Minerva’s result exceeded agents’ expectations

Minerva Foods reported a loss of R$1.567 billion (about US$275 million) in the fourth quarter of 2024. Following the announcement, the company’s shares closed up 8.23% on Thursday, at R$6.05. During trading, the stock reached a high of 11.99% gains, according to Money Times.

Goldman Sachs emphasized that Minerva recorded a strong quarter, surpassing the Bloomberg consensus by 21% in terms of EBITDA, with Brazil once again the main driver of the positive surprise.

Minerva executives said the company could reduce its debt this year and in 2026. The meatpacker ended the period with net debt of R$15.6 billion.

“While we acknowledge that market concerns about Brazil’s cattle cycle may persist, we note that, so far, prices have partially offset this factor. Given China’s potential strengthening, largely inelastic domestic demand in Brazil, and management’s continued focus on integrating acquisitions, we reiterate our buy recommendation (target price of R$6.65 and 19% upside potential) for Minerva shares,” wrote Thiago Bortoluci and Nicolas Sussmann at Goldman Sachs.

According to analysts, this was the first quarter in which Minerva incorporated assets in Brazil, Argentina, and Chile acquired from Marfrig in November 2024, estimated to have added roughly 5% to the company’s consolidated results.