Minerva Posts 717.3 Million Reais Loss Despite 14.5 Billion Reais in Third-Quarter Revenue

Key Facts

Minerva Foods posted a net loss of 717.3 million Brazilian reais in the third quarter of 2026, compared with a profit of 120 million reais in the same period a year earlier, despite net revenue of 14.5 billion reais. Revenue rose 3% from the second quarter but fell 6.4% year over year, CNN Brasil reported, citing the company’s results. Revenue topped analysts’ average estimate of 13.9 billion reais, while EBITDA came to about 1.2 billion reais, versus an estimate of 1.1 billion reais, according to Reuters via Investing.com. However, the improvement in revenue from the previous quarter did not prevent the quarter from ending in a loss. The financial result was a negative 1.6 billion reais in the period from July to September.

Reuters said excluding the nonrecurring effects of currency and commodity hedging and exchange-rate changes would bring recurring net profit to 120 million reais in the third quarter. The result highlights the gap between adjusted operating profitability and the reported net loss, which was affected by the negative financial result. The EBITDA margin fell to 8.3% from 8.9% a year earlier. For the 12 months ended in September, revenue reached 56.2 billion reais, up 9.5% from the corresponding period. EBITDA for that period was 4.7 billion reais, up 2.7% year over year, but the margin declined to 8.4% from 9%.

Operating pace slowed in the third quarter as animal availability declined, particularly in Brazil, and the company reduced operations in the country serving the Chinese market, CNN Brasil reported. The number of cattle slaughtered fell 17.4% year over year to 1.29 million head. Sales volume also declined 13.2% to 483.1 thousand tons. Exports accounted for 54.8% of consolidated gross revenue during the quarter. In an earlier assessment of the results, XP expected lower sales volumes to weigh on cash generation and estimated a slight negative free cash flow of 37 million reais for the quarter. The firm said in that assessment that cash generation and the path to reducing leverage through the fourth quarter would be important to monitor.

The ratio of net debt to EBITDA for the trailing 12 months rose to 3.2 times at the end of September, compared with 2.9 times in the second quarter of 2026 and 2.5 times in the third quarter of 2025. Net debt totaled 15.1 billion reais, up 28.5% year over year, while available cash stood at 13.9 billion reais. The company said available resources were sufficient to cover debt maturities through 2029. Rising leverage alongside a lower annual margin shows continued balance-sheet pressure despite revenue growth over the 12 months. Minerva posted net profit of 197 million reais in the second quarter, down 57% from the same period a year earlier, while net revenue rose 1.3% to 14.1 billion reais.

The third-quarter results announcement was scheduled for November 11, 2026, according to the calendar of events published by Brazil’s Securities and Exchange Commission, while the results video conference was set for November 12. But the quarter’s results showed an EBITDA margin of 8.3%, according to figures reported by CNN Brasil. XP also said lower sales volumes could delay cash generation and linked investor monitoring to cash flow and the deleveraging path through the fourth quarter. Liquidity and debt maturities remain key areas to watch given the rise in the ratio of net debt to EBITDA.