Auna Announces 1Q24 Financial Results
Auna (NYSE: AUNA), a major player in Latin America's healthcare sector, announced its unaudited 1Q24 financial results. Revenue increased by 20% YoY to S/1,076 million, and operating profit rose by 26% to S/182 million. Adjusted EBITDA grew 14% YoY to S/241 million with a margin of 22.4%, though it decreased by 1.2 percentage points YoY. Net income improved to S/22 million from a break-even position in 1Q23.
Geographically, revenue growth was observed across all markets. In Peru, the adjusted EBITDA margin reached 20.4%, aligning with targets. Significant investments are being made in Mexico, particularly in Monterrey and the upcoming OncoMexico launch, expected to bolster returns in the latter half of 2024. The company forecasts adjusted EBITDA growth of 20% or more for the full year. The leverage ratio improved to 4.29x.
These financial results reflect Auna's integrated healthcare model's strength and its ability to generate substantial returns, emphasizing the company's commitment to modernizing healthcare in the region.
- Revenue increased 20% YoY to S/1,076 million.
- Operating profit rose by 26% YoY to S/182 million.
- Adjusted EBITDA grew by 14% YoY to S/241 million with a margin of 22.4%.
- Net income improved to S/22 million from breakeven in 1Q23.
- Peru's adjusted EBITDA margin met the target of 20.4%.
- Significant investments in Mexico expected to strengthen returns in late 2024.
- Leverage ratio improved to 4.29x from 4.80x YoY.
- Healthcare services revenue saw 38% growth in Colombia and 14% in Mexico.
- Adjusted EBITDA margin decreased by 1.2 percentage points YoY.
- SG&A expenses rose by 29% YoY to S/244 million.
- Revenue per patient decreased by 12% YoY.
- Plan memberships fell by 3% YoY.
Insights
Auna's financial results for 1Q24 show a
This growth is driven by expansion in all geographic markets, indicating effective strategy execution and potential for continued growth in revenue and profitability. However, the slight decrease in EBITDA margin could signal rising operational costs or inefficiencies that need to be managed.
Investors should take note of the leverage ratio, which has improved to
Overall, Auna's performance shows robust growth, but investors should be cautious of the high leverage and slight margin contraction.
The healthcare sector in Latin America is experiencing significant transformation and Auna's performance highlights its ability to capitalize on this trend. The company's focus on integrating its operations across Mexico, Colombia and Peru positions it well to leverage cross-market synergies and drive long-term growth.
The growth in Peru's EBITDA to
However, it's important to monitor the competitive landscape and regulatory environment, which can significantly impact Auna's growth prospects. The company's guidance for
For retail investors, Auna represents a growth opportunity in the healthcare sector with a strong market positioning, though it's essential to consider the potential risks associated with high leverage and market-specific challenges.
Auna's focus on expanding its high-complexity services, particularly in Monterrey, underscores its commitment to providing advanced healthcare solutions. The planned launch of OncoMexico later this year is a strategic move to leverage the nationwide insurance license and extensive distribution network acquired through Dentegra. This can significantly enhance Auna's market presence in oncology services, a critical area of healthcare.
The increase in adjusted EBITDA in Monterrey by
From a healthcare perspective, Auna's strategy of integrating horizontally and vertically across regions enhances its ability to deliver comprehensive and efficient care. However, the success of this strategy will depend on continued investment in technology and talent, as well as navigating diverse regulatory landscapes.
Investors should recognize the long-term value potential in Auna's integrated approach to healthcare while being mindful of execution risks and market dynamics.
Revenue increases
Adjusted EBITDA margin of
LUXEMBOURG--(BUSINESS WIRE)--
Auna (NYSE: AUNA) (“Auna” or the “Company”), one of the largest and most recognized company in Latin America’s healthcare industry with operations in
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
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
Importantly,
As we continue to build our capabilities in
To expand on our outlook for the remainder of 2024, we expect Adjusted EBITDA to increase
Key Financial and Operating Metrics
(Figures in millions of Soles and millions of US Dollars, unless expressed otherwise)
| *Revenues include intercompany revenues | ||||||||||||||
| 1Q' |
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. |
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 |
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
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 (
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
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
About AUNA
Auna is a Latin American healthcare company with operations in
For more information visit www.aunainvestors.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20240522306193/en/
IR Contact
Email: contact@aunainvestors.com
Source: Auna S.A.
FAQ
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