7,052,824    14,898,171    7,698,900    14,499,758
Other segments    490,873   1,037,587    504,233     1,057,067   Other segments    772,744   1,536,031    875,774     1,742,287
    15,522,321    30,601,726   13,408,682    25,752,284       17,653,101    35,352,110   16,941,694    32,174,060
                                     
Sales deductions                   Sales deductions                
Brazil   (1,747,727)    (3,403,557)   (1,495,463)    (2,898,068)   Brazil   (1,747,727)    (3,403,557)   (1,495,464)    (2,898,069)
International   (154,068)    (281,353)     (21,114)   (40,247)   International   (410,691)    (833,986)   (368,408)    (684,170)
Other segments     (59,409)    (115,992)     (48,113)    (102,314)   Other segments   (130,052)    (237,915)   (148,230)    (284,720)
    (1,961,204)    (3,800,902)   (1,564,690)    (3,040,629)       (2,288,470)    (4,475,458)   (2,012,102)    (3,866,959)
                                     
Net sales                   Net sales                
Brazil    8,079,805    15,514,350    6,871,557    13,033,947   Brazil    8,079,805    15,514,350    6,871,556    13,033,946
International    5,049,846    10,364,877    4,516,315     8,722,955   International    6,642,132    14,064,184    7,330,492    13,815,588
Other segments    431,466   921,597    456,120     954,753   Other segments    642,694   1,298,118    727,544     1,457,567
    13,561,117    26,800,824   11,843,992    22,711,655       15,364,631    30,876,652   14,929,592    28,307,101
26.Expenses by nature

The Company presents the breakdown of some income statement accounts below, according to function and nature:

    Parent Company   Consolidated
    2025   2024   2025   2024
    Apr - jun   Jan - jun   Apr - jun   Jan - jun   Apr - jun   Jan - jun   Apr - jun   Jan - jun
Costs of sales                                
Raw materials and supplies   (6,857,063)    (13,558,501)   (6,468,021)    (12,466,783)   (7,777,603)    (16,006,884)   (7,901,238)    (15,115,098)
Salaries and employees benefits   (1,452,792)   (2,792,347)   (1,322,848)   (2,529,959)   (1,716,996)   (3,288,857)   (1,463,094)   (2,813,692)
Depreciation   (625,624)   (1,222,697)   (605,564)   (1,204,296)   (689,263)   (1,344,891)   (672,690)   (1,326,850)
Amortization     (27,086)     (49,117)     (23,447)     (51,055)     (55,050)   (101,801)     (50,918)   (104,022)
Other   (962,001)   (1,859,102)   (836,639)   (1,650,408)   (1,032,147)   (1,988,042)   (911,685)   (1,793,185)
    (9,924,566)    (19,481,764)   (9,256,519)    (17,902,501)    (11,271,059)    (22,730,475)    (10,999,625)    (21,152,847)
                                 
Operating income (expenses):                                
Sales                                
Indirect and direct logistics expenses   (939,046)   (1,838,315)   (883,132)   (1,741,921)   (928,378)   (1,827,232)   (891,522)   (1,728,104)
Marketing   (234,939)   (380,373)   (180,351)   (333,695)   (292,171)   (492,364)   (218,331)   (418,896)
Salaries and employees benefits   (433,261)   (827,230)   (385,900)   (706,231)   (564,383)   (1,086,659)   (497,111)   (919,858)
Depreciation     (60,345)   (118,059)     (65,407)   (126,978)   (105,619)   (209,212)   (108,416)   (211,111)
Amortization     (13,948)     (25,493)     (13,475)     (29,329)     (18,792)     (34,981)     (17,888)     (37,844)
Other   (144,763)   (281,636)   (124,053)   (237,931)   (209,447)   (412,313)   (204,914)   (394,187)
    (1,826,302)   (3,471,106)   (1,652,318)   (3,176,085)   (2,118,790)   (4,062,761)   (1,938,182)   (3,710,000)
                                 
