BEEF3

Minerva S.A., traded on B3 under the ticker BEEF3, is a Brazilian company in the meat and protein sector that operates mainly in the production and sale of fresh chilled and frozen beef, processed protein products, and animal by-products. The company’s history dates back to 1957, when the Vilela de Queiroz family began activities in cattle transportation. In 1992, the group formally entered the meatpacking industry by acquiring Frigorífico Minerva do Brasil S.A. in Barretos (SP), giving rise to the group’s first slaughtering and processing unit. Over the following decades, the company expanded its industrial capacity and international presence through acquisitions, plant leases, construction of own units, and the opening of distribution centers in different regions of Brazil and other South American countries.

The company’s corporate structure reached an important milestone in 2007, when it was converted into a corporation and held its initial public offering, with Minerva S.A. being listed on the Novo Mercado segment of the then BM&F Bovespa (now B3), consolidating its access to the Brazilian capital markets. From that point on, the company intensified its international activities, both in industrial operations and commercial presence, through the acquisition of meatpacking plants in Paraguay, Uruguay, Argentina, and Colombia, as well as the establishment of subsidiaries and joint ventures for processed products and operations in strategic markets abroad. In 2018, Athena Foods S.A., headquartered in Santiago, Chile, was created to consolidate South American operations outside Brazil, reflecting the importance of the regional platform in the growth strategy.

Minerva’s (BEEF3) business model is organized into two main segments: Meat Division and Other Division. The Meat Division is the economic core of the company, accounting for 95% of net revenue in 2024, with a focus on cattle slaughter and deboning and the production of frozen and chilled beef, in addition to by-products such as hides, offal, meat, bone and blood meal, and tallow. The company also produces processed beef items, such as canned meats (cubed beef and roast beef), as well as portioned cuts aimed at the domestic market and supermarket chains abroad. The Other Division, responsible for 5% of net revenue in 2024, comprises subsidiaries that provide food product trading services, operating as a trading business that resells and distributes third-party proteins (poultry, pork, fish, lamb) and other frozen and processed foods.

Minerva’s industrial operation is asset-intensive and based on a network of meatpacking units distributed across several countries. As of December 31, 2024, the company owned 46 industrial units, of which 38 were cattle slaughter and deboning plants located in South America and three were protein processing units, one in Brazil (Barretos, SP) and two in Argentina (Rosario and Pilar). In addition, it operated five sheep-specialized units, four in Australia and one in Chile. The daily cattle slaughter capacity reached 43,540 head, with deboning capacity of 39,047 head, highlighting the scale of the operation. The cattle plants are distributed across nine Brazilian states, as well as in cities in Paraguay, Uruguay, Argentina, and Colombia, generally close to both cattle suppliers and ports and consumer centers.

The Meat Division’s production process is structured from the purchase of raw materials to the shipment of final products. Minerva purchases cattle from more than 25 thousand ranchers distributed across Brazil, Paraguay, Uruguay, Argentina, and Colombia, without relevant involvement in cattle raising itself, except for specific partnerships for finishing feedlots. Cattle purchases account for between 75% and 85% of cost of goods sold in the cattle operation, which underscores the importance of supply management and price arbitrage between regions. The cattle are transported in livestock trucks to the plants, where they undergo stages of receiving, resting, sanitary inspection, washing, stunning, bleeding, skinning, evisceration, splitting, and carcass washing, under the supervision of official inspection services. The half carcasses then go to maturation chambers, deboning, cut standardization, primary and secondary packaging, quality control, and subsequent chilling or freezing, followed by storage and shipping.

The company’s strategy combines a strong export focus with a relevant presence in the domestic markets where it operates. In 2024, exports accounted for 58% of gross revenue, out of a total of R$ 36.3 billion in consolidated gross revenue, with sales to around 100 countries. Minerva focuses on developing countries and maintains 18 commercial offices in global consumption and distribution hubs, including Chile, the United States, Algeria, Lebanon, Russia, China, Egypt, the United Kingdom, Italy, Australia, Taiwan, the United Arab Emirates, Saudi Arabia, Japan, Mexico, Hong Kong, Singapore, and Switzerland. In the domestic markets of the countries where it operates, the company follows a “one stop shop” concept for approximately 50 thousand customers, supplying an integrated portfolio of own and third-party products, with a distribution network established in several Brazilian states and in Asunción (Paraguay), Pilar (Argentina), and Santiago (Chile).

From the standpoint of customers and sectors served, Minerva directs its production to three major segments: food industry, retail (with a focus on small and medium retailers), and other food processing industries. The customer base is highly diversified, with no single customer accounting for more than 10% of the company’s net revenue in 2024. In addition to sales of fresh, chilled, and frozen beef, the company supplies supermarket chains abroad with processed beef products and serves a wide range of foodservice channels and distributors, as well as marketing by-products to input manufacturers and the leather and animal nutrition industries.

Minerva’s operations are strongly influenced by sanitary and environmental regulations in the countries where it operates. In Brazil, its industrial units are under the permanent inspection of official veterinarians from the Ministry of Agriculture and Livestock, through the Federal Inspection Service, and are also subject to audits by the Department of Inspection of Animal-Origin Products and international sanitary missions, according to importing markets’ requirements. In other countries, operations are supervised by agencies such as SENACSA in Paraguay, INVIMA in Colombia, sanitary authorities in Argentina, Uruguay, and Chile, and DAFF in Australia. The company is also subject to environmental regulations at federal, state, and municipal levels, and its activities are affected by government policies related to taxes, tariffs, subsidies, and restrictions on international trade in beef and derivatives.

Regarding environmental, social, and governance aspects, Minerva developed, in partnership with the International Finance Corporation (IFC), a socio-environmental improvement plan focused on raising sustainability standards in the supply chain and implementing management systems. The company implemented an Environmental Management System (EMS) aligned with ISO 14001, initially certified at the José Bonifácio unit in 2022 and later at the Barretos plant in 2024, with recurring audits to maintain certifications. The company works on the management of atmospheric emissions, liquid effluents, and solid waste, with productive eco-efficiency programs and preventive and predictive maintenance of equipment. Units in Colombia and Argentina have obtained recognitions such as Punto Azul and Sello Verde, and some plants, such as Janaúba (Brazil) and Bucaramanga (Colombia), have achieved Zero Landfill certification, indicating progress in waste disposal. These systems are complemented by an Integrated Management System (IMS), which consolidates occupational health and safety, environmental, food safety, and social responsibility practices across all of the company’s industrial operations.

The common shares of Minerva S.A., traded under the ticker BEEF3, are listed on B3 and reflect the performance of a meatpacking group with a significant presence in the animal protein chain in South America and relevance in the international beef trade. The predominance of the Meat Division in revenue and operating profit generation, combined with the multi-country slaughter, deboning, and processing structure, characterizes the company as a specialized player in meats and by-products, with strong positioning in emerging markets and exposure to factors such as cattle supply, animal health, regulatory requirements, and the dynamics of global food trade.