In the first quarter of this year, Minerva (BEEF3) reported a net loss of R$186.2 million, representing a significant reversal in relation to the net profit of R$113.9 million recorded in the same period in 2023.
The company attributed this loss to the non-monetary impact of exchange rate variation during the period. Excluding this effect, net profit for the first quarter was approximately R$79.8 million.
Minerva’s net revenue reached R$7.2 billion, reflecting an increase of 12.6% compared to the same period of the previous year. Sales volume also grew, reaching 346 thousand tons, which represents an increase of 20% compared to the previous year.
Minerva’s earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter of 2024 totaled R$628.9 million, an increase of 18.2% compared to the same period in 2023, when it was R$ 531.9 million. The EBITDA margin for the period was 8.8%.
Net leverage, measured by the ratio between net debt and adjusted EBITDA over the last 12 months, was 2.8 times at the end of March.
With around 60% of consolidated gross revenue coming from the foreign market, Minerva’s management reiterated its commitment to one of its main strategies, which is the focus on exports.
Minerva (BEEF3)
This week, BTG communicated the reduction of its recommendation for Minerva shares from ‘buy’ to ‘neutral’, citing the uncertainties surrounding the acquisition of Marfrig’s beef assets.
According to the bank, Minerva is currently trading with an enterprise value corresponding to 3.7 times its EBITDA for 2024, before the deal is concluded, and 5 times its 2025 EBITDA, after the transaction – the latter metric aligned with the historical average.
Analysts Thiago Duarte and Henrique Brustolin note that the value narrative of Minerva’s shares is directly related to its ability to reduce financial leverage and begin the process of transferring value from debt to equity.
“Ultimately, we will only start to get some visibility in this regard in a few quarters, after the assets are integrated, potentially only next year”, highlight the analysts.
