Brazil’s Minerva Foods recorded a third-quarter net loss of 717.3 million reais despite a sequential increase in net revenue. Higher beef prices supported gross margins, while cattle costs rose and the financial result was negative. Chinese shipment restrictions and reduced cattle availability weighed on business across a regionally uneven reporting period.
Brazilian meat producer Minerva Foods reported a third-quarter net loss of 717.3 million reais.[1], [2]
A year earlier, it had made a net profit of 120.0 million reais. The results, announced on 11 November, included a negative financial result of 1.6 billion reais. Net revenue nevertheless increased 3 per cent from the preceding quarter to 14.5 billion reais.[1]
Minerva said the supply of slaughter-ready cattle had tightened, particularly in Brazil. Chinese shipments were also affected by exhaustion of Brazil’s quota under China’s safeguard measure. The company put the annual rise in cattle costs at approximately 24 per cent. Higher beef prices in exports and domestic distribution supported gross profit of 2.5 billion reais and a gross margin of 17.1 per cent, against 16.5 per cent a year earlier.[1]
Brazilian gross revenue fell 19 per cent to 8.1 billion reais. Paraguay’s rose 50.5 per cent to 2.5 billion reais and Argentina’s increased 44 per cent to 1.7 billion reais. Over the trailing twelve months, net revenue reached 56.2 billion reais, up 9.5 per cent. The twelve-month net loss narrowed from 803.9 million reais to 348.2 million reais, even as the latest quarter returned to a loss.[1]
