Ouro Fino Saúde Animal Participações S.A. (OFSA3) Q4 FY2025 Earnings Call Transcript & Summary

I'm Marcelo, CFO of Ouro Fino Saude Animal. It's a great pleasure to have you all here, all our stockholders, investors. And we have this the results of quarter 4, 2025. We have -- starting with the Kleber, CEO, and we are going to talk a little about our goals. And I'll come back later talking about our financial closing. So now we call Kleber.

Hello, good morning, Marcelo. Good morning, everyone. It's a pleasure to be here. It's a pleasure to be here to present to you the results of the quarter 4 of 2025. We are very proud of what we have delivered so far. It's a journey that it comes from different decisions we have made, and we have managed the company for the different angles. And we are doing this to have the sales much more faster, and we are closing the 2025 with positive results. We are growing very fast and strong. It's very above the market, totally different than we have seen. And this is the fourth quarter, very consolidated. We grow around 20% a year. All the areas are growing with quality. We have here the income growth, net income growth, which is more than revenue. And also, we had also an adjusted of growth, which brought [indiscernible] of values, but we have a very elevated value. But we had growth around 30%. This is important because we had a positive result, which we had enhanced all the gross fees and also the revenues. We have seen -- we had a very long chain. But now we are going to present some results of 5, 4 years ago. We have been showing the good results in 2024. But of course, 2025, we had a very good net revenue because we had very good products. We're still having and enjoying the good results we had. I'm sure we have the products which still bring good results. Of course, we have a few makes, but this is very important because it shows how good we are and how good we have been bringing. Of course, this is -- we have to remind that we just got this growth because we had a very good beginning of the team because we have a very passionate group and they have -- and we are living the brand, Ouro Fino every day. And we are very happy with the results. I'm going to highlight some launching. Some things happened in the third quarter, but the others in the fourth one, but we have some important information and revenue. And also, we had a very strategic with the Korean company. And we have also a post-patent closing, which is the next lender with calls, which is a very complex treatment, which is very important for [indiscernible] agriculture, and also when we talk about cattle, the European cattle, which suffers a lot with tick. And also, we have well, which is for companion pets and also some other products which are developed, which are very differentiated from the other products in the market. We have here the Wellpet, which is a pill, which is palatable, and it has a protection better than the other ones in the market, and it's bringing with very easy access, which can -- which can bring the access to the ones who doesn't do this kind of protection because it brings a very good product. We have a very differentiated product. We have another -- which is synchronized with supplement, which bring -- which enhanced the fertility in the cattle, which is one of the leaders of the market, and it comes here with very good importance in the market. We have also the vaccines. We had one which was launched this year, which is the second in the world. So we have the biggest market of this, which is the Brazilian. We have a very good market share, which is our [indiscernible] capsules. And we are also consolidating our strategies. When we go back analyzing the -- our strategies in the market, you're going to understand -- you're going to remind that in the 2025, we had highlighted the cattle and poultries. We have launched other products to these areas, and we are growing to -- and also we grow more than 40% and now we had growth of 30%. So the focus we have been doing, it has been very important. As just a summary of the year. It was in a year that we closed almost every indicators of the company. We are going to discuss this later on. And of course, it was a very good governance work, which has been very important. We have been -- we are doing it ongoing. We also closed a very business cycle -- now we have a strategy from 2026 to 2030. It's very important because we have [indiscernible] path. We are accelerating the path to the partnerships, international partnerships. This is very important. We have been working these strategies. Also, we have very good work to be doing the product governance. Thing that we are in a very good path, we have been working very close and the team has been doing a very good work, a very good base to show that for the future years, we have been -- we are going to succeed as we have been fighting for. After 0later on, I'll be back in the Q&A. Now I'm going to pass to -- give the stage to Marcelo. Marcelo, it's with you now.

