Fleury (FLRY3) Q3 2024 earnings summary

Executive summary

• Gross revenue reached R$2.13 billion in 3Q24, up 6.1% year-over-year, with EBITDA of R$537.4 million (6.2% growth) and net income of R$190.7 million (9.5% growth), reflecting strong execution and integration of Grupo Pardini and Hermes Pardini, and expansion in B2B and mobile services.

• Consolidated net revenue for the nine months ended September 30, 2024, was R$5.85 billion, up 22.7% year-over-year, driven by organic growth, acquisitions (São Lucas, Gênesis JV), and new business lines.

• Net income attributable to shareholders was R$532.3 million for the nine months, a 55.4% increase year-over-year, reflecting improved operational performance and scale.

• The company maintained a robust capital structure, with a leverage ratio of 1.0x net debt/EBITDA and extended debt maturity to 3.4 years.

• Multiple industry awards and recognition reinforce leadership in the Brazilian healthcare sector.

Financial highlights

• Gross revenue: R$2.13 billion (+6.1% YoY) in 3Q24; net revenue: R$1.96 billion (+5.0% YoY); EBITDA: R$537.4 million (+6.2% YoY), margin 27.4% (+32 bps); net income: R$190.7 million (+9.5% YoY), margin 9.7% (+40 bps).

• Gross profit for 3Q24 was R$557.0 million (+5.6% YoY), gross margin 28.4% (+17 bps); operating income before financial results and taxes was R$996.8 million for the nine months (+36.4% YoY).

• Operational cash flow in 3Q24 was R$558.7 million (+16.2% YoY); capex: R$112.7 million (+29.1% YoY), focused on IT/digital and technical areas.

• Net debt stood at R$1.87 billion, net debt/EBITDA at 1.0x, with average debt maturity of 3.4 years and recent debenture issuance extending average term to 4.2 years at CDI +0.95%.

• Earnings per share (basic and diluted) for the nine months were R$0.98, compared to R$0.71 in the prior year.

Outlook and guidance

• Management expects continued disciplined execution, innovation, and digital evolution, with a focus on expanding B2B Lab-to-Lab, digital health platforms, and new regions.

• Integration with Pardini Group progressing, with further synergies expected in technical platforms and supplier contracts.

• No formal guidance provided, but management expects ongoing resiliency and growth opportunities, especially in intermediate segments and mobile services.