Auna (AUNA) Q3 2024 earnings summary

Executive summary

• Adjusted EBITDA rose 23% year-over-year on an FX neutral basis, with margin expanding 1.4 percentage points, driven by strong performance in Mexico and Peru and cautious growth in Colombia.

• Revenue increased 13% year-over-year to PEN 1.1 billion, led by 16% growth in Mexico and 13% in Peru, with Colombia growing 11% in local currency.

• Net income reached S/101 million in 3Q24, up from S/8 million in 2Q24 and a net loss of S/18 million in 3Q23; adjusted net income was S/75 million.

• Leverage ratio improved to 3.7x from 4.1x in 2Q24, marking the eighth consecutive quarter of deleveraging.

• Positive trends in Mexico and Peru expected to continue, while Colombia faces short-term regulatory headwinds.

Financial highlights

• Consolidated revenue grew 13% year-over-year and 12% year-to-date on an FX neutral basis.

• Adjusted EBITDA increased 23% year-over-year, with margin up to just over 22%.

• Adjusted net income was PEN 75 million for the quarter, or PEN 0.98 per share.

• Operating profit benefited from a one-time reversal of a holdback related to the OCA acquisition; excluding this, operating profit was still up PEN 36 million year-over-year.

• Cash position at quarter-end was PEN 200 million, with pre-tax operating cash flow up 20% year-to-date to PEN 629 million.

Outlook and guidance

• EBITDA growth guidance remains at 20% FX neutral for the year, with confidence in achieving targets despite Colombia's uncertainties.

• Deleveraging is expected to continue, targeting a net debt to Adjusted EBITDA ratio below 3x by end of 2025 or early 2026, driven by EBITDA growth and cash generation.

• OncoMexico is in pilot phase, with a full launch expected after further testing and ramp-up in B2B and B2C segments.

• Guidance reflects current macroeconomic and regulatory assumptions; subject to change if conditions shift.