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 such as base oils, lubricants, paints, industrial processes, and agro, as well as the Argentinian, Brazilian, and Mexican markets, demonstrated 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: 2024 began slowly, hampered by widespread logistics issues. The market is currently feeling stagnant, with uncertainties surrounding freight costs and client acceptance. 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.

Química Anastacio keeps ranking among the top 100 chemical distributors, according to ICIS. What is the strategy behind this and where do you see potential for growth?

JK: It is all about focusing on the fundamentals of distribution. As distributors, we emphasize efficiency and recognize that our strong relationship with suppliers and customers hinges on our ability to offer competitive costs and exceptional service. Our leadership in Brazilian distribution demands competitive pricing strategies, robust sourcing capabilities, and adept international management, prioritizing FOB over CFR and negotiating locally for efficient logistic solutions. 

We are still focusing on organic growth across Brazil, Argentina and Mexico. In Argentina, for instance, we want to solidify our market presence and foresee continued stability after a new government. 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.

How do you envision incorporating AI into your business?

MV: There is an inevitable integration of new technologies into our business. Thus, 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: Human involvement remains crucial in the trading and distribution business, where complexities like specifications, logistics, and market volatility require human judgment and expertise. At Anastacio, we recognize the importance of technology without expecting it to disrupt our industry drastically. 

What is Química Anastacio’s approach to ESG?

JK: 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 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 Western producers, with a focus on EPS, PU, and polyolefin segments.