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    BEEF3   BRBEEFACNOR6

MINERVA S.A.

(BEEF3)
  Report
Delayed Bolsa de Valores de Sao Paulo  -  04:07:58 2023-02-03 pm EST
13.56 BRL   -1.24%
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Lower cattle prices to fatten Brazilian meatpackers' margins, analysts say

10/24/2022 | 02:23pm EST
FILE PHOTO: The logo of Brazilian meatpacker JBS SA is seen in the unit   in the city of Jundiai

SAO PAULO (Reuters) - A decline in Brazilian cattle prices this year and strong demand for the country's beef exports will widen Brazilian meatpackers' margins in the short term, according to analysts, though weakness in the domestic market could undercut those gains.

Live cattle prices on the Sao Paulo market are on a downward trajectory, with the "arroba" - a standard 15-kilo measure used as a benchmark - trading late last week at an average of 278.79 reais ($52.87), a significant discount to the first quarter's 332.23 reais, according to Scot Consultoria, an agribusiness consultancy.

"The margins of slaughterhouses that export has improved," said Alcides Torres, director of Scot Consultoria. He added that converting these bigger margins into profits would vary from company to company.

Brazil is home to some of the world's biggest meatpackers, including JBS SA, Marfrig and Minerva SA.

Beef prices in Brazil have been dropping on the back of a higher number of cattle coming to market as well as the more aggressive negotiating stances adopted by foreign buyers, especially China.

A weaker yuan currency has pushed China, which accounted for almost 53% of Brazilian beef purchases in September, to press for discounts from sellers in the South American nation, Safras & Mercado analyst Fernando Iglesias said.

About 30% of Brazil's beef production is sent abroad, with the rest consumed at home. But high inflation in the country has cut into consumers' purchasing power, weakening domestic demand for beef and pushing companies to look to export markets.

Brazil's beef exports in October have already surpassed those from the same month in 2021, according to government data.

"The record of beef exports in August and September should favor the third-quarter results of the listed slaughterhouses," said Mary Silva, an analyst at BB Investimentos, adding that Minerva was likely the biggest beneficiary because of its export-heavy business.

($1 = 5.2732 reais)

(Reporting by Nayara Figueiredo; Writing by Ana Mano; Editing by Paul Simao)

By Nayara Figueiredo


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
EURO / BRAZILIAN REAL (EUR/BRL) 0.92% 5.5385 Delayed Quote.-3.17%
FEEDER CATTLE FUTURE (GF) - CMG/C1 0.03% 185.975 End-of-day quote.1.21%
JBS S.A. -0.81% 19.69 Delayed Quote.-10.23%
LIVE CATTLE FUTURE (LE) - CMG/C1 -2.32% 154.825 End-of-day quote.0.00%
MARFRIG GLOBAL FOODS S.A. -1.03% 7.7 Delayed Quote.-11.38%
MINERVA S.A. -1.24% 13.56 Delayed Quote.4.71%
S&P GSCI LIVE CATTLE INDEX 0.18% 560.1536 Real-time Quote.3.94%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) 1.08% 6.8055 Delayed Quote.-1.66%
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Financials
Sales 2022 32 604 M 6 362 M 6 362 M
Net income 2022 1 003 M 196 M 196 M
Net Debt 2022 7 037 M 1 373 M 1 373 M
P/E ratio 2022 8,18x
Yield 2022 6,78%
Capitalization 7 922 M 1 546 M 1 546 M
EV / Sales 2022 0,46x
EV / Sales 2023 0,44x
Nbr of Employees -
Free-Float 43,3%
Chart MINERVA S.A.
Duration : Period :
Minerva S.A. Technical Analysis Chart | MarketScreener
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Technical analysis trends MINERVA S.A.
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 14
Last Close Price 13,56 BRL
Average target price 18,15 BRL
Spread / Average Target 33,8%
EPS Revisions
Managers and Directors
Fernando Galletti de Queiroz Chief Executive Officer
Edison Ticle de A. Melo e Souza Filho Chief Financial & Investor Relations Officer
Norberto Lanzara Giangrande Chairman
Luis Ricardo Alves Luz Chief Operating Officer
JosÚ Luiz Rŕgo Glaser Independent Director
Sector and Competitors
1st jan.Capi. (M$)
MINERVA S.A.4.71%1 546
HORMEL FOODS CORPORATION-0.46%24 720
TYSON FOODS, INC.4.63%22 912
HENAN SHUANGHUI INVESTMENT & DEVELOPMENT CO.,LTD.-0.42%13 065
WH GROUP LIMITED5.95%8 670
JBS S.A.-10.23%8 522