Hospital Mater Dei (MATD3) Q4 2024 earnings summary

Executive summary

• 2024 was marked by macroeconomic and sector-specific headwinds, prompting strategic adjustments, operational agreements, and new service launches such as robotic surgery at Santa Clara and the Nova Lima unit, to strengthen financial robustness and drive future growth.

• Net revenue grew 1.8% year-over-year to R$2,226 million, with higher occupancy rates and average ticket per bed, despite a reduction in operational beds.

• Adjusted EBITDA for 2024 was R$459 million (20.6% margin), down 12.7% year-over-year; adjusted net income was R$196 million (8.8% margin), down 7.9% year-over-year.

• Sale of Hospital Porto Dias (Centro Saúde Norte S.A.) finalized in September 2024, resulting in a non-recurring loss of R$754 million but strengthening cash position and reducing risk exposure.

• Recertified as a Great Place to Work and recognized for mental health initiatives.

Financial highlights

• Net revenue for 2024 was R$2,226 million, up 1.8% year-over-year; gross revenue reached R$2,517 million, up 1.4% year-over-year.

• Adjusted EBITDA margin was 20.6% in 2024 (R$459 million), down from 23.7% in 2023; 4Q24 margin was 15.9%.

• Net income for 2024 was R$196 million (8.8% margin), down from R$213 million (9.7%) in 2023.

• Cash and equivalents at year-end were R$675 million, up 112% from the previous year.

• Net debt at year-end was R$772 million, with net debt/EBITDA at 1.5x.

Outlook and guidance

• 2025 is expected to benefit from operational improvements, cost reductions, and ramp-up of new units, with a focus on restoring margins and cash generation.

• CapEx for 2025 is projected to be significantly lower than 2024, as major investments have already been made.

• Robotic surgery to be available from March 2025, expected to enhance service offerings in the Triângulo Mineiro region.

• Management expects further improvement in leverage and cash generation.