# Minerva’s Ticle defends Marfrig deal as shares plunge more than 10%

*The company finalized the integration of its new plants ahead of schedule, posting its strongest free cash flow ever and reducing leverage to the lowest level since 2022.*

- Published: 2025-11-06
- Section: Insights
- URL: https://brazilstockguide.com/insights/minerva-marfrig-deal-record-cash-flow-3q25/

![Minerva, beef,](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/09/Minerva.png?fit=1024%2C683&ssl=1)

*Minerva, beef,*

**By Brazil Stock Guide –**
During the Q&A session with analysts, CEO **Fernando Queiroz** and CFO **Edison Ticle** tried to send a clear message: **Minerva Foods (B3: BEEF3)** has turned skepticism into results. Less than a year after acquiring a portfolio of plants from **Marfrig Global Foods**, the company completed integration ahead of schedule and delivered **record profitability and cash generation**.

But the market wasn’t convinced. **Minerva’s shares plunged more than 10% at the market open**, as investors questioned whether the company’s leverage and margins can sustain such rapid expansion. Analysts flagged that the strong numbers came with growing execution risks, high working-capital swings, and doubts about the full payback from the Marfrig acquisition.

### Integration completed ahead of plan

In 2023, Minerva agreed to purchase **11 meat-processing plants from Marfrig**, located across **Brazil, Argentina, Chile, and Uruguay**, in a transaction valued at roughly **R$ 7.1 billion**, including working-capital adjustments. The deal made Minerva **the largest beef exporter in South America**, expanding both slaughter capacity and geographic reach.

By the third quarter of 2025, the company had **fully integrated 10 of those facilities** — all except the Uruguayan operations, which remain pending regulatory clearance. The process, initially expected to take up to 18 months, was **completed in less than a year**.

“September was the first month with all assets performing normally — without ramp-up, with normalized margins and cash cycles,” said CFO **Edison Ticle**.

CEO **Fernando Queiroz** added that the alignment of administrative, commercial, and industrial systems across the new units accelerated synergies. “Integration wasn’t just fast — it was disciplined and structured,” he said.

The newly consolidated operations are expected to generate **around R$ 17 billion in annualized revenue** and about **R$ 1.6 billion in EBITDA**, slightly above the company’s initial forecast.

### Market skepticism and acquisition cost

The Marfrig deal was controversial from the start. Several analysts argued that Minerva **overpaid for assets** in a volatile, low-margin industry. Ticle pushed back on that view during the call.

“Many said the acquisition was expensive, but looking at performance now, it’s clearly value-accretive,” he said.

According to Ticle, the company paid an effective **4.6× EBITDA multiple**, below Minerva’s historical range of **5.0–5.5×**. “Even under conservative assumptions, it was a compelling deal, both strategically and financially,” he said, emphasizing that the transaction strengthened Minerva’s ability to **arbitrate between countries, currencies, and export markets** — one of its core advantages.

Still, the CFO’s defense didn’t stop the selloff. Investors remain wary of the company’s **high exposure to export cycles and currency volatility**, especially amid tightening global demand and beef price adjustments in China and the U.S.

### Record cash generation, muted reaction

Operational efficiency translated into the strongest cash result in Minerva’s history: **R$ 2.5 billion in free cash flow**, boosted by a **R$ 2.5 billion working-capital release** from inventory reductions, mainly in the U.S. market. **Net debt fell 17%**, to **R$ 11.8 billion**, reducing leverage to **2.5× EBITDA**, the lowest since 2022.

“Even in a conservative scenario, we’ll end the year with R$ 1.5 billion in free cash flow and leverage below 2.5 times,” said Ticle.

The CFO also mentioned ongoing **bond buybacks and liability management**, which helped optimize the debt profile and cut financial costs.

### A strong quarter overshadowed by market doubt

Despite the numbers, the tone in trading rooms was skeptical. Some analysts questioned whether Minerva’s **record cash generation** reflected sustainable fundamentals or short-term working-capital movements. Others pointed out that the company’s exposure to external markets — once a strength — could turn into pressure if beef exports lose momentum.

CEO **Fernando Queiroz** closed the call with optimism: “Integration was done quickly but with consistency. The challenge now is to turn scale into sustainable expansion.”

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/minerva-marfrig-deal-record-cash-flow-3q25/