v3.26.3
Risk management and financial instruments
 9 Months Ended
Sep. 30, 2026
Disclosure of risk management strategy related to hedge accounting [abstract]  
Risk management and financial instruments Risk management and financial instruments
Financial instruments are recognized in the consolidated financial statements as follows:
NotesFair value hierarchySeptember 30, 2026December 31, 2025
Assets
Fair value through profit or loss (1)
Financial / Overnight investments3Level 21,557,137 1,887,853 
National treasury bills3Level 1161,464 123,204 
Derivative assetsLevel 237,724 155,441 
Fair Value through Other Comprehensive Income
Investment in financial assets at fair value3Level 148,877 49,908 
Derivative assetsLevel 251,348 161 
Amortized cost (2)
Cash at banks32,447,345 2,557,740 
CME Margin investments336,648 105,993 
Trade accounts receivable43,273,509 4,231,924 
Dividends Receivable— 1,465 
Related party receivables838,086 41,231 
Financial investments352,030 45,780 
Total7,704,168 9,200,700 
Liabilities
Amortized cost (2)
Loans and financing16(23,608,363)(21,090,568)
Trade accounts payable and supply chain finance15(7,177,344)(7,332,559)
Debt with related party8(123,608)(190,998)
Lease12.2(1,859,123)(1,767,285)
Dividends Payable(11)— 
Fair value through profit or loss
Derivative liabilitiesLevel 2(199,751)(267,214)
Fair value through Other Comprehensive Income
Derivative liabilitiesLevel 2(3,746)(3,567)
Total(32,971,946)(30,652,191)
(1)CDBs are updated at the effective rate but have a short-term and negotiated with financial institutions, and their recognition is similar at fair value; national treasury bill is recognized at fair value.
(2)Mainly comprise loans and trade accounts receivables. Trade accounts receivable are classified as current assets and presented net of expected credit losses.
Fair value of assets and liabilities: Financial assets and financial liabilities are offset and presented on a net basis when there is a legally enforceable right to offset the recognized amounts and an intention to settle them on a net basis or to realize the asset and settle the liability simultaneously. Fair value measurements are classified into hierarchy levels based on the significance of the inputs used in determining fair value, as defined below:
Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 – valuation techniques using observable inputs for the asset or liability, either directly or indirectly, other than quoted prices included within Level 1;
Level 3 – valuation techniques using unobservable inputs for the asset or liability.
Fair value of assets and liabilities carried at amortized cost: The fair value of the Notes (Bonds) under Rule 144-A and Regulation S, are estimated using the closing sale price of these securities informed by a financial newswire on September 30, 2026 and December 31, 2025, considering there is an active market for these financial instruments. The carrying amount of the remaining fixed-rate loans approximates fair value since the interest rate market, the Group's credit quality, and other market factors have not significantly changed since entering into the loans. The carrying amount of variable-rate loans and financings approximates fair value given the interest rates adjusted for changes in market conditions and the quality of the Group’s credit rating has not substantially changed. For all other financial assets and liabilities,
carrying amount approximates fair value due to the short duration of the instruments. As of September 30, 2026, the outstanding principal amount of the Notes (Bonds) issued under Rule 144A and Regulation S was US$19,662,230 (US$18,052,688 on December 31, 2025) and the estimated fair value was US$18,182,270 (US$18,157,182 on December 31, 2025).
Risk management:
In its operational routine, the Group is exposed to various market, credit, and liquidity risks. These risks are disclosed in the financial statements as of December 31, 2025. There were no changes in the nature of these risks during the current quarterly reporting period. The following section presents the risks and operations to which the Group is exposed in the current period. Additionally, a sensitivity analysis is provided for each type of risk, showing the potential impact on Financial Results under hypothetical changes: CDI and other rates at 25% and 50%, and currency and commodity exposure at 15% and 30% in the relevant risk variables. For the probable scenario, the Company deems it appropriate to use the Value at Risk (VaR) methodology with a 99% confidence interval (CI) and a one-day horizon.
