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 growth and improved profitability, supported by new product launches and strategic initiatives.

• Profitability indicators, including gross margin, EBITDA, and net income, showed strong year-over-year growth, with margin expansion and robust cash flow.

• Seven new products were launched in 9M24, driven by internal research, partnerships, and innovation committees.

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

• Financial statements reviewed by independent auditors with no modifications or reservations.

Financial highlights

• Consolidated net revenue reached up to R$678.9 million for 9M24, with Q3 2024 revenue up 11.2% and EBITDA margin expanding; gross margin improved by up to 6.0 p.p. year-over-year.

• Adjusted EBITDA reached R$139.9 million in 9M24, up 82.1% year-over-year; net income for 9M24 was R$71.4 million, reversing a prior year loss.

• Expenses reduced from 33% to 23% of revenue, with SG&A down by up to 9.1% in Q3 2024.

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

• Total investment reached R$78.8 million, supporting product launches and margin expansion.

Outlook and guidance

• Management expects a strong finish to 2024 and a positive cycle for agriculture and animal health in 2025, with new product launches and innovation pipeline supporting future growth.

• International logistics challenges are being addressed, with improvements targeted for 2025.

• No significant operational impacts identified from recent climate events as of the report date.