Q3 2024 Minerva SA Earnings Call (English, Portuguese) Transcript
Key Points
- Minerva SA (MRVSY) reported robust financial results with a gross revenue of EUR9 billion and an EBITDA of BRL813 million, reflecting a strong EBITDA margin of 9.6%.
- The company successfully completed the acquisition of Marfrig South America assets, expanding its operational footprint to 46 industrial units across seven countries.
- Minerva SA (MRVSY) achieved significant free cash generation of BRL667 million in Q3 2024, contributing to a total of BRL1.6 billion over the last 12 months.
- The company continues to lead beef exports from South America with a 20% market share, benefiting from geographic diversification and strong international market access.
- Minerva SA (MRVSY) made strategic investments in renewable energy, acquiring 98% of Ira Peru's shares to produce electricity from clean photovoltaic sources, supporting its decarbonization goals.
- The integration of new assets from Marfrig South America is still in its early stages, with some maintenance below Minerva's standards, potentially impacting short-term operational efficiency.
- Higher cattle prices in Brazil are expected to affect profitability in the short term, posing challenges for maintaining margins.
- The geopolitical and economic situation in Argentina remains volatile, which could impact Minerva's operations and market confidence in the region.
- The company's net leverage remains relatively high at 2.6 times net debt over EBITDA, despite recent reductions.
- There is ongoing uncertainty regarding the approval of asset acquisitions in Uruguay by local antitrust agencies, which could delay full integration and operational benefits.
Good morning everyone. And thank you for joining us on Minerva Foods earnings conference call for the third quarter. 2024 Minerva has concluded the first nine months of the year, delivering robust operating and financial results thereby reaffirming the consistency and discipline of our business strategy.
Once again, the company has demonstrated that geographic diversification is a key pillar of the operational and commercial execution of our business model. Reducing risks maximizing our arbitrary capacity and strengthening our corporate strategy as the largest beef exporter in South America in Q3, 2024 our gross revenue totaled around EUR9 billion with our record, Ebida reaching BRL813 million in an ebita margin of 9.6% in the last 12 months. Gross revenue has reached approximately 31.4 billion with an EBITA of 2.8 billion free cash generation. A priority for the company continues to be a highlight having reached 667 million in the quarter. Adding up to 1.6 billion last 12 months.
Q3, 2024 our sound cash generation performance
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