Blau Farmacêutica (BLAU3) Q4 2024 earnings summary

Executive summary

• Achieved record net revenue of BRL 1.75 billion in 2024, up 28% year-over-year, driven by organic growth, Bergamo acquisition, and strong performance in both Hospital and Retail + Aesthetics + Plasma segments.

• Recurring EBITDA rose 51% to BRL 391 million, with margin up 340 bps to 22.3% in 2024, supported by gross margin improvement and expense dilution.

• Recurring net income increased 23% to BRL 220 million, despite negative exchange rate impacts and higher financial expenses.

• Free cash flow to firm surged to BRL 276 million, 23x higher than 2023, reflecting operational and tax optimization.

• Net debt reduced by 85% to BRL 24 million, with leverage at 0.1x, highlighting financial solidity and increased flexibility.

Financial highlights

• 4Q24 net revenue grew 18% year-over-year to BRL 456 million; full-year revenue up 28% to BRL 1.75 billion.

• Gross profit for 2024 was BRL 659 million, up 34% from 2023; gross margin improved to 37.5%-37.6% (+180 bps).

• Recurring EBITDA margin rose to 25.6% in 4Q24 (+1,080 bps) and 22.3% for 2024 (+340 bps).

• Recurring net income was BRL 57 million in 4Q24 (+81%) and BRL 220 million in 2024 (+23%).

• Free cash flow to firm was BRL 276 million in 2024, a 23x increase from 2023.

Outlook and guidance

• Focus on launching new products, expanding market share, and global expansion, with continued investments in R&D, capacity, and verticalization of strategic products.

• Management expects continued growth in 2025, leveraging operational assets, especially Bergamo and LATAM affiliates, and starting clinical studies for monoclonal antibodies.