Administrative expenses                                
Salaries and employees benefits     (96,834)   (166,813)   (109,638)   (190,742)   (153,020)   (274,708)   (149,494)   (267,930)
Fees     (38,054)     (57,624)     (34,956)     (54,440)     (38,167)     (57,851)     (35,065)     (54,622)
Depreciation   (5,604)     (11,834)   (6,517)     (13,300)     (10,854)     (22,165)     (10,760)     (22,516)
Amortization   (1,645)   (2,887)   (564)   (2,083)   (4,123)   (8,968)   (5,562)     (11,240)
Other     (37,148)     (51,190)     (23,805)     (44,173)     (71,695)   (131,352)     (50,334)     (96,400)
    (179,285)   (290,348)   (175,480)   (304,738)   (277,859)   (495,044)   (251,215)   (452,708)
                                 
Impairment loss on trade receivables     3,237     2,236     (18,873)     (34,793)     1,422   (3,329)     (20,897)     (48,115)
                                 
Other operating income (expenses), net                                
Recovery of expenses   16,183   22,515   16,556   32,627   17,065   38,109   16,670   32,590
Civil and tax contingencies (assets or liabilities)   (125,615)   (147,991)     (24,362)     (28,767)   (128,313)   (151,890)     (25,785)     (30,529)
Results with sale and disposal of fixed assets and investments   (8,822)     (10,739)   (1,369)   16,346   (9,044)     (10,610)   (2,480)   15,174
Other   (3,024)     3,585   (3,394)   (2,645)     2,541     2,670   (1,177)     937
    (121,278)   (132,630)     (12,569)   17,561   (117,751)   (121,721)     (12,772)   18,172

The Company incurred a total of expenses with internal research and development of new products of R$31,909 in the Parent Company and in the Consolidated for the six-month period ended June 30, 2025 (R$30,779 in the Parent Company and in the Consolidated for the same period of the previous year), and R$17,403 in the Parent Company and in the Consolidated for the three-month period ended June 30, 2025 (R$15,276 in the Parent Company and in the Consolidated for the same period of the previous year).

 

92 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
27.Financial income (expenses)
      Parent Company   Consolidated
      2025   2024   2025   2024
      Apr - jun   Jan - jun   Apr - jun   Jan - jun   Apr - jun   Jan - jun   Apr - jun   Jan - jun
Financial income                                  
Interest on cash and cash equivalents       157,594     254,104    74,200     141,105     276,425     544,940     170,744     307,656
Income with marketable securities      37,488    79,517    20,267    40,836    41,692    88,157    24,030    50,445
Fair value through profit and loss      37,488    79,517    20,267    40,836    37,488    79,518    20,090    40,659
Amortized cost      -    -    -    -   4,204   8,639   3,940   9,786
Interest on recoverable taxes      37,039    70,034    78,685     164,889    41,561    78,772    78,854     165,176
Interest and financial income on other assets      11,530    23,198    (1,660)    21,408    13,562    27,219   287    25,317
        243,651     426,853     171,492     368,238     373,240     739,088     273,915     548,594
Financial expenses                                  
Interests on loans and borrowings      (443,977)    (865,335)    (424,826)    (836,920)    (492,394)    (964,575)    (479,329)    (941,534)
Interest with related parties     (69,482)    (154,568)    (101,122)    (194,889)    -    -    -    -
Interest on contingencies     (33,371)   (62,304)   (31,889)   (54,547)   (35,001)   (67,658)   (31,889)   (54,548)
Interest on leases     (95,977)    (185,967)   (88,616)    (175,775)    (101,947)    (198,537)   (95,706)    (189,151)
Interest on actuarial liabilities      (7,416)   (14,830)    (6,960)   (13,920)   (11,500)   (23,596)   (14,727)   (27,838)
Taxes on financial income     (16,928)   (25,459)    (9,186)   (18,644)   (17,506)   (26,732)    (9,781)   (20,361)
Adjustment to present value (2)      (263,477)    (480,469)    (174,051)    (373,496)    (247,762)    (445,228)    (139,723)    (322,302)
Other financial expenses     (69,196)    (137,518)   (74,794)    (174,735)   (98,396)    (199,385)    (115,594)    (238,128)
       (999,824)    (1,926,450)    (911,444)    (1,842,926)    (1,004,506)    (1,925,711)    (886,749)    (1,793,862)
Foreign exchange, prices and monetary variations                                  
Exchange rate variation on monetary assets and liabilities and prices       411,418     1,058,675    (1,407,530)    (1,701,620)   (32,692)   (44,888)     127,376    48,165
Foreign exchange of derivatives     (49,779)   1,136     137,567     211,724   (49,779)   1,068     130,736     203,921
Interest and fair value of derivatives     (27,102)   (26,324)   3,123   (29,548)   (27,102)   (26,256)   3,100   (29,904)
Net Monetary Gains or Losses (1)      -    -    -    -    44,803     103,378   (38,456)    95,381
        334,537     1,033,487    (1,266,840)    (1,519,444)   (64,770)    33,302     222,756     317,563
        (421,636)     (466,110)     (2,006,792)     (2,994,132)     (696,036)     (1,153,321)     (390,078)     (927,705)
(1)Effects of monetary correction resulting from operations in hyperinflationary economy.
(2)The adjustment to present value considers the balances of trade accounts receivable and trade accounts payable, and the rate used for the period ended June 30, 2025, was 16.71% p.a. (12.56% p.a. for the period ended June 30, 2024).

