Blau Farmacêutica (BLAU3) Q3 2025 earnings summary

Executive summary

• Net revenue reached BRL 475 million in 3Q25, stable year-over-year, with the Aesthetics segment leading growth and 11% increase in new product launches; Hospital segment was impacted by capacity constraints and lower public channel sales.

• Gross margin improved for the eighth consecutive quarter, reaching 41% (or 42% excluding a BRL 8 million Hemarus provision), driven by operational efficiency, favorable sales mix, and the completion of the Bergamo turnaround.

• Net income rose 52% year-over-year to BRL 106 million, mainly due to interest and FX gains from the Prothya divestment; recurring net income was BRL 72 million, up 5% sequentially.

• Major investments in capacity expansion and R&D, with CAPEX of BRL 117 million in 3Q25, up 68% year-over-year.

• Strategic advances include new production lines, expansion of the Aesthetics business, and progress in monoclonal antibody development.

Financial highlights

• Gross margin: 41% (42% adjusted for Hemarus provision), up 110 bps year-over-year; gross profit increased to BRL 193 million.

• Recurring EBITDA was BRL 114 million (24.1% margin), down 3% year-over-year; margin would be 25.8% excluding Hemarus provision.

• Net income margin reached 22.2% in 3Q25, up 760 bps year-over-year; recurring net income margin was 15.2%.

• Working capital increased to BRL 964 million (54.5% of LTM net revenue), mainly due to higher inventories.

• Net debt rose to BRL 197 million, leverage at 0.4x EBITDA; cash covers 62% of debt amortizations through 2028.

Outlook and guidance

• Production capacity set to expand by at least 70% by 2026, with new lines in São Paulo, Cotia, Caucaia, and Pernambuco.

• New launches and regulatory approvals expected to drive growth, with BRL 3.2 billion in TAM submitted to ANVISA and BRL 3.0 billion to be launched by 2027.

• Prothya divestment proceeds (EUR 52.1 million) to be recognized in 4Q25, strengthening cash position and supporting innovation and expansion.

• Margins expected to sustainably exceed historical values as investments and international expansion materialize.