a.Interest rate risk
The Group understands that the quantitative data referring to the Group's interest rate exposure risk on September 30, 2026 and December 31, 2025, are in accordance with the Financial and Commodity Risk Management Policy and are representative of the exposure incurred during the period. For informational purposes and in accordance with our Financial and Commodities Risk Management Policy, the notional amounts of assets and liabilities exposed to floating interest rates are presented below:
September 30, 2026December 31, 2025
Net exposure to the CDI rate:
CRA - Agribusiness Credit Receivable Certificates(138,069)(54,231)
Credit note - export— (410)
Rural - Credit note(205,139)(114,282)
Related party transactions(102,646)(105,892)
CDB-DI (Bank certificates of deposit)831,847 727,695 
CME Margin investments36,648 105,760 
Treasury bills118,871 75,286 
Subtotal541,512 633,926 
Derivatives (Swap)(336,690)(922,938)
Total204,822 (289,012)
Net exposure to the IPCA rate:
Treasury bills42,593 47,920 
CRA - Agribusiness Credit Receivable Certificates(2,171,733)(2,165,193)
Debentures(75,667)— 
Related party transactions17,124 (43,875)
Subtotal(2,187,683)(2,161,148)
Derivatives (Swap)281,624 805,029 
Total(1,906,059)(1,356,119)
Liabilities exposure to the SOFR rate:
Export credit note— (254,903)
Prepayment - exchange agreement(150,330)— 
Working Capital - USD(1,957)(11,691)
Total(152,287)(266,594)
Liabilities exposure to the Euribor rate:
Working Capital - EUR(45,467)(55,348)
Revolving credit facility(50,242)(33,701)
Total(95,709)(89,049)
Sensitivity analysis and derivative financial instruments breakdown:
Scenario (I) VaR 99% I.C. 1 dayScenario (II) Interest rate variation - 25%Scenario (III) Interest rate variation - 50%
Contracts exposureRiskCurrent scenarioRateEffect on incomeRateEffect on incomeRateEffect on income
CDIDecrease13.65 %13.58 %(150)10.24 %(6,989)6.83 %(13,979)
IPCAIncrease 4.22 %4.23 %(117)5.28 %(20,109)6.33 %(40,218)
SOFRIncrease 3.90 %3.90 %(4)4.88 %(1,485)5.85 %(2,970)
EuriborIncrease3.33 %3.33 %(3)4.16 %(797)4.99 %(1,593)
(274)(29,380)(58,760)
Details of derivative instruments (Swap):
September 30, 2026December 31, 2025
InstrumentRisk factorMaturityNotionalFair value (Asset) - US$Fair value (Liability) - US$Fair valueNotionalFair value (Asset) - US$Fair value (Liability) - US$Fair value
SwapIPCA2031- 2037218,189 281,624 (336,690)(55,066)672,843 805,029 (922,938)(117,909)
b1.Exchange rate risk:
Below are presented the risks related to the most significant exchange rates fluctuation given the relevance of these currencies in the Group’s operations and the stress analysis scenarios and VaR to measure the total exposure as well as the cash flow risk with B3 and the Chicago Mercantile Exchange. The Group discloses these exposures considering the fluctuations of a exchange rate in particular towards the functional currency of each subsidiary.
USDEURGBP
September 30, 2026December 31, 2025September 30, 2026December 31, 2025September 30, 2026December 31, 2025
Operating (including cash and cash equivalents, trade accounts receivable and sales orders)3,502,881 4,244,622 918,109 483,608 95,339 123,168 
Financial (including loans and financing)(713,214)(369,538)(559,697)(1,525)(955)(191)
TOTAL EXPOSURE2,789,667 3,875,084 358,412 482,083 94,384 122,977 
Derivatives619,922 6,334 55,882 1,276 (64,425)(67,532)
NET EXPOSURE3,409,589 3,881,418 414,294 483,359 29,959 55,445 
b1.Sensitivity analysis and derivative financial instruments breakdown:
b1.1USD - American dollars (amounts in thousands of US$):
Current exchange rateScenario (I) VaR 99% C.I. 1 dayScenario (II) Interest rate variation - 15%Scenario (III) Interest rate variation - 30%
Exposure of US$RiskExchange rateEffect on incomeExchange rateEffect on incomeExchange rateEffect on income
OperatingDepreciation1.00 0.98 (58,044)0.85 (525,429)0.70 (1,050,864)
FinancialAppreciation1.00 1.02 (11,818)1.15 (106,983)1.30 (213,964)
DerivativesDepreciation1.00 0.98 (10,272)0.85 (92,988)0.70 (185,977)
(80,134)(725,400)(1,450,805)
b1.2EUR - EURO (amounts in thousands of US$):
