Fleury (FLRY3) Q1 2025 earnings summary

Executive summary

• Gross revenue reached R$2.2 billion in Q1 2025, up 6.5% year-over-year, driven by strong B2C, regional, and mobile brand performance.

• EBITDA grew 5.9% to R$547.6 million, maintaining a 27.2% margin; net income increased 6.7% to R$179.3 million, with an 8.9% margin.

• ROIC improved to 16.9%, up 320 bps from Q1 2023, marking the eighth consecutive quarter of improvement.

• Digital scheduling now accounts for up to 45% of bookings in some brands, reducing costs and improving customer satisfaction.

• Operational efficiency, digital transformation, and disciplined capital allocation supported resilience in a challenging macroeconomic environment.

Financial highlights

• Net revenue rose 5.8% to R$2.02 billion; gross profit increased 1.2% to R$572.1 million, with gross margin at 28.4% (down 129 bps year-over-year).

• Operating cash flow was R$322.3 million, up 46.5% year-over-year; cash conversion at 58.8% of EBITDA.

• CapEx for the quarter was R$66.9 million, stable year-over-year, with increased IT/digital investments.

• Financial result improved, with net financial expense down 6.3% to R$103.4 million.

• Operating expenses as a percentage of net revenue improved by 64 bps; G&A expenses up 3.6%, commercial expenses up 20.4%.

Outlook and guidance

• Confident in continued growth for 2025, with positive trends in B2C and intermediary segments and ongoing efficiency gains from digital initiatives.

• Ongoing investments in digitalization, technology, and AI, including self-scheduling, are expected to drive further efficiency and customer satisfaction.

• Margin expected to remain healthy, with disciplined cost control.

• High-cost medication in Novos Elos/New Links segment is unpredictable but company is prepared for demand.

• M&A focus remains on diagnostic medicine, with a disciplined approach due to the challenging macro environment.