In This Article:
-
Gross Revenue: BRL11.9 billion in Q1 2025; BRL40.6 billion for the last 12 months.
-
EBITDA: BRL963 million in Q1 2025 with an 8.6% margin; BRL3.5 billion for the last 12 months with a 9.1% margin.
-
Net Revenue: BRL11.2 billion in Q1 2025, up 56% year-on-year.
-
Net Income: Positive BRL185 million in Q1 2025.
-
Operating Cash Flow: Positive BRL48 million in Q1 2025; BRL5.2 billion for the last 12 months.
-
Free Cash Flow: Negative BRL514 million in Q1 2025; Positive BRL1.5 billion for the last 12 months.
-
Net Debt: BRL15.6 billion at the end of Q1 2025; Net leverage ratio of 3.7x.
-
Cash Position: BRL11.9 billion at the end of Q1 2025.
-
Capital Increase: Approved up to BRL2 billion.
-
Revenue Guidance for 2025: Projected net revenue between BRL50 billion and BRL58 billion.
-
EBITDA Margin Guidance for 2025: Expected range between 8.5% and 9.5%.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Minerva SA (MRVSY) reported a record gross revenue of BRL11.9 billion for Q1 2025, with a record EBITDA of BRL963 million and an EBITDA margin of 8.6%.
-
The company has a robust cash position of BRL11.9 billion, providing a comfortable buffer to face future challenges.
-
Minerva SA (MRVSY) continues to lead beef exports from South America with a 21% market share, benefiting from its geographic diversification strategy.
-
The company has been included in the ISE and ICO2 sustainability portfolios for the fifth consecutive year, highlighting its commitment to sustainable livestock farming.
-
Minerva SA (MRVSY) has made significant progress in integrating new assets, with volumes increasing by 106% and revenue by 95% in the quarter.
Negative Points
-
The Pontes e Lacerda plant in Brazil was under operating restrictions for the entire first quarter, affecting overall utilization rates.
-
New assets are operating below the historical average utilization rate of 70% to 75%, currently at 60% to 65%, impacting efficiency.
-
The company's net leverage remains high at 3.7x net debt over EBITDA, indicating a need for further deleveraging.
-
Minerva SA (MRVSY) recorded a negative net result of BRL1.2 billion over the last 12 months, impacted by non-cash FX variations.
-
Free cash flow was negative at BRL514 million in Q1, influenced by tactical inventory increases and current debt levels.
Q & A Highlights
Q: Can you provide more details on the capacity utilization of the acquired plants and how it relates to your guidance? A: The historical assets ended the quarter with an average utilization rate of 72%, while the new assets were at 50% to 55%, reaching close to 60% by the end. We plan to increase this to 75% by the third quarter. The new assets can potentially double their revenue, reaching BRL3 billion to BRL3.5 billion per quarter. The price gap between historical and new assets should decrease as export licenses and sales channels improve.