The tariffs imposed by the United States on Brazilian products exported to the country are expected to have a positive impact on Minerva’s revenue over the next two quarters after the company significantly increased its inventories in the US in response to rising beef prices there.
During a conference call with analysts after releasing results, CFO Edison Ticle highlighted that the strategy adopted from Q2 this year proved more advantageous than initially expected, enabling sales at higher-than-expected prices due to the new 50% tariff. “We were seeing the beef price increases taking place, but with all this noise about tariffs, our decision ended up being even more accurate,” the executive said.
In the first half of the year, the company allocated R$ 1.7 billion in US inventory, increasing its available volume from 34 days of operation to about 46 days. According to Ticle, the intention is to sell this inventory over the next two quarters.
As a result, Minerva CEO Fernando Galletti de Queiroz believes the company will achieve higher-than-expected profitability in the coming months. “My inventory position in the United States will benefit from this upward price movement and will contribute significantly to revenue levels and, especially, profitability in the next quarters, particularly the third and fourth quarters of this year,” he said.
