FLEURY S.A. -
2Q23 EARNINGS
Revenue reaches R$ 1.8 billion with growth of 49.2%,
EBITDA* of R$ 429.1 million (44.0% over 2Q22; margin of 25.9%) and
Net Income* of R$ 117, 7 million (66.9% over 2Q22)
Fleury ON
B3: FLRY3
Investor Relations
www.fleury.com.br/ri |ri@grupofleury.com.br | +55 11 5014-7236
* EBITDA and Net Profit ex one-off Expenses of Business Combination with Instituto Hermes Pardini
About This Disclosure
For a better understanding of the results evolution, we offer, in addition to accounting results, amounts on the same basis for the periods of this year and last year.
The accounting result for 2Q23 and 6M23 captures Instituto Hermes Pardini results from May 2023 (transaction closing on 04/28/23).
The pro forma result - for simple comparison and unaudited ex-adjustments to the opening balance sheet - includes the three months (for the quarter) and six months (for the semester) of Fleury and Instituto Hermes Pardini as if both operations were combined in the same period of 2022 and 2023, as shown in the table below:
2Q22 | 2Q23 | 6M22 | 6M23 | |||||
Fleury | Pardini | Fleury | Pardini | Fleury | Pardini | Fleury | Pardini | |
Accounting | Apr, May, Jun | - | Apr, May, Jun | May, Jun | Jan → Jun | - | Jan → Jun | May → Jun |
Pro forma | Apr, May, Jun | Apr, May, Jun | Apr, May, Jun | Apr, May, Jun | Jan → Jun | Jan → Jun | Jan → Jun | Jan → Jun |
Conference call
• | Date: | August 4, 2023 - 11:00 am (10:00 am EDT) |
• | Webcast: | ri.fleury.com.br |
• | Phones: | +55(11) 3181-8565 - Code: Grupo Fleury |
USA: +1 (412) 717-9627 | ||
UK: +44 (20) 3795-9972 |
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Highlights
-
Gross Revenue of R$ 1.8 billion in 2Q23, a growth of 49.2% over 2Q22 o Pro forma growth of 12.7%
o Ex-Covid growth of 54.5% (17.4% pro forma) o Fleury brand growth of 13.2%
o Rio de Janeiro brand growth of 24.4% (9.9% pro forma)
o Home service growth of 40.4% representing 7.6% of revenue (25.9% pro forma; 7.1% of pro forma revenue)
o New Links with growth of 137.0% (30.5% organic) - EBITDA ex-BusinessCombination Expenses of R$429.1 million, 44.0% over 2Q22, and margin of 25.9% (R$464.0 million pro forma with margin of 25.2%, 38 bps over 2Q22)
- Net Income ex-Business Combination Expenses of R$117.7 million, 66.9% growth over 2Q22, and margin of 7.1%
- Organic expansion: 4 new diagnostic medicine units and 2 New Links units since the beginning of 2023
(R$ MM) | Accounting | Accounting | Δ | Accounting | Accounting | Δ |
2Q22 | 2Q23 | 6M22 | 6M23 | |||
Gross Revenue | 1.196,4 | 1.784,5 | 49,2% | 2.369,8 | 3.114,9 | 31,4% |
Cancellations (% Gross Revenue) | -0,9% | -0,8% | 16 bps | -0,9% | -0,8% | -13 bps |
Net Revenue | 1.111,7 | 1.659,5 | 49,3% | 2.201,7 | 2.896,4 | 31,6% |
Gross Profit | 300,4 | 455,1 | 51,5% | 625,1 | 811,8 | 29,9% |
Gross Margin (% Net Revenue) | 27,0% | 27,4% | 41 bps | 28,4% | 28,0% | 37 bps |
EBITDA ex-Business Combination Expenses | 298,0 | 429,1 | 44,0% | 624,6 | 774,9 | 24,1% |
EBITDA Margin ex-Business Combination | 26,8% | 25,9% | -95 bps | 28,4% | 26,8% | 161 bps |
Expenses(% Net Revenue) | ||||||
Net Income ex-Business Combination Expenses | 70,5 | 117,7 | 66,9% | 180,9 | 221,5 | 22,4% |
Net Margin ex-Business Combination Expenses | 6,3% | 7,1% | 75 bps | 8,2% | 7,6% | 57 bps |
(% Net Revenue) | ||||||
Pro forma | Pro forma | Δ | Pro forma | Pro forma | Δ | |
2Q22 | 2Q23 | 6M22 | 6M23 | |||
Gross Revenue | 1.755,1 | 1.977,2 | 12,7% | 3.487,1 | 3.899,1 | 11,8% |
Cancellations (% Gross Revenue) | -0,8% | -0,8% | 6 bps | -0,8% | -0,7% | -3 bps |
Net Revenue | 1.631,8 | 1.838,6 | 12,7% | 3.263,9 | 3.625,5 | 11,1% |
Gross Profit | 436,7 | 500,6 | 14,6% | 926,0 | 1.008,0 | 8,8% |
Gross Margin (% Net Revenue) | 26,8% | 27,2% | 46 bps | 28,4% | 27,8% | 57 bps |
EBITDA ex-Business Combination Expenses | 298,0 | 429,1 | 44,0% | 872,4 | 929,4 | 24,1% |
EBITDA Margin ex-Business Combination | 26,8% | 25,9% | -95 bps | 26,7% | 25,6% | -161 bps |
Expenses (% Net Revenue) | ||||||
3
Sumário
2. | Lab-to-Lab | 7 | |
3. | About Grupo Fleury | 8 | |
4. | Highlight Events | 10 | |
4.1. | Bonus Shares | 10 | |
5. | Income Statement | 11 | |
6. | Gross Revenue | 12 | |
6.1. | Covid Impacts | 13 | |
6.2. | Diagnostics | 13 | |
6.2.1. | Patient Service Center (PSC) per Brands | 13 | |
6.2.2. | Volumes and Revenue per Exam | 15 | |