 

 

93 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
28.Related parties

The balance of the transactions with related parties are as follows:

    Parent Company
    Accounts receivable   Trade accounts payable   Other rights   Advances and other liabilities
    06.30.25   12.31.24   06.30.25   12.31.24   06.30.25   12.31.24   06.30.25   12.31.24
Auren Energia   -    -     -     (152)   -     -   -     -
Al Khan Foodstuff LLC ("AKF")    156,691     121,815     -    -   -     -   -     -
Al-Wafi Al-Takamol International for Foods Products    668,793     329,766     -    -   -     -   -     -
Al-Wafi Factory    279,552     273,253     -    -     6     -   -     -
Banvit Bandirma Vitaminli   10,355    -     -    -     278     29,065   -     -
BRF Energia S.A.   -    -     (253,326)    (357,870)   -     -   -     -
BRF Foods GmbH   -     170,508     -    -   -     -   -     -
BRF Foods LLC   -    -     -    -     274     -   -     (311)
BRF Global GmbH    408,867     1,665,209     (212,835)   (11,104)   -     -   (3,791,864) (1)   (5,279,524)
BRF Global Company South Africa Proprietary Ltd.   -    -   (389)     (3,786)   -     -   -     -
BRF GmbH   -    -     -    -   -     -   (1,557,777) (2)   (1,561,003)
BRF Japan KK   -    -   (1,046)     (2,144)   -     -   -     -
BRF Korea LLC   -    -     -     (684)   -     -   -     -
BRF Kuwait Food Management Company WLL   23,299    27,951     -    -   -     -   -     -
BRF Shanghai Management Consulting Co. Ltd.   -    -   (394)     (4,717)   -     -   -     -
BRF Singapore Foods PTE Ltd.   -    -   (2,402)     (203)   -     -   -     -
Federal Foods LLC    450,969     238,631     -    -   -     -   -     -
Federal Foods Qatar    256,952     171,384     -    -   -     -    (9)      (9)
Hercosul Alimentos Ltda.   -    20,178     -    -   -    446   -     -
Hercosul International S.R.L.   -    83     -     (4,641)   -     -   -     -
Hercosul Sol. Transp. Ltda.   -    -     -    -   -     -   -     -
Joody Al Sharqiya Food Production Factory LLC   41    76,775   (8,308)    -     1     -   -     -
Mogiana Alimentos S.A.   95,965    16,343     -    -   -    517   -     -
Sadia Alimentos S.A.U.    104,876    -   (244)    -     3,122     -   -     (2,535)
Sadia Chile SpA   -     188,431     -    -   -     45,826   -       (31)
Sadia Uruguay S.A.    216,565   6,563     -    -   40,427    1,146   -       (18,624)
VIP S.A. Empreendimentos e Partic. Imob.     9,234    -     -    -   -         (22,292)     -
Marfrig Global Foods S.A.     7,932    15,044    (59,741)   (36,266)     2,077    582    (295)     (229)
Marfrig Chile S.A.     4,957   3,626     -    -   -     -   -     -
Quickfood S.A.   23,710    24,223     -    -   -     -   -     -
Dicasold S.A.     7,762   1,659     -    -   -     -   -     -
Weston Importers Ltd.   -    -     -    -   -    2,177   -     -
MFG Agropecuária Ltda.   93    -     -    -   -     -   -     -
Agropecuária Jacarezinho Ltda.   35    -     -    -   -     -   -     -
Fazenda São Marcelo Ltda.   31    -     -    -   -     -   -     -
Pampeano Alimentos S.A.     1,344   257   (662)     (114)   -     -   -     -
Total    2,728,023     3,351,699     (539,347)    (421,681)   46,185     79,759   (5,372,237)     (6,862,266)
(1)The amount corresponds to export pre-payments, usual operation between the productive units in Brazil with the wholly-owned subsidiaries that operate as trading companies in the international market.
(2)BRF S.A. performs reimbursement to certain subsidiaries for losses incurred in the normal course of their operations, generating liabilities recorded as Other obligations with Related parties.

