Fleury (FLRY3) Q3 2024 earnings summary

Executive summary

• Gross revenue reached R$2.13 billion in 3Q24, up 6.1% year-over-year, with EBITDA of R$537.4 million (6.2% growth) and net income of R$190.7 million (9.5% growth), reflecting strong execution and integration of Pardini Group.

• Integration with Pardini expanded technical capabilities and national reach, enhancing B2B and B2C offerings.

• Revenue growth was supported by resilience in a challenging macro environment, expansion in B2B, mobile, and new health platforms.

• Maintained a robust capital structure, with leverage at 1.0x net debt/EBITDA and extended debt maturity to 3.4 years.

• Operational cash flow increased 16.2% to R$558.7 million, and the company received multiple industry awards.

Financial highlights

• Gross revenue: R$2.13 billion (+6.1% YoY); EBITDA: R$537.4 million (+6.2% YoY, margin 27.4%); net income: R$190.7 million (+9.5% YoY, margin 9.7%).

• Gross profit: R$557.0 million (+5.6% YoY, margin 28.4%).

• Operational cash flow: R$558.7 million (+16.2% YoY); capex: R$112.7 million (+29.1% YoY).

• Net debt: R$1.87 billion, net debt/EBITDA at 1.0x, with average debt maturity of 3.4 years.

• Cash conversion: 86.7% of EBITDA.

Outlook and guidance

• Continued focus on cost discipline, efficiency, and capturing synergies from Pardini integration.

• Ongoing digital transformation and productivity initiatives expected to drive future gains.

• No formal guidance for Q4, but management remains confident in sustainable growth and value generation.

• Expansion into new regions, such as Santa Catarina, and growth in B2B Lab-to-Lab and digital health platforms.