During the year 2023, the Brazilian company Minerva perceived a 40% drop in its profits and a 10% drop in its shares, the results come amid analysis by regulatory agencies. Uruguay and Brazil compared to the intentions of the Brazilian company to buy 16 refrigeration plants from Marfrig.
With a total of 79.46 million dollars of net earnings, The Brazilian company had a drop of 39.6% during 2023 and compared to 2022. Meanwhile, the net income They represented a decrease of 13.2% with a total of 5.38 billion dollars.
The gross incomeFor their part, they also decreased by 12.9% during 2023 to $5.75 billion, while net profits fell 9.7% to a total of $514.35 million.
As for its main clients, exports to China They suffered a drop of 10% during 2023, represented by 48% of their total exports, which in 2022 corresponded to 58%. However, the profits by USA increased from 12% to 17%. Meanwhile, profits from other destinations remained the same.
The publication of these results caused the shares of Minerva drop by 10%, achieving a cumulative drop of 13% so far this year.
Minerva-Marfrig: they expect answers for the second quarter
Regarding the purchase of 16 refrigeration plants by the Brazilian company from Marfrig – a transaction that generated controversy within the Uruguay since, if consolidated, it would put more than 50% of the country’s work in Brazilian hands – the company assured that they expect responses from the second quarter of this year.
This information was provided by the CFO and director of investor relations of Minerva Foods, Edison Ticleat a press conference where the company’s fourth quarter results and the total balance for last year were presented.
From Brazil They are also analyzing the case – through the agency CADE – and they assured that they are behind in the resolution regarding the purchase. On the other hand, from the Commission for the Promotion and Defense of Competitionit is estimated that the answer would be available from mid-May.
The operation aroused criticism from various sectors
The operation generated controversy from the beginning and both political leaders and businessmen in the sector spoke out against it, considering that there may be concentration, since Minerva would accumulate 45% of the Uruguayan work.
In recent days, the president of the National Meat Institute (INAC), Conrado Ferber, who, although he chose “not to make public the fears or objections,” noted: “We have technical support that is sufficient for us, but obviously there are also technical reasons to allow the merger. There are a number of pros and cons, but the cons far outweigh the pros.”
For Ferber, The acquisition “does not contribute to a market that in our country is quite clear and balanced, it is not perfect, but we understand that this would be absolutely distorting” and he stated “it is a risk in the main business of the country.”
Source: Ambito
