Rede D'Or São Luiz (RDOR3) Q4 2024 earnings summary

Executive summary

• Achieved record gross revenue of R$31.3 billion in 2024, up 10.1% year-over-year, surpassing R$30 billion for the first time, with net income reaching R$3.9 billion, an 81.6% increase versus 2023.

• EBITDA totaled R$8.5 billion, up 33.3% YoY; adjusted EBITDA including insurer's restricted assets was R$9.5 billion, up 29.0%.

• SulAmérica's net revenue exceeded R$30 billion, up 11.3% YoY, with a consolidated loss ratio improvement of 4.4 pp and significant beneficiary base growth.

• Five new hospitals were inaugurated, including Atlântica D'Or units in partnership with Bradesco Seguros, expanding the network to 75 hospitals and 9,857 beds.

• The disposal of D'Or Consultoria generated a gain of R$354 million, recognized in other operating income.

Financial highlights

• Net revenue for the year was R$51.3 billion, a 9.3% increase YoY, with consolidated gross profit rising to R$9.46 billion.

• Operational cash flow reached R$9.8 billion, up 71.2% YoY, and cash and cash equivalents at year-end were R$6.57 billion, with marketable securities totaling R$33.9 billion.

• Debt remained stable at 1.9x Net Debt/EBITDA, a reduction of 0.4x from 2023, or 1.3x including insurance reserves.

• R$1.45 billion distributed in interest on equity and R$947 million invested in share buybacks.

• SulAmérica's adjusted EBITDA was R$2.3 billion, up 131.5% YoY.

Outlook and guidance

• Expansion program includes 40 projects with 4,036 beds to be delivered between 2025 and 2028, with a focus on operational excellence and integration of recent acquisitions.

• Anticipate margin improvement in hospitals, especially in the second half of 2025, as new units mature and operational leverage increases.

• SulAmérica aims for continuous improvement in consolidated loss ratio and further beneficiary base growth through product innovation and fraud reduction.

• ESG targets include reducing GHG emissions by 36% by 2030 and achieving a 30% recyclable waste rate by 2030.