Minerva S.A.

Overview Key strengths Key risks Operations in many South American countries and recent acquisition in Australia allow access to a global consumer market. Favorable cattle cycle in Brazil and Paraguay, with cattle price declining 20%-30% compared with last year. Increasing sales to new markets, such as Mexico and Indonesia, widening export diversity. Sound balance sheet and strong liquidity provide a cushion during industry downturns. Exposure to trade barriers, such as China's recent import ban on Brazil?s beef, and high share of exports to the former country. Volatile cattle and beef prices, and exposure to global supply and demand fluctuations. Narrower product diversity than those of higher-rated peers. Sizable gross debt and rising interest payments. Global beef prices declined following China's

...Despite lower beef prices, we maintain our view that the company will post favorable margins for at least the next two years. Global beef prices declined following China's slow economic recovery after its exit from the zero-tolerance COVID-19 policy last year, since China accounted for 43% and 35% of Minerva's total export revenue in 2022 and in the 12 months ended March...

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