Ouro Fino Saúde Animal Participações (OFSA3) Q2 2025 earnings summary

Executive summary

• Net revenue grew 19.3% year-over-year in 2Q25, reaching R$259.2 million, and 13.4% for the first half, driven by new product launches, portfolio diversification, and business strategies.

• Seven new products launched in the past year, including Boostin, Nexlaner, LeanVac, and Safesui Glasser One, supporting strong performance in livestock and market expansion.

• International operations and production animal segments were key growth drivers, with Colombia and Chile showing robust growth and high margins above 60%.

• Companion animal segment experienced slower growth or a slight dip in Q2 due to macroeconomic challenges but is expected to recover in the second half.

• Interim financial statements for the quarter and six-month periods ended June 30, 2025, were reviewed with no material modifications required under IFRS and Brazilian standards.

Financial highlights

• Q2 revenues increased 19.3% year-over-year to R$259.2 million, with gross margin up to 51.4% and adjusted EBITDA rising 26.5% to R$49.8 million.

• Net revenue for 6M25 was R$448.8 million, up 13.4% year-over-year, with gross profit for the six months at R$225.2 million.

• Operating cash generation reached R$50.5 million in 1H25, with cash availability at R$147.6 million at June 30, 2025.

• Adjusted SG&A was R$77.3 million, 29.8% of net revenue, down 2.2 percentage points over net revenue.

• Adjusted net income in 2Q25 was R$23.8 million (+21.2% YoY); 1H25: R$25.9 million (-8.9% YoY).

Outlook and guidance

• Expects continued strong performance in the second half, particularly in the pet segment as macroeconomic pressures ease.

• Ongoing investments in R&D and commercial teams to support future growth, with R&D at 8.8% of net revenue in 1H25.

• Emphasizes maintaining compliance with debt covenants and a strong liquidity position to support ongoing operations and investments.