Bradsaúde (SAUD3) Q3 2024 earnings summary

Executive summary

• Surpassed 8.8 million beneficiaries, with net addition of 55,000 Bradesco Dental SME lives in 3Q24 and 292,000 net new members in the last twelve months.

• Net income per share rose 16% year-over-year in Q3 2024; net income reached R$142 million in 3Q24, up 15% YoY, and R$546 million in the last twelve months, with a 100% payout via dividends and interest on capital.

• Adjusted EBITDA for 3Q24 was R$177 million, up 13% year-over-year, with margin expansion to 30.9%.

• Bradesco Dental brand now accounts for 80% of SME customer base.

• Recognized as a Great Place to Work and Top of Mind Award winner for the 11th consecutive year.

Financial highlights

• Net operating revenue was R$571 million in 3Q24 (+4.6% YoY), and R$2.23 billion in the last twelve months (+5.4% YoY).

• Adjusted EBITDA margin reached 30.9% in 3Q24 and 30.7% LTM, with net margin at 24.8%.

• Net financial income in 3Q24 was R$27.4 million, up 41.7% year-over-year.

• Dental loss ratio improved to 38% in 3Q24, down 5 p.p. YoY, supporting margin expansion.

• Cash flow from operations in 9M24 was R$508.3 million, with net cash of R$1.14 billion and zero debt.

Outlook and guidance

• Strategy focuses on accelerating growth in the non-corporate segment, especially SME and Individual, leveraging bancassurance and digital distribution channels.

• Digital initiatives maturing in 2024 are expected to reduce future CAPEX and drive SG&A efficiency in 2025 and 2026.

• Cost per life expected to gradually increase, but loss ratio to remain controlled and below 40%.