Full Press Release Details
Announces 2Q24 Financial Results
Adjusted EBITDA increases 31%
YoY, consolidating strong results
OncoMexico launched in Monterrey
Luxembourg, August 21, 2024 - Auna (NYSE:
AUNA) ("Auna" or the "Company"), a leading healthcare platform in Latin America with operations in Mexico,
Colombia and Peru, today announced unaudited financial results for the second quarter ended June 30, 2024 ("second quarter 2024"
or "2Q24"). Financial results are expressed in Peruvian Soles ("S/" or PEN") and are presented in accordance
with International Financial Reporting Standards ("IFRS"), unless otherwise noted.
2Q24 Consolidated Highlights
On July 1, 2024, Auna announced the launch of OncoMexico,
the country's first integrated oncology insurance, in Monterrey. The pilot phase during 2024 will develop and confirm the capabilities
needed for full deployment in 2025. OncoMexico offers access to prevention, early detection, and treatment of cancer, the third leading
cause of death in Mexico. OncoMexico is the first step toward replicating in Mexico the vertically integrated healthcare model that Auna
successfully operates in Peru.
Message from Auna's Executive
Chairman and President
Second quarter results affirm again the effectiveness
of our business model and how increased scale and maturity drive incremental value throughout our platforms of care. During the quarter
we gained momentum, with Adjusted EBITDA increasing 31% YoY, or 25% FXN YoY, and keeping us on track to deliver at least 20% FXN Adjusted
EBITDA growth this year. Our strong quarterly performance was achieved despite additional investments made to implement the AunaWay in
Monterrey, where we continue to make headway recruiting the right physicians and expanding our delivery of high-complexity care. As more
physicians recognize the many distinct advantages of the AunaWay and join our team, we are beginning to see increases in doctor productivity.
recruitment and compensation models are producing
growth in a number of high-complexity services. During the remainder of the year and into 2025 we expect to harvest our efforts to raise
occupancy levels in Mexico, particularly occupancy related to high-complexity care. All of this is a deliberate and gradual process that
results from fostering our unique culture of patient care in Monterrey.
Both our Peruvian and Colombian operations continued
to perform well during the quarter, further validating our scalable business model and growth strategy. Given the increasing predictability
of our diversified regional platform's performance, we remain confident in our plan to achieve similar performance levels in Mexico.
Our payors are also integral to succeeding in Mexico,
many of which are already familiar with Auna's high standards of care. We are offering them tailored products and bundled services
similar to those in Peru and Colombia, where we have forged many win-win partnerships.
We are very proud to have launched OncoMexico.
Leveraging our 35 years of experience in integrated oncological services and AunaSeguros' (previously Dentegra) strong and extensive
distribution platform in Mexico, we will gradually roll out OncoMexico, the country's first integrated cancer insurance plan. We
intend to replicate our past success, including the goal of operating with the same long-term Medical Loss Ratio ("MLR") and
high standards of OncoSalud. During the rest of this year, we will establish the necessary capabilities to roll-out OncoMexico at scale
in 2025, including commercial, clinical and risk-underwriting operations, among others.
Looking ahead, we remain excited about Auna's
near and long-term growth opportunities, particularly given that we are in the relatively early stages of penetrating Spanish-speaking
Latin America's fragmented and underserved healthcare market. Through our unique operating model and scalable regional platform,
we will continue to disrupt, modernize, and increase access to integrated healthcare in the region, always with the aim of providing high
value to our patients, their families, Auna staff, and shareholders.
Overview of 2Q24 Consolidated Results
Consolidated revenues increased
18% YoY to S/1,120 million, or 12.5% FXN, as a result of Auna's business mix, with revenues increasing 15% and 18% FXN in Peru and
Colombia, respectively. In Mexico, revenues increased 3% FXN, reflecting an improved service mix through the implementation of the AunaWay.
Auna's Peruvian operation continues
to outperform, demonstrating again the success of the Company's vertically integrated business model when operating at scale.