 

 

94 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
    Consolidated
    Accounts receivable   Trade accounts payable   Other rights   Advances and other liabilities
    06.30.25   12.31.24   06.30.25   12.31.24   06.30.25   12.31.24   06.30.25   12.31.24
Marfrig Global Foods S.A.    7,932    16,145   (59,741)   (36,266)     2,100    582     (295)    (229)
Marfrig Chile S.A.    4,957   3,626   (38)    -   -     -     -    -
Quickfood S.A.     23,710    24,223    -    -   -     -     -    -
Dicasold S.A.     15,211   1,659    -    -   -     -     -    -
Weston Importers Ltd.    1,410   1,416   (49,086)     (5,587)     179     -     -    -
MFG Agropecuária Ltda.     93    -    -    -   -     -     -    -
Agropecuária Jacarezinho Ltda.     35    -    -    -   -     -     -    -
Fazenda São Marcelo Ltda.     31    -    -    -   -     -     -    -
Pampeano Alimentos S.A.    1,344   257     (662)     (114)   -     -     -    -
Total     54,723    47,326    (109,527)   (41,967)     2,279    582     (295)    (229)

 

95 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
    Parent Company
    Sales   Financial results, net   Purchases   Other operating income (expenses)
    2025   2024   2025   2024   2025   2024   2025   2024
    Apr - jun   Jan - Jun   Apr - jun   Jan - Jun   Apr - jun   Jan - Jun   Apr - jun   Jan - Jun   Apr - jun   Jan - Jun   Apr - jun   Jan - Jun   Apr - jun   Jan - Jun   Apr - jun   Jan - Jun
Auren Energia   27,191     58,749     22,010     41,903   -   -   -   -    -    -   -   -   -    -   -   -
Al Khan Foodstuff LLC ("AKF")    125,648   232,952    1,003    1,003   -   -   -   -    -    -   -   -   -    -   -   -
Al-Wafi Al-Takamol International for Foods Products    545,116   1,140,106     10,026     10,026   -   -   -   -    -    -   -   -   -    -   -   -
Al-Wafi Factory    112,899   211,730    3,663    3,663   -   -   -   -    -    -   -   -   -    -   -   -
BRF Energia S.A.   -     -     -     -   -   -   -   -   (74,806)    (150,059)     (63,491)   (129,795)   -    -   -   -
BRF Global GmbH (1)    374    4,314    3,349,410    7,029,520     (69,437)   (154,476)   (100,147)   (192,840)    -    -   -   -   -    -   -   -
BRF Kuwait Food Management Company WLL    113,874   214,971    1,104    1,104   -   -   -   -    -    -   -   -   -    -   -   -
Federal Foods LLC    492,425   831,423     26,681     26,681   -   -   -   -    -    -   -   -   -    -   -   -
Federal Foods Qatar    130,052   261,762    318    318   -   -   -   -    -    -   -   -   -    -   -   -
Hercosul Alimentos Ltda.   -     -    7,876     16,920   -   -   -   -    -    -   -   -   -    -   -   -
Hercosul International S.R.L.   80     80     -     -   -   -   -   -     (3,097)    (3,097)   -   -   -    -   -   -
Joody Al Sharqiya Food Production Factory LLC   44,579     89,162     -     -   -   -   -   -    -    -   -   -   -    -   -   -
Mogiana Alimentos S.A.   62,183     92,682     12,582     21,544   -   -   -   -    (110)    (110)   -   -   -    -   -   -
Parceiros   41,029     81,026    5,706    5,706   -   -   -   -    -    -   -   -   -    -   -   -
Sadia Alimentos S.A.U.   -     -     -     -   -   -     (46)     (90)    -    -   -   -   -    -   -   -
Sadia Chile SpA    108,415   238,753     68,357    163,354   -   -   -   -    -    -   -   -   -    -   -   -
Sadia Uruguay S.A.   15,075     30,767     10,502     23,909     (45)     (92)   (929)   (1,959)    -    -   -   -   -    -   -   -
