Ouro Fino Saúde Animal Participações (OFSA3) Q3 2024 earnings summary

Executive summary

• Net revenue grew 11.2% in 3Q24 and 8.5% in 9M24, reaching up to R$678.9 million, with all business units posting revenue growth and improved profitability.

• Profitability indicators, including gross margin, EBITDA, and net income, showed strong growth, with gross margin up 5.2–6.0 p.p., EBITDA margin up 4.9–8.5 p.p., and net margin up 10.3–11.6 p.p. year-over-year.

• Seven new products launched in 9M24 for swine, cattle, and companion animals, driven by R&D and partnerships.

• Recognized as third in the Top 100 Open Corps 2024 innovation ecosystem and among agribusiness startups.

• Interim financial statements reviewed with no material modifications noted by independent auditors.

Financial highlights

• Consolidated net revenue in 3Q24 was R$283.3 million, with 9M24 revenue up to R$678.9 million, and net income for 9M24 at R$71.4 million, reversing a prior year loss.

• Gross margin improved to 51.8% in 9M24, up 4.8–5.3 p.p. year-over-year, reaching historical highs.

• Adjusted EBITDA reached R$139.9 million in 9M24, up 82.1% year-over-year, with EBITDA margin up to 36%.

• Operational cash generation reached R$77.3 million in 9M24, with cash and cash equivalents at R$259.3 million.

• Expenses reduced from 33% to 23% of revenue, with SG&A down 5.1–9.1 p.p. and total expenses at BRL 200 million over two periods.

Outlook and guidance

• Positive outlook for Q4 2024 and 2025, with expectations of continued growth, margin expansion, and sustainable value creation driven by innovation and portfolio expansion.

• Strategic investments in R&D and innovation are expected to support future revenue and value creation.

• Plans to mitigate international logistics challenges and reduce volatility by 2025.

• No significant operational impacts identified from recent climate events; operations and liquidity remain stable.