Adjusted EBITDA increased 31%
YoY, or S/58 million, to S/248 million, or 25% on an FXN basis, with the corresponding margin expanding to 22.1% on solid revenue growth
and increasing efficiencies across local and regional levels as the Company continues to capture synergies and streamline processes. Operating
profit increased 34% YoY, mainly due to a 19% increase in gross profit.
Net finance costs were S/182 million.
When excluding FX effects, net interest expenses would have been S/133 million, an increase of 5% versus 2Q23. These FX effects include
a negative non-cash accounting FX expense of S/49 million, corresponding mainly to the movement of the Peruvian Sol below the floor of
Net Income was S/8 million in
2Q24, compared to a Net loss of S/8 million in 1Q24 and Net income of S/23 million in 2Q23. The increases in Operating profit and deferred
tax benefits versus 2Q23 were offset by the abovementioned negative FX effect.
Adjusted Net Income was S/13 million
in 2Q24, lower than S/36 million in 2Q23 and S/22 million in 1Q24, mainly due to the negative non-cash FX effect explained above. On a
quarterly per share basis, Auna reported Net Income of S/0.05 and Adjusted Net Income of S/0.12, both based on a weighted average number
of outstanding shares of 73,970,299, which includes a stock-based payment for 52,722 shares granted but not yet issued.
Business performance
(Explanations of variances are
Auna s Healthcare Services and AunaSeguros
operations in Mexico accounted for 27% of consolidated revenues and 40% of Adjusted EBITDA.
(Figures in millions of Soles
and millions of US Dollars, unless expressed otherwise)
| 2Q'24 vs 2Q'23 | YTD'24 vs YTD'23 | |||||||||||
| Healthcare Services Mexico Key Operating Metrics | 2Q'24 (USD) | 2Q'24 | YTD'24 | As Reported | Local Currency | As Reported | Local Currency | |||||
| Beds | # | 708 | 708 | 0% | 0% | |||||||
| Surgeries | # (000) | 5 | 10 | 6% | 2% | |||||||
| Emergency treatments | # (000) | 9 | 19 | -9% | -1% | |||||||
| Occupancy (operating capacity) | % | 62.1% | -1.4 p.p. | |||||||||
| Occupancy (total capacity) | % | 41.3% | -1.0 p.p. | |||||||||
| Key Financial Metrics | ||||||||||||
| Revenue | 79 | 302 | 611 | 7% | 3% | 11% | 4% | |||||
| Segment Adjusted EBITDA | 26 | 100 | 204 | 4% | 0% | -3% | -8% | |||||
| Segment Adjusted EBITDA margin | % | 33.1% | 33.4% | -1.2 p.p. | -4.5 p.p. |
Revenue in Mexico increased 3% YoY, primarily driven
by an increase in the number of surgeries, aligned with the Company's plans to grow high-complexity procedures.
remains focused on increasing growth and profitability in Mexico by raising occupancy levels and further increasing the delivery of high-complexity
services. To achieve these goals, the Company is making progress with two parallel initiatives: (i)
a physician relationship and incentive model focused on recruiting doctors in higher-complexity specialties, and on retaining current
doctors and improving their productivity by offering them competitive incentives, and; (ii) tailor-made products and programs for payors,
that are aimed at increasing referrals to Auna's network.
These initiatives are expected to have a greater
impact on Mexico s revenue and profitability in the second half of 2024 and in 2025. However, the Company is already experiencing
increases in doctor productivity under the new physician relationship and incentive model, with higher volumes of certain high-complexity
services, mainly surgeries, in 2Q24.
Adjusted EBITDA in Mexico was flat YoY with a healthy
margin of 33.1% despite YoY increases in operating costs and SG&A incurred to strengthen local and regional capabilities.
PERU OPERATIONS: HEALTHCARE
SERVICES PERU AND ONCOSALUD PERU
Auna s Healthcare Services and OncoSalud
Peru (Auna's Healthcare plans in Peru) accounted for 39% of consolidated revenues and 38% of Adjusted EBITDA.
