Minerva Foods Reports Strong Fourth Quarter Turnaround with BRL 19.8 Million Net Profit, Despite Revenue Decline
1 April 2024
Minerva Foods, South America's leading beef exporter, closed the fourth quarter of 2023 with a notable turnaround, posting a net profit of BRL 19.8 million, compared to a net loss of BRL 25.7 million in the same period of 2022. Despite a slight 0.3% decrease, the earnings before interest, taxes, depreciation, and amortization (EBITDA) remained robust at BRL 605.9 million. However, the company experienced a 9.8% decline in net revenue, amounting to BRL 6.166 billion, largely due to decreased cattle and meat prices, including cuts for international markets.
For the entire fiscal year of 2023, Minerva's financials saw a significant shift, with a 39.6% decrease in net profit, totalling BRL 395.5 million, and a 9.7% reduction in EBITDA to BRL 2.563 billion. Net revenue also dropped by 13.2%, amounting to BRL 26.892 billion. The company highlighted a recurring free cash flow of BRL 535.7 million, adjusted for acquisitions such as the Australian ALC and Uruguayan BPU, accumulating BRL 6.5 billion since 2018.
“Net leverage at the end of 2023, measured by the net debt/EBITDA ratio of the last 12 months, ended the [fourth] quarter at 2.8x, adjusted by the pro-forma EBITDA of BPU and also by the amount of BRL 1.5 billion disbursed, related to the initial payment for the acquisition of the assets of Marfrig South America,” Minerva reported. Exports accounted for 65% of the company's gross revenue in 2023, totaling BRL 28.643 billion, reflecting a 12.9% decrease. Operating across Brazil, Argentina, Colombia, Paraguay, Uruguay, and Australia, Minerva continues to assert its dominance in the global beef market.
