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 Pardini Group.

• Integration with Pardini and Hermes Pardini expanded technical capabilities, national reach, and enhanced B2B and B2C offerings.

• Focused on prevention, comprehensive care, and expansion of mobile and outpatient services, with new specialized centers and continued digital transformation.

• Three growth avenues: B2C (up to 60% of revenue), B2B (up to 23.5%), and Novos Elos/New Links (up to 9.3%), with B2B and mobile services showing strong growth.

• Completed acquisition of São Lucas Group in Santa Catarina and launched the Gênesis genomics joint venture in 2024.

Financial highlights

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

• Operational cash flow in 3Q24 was R$558.7 million (+16.2% YoY); capex R$112.7 million (+29.1% YoY).

• For the nine months, gross revenue was R$6.3 billion (+7% YoY); consolidated net revenue for the period was R$5,845.3 million (+22.6% YoY).

• Net debt was R$1.87 billion, with net debt/EBITDA at 1.0x, and average debt maturity extended to 4.2 years.

• Gross margin for the nine months was 28.9%, EBITDA margin 27.4%, and net margin 9.7%, all improving year-over-year.

Outlook and guidance

• Management expects continued disciplined execution, cost efficiency, and value generation, leveraging digital transformation and integration synergies.

• Focus on expanding B2B Lab-to-Lab segment, digital health platforms, and new regional markets.

• No formal Q4 guidance, but management remains confident in sustainable growth and value creation.