Blau Farmacêutica (BLAU3) Q2 2025 earnings summary

Executive summary

• Recurring EBITDA grew 34% year-over-year to BRL 122 million, with margin reaching 26.3%, the highest since 1Q23, and net income up 33% to BRL 63 million.

• Net revenue was BRL 465 million, stable year-over-year, impacted by capacity constraints and unscheduled plant shutdowns.

• Gross margin exceeded 40% for the seventh consecutive quarter, reaching 40.3% (+380 bps year-over-year), driven by operational optimization.

• Strategic investments focused on capacity expansion, R&D, and international growth, with new production lines completed and further expansion expected.

• Decision not to convert the Prothya loan into equity preserves capital, with EUR 50 million plus interest to be returned, strengthening cash position.

Financial highlights

• Recurring EBITDA: BRL 122 million (+34% year-over-year); margin 26.3% (+670 bps).

• Net revenue: BRL 465 million (stable year-over-year).

• Gross margin: 40.3% (+380 bps year-over-year).

• Net income grew 33% to BRL 63 million, with net margin up 340 bps to 13.6%.

• Working capital increased 5% year-over-year to BRL 941 million, mainly due to higher inventories.

Outlook and guidance

• Capacity expansion at current plants expected to be completed by year-end, supporting growth through 2028; new Pernambuco plant to address long-term demand.

• Short-term focus on productive optimization and reducing unscheduled stops to drive margin and volume.

• Medium-term plans include 70% production volume increase and acceleration of product launches, with prospects tied to additional production and Latin American expansion.

• Long-term outlook includes transformational projects in biotechnology and monoclonal antibodies, with margin gains from new launches.

• CapEx for the second half expected to average the first half, supporting ongoing capacity investments.