BRF Singapura   -     -     -     -   -   -   -   -    -    -   (909)   (909)   -    -   -   -
BRF Japan   -     -     -     -   -   -   -   -    -    -   (336)   (336)   -    -   -   -
BRF Korea   -     -     -     -   -   -   -   -    -    -   (151)   (151)   -    -   -   -
BRF South Africa   -     -     -     -   -   -   -   -    -    -   (218)   (218)   -    -   -   -
BRF Shanghai   -     -     -     -   -   -   -   -    -    -   (411)   (411)   -    -   -   -
Marfrig Global Foods S.A.   20,930     40,874     18,304     33,510     975     5,731   -   -    (189,939)    (300,990)   (202,494)   (276,299)     5,981     12,682     1,410     2,590
Marfrig Chile S.A.     6,196     10,281    4,372     10,840   -   -   -   -   (38)   (38)   (270)   (652)   -    -   -   -
Quickfood S.A.   44,527     83,657     17,031     43,433   -   -   -   -    -    -   -   -   -    -   -   -
Dicasold S.A.   11,878     22,232     -     -   -   -   -   -    -    -   -   -   -    -   -   -
Weston Importers Ltd.   -     -    1,288    1,839   -   -   -   -   (87,405)    (123,295)     (85,164)   (115,252)   -    -   -   -
MFG Agropecuária Ltda.   -     -     -     -   -   -   -   -    -    -   -   -     219   306   -   -
Agropecuária Jacarezinho   -     -     -     -   -   -   -   -    -    -   -   -    98   142     (54)   -
Fazenda São Marcelo   -     -     -     -   -   -   -   -    -    -   -   -     101   142     (54)   -
Pampeano Alimentos S/A     3,726    4,786    249    249   -   -   -   -     (1,546)    (2,500)   (677)   (1,093)   -    -   -   -
Total    1,906,197   3,650,307    3,560,482    7,435,522     (68,507)   (148,837)   (101,122)   (194,889)    (356,941)    (580,089)   (354,121)   (525,116)     6,399     13,272     1,302     2,590

 

(1)As of 2024, BRF S.A. began to consider direct sales to some customers abroad.

 

96 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
    Consolidated
    Sales   Financial results, net   Purchases   Other operating income (expenses)
    2025   2024   2025   2025   2024   2025   2024
    Apr - jun   Jan - Jun   Apr - jun   Jan - Jun   Apr - jun   Jan - Jun   Apr - jun   Jan - Jun   Apr - jun   Jan - Jun   Apr - jun   Jan - Jun   Apr - jun   Jan - Jun
Marfrig Global Foods S.A.    20,930    40,874     18,304     33,510     975   5,731   (227,964)   (339,015)    (202,494)    (276,299)   5,981    12,682   1,410   2,589
Marfrig Chile S.A.   6,196    10,281    4,372     11,452    -    -     (38)     (38)    (270)    (652)    -    -    -    -
Quickfood S.A.    44,527    83,657     17,031     43,433    -    -   -   -   -   -    -    -    -    -
Dicasold S.A.    23,885    46,950     -     -    -    -   -   -   -   -    -    -    -    -
Weston Importers Ltd.   1,405   2,279    1,288    1,839    -    -     (87,405)   (123,295)     (85,164)    (115,252)    -    -    -    -
MFG Agropecuária Ltda.    -    -     -     -    -    -   -   -   -   -     219   306    -    -
Agropecuária Jacarezinho    -    -     -     -    -    -   -   -   -   -    98   142   (54)    -
Fazenda São Marcelo    -    -     -     -    -    -   -   -   -   -     101   142   (54)    -
Pampeano Alimentos S.A.   3,726   4,786    249    249    -    -    (1,546)    (2,500)    (677)    (1,093)    -    -    -    -
Total   100,669   188,827     41,244     90,483     975   5,731   (316,953)   (464,848)    (288,605)    (393,296)   6,399    13,272   1,302   2,589

