Minerva (BEEF3) Q1 2025 earnings summary

Executive summary

• Achieved record net revenue of BRL 11.2 billion and record gross revenue of BRL 11.9 billion in Q1 2025, with EBITDA of BRL 963 million (8.6% margin) and net income of BRL 185 million, reversing a prior loss.

• Export operations accounted for 56% of gross revenue, with strong demand from NAFTA, Asia, the US, and China, maintaining leadership in South American beef exports with a 21% market share.

• Integration of new assets progressed, driving significant revenue and sales volume growth, especially in Brazil and Argentina, though utilization rates remain below target.

• Advanced ESG initiatives, including inclusion in ISE and ICO2 portfolios and highest BBFAW animal welfare ranking in Latin America.

• Free cash flow was negative BRL 514.2 million in Q1, but positive BRL 1.5 billion over the last twelve months.

Financial highlights

• Net revenue reached BRL 11.2 billion in Q1, up 56% year-over-year and 4–5% quarter-over-quarter; LTM net revenue was BRL 38.1 billion.

• Q1 EBITDA was BRL 963 million, up 53% year-over-year, with a margin of 8.6%; LTM EBITDA was BRL 3.5 billion, margin 9.1%.

• Net profit of BRL 185 million in Q1, reversing a loss from the previous quarter; LTM net result was negative BRL 1.2 billion due to prior FX impacts.

• Cash position at quarter-end was BRL 11.9 billion, sufficient for debt amortization until 2028.

• Gross margin was 18.5% in Q1 2025, up 1.3 p.p. year-over-year.

Outlook and guidance

• Net revenue guidance for 2025 is BRL 50–58 billion, supported by continued integration and ramp-up of new assets and favorable global beef market conditions.

• Expected EBITDA margin for 2025 is in the 8.5–9.5% range, reflecting integration challenges but stable profitability.

• Guidance is subject to integration progress, market conditions, and macroeconomic variables.

• Optimism for 2025 driven by global protein market opportunities, supply-demand mismatches, and strong international demand.