Minerva Foods Reports Impressive Free Cash Flow of R$ 990 Million in Q4 2024

Minerva Foods Reports Impressive Financial Results for Q4 2024

Minerva Foods, known for its leadership in beef exports across South America, has released its financial results for the fourth quarter of 2024, and the figures are indeed noteworthy. The company recorded an impressive free cash flow of R$ 990 million, contributing to a total of R$ 2.4 billion for the entire year. This translates to an annualized free cash flow yield of approximately 85%, marking a significant milestone for the company.

Since 2018, Minerva Foods has generated around R$ 9 billion in free cash flow, indicating a strong financial trajectory that bodes well for future endeavors. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the fourth quarter also reached an all-time high of R$ 943.7 million, representing a remarkable 56% increase compared to the same quarter of the previous year (Q4 2023) and a 16% increase from the previous quarter (Q3 2024). Year-to-date figures illustrate an impressive EBITDA of R$ 3.1 billion, with an EBITDA margin standing at 9.2%.

The gross revenue for Minerva Foods in the fourth quarter rose to R$ 11.4 billion, a staggering increase of 76% from the same period last year and a 27% increase over the previous quarter. Notably, exports accounted for 53% of this total revenue, which underscores the company's dominant position in the South American beef market with a market share of approximately 20%. For the entire year of 2024, their gross revenue amounted to R$ 36.3 billion—an increase of 27% year-on-year, with exports contributing 58%.

Geographically, Minerva Foods has successfully diversified its market with the United States comprising 33% and China 20% of its exports in the fourth quarter alone. This balanced approach highlights the company's adeptness at navigating the global protein market, optimizing its supply chains to serve various international demands.

In terms of net revenue, Minerva Foods reported R$ 10.7 billion in Q4 2024, setting yet another record for the company. This figure signifies a 74% increase compared to the same quarter last year and a 26% rise over the previous quarter. The net revenue for the whole of 2024 reached R$ 34.1 billion, also marking a 27% increase compared to 2023.

Meanwhile, net leverage at the end of December was measured at 3.7x, according to the Net Debt/Adjusted EBITDA ratio for the last twelve months, following the acquisition of Marfrig's assets in South America.

Minerva Foods had an impactful October, completing the acquisition of ten industrial and commercial facilities in Brazil, Argentina, and Chile. This strategic move expanded their operational capabilities significantly, bringing the total to 46 industrial units, with an impressive daily processing capacity of 41,789 cattle and 25,716 sheep.

As for fiscal strategies, the company made headlines in early 2025 by completing a buyback of a portion of the 2031 Bonds worth US$ 69 million, which sported a coupon rate of 4.375%. This step consolidates their capital structure as they move forward.

Minerva Foods continues to solidify its position as a global leader in beef and lamb products, with a mission to serve over 100 countries. With operations spread across Brazil, Paraguay, Argentina, Uruguay, and Colombia, as well as specialized facilities in Australia, the company employs more than 40,000 individuals and boasts a robust international presence with 46 industrial units and numerous distribution centers across five continents. The key financial indicators for Q4 2024 not only reflect Minerva's operational excellence but also its commitment to growth and diversification within the competitive global food market.