Ouro Fino Saúde Animal Participações (OFSA3) Q4 2024 earnings summary

Executive summary

• Achieved robust growth and returned to historical profitability in 2024, with all business units expanding and significant improvements in efficiency and productivity.

• Net revenue excluding foot-and-mouth disease grew 26.1% in 4Q24 and 14.1% in 12M24, reaching R$1,017.8 million.

• Consolidated net income was R$134.3 million in 2024, reversing a net loss of R$50 million in 2023.

• Launched seven new products, including innovative vaccines and solutions for both production and companion animals.

• Executed a capital reduction of R$120 million, returning value to shareholders without affecting R&D investment.

Financial highlights

• Net revenue reached R$1,025.5 million in 2024 (+8.7% YoY), with EBITDA and operating profit improving significantly.

• Adjusted EBITDA margin rose to 21.6% in 2024 (+7.4 p.p. YoY), and gross margin consolidated at 51.4%.

• Cash generation was strong at R$73.9 million, with year-end cash and equivalents at R$234 million.

• Leverage reduced to 0.6x EBITDA, with 83.7% of debt long-term and net debt at R$125.4 million.

• SG&A as a percentage of net revenue decreased by 2.1 p.p. in 4Q24.

Outlook and guidance

• Confident in continued strong performance and value creation in 2025, especially in poultry and swine.

• New product launches, particularly in biologicals, are key drivers for future international expansion.

• No significant operational impacts identified from 2024 climate events in Rio Grande do Sul.