Minerva Foods prioritizes debt reduction and limits dividends

Minerva Foods has announced a strategic shift to prioritize debt reduction and deleveraging. The company intends to use its cash generation to lower its current net debt-to-EBITDA ratio, which stands at 2.9 times.

As part of this financial discipline, Minerva will limit dividend distributions to 25% of adjusted annual net profit until leverage reaches adequate levels. This move follows inquiries from the CVM regarding previous statements made during the company’s Financial Day. The company noted that it has already repurchased and canceled over R$ 1.2 billion in bonds on the secondary market since the start of 2026.

Itaú BBA analysts maintain a 40.7% upside potential for Minerva’s shares, setting a 2026 target price of R$ 5.50. However, the bank suggests that investors remain cautious, waiting for more concrete signs of free cash flow generation and debt reduction. The investment thesis heavily relies on the company’s ability to transform structural advantages into visible cash flow and normalize working capital amidst high capital costs.