By Brazil Stock Guide – Minerva Foods reported a jump in revenue and operating profit in the first quarter of 2026, as exports and South American operations helped offset a sharp decline in net income. Minerva S.A. (B3: BEEF3; OTC: MRVSY) said consolidated net revenue rose 19.8% from a year earlier to R$13.4 billion, while EBITDA increased 16.2% to R$1.1 billion. Net income fell 52.8% to R$87.3 million, according to the company’s 1Q26 earnings release.
The South American beef exporter said gross revenue reached R$14.5 billion, up 21.3% from 1Q25. Exports accounted for about 55% of total gross revenue in the quarter, reinforcing Minerva’s exposure to global protein demand. Over the last 12 months, gross revenue totaled R$60.6 billion, while net revenue reached a record R$57.0 billion.
The company’s EBITDA margin was 8.3%, down from 8.6% a year earlier, reflecting cost pressure even as scale and volumes improved. Gross margin stood at 17.1%, compared with 18.5% in 1Q25, as cattle prices rose over the previous 12 months, particularly in Brazil.
Sales volume rose 16.2% year over year to 481,700 tons. Export-market gross revenue advanced 19.6% to R$7.9 billion, while domestic-market gross revenue increased 23.6% to R$6.5 billion. The company said Brazil, Argentina, Paraguay, Uruguay, Australia and other markets continued to support its geographic diversification strategy.
Minerva said China and the US were the main drivers of beef export demand in the quarter, representing 24% and 18% of beef export revenue, respectively. Management said US cattle supply remains constrained, creating opportunities for South American exporters, particularly Brazil, Argentina, Paraguay and Uruguay.
The company kept net leverage stable at 2.7 times net debt to LTM EBITDA at the end of March. Cash stood at R$10.9 billion, which Minerva said is enough to cover debt amortization through 2029. Total debt fell 10.5% from a year earlier to R$24.6 billion, while net debt declined 12.2% to R$13.7 billion.
Minerva also continued to manage liabilities through bond repurchases. Since the start of 2026, the company has repurchased about US$62.9 million of its 2031 bond, in addition to the redemption of US$166.0 million of its 2028 bond. The combined amount totals US$228.9 million, or roughly R$1.2 billion, year to date. Since early 2025, repurchases have totaled about US$613.7 million, equivalent to roughly R$3.4 billion.
Free cash flow was negative R$806.3 million in the quarter after investments, interest payments and working-capital variation, affected by seasonality. Over the last 12 months, however, free cash flow generation totaled R$1.2 billion.
The board also approved R$30.8 million in additional dividends at the annual shareholders’ meeting held April 28. Combined with R$162.1 million distributed in advance at the end of 2025, dividends related to fiscal 2025 totaled R$192.9 million, equal to a 25% payout.
In sustainability, Minerva said it monitored 100% of indirect suppliers up to level 1 in the Legal Amazon and Maranhão, complying with SARB 026/2023. The company also reported progress in its Renove Program, expansion into Argentina, ISCC EU and CORSIA certifications for Minerva Ingredients in Pontevedra, Argentina, and advances at MyCarbon, including the assessment of 154,700 hectares for carbon projects.