Q2 2026 Minerva SA Earnings Call (English, Portuguese) Transcript
Key Points
- Minerva SA (MRVSY) delivered record net revenue of BRL57 billion over the last 12 months, up 29% year-on-year, and adjusted EBITDA of BRL4.9 billion, up 22%.
- The company's geographic diversification across South America, Australia, and other regions provides a natural hedge against geopolitical risks and tariff volatility, enabling market arbitrage.
- Minerva SA (MRVSY) strengthened its capital structure by redeeming $233 million in international bonds and issuing a $600 million 10-year bond, extending its debt maturity profile to 4.3 years.
- The company maintains a strong liquidity position with approximately BRL15 billion in cash, providing flexibility to capture market opportunities and manage volatility.
- Minerva SA (MRVSY) achieved 100% compliance in the external audit of its public cattle-raising commitment and was included in B3's Sustainability Index for the sixth consecutive year, reinforcing its ESG leadership.
- Management expects to release approximately BRL3 billion in working capital in the second half of 2026, potentially reducing net leverage to 2.2-2.3 times by year-end.
- The company's feedlot and biological asset investments in Paraguay and Argentina are expected to provide a competitive edge in sourcing and profitability.
- Minerva SA (MRVSY) experienced negative operating cash flow of BRL55 million in Q2 2026 due to significant working capital consumption of over BRL1 billion, driven by inventory buildup and accounts receivable.
- Net leverage remained elevated at 2.9 times net debt to EBITDA, reflecting the impact of working capital investments and a challenging credit environment.
- The company faces heightened volatility from geopolitical tensions, tariff restrictions, and logistical challenges, which could impact future performance.
- Potential restrictions on Brazilian beef exports to the European Union could negatively affect sales, though Minerva SA (MRVSY) can redirect volumes to other markets.
- The company's cash position of BRL15 billion is higher than its minimum target, leading to increased carrying costs and a drag on net debt due to the spread between cash yields and debt costs.
- Working capital consumption in Q2 was driven by longer receivable cycles in China, which may delay cash conversion and pressure liquidity in the short term.
- The company's EBITDA margin of 8.7% in Q2 was slightly lower year-on-year due to rising cattle prices, indicating potential margin compression.
Good morning ladies and gentlemen and welcome to Minerva's Second Quarter Earnings Release Conference Call.
Joining us today are Mr. Fernando Galette de Terroz, CEO and Mr. Edison Tickley, CFO and IRO.
This presentation is being recorded and simultaneous translation is available by clicking on the interpretation button.
If you are listening to the video conference in English, you have the option to mute the original audio in Portuguese by clicking on mute original audio.
The presentation is available for download at ri.minervafoods.com in the presentations tab.
During the company's presentation, participants will be in a listen-only mode. The question-and-answer session will begin once the presentation is concluded. Should you wish to pose a question by audio, please click on the Q&A icon and type in your name and affiliation. When your name is announced, a prompt to unmute your microphone will appear on the screen. Please unmute your microphone and proceed with your question.
To ask a question in English, please do so in writing and click on
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