Provisions for Legal Proceedings

3 Months Ended

Mar. 31, 2026

Provisions for Legal Proceedings [Abstract]

19 Provisions for legal proceedings

The Group is party to several lawsuits arising in the ordinary course of business for which provisions are recognized for those deemed probable based on estimated costs determined by management as follows:

Breakdown:

	March 31, 2026		December 31, 2025
Current liabilities		231,209		159,217
Non-current liabilities		219,022		209,358
		450,231		368,575

	March 31, 2026								December 31, 2025
	Labor		Civil		Tax and Social Security		Total		Labor		Civil		Tax and Social Security		Total
Brazil		105,394		61,554		51,983		218,931		97,504		59,075		52,700		209,279
USA		—		143,009		88,200		231,209		—		71,017		88,200		159,217
Others jurisdictions		81		—		10		91		69		—		10		79
Total		105,475		204,563		140,193		450,231		97,573		130,092		140,910		368,575

19.1 Labor - Changes in provisions:

Jurisdiction	Balance at January 1, 2026		Additions, reversals and changes in estimates		Payments			Indexation		Exchange rate variation		Balance at March 31, 2026
Brazil		97,504		22,568		(23,534	)		3,553		5,303		105,394
Other jurisdictions		69		10		—			—		2		81
Total		97,573		22,578		(23,534	)		3,553		5,305		105,475

Jurisdiction	Balance at January 1, 2025		Additions, reversals and changes in estimates		Payments			Indexation		Exchange rate variation			Balance at March 31, 2025
Brazil		87,075		12,187		(14,107	)		1,948		6,825			93,928
Other jurisdictions		52		38		—			—		(37	)		53
Total		87,127		12,225		(14,107	)		1,948		6,788			93,981

19.2 Civil - Changes in provisions:

Jurisdiction	Balance at January 1, 2026		Additions, reversals and changes in estimates		Payments			Indexation		Exchange rate variation		Balance at March 31, 2026
Brazil		59,075		4,269		(5,308	)		320		3,198		61,554
USA		71,017		74,645		(2,653	)		—		—		143,009
Total		130,092		78,914		(7,961	)		320		3,198		204,563

Jurisdiction	Balance at January 1, 2025		Additions, reversals and changes in estimates		Payments			Indexation		Exchange rate variation			Balance at March 31, 2025
Brazil		59,796		831		(4,735	)		2,076		4,654			62,622
USA		280,804		83,549		(139,709	)		—		1			224,645
Others jurisdictions		44		18		(1	)		—		(16	)		45
Total		340,644		84,398		(144,445	)		2,076		4,639			287,312

Civil legal proceedings (probable loss):

United States

The civil legal proceedings involve class-action lawsuits alleging violations of federal and state antitrust laws, as well as laws governing unfair competition, unjust enrichment, unusual business practices, and consumer protection related to beef, pork and chicken sales, as well as Canada and US State Matters.

The Group, together with its legal department and external counsel, continues to monitor the progress of the antitrust cases and believes that the accounting provisions recorded as of the date of these unaudited condensed consolidated financial information are sufficient to cover the associated risk.

19.3 Tax and Social Security - Changes in provisions:

Jurisdiction	Balance at January 1, 2026		Additions, reversals and changes in estimates			Payments			Indexation		Exchange rate variation		Balance at March 31, 2026
Brazil		52,700		(4,675	)		(789	)		1,914		2,833		51,983
USA		88,200		—			—			—		—		88,200
Other jurisdictions		10		—			—			—		—		10
Total		140,910		(4,675	)		(789	)		1,914		2,833		140,193

Jurisdiction	Balance at January 1, 2025		Additions, reversals and changes in estimates			Payments			Indexation		Exchange rate variation			Balance at March 31, 2025
Brazil		68,516		(3,560	)		(534	)		4,982		5,386			74,790
Other jurisdictions		1,176		507			(507	)		—		(449	)		727
Total		69,692		(3,053	)		(1,041	)		4,982		4,937			75,517

Legal proceedings (possible loss):

In the three-month period ended March 31, 2026, the Company did not identify any significant changes in the amount of the legal proceedings which the probability of loss is considered possible.

Brazil

Profits Abroad

Between the calendar years 2006 and 2021, the Company was assessed for charges related to the taxation of profits earned abroad that allegedly should have been included in the IRPJ and CSLL tax base, also encompassing disallowances of tax payment slips paid by foreign subsidiaries, under the argument that they could not have been used to offset IRPJ and CSLL due in Brazil. These assessments also include the imposition of default penalties, isolated fines, and interest. The Company clarifies that a significant portion of the IRPJ and CSLL charges on foreign profits relates to earnings from subsidiaries located in jurisdictions with which Brazil has tax treaties to avoid double taxation. Additionally, a relevant portion of the charges involves disputes regarding formal requirements imposed by tax authorities for the consolidation of foreign subsidiary results, whether direct or indirect. The Company disagrees with the criteria applied by the tax authorities and has filed a defense. For nearly all of the assessed amounts, the Company is defending itself in the administrative sphere and is awaiting judgment. Management assessed relevant tax decisions to identify potential discrepancies with the tax positions adopted by the Company. Based on this analysis and considering legal opinions and applicable case law, a provision of US$649 million was recognized regarding differences in the tax treatment of profits from subsidiaries in countries with international treaties, recorded and reducing the heading of recoverable taxes, reflecting the probability of future realization of these amounts.