Scenario (I) VaR 99% I.C. 1 dayScenario (II) Interest rate variation - 15%Scenario (III) Interest rate variation - 30%
Exposure of US$RiskCurrent exchange rateExchange rateEffect on incomeExchange rateEffect on incomeExchange rateEffect on income
OperatingDepreciation1.13 1.12 (12,854)0.96 (137,716)0.79 (275,433)
FinancialAppreciation1.13 1.15 (7,836)1.30 (83,955)1.47 (167,909)
DerivativesDepreciation1.13 1.12 (782)0.96 (8,382)0.79 (16,765)
(21,472)(230,053)(460,107)
b1.3GBP - British Pound (amounts in thousands of US$):
Scenario (I) VaR 99% I.C. 1 dayScenario (II) Interest rate variation - 15%Scenario (III) Interest rate variation - 30%
Exposure of US$RiskCurrent exchange rateExchange rateEffect on incomeExchange rateEffect on incomeExchange rateEffect on income
OperatingDepreciation1.33 1.31 (1,368)1.13 (14,301)0.93 (28,602)
FinancialAppreciation1.33 1.35 (14)1.53 (143)1.72 (286)
DerivativesAppreciation1.33 1.35 (925)1.53 (9,664)1.72 (19,327)
(2,307)(24,108)(48,215)
b 1.4 Derivative financial instruments outstanding:
September 30, 2026December 31, 2025
InstrumentRisk factorNatureNotional (US$)Fair valueNotional
(US$)		Fair value
Future ContractAmerican dollarLong9,716 96 241,445 (1,814)
Deliverable ForwardsAmerican dollarShort(732,483)(4,719)(278,582)13,069 
Non-Deliverable ForwardsAmerican dollarLong1,342,689 (14,050)43,471 (4,467)
Future ContractEuroShort(76,635)74 (79,419)62 
Deliverable ForwardsEuroLong149,617 (2,345)103,646 (2,039)
Non-Deliverable ForwardsEuroShort(17,100)41 (22,591)(55)
Future ContractBritish poundShort(40,462)(94)(40,676)72 
Deliverable ForwardsBritish poundShort(23,963)123 (26,856)129 
c.Commodity price risk
The Group operates globally (across the entire livestock protein chain and related business) and during the regular course of its operations is exposed to price fluctuations in feeder cattle, live cattle, lean hogs, corn, soybeans, and energy, especially in the North American, Australian and Brazilian markets. Commodity markets are characterized by volatility arising from external factors including climate, supply levels, transportation costs, agricultural policies and storage costs, among others. The Risk Management Department is responsible for mapping the exposures to commodity prices of the Company and proposing strategies to the Risk Management Committee, in order to mitigate such exposures.
Biological assets are significant raw materials for the Group’s operations. To secure future supply, the Group enters into forward contracts with suppliers and uses derivative instruments, primarily futures contracts, to mitigate the related exposures, including the impact of price fluctuations on inventories and sales contracts. The Group considers historical average expenditure on materials to be indicative of the operating exposure to be hedged in connection with firm commitments.
c1.Position balance in commodities and corn contracts:
Exposure in Commodities (Live Stock) - Expressed in contract quantitySeptember 30, 2026December 31, 2025
OPERATING
Firm contracts13,397 31,200 
Subtotal13,397 31,200 
DERIVATIVES
Future contracts5,774 7,348 
Deliverable Forwards(13,183)(41,942)
Non Deliverable Forwards(772,547)— 
Subtotal(779,956)(34,594)
NET EXPOSURE(766,559)(3,394)
Sensitivity analysis as of September 30, 2026:
Scenario (I) VaR 99% I.C. 1 dayScenario (II) Interest rate variation - 15%Scenario (III) Interest rate variation - 30%
ExposureRiskCurrent pricePriceEffect on incomePriceEffect on incomePriceEffect on income
OperatingDecrease79 78 (10,520)67 (157,797)55 (315,594)
DerivativesIncrease46 47 (10,594)53 (158,914)60 (317,828)
(21,114)(316,711)(633,422)
Derivatives financial instruments breakdown:
September 30, 2026December 31, 2025
InstrumentRisk factorNatureQuantityFair valueQuantityFair value
Future ContractsCommodities (Live stocks)Short5,774 317 7,348 (346)
Deliverable ForwardsCommodities (Live stocks)Short(13,183)38,817 (41,942)(93,782)
Non-Deliverable ForwardsCommodities (Live stocks)Short(772,547)(11,379)— — 
Exposure in Commodities (Grains and others) - Expressed in contract quantitySeptember 30, 2026December 31, 2025
OPERATING
Purchase orders9,148 5,403 
Subtotal9,148 5,403 
DERIVATIVES
