Minerva Foods, the Brazilian beef processor and exporter, reported a net loss of R$717.3 million for the third quarter of 2026, against net income of R$120.0 million a year earlier. The result was hit by a negative financial result of R$1.6 billion.
Net revenue was R$14.5 billion, up 3.0% from the second quarter, despite fewer cattle available, mainly in Brazil, and lower shipments to China after Brazil's quota under China's safeguard measure was used up, the company said. Revenue over the last 12 months totalled R$56.2 billion, up 9.5%.
Gross margin improved to 17.1% from 16.5% a year earlier, which Minerva put down to higher beef prices in exports and at home, even though the cost of cattle ready for slaughter rose about 24% year on year. EBITDA was R$1.2 billion, an 8.3% margin, down 13.6% from the third quarter of 2025.
The company's spread across South America cushioned the fall in Brazil. Gross revenue from Paraguay rose 50.5% year on year to R$2.5 billion and from Argentina 44.0% to R$1.7 billion, with Australia up 25.0% and Colombia up 27.0%. Brazilian operations brought in R$8.1 billion, down 19.0%, reflecting the tighter cattle supply and reduced shipments to China.
Net leverage ended September at 3.2 times, and Minerva said its R$13.9 billion in cash covers its debt repayments through 2029. This year it has repurchased and cancelled about $234.6 million of international bonds.
"We closed the first nine months of 2026 in a challenging market environment, marked by changes in international trade flows and by different stages of the global cattle cycle," said chief executive Fernando Galletti de Queiroz, adding that geographic diversification and operational flexibility had been essential.
The report was written by Melanie Epp.
Photo: Eduardo Ferraz Pacheco de Castro e Sebastião de Oliveira / Wikimedia Commons (CC0)
Source: The Cattle Site
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