Financial Growth and Operational Expansion Strengthen Market Position
Minerva Foods (Minerva S.A. – B3: BEEF3 | OTC – Nasdaq International: MRVSY), a leading exporter of fresh beef and its derivatives in South America, has released its financial results for the fourth quarter of 2024 (4Q24). The company continues to solidify its market leadership, reporting robust revenue growth and record-breaking free cash flow generation.
Strong Free Cash Flow and EBITDA Performance
Minerva Foods posted free cash flow of R$ 990 million in Q4 2024, following financial expenses, capital expenditure (Capex), and working capital adjustments. For the full year, free cash flow reached R$ 2.4 billion, representing an annualized free cash flow yield of approximately 85%. Since 2018, the company has accumulated nearly R$ 9 billion in free cash flow, underscoring its financial strength and operational efficiency.
The company’s EBITDA for the quarter was R$ 943.7 million, a record for a single quarter, with an EBITDA margin of 8.8%. This represents a 56% increase compared to Q4 2023 and a 16% rise over the previous quarter (Q3 2024). On a full-year basis, Minerva Foods recorded R$ 3.1 billion in EBITDA, achieving an EBITDA margin of 9.2%. When factoring in the pro forma performance of recently acquired assets, adjusted EBITDA for 2024 totaled R$ 4.3 billion.
Revenue Growth and Export Market Expansion
Minerva Foods reported consolidated gross revenue of R$ 11.4 billion for Q4 2024, marking a 76% increase from Q4 2023 and a 27% rise from Q3 2024. For the full year, gross revenue reached R$ 36.3 billion, a 27% increase over 2023. Export markets played a key role, accounting for 53% of revenue in the fourth quarter and 58% for the full year, reinforcing the company’s position as a leader in South American beef exports, with a market share of approximately 20%.
The United States and China remained major destinations for Minerva Foods’ exports from South America, accounting for 33% and 20% of sales, respectively, in Q4 2024. This highlights the success of the company’s geographic diversification strategy, which enables it to navigate global market shifts and maintain a competitive edge in the animal protein sector.
Strategic Expansion and Acquisition of New Facilities
Minerva Foods successfully completed the acquisition of ten industrial and commercial facilities from Marfrig in October 2024. This transaction expanded its operational footprint across Brazil, Argentina, and Chile, adding 13 new production plants and one distribution center. With these additions, the company now operates 46 industrial units with a daily processing capacity of 41,789 cattle and 25,716 sheep.
Debt Reduction and Financial Stability
Minerva Foods ended 2024 with a net debt-to-adjusted EBITDA ratio of 3.7x, following the disbursement related to the Marfrig acquisition. The company also completed the buyback of a portion of its 2031 bonds, totaling US$ 69 million, with a 4.375% coupon. These bonds were officially canceled in early 2025, further reinforcing Minerva Foods’ financial stability.
As the company enters 2025, it remains focused on sustaining its growth momentum, optimising its supply chain, and leveraging its global presence to strengthen its position as a leading exporter in the beef industry.
