Minerva CFO Edison Ticle expects finished male prices in Brazil, which fell after the Chinese quota was exhausted, to stabilize in the coming weeks before recovering in the final quarter, when the industry resumes China-oriented production ahead of the 2027 quota.
Ticle said that after the Chinese quota was exhausted, finished male prices would remain stable for a period and then recover in the fourth quarter as meatpackers resume production for that market ahead of the 2027 quota, which will not be subject to the additional tariff. At the same time, he warned that domestic consumption is “less buoyant” because of Brazilian household debt, although he clarified that this scenario is already factored into the company’s projections for the year.
On the financial front, Ticle proposed that the board reduce dividend payments to the legal minimum of 25% of net income, from the 50% paid previously, with the aim of lowering leverage from the current 2.9 times EBITDA to 1.7 times. Regarding the possibility of taking the company private, the executive was categorical: “That discussion never reached the company.”
The possibility of Minerva going private—and therefore ceasing to be publicly traded—returned to the agenda following press reports in late May, when the shares had accumulated a 28% decline for the year, indicating that the company was internally assessing such a transaction. According to the reports, the plan envisaged the Vilela de Queiroz family holding more than 54% of the capital and Saudi investment firm Salic owning the remainder. Together, the two shareholders already hold more than 53%. Brazil’s Securities and Exchange Commission requested explanations from the company, which responded in June by denying that any corporate deliberations on the matter had taken place.
The company expects to generate more than R$ 1 billion in consolidated free cash flow in 2026, driven in part by the sale of inventories accumulated in China during the second half of the year.
Source: Globo Rural
