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EBITDA Increases 68.5% YoY, with Margin Expansion QoQ

EBITDA Increases 68.5% YoY, with Margin Expansion QoQ

Barretos, August 14, 2008 − Minerva (BOVESPA: BEEF3; Bloomberg: BEEF3.BZ; Reuters: BEEF3.SA), one of the market leaders in Brazil in the production and sale of fresh beef, leather and live cattle exports, announces today its results for the second quarter of 2008 (2Q08). Except where stated otherwise, the financial and operating information in this release is presented in BRGAAP and Brazilian real (R$), and comparisons are in relation to the same periods of 2007.

2Q08 HIGHLIGHTS 
  • Organic growth in net revenue of 86.9% year on year,  boosted by sales in the domestic market, which grew by 132.6% and accounted for 37% of sales in the quarter, up from  28% in 2Q07. In relation to 1Q08, net sales grew by 23.3%. 

  •  Minerva gained market share in both the domestic and export markets. Minerva’s share ofexports expanded to 16% in 2Q08, up from 12% a year ago. Slaughter         capacity grew to 83% in the period, while idle capacity in the industry increased in Brazil. 

  • The average fresh beef price rose 28% (53% in dollar terms) in the export market and 44% in the domestic market. The successful pass-through of prices ahead of         competitors reflects the efficient sales policy focused on the  small and midsized retailers in the domestic market and the solid positioning in growing and profitable markets such as the Middle East and Russia. 

  • EBITDA posted strong growth of 68.5%, for EBITDA margin in the quarter of 8.3%. In relation to 1Q08, EBITDA grew by 29.8%, with EBITDA margin expansion of 50 bases points, reflecting the greater operational flexibility and efficiency. 

  • On August 6, Minerva launched its strategy of international expansion in the Mercosul region, with the acquisition of 70% of the Paraguay company Friasa S.A., which holds a 10-year lease on a meatpacking plant in Asuncion with slaughter capacity of 700 head/day. 

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Phone : +55 (11) 3074-2444
E-mail: ri@minerva.com.br

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