Odontoprev (ODPV3) Q4 2024 earnings summary

Executive summary

• Achieved significant milestones in portfolio structure, cost efficiency, and market leadership, with nearly 9 million beneficiaries and a network of 27,000 dentists across 2,500 cities.

• Asset-light, highly cash-generative model with low capex, zero debt, and focus on recurring revenues and high dividend payouts.

• Recurring net income grew 10% annually over five years, with a 27.3% increase in Q4 2024; recognized internationally for sustainable growth by Time Magazine.

• Bradesco Dental brand represents over half of total lives, driving higher average ticket and robust growth.

• Maintains top corporate governance, ESG performance, and strong reputation.

Financial highlights

• Net revenues reached R$2.27 billion in 2024, up from R$2.143 billion in 2023, with a 15% CAGR since IPO.

• Adjusted EBITDA for 2024 was R$694 million (30.6% margin), up 8.2% year-over-year.

• Recurring net income for 2024 was R$534 million, with a 27.3% increase in 4Q24 compared to 4Q23.

• Average ticket per member/month increased to R$22.41 in 4Q24, with cost variation at 3.8%.

• Paid R$300 million in dividends in December, with a 97% payout ratio in 2024.

Outlook and guidance

• SME and Individual plans revenue CAGR of 13% since 2014, now representing 43% of consolidated revenue.

• Expect continued cost discipline, with dental loss ratio (DLR) to remain below 40% in 2025.

• Digital initiatives maturing in 2024 are expected to reduce CAPEX in coming years, freeing up resources for dividends.

• SG&A expected to be more efficient in 2025, with selling expenses normalizing.

• Dividend proposal of R$81 million for 4Q24 to be approved at the AGM.