Ourofino Saúde Animal Reports 30.7% Revenue Growth in Q2 2026 as Production Animal Business Leads

Ourofino Saúde Animal closed the second quarter of 2026 with consolidated net revenue of R$338.7 million, an increase of 30.7% year on year, while adjusted EBITDA reached R$60.8 million, up 22.1%. The results underline continued demand for animal-health products in Brazil and international markets, with the Production Animal division remaining the company’s largest revenue contributor.

The headline growth, however, needs to be read alongside pressure on profitability and manufacturing execution, making the quarter more nuanced than the revenue numbers alone suggest.

Production Animal remains the core growth engine

Ourofino’s Production Animal business generated approximately R$252.4 million in Q2 revenue, representing roughly 74.5% of consolidated quarterly revenue.

The division grew 28.2% YoY, demonstrating strong underlying commercial momentum across livestock-health products.

The calculation is significant because it shows that the Production Animal operation remains the company’s economic centre of gravity even as its companion-animal and international businesses expand.

Companion Animal grows faster, but from a smaller base

One of the strongest growth rates came from the Companion Animal division, where revenue increased 44.8% to R$49.8 million.

Although substantially smaller than Production Animal, the pace suggests that Brazil’s expanding companion-animal healthcare market is becoming an increasingly important second growth pillar for Ourofino. International operations also performed strongly, with revenue increasing 30.5% to R$36.5 million. The company’s Mexican operation and broader Latin American commercial activities were identified as contributors to this performance.

Together, these figures indicate a business increasingly balancing its traditional livestock-health franchise with companion-animal and international growth opportunities.

EBITDA rises, but margin conversion weakens

The 22.1% increase in adjusted EBITDA to R$60.8 million represents solid operating growth, but it lagged the 30.7% increase in revenue. On a simple consolidated basis, adjusted EBITDA represented approximately 18.0% of revenue in Q2 2026.

More importantly, the company’s adjusted net profit fell 33.3% to R$15.9 million, despite the substantial increase in revenue and EBITDA. This divergence is the most important financial feature of the quarter.

Manufacturing issues become a profitability factor

The reported results indicate that stock-loss provisions associated with identified manufacturing irregularities affected the quarter. Within Production Animal, gross margin declined from 46.7% to 43.9%.

For an animal-health manufacturer, this is strategically important because production quality and inventory reliability are directly connected to:

• product availability;

• manufacturing cost;

• inventory write-offs;

• customer service levels;

• regulatory compliance; and

• ultimately, margin conversion.

The issue therefore deserves close monitoring in subsequent quarters.

Financial performance tells two different stories

Ourofino’s Q2 results can be viewed through two lenses.

The positive story:
Revenue increased by almost one-third, Production Animal remained strong, Companion Animal grew nearly 45%, international revenue expanded more than 30%, and EBITDA increased more than 20%.

The cautionary story:
EBITDA growth was slower than revenue growth, Production Animal gross margin declined, and adjusted net income fell by one-third.

For investors and animal-health industry analysts, the critical question is therefore whether the manufacturing-related pressures are temporary and containable or whether they represent a more persistent constraint on profitability.

Why the Production Animal performance matters

Brazil is one of the world’s major livestock-producing economies, with large-scale poultry, swine, cattle and dairy industries generating structural demand for veterinary medicines, vaccines, biologicals, antiparasitic products and other animal-health technologies.

Ourofino’s Q2 performance therefore provides a useful indicator of demand conditions in one of the world’s most important emerging animal-health markets.

The company’s R$252.4 million Production Animal quarterly revenue was more than five times its Companion Animal revenue, confirming that livestock health remains the company’s primary commercial engine. At the same time, the 44.8% Companion Animal growth rate suggests that pet-health expansion could gradually diversify Ourofino’s revenue mix.

AHI View: strong demand, but execution is now the variable to watch

The Q2 numbers point to healthy underlying demand but imperfect earnings conversion.

A 30.7% revenue increase is clearly strong. However, the slower EBITDA growth and substantially lower adjusted net profit indicate that growth is currently accompanied by cost and operational friction. For the remainder of 2026, three indicators will be particularly important:

1. Production Animal gross margin
A recovery toward the previous 46.7% level would indicate that manufacturing-related pressures are being resolved.

2. Companion Animal scalability
Sustaining growth close to the 45% Q2 rate would materially increase the division’s contribution to group growth.

3. International expansion
The 30.5% growth in international revenue suggests that Latin America could become an increasingly important geographic diversification strategy.

Bottom line

Ourofino’s Q2 2026 results show a high-growth animal-health company with strong demand across livestock, companion animals and international markets—but with profitability temporarily lagging top-line expansion.

The Production Animal division remains the foundation, generating approximately three-quarters of quarterly revenue. Yet the fastest-growing businesses are Companion Animal and International, potentially creating a more diversified revenue base over time.

The next test for Ourofino is therefore not simply whether it can continue growing revenue. It is whether the company can convert that growth into sustainable margin and net-profit expansion while resolving manufacturing-related pressures.