The Company enters into loan agreements between its controlled subsidiaries to comply with its cash management strategy, respecting market conditions. As of June 30, 2025, the balance of these transactions was R$741,697 (R$1,099,857 as of December 31, 2024).

The Company made contributions related to the post-employment benefit plans of its employees to BRF Previdência, which manages such plans (note 19). Additionally, the Company leased properties owned by BRF Previdência, and for the six-month period ended June 30, 2025, the total amount of lease payments was R$11,475 (R$11,606 for the same period of the previous year), and for the three-month period ended June 30, 2025, it was R$5,733 (R$5,737 for the same period of the previous year).

The Company maintains other transactions with related parties resulting from guarantees, transferences and donations to related associations and institutes, as well as leasing and other commercial transactions with related people and entities. Such transactions are compliant with the Related Party Transactions Policy and are not relevant, individually or in aggregate.

28.1Management remuneration

The total remuneration and benefits expenses with board members, statutory directors and the head of internal audit are set forth below:

 

    Parent Company and Consolidated
    2025   2024
    Apr - jun   Jan - jun   Apr - jun   Jan - jun
Salary and profit sharing   24,794    46,156   37,176    52,580
Short-term benefits (1)   92   159   49    89
Private pension     249   468     198   384
Termination benefits     580   1,321     1,027   2,054
Share-based payment     7,258   9,233     9,423    13,938
    32,973    57,337   47,873    69,045
(1)Comprises: medical assistance, educational expenses and others.

Additionally, the executive officers (non-statutory) received, among remuneration and benefits, a total of R$10,111 for the six-month period ended June 30, 2025 (R$10,264 for the same period of the previous year), and R$6,087 for the three-month period ended June 30, 2025 (R$6,735 for the same period of the previous year).

 

 

97 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
29.Commitments

In the normal course of its business, the Company enters into long-term agreements with third parties, which mainly include the acquisition of secondary materials, energy inputs, storage and industrialization services, among others to support its activities. In these agreements, the agreed prices may be fixed or to be fixed. These agreements contain termination clauses for non-compliance with essential obligations, and generally, the minimum contractually agreed is purchased, and for this reason, there are no liabilities recorded in addition to the amount that is recognized on an accrual basis. On June 30, 2025, firm purchase commitments totaled R$4,515,747 in the Parent Company and R$4,921,856 in the Consolidated (R$4,164,738 in the Parent Company and R$4,523,501 in the Consolidated on December 31, 2024).

30.Transactions that do not involve cash

The following transactions did not involve cash or cash equivalents during the period ended June 30, 2025:

(i)Capitalized loan interest: for the six-month period ended June 30, 2025, amounted to R$31,381 in the Parent Company and R$31,722 in the Consolidated (R$18,320 in the Parent Company and R$19,246 in the Consolidated for the same period of the previous year), and for the three-month period ended June 30, 2025, amounted to R$20,409 in the Parent Company and R$20,506 in the Consolidated (R$8,884 in the Parent Company and R$9,423 in the Consolidated for the same period of the previous year).
(ii)Addition of lease by right-of-use assets and respective lease liability: for the six-month period ended June 30, 2025, amounted to R$480,152 in the Parent Company and R$543,972 in the Consolidated (R$520,980 in the Parent Company and R$751,484 in the Consolidated for the same period of the previous year), and for the three-month period ended June 30, 2025, amounted to R$188,425 in the Parent Company and R$211,316 in the Consolidated (R$210,294 in the Parent Company and R$264,756 in the Consolidated for the same period of the previous year).
(iii)Reclassification of PIS and COFINS on property, plant and equipment: R$219,884 for the six-month period ended June 30, 2025 in the Parent Company and in the Consolidated (note 9).
31.Events after the reporting period

The events after the reporting period related to the AFAC at Gelprime and the approval of the share incorporation transaction by the Extraordinary General Meeting (EGM) are disclosed in Notes 1.5 and 1.7, respectively

31.1Issuance of debentures

On August 4, 2025, the Company settled its sixth issuance of simple, non-convertible into shares, unsecured debentures, in five series for private placement, in the total amount of R$2,000,000.

