Minerva Foods Reports $275 Million Loss Despite Record Revenue in Q4

Minerva Foods, South America’s leading beef exporter, announced a net loss of R$1.567 billion ($275 million) in the fourth quarter of 2024 according to results released yesterday.

The company faced significant challenges despite achieving record revenue figures. The substantial loss contrasts sharply with the R$19.8 million net loss reported in the same period of 2023.

Currency fluctuations hit the company hard, resulting in a negative financial result of R$2.2 billion ($386 million). Higher interest expenses and non-cash effects from exchange rate variations heavily impacted quarterly performance.

Minerva’s hedging strategy provided some relief, delivering a positive result of R$930 million ($163 million) during the quarter. The company emphasized this policy protected their balance sheet from even greater exchange-related impacts.

Despite financial headwinds, Minerva achieved record net revenue of R$10.714 billion ($1.88 billion), representing a 73.8% increase compared to Q4 2023. The company’s EBITDA grew 55.8% year-over-year to R$943.7 million ($166 million).

Operational performance showed strength across key metrics. Cattle slaughter volume reached 1.2 million head, growing 10% compared to the previous year. For the full 2024 year, total slaughter volume hit 4.4 million head, up 14% from 2023.

Minerva Reports Strong Financial Performance

Minerva generated strong free cash flow of R$990 million ($174 million) in Q4, contributing to an annual total of R$2.4 billion ($421 million). The company has accumulated approximately R$9 billion ($1.58 billion) in free cash generation since 2018.

The quarter also saw strategic expansion through the acquisition of Marfrig‘s South American assets. This move increased Minerva’s operational footprint to 46 industrial units with daily processing capacity of 41,789 cattle.

Exports remained central to Minerva’s business model, accounting for 58% of total revenue in 2024. The United States (33%) and China (20%) represented the largest export markets for the company.

Minerva completed a partial buyback of its 2031 Bonds totaling US$69 million during the quarter, with effective cancellation occurring in early 2025.