(Figures in millions of Soles
and millions of US Dollars, unless expressed otherwise)
| Healthcare Services Peru and Oncosalud Peru Key Financial Metrics | 2Q'24 (USD) | 2Q'24 | YTD'24 | 2Q'24 vs 2Q'23 | YTD'24 vs YTD'23 | |||
| Revenue | 115 | 441 | 859 | 15% | 14% | |||
| Healthcare Services Peru | 67 | 255 | 496 | 18% | 16% | |||
| Oncosalud Peru | 70 | 269 | 522 | 17% | 16% | |||
| Holding and Eliminations (*) | (83) | (159) | 30% | 26% | ||||
| Consolidated Peru Adjusted EBITDA | 24 | 93 | 179 | 96% | 65% | |||
| Healthcare Services Peru | 10 | 40 | 77 | 318% | 146% | |||
| Oncosalud Peru | 14 | 54 | 102 | 40% | 32% | |||
| Consolidated Peru Adj. EBITDA margin | % | 21.2% | 20.8% | 8.7 p.p. | 6.4 p.p. | |||
| Healthcare Services Peru | 15.6% | 15.5% | 11.2 p.p. | 8.2 p.p. | ||||
| Oncosalud Peru | 19.9% | 19.5% | 3.3 p.p. | 2.4 p.p. | ||||
| (*) Relates to intersegment revenue elimination. |
| Healthcare Services Peru Key Operating Metrics | 2Q'24 (USD) | 2Q'24 | YTD'24 | 2Q'24 vs 2Q'23 | YTD'24 vs YTD'23 | |||
| Beds | # | 375 | 375 | 0% | 0% | |||
| Surgeries | # (000) | 5 | 10 | 1% | 2% | |||
| Emergency treatments | # (000) | 47 | 86 | -9% | -4% | |||
| Occupancy (operating capacity) | % | 82.2% | 5.9 p.p. | |||||
| Occupancy (total capacity) | % | 71.9% | 5.8 p.p. | |||||
| Key Financial Metrics | ||||||||
| Revenue | 67 | 255 | 496 | 18% | 16% | |||
| External revenues | 48 | 183 | 357 | 12% | 11% | |||
| Intercompany revenue | 19 | 72 | 139 | 35% | 31% | |||
| Segment Adjusted EBITDA | 10 | 40 | 77 | 318% | 146% | |||
| Segment Adjusted EBITDA margin | % | 15.6% | 15.5% | 11.2 p.p. | 8.2 p.p. |
| Healthcare Plans Peru Key Operating Metrics | 2Q'24 (USD) | 2Q'24 | YTD'24 | 2Q'24 vs 2Q'23 | YTD'24 vs YTD'23 | |||
| Plan memberships | # (000) | 1,263 | 1,263 | 5% | 5% | |||
| Oncological Plans | # (000) | 972 | 972 | 3% | 3% | |||
| Average monthly revenue per plan membership | 15.57 | 60.60 | 59.64 | 2% | 3% | |||
| Preventive check-ups | # (000) | 25 | 52 | -24% | -23% | |||
| Patients treated | # (000) | 13 | 45 | -3% | 3% | |||
| MLR | % | 58.6% | 7.4 p.p. | |||||
| Oncological Plans | % | 54.7% | 5.2 p.p. | |||||
| Key Financial Metrics | ||||||||
| Revenue | 70 | 269 | 522 | 17% | 16% | |||
| External revenues | 67 | 258 | 502 | 17% | 16% | |||
| Intercompany revenue | 3 | 11 | 20 | 7% | 2% | |||
| Segment Adjusted EBITDA | 14 | 54 | 102 | 40% | 32% | |||
| Segment Adjusted EBITDA margin | % | 19.9% | 19.5% | 3.3 p.p. | 2.4 p.p. |
Consolidated Revenue from Peru increased
15% YoY, or S/57 million, to S/441 million. This growth was mainly due to a 5% increase in memberships in the Healthcare Plans business
and an 18% revenue increase in the Healthcare Services business, mainly due to higher occupancy and an improvement in the mix of services
and specialties as the Company continues to focus on high-complexity care.
Consolidated Adjusted EBITDA in Peru almost
doubled YoY, growing from S/46 million to S/93 million, with the margin expanding 8.7 p.p. to 21.2%. Since 2021, Auna has implemented
several initiatives to improve the profitability of its operations in Peru, which continue to positively impact performance. These measures