4Q23/2023
Earnings Release
CONFERENCE CALL
FRI | March 24, 2024 | 1:00 p.m.
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INDEX | |
HIGHLIGHTS OF THE QUARTER | 3 |
MANAGEMENT MESSAGE | 4 |
CORPORATE PROFILE | 7 |
OPERATIONAL PERFORMANCE | 9 |
GROSS REVENUE | 10 |
GROSS PROFIT / GROSS MARGIN | 12 |
EBITDA / EBITDA MARGIN | 14 |
FINANCIAL RESULT AND INDEBTEDNESS | 15 |
INCOME TAX AND SOCIAL CONTRIBUTION | 17 |
NET INCOME | 17 |
INVESTMENTS | 17 |
FINANCIAL PERFORMANCE | 18 |
CASH FLOW | 19 |
BALANCE SHEET | 20 |
INCOME STATEMENT | 21 |
CASH FLOW STATEMENT | 22 |
DISCLAIMER | 23 |
4Q23 | ReleaseEarnings | 2 |
ALLIANÇA ANNOUNCES ITS 4Q23 RESULTS
With the resumption in growth and continuous improvement in results through important actions aimed at efficiency, Alliança reached, in 2023, its highest historical revenue and returned to the 20% level in EBITDA margin.
São Paulo, March 21, 2024 - Alliança Saúde e Participações S.A. ("Alliança" or "Company") (B3: AALR3), one of Brazil's largest diagnostic medicine companies, announces today its results for the fourth quarter of 2023 (4Q23) highlighting its main financial indicators and business performance. The figures and their historical series (when available) can be accessed at http://ri.allianca.com.
Highlights | 4Q23 | 4Q22 | YoY | 2023 | 2022 | YoY |
(BRL Million) | ||||||
Gross Revenue (ex-PPP construction)1 | 299.3 | 281.2 | 6.4% | 1,255.8 | 1,166.9 | 7.6% |
Net Revenue (ex-PPP construction)1 | 284.7 | 261.1 | 9.0% | 1,173.4 | 1,083.2 | 8.3% |
Gross Profit | 87.7 | 70.2 | 24.9% | 364.8 | 325.7 | 12.0% |
Gross Margin2 | 30.8% | 26.9% | 3.9 p.p. | 31.1% | 30.1% | 1.0 p.p. |
Adjusted EBITDA3 | 47.4 | 25.8 | 84.0% | 234.9 | 182.7 | 28.6% |
Adjusted EBITDA Margin2 | 16.7% | 9.9% | 6.8 p.p. | 20.0% | 16.9% | 3.2 p.p. |
Adjusted Net Income (Loss) | -46.6 | -87.4 | -46.7% | -169.9 | -154.9 | 9.7% |
- Excludes "construction revenue", an accounting entry referring to the investment made at RBD (PPP Bahia);
2 Margins are calculated on net revenue ex-PPP construction;
3 Excludes the write-off of financial assets and non-recurring expenses (see chapter on EBITDA).
HIGHLIGHTS FOR THE QUARTER
- Gross Revenue continues to improve, recorded at BRL299 million in 4Q23, +6% compared to 4Q22, and BRL1,256 million in 2023, +8% from the previous year, achieving the best result in the Company's history.
- We highlight the Net Revenue achieved in the quarter, growing by 9% over 4Q22, totaling BRL285 million in 4Q23.
- Gross Profit reached BRL88 million (+25% YoY) in 4Q23, and BRL365 million (+12% YoY) in 2023, with a Gross Margin of 31% for both periods.
- In 4Q23, Adjusted EBITDA³ reached BRL 47 million, increasing by 84% YoY. In 2023, Adjusted EBITDA reached BRL235 million, +29% over 2022. As a reflection of the Company's ongoing operational and financial restructuring, the Adjusted EBITDA Margin reached 17% in 4Q23 (+7 p.p. vs. 4Q22) and 20% in 2023, increasing by 3 p.p. over 2022.
4Q23 | ReleaseEarnings | 3 |
MANAGEMENT MESSAGE
We are pleasured to conclude another year, in which we emphasize Alliança's resilience and ability to overcome the challenges faced during 2023. Through our operational and financial restructuring process, we achieved significant milestones that reflect our commitment to excellence and continuous improvement.