We have been seeing figures very well consolidated. We can see here in the fourth quarter 2024 and 2025, we have been growing. We had from -- in the accumulated 19.5%, something very important to understand. It's that the second year in a row that we have been closing of our revenue, which we had in 27.7%. But in comparison to the previous year, we had a growth. And also, we had a very important net income, which was 17.2%, but we got 14.1%. And this reflects, which was in a year -- a much more favorable year -- and we had many products which were -- which are now in the first or in the second in the market, position in the market. And then we have been seeing this. But also, we have seen the company going down the expenses, and this is important too. And also, we had the EBITDA, which had 24.1 but in the year was 27.7%. This reflects the reduced expenses of the company, but also preserving the core in the search and development of the company. And also, we have net income, which grew 17.2%. But in the accumulated, we have 14.1%, which was in collection of capital, which is reflecting our profile of investment. So we had the net income more than the company. Also, we had the growth of the EBITDA and also the income net growth more than the EBITDA as well. Now we have a very detailed information here. The consolidated results, we had in the quarter a growth of 23.2% and the accumulated is 19.5%. And we have here a consolidated that was 40.6%, which is higher than the other years. So it's -- it was the best net income in the animal segment, always reminding the capacity of the company to generate value to the whole market. We have here the companion animals results, we have been following that in 2025, it was a little less warmed, but we still have a very good growth, which was 10.4%. And we had a growth in the quarter in 24% that Kleber has mentioned previously. We had also a growth in gross profit, 71.3%, also reminding that the company has a very good ability and room to grow this. And also, we had the net revenue that was -- that it grows to 10.4%, which reflects the investments of the company to growing the whole market of companion animals. Other things we have to mention is the international operations. We have here the net revenue at 8.4%, which is higher in Brazil. Of course, we have a very strategic market, but also we have the inflection and also other financial important issues. This also reflects of operations because it brings the imported products. And also, we have a very good -- a very important results in the international operation. Of course, we have very good work in the branches in Mexico and other countries. It was a very important growth because it reflects the commitment of the company to the international operations agenda. We had an adjustment to the expenses. We had a going down, which reflects the commitment of the company, which brings the 27.5% dilution of these expenses, which brings the margin higher than the growing. So it's very important. Also, we have the; R&D investments. We brought here with 6.4% because we had lots of good projects. In this year, we had lots of releases. And then we had the cost of the R&D in 2024. But this percent is like 6.4%, which is around, but it's important to understand this investment is compared to the big companies and data to get closer. And we have this in continuous opportunities and strategies, of course. As we have here figures of the company, which was 27.4%, but I want to highlight not only the growth of the sales, but also the revenue, the cash availability, we had BRL 100 million, which is higher than the cash availability in 2024. The company has kept the cycle of growing of the net of cash availability, which has been representing a good management of this cash and which makes us much more comfortable to work in this growth, but also not only in the sales, but also in the cash availability. And also in a year, we diluted 10 years values at BRL [indiscernible] million in this, which represents a very healthy money cash availability. And also, we have here this structure -- capital structure because it triggers a very good growth, which is 0.85, which is accelerated, which is less in the market, which is less than the EBITDA, considering that these expenses is related to our investment profile, which is concentrated in the credit, which is allowed to development, which brings the rate of 15% mark. And also, we have an expenses, which brings the cost of capital, which is to our investment profile, which is very long in our cycle. We had a very below expenses, debt like 39.4% in more than 5 years. And we have seen how it's -- this is committed to the interest payments, and it's a very comfortable moment of the company because it shows that our investment agenda is very committed to the market mainly to the releases -- to release new products. We have finished -- we have closed the financial information. Now we have -- we are opening the Q&A to Kleber.

Just taking a look at the chat, but we have no questions so far. Just a minute, we have one. I wasn't reading -- I wasn't able to read the questions. There is a question to explore a little bit more our strategic plan. Regarding our strategic plan, we are following the same path as -- we can say that way. We have the plan to intensify or growing in the Latin American. We have been working with Mexico. Also in the [Brazil], we have a very [indiscernible] image, and we can see that this is a very important investment. Also, we have been investing in biologics. We also have some plans because we have some global products, but we also need to prepare the company. We have efficiency agenda, which is very important, especially to collect new market opportunities, which represents an enhancement of marketing, sales, and we have been working a very important agenda to develop these teams, these groups to grow in this. Of course, we still have a lot. Of course, we have a product agenda, which has been collecting the products, which has the better -- the best opportunities in the market. Of course, we still have an organic agenda, but it's related to the partners I have mentioned so far. And of course, we -- our commitment is to bring the company as the most admirable company in the world. Also, there is another question regarding a plan of extraordinary distribution of expenses. We don't have it. But we have an agenda for the next assemblies. Of course, we are going to have this above the minimum. Of course, we have the cash to have this money. Of course, we have the -- we must have the decrement of the authorization Board. And of course, we have in the future as a purpose in an agenda of distribution of expenses. And there's another question. What is the level of growth of 2026? We can't say for sure, we have a guidance to follow, but we want to grow more than the previous year. We had -- as I mentioned before, we had some products which was launched -- released in the end of the year. So we still have a lot to consolidate of revenue that it's important to guarantee the goals we still have. But we need to follow the guidance. And then in the future on, we are going to have more information. That was the questions -- that were the questions. We have no other ones. First of all, we want to thank our stockholders, mainly on Mitsui, which is in our Board, Ouro Fino Board, which are always working to bring the best results also our business partners, our clients which has been working with our financing -- and we have to remind that without this structure, we wouldn't be able to do anything. It's important to understand that. And we hope you all have a very good 2026, and this is what we committed here. So now I give the stage to Marcelo.

Thank you, Kleber. I will also thank you all, everyone that supports our job or work here. The RI team is always ready to answer any doubts you have, and we hope that 2026 is very prosperous to everyone. [Statements in English on this transcript were spoken by an interpreter present on the live call.]