São Paulo – Year-over-year until the end of June, the Middle East was the main destination for exports from Minerva’s Brazilian plants, according to data shown by the company and discussed in a conference with investors this Wednesday (8). The region accounted for 29% of the company’s total exports from Brazil, a percentage point above the figure registered in the previous 12 months.
“Part of the cuts previously directed to Russia are also distributed to Middle East and North Africa countries,” said the company in a performance report. Russia imposed a ban on Brazilian beef at the end of last year and Minerva then began to increase exports to the Russia market from its plants from other countries, such as Paraguay. Minerva has plants in Brazil, Paraguay, Uruguay, Argentina and Colombia.
In the conference with investors, Minerva’s CEO, Fernando Galleti de Queiroz, singled out the Middle East and Asia as destinations for the company’s exports from Brazil, with 53% of the total year-over-year. According to the executive, these are growing markets due to the increasing urbanization and eating habits change, mainly among the Chinese, who have been improving their eating standards.
The company’s exports from Brazil resulted in a gross revenue of BRL 4.7 billion (USD 1.30 billion) between July 2017 and June 2018, up 16% than the previous twelve months. In Q2 2018, exports totaled BRL 1.1 billion, unchanged in comparison to the same months of last year. “The performance of exports in the quarter was the result of increased consumption by Asian markets and the Middle East, and of the redirection of part of the volume to Chile,” reported the company.
Considering all of Minerva’s operations, in Brazil and in the other four countries in which it operates, exports totaled BRL 9.3 billion (USD 2.58 billion) year-over-year ending in June, up 50% over the previous period. In Q2 2018, exports totaled BRL 2.5 billion (USD 690 million), up 50% over the same months of 2017.
Galletti said that the company’s year-over-year net revenues surpassed the estimates released at the end of last year due to exports. “By the company’s exporting profile in an environment marked by a devalued exchange rate,” he said. Net revenues from the company’s whole operation climbed 52% and reached BRL 14.9 billion (USD 4.13 billion).
The growth of net revenues in Q2 2018 over the same months of 2017 was of 45%, reaching BRL 3.7 billion (USD 1.03 billion). “The quarter was marked by the dollar appreciation against the real and the Argentinian peso, which turned exports even more attractive in these countries,” stated the report. Exports accounted for 64% of the company’s gross revenues.
Minerva has an 8% market share of the world’s total beef exports and accounts for 25% of beef exports in South America, leading the region in exports of fresh beef and products, according to the company. The Salic fund, from Saudi Arabia, has a stake in the company. In the conference with investors, the company stated that it has plans to hold an IPO of its international branches in Chile’s stock market.
Translated by Sérgio Kakitani
