JOPA3

Josapar – Joaquim Oliveira S.A. Participações is a privately held Brazilian company, with common and preferred shares traded on B3 under the tickers JOPA3 and JOPA4. The group’s origin dates back to 1911, when Joaquim Oliveira emigrated from Portugal to Pelotas (RS) and began commercial activities in warehouses. In 1922, he became the sole owner of the “Ao Tira Fogo” warehouse, a milestone considered the beginning of the business history that would later give rise to Josapar, which was formally incorporated as a corporation in 1952. Over the following decades, the company expanded its scope of operations, moving through self-service retail, agriculture, livestock and processed food production, with active participation of the second and third generations of the Oliveira family in management.

The diversification trajectory began early, with expansion to other states, acquisition of farmland and a roasting plant for the production of Café Flor, as well as entry into segments such as industrial glues and organic fertilizers still during World War II. In the 1950s, the group created Granja 4 Irmãos S.A., focused on rice cultivation and cattle raising, reinforcing its link to the rice value chain. In 1953, the controlling shareholders opened Supermercado Real in Porto Alegre, considered the first supermarket in Rio Grande do Sul, an experience that consolidated their knowledge in distribution and self-service. The definitive shift toward the food industry came with the founding of Suprarroz in 1973 and, in the same year, the creation of the Arroz Tio João brand, which would become Josapar’s main brand asset in the milled rice segment.

In its current business model, Josapar is described as one of the largest rice millers in Brazil, with activities focused on the processing, industrialization and commercialization of rice, beans and other packaged foods. The company is not a primary producer of grains, operating mainly from the reception of paddy rice and other raw materials, carrying out drying, grading, storage, milling and packaging. The company holds a relevant competitive position in several regions of the country, with emphasis on the Tio João brand, which leads the premium white rice and parboiled rice segment in some Brazilian states. In addition to its food operations, the group controls Real Empreendimentos S.A., focused on real estate sales, leases and shopping mall operations, an activity that accounts for a minority share of consolidated revenue.

Josapar’s operating segments reflect a diversified portfolio, with a clear predominance of rice. In 2024, revenue from the white rice segment accounted for 56% of total revenue, while parboiled rice represented 10%. Semi-prepared products, which include both prepared rice lines and the soy division (SupraSoy and Soy+), contributed 7% of revenue. Organomineral NPK Nº1 fertilizer accounted for 23% in 2022, with a declining share in subsequent years, while beans, real estate and other products represented smaller fractions of revenue. Historically, white rice has been the main revenue driver, followed by parboiled rice and higher value-added products associated with the Tio João and Meu Biju brands.

Josapar’s brand portfolio is structured to serve different price ranges and consumption profiles. The Tio João brand covers white, parboiled, brown and organic brown rice, as well as higher value-added lines such as Tio João 7 Grãos, Variedades Mundiais, Cozinha Fácil, Cozinha & Sabor, rice flour and cake and brownie mixes. In 2022, the company entered the black bean segment with the Tio João brand, initially in Brasília, expanding in 2024 to a supermarket chain in Rio de Janeiro. The Meu Biju brand operates in the rice and bean segment in multiple varieties, positioned as a good value-for-money option and competitive protection on the shelf against popular brands. The portfolio also includes smaller brands such as Tio Mingote, No Ponto, Nikkoh, Beleza, Impacto, Bataclan and Pedrinho, as well as exclusive distribution in Brazil of Nova Oliva extra virgin olive oils.

In plant-based protein products, Josapar has developed and marketed the SupraSoy line since the mid-1990s, under a technology partnership originally established with Grupo PTI, now DuPont. SupraSoy consists of powdered foods made with isolated soy protein, enriched with vitamins and minerals, gluten- and lactose-free, aimed at various consumers, including children from one year of age, adults and seniors. Complementarily, the Soy+ brand represents an instant powdered soy-based drink available in different flavors. These products fit into the diversification strategy toward higher value-added foods with functional attributes, although they represent a smaller share of revenue compared to the core milled rice business.

Josapar’s industrial and logistics infrastructure is mostly located in Brazil, with a focus on the South region and a presence in other relevant agricultural production and consumption hubs. The company has six industrial units, two of them in Pelotas (RS), as well as plants in Itaqui (RS), Jaboatão dos Guararapes (PE) and Cristalina (GO). Units in Vila Princesa (Pelotas) and Itaqui also operate as centers for reception, storage and drying of raw materials, as do the facilities in Santa Vitória do Palmar (RS) and Dom Pedrito (RS), which are dedicated exclusively to these stages. The logistics network is complemented by eight distribution centers in Cajamar (SP), Brasília (DF), Contagem (MG), Belém (PA), Embu das Artes (SP), Simões Filho (BA), Itaguaí (RJ) and Caucaia (CE), helping increase the reach of the company’s products across all regions of the country. Josapar’s rice exports, which began in 1999 with occasional shipments to Japan, now reach more than 40 countries in the Americas, the Middle East and Africa, although foreign revenue remains below 10% of gross revenue.

Josapar’s production process is typical of the rice milling industry, involving dehusking, polishing, separation, electronic sorting, whitening and packaging, with an additional hydrothermal treatment step in the case of parboiled rice. The company does not have its own rice fields, preferring to promote partner producers through its agricultural inputs unit, which supplies fertilizers – including Organomineral NPK Nº1 – and provides technical support to farms. This model reinforces Josapar’s role as an industrial link in the chain, connecting agricultural production, concentrated mainly in Rio Grande do Sul, to the domestic consumer market. In regulatory terms, the company’s core activities are not subject to specific economic regulation by sector agencies, and the company states that it does not currently disclose structured environmental, social and governance (ESG) information, despite already being a listed share issuer on B3.

On the customer base side, Josapar shows a high degree of diversification, with no dependence on any single buyer accounting individually for more than 10% of net revenue in its recent fiscal years, indicating strong exposure to multiple food retail chains, cash-and-carry wholesalers and other fast-moving consumer goods distribution channels. The combination of established brands in rice, beans and higher value-added foods with a nationwide distribution network, industrial presence in different states and a small share of international revenue characterizes the company’s operating profile. Thus, Josapar is positioned in the Brazilian market as a processed food company with a predominant focus on milled rice, complemented by beans, soy-based products, imported olive oils and agricultural inputs linked to its main supply chain, all under a corporate structure listed on B3 through the JOPA3 and JOPA4 shares.