Pre-tax profits for the third quarter of the year for the beef processor that also has processing interests in the pig meat and poultry sectors were R$134.5 million.

For the fourth straight quarter Minerva recorded positive adjusted operating cash flow of R$126.0 million, totalling R$346.6 million in the last 12 months.

The company said the result reflects the combination of the positive cattle cycle in Brazil and Minerva’s strategic plan, which involves production based in South America, operational efficiency, focus on risk management and a strict financial austerity policy.

Minerva reported EBITDA margin of 11.7 per cent in the third quarter of the year, 3.1 p.p. up year-over-year - the company’s highest margin since its IPO in 2007.

The company's third quarter results were marked by the continued growth in gross revenue, positively impacted by the increase in fresh beef exports. Gross revenue totalled R$1,223.5 million in the quarter, 7.2 per cent and 7.6 per cent more than in the second quarter of 2012 and the equivalent quarter of the previous year.

Domestic beef prices rose by 6.9 per cent compared to the second quarter of the year.

The US dollar remained high, increasing by 14.9 per cent over the third quarter of 2011 when converted into Brazilian Reals. The effects on beef prices both in the domestic and export markets reflect the weakening of the main export countries, because of increased grain prices (corn and soybean), combined with the substitution effect caused by the higher prices of other proteins.

A company spokesman said: "We announced in early October the signing of the Agreement for the Purchase of Shares of Frigomerc, a company located in Paraguay, thus underlining our leadership in the country, which is an important global player in the beef industry."

"In August, we launched Minerva’s new visual identity, which now brings under a single concept all the group companies, packaging, fleet and other identification features at the points of sale. The company has since adopted the logo “Minerva Foods”, an umbrella brand for all of the group’s brands."

Fernando Galletti de Queiroz, CEO said: "This was another quarter when we generated positive operating and free cash flows. The company has also improved its operating margins constantly, as reflected in the 3Q12 EBITDA margin - the highest since Minerva’s IPO in 2007, thanks to the combination of a consistent strategic plan that focused the operations in South America, aligned to efficient distribution in both the domestic and export markets, the incessant pursuit of greater operational efficiency, as well as strict risk control and financial management.

"These factors, coupled with the inversion of the cattle cycle curve, turned Minerva into an industry benchmark in numerous operational and financial aspects.

"The recent depreciation of the Brazilian Real against the US dollar, coupled with the continued weakening of Brazil’s main competitors, who are highly dependent on grains (corn and soybean), further benefitted the penetration of Brazilian beef in the international market."

He added that in August, at the Rodeo Festival in Barretos, the company launched Minerva’s new visual identity, which now brings under a single concept all the group companies, packaging, fleet and other identification features at the points of sale. The company has since adopted the logo “Minerva Foods”, an umbrella brand for all of the group’s brands: Minerva, Pul (Uruguay) and Friasa (Paraguay).