Fleury (FLRY3) Q2 2024 earnings summary

Executive summary

• Completed first year of business combination with Pardini, achieving significant integration progress, synergy capture, and expanded national presence and business diversification.

• Revenue reached R$2.14 billion in 2Q24, up 19.7% year-over-year, with pro forma growth of 8.1%.

• Net income rose 47.5% to R$173.6 million in 2Q24, with a margin of 8.8%, reflecting successful integration with Pardini.

• EBITDA grew 21.7% to R$522.0 million, margin expanded to 26.4%, driven by cost discipline and synergy capture.

• Acquisition of São Lucas Centro de Diagnóstico for R$69.8 million marks entry into Santa Catarina's B2C market.

Financial highlights

• Gross accounting revenue for Q2 2024 was R$2.1 billion, up 19.7% year-over-year; pro forma growth was 8.1%.

• EBITDA reached R$522 million, up 21.7% (accounting), with a margin of 26.4%.

• Net income was R$173.6 million, up 47.5% year-over-year, with a net margin of 8.8%.

• Operating cash flow increased 82.4% to R$588.2 million, with a cash conversion rate of 77.8% of EBITDA.

• Capex for 2Q24 was R$97.6 million, down 8.1% year-over-year, reflecting disciplined capital allocation.

Outlook and guidance

• Focus remains on cost discipline, digital acceleration, and capturing further synergies from integration.

• Management expects continued efficiency and growth in B2B and mobile services, with no specific margin or revenue guidance.

• M&A pipeline remains active, with disciplined approach to asset quality and integration.