In the heart of Luxembourg on November 19, 2024, Auna (NYSE: AUNA) made a significant announcement. As a leading healthcare platform in Latin America with operations in Mexico, Peru, and Colombia, Auna presented its unaudited financial results for the third quarter ended September 30, 2024. These results are expressed in Peruvian Soles ("S/" or PEN) and are in accordance with International Financial Reporting Standards ("IFRS"), unless otherwise noted.Strong Quarter with Record Sales and Reduced Leverage
The company delivered a remarkable quarter. By increasing capacity utilization across the regional network, Auna achieved record sales. Additionally, Adjusted EBITDA reached historical highs in Mexico and Peru, enabling Auna to reduce its leverage ratio to 3.7x Net Debt-to-Adjusted EBITDA. This achievement showcases the company's ability to drive growth and manage its financial position effectively.In Mexico, the implementation of the AunaWay has been a game-changer. It has fostered a culture of patient-centered care, led to high medical resolution through productive engagement with the physician and nursing communities, and achieved standardization at scale. These efforts have resulted in improved financial results, with revenues increasing 16% in local currency. The unique approach of Auna has enhanced utilization rates and revenues by increasing physician productivity and offering a greater mix of high-complexity services. The positive trend is expected to continue and accelerate during 2025.The early results of the OncoMexico pilot program in Peru are highly encouraging. Leveraging over 35 years of experience in providing integrated oncological services, Auna is testing commercial, clinical, and risk-underwriting processes. The pilot will continue through 2024 and into early 2025, with the aim of integrating the insurance business into the healthcare platform in Monterrey. The launch will initially target the B2B segment, with plans to expand to the B2C segment later.In Peru, where the integrated model is most developed, Auna continues to deliver high performance levels. Sustained plan membership demand and ticket growth, along with scale productivity gains and a shift towards higher-complexity procedures, have driven the company's success.In Colombia, an important contributor to the company's scale and excellence in clinical practices, Auna will continue to regionalize these advantages. While optimistic about the medium and long-term prospects, the company is taking a cautious stance in the short term due to regulator intervention in some payors. The company is managing its cash conversion cycle rigorously and is monitoring account receivables growth and related provisions.Improved Financial Metrics and Organizational Adjustments
With the strong performance in the quarter, Auna reduced its leverage, marking the eighth consecutive quarter of a lower Net Debt-to-Adjusted EBITDA ratio. This improvement to 3.7x at the end of the quarter keeps the company on track to achieve its medium-term target of less than 3.0x.In addition to financial achievements, Auna has been strengthening its capabilities. Recently, the company made a series of adjustments to its organization and team structure to better serve its customers and stakeholders.Overview of 3Q24 Consolidated Results
Revenues increased by 11% YoY to S/1,127 million, or 13% FXN. This growth was driven by Auna's improving sales mix, with revenues increasing 16% in local currency in Mexico, 13% in Peru, and 11% in Colombia. In Mexico, the results reflect improvements in productivity and service mix through the implementation of the AunaWay. In Peru, the operation continued to outperform, demonstrating the strength of the vertically integrated business model. Colombia maintained its pace with sustained demand for oncology services, focusing on high-complexity care.Adjusted EBITDA increased by 18% YoY, or 23% FXN, to S/250 million. The corresponding margin expanded by 1.4 p.p. to 22.1% due to solid revenue growth and increasing efficiencies across local and regional levels. Operating profit increased by 53% YoY and included a one-time S/44 million reversal of the holdback from the acquisition of OCA in Mexico. Excluding this reversal, the operating profit would have increased by 24% YoY. Consolidated Adjusted EBITDA was impacted by provisions for impairment losses of S/16 million on account receivables in Colombia. Excluding these reserves, consolidated Adjusted EBITDA would have been S/265 million, representing a 30% FXN growth and a 23.6% margin.Net finance costs decreased from S/172 million in 3Q23 to S/103 million in 3Q24. Excluding FX effects, net interest expenses would have been S/132 million, a decrease of S/23 million or 15% compared to 3Q23. These FX effects include a non-cash accounting FX benefit of S/28 million, mainly due to the appreciation of the Peruvian Sol to the Mexican Peso.Net Income improved from a Net Loss of S/18 million in 3Q23 to S/101 million in 3Q24. On a per-share basis, Auna reported Net Income of S/1.32 based on a weighted average number of basic and diluted shares of 74,175,144. Adjusted Net Income also showed significant improvement, reaching S/75 million in 3Q24 compared to S/13 million in 2Q24 and a loss of S/17 million in 3Q23. On a per-share basis, Adjusted Net Income was S/0.98.For a full version of AUNA's Third Quarter 2024 Earnings Release, please visit: https://aunainvestors.com/English/financial-information/quarterly-results/Conference Call Details and Company Overview
The conference call details are as follows:When: 8:00 a.m. Eastern time, November 20th, 2024Who: Mr. Suso Zamora, Executive Chairman of the Board and President; Mrs. Gisele Remy, Chief Financial Officer and Executive Vice President; Mr. Lorenzo Massart, Executive Vice President of Strategy and Equity Capital Markets.Dial-in: +1 888 596 4144 (U.S. domestic), +1 646 968 2525 (International)Passcode: 3884034To access Auna's financial results call via telephone, callers need to press # to be connected to an operator.Webcast: click hereAuna is a leading healthcare platform in Latin America with operations in Mexico, Peru, and Colombia. It prioritizes prevention and focuses on high-complexity diseases that have a significant impact on healthcare expenditures. The company's 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, consisting of a horizontally integrated network of healthcare facilities and a vertically integrated portfolio of oncological plans and selected general healthcare plans. As of September 30, 2024, Auna's network included 31 healthcare network facilities with a total of 2,308 beds and 1.3 million healthcare plans.For more information, visit www.aunainvestors.comSafe Harbor Statement and Financial Guidance Disclaimer
This press release contains forward-looking statements that convey the company's current expectations or forecasts of future events. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "project," "plan," "believe," "potential," "continue," or other similar expressions.The forward-looking statements in this press release represent the company's expectations and forecasts as of the date of the release. Except as required by law, the company undertakes no obligation to update or revise these statements publicly after the release date. For a discussion of the risks facing the company that could affect the realization of these forward-looking statements, see the company's Form F-1 filing with the U.S. Securities and Exchange Commission.Auna's financial guidance is based on management's current performance outlook and expected macroeconomic and regulatory conditions. Any changes in these conditions could impact the guidance. The 2024 financial guidance reflects management's current assumptions regarding numerous evolving factors that are difficult to accurately predict. Reconciliations of forward-looking non-IFRS measures to relevant forward-looking IFRS measures are not provided due to uncertainty. The 2024 financial guidance constitutes forward-looking statements. For more information, see the "Forward-Looking Statements" section in this release.View source version on businesswire.com: https://www.businesswire.com/news/home/20241119325564/en/ContactsIR ContactEmail: contact@aunainvestors.com
