Ânima (ANIM3) Q3 2024 earnings summary

Executive summary

• Achieved solid financial results in 3Q24, with adjusted EBITDA of R$264.8M (up 12.2% YoY) and net revenue of R$938.3M, stable YoY; 9M24 net revenue reached R$2.91B, up 2.8% YoY.

• Adjusted net income for 3Q24 was R$49.0M, with 9M24 at R$178.2M, the highest in company history.

• Leverage reduced to 2.71x in 3Q24 from 3.41x in 3Q23, reflecting disciplined capital management.

• Focused on sustainable growth, operational efficiency, and a new organizational structure with three avenues for expansion.

• Improved dropout rates and higher average ticket values across segments, with a strategic focus on quality over quantity.

Financial highlights

• Adjusted EBITDA ex-IFRS16 grew 12.2% in 3Q24 to R$264.8M; 9M24 EBITDA up 19.1% YoY.

• Adjusted net profit was R$49.0M in 3Q24 and R$178.2M in 9M24.

• Cash generation in 3Q24 was R$328.5M; 9M24 cash generation post-capex and working capital was R$778.9M (+12.0% YoY).

• Gross profit (adjusted) grew 5.7% YoY to R$1,988.1M in 9M24; gross margin rose 1.9pp to 68.4%.

• ROIC improved to 10.1% in LTM 3Q24 (+2.1pp YoY).

Outlook and guidance

• Management expects continued margin expansion, robust cash generation, and sustainable growth through disciplined execution.

• Strategic priorities include strengthening academic education, expanding digital and continuing education, and developing new business opportunities.

• Prepared for seasonality in Q4, with expected temporary increase in net debt.