Ourofino Saúde Animal sees profit slump despite revenue boost amid manufacturing challenges

Brazilian veterinary group Ourofino Saúde Animal delivered strong top-line growth of 30.7% in Q2 2026 to R$338.7 million, but adjusted net profit fell 33.3% to R$15.9 million as stock-loss provisions linked to manufacturing irregularities compressed margins and offset operational momentum across its production animal, companion animal and international divisions..

Ourofino reported second-quarter 2026 net revenue of R$338.7 million, up 30.7% year-on-year, continuing a pattern of robust top-line growth that has characterised recent quarters. Adjusted EBITDA rose 22.1% to R$60.8 million, though the EBITDA margin eased as cost pressures built.

The production animal division — the group’s largest at R$252.4 million in net revenue — grew 28.2%, but gross margin slipped from 46.7% to 43.9%, partly driven by stock-loss provisions linked to identified irregularities in the manufacturing process. The companion animal business was the standout growth contributor, posting net revenue of R$49.8 million, up 44.8%, while international sales climbed 30.5% to R$36.5 million, supported by the Mexican operation and broader Latin American commercial initiatives.

Despite the revenue strength, adjusted net profit fell 33.3% to R$15.9 million — the most visible consequence of the manufacturing provisions. The net financial result improved marginally to a loss of R$3.5 million from R$4.1 million a year earlier.

The results present a familiar tension for investors: a company delivering strong volume and geographic expansion while operational execution issues continue to weigh on bottom-line conversion. Resolution of the manufacturing irregularities will be key to whether Ourofino can translate its revenue trajectory into commensurate profit growth in the second half.