Auna (AUNA) Q1 2025 earnings summary

Executive summary

• Consolidated revenue decreased 3% year-over-year to S/1,042 million, but increased 4% FXN, with Peru's strong performance offsetting operational setbacks and market softness in Mexico and Colombia.

• Adjusted EBITDA decreased 8% YoY to S/222 million, but increased 1% FXN; margin declined 1.1 percentage points to 21.4% YoY, mainly due to Mexico and Colombia headwinds.

• Adjusted Net Income rose to S/55 million from S/22 million in 1Q24; net income was positive for the fifth consecutive quarter.

• Leverage ratio remained stable at 3.6x; cash position decreased 15% sequentially to S/201 million.

• The company remains focused on recovering growth momentum in Mexico and expanding Oncosalud's network, while maintaining efficiency programs.

Financial highlights

• Consolidated revenue: S/1,042 million (-3% YoY, +4% FXN); Adjusted EBITDA: S/222 million (-8% YoY, +1% FXN); margin 21.4%.

• Peru's revenue grew 10% and Adjusted EBITDA rose 19% YoY, with margin expansion of 1.7 percentage points to 22.1%.

• Mexico's revenue declined 4% and Adjusted EBITDA fell 5% YoY (L.C.); margin at 33.2%.

• Colombia's revenue increased 5% YoY (L.C.), driven by risk-sharing models and payer diversification; Adjusted EBITDA margin at 12.2%.

• Free cash flow was S/42 million; maintenance CapEx at 4.5% of revenues.

Outlook and guidance

• Management expects to recover volumes in Mexico and Colombia, with Peru continuing to underpin growth and profitability.

• No specific country-level guidance; internal target remains 20% full-year EBITDA growth, but management is cautious due to uncertainties in Mexico and Colombia.

• CapEx expected at or below $50 million for the year; effective tax rate expected to be around 38% for 2025.

• Strategic focus on efficiency, physician engagement, and collaboration with insurers to drive future performance.

• Targeting medium-term leverage ratio below 3.0x Net Debt-to-Adjusted EBITDA.