By Brazil Stock Guide – Minerva S.A. (B3: BEEF3; OTC: MRVSY) reported a net profit of R$120 million (≈US$21 million) and record free cash flow of R$2.5 billion in the third quarter of 2025, consolidating its position as South America’s leading beef exporter. The results were broadly in line with market expectations, driven by stronger export demand, improved operational efficiency, and the completion of its integration plan following the acquisition of Marfrig South America (MSA) assets.
Revenue Growth and Efficiency Gains
The company posted net revenue of R$15.5 billion, up 83% from a year earlier, while EBITDA rose 71% to R$1.4 billion, with a margin of 8.9%. Net leverage fell to 2.5x EBITDA, the lowest since 2022, reflecting Minerva’s disciplined financial strategy and strong cash generation.
The early completion of the MSA integration added R$4 billion in gross revenue and boosted sales volume by 24% compared with the previous quarter. “Standardizing operations and management across our new plants delivered strong scale gains and reinforced our profitability leadership in the region,” said CEO Fernando Galletti de Queiroz, noting that all integrated units are now operating within Minerva’s performance benchmarks.
Exports Drive Performance
Exports accounted for 61% of total revenue, reaching R$10 billion, up 83% from 3Q24. The Asian market led with 32% of total sales, followed by Nafta (29%), Middle East (9%), and the European Union (8%). China continued to post record import volumes amid tight domestic supply, while Mexico emerged as a growing hub thanks to preferential trade access to the U.S. market. Export prices rose 24.7% year-on-year to US$5.5/kg, reflecting global beef scarcity and Minerva’s ability to capture arbitrage opportunities.
Balance Sheet and ESG Commitments
During the quarter, Minerva advanced its bond repurchase program, canceling a total of US$384.8 million (≈R$2.3 billion) in 2025. The move reduced future interest expenses and supported the company’s goal of maintaining a lighter, more efficient balance sheet.
On the sustainability front, Minerva expanded its Renove and MyCarbon programs across more than 145,000 hectares in Brazil, Uruguay, and Paraguay, focusing on low-carbon cattle farming and carbon credit validation. The company also achieved 100% socio-environmental compliance in Paraguayan cattle sourcing and received ANP authorization to increase biodiesel production capacity.
Stock Performance and Outlook
Minerva shares (BEEF3) have gained 18% year-to-date and closed on November 4 at R$7.43, valuing the company at R$7.4 billion.