Fleury (FLRY3) Q1 2025 earnings summary

Executive summary

• Gross revenue in Q1 2025 reached R$2.2 billion, up 6.5% year-over-year, with net profit rising 6.7% to R$179.3 million and EBITDA up 5.9% to R$547.6 million, maintaining a 27.2% margin.

• ROIC improved to 16.9%, up 320 basis points from Q1 2023, marking the eighth consecutive quarter of growth.

• Strong B2C and regional brand performance, with Fleury brand up 5.7%, other São Paulo brands up 9.6%, and regional brands up 14.1%.

• Digital initiatives, especially digital scheduling, drove productivity gains and improved customer experience, now accounting for up to 45% of bookings in some brands.

• Operational efficiency, disciplined capital allocation, and investments in technology supported financial resilience and value creation.

Financial highlights

• Net revenue rose 5.8% to R$2.02 billion; gross profit increased 1.2% to R$572.1 million, with a gross margin of 28.4%.

• Operating cash flow reached R$322.3 million, up 46.5% year-over-year; CapEx was R$66.9 million, with increased IT/digital investments.

• Net debt/EBITDA at 1.0x, well below the 3.0x covenant limit; leverage remained low.

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

• Basic earnings per share: R$0.33, up from R$0.31 year-over-year.

Outlook and guidance

• Management is confident in continued growth for 2025, with positive trends in B2C and healthy Lab-to-Lab performance excluding one-off toxicology effects.

• Margin discipline and productivity gains expected from ongoing digital transformation and cost control.

• Digital scheduling adoption is projected to rise further, supporting operational efficiency.

• High payout ratio likely to be maintained, with strong cash generation supporting dividends.

• The company maintained its previously disclosed projections for the year.