In This Article:
Release Date: March 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Minerva SA (MRVSY) achieved record gross revenue of BRL 11.4 billion in Q4 2024 and BRL 36.3 billion for the year.
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The company reported a record EBITDA of BRL 944 million in Q4 2024, with an EBITDA margin of 8.8%.
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Free cash generation was a highlight, reaching BRL 990 million in Q4 and totaling BRL 2.4 billion for the year.
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Minerva SA (MRVSY) successfully integrated new plants in Brazil, Argentina, and Chile, enhancing its operational footprint.
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The company maintained a robust cash position of BRL 14.5 billion, providing a comfortable buffer for future challenges.
Negative Points
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Net leverage increased to 3.7 times net debt over adjusted EBITDA due to the acquisition of new assets.
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The utilization rate of new assets was below the historical average, impacting profitability.
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Net profit was negative at BRL 1.6 billion for the quarter, affected by non-cash FX variations.
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The integration of new assets is still ongoing, with some plants not yet operational, delaying full capacity utilization.
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The company faces geopolitical and macroeconomic risks that could impact future performance.
Q & A Highlights
Q: Can you explain the 1.1 billion pro forma EBITDA used for leverage calculations? Is this a feasible target for the new assets in 2025? A: (Edison Tickley, CFO) The 1.1 billion pro forma EBITDA is based on Minerva's existing plants' profitability per head and assumes a ramp-up in capacity utilization. If the new assets operate at full capacity, they could generate 100 to 150 million per month, making the 1.1 billion a realistic and conservative estimate.
Q: How is the ramp-up of the new assets progressing, and what is the current utilization rate? A: (Edison Tickley, CFO) The ramp-up is ongoing, with assets operating at 65% to 70% capacity. One plant in Mato Grosso is still down due to required CapEx for operational standards, but other assets are performing as expected.
Q: How have the new assets affected the export and domestic market mix? A: (Fernando Galetti, CEO) The integration of new plants has impacted the market mix due to bureaucratic processes for export approvals. For example, China approvals were only transferred in March. This has temporarily increased domestic market share, but further approvals should boost exports and profitability.
Q: What are the expectations for cash generation in 2025, considering CapEx, working capital, and interest expenses? A: (Edison Tickley, CFO) While there's no official guidance, based on Q4 2024 and Q1 2025 data, quarterly revenue could reach 12 to 14 billion. CapEx is expected to be twice the usual amount due to new assets, and working capital efficiency should limit additional needs to 200-250 million. The company aims to generate 1 to 2 billion in free cash flow.