Future B333,434 17,515 
Future CME(100)155 
Deliverable Forwards(30,031)32,783 
Non Deliverable Forwards713,196 — 
Subtotal716,499 50,453 
NET EXPOSURE725,647 55,856 
Sensitivity analysis as of September 30, 2026:
Scenario (I) VaR 99% I.C. 1 dayScenario (II) Interest rate variation - 15%Scenario (III) Interest rate variation - 30%
ExposureRiskCurrent pricePriceEffect on incomePriceEffect on incomePriceEffect on income
OperatingIncrease6 6 (135)7 (2,019)8 (4,038)
DerivativesIncrease13 13 (5,234)15 (78,510)17 (157,020)
(5,369)(80,529)(161,058)
Derivatives financial instruments breakdown:
September 30, 2026December 31, 2025
InstrumentRisk factorNatureQuantityFair valueQuantityFair value
Future ContractsCommodities (grains and others)Long33,434 (7,435)17,515 (170)
Deliverable ForwardsCommodities (grains and others)Long(30,031)(21,913)32,783 46,621 
Future CMECommodities (grains and others)Short(100)70 155 (45)
Non Deliverable ForwardsCommodities (grains and others)Long713,196 (2,357)— — 
c2.Hedge accounting:
c2.1. Effects of hedge instruments on the financial information: 
The indirect subsidiary Seara Alimentos Ltda. applies hedge accounting for grain purchase, aiming at bringing stability to the subsidiary's results. The designation of these instruments is based on the guidelines outlined in the Financial and Commodity Risk Management Policy defined by the Risk Management Committee and approved by the Board of Directors.
Below is shown the effects on income for the period, on other comprehensive income and on the statement of financial position of derivative financial instruments contracted for hedging exchange rates, commodity prices and interest rates (cash flow and fair value hedges):
September 30, 2026December 31, 2025
Hedge resultLiabilityOther comprehensive incomeLiabilityOther comprehensive income
Grain hedge948 1,064 (15)(854)
d.Liquidity risk
The table below shows the contractual obligation amounts from financial liabilities of the Company according to their maturities:
September 30, 2026December 31, 2025
Less than 1 yearBetween 1 and 3
years		Between 4 and 5
years		More than 5 yearsTotalLess than 1 yearBetween 1 and 3
years		Between 4 and 5
years		More than 5 yearsTotal
Trade accounts payable and supply chain finance7,177,344 — — — 7,177,344 7,332,559 — — — 7,332,559 
Loans and financing1,421,378 1,088,580 1,540,287 19,558,118 23,608,363 833,085 249,115 794,458 19,213,910 21,090,568 
Estimated interest on loans and financing (1)
1,306,453 2,813,961 1,207,211 15,688,894 21,016,519 1,265,226 2,425,415 2,377,113 15,237,492 21,305,246 
Derivatives liabilities148,284 55,213 — — 203,497 156,405 114,376 — — 270,781 
Payments of leases378,447 600,869 392,818 853,454 2,225,588 354,887 520,701 351,036 861,409 2,088,033 
Commodities and energy forward purchase contracts250,399 15,952,387 8,216,350 1,427,845 25,846,981 140,956 13,912,887 11,252,506 2,614,618 27,920,967 
(1)Includes interest on all loans and financing outstanding. Payments are estimated for variable rate debt based on effective interest rates on September 30, 2026 and December 31, 2025. Payments in foreign currencies are estimated using the September 30, 2026 and December 31, 2025 exchange rates.
The Group has future commitment for purchase of grains and cattle whose balances as of September 30, 2026 in the amount of US$25.8 billion (US$27.9 billion on December 31, 2025).
The Group has securities pledged as collateral for derivative transactions with the commodities and futures whose balance as of September 30, 2026 is in the amount of US$102,709 (US$159,562 on December 31, 2025). This guarantee is larger than its collateral.
The interest payments on variable interest rate loans and bond issues in the table above reflect market forward interest rates at the reporting date and these amounts may change as market interest rates change. The future cash flows on derivative instruments may be different from the amount in the above table as interest rates and exchange rates or the relevant conditions underlying the contingency change. Except for these financial liabilities, it is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.