Auna (AUNA) Q2 2024 earnings summary

Executive summary

• Growth momentum accelerated in Q2 2024, with consolidated revenue rising 18% year-over-year to S/1,120 million, driven by scaling the integrated healthcare platform and regional synergies across Peru, Colombia, and Mexico.

• Adjusted EBITDA increased 31% YoY to S/248 million (25% FX neutral), with margin expanding to 22.1%, reflecting strong operational performance and effective growth strategy.

• Net income reached S/8 million, reversing a net loss in 1Q24 but down from S/23 million in 2Q23 due to negative FX effects.

• Strategic initiatives in Mexico, including the launch of OncoMexico, the first integrated oncology insurance in Mexico, are underway, with early results from physician recruitment and bundled service offerings.

• Top-line revenue and operating income growth were supported by improved operational efficiencies and higher occupancy.

Financial highlights

• Revenue increased 18% in soles year-over-year, or 13% FX neutral, led by mature segments in Peru and Colombia.

• Adjusted EBITDA grew 31% in soles (25% FX neutral), with margin expanding to 22.1%.

• Peru: Revenue up 15% YoY to S/441 million, occupancy at 72%, and Adjusted EBITDA nearly doubled to S/93 million, margin at 21%.

• Mexico: Revenue up 3% YoY, Adjusted EBITDA flat, with a 33% margin; focus on high-complexity services and physician recruitment.

• Colombia: Revenue up 18.3% YoY, Adjusted EBITDA up over 10%, margin at 15.3%, driven by high-complexity mix and occupancy gains.

• Adjusted Net Income was S/13 million, down from S/36 million in 2Q23, mainly due to non-cash FX expenses.

Outlook and guidance

• On track to deliver at least 20% Adjusted EBITDA growth (FX neutral) for 2024.

• Peru expected to drive material growth; Mexico's growth to accelerate in H2 2024 and 2025 as initiatives mature.

• Colombia to grow moderately, prioritizing cash flow amid regulatory environment.

• Guidance is based on current macroeconomic and regulatory assumptions in Mexico, Peru, and Colombia.

• Medium-term target of 3x net debt to EBITDA remains in focus.