CM Hospitalar (VVEO3) investor relations material

Executive summary

• Net revenue in 2Q25 grew 2.5% year-over-year to R$2,815.5 million, driven by Laboratories, Vaccines, and Retail, offsetting declines in Hospitals and Clinics; disciplined execution and integration efforts supported improved ROIC and margin expansion.

• Gross margin and adjusted EBITDA margin expanded year-over-year, reflecting successful pricing, contract selectivity, and operational efficiency initiatives.

• Cash generation remained strong, with a 12-day reduction in the cash cycle year-over-year, despite lower CMED adjustments and increased inventory levels.

• Expense reduction initiatives, including SG&A and freight, captured synergies from integrations and acquisitions such as DF Log.

• Strategic contract renegotiations prioritized margin improvement over volume, impacting revenue mix but supporting profitability.

Financial highlights

• Net revenue reached R$2,815.5 million in 2Q25 (+2.5% YoY); 1H25 net revenue was R$5,600.4 million (-1.7% YoY).

• Gross profit for 2Q25 was R$422.5 million (+6.8% YoY), with a margin of 15.0%.

• Adjusted EBITDA for 2Q25 was R$177.9 million (+0.2% YoY), margin 6.3%.

• Free cash flow in 2Q25 was R$176.8 million; cash cycle improved to 57 days from 69 days in 2Q24.

• Adjusted net loss in 2Q25 was R$44.3 million, with a margin of -1.6%.

Outlook and guidance

• Growth expected in higher-margin, higher-ROIC businesses in the second half as contract renegotiations and new launches take effect.

• Focus on cash generation, deleveraging, and normalization of inventory and supplier profile from 3Q25 onwards.

• Synergies from DF Log acquisition and continued two-digit growth anticipated in labs and vaccines.