Revenue increases 20% YoY to S/1,076 million, with operating profit increasing 26% to S/182 million
Adjusted EBITDA margin of 20.4% in Peruvian operations
Auna (NYSE:AUNA) ("Auna" or the "Company"), one of the largest and most recognized company in Latin America's healthcare industry with operations in Mexico, Colombia and Peru, today announced unaudited financial results for the three months ended March 31, 2024 ("first quarter 2024" or "1Q24").
Financial results are expressed in Peruvian Soles ("S/" or PEN") and are presented in accordance with International Financial Reporting Standards ("IFRS"), unless otherwise noted. Figures in US dollars (US$ or USD) for 1Q24 are presented for indicative purposes and were calculated using an FX rate of US$1= S/3.718. All comparisons in this announcement are year-over-year ("YoY"), unless otherwise noted; additionally, results are presented in an FX neutral basis ("FXN") for consolidated revenues, consolidated cost of sales and services, consolidated selling and administrative expenses and consolidated adjusted EBITDA, as well as, in local currency for the Mexico and Colombia segments, to eliminate the effect of foreign exchange, or "FX," volatility between the comparison periods.
Financial results are preliminary and subject to year-end audit and adjustments.
1Q24 Consolidated Financial Highlights
- Consolidated Revenue increased 20% YoY to S/1,076 million driven by growth across all geographic markets
- Gross Profit of S/414 million, up 26% YoY
- Operating Profit of S/182 million, up 26% YoY
- Adjusted EBITDA increased 14% YoY to S/241 million
- Adjusted EBITDA Margin of 22.4%, down 1.2 p.p. YoY, but up 1.5. p.p. QoQ
- Adjusted Net Income increased to S/22 million, up from breakeven in 1Q23
- Leverage ratio improved 0.17x QoQ and 0.52x YoY to 4.29x
Message from Auna's Executive Chairman and President
"Guided by strong leadership in our clinical, technology and business teams across Auna, our regional, horizontally and vertically integrated healthcare platform delivered strong results in the first quarter. Our 20% consolidated revenue growth was the main driver of the 26% YoY increase in our operating profit and 14% increase in Adjusted EBITDA.
Importantly, Peru reached our target Adjusted EBITDA of 20%. As our continued success in Peru makes clear, we are capable of generating substantial returns as our capacity utilization rises. This strengthens our conviction in Mexico, where we are committed to deploying the same integrated business model. Accordingly, we continue to invest in bringing our operations in Monterrey up to AunaWay standards and in hiring top talent, both essential to expanding our high-complexity services and ramping up capacity utilization in Monterrey's fast-growing market. Our recent performance at our OCA network in Monterrey is encouraging, with Adjusted EBITDA increasing 34% versus Q423 in local currency. We are also investing in the planned launch of OncoMexico later this year, with the intention of fully leveraging the nationwide insurance license and extensive distribution network that we gained through the acquisition of Dentegra last year.
As we continue to build our capabilities in Mexico, we expect returns to strengthen in the latter half of the year, giving us the ability to improve our financial position by reducing absolute debt levels and our leverage ratio.
To expand on our outlook for the remainder of 2024, we expect Adjusted EBITDA to increase 20% or more versus 2023. We remain confident in our ability to disrupt, modernize and integrate healthcare in Spanish Speaking Latin America, delivering strong value creation for Auna's stakeholders. Of course, that would not be possible without the many doctors, nurses, technicians, managers and other colleagues dedicated to our mission of transforming healthcare in the region."
