Minerva (BEEF3) Q4 2024 earnings summary

Executive summary

• Achieved record gross revenue of R$11.4 billion in 4Q24 and R$36.3 billion for 2024, with EBITDA reaching R$943.7 million in 4Q24 and R$3.1 billion for the year, both all-time highs, driven by expanded operations and export growth.

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

• Free cash flow totaled R$990 million in 4Q24 and R$2.4 billion for the year, with a strong cash position of R$14.5 billion.

• Export markets accounted for 53% of 4Q24 and 58% of 2024 gross revenue, reinforcing leadership in South American beef exports with ~20% market share.

• Maintained a robust ESG agenda, achieving ISO 14001 certification, 100% monitoring of direct supplier farms, and advancing carbon credit and renewable energy initiatives.

Financial highlights

• 4Q24 gross revenue: R$11.4 billion (up 76% YoY, 27% QoQ); 2024: R$36.3 billion (up 27% YoY); net revenue: R$10.7 billion in 4Q24 (up 74% YoY, 26% QoQ), R$34.1 billion in 2024 (up 27% YoY).

• 4Q24 EBITDA: R$943.7 million (8.8% margin, up 56% YoY); 2024 EBITDA: R$3.1 billion (9.2% margin, up 22% YoY), both record highs.

• Net income was impacted by non-cash FX effects, resulting in a reported loss of R$1.6 billion in 2024, but recurring net income (excluding FX) was R$1.4 billion.

• Net leverage at 3.7x Net Debt/LTM Adjusted EBITDA at year-end, reflecting acquisition-related debt.

• CAPEX (excluding acquisitions) was R$220.5 million in 4Q24 and R$747.8 million in 2024, focused on maintenance and organic expansion.

Outlook and guidance

• Positive outlook for 2025 and 2026, driven by global supply-demand imbalance, new market openings, and expected operational synergies from asset integration.

• Integration of new assets is expected to accelerate, with ramp-up utilization already at 65-70% and full profitability targeted within two to three quarters.

• Projected quarterly revenue for 2025 is R$12-14 billion, with EBITDA expected in the R$4-5 billion range.

• Focus remains on deleveraging, maintaining strong cash generation, and capturing operational, commercial, and financial synergies.

• Uruguay expected to increase animal availability, joining Brazil and Paraguay in supporting regional performance.