Hospital Mater Dei (MATD3) Q3 2024 earnings summary

Executive summary

• Completed the divestment of 70% of Centro Saúde Norte S.A. (CSN), receiving BRL 401.3 million in cash and canceling 24.7 million shares, strengthening financial discipline, cash position, and reducing risk exposure.

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

• Released the second Clinical Excellence Yearbook and fifth Sustainability Report, reinforcing commitment to clinical quality, ESG standards, and above-average clinical outcomes.

• Portfolio adjustment and cash boost from CSN divestment position the company for improved capital structure and future growth.

• Emphasis on demonstrating best practices and improvements in operational processes.

Financial highlights

• Net revenue for 9M24 reached BRL 1,739 million, up 6% year-over-year; Q3 net revenue was BRL 571 million, stable year-over-year and down 3% sequentially.

• Adjusted EBITDA for 9M24 was BRL 381.2 million (margin 21.9%); Q3 adjusted EBITDA was BRL 121 million (margin 21.3%), down 10% year-over-year.

• Adjusted net income for Q3 2024 was BRL 56 million, up 6% year-over-year and 9% sequentially; 9M24 adjusted net income was BRL 172 million, up 3% year-over-year.

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

• Net debt at BRL 710 million, down 36% sequentially, with leverage at 1.3x EBITDA LTM.

Outlook and guidance

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

• Portfolio adjustment and cash strengthening position the company to navigate sector challenges and support future growth.

• Operational focus remains on efficiency, clinical excellence, and disciplined capital allocation.

• Anticipation of further positive developments from recent hospital openings.