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15/08/2017 - 13:29hs
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Middle East’s share in Minerva exports widened

Countries in the region accounted for 22% of total foreign sales for the Brazilian meat packer from July 2016 to June this year. Sales to Saudi Arabia were up 150% in the 12 months through June 2016.



São Paulo – The Middle East accounted for 22% of Brazilian meat packing company Minerva’s exports in the 12 months through June, it said this Monday (14), after which it further discussed results with investors at a conference on Tuesday (15). In the 12 months through June 2016, the region had taken in 21% of the company’s exports. The fund Salic, from Saudi Arabia, in the Middle East, owns a stake in Minerva.

Minerva’s results report highlights sales to Saudi Arabia, which were up 150%, as well as to the United Arab Emirates and Qatar.

Exports to African Arab countries slid by 16% in the 12 months through June 2017 from the preceding 12-month period. Egypt scaled down its imports due to currency depreciation, but the company pointed out that there were showed signs of recovery from Q2 this year, with Egypt regaining its status as Minerva’s top buyer in the region.

Speaking to investors, CEO Fernando Galletti de Queiroz said the pickup in sales to Egypt has to do with India’s supply issues. According to him, this paves the way for South American players not only in North Africa, but in regions such as Southeast Asia. In the first half of this year, the government of India banned trade in livestock for slaughter purposes.

Minerva’s worldwide exports slid by 12.7% to BRL 6.2 billion (USD 1.9 billion) in the 12 months through June 2017, but climbed by 6.5% year-on-year in Q2 to BRL 1.6 billion (USD 501 million), with foreign sales comprising 60.6% of total revenue. Exports were up 20.5% in Q2 from Q1, hinting at a recovery for the company.

Gross revenue was up 17% in Q2 to an all-time quarterly high at BRL 2.7 billion (USD 846 million). In the 12 months through June, gross revenue was up 2.5% to BRL 10.4 billion (USD 3.26 billion). Minerva executives said both the domestic and foreign markets played a role in this. In the 12 months through June 2018, the company is expecting to see revenue in the BRL 13 billion-14.4 billion range (USD 4 billion-USD 4.5 billion).

In July this year, Minerva completed its takeover of JBS Mercosul, formerly belonging to the JBS conglomerate. It now owns 11 plants in Brazil, six in Paraguay, five in Argentina, three in Uruguay and one in Colombia, and saw total daily slaughter capacity increased by 50% to 26,380 head of cattle daily.

*Translated by Gabriel Pomerancblum

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