Minerva Foods Flags Potential $300m-plus Revenue Impact From Us Tariffs

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Minerva Foods, 1 of Brazil’s largest nutrient processors, has quantified nan imaginable effect connected gross from President Donald Trump’s tariffs.

Trump exercised his promise made successful July connected Wednesday (6 August) to raise import tariffs connected Brazilian equipment to 50% from 10%, prompting President Luiz Inacio Lula da Silva to petition talks pinch nan World Trade Organization.

While immoderate Brazilian products are exempt from nan US import levies, meat, poultry and java are not.

Minerva Foods booked gross successful 2024 of 34.1bn reais.

“Based connected nan results of nan past 12 months, nan company’s consolidated vulnerability to nan US marketplace accounted for astir 16% of revenue, pinch Brazil representing astir 30% of that exposure,” nan institution said connected Wednesday.

“Therefore, Brazilian exports taxable to nan caller tariff argumentation whitethorn person a maximum imaginable effect estimated 5% of nett revenue.”

However, Minerva Foods explained it whitethorn person a definite constituent of leverage owed to its geographical diverseness successful nutrient proviso to nan US.

“The institution hereby announces that it accesses nan US marketplace done its operations successful Brazil, Argentina, Paraguay, Uruguay and Australia.

“It is worthy noting that, successful statement pinch our geographic diversification strategy, vulnerability to nan US marketplace besides takes spot done our operations successful Argentina, Paraguay, Uruguay, and Australia, allowing nan institution to maximise its expertise to arbitrate betwixt markets, trim risks, leverage opportunities, and respond efficiently to script changes specified arsenic this one.”

The Brazilian president said successful an question and reply pinch Reuters on Wednesday that ‘he saw nary room for nonstop talks’ pinch Trump astatine present, successful what would magnitude to a “humiliation”.

Lula described US-Brazil relations astatine a 200-year nadir aft Trump tied nan caller tariff to his demands for an extremity to nan prosecution of right-wing erstwhile President Jair Bolsonaro, who is opinionated proceedings for plotting to overturn nan 2022 election, Reuters reported.

Meanwhile, Minerva Foods said it posted gross successful nan 2nd 4th of fiscal 2025 of 13.9bn reais, an 81.6% summation from a twelvemonth earlier.

The institution confirmed successful its results position that it concluded nan acquisition successful October of assets successful Brazil, Argentina and Chile from nutrient rival Marfrig Global Foods.

It included 11 plants and a distribution centre successful Brazil, a installation successful Argentina, and a mill successful Chile for a full information of 7.5bn reais.

When nan projected plus woody pinch Marfrig was first announced successful 2023, 3 plants successful Uruguay were besides included.

However, that portion of nan transaction was subsequently blocked by Uruguay’s title regulator, La Comisión de Promoción y Defensa de la Competencia (Coprodec), successful May past year.

Minerva Foods past submitted a revised proposal pinch nan antitrust authority successful February this year, pinch nan proviso to waste 1 of nan factories station conclusion of nan deal.

The institution said successful nan second-quarter results position that it is still awaiting a consequence from Coprodec.

Elsewhere successful nan latest results, Minerva Foods’ EBITDA people almost doubled to 1.3bn reais from 744.6m reais a twelvemonth earlier, though nan separator dipped to 9.4% from 9.7%.

Based connected an almost 40% summation successful nutrient volumes, nett income surged to 458.3m reais from 95.4m reais.

“Minerva Foods’ beardown world footprint remains 1 of nan cardinal pillars of our performance. In 2Q-25, astir 60% of consolidated gross gross came from world markets, underscoring our export-oriented strategy and nan competitiveness of our South American assets,” it said.