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 for 3Q24 was R$142 million, up 15% year-over-year, with EPS of R$0.2591 (+16.1% YoY) and a 100% payout via dividends and interest on capital.

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

• Maintained net cash of R$1.1 billion and zero debt, with ROE at 39%.

• Recognized as a Great Place to Work and Top of Mind in dental plans 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, with LTM adjusted EBITDA at R$683 million (margin 30.7%).

• 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.

• Allowance for doubtful receivables remained stable at 2.3% of net revenue in 3Q24.

Outlook and guidance

• SME and Individual plans continue to drive growth, with higher average ticket and margins, supported by exclusive bancassurance channels and digital transformation.

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

• Expectation to maintain high profitability and a consolidated loss ratio below 40% in coming years.