6.2.3. | B2B: Hospitals and Lab-to-lab | 16 | |
6.3. | Genomics | 17 | |
6.4. | New Links and Healthcare Platforms | 18 | |
6.4.1. | New Links | 18 | |
6.4.2. | Health Plataforms | 18 | |
7. | Gross Profit | 19 | |
8. | Operacional Expenses | 20 | |
9. | EBITDA | ......................................................................................................................................................... | 21 |
10. | Financial Result and Net Debt | 22 | |
10.1. | Financial Result | 22 | |
10.2. | Net Debt | 23 | |
11. | Net Income | 23 | |
12. | Investiments | 24 | |
13. | Cash Flow | 25 | |
14. | Attachments | 26 | |
14.1. | Performance Indicators | 26 | |
14.2. | Balance Sheet | 28 | |
14.3. | Income Statements | 29 | |
14.4. | Cash Flow Statements | 30 |
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1. Management Comments
The second quarter of 2023 marks the beginning of Grupo Fleury results disclosure after the business combination between Fleury S.A. and Instituto Hermes Pardini S.A., which took place on 04/28/2023, a movement that reinforces our trajectory of growth and strengthening as one of the most relevant diagnostic medicine companies in the country. We began to write a new chapter in our history based on a well-defined strategy for building an integrated health ecosystem, with disciplined execution, and delivering another quarter of consistent results.
We reached a record quarterly revenue of R$ 1.8 billion, with growth of 49.2% compared to the same period of last year, with the consolidation of Grupo Pardini May and June results. Considering the pro forma, unaudited result and for simple comparison, quarterly revenue was R$ 2.0 billion, 12.7% higher than the second quarter of 2022. These numbers demonstrate our ability to deal with a challenging scenario, always ready to evaluate market opportunities, continuing the organic and inorganic growth strategy, and leverage this combination to improve the offer of services to patients, physician, partner laboratories and health operators.
Geographic complementarity is now reflected in B2C diagnostic medicine, which had total revenue growth of 33.8%, even with a lower share of Covid tests (3.9% in 2Q22 versus 0.5% in 2Q23). Brands such as Pardini in Minas Gerais, Padrão in Goiás and Paulo Azevedo in Pará were added to the portfolio, in addition to PSC units in São Paulo and Rio de Janeiro. The quarter was marked, once again, by the recognition of the Fleury brand, which grew by 13.2%, showing the strength of the premium brand that combines tradition, quality and innovation, with a high degree of customer satisfaction and relationship with the physician community. We also highlight the performance of the other brands in São Paulo, with a+ SP growth of 14.0% and a total of 38.1%, and the performance of the PSCs in Rio de Janeiro, which had an organic growth of 10.0% and a total of 24.4%. Home Service grew 40.4% compared to the same quarter last year and represents 7.6% of the Group's total revenue.
We also highlight that the complementarity of businesses in the B2B segment, hospitals, and lab-to-lab, already shows a positive impact, registering revenue growth of 98.5% in the quarter. It is worth highlighting the Grupo Pardini strength and differentiation serving 7,000 laboratories in more than 2,000 cities in all regions of the country. The combined company is present in the largest markets, increasing the diversification of service offerings and access to healthcare.
Another highlight in the quarter was revenue from New Links, which reached R$ 180.6 million, an increase of 137.0% compared to 2Q22, explained by the organic growth of 30.5% and the expected effect of acquisitions (Saha in Aug/22 and Retina Clinic in Apr/23).
In 2Q23, EBITDA ex-Business Combination Expenses reached R$ 429.1 million, an increase of 44.0% compared to 2Q22, with a margin of 25.9%. This result is due to discipline in controlling costs and expenses and the new business mix resulting from the combination of Grupo Fleury and Pardini, as well as one -off expenses of R$ 65.5 million mainly related to the one-time-cost acquisition and process of integration. The
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Disclaimer
Fleury SA published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2023 21:40:39 UTC.
