Full Press Release Details
Announces 3Q24 Financial Results
Adjusted EBITDA increases 23%
YoY FXN, maintaining strong growth
Leverage ratio decreases 0.4x
Luxembourg, November 19, 2024 - Auna (NYSE:
AUNA) ("Auna" or the "Company"), a leading healthcare platform in Latin America with operations in Mexico,
Peru and Colombia, today announced unaudited financial results for the third quarter ended September 30, 2024 ("third quarter 2024"
or "3Q24"). Financial results are expressed in Peruvian Soles ("S/" or PEN") and are presented in accordance
with International Financial Reporting Standards ("IFRS"), unless otherwise noted.
3Q24 Consolidated Highlights
from Auna's Executive Chairman and President
We delivered a strong quarter. We increased capacity
utilization across the regional network which allowed us to achieve record sales. In addition, Adjusted EBITDA reached historical highs
in Mexico and Peru which enabled Auna to reduce our leverage ratio to 3.7x Net Debt-to-Adjusted EBITDA.
In Mexico, the implementation of the AunaWay -
fostering a culture of patient-centered care, high medical resolution resulting from productive engagement with Auna's physician
and nursing communities, and standardization at scale - continues to yield improved financial results. Our unique approach improves utilization
rates and revenues through increased physician productivity and a greater mix of high-complexity services. We anticipate this positive
trend will continue and accelerate during 2025.
The early results of our OncoMexico pilot program
are encouraging, as we leverage over 35 years of experience providing integrated oncological services in Peru. We will continue the pilot
through the remainder of 2024 and into early 2025, focusing on testing commercial, clinical, and risk-underwriting processes in preparation
for the launch of OncoMexico by integrating our insurance business into our healthcare platform in Monterrey. The launch will initially target the
B2B segment, with plans to scale to the B2C segment later.
In Peru, where our integrated model is most
developed, we continue to deliver high performance levels, driven by sustained plan membership demand and ticket growth, as well as scale
productivity gains and an ongoing shift toward higher-complexity procedures across our network in the country.
In Colombia which is an important contributor of
scale and excellence in clinical practices across Auna, we will continue to regionalize these advantages. We remain optimistic about its
medium and long-term prospects. However, we are tempering our growth in the short term. While our cash conversion cycle is managed with
rigor, the regulator intervention in some payors, including Nueva EPS, requires a cautious stance in relation to our account receivables
growth and related provisions.
With the aforementioned strong performance, during
the quarter, we reduced Auna's leverage, marking the eighth consecutive quarter of a lower Net Debt-to-Adjusted EBITDA ratio, which
improved to 3.7x at the end of the quarter, keeping us on track to achieve our medium-term target of less than 3.0x.
In addition, as we continue to further strengthen
Auna's capabilities, we recently made a series of adjustments to our organization and team structure.
In summary, we remain optimistic about Auna's
near and long-term growth prospects, particularly regarding our progress in implementing the AunaWay in Mexico and our ongoing expansion
in Peru. Although we remain optimistic in Colombia that the tensions between the authorities and payors, and between payors and providers,
like ourselves, will be reduced in the medium term, we are managing the situation with prudence and vigilance. Thus, in the near term,
in Colombia, we will favor cash flow over growth.
The fragmented and underserved healthcare market
in Spanish-speaking Latin America remains highly attractive. Through our distinctive operating model and scalable regional platform, we
will continue to innovate, modernize, and expand access to integrated healthcare across the region, always with a sharp focus on providing
high value to our patients, their families, Auna staff, and our shareholders.
Overview of 3Q24 Consolidated Results
Revenues increased 11% YoY to
S/1,127 million, or 13% FXN, as a result of Auna's improving sales mix, with revenues increasing 16% in local currency ("L.C.")
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. During the quarter, Auna's Peruvian operation continued
to outperform, demonstrating the strength of the Company's vertically integrated business model when operating at scale. Colombia
kept pace with sustained
demand for oncology services, consistent
with Auna's ongoing focus to high-complexity care in the country.
