Odontoprev (ODPV3) Q3 2024 earnings summary

Executive summary

• Surpassed 8.8 million beneficiaries, with a net addition of 55,000 SME lives in Q3 2024, and SME/Individual plans now representing 43% of consolidated revenue.

• Net income per share rose 16% year-over-year in Q3 2024; net income reached R$142 million in Q3 2024 and R$546 million in the last twelve months, with a 100% payout via dividends and interest on capital.

• Maintained net cash of R$1.1 billion and zero debt, with ROE at 39%.

• Bradesco Dental brand accounts for 80% of SME customer base.

• Recognized as a Great Place to Work and Top of Mind Award winner for the 11th consecutive year.

Financial highlights

• Net operating revenue was R$571 million in Q3 2024 (+4.6% YoY), and R$2.23 billion in the last twelve months (+5.4% YoY), with a CAGR of 15% since IPO.

• Adjusted EBITDA reached R$177 million in Q3 2024 (+13% YoY), with margin expanding to 30.9%; LTM adjusted EBITDA was R$683 million (margin 30.7%).

• Net margin was 24.8% in Q3 2024, and cost of services as a percentage of NOR improved to 38.4%.

• Net financial income was R$27 million in Q3 2024 (+41.7% YoY).

• Dental loss ratio improved to 38% in Q3 2024, down 5 p.p. YoY.

Outlook and guidance

• Strategy focuses on accelerating growth in the non-corporate segment, especially SME and Individual, leveraging bancassurance and digital channels.

• Digital initiatives maturing in 2024 are expected to reduce future CAPEX and drive SG&A efficiency in 2025 and 2026.

• Cost per life expected to gradually increase, but loss ratio to remain controlled and below 40%.