Auna (AUNA) Q2 2024 earnings summary

Executive summary

• Growth momentum accelerated in Q2 2024, with consolidated revenue up 18% year-over-year to S/1,120 million and strong performance in Peru and Colombia, alongside improving results in Mexico.

• Adjusted EBITDA increased 31% year-over-year to S/248 million (FX neutral up 25%), with margin expanding to 22.1%; operating income rose 29%.

• Strategic initiatives in Mexico, including OncoMexico, are underway, with early positive results from physician recruitment and bundled service offerings.

• 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.

• OncoMexico, the first integrated oncology insurance in Mexico, was launched as a pilot for full deployment in 2025.

Financial highlights

• Revenue grew 18% year-over-year to S/1,120 million (13% FX neutral), led by mature segments in Peru and Colombia.

• Adjusted EBITDA rose 31% year-over-year to S/248 million (25% FX neutral), with margin reaching 22.1%.

• Operating profit grew 34% year-over-year to S/183 million, driven by a 19% increase in gross profit.

• Adjusted net income remained positive, supported by higher operating profit and a deferred tax benefit, but offset by FX losses due to Peruvian sol movements.

• Operating cash flow generation remained solid; organic CapEx stable versus 2023, with a one-time 47 million soles earn-out payment impacting investment cash flow.

Outlook and guidance

• On track to deliver at least 20% adjusted EBITDA growth in FX neutral terms for 2024.

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

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

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