Key Financial and Operating Metrics
(Figures in millions of Soles and millions of US Dollars, unless expressed otherwise)
| *Revenues include intercompany revenues | ||||||||||||||
| 1Q'24 (USD) | Δ 1Q'24 vs | |||||||||||||
| Key Financial Metrics | 1Q'24 | 4Q'23 | 1Q'23 | 4Q'23 | 1Q'23 | |||||||||
| Healthcare Services Mexico | 83 |
|
308 |
|
284 |
|
271 |
|
9 |
% |
14 |
% |
||
| Healthcare Services Colombia | 94 |
|
349 |
|
335 |
|
252 |
|
4 |
% |
38 |
% |
||
| Healthcare Services Peru & Oncosalud | 113 |
|
419 |
|
402 |
|
371 |
|
4 |
% |
13 |
% |
||
| Healthcare Services Peru | 65 |
|
241 |
|
225 |
|
212 |
|
7 |
% |
14 |
% |
||
| Oncosalud | 68 |
|
253 |
|
244 |
|
221 |
|
4 |
% |
15 |
% |
||
| Holding and Eliminations | (20 |
) |
(76 |
) |
(67 |
) |
(62 |
) |
13 |
% |
22 |
% |
||
| Total Revenue | 289 |
|
1,076 |
|
1,021 |
|
894 |
|
5 |
% |
20 |
% |
||
| Cost of sales and services | (178 |
) |
(662 |
) |
(645 |
) |
(566 |
) |
3 |
% |
17 |
% |
||
| Gross Profit | 111 |
|
414 |
|
376 |
|
328 |
|
10 |
% |
26 |
% |
||
| Gross Margin | 38.5 |
% |
36.8 |
% |
36.7 |
% |
1.6 p.p. |
1.8 p.p. |
||||||
| SG&A | (66 |
) |
(244 |
) |
(235 |
) |
(190 |
) |
4 |
% |
29 |
% |
||
| Operating Profit | 49 |
|
182 |
|
130 |
|
145 |
|
40 |
% |
26 |
% |
||
| Operating Margin | 16.9 |
% |
12.7 |
% |
16.2 |
% |
4.2 p.p. |
0.7 p.p. |
||||||
| Net Finance costs | (45 |
) |
(168 |
) |
(302 |
) |
(122 |
) |
-44 |
% |
38 |
% |
||
| Net Income (Loss) | (2 |
) |
(8 |
) |
(219 |
) |
0 |
|
||||||
| Healthcare Services Mexico | 28 |
|
104 |
|
82 |
|
113 |
|
26 |
% |
-8 |
% |
||
| Healthcare Services Colombia | 13 |
|
50 |
|
58 |
|
36 |
|
-14 |
% |
40 |
% |
||
| HC Serv. Peru & Oncosalud | 24 |
|
85 |
|
72 |
|
61 |
|
19 |
% |
40 |
% |
||
| Healthcare Services Peru | 10 |
|
37 |
|
17 |
|
22 |
|
113 |
% |
70 |
% |
||
| Oncosalud | 13 |
|
48 |
|
55 |
|
39 |
|
-12 |
% |
24 |
% |
||
| Holding & Eliminations | 1 |
|
2 |
|
1 |
|
2 |
|
||||||
| Adjusted EBITDA | 65 |
|
241 |
|
213 |
|
211 |
|
13 |
% |
14 |
% |
||
| Adjusted EBITDA Margin | 22.4 |
% |
20.9 |
% |
23.6 |
% |
1.5 p.p. |
-1.2 p.p. |
||||||
| Leverage Ratio | 4.29x | 4.46x | 4.80x | -0.17x | -0.52x | |||||||||
| Adjusted Net Income (Loss) | 6 |
|
22 |
|
(6 |
) |
1 |
|
||||||
| Basic and Diluted Earnings per Share | (0.28 |
) |
(4.81 |
) |
(0.09 |
) |
||||||||
| Adjusted Basic and Diluted Earnings per Share | 0.36 |
|
(0.08 |
) |
(0.08 |
) |
||||||||
| Key Operating Metrics | ||||||||||||||
| Healthcare Services | ||||||||||||||
| Total bed capacity | 2,199 |
|
2,199 |
|
2,192 |
|
0 |
% |
0 |
% |
||||
| Occupancy (total capacity) | 65 |
% |
64 |
% |
63 |
% |
1.3 p.p. |
2.5 p.p. |
||||||
| Average revenue per patient | 787 |
|
2,928 |
|
3,317 |
|
2,374 |
|
-12 |
% |
23 |
% |
||
| Healthcare Plans | ||||||||||||||
| Plan memberships | 1,237 |
|
1,271 |
|
1,171 |
|
-3 |
% |
6 |
% |
||||
| Average monthly revenue per plan member | 16.0 |
|
59.3 |
|
58.3 |
|
57.6 |
|
2 |
% |
3 |
% |
||
| MLR | 55.1 |
% |
53.8 |
% |
53.3 |
% |
1.3 p.p. |
1.8 p.p. |
||||||
| Oncological Plans | 51.5 |
% |
50.6 |
% |
52.1 |
% |
0.9 p.p. |
-0.6 p.p. |
||||||
2024 Financial Guidance
Guidance: For full-year 2024, the Company expects consolidated Adjusted EBITDA to increase at least 20% YoY on an FX-neutral basis.