The debentures were subject to Private Placement with ECO Securitizadora de Direitos Creditórios do Agronegócio S.A. (“Securitization Company”), in the context of its 403rd issuance of agribusiness receivables certificates, in four series, backed by agribusiness credit rights arising from the debentures, for public distribution.

Issuances costs of R$76,150 are recognized in the Statement of Income over the term of the debt, according to the effective interest rate method.

31.2Tariff Policy – United States of America

The Company has assessed the new tariff rules implemented by the government of the United States of America and concluded that, within the scope of its operations, no impacts were identified up to the date of approval of these Interim Financial Information.

 

 

 

98 

Interim Financial Information, Individual and Consolidated | June 30, 2025

  
32.Approval of the Financial Statements

The financial statements were approved and the issuance authorized by the Board of Directors on August 14, 2025.

BOARD OF DIRECTORS  
   
Global President Office (Non-Independent) Marcos Antonio Molina dos Santos
Vice-Chairman (Non-Independent) Márcia Aparecida Pascoal Marçal dos Santos
Non-Independent Member  Marcos Fernando Marçal dos Santos
Non-Independent Member  Márcio Hamilton Ferreira
Independent Member Eduardo Augusto Rocha Pocetti
Non-Independent Member Sérgio Agapito Lires Rial
Independent Member  Pedro de Camargo Neto
Independent Member Augusto Marques da Cruz Filho
Independent Member  Flavia Maria Bittencourt
   
FISCAL COUNCIL  
   
Member Antonio Mathias Nogueira Moreira
Member Ricardo Florence dos Santos
Member Alexandre Eduardo De Melo
   
AUDIT AND INTEGRITY COMMITTEE  
   
Comittee Coordinator Augusto Marques da Cruz Filho
Member Eduardo Augusto Rocha Pocetti
External Member Esmir Oliveira
   
   
BOARD OF EXECUTIVE OFFICERS  
   
Global Chief Executive Officer  Miguel de Souza Gularte
Chief Financial and Investor Relations Officer Fábio Luis Mendes Mariano
Director Vice-President of Industrial Operations and Logistics  Artemio Listoni
Director Vice-President of Agribusiness and Quality Fabio Duarte Stumpf
Director Vice-President of Legal Brazil, Tax, People and Compliance Heraldo Geres
Director Vice-President of International Markets and Planning Leonardo Campo Dallorto
Director Vice-President of Brazil Commercial Manoel Reinaldo Manzano Martins Junior
Director Vice-President of Marketing and New Business Marcel Sacco
   
   
   
Marcos Roberto Badollato  
Accounting Director - CRC 1SP219369/O-4  

 

 

99 

 

 

 

 

(Free translation from the original issued in Portuguese. In the event of any discrepancies, the Portuguese language version shall prevail.)

 

Independent auditor’s report on review of interim financial information

 

Grant Thornton Auditores Independentes Ltda.

Av. Eng. Luiz Carlos Berrini, 105 - 12o andar Itaim Bibi, São Paulo (SP) Brasil

T +55 11 3886-5100

www.grantthornton.com.br      


 

 

To the Shareholders, Board of Directors and Management of

BRF S.A.

Itajaí – SC

Introduction

We have reviewed the accompanying individual and consolidated interim financial information of BRF S.A. (the Company), comprised in the Quarterly Information Form for the quarter ended June 30, 2025, comprising the balance sheet as of June 30, 2025 and the respective statements of income and comprehensive income for the periods of three and six months then ended, and changes in shareholders’ equity and cash flows for the period of six months then ended, including the explanatory notes.

