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

Executive summary

• Net revenue grew 19.3% year-over-year in 2Q25 to R$259.2 million, and 13.4% for 1H25 to R$448.8 million, driven by portfolio diversification, innovation, and new product launches such as Boostin, NexLaner, LeanVac, and Safesui Glasser One.

• Adjusted EBITDA rose 26.5% in 2Q25, with gross margin improving to 51.4% in the quarter and 50.2% for the first half.

• Operating cash flow for 1H25 was R$50.5 million, with cash position at R$147.6 million at the end of 2Q25.

• Extraordinary capital reduction of R$120 million was paid to shareholders in January 2025, supported by strong cash generation.

• International operations and production animal segments were key growth drivers, while the companion animal segment saw modest or negative growth due to macroeconomic pressures.

Financial highlights

• 2Q25 net revenue: R$259.2 million (+19.3% YoY); 1H25: R$448.8 million (+13.4% YoY).

• Gross margin for 2Q25 was 51.4%, and for 1H25 was 50.2%, both improving year-over-year.

• Adjusted EBITDA in 2Q25 was R$49.8 million (+26.5% YoY); margin up to 19.2%.

• Cash and equivalents at June 30, 2025, totaled R$147.6 million.

• Dividend and capital reduction payments to shareholders totaled R$155 million in May and R$120 million in January 2025.

Outlook and guidance

• Management expects continued growth in both production and companion animal segments in H2, with a focus on innovation, product launches, and international expansion.

• R&D investments at 8.8% of net revenue in 1H25 support future revenue and value generation.

• The company aims to maintain operational efficiency and prudent capital allocation to support long-term value creation.