Minerva (BEEF3) Q3 2024 earnings summary

Executive summary

• Achieved record net revenue of R$8.5 billion and record EBITDA of R$813 million in 3Q24, up 20% and 14% year-over-year, respectively, with net income of R$94.1 million.

• Completed acquisition of 13 Marfrig plants and 1 distribution center in Brazil, Argentina, and Chile, expanding to 46 industrial units across 7 countries and increasing daily slaughter capacity.

• Integration of new assets is underway, focusing on operational efficiency, risk management, and synergy capture.

• Export operations accounted for 60% of gross revenue in 3Q24, reinforcing a leading South American export position with ~20% market share.

• Advanced ESG agenda with 100% monitoring of direct supplier farms in Uruguay, ISO 14001 certification, and expansion of zero carbon impact initiatives.

Financial highlights

• Gross revenue in 3Q24 was R$9.0 billion, up 20% year-over-year and 11% sequentially; LTM gross revenue was R$31.4 billion.

• Net revenue in 3Q24 reached R$8.5 billion, up 20% year-over-year and 11% sequentially; LTM net revenue was R$29.5 billion.

• EBITDA in 3Q24 was R$813 million, with a margin of 9.6%; LTM EBITDA was R$2.8 billion.

• Net income in 3Q24 was R$94.1 million; LTM net income was R$23.2 million.

• Free cash flow in 3Q24 was R$667.3 million; LTM free cash flow was R$1.6 billion.

Outlook and guidance

• Management remains optimistic about year-end 2024, citing favorable global supply-demand dynamics and strong positioning in South America.

• Integration of new assets expected to take four to five quarters to reach operational standards, with efficiency and synergy programs mapped across operations.

• Anticipates continued strong export performance, especially to China and the U.S., as global supply remains tight.