Minerva S.A. Shines in Q3 2025 Earnings Call

Minerva S.A. ((MRVSY)) has held its Q3 earnings call. Read on for the main highlights of the call.

Minerva S.A. Reports Strong Q3 2025 Performance Amid Market Challenges

Minerva Foods showcased a robust financial and operational performance in its Q3 2025 earnings call. The company reported record revenue, EBITDA, and free cash flow generation, demonstrating its strong market position. Despite facing challenges such as increased cattle prices and potential risks in the Chinese market, Minerva’s strategic initiatives and geographic diversification have positioned it well to navigate these hurdles.

Record-Breaking Revenue and EBITDA

Minerva Foods achieved record gross revenue of BRL 16.3 billion and a record EBITDA of BRL 1.4 billion, with an EBITDA margin of 8.9% for Q3 2025. The annual gross revenue also reached a record high of approximately BRL 54.4 billion, with EBITDA totaling BRL 4.6 billion. These figures underscore the company’s strong financial performance and operational efficiency.

Successful Integration of Acquired Assets

The integration of newly acquired assets was completed ahead of schedule, reflecting Minerva’s operational efficiency and the dedication of its teams. These new assets contributed significantly, adding BRL 3.9 billion in gross revenue for Q3 2025, further strengthening the company’s market position.

Reduction in Net Leverage

Minerva Foods successfully reduced its net leverage to 2.5x net debt over EBITDA, marking the lowest level since 2022. This reduction aligns with the company’s commitment to improving its capital structure and financial health.

Strong Free Cash Flow Generation

The company generated a record positive free cash flow of BRL 2.5 billion in Q3 2025, with a total of BRL 2.9 billion over the last 12 months. This strong cash flow generation highlights Minerva’s ability to efficiently manage its resources and invest in future growth.

Geographic Diversification and Export Performance

Exports accounted for 70% of Minerva’s gross revenue in Q3 2025, driven by strong demand from China and the U.S. due to favorable market conditions. This geographic diversification has been pivotal in sustaining the company’s growth and mitigating regional market risks.

Sustainability and ESG Commitment

Minerva Foods published its 14th sustainability report, reaffirming its commitment to the ESG agenda. The company achieved 100% compliance in the socioenvironmental audit of cattle purchases in Paraguay for six consecutive years, showcasing its dedication to sustainable practices.

Impact of Cattle Price Increases on Gross Margin

The gross margin was negatively impacted by a 25% increase in cattle prices compared to the previous quarter. However, Minerva managed to partially offset this through scale gains and cost dilution, demonstrating resilience in challenging market conditions.

Potential Market Risks in China

Concerns were raised about potential safeguard measures in China, which could impact future exports. Despite these risks, record import volumes driven by the Chinese New Year preparations provided a temporary boost to Minerva’s export performance.

Forward-Looking Guidance

Minerva Foods provided forward-looking guidance, emphasizing its record financial performance with gross revenue of BRL 16.3 billion and an EBITDA of BRL 1.4 billion for Q3 2025. The company highlighted strategic advancements, including a BRL 2 billion debenture issuance and continued progress in sustainability initiatives. With a robust cash position of BRL 14.9 billion, Minerva is well-positioned to capitalize on future opportunities.

In summary, Minerva Foods delivered a strong Q3 2025 performance, marked by record financial results and strategic advancements. While challenges such as increased cattle prices and potential market risks in China were noted, the company’s strategic initiatives and geographic diversification have positioned it well to navigate these challenges and sustain its growth trajectory.