Minerva (BEEF3) Q4 2024 earnings summary

Executive summary

• Achieved record gross revenue of BRL 11.4 billion in Q4 2024 and BRL 36.3 billion for the year, with record EBITDA of BRL 944 million in Q4 and BRL 3.1 billion for 2024, reflecting strong operational and financial execution.

• Completed major acquisition of Marfrig assets, adding 13 new plants and 1 distribution center, expanding to 46 industrial units across 7 countries and increasing slaughter capacity by nearly 40%.

• Geographic diversification and integration of new plants in Brazil, Argentina, and Chile enhanced risk management and arbitrage capacity, with synergy and efficiency programs underway.

• Free cash generation reached BRL 990 million in Q4 and BRL 2.4 billion for the year, supporting a robust cash position of BRL 14.5 billion and ongoing deleveraging efforts.

• Export revenue accounted for 58% of 2024 total, reinforcing leadership in South American beef exports with ~20% market share.

Financial highlights

• Q4 2024 net revenue was BRL 10.7 billion, up 74% year-over-year and 26% quarter-over-quarter; annual net revenue reached BRL 34.1 billion.

• Q4 EBITDA margin was 8.8%, with annual EBITDA margin at 9.2%.

• Net profit for Q4 and the year was negative BRL 1.6 billion, mainly due to non-cash FX variation; recurring net profit for Q4 was BRL 229 million and BRL 1.4 billion for the year after adjustments.

• Operating cash flow in Q4 was BRL 2.5 billion, with annual operating cash flow at BRL 6.6 billion.

• Free cash flow for 2024 was BRL 2.4 billion, with an annualized free cash flow yield of around 85%.

Outlook and guidance

• Optimism for 2025 and 2026 driven by favorable global supply-demand dynamics, especially due to the U.S. cattle cycle, resilient demand in China and Europe, and new market openings.

• New assets expected to reach full profitability within two to three quarters as ramp-up continues, with utilization rates already approaching 70%.

• Projected quarterly revenue for 2025 is BRL 12-14 billion, with annual EBITDA expected in the BRL 4-5 billion range and CapEx around BRL 1-1.2 billion.

• Free cash generation for 2025 anticipated between BRL 1-2 billion, supporting further deleveraging.

• Pending regulatory approval for three Uruguay plants, with a revised proposal submitted to authorities.