November 9, 2011

Minerva's Q3 net profit totals US$8.86million

Brazil's meat processor, Minerva, announced a net profit of BRL15.5 million (US$8.86 million) for the third quarter of 2011, down 36.5% from the same month a year earlier.

Minerva's net revenue was BRL1.06billion (US$605.7 million), up 16.9% from the third quarter of 2010, and 13% higher than its net revenue from the second quarter, driven by beef export volumes that rose 10% on-year, even while Brazil's beef industry overall saw exports decline 26% in the quarter.

The drop in profits can be explained somewhat by the company's expansion in Brazil's northeast during the quarter, and its shared struggle with competitors over foreign exchange rates early in the third quarter.

Minerva opened a new distribution centre in Fortaleza, Ceara state, during the third quarter, its first centre in Brazil's northeast.