Inversiones La Construcción (ILC) Q1 2024 earnings summary

Executive summary

• Q1 2024 profit reached Ch$59,252 million, up 69.9% YoY, driven by stronger financial-subsidiary results and partly offset by Consalud’s GES-related revenue decline.

• Higher non-operating income and financial-subsidiary results more than offset lower net operating income and higher tax expense.

• LTM ROAE reached 21.4% in March 2024.

Financial highlights

• Market capitalization reached Ch$758,871 million, up 105.7% YoY; assets totaled Ch$15,880,389 million at March 2024, up 2.2% from December.

• RedSalud revenue rose 8.4% YoY to Ch$172,189 million; EBITDA increased 44.2% to Ch$20,567 million.

• Consalud revenue fell 23.1% YoY to Ch$152.1bn; it posted a Ch$5,196 million loss versus Ch$7,063 million profit.

• Vida Cámara earned Ch$2,315 million as beneficiaries grew 30.7%; Vivir Seguros earned Ch$7,253 million versus a Ch$347 million loss.

Outlook and guidance

• The pension reform bill remained under Senate review after key provisions, including the proposed 6% employer contribution increase, were rejected.

• Health-sector steps include an advisory council, regulatory approval of payment plans and an extraordinary premium, and plan-price adjustments under the Unique Factor Table and 7% minimum contribution.

• Strategic priorities for 2023–2027 include growth in the financial business.