Q3 2024 Auna SA Earnings Call Transcript
Key Points
- Auna SA (AUNA) reported a 23% increase in adjusted EBITDA on an FX-neutral basis, with a margin expansion of 1.4 percentage points.
- Revenue growth was strong in Mexico and Peru, with increases of 16% and 13% respectively, driven by high complexity services and improved physician productivity.
- The company successfully reduced its debt leverage below four times for the first time since its acquisition in Mexico, marking the eighth consecutive quarter of leverage reduction.
- In Peru, adjusted EBITDA increased nearly 50%, with a margin expansion of 5.3 percentage points to 21.6%, driven by increased planned memberships and higher average ticket.
- Auna SA (AUNA) is making significant progress with its OncoMexico initiative, which is expected to be a disruptive product in the Mexican market, leveraging its 35 years of experience in Peru.
- In Colombia, regulatory interventions have led to increased provisions for impairment losses, impacting profitability and resulting in an 18% decrease in adjusted EBITDA.
- The company is facing challenges with timely payments from Nueva EPS in Colombia, leading to increased risk and provisions for receivables.
- Despite strong performance in other regions, revenue growth in Colombia was moderated to 11% due to a cautious approach to maintain healthy cash flow.
- Auna SA (AUNA) is experiencing volatility in payments from Colombian payors, which has necessitated a conservative stance on receivables.
- The company is focusing on maintaining a positive working capital cycle in Colombia, which may limit growth opportunities in the short term.
Good morning, and welcome to Auna's Third Quarter 2024 Earnings Conference Call. My name is Rob, and I will be the operator for today's call. (Operator Instructions) And please note that this call is being recorded. (Operator Instructions).
Now I'd like to turn the call over to Ana Maria Mora, Head of Investor Relations. Ma'am, please go ahead.
Thank you, operator. Hello, everyone, and welcome to Auna's conference call to review our third quarter results. Please note that there is a webcast presentation to accompany the discussion during this call. If you need a copy of the presentation, please go to our Investor Relations website, or contact Auna's Investor Relations team. Please note that when we discuss variances, we will be doing so on a year-over-year basis and in FX-neutral or local currency terms with regards to Mexico and Colombia unless we note otherwise.
Let's move to slide 2. Before we begin, we would like to remind all participants that our comments today will include forward-looking statements.
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