Minerva (BEEF3) Q1 2025 earnings summary

Executive summary

• Achieved record net revenue of R$11.2 billion and EBITDA of R$962.5 million in 1Q25, with an EBITDA margin of 8.6% and net income of R$185 million, reversing a prior loss; growth driven by strong exports and integration of new assets.

• Export operations accounted for 56% of gross revenue, with the US, China, and NAFTA as key destinations, and the company maintained a 21% market share in South American beef exports.

• Integration of newly acquired assets in Brazil, Argentina, and Chile contributed significantly to revenue and sales volume growth, with utilization rates improving but still below historical averages.

• Operational resilience and commercial efficiency were enhanced by geographic diversification and rapid response to global supply-demand shifts.

• Advanced ESG initiatives, including inclusion in key sustainability indices and progress in animal welfare and carbon credit projects.

Financial highlights

• Net revenue reached R$11.2 billion in 1Q25, up 56% year-over-year and 4–5% sequentially; LTM net revenue was R$38.1 billion.

• EBITDA was R$962.5 million in 1Q25, up 53% year-over-year, with a margin of 8.6%; LTM EBITDA was R$3.5 billion, margin 9.1%.

• Net income was R$185 million in 1Q25, compared to a net loss of R$186.2 million in 1Q24; LTM net result was negative R$1.2 billion due to prior FX impacts.

• Free cash flow was negative R$514.2 million in 1Q25, but positive R$1.5 billion over the last twelve months.

• Cash position at quarter-end was R$11.9 billion.

Outlook and guidance

• Net revenue guidance for 2025 is R$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.

• Proceeds from a capital increase of up to R$2 billion will be used to reduce debt and deleverage.

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

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