Bradsaúde (SAUD3) Q4 2024 earnings summary

Executive summary

• Net revenue reached R$2.27 billion in 2024, up 5.9% year-over-year, with nearly 9 million beneficiaries and a net addition of 306,000 members.

• Adjusted EBITDA was R$694 million (30.6% margin), recurring net income R$529 million, and net income R$534 million, with a 27.3% increase in 4Q24 over 4Q23.

• The company operates an asset-light, highly cash-generative model with zero debt, strong cash position, and high dividend payouts.

• Recognized internationally for sustainable growth, top ESG ratings, and corporate governance, including a top 6 global ranking by TIME Magazine.

• Bradesco Dental brand led net additions, especially in SME and Corporate segments, with robust growth in non-corporate plans.

Financial highlights

• Consolidated revenue reached R$2.28 billion, with gross income of R$783 million and net income of R$539 million.

• Adjusted EBITDA margin expanded to 30.6%, and ROE reached 43.9% in 2024.

• Average ticket per member/month increased to R$22.41 in 4Q24, with cost per member at R$8.86.

• Net cash position at year-end was R$913 million, with zero debt.

• Shareholder payout ratio was 97%, with R$542.6 million paid in dividends, IOC, and share buybacks.

Outlook and guidance

• SME and Individual plans segment continues to grow at a 13% CAGR since 2014, now representing 43% of consolidated revenue.

• Management expects continued expansion in the underpenetrated Brazilian dental benefits market, with digital initiatives reducing future CAPEX.

• Dividend proposal of R$81 million for 4Q24 to be approved at the AGM, maintaining a high payout ratio.

• SG&A expected to be more efficient in 2025, with selling expenses normalizing.