Solubio, a biological products company controlled by private equity firm Aqua Capital, has returned to a growth trajectory in 2025 following financial restructuring and operational improvements, with management projecting revenues reaching at least R$200 million (US$40 million) and EBITDA exceeding R$40 million.
The turnaround follows a challenging period for Brazil's agricultural input sector. Founded in 2016, Solubio grew steadily through 2022 when revenues reached R$190 million, before contracting to R$150 million in 2024 amid sector-wide pressures affecting input suppliers.
Ernesto Cavasin, Solubio CEO, characterized 2025 as a recovery year that was driven by positive first-half EBITDA of R$8 million—a period typically generating negative results—and July representing the company's strongest month historically.
The operational improvement enabled early redemption of Agricultural Receivables Certificates (CRAs) issued in 2021 (R$100 million) and 2022 (R$150 million) through financial engineering requiring R$70 million in disbursements. The restructuring reinforced guarantees for Solubio's third CRA issued in September 2024 (R$130 million) and secured short-term cash strengthening of approximately R$15 million.
"Now, we're going to market to refresh cash with about R$40 million," Cavasin stated, indicating plans for raising additional capital following the debt restructuring.
R&D Investment Acceleration Supports Product Pipeline
With accelerating growth, Solubio's research and development investment will increase to 5% of revenue, from approximately 3% in recent years. Two new registered products were launched during 2025, with six additional technologies prepared for 2026 market entry.
"It's necessary to strengthen R&D structure to maintain competitiveness in a market with more companies, excess factories, and lower margins. We're expanding our lines," Cavasin noted.
The expansion strategy includes new partnerships with fertilizer companies, while maintaining focus on on-farm biological products—the company's core positioning since inception. This on-farm production model differs from centralized fermentation facilities, enabling fresh product delivery and reducing cold chain logistics requirements.
Microalgae Platform Gains Commercial Momentum
Solubio continues investing in microalgae as biological inputs, with the Primafert solution improving crop stress resistance and drought tolerance, while providing carbon source and strengthening soil biology. The microalgae line, used primarily in grain and cotton crops, is projected to generate R$15 million in 2025 sales—representing 7.5% of total company revenue.
Additionally, microalgae-based products have attracted increasing attention in agricultural biologicals as sources of bioactive compounds, plant growth regulators, and stress mitigation agents. However, commercial-scale production economics and field efficacy documentation remain challenges for broader market penetration.
Meanwhile, the biological products market continues consolidating in Brazil following rapid expansion during 2019-2022, a period characterized by new entrant proliferation, capacity additions, and aggressive pricing. Current market conditions favor companies with established distribution, technical support capabilities, and differentiated product portfolios—attributes Solubio aims to strengthen through its R&D acceleration and product line expansion.
The company's recovery trajectory reflects broader stabilization in Brazil's agricultural input sector as commodity prices moderate, credit conditions normalize, and inventory overhangs clear—factors collectively improving demand visibility and margin sustainability for input suppliers.
(Editing by Leonardo Gottems, reporter for AgroPages)
AD
7th Biopesticides, Biostimulants and Biofertilizers Summit
Date: March 12-13, 2026 Venue: Le Méridien Shanghai Sheshan Hotel; Shanghai, China
Register today and secure your place!
