(MENAFN- The Rio Times) Brazil's earnings day offered a simple trio for global readers: a car-rental operator (Movida) showing that execution still trumps headwinds; a protein champion (MBRF, the Marfrig-BRF combination) proving that scale is real but must be paid down; and a beauty retailer (Natura) wrestling with integration, margins, and cash.

The real story behind the numbers is how companies are protecting profitability in a slower economy: smarter pricing and cost control, portfolio breadth to ride uneven cycles, and liquidity discipline to keep optionality alive.
Movida - Vehicle rentals with a disciplined operating engine
What it does: car rentals (retail and corporate), fleet management, and used-car sales.

Story and numbers: Movida 's net income was R$ 70 million ($13 million), down year on year, but operations beat expectations as consolidated EBITDA hit R$ 1.48 billion ($274 million).

The rent-a-car unit led the outperformance, with Portugal a clear bright spot, while Brazil contributed modest gains. A heavier-than-hoped financial result offset part of the operating strength, partly cushioned by a tax effect of R$ 11 million ($2 million). Leverage eased to 2.7x.

Management's levers-AI pricing, in-house“PitStop” maintenance, and digital processes-kept unit costs in check, and used-car margins held up. Guidance for 4Q25 net income of R$ 75–90 million ($14–17 million) points to momentum.



Behind the story: The rental model is proving it can protect margin even as rates bite. The watch item is financing cost; if it normalizes, today's operating gains can translate into stronger free cash flow.
MBRF - Global protein scale, but deleveraging will set the valuation
What it does: one of the world's largest protein platforms (beef, poultry, processed foods) after the Marfrig-BRF combination.

Story and numbers: Net revenue reached R$ 42 billion ($7.8 billion). Adjusted EBITDA was R$ 3.5 billion ($648 million).

Adjusted net income printed R$ 680 million ($126 million). Volumes hit 2.10 million tonnes, with South America beef and BRF's processed portfolio doing the lifting.

Net debt rose to R$ 48.3 billion ($8.9 billion) after dividends of R$ 3.8 billion ($704 million) and buybacks of R$ 731 million ($135 million); free cash flow was R$ 383 million ($71 million). The board expanded share repurchases by up to 64.6 million shares through March 2027.

Behind the story: The platform is working-diversified proteins, geographies, and brands-but the market will reward consistent deleveraging and proof that poultry and U.S. beef cycles are normalizing.

The halal push (Sadia Halal) adds a medium-term growth and monetization option; debt trajectory remains the swing factor.
Natura - Beauty retail under pressure; execution and cash are the near-term tests
What it does: direct-to-consumer beauty across Latin America and select international markets.

Story and numbers: Adjusted EBITDA fell to R$ 577 million ($107 million); the company posted a net loss of R$ 119 million ($22 million). Free cash flow was negative R$ 47 million ($9 million).

Net debt was about R$ 4.0 billion ($741 million), taking leverage close to 3x. Management reiterated its 2025 EBITDA -margin expansion target, but Wave 2 integration (notably Mexico and Argentina) and a softer Brazil consumer hurt sell-out and margins.

Transformation costs for 2025 may reach up to R$ 483 million ($89 million), implying as much as R$ 160 million ($30 million) in 4Q if the ceiling is met. The planned sale of Avon International by 1Q26 lowers structural risk but introduces timing risk.

Behind the story: This is a rebuild. Until Brazil sell-out stabilizes, Wave 2 milestones land, and cash generation turns positive, upside is capped-even with valuable brands.
The takeaway
Execution can still beat macro (Movida), scale must be matched by balance-sheet progress (MBRF), and turnarounds demand patience and cash (Natura). For global investors, Brazil's corporate winners are those converting operational ingenuity into durable free cash flow.

MENAFN11112025007421016031ID1110329132