How did market dynamics in 2023 and early 2024 impact the company’s performance?

JK: We achieved double-digit volume and revenue growth. Launching new products frequently has allowed this growth, compensating for slower economic conditions, specifically in Brazil. In 2023, we saw a significant price decline, preventing increased revenue growth despite maintaining high volume increases. During 2023, sectors like base oils, lubricants, paints, industrial processes, and agro and the Argentinian, Brazilian, and Mexican markets showed resilience. As we pass the second half of 2024, we see a gradual price recovery, setting the stage for anticipated double-digit revenue growth fueled by commodity price upticks. The life sciences sectors —specifically cosmetics, pharmaceuticals, and personal care— have emerged as notable performers, demonstrating robust growth rates exceeding broader economic trends.

MV: While initial stockpiles have decreased and demand is resurging, freight rates show signs of decline. We anticipate a market recovery from late August through December this year. Where do you see potential for organic and inorganic growth?

JK: We are still focusing on organic growth across Brazil, Argentina, and Mexico. Mexico represents a new market, and despite intense competition, our goal is to expand our footprint by leveraging the country’s strategic geopolitical alignment with the US and its robust industrial base. Having said this, we are also actively exploring potential acquisitions of an SME on the Pacific coast, potentially announcing it by 2025. What are the main challenges you see in the jurisdictions in which it operates?

MV: As a trading company, some gaps and challenges benefit us. Both Africa and Latin America are facing the need for robust logistical and financial support. This is crucial for facilitating trade across diverse markets. However, one of our primary challenges lies in talent acquisitions, which is essential for growth and international trade management. To address this, we have intensified our recruitment efforts, establishing dedicated human resources roles focused on identifying and nurturing talent. How do you envision incorporating AI into your business?

MV: In early 2024, we formed a special committee to explore AI and other technologies in our operations, like pricing strategies, deal monitoring, and logistics optimization. While AI can enhance decision-making through data analysis, it still falls short in understanding the nuanced market dynamics, and lacks the personal connection that is paramount for the business.

JK: Anastacio has an IT team of 20+ focusing on improving efficiency through Robotic Process Automation (RPA) to streamline bureaucratic processes and through power BIs and dashboards to leverage relevant information access for decision making across the 19 market segments in which we work. What is Química Anastacio’s approach to ESG?

JK: ESG is integral to our corporate strategy, with ethics and sustainability being our sixth core values. We aim to be 100% energy-reliant from clean sources and achieve carbon neutrality by 2025. Regarding our portfolio, we have regular targets set by our development team to bring more sustainable products to our offering; recently, we launched a line of biodegradable plastic. We are proud signatories of the UN Global Compact, underscoring our commitment to global sustainability standards. Socially, we prioritize education through initiatives like the Anastacio Institute, focusing on providing second-term education in low-income areas near our facilities. We also engage in various social projects and seek financial support from our business partners to scale these efforts. What are some of the companies’ goals for the second half of this year and 2025?

JK: We aim to improve our market penetration by strengthening our relationship with customers and suppliers, improving continuously the quality of our platform, and expanding our reach. At Química Anastacio, we want to leverage digitization and process optimization for competitive pricing and broader market expansion, especially in the specialty segment.

MV: Our top priorities are people and market growth. We aim to retain top talents and attract younger generations to our trading and distribution teams. We focus on consolidating our presence in Latin America, particularly in Mexico and Chile, while exploring opportunities in Africa and the Middle East. Additionally, we are committed to regaining market share in specific segments facing competitiveness challenges such as acrylates, plasticizers, cellulose, and resins. Our whole team is dedicated to strengthening partnerships with international and European and Western producers, with a focus on EPS, PU, and polyolefin segments.