Hospital Mater Dei (MATD3) Q3 2024 earnings summary

Executive summary

• Opened Nova Lima hospital unit in August 2024, expanding to four units in Belo Horizonte metro area with 117 beds and comprehensive services, positively impacting operations and performance.

• Completed Porto Dias divestment and divestment of 70% of Centro Saúde Norte S.A., receiving BRL 401.3 million and canceling 24.7 million shares, strengthening financial discipline and cash position.

• Released Clinical Excellence Yearbook and Sustainability Report, reinforcing commitment to clinical quality and ESG standards.

Financial highlights

• Net revenue for 9M24 reached BRL 1,739 million, up 6% year-over-year; Q3 net revenue was BRL 585 million, with adjusted EBITDA for 9M24 at BRL 381.2 million (margin 21.9%).

• Adjusted net income for 3Q24 reached BRL 56 million, up 6% YoY; adjusted net margin at 9.8%.

• Cash and equivalents at September 2024 stood at BRL 756 million, up 137% from year-end 2023.

• Net debt at BRL 710 million, leverage at 1.3x EBITDA LTM, down from 2.2x in Q3 2023.

Outlook and guidance

• Portfolio adjustments and divestments position the company for improved capital structure and reduced risk exposure.

• Expectations for future improvements in cost regulation and operational efficiency, especially regarding the Nursing Bill.

• Continued focus on operational efficiency, clinical excellence, and ESG initiatives.