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

Executive summary

• Net revenue excluding foot-and-mouth disease grew 26.1% in 4Q24 and 14.1% in 12M24, reaching R$1,017.8 million, with all business units expanding and significant improvements in efficiency and productivity.

• Profitability indicators improved, with gross margin, EBITDA, and net profit all increasing; adjusted EBITDA margin rose to 21.6% in 2024.

• Seven new products were launched, including LeanVac, Safesui Glasser One, and other innovative solutions for production and companion animals.

• Significant restructuring, cost management, and SG&A reduction initiatives led to improved profitability and cash generation.

• Maintained a solid financial position with strong operating cash generation, low leverage, and disciplined cost management.

Financial highlights

• Consolidated net revenue reached R$1,024.8 million in 2024, up from R$943.3 million in 2023, with 4Q24 revenue at R$346.6 million (+26.1% YoY).

• Gross margin improved to 51.4% in 2024, with gross profit at R$517.7 million.

• Adjusted EBITDA in 12M24 was R$221.7 million (+65.0% YoY), with margin at 21.6%.

• Net income attributable to shareholders was R$134.3 million in 2024, reversing a net loss of R$49.98 million in 2023.

• Cash and cash equivalents at year-end were R$233.96 million, supporting future investments.

Outlook and guidance

• Expectation of continued product launches, international expansion, and value creation for shareholders, with ongoing investment in R&D.

• No significant operational impacts identified from the 2024 Rio Grande do Sul climate event.

• No formal guidance provided for product growth potential.