Adjusted EBITDA increased 18%
YoY, or 23% FXN, to S/250 million, with the corresponding margin expanding 1.4 p.p. 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 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 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, a 30% FXN growth
Net finance costs were S/103 million
in 3Q24 versus S/172 million in 3Q23. When excluding FX effects, net interest expenses would have been S/132 million, a decrease of S/23
million or 15% versus 3Q23. These FX effects include a non-cash accounting FX benefit of S/28 million, corresponding mainly to the appreciation
of the Peruvian Sol to the Mexican Peso.
Net Income was S/101 million in
3Q24, compared to Net Income of S/8 million in 2Q24 and Net Loss of S/18 million in 3Q23. 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 was S/75 million
in 3Q24, versus S/13 million in 2Q24 and a loss of S/17 million in 3Q23. On a per-share basis, Auna reported Adjusted Net Income of S/0.98
based on a weighted average number of basic and diluted shares of 74,175,144.
Business performance
(Explanations of variances are
Auna s Healthcare Services and AunaSeguros
operations in Mexico accounted for 28% of consolidated revenues and 46% of Adjusted EBITDA.
(Figures in millions of Soles
and millions of US Dollars, unless expressed otherwise)
| 3Q'24 vs 2Q'24 | 3Q'24 vs 3Q'23 | YTD'24 vs YTD'23 | ||||||||||
| Healthcare Services Mexico Key Operating Metrics | 3Q'24 (USD) | 3Q'24 | YTD'24 | As Reported | Local Currency | As Reported | Local Currency | As Reported | Local Currency | |||
| Beds | # | 708 | 708 | 0% | 0% | 0% | ||||||
| Surgeries | # (000) | 5.6 | 15.9 | 6% | 1% | 1% | ||||||
| Emergency treatments | # (000) | 8.7 | 27.4 | -2% | -1% | -1% | ||||||
| Operating capacity utilization | % | 65.3% | 63.3% | 2.0 p.p. | 0.9 p.p. | -0.9 p.p. | ||||||
| Total capacity utilization | % | 43.4% | 42.1% | 1.3 p.p. | 0.6 p.p. | -0.5 p.p. | ||||||
| Key Financial Metrics | ||||||||||||
| Revenue | 85 | 316 | 927 | 4% | 14% | 7% | 16% | 9% | 8% | |||
| Segment Adjusted EBITDA | 31 | 113 | 317 | 13% | 24% | 24% | 34% | 5% | 4% | |||
| Segment Adjusted EBITDA margin | % | 35.9% | 34.2% | 2.9 p.p. | 4.7 p.p. | -1.3 p.p. |
Revenue in Mexico increased 16% year-over-year,
driven by a rise in surgical procedures, hospitalizations and ICU therapy services, along with higher average tickets related to such
During the third quarter, total capacity utilization
was 43.4%, an increase of 1.3 p.p. versus 2Q24, while operating capacity utilization reached 65.3%, increasing 2.0 p.p. versus 2Q24.
The implementation of the AunaWay continued to
produce positive results in Monterrey, as the Company remains focused on driving accelerated growth in Mexico, largely through increased
doctor productivity and payor referrals, as well as higher average ticket through an increased mix of high-complexity services.