Management is responsible for the preparation of the individual and consolidated interim financial information in accordance with NBC TG 21 – Interim Financial Reporting and with the international standard IAS 34 – Interim Financial Reporting, as issued by the International Accounting Standards Board (Iasb), such as for the presentation of these information in accordance with the standards issued by the Brazilian Securities and Exchange Commission, applicable to the preparation of interim financial information. Our responsibility is to express a conclusion on this interim financial information based on our review.

Review scope

We conducted our review in accordance with the Brazilian and International standards on reviews of interim information (NBC TR 2410 – Review of Interim Financial Information Performed by the Independent Auditor of the Entity and ISRE 2410 – Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). The review of interim information consists of making inquiries, primarily of persons responsible for the financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the standards on auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

 

100 

 

 

Conclusion on the individual and consolidated interim financial information

Based on our review, nothing has come to our attention that causes us to believe that the individual and consolidated interim financial information included in the quarterly information form referred to above has not been prepared, in all material respects, in accordance with NBC TG 21 and IAS 34 applicable to the preparation of interim financial information and presented in accordance with the standards issued by the Brazilian Securities and Exchange Commission.

Other matters

Statements of value added

The quarterly information referred to above includes the individual and consolidated statements of value added for the period of six months ended June 30, 2025, prepared under the responsibility of the Company's management and presented as supplementary information for the purposes of IAS 34. These statements were submitted to the same review procedures in conjunction with the review of the Company's interim financial information to conclude they are reconciliated to the interim financial information and to the accounting records, as applicable, and whether the structure and content are in accordance with the criteria established in the
NBC TG 09 – Statement of Value Added standard. Based on our review, nothing has come to our attention that causes us to believe that the accompanying statements of value added were not prepared, in all material respects, in accordance to the criteria defined in that standard and consistently in relation to the individual and consolidated interim financial information taken as a whole.

São Paulo, August 14, 2025

Grant Thornton Auditores Independentes Ltda.
CRC 2SP-025.583/O-1

 

Octavio Zampirollo Neto

Accountant CRC 1SP-289.095/O-3

 

 

101 

 

Opinion of the Audit and Integrity Committee

The Audit and Integrity Committee of BRF S.A., in fulfilling its statutory and legal duties, examined the interim financial information (Parent Company and Consolidated) for the six-month period ended on June 30, 2025, the Management Report and the review report issued without modification by Grant Thornton Auditores Independentes Ltda.

There were no situations of significant divergence between the Company's Management, the independent auditors and the Audit Committee in relation to the Company's interim financial information.

Based on the documents reviewed and the explanations provided, the members of the Audit and Integrity Committee, undersigned, issued the opinion that the interim financial information are in a position to be approved.

 

São Paulo, August 14, 2025.

 

Augusto Marques da Cruz Filho

Coordinator

Eduardo Augusto Rocha Pocetti

Member

Esmir de Oliveira

Member

 

 

102 

 

Opinion of Executive Board on the Consolidated Financial Statements and Independent Auditor’s Report

In compliance with the dispositions of article 27, §1, sections V and VI, of the CVM Resolution Nº 80/22, the executive board of BRF S.A. states that:

(i)reviewed, discussed and agreed with the Company’s interim financial information for the fiscal for the six-month period ended on June 30, 2025, and
(ii)reviewed, discussed and agreed with the opinions expressed in the audit report issued by Grant Thornton Auditores Independentes Ltda. for the six-month period ended on June 30, 2025.

 

São Paulo, August 14, 2025.

 

Miguel de Souza Gularte

Global Chief Executive Officer

Fábio Luis Mendes Mariano

Chief Financial and Investor Relations Officer

Artemio Listoni

Director Vice-President of Industrial Operations and Logistics

Fabio Duarte Stumpf

Director Vice-President of Agribusiness and Quality

Heraldo Geres

Director Vice-President of Legal Brazil, Tax, People and Compliance

Leonardo Campo Dallorto

Director Vice-President of International Markets and Planning

Manoel Reinaldo Manzano Martins Junior

Director Vice-President of Brazil Commercial

Marcel Sacco

Director Vice-President of Marketing and New Business

 

 

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