Ouro Fino Saúde Animal Participações (OFSA3) Q1 2025 earnings summary

Executive summary

• Net revenue grew 6.3% year-over-year in Q1 2025 to R$189.6 million, with gross margin reaching 48.5%, the highest since 2021.

• Adjusted EBITDA fell 22.6% to R$18.7 million, and adjusted net income dropped 76.3% to R$2.1 million, mainly due to higher SG&A and R&D expenses and lower financial income after a R$120 million capital reduction.

• Eight new products were launched in the last 12 months, including LeanVac and Boostin, supporting growth in core business lines.

• Interim financial statements for Q1 2025 reviewed with no material modifications required by auditors.

• Name changed to Ourofino S.A. and corporate activities expanded following shareholder approval.

Financial highlights

• Net revenue: R$189.6 million (+6.3% YoY); gross profit: R$91.9 million (+7.3% YoY); gross margin: 48.5% (+0.5 p.p.).

• Adjusted EBITDA: R$18.7 million (-22.6% YoY); adjusted EBITDA margin: 9.9% (-3.7 p.p.).

• Net income for the quarter was R$2.05 million, down from R$12.85 million year-over-year.

• Cash availability at quarter-end was R$148.5 million.

• SG&A expenses increased due to higher commercial and marketing investments.

Outlook and guidance

• Expects significant growth for the remainder of 2025, driven by new product launches and market share gains in core lines.

• Strategic focus on expanding the product portfolio and maintaining robust cash generation to support future growth.

• Second installment of R$67.5 million from FINEP financing released in April 2025 to support ongoing R&D and innovation investments.

• Anticipate some margin pressure from increased R&D and commercial expenses.