MINERVA FOODS FILES RECORD EBITDA OF R$ 806,2 MILLION AND LEVERAGE OF 2,18x IN 3Q22 - THE LOWEST LEVEL SINCE 2018

Rhea-AI Summary

Minerva Foods reported strong results for 3Q22, revealing a record EBITDA of R$ 806.2 million, a 24.4% increase from the previous year, with a margin of 9.6%. The company's net revenue grew to R$ 8.4 billion, up 14.5% year-on-year. Free Cash Flow was positive at R$ 601 million, contributing to an accumulation of over R$ 4.5 billion since 2019. The Net Debt/EBITDA ratio improved to 2.18x, the lowest since 2008, reflecting a solid capital structure. The company also paid dividends of R$ 128.1 million in August.

Positive

• Record EBITDA of R$ 806.2 million, a 24.4% increase year-on-year.
• Net revenue rose to R$ 8.4 billion, up 14.5% year-on-year.
• Free Cash Flow of R$ 601 million, accumulating over R$ 4.5 billion since 2019.
• Net Debt/EBITDA improved to 2.18x, the lowest level since 2008.
• Dividends paid of R$ 128.1 million in August, a signal of shareholder value.

Negative

• None.

Free Cash Flow remains positive in the third quarter of 2022, reaching R$ 601 million.  Since 2019, the company has accumulated more than R$ 4,5 billion in free cash generation.

BARRETOS, Brazil, Nov. 9, 2022 /PRNewswire/ -- Minerva Foods (Minerva S.A. – B3: BEEF3 | OTC – Nasdaq International: MRVSY), a leader in the export of fresh beef and derivatives in South America, and which also operates in the processed product segment, announces its results for the third quarter of 2022. Financial and operational information is presented in BRGAAP, in Reais (R$), according to International Financial Reporting Standards (IFRS).

EBITDA for the third quarter of this year reached a record R$ 806,2 million, a significant increase of 24,4% on the previous year, with an EBITDA margin of 9,6%. In the last twelve months, EBITDA was R$ 3 billion, up by 29,2% year on year, and the highest level ever recorded by the company, with an EBITDA margin of 9,4%.

The highlight in 3Q22, net leverage in the period measured by the Net Debt/EBITDA multiple for the last 12 months, ended the quarter at 2,18x - the lowest level since 2008, confirming the strength of Minerva Foods' capital structure.

The company's net revenue totaled R$ 8,4 billion in 3Q22, up by 14,5% year on year. In the last 12 months ended September 2022, Minerva Foods' net revenue totaled R$ 31,6 billion, up by 25,8% compared with LTM3Q21 (LTM: Last Twelve Months).

In the period, Net Income was R$ 141,5 million, accumulating R$ 680,7 million in the year, and totaling R$ 831 million in the last twelve months ended September 2022.

Free Cash Flow is another highlight of this quarter. In 3Q22, after Financial Expenses, Capex, and Working Capital, the indicator reached R$ 601 million in the recurring metric and R$ 536 million after the cash effect of the derivatives. In LTM3Q22, it totaled R$ 992 million. Since 2019, the company has accumulated more than R$ 4,5 billion in free cash generation.

Consolidated Gross Revenue in 3Q22 reached R$ 9 billion, up by 14,9% compared with the previous year.  In LTM3Q22, Gross Revenue was R$ 33,5 billion.  In the third quarter of this year, exports accounted for 69,7% of Minerva Foods' gross revenue, consolidating its leadership in beef exports in South America, with a market share of approximately 20% in the region.

In line with the generation of value to shareholders, in August, the company paid interim dividends of R$ 128,1 million, or R$ 0,22 per share. In the first nine months of the year, the company distributed approximately R$ 0,56 per share, totaling R$ 328,1 million for its shareholders.

About Minerva Foods

Minerva Foods is a leader in beef exports in South America and also operates in the processed segment, selling its products to more than 100 countries. In addition to Brazil, Minerva Foods is present in Paraguay, Argentina, Uruguay, and Colombia, and has lamb plants in Australia, totaling more than 20,000 employees. The company serves five continents with beef, lamb, and derivatives and currently operates 32 industrial units, 11 international offices, and 14 distribution centers.

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SOURCE Minerva Foods

FAQ

What were Minerva Foods' EBITDA results for 3Q22?

Minerva Foods reported an EBITDA of R$ 806.2 million for 3Q22, a 24.4% increase compared to the previous year.

How much did Minerva Foods' net revenue grow in 3Q22?

The net revenue for Minerva Foods in 3Q22 reached R$ 8.4 billion, representing a 14.5% year-on-year growth.

What is Minerva Foods' Free Cash Flow for 3Q22?

In the third quarter of 2022, Minerva Foods generated a positive Free Cash Flow of R$ 601 million.

What is the Net Debt/EBITDA ratio for Minerva Foods?

As of 3Q22, Minerva Foods' Net Debt/EBITDA ratio is 2.18x, the lowest level since 2008.

How much did Minerva Foods distribute in dividends?

In August, Minerva Foods paid R$ 128.1 million in interim dividends to its shareholders.