Rede D'Or São Luiz (RDOR3) Q4 2024 earnings summary

Executive summary

• Achieved record results in 2024, with gross revenue surpassing BRL 31.3 billion and net income rising 81.6% to BRL 3.9 billion, driven by hospital expansion, strong operational performance, and the full integration of SulAmérica.

• Expanded hospital network with five new hospitals, including Atlântica D'Or units, increasing total beds by 11.2% to over 13,000, and maintained a record average occupancy rate of 79.6%.

• SulAmérica contributed significantly, growing its beneficiary base by 7.5% to 5.3 million, launching 29 new products, and reducing claims and administrative expenses.

• SulAmérica's results are fully consolidated from March 2023, impacting comparability.

Financial highlights

• Gross revenue grew 10.1% to BRL 31.3 billion, EBITDA rose 33.3% to BRL 8.5 billion with a 25.8% margin, and adjusted EBITDA (including SulAmérica) reached BRL 9.5 billion, up 29% year-over-year.

• Net income increased 81.6% to BRL 3.9 billion; adjusted net income was BRL 4.1 billion, excluding non-cash amortization.

• SulAmérica's adjusted EBITDA for 2024 was BRL 2.3 billion, up 131.5% year-over-year.

• Operational cash flow reached BRL 9.8 billion, up 71.2% year-over-year.

• Net debt/EBITDA at year-end was 1.9x, or 1.3x including insurance reserves.

Outlook and guidance

• Expecting stronger bed expansion in 2025, with ramp-up of new hospitals and continued organic and inorganic growth, including over 4,000 new beds planned through 2028.

• Anticipate margin improvement in hospitals, especially in the second half of 2025, as new units mature and operational leverage increases.

• SulAmérica aims for continuous improvement in consolidated loss ratio and further beneficiary base growth through product innovation and fraud reduction.

• Forward-looking statements are subject to risks and uncertainties, with no obligation to update projections.