High interest rates and changes in consumer behavior trends were to blame.
The domestic pet business from Ourofino Saúde Animal posted sales of R$29.1 million ($5.8M/€5.4M) in the first quarter of 2023. This is down 12.9% compared to the same period in 2022 when it reached R$33.4 million ($6.7M/€6.2M) in sales.
According to the third largest animal health company in Brazil, the return of behavior to pre-pandemic patterns has increased the consumption of household goods that compete with pet products.
Ourofino’s domestic pet business was also impacted by “household debt and the trend towards a slowdown in consumption driven by inflation.” High interest rates have also “hampered the flow of products,” it says.
On a positive note, the firm reported it maintained the title as third in the general ranking of animal health companies in Brazil, being the largest of Brazilian origin.
CEO Kleber Gomes commented that the quarterly results did not meet the company’s expectations.
“The business environment has been retracted due to political instability in the country and the high cost of capital, expectations of above-target inflation and increased household debt.”
Despite the financial setbacks, the São Paulo-based pharma company says that it has recently expanded beyond medicinal, prevention and care products to include supplements, dermo-cosmetics and stem cell-based cell therapy. It also launched iUse Pet, an app that connects pet parents and vets.
Ourofino also highlighted that it invested 9.4% of net revenue in Q1 2023—R$17.2 million ($3.4M/€3.2M)—in R&D.
In September 2022, Tokyo-based Mitsui purchased 29.4% of the company’s shares for $67.4 million (€68.2M)
The latest articles
Supertails raises $15 million in Series B funding
The Indian start-up wants to gain more customers and enhance its offline business strategy.
Lyka Pet Food expands manufacturing capabilities to Victoria
The Australian pet food manufacturer aims to improve its logistics strategy.
From Symrise to Pets at Home: a new round of appointments in the pet industry
As many as 8 pet players have recently appointed top-level executives to their management teams. GlobalPETS takes a look.
Weekly newsletter to stay up-to-date
Discover what’s happening in the pet industry. Get the must-read stories and insights in your inbox.