Minerva returns to profit, earning US$ 33 million in Q1 2025, but share price drops sharply

Minerva Foods posted a net profit of R$ 185 million (about US$ 33 million) in the first quarter of 2025, reversing the R$ 186.2 million losses recorded in the same period of 2024. Nevertheless, after the results were released, Minerva’s shares were among the biggest decliners on the Brazilian stock exchange. On the following day (Thursday), the stock closed down 7.69 %, at R$ 5.16.

Although the company reported a net profit of R$ 185 million, some analysts pointed to tough conditions ahead, Money Times reported.

BTG Pactual said the figures reveal tighter cattle supplies, which cut output, raise costs and squeeze margins—factors that “neutralize” the positives.

Santander analysts likewise noted that weak volumes expose operating challenges. Minerva processed 210 thousand tons of beef in Brazil in Q1 2025—10 % below the bank’s estimate and almost 20 % under market consensus. “The poor performance reflected slower than expected ramp up of newly acquired Marfrig plants and a slowdown at existing operations,” Santander said.

Key challenges cited include sub par prices, low plant utilization rates and limited access to international markets. Analysts also warn that Brazil’s cattle cycle and Minerva’s high leverage continue to weigh on prospects despite further acquisitions. Even so, Santander believes the company’s 2025 guidance implies upside versus current forecasts (about R$ 51 billion).

BB Investimentos maintained its “buy” rating with a R$ 9.00 price target, citing positive expectations for progress integrating new assets, steady external beef demand and declining leverage over coming quarters. The bank will keep its target until it updates forecasts and incorporates the ongoing private share placement.