Minerva (BEEF3) Q2 2024 earnings summary

Executive summary

• Gross revenue reached BRL 8.2 billion in Q2 2024, with exports accounting for 61% of this total and EBITDA of BRL 744.6 million at a 9.7% margin.

• Net revenue was BRL 7.7 billion, up 5–6.7% year-over-year and 6–7% sequentially.

• Free cash flow was BRL 404 million in Q2 and BRL 1.5–1.7 billion over the last 12 months, with an annualized FCF yield of 40%.

• Net profit in Q2 2024 was BRL 95.4 million, with a cash position of BRL 16.5 billion and net debt/EBITDA at 2.98x.

• Recent acquisitions, including Marfrig, ALC, and BPU, impacted free cash flow and EBITDA.

Financial highlights

• LTM gross revenue was BRL 29.9 billion, net revenue BRL 28.1 billion, and LTM EBITDA BRL 2.7 billion (margin 9.6%).

• Net profit before taxes in Q2 2024 was BRL 102 million; after taxes, BRL 95 million.

• Operating cash flow in Q2 2024 was BRL 766 million.

• Capex in Q2 2024 was BRL 204 million, mainly for maintenance and organic expansion.

• Net debt at quarter-end was BRL 8.1–9.6 billion, adjusted for acquisitions.

Outlook and guidance

• Management is optimistic for 2H24, expecting continued strong margins and profitability, leveraging geographic diversification and export opportunities.

• Regulatory approval for Marfrig asset acquisitions is expected between October and December 2024.

• Focus remains on optimizing capital structure, deleveraging, and free cash flow generation.