Assumptions: Auna′s guidance is based on management's current performance outlook and expected macroeconomic and regulatory conditions in the three countries where the Company operates. Any changes in these conditions could have an impact on the guidance provided.
Disclaimer: The 2024 financial guidance reflects management's current assumptions regarding numerous evolving factors that are difficult to accurately predict, including those discussed in the Risk Factors set forth in the Company's Form F-1 filed with the United States Securities and Exchange Commission (the "SEC"). Reconciliations of forward-looking non-IFRS measures, specifically the 2024 EBITDA guidance, to the relevant forward-looking IFRS measures are not being provided, as the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such guidance and reconciliations. Due to this uncertainty, the Company cannot reconcile projected EBITDA to projected net income without unreasonable effort. The 2024 financial guidance constitutes forward-looking statements. For more information, see the "Forward-Looking Statements" section in this release.
For a full version of AUNA's First Quarter 2024 Earnings Release, please visit: https://aunainvestors.com/1q24-earnings-report
Conference Call Details
When: 5:00 p.m. Eastern time, May 22nd, 2024
Who: Mr. Suso Zamora, Executive Chairman of the Board and President
Mrs. Gisele Remy, Chief Financial Officer and Executive Vice President
Miss Ana Maria Mora, Head of Investor Relations
Dial-in: +1 888 596 4144 (U.S. domestic), +1 646 968 2525 (International)
Passcode: 3884034
To access Auna′s financial results call via telephone, callers need to press # to be connected to an operator.
Webcast: click here
Safe Harbor Statement
This press release contains forward-looking statements. Forward-looking statements convey our current expectations or forecasts of future events. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to differ materially from the forward-looking statements that we make. Forward-looking statements typically are identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "project," "plan," "believe," "potential," "continue," "is/are likely to,"or other similar expressions. Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters, including, our expected 2024 Adjusted EBITDA growth, the expected impact on revenues and profitability of certain initiatives we are pursuing in Mexico and our target leverage level. Any or all of our forward-looking statements in this press release may turn out to be inaccurate. Our actual results could differ materially from those contained in forward-looking statements due to a number of factors.
The forward-looking statements in this press release represent our expectations and forecasts as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see our Form F-1 filing with the U.S. Securities and Exchange Commission.
About AUNA
Auna is a Latin American healthcare company with operations in Mexico, Peru and Colombia, prioritizing prevention and concentrating on high complexity diseases that contribute the most to healthcare expenditures. Our mission is to transform healthcare by providing access to a highly integrated healthcare offering in the underpenetrated markets of Spanish Speaking Americas. Founded in 1989, Auna has built one of Latin America′s largest modern healthcare platforms that consists of a horizontally integrated network of healthcare facilities and a vertically integrated portfolio of oncological plans and selected general healthcare plans. As of March 31st, 2024, Auna's network included 31 healthcare network facilities, consisting of hospitals, outpatient, prevention and wellness facilities with a total of 2,308 beds, and 1.3 million healthcare plans.
For more information visit www.aunainvestors.com
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