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 up 0.5 percentage points to 48.5%.

• 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.

• Net income for Q1 2025 was R$2.05 million, a significant decrease from R$12.85 million in Q1 2024.

• A capital reduction of R$120 million was executed in January 2025, returning cash to shareholders.

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.).

• Adjusted net income: R$2.1 million (-76.3% YoY); adjusted net margin: 1.1% (-3.8 p.p.).

• Operating cash generation reached R$57.7 million, with cash availability at R$148.5 million at quarter-end.

• Net financial expense increased to R$4.0 million, mainly due to the capital reduction.

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.

• Revenue growth anticipated to help recover net margin performance.

• The company expects to comply with debt covenants and maintain investment capacity following the capital reduction.

• Ongoing investments in R&D are supported by new financing, with a R$67.5 million tranche released in April 2025.