ODER4

Conservas Oderich S.A., whose ODER3 and ODER4 shares are traded on B3, is a Brazilian food company founded in 1908 by Adolfo Oderich and his son Carlos Henrique in the city of São Sebastião do Caí, in the state of Rio Grande do Sul. Initially called Carlos H. Oderich & Cia, the company stood out as a pioneer in mastering techniques for preserving canned meats and vegetables. More than a century later, the company remains under family control, now in its 4th generation, preparing the 5th generation to continue the business. The main headquarters is still located at the same address as its foundation, maintaining a strong connection to its origins and to Rio Grande do Sul’s industrial tradition.

Oderich’s business model is centered on the processing of industrialized foods, focusing on animal proteins, vegetables, canned fruits, tomato products, pickles and seasonings. The company operates five plants, four of them in Rio Grande do Sul, in the cities of São Sebastião do Caí, Pelotas and Eldorado do Sul, and one in Orizona, in the state of Goiás. In addition, it has an industrial plant in Luziânia (GO), operated by its subsidiary Oderich Alimentos Ltda., and a distribution center in Bahia. The company structures its operations based on the development of the entire production chain of its main items, working with fruit and vegetable growers to ensure the supply of raw materials with defined health and quality standards, including technical and, in some cases, financial support.

The main unit in São Sebastião do Caí is the leading operating hub, accounting for the largest share of the company’s net revenue, and concentrates the production of canned meats, mayonnaise, ketchup, mustard, canned and frozen sausages, as well as ready-to-eat canned dishes such as feijoada, tripe stew, meatballs and meats in sauce, with or without vegetables. This production supplies the Brazilian domestic market through different channels, including retail, wholesale, distribution, industrial kitchens, food service and public tenders aimed at school meal programs and the Armed Forces, in addition to the foreign market. The Pelotas plant specializes in preserved vegetables, pickles, seasonings, compotes and canned fruits, producing items such as peas, mixed vegetables, canned peaches and figs, cut fruit sweets, olives, beets, onions, mushrooms, asparagus, powdered seasonings and pickles in glass jars, with sales centralized by the main unit.

In Eldorado do Sul, Oderich vertically integrates a significant part of its supply chain through its own metalworking facility responsible for manufacturing cans, lids, bottoms and keys for metal packaging. This unit meets approximately 90% of the group’s internal demand for metal packaging and also sells about 10% of its production to third parties, with installed capacity sufficient for a significant increase in output. The production of cans in different thicknesses, conical and rectangular formats, as well as cans for pâtés and varnishing and lithography services, allows the company to reduce costs, increase competitiveness and speed up canning processes, a relevant aspect in a processed food business.

In the Midwest, the Orizona plant plays a strategic role in the tomato product and preserved vegetable line, producing concentrated tomato pulp in aseptic bags and drums, tomato paste, tomato sauces, canned or chilled corn, peas, mixed vegetables, concentrated guava pulp and canned pineapple in syrup. The subsidiary Oderich Alimentos Ltda., in Luziânia, complements this portfolio by producing mainly tomato pulp, as well as sauces, tomato paste, vegetables and condiments. Together, these operations strengthen the company’s presence in high-turnover categories in everyday food consumption, such as tomato products, corn and preserved vegetables, and help distribute the production base between the South and the Midwest, taking advantage of different agroclimatic and logistics conditions.

Oderich’s commercial operations cover both domestic and foreign markets, with a presence in more than 60 countries across Africa, Latin America, Asia, Oceania and Europe. In 2024, sales in Brazil accounted for about two-thirds of gross revenue, while the foreign market represented approximately one-third of revenue, with no single foreign country having an individually relevant share of revenue. The company has no customers that account for 10% or more of its net revenue, which indicates a diversified buyer base in terms of channels and geographies. As ODER3 and ODER4 shares are traded on B3, they provide exposure to a processed food business with combined exposure to domestic consumption and exports.

From a regulatory standpoint, the company is subject to a strict framework of sanitary, environmental and food safety standards in Brazil and in the countries to which it exports, covering industrialization, packaging, storage, distribution and product labeling. The company states that it complies with these requirements in order to meet relevant standards and reports that, up to the date of its reference form, it has not faced significant problems with regulatory authorities. In parallel, it invests in industrial infrastructure that includes water capture and treatment, electrical substations, generator sets to reduce costs during peak hours, boilers adapted to regional biomass sources and cold storage chambers with capacity for up to 6,000 tons, which allows it to manage the seasonality of raw materials and strategic inventories.

In environmental, social and governance (ESG) dimensions, Oderich maintains effluent treatment plants at its food facilities and uses closed-loop processes for treating wastewater. Solid animal waste is autoclaved and converted into tallow, grease and meat meal, while other waste is separated by type for recycling of metals, plastics, paper and cardboard, with toxic waste sent to controlled landfills in accordance with legislation. Environmental management is audited by a third party, in compliance with environmental license requirements, through a Mandatory Audit Report. The company develops projects aligned with various UN Sustainable Development Goals, such as zero hunger, health, education, clean water, clean energy, decent work, innovation, sustainable cities, responsible consumption and climate action, and states that it is in the project phase for adopting sustainability reports under the GRI standard, as well as for improving its disclosure of ESG indicators, materiality matrix and emissions inventories.

From an operational and governance standpoint, the business relies on a highly mechanized industrial park and intensive use of technology in processes such as cooking, sterilization, freezing and filling, requiring a specialized technical staff in mechanics, electrical, electronics, pneumatics and hydraulics. The company highlights corporate values related to learning, personal development, relationships, honesty, transparency, environmental and social responsibility, as well as a focus on teamwork. For investors analyzing ODER3 and ODER4 shares on B3, Oderich presents itself, according to its reference form, as a processed food company with strong production integration, geographic diversification of plants and a significant presence in domestic and foreign markets, operating across multiple categories of preserved foods, tomato products, canned proteins and condiments.