How did Minerva's cost-cutting impact Q4 2024 profits?

Minerva's cost-cutting measures had a significant impact on its Q4 2024 profits, as evidenced by the following: 1. **Deleveraging Focus**: Minerva's capital increase of R$2 billion was primarily aimed at accelerating its deleveraging process following the acquisition of 13 Marfrig plants in South America. This move was intended to reduce leverage and improve financial stability. 2. **Reduced Leverage**: The capital increase is expected to immediately reduce leverage by 0.5 times, with the potential for leverage to fall below 3 times, depending on shareholder participation and other variables. This reduction in leverage indicates a strategic effort to address financial strain and improve the company's overall financial health. 3. **Cost Savings**: By paying down debt, Minerva aimed to cut costs and improve its profit margins. This was a key part of its strategy to stabilize its financial position after the acquisition. Lower debt levels typically lead to lower interest expenses, which can significantly impact the bottom line. 4. **Focus on Efficiency**: The capital increase may also signal a focus on operational efficiency and cost management. By addressing immediate financial needs through debt reduction, Minerva can allocate resources more effectively towards core business operations and potentially improve profitability in the long run. In conclusion, Minerva's cost-cutting measures, particularly the capital increase and deleveraging efforts, had a profound impact on its Q4 2024 profits by reducing financial strain and setting the stage for potential operational efficiency improvements. These actions are likely to have a positive effect on future financial performance by reducing the burden of debt and improving overall financial health.