Segment Adjusted EBITDA
Although gross margin decreased slightly, due to
investments in new compensation programs for doctors, Adjusted EBITDA in Mexico grew 34% YoY, with an increase in margin. Further, the
increase in Adjusted EBITDA was achieved despite YoY increases in fixed costs and SG&A related to building Auna's regional capabilities
PERU OPERATIONS: HEALTHCARE
SERVICES PERU AND ONCOSALUD PERU
Auna s Healthcare Services and OncoSalud
Peru (Auna's Healthcare plans business in Peru) accounted for 40% of consolidated revenues and 39% 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 | 3Q'24 (USD) | 3Q'24 | YTD'24 | 3Q'24 vs 2Q'24 | 3Q'24 vs 3Q'23 | YTD'24 vs YTD'23 | |||
| Revenue | 121 | 448 | 1,307 | 2% | 13% | 14% | |||
| Healthcare Services Peru | 69 | 255 | 751 | 0% | 11% | 14% | |||
| Oncosalud Peru | 74 | 273 | 795 | 2% | 15% | 16% | |||
| Holding and Eliminations (*) | (80) | (239) | -4% | 15% | 22% | ||||
| Consolidated Peru Adjusted EBITDA | 26 | 97 | 275 | 3% | 49% | 59% | |||
| Healthcare Services Peru | 10 | 38 | 116 | -4% | 45% | 100% | |||
| Oncosalud Peru | 16 | 58 | 160 | 8% | 52% | 39% | |||
| Consolidated Peru Adj. EBITDA margin | % | 21.6% | 21.1% | 0.3 p.p. | 5.3 p.p. | 6.0 p.p. | |||
| Healthcare Services Peru | 15.1% | 15.4% | -0.6 p.p. | 3.5 p.p. | 6.6 p.p. | ||||
| Oncosalud Peru | 21.3% | 20.1% | 1.3 p.p. | 5.2 p.p. | 3.3 p.p. |
| Healthcare Services Peru Key Operating Metrics | 3Q'24 (USD) | 3Q'24 | YTD'24 | 3Q'24 vs 2Q'24 | 3Q'24 vs 3Q'23 | YTD'24 vs YTD'23 | |||
| Beds | # | 375 | 375 | 0% | 0% | 0% | |||
| Surgeries | # (000) | 5 | 15 | 3% | 0% | 1% | |||
| Emergency treatments | # (000) | 48 | 134 | 1% | 6% | -1% | |||
| Operating capacity utilization | % | 85.1% | 83.4% | 0.0 p.p. | 9.7 p.p. | 6.9 p.p. | |||
| Total capacity utilization | % | 74.5% | 72.9% | 0.0 p.p. | 9.1 p.p. | 6.8 p.p. | |||
| Key Financial Metrics | |||||||||
| Revenue | 69 | 255 | 751 | 0% | 11% | 14% | |||
| External revenues | 50 | 185 | 542 | 1% | 10% | 10% | |||
| Intercompany revenue | 19 | 70 | 209 | -3% | 15% | 25% | |||
| Segment Adjusted EBITDA | 10 | 38 | 116 | -4% | 45% | 100% | |||
| Segment Adjusted EBITDA margin | % | 15.1% | 15.4% | -0.6 p.p. | 3.5 p.p. | 6.6 p.p. |
| Healthcare Plans Peru Key Operating Metrics | 3Q'24 (USD) | 3Q'24 | YTD'24 | 3Q'24 vs 2Q'24 | 3Q'24 vs 3Q'23 | YTD'24 vs YTD'23 | |||
| Plan memberships | # (000) | 1,296 | 1,296 | 3% | 4% | 4% | |||
| Oncological Plans | # (000) | 979 | 979 | 1% | 2% | 2% | |||
| Average monthly revenue per plan membership | 61.39 | 59.72 | 1% | 2% | 3% | ||||
| Preventive check-ups | # (000) | 26 | 78 | 5% | -14% | -20% | |||
| Patients treated | # (000) | 8 | 53 | -37% | 18% | 5% | |||
| MLR | % | 57.6% | 5.9 p.p. | ||||||
| Oncological Plans | % | 53.7% | 3.5 p.p. | ||||||
| Key Financial Metrics | |||||||||
| Revenue | 74 | 273 | 795 | 2% | 15% | 16% | |||
| External revenues | 71 | 263 | 765 | 2% | 15% | 16% | |||
| Intercompany revenue | 3 | 10 | 30 | -7% | 17% | 7% | |||
| Segment Adjusted EBITDA | 16 | 58 | 160 | 8% | 52% | 39% | |||
| Segment Adjusted EBITDA margin | % | 21.3% | 20.1% | 1.3 p.p. | 5.2 p.p. | 3.3 p.p. |
Total revenue from Peru increased 13% year-over-year