Fertilizantes Heringer S.A., traded on B3 under the ticker FHER3, is a Brazilian company with a long track record in the agribusiness inputs sector. Founded in 1968 in the city of Manhuaçu, in the state of Minas Gerais, it began operations supplying fertilizers mainly to coffee producers in the eastern region of the state. Over the following decades, it expanded both geographically and in terms of portfolio, initially reaching Espírito Santo in 1973 and the state of São Paulo in 1979, which significantly broadened its customer base. In the 1990s, the company expanded with new blending units in Minas Gerais and created a research center focused on coffee cultivation, reinforcing its technical specialization in plant nutrition. In 2004, it was converted from a limited liability company into a corporation, received private equity investment and, in 2007, carried out its initial public offering of shares on the Novo Mercado, consolidating its presence in the Brazilian capital markets.

The recent trajectory of Fertilizantes Heringer has been marked by important corporate and financial events. In 2008, it completed the construction of a single superphosphate (SSP) production plant in Paraná, strengthening its phosphates industrial base. In 2012, it acquired Maxifértil Fertilizantes in Porto Alegre (RS) and, in 2013, began operations in Cubatão (SP) through an outsourced unit, in addition to incorporating Logfert Transportes. Starting in 2019, the company entered into judicial reorganization, which was ratified in 2020 and closed in 2022 after it fulfilled the obligations set out in the approved plan. In parallel, there was a change in control: in 2021, a contract was signed for the sale of control to EuroChem Comércio de Produtos Químicos Ltda., a transaction that was approved by CADE in 2022. EuroChem consolidated its position with a tender offer in 2023, coming to hold most of the shares, while a minority portion remained in free float on B3, with the company maintaining its category A issuer registration.

Fertilizantes Heringer’s business model is focused on the production, formulation, commercialization and distribution of fertilizers for agribusiness. The company operates mainly with basic fertilizers, NPK blends and specialty fertilizers, including a line of premium products developed in house. Basic fertilizers comprise raw materials such as urea, potassium chloride, ammonium sulfate, single superphosphate (SSP), triple superphosphate (TSP), MAP and DAP, which can be sold directly or used as inputs in blends. NPK formulas result from the physical blending of basic fertilizers according to specifications defined by customers, while specialty and premium fertilizers are formulated to meet specific needs of different crops, with a focus on plant nutrition and agricultural productivity. These products are sold to farmers, agricultural companies, resellers, cooperatives and trading companies, with all fertilizers duly registered with the Ministry of Agriculture and Livestock (MAPA), in accordance with current regulations.

The company’s operating structure is organized into two segments: industrial and blending plants. The industrial segment comprises the sulfuric acid and single superphosphate (SSP) production plant located in Paranaguá (PR), currently hibernated, which has historically added value to the phosphate chain. The blending segment, which accounts for all recent operating revenue, consists of 12 operational units, one storage unit and two hibernated units. In 2024, consolidated net revenue reached around R$ 4.61 billion, fully attributable to the blending segment, while the industrial segment had a residual financial contribution. The blending operation consists of a simple physical mixing process of raw materials, resulting in fertilizers whose granule size depends on the inputs used, accompanied by physical and chemical analyses performed in the company’s own laboratory certified by ANDA at the Paulínia (SP) unit.

In terms of geographic and logistics footprint, Fertilizantes Heringer maintains its headquarters in Paulínia (SP) and a network of units that comprehensively serves the South, Southeast, Center-West and Northeast regions of Brazil. In 2024, the company operated storage, blending and distribution units in Viana (ES), Manhuaçu, Iguatama and Três Corações (MG), Candeias (BA), Ourinhos, Paulínia 1 and Paulínia 2 (SP), Rio Verde (GO), Rio Grande (RS), Dourados (MS) and Rosário do Catete (SE), as well as a storage unit in Catalão (GO) and hibernated units in Porto Alegre (RS) and Paranaguá (PR). In October 2024, the Dourados and Rosário do Catete units were hibernated as part of asset optimization, and the Catalão unit began operating exclusively as a storage point. Distribution is carried out predominantly by outsourced road transport, using sales channels operated by the company’s own technical commercial team, representatives and regional resellers, which allows for broad reach in product delivery.

Heringer’s commercial activities are directly linked to the Brazilian NPK fertilizer market. According to 2024 data, the total volume of fertilizer deliveries in the country was approximately 45.7 million tons of NPK, of which the company accounted for about 2.09 million tons distributed among the Center-West, Northeast, North, Southeast and South regions. The company is not significantly concentrated in any single customer, with no buyer responsible for more than 10% of annual net revenue. Demand for its products is seasonal, reflecting the agricultural calendar, with greater concentration in the second half of the year, influenced especially by the company’s strong presence in the Southeast, a region where fertilizer consumption intensifies in the second half. In 2024, there was a slight postponement of deliveries between semesters due to a more cautious stance by producers when making purchase decisions.

The competitive environment in which Fertilizantes Heringer operates is characterized by a high level of competition, with strong price pressure and influence from the international market for raw materials. More than 80% of the raw materials used are imported, with costs directly linked to global quotations for inputs such as urea, MAP and potassium chloride, in addition to variations in international and domestic logistics. This volatility can affect producers’ purchasing behavior, leading to the postponement or cancellation of orders and impacting the company’s profitability. On the other hand, Heringer operates with proprietary technology at its blending units and maintains seasonal labor aligned with the agricultural calendar, which helps to adjust operating capacity to demand. The company also invests in associated technical services, such as programs to encourage soil analysis, technical lectures, pre- and post-sales support and specialized guidance in crop nutrition.

From a regulatory standpoint, Fertilizantes Heringer’s operations are subject to a broad set of legal and environmental requirements. At the sector level, MAPA requires the registration of facilities to enable the import, export, production and commercialization of fertilizers, as well as the individual registration of each product. In the environmental field, the company goes through licensing processes in three phases – Preliminary License, Installation License and Operating License – in addition to federal technical registration with IBAMA and obtaining municipal permits, fire department authorizations and licenses for the use of chemical products controlled by the Civil and Federal Police and the Army, especially in the case of inputs such as ammonium nitrate. The company maintains an Integrated Management System (SGI) to monitor environmental obligations, conducts periodic monitoring of water, effluents, atmospheric emissions and noise, and manages waste from generation to final disposal, hiring accredited laboratories and specialized consulting firms.

With regard to environmental, social and governance practices, Fertilizantes Heringer states that it is committed to conducting its activities in an environmentally and socially responsible manner, prioritizing environmental and social management, continuous process improvement and the promotion of health and safety for workers and neighboring communities. The company undertakes community relations initiatives, such as lectures and socio-environmental actions, and seeks the systematic minimization of health and environmental risks arising from its industrial and commercial operations. However, it does not currently publish an annual sustainability report or a specific ESG document, does not formally adopt a materiality matrix, does not have public key ESG performance indicators and does not carry out a greenhouse gas emissions inventory. The company is also subject to the General Data Protection Law (LGPD) and to oversight by the National Data Protection Authority (ANPD), which introduces additional obligations in terms of information security and personal data governance in its administrative and commercial operations.

Fertilizantes Heringer currently generates 100% of its net revenue in Brazil, with its activities concentrated in the domestic market for fertilizers and agricultural inputs. The FHER3 common shares remain listed on B3, even though the company is under the indirect control of EuroChem, and represent a company with a relevant track record in supplying nutrients for different agricultural crops, focusing on formulated and specialty products destined for multiple producing regions across the country.