Hospital Mater Dei (MATD3) Q1 2025 earnings summary

Executive summary

• Achieved record net revenue of BRL 499.3 million in 1Q25, up 2.4% year-over-year and 2.5% sequentially, with the highest average ticket per bed in company history and strong performance across units.

• Net profit reached BRL 20.2 million, up 148% from 4Q24 but down 37% year-over-year, with a net margin of 4.0%.

• Extraordinary dividend of BRL 25.3 million (BRL 0.0745 per share) approved, reflecting financial health and confidence in future prospects, to be paid by May 31, 2025.

• Fitch reaffirmed AA+ (bra) rating, highlighting resilience in operational cash flow and a conservative financial profile.

• New AI solutions (A3Data, CotAI) contributed to revenue and operational improvements.

Financial highlights

• Net revenue reached BRL 499 million for the quarter, a 2.4% year-over-year increase.

• Adjusted EBITDA was BRL 97 million, up 24.6% sequentially, with margin at 19.3%, up 3.4pp from 4Q24.

• Net profit increased 148% sequentially to BRL 20.2 million, with margin recovery underway.

• Gross profit was BRL 144 million, with a gross margin of 28.8%.

• Net debt/EBITDA ratio at 1.6x, with BRL 670 million in cash and a comfortable debt maturity profile averaging 4.1 years.

Outlook and guidance

• Expectation of continued margin improvement quarter over quarter, aiming to reach historical margin levels by year-end.

• Projected net leverage to remain below 2.5x, maintaining a conservative financial profile.

• Ongoing focus on cost control, operational efficiency, digital transformation, and working capital management.