Among the fundamental pillars of our strategy, we highlight the following:
- Our focus on optimizing the productivity of our equipment by opening new schedules, including alternative time slots, and we also delivered new magnetic resonance equipment to several units, contributing to the expansion and modernization of our services;
- Our priority in converging and integrating our business structures through integrated leadership and multifunctional teams, fostering efficient communication between the Company's areas;
- The negotiations carried out with paying sources (health operators) aimed at improving the Company's financial cycle.
In addition to our recurring work fronts, such as the verticalization of clinical analysis services with the new internalization processes for collections, regionalization of our call centers, and the review of our supply chain, we also automatized our processes and readjusted our G&A structure, allowing us to reach high-cost optimization levels, consistent profitability, and greater operational agility.
As a result, in 2023, the Company achieved its highest Gross Revenue in a year, higher than pre-pandemic levels, totaling BRL1,256 million, an increase of 8% over 2022.
In 4Q23, Gross Revenue (excluding PPP Construction) totaled BRL299 million, 6% higher than 4Q22, the Company's best result for a fourth quarter (excluding effects from Covid exams), thus reinforcing the growth trend for economic-financial metrics.
4Q23 | ReleaseEarnings | 4 |
In addition to these results, we also achieved the following milestones:
- Growth of 9% in Adjusted Net Revenue (excluding PPP Construction) in 4Q23, and +8% YoY;
- Growth of 11% and 7% in Imaging revenue in 2023 and in 4Q23, respectively, arising from the actions implemented during the period;
- Gross Margin of 31% in 4Q23, expanding by 4 p.p. from 4Q22;
- In 4Q23, average ticket of CA exams ex-Covid increased 11% versus 4Q22, confirming the successful expansion strategy for the CA sector.
An important 4Q23 highlight was the 84% growth in Adjusted EBITDA compared to the same period of the previous year, totaling BRL47 million, this was the highest increase in EBITDA in a YoY comparison. In 2023, Adjusted EBITDA was BRL235 million, increasing by 29% in 2023 vs. 2022. These results were achieved through the actions to recover profitability, such as cost and expense readjustments.
We remain committed in seeking the creation of strategic partnerships, which also includes the plans of inserting Alliança into the B2B market to strengthen the Company's positioning and increase its services and revenues. We are also carrying out feasibility studies for M&A projects.
In 4Q23, we highlight the merger of the subsidiaries Clínica Delfin Gonzalez Miranda S.A. and Clínica Delfin Villas Diagnósticos por Imagem Ltda, approved at the Board of Directors' meeting held in December 2023. This merger aims to consolidate and integrate the assets of the subsidiaries into the Company's corporate and operational structures.
Furthermore, Alliança had its 'A(bra)' Stable Outlook rating affirmed, demonstrating the Company's efforts in maintaining its growth prospects and debt re-profiling.
4Q23 | ReleaseEarnings | 5 |
As Material Fact released by the Company, on September 22, 2023, Lormont, the controlling shareholder, granted on that date to the Company, the amount of BRL200 million, as Advance for Future Capital Increase, which will be capitalized in due course. This contribution was the first step among other planned operations aimed at7improving Alliança's capital structure, allowing the continued implementation of its business and expansion plan.
Subsequent events:
- We will continue to expand our agenda with new equipment in our units to further increase our operational efficiency. In January 2024, we concluded the delivery of new machines at our units CDB Tatuapé and CDB ABC.
- Our next steps are to ensure that the upcoming deliveries will be made according with the proposed schedule and their operational phase begin in the first half of 2024.
- During 1Q24, the Board of Directors approved the changes to be implemented in the Company's Management team, in line with the purpose of strengthening the strategic overview of its operations. In this sense, adjustments were made to our leadership, such as: (i) Mr. Pedro Thompson Landeira de Oliveira left the position of Chief Executive Officer and Mrs. Isabella Tanure, the current Vice Chair of the Company's Board of Directors, is also accumulating the role of interim CEO; (ii) changes were also carried out in other departments, particularly the Medical Department, with Dr. Ricardo Sartim as the head of the department, in a non- statutory manner. In turn, the role of Investor Relations Officer is being held temporarily by Mr. José Ramos, the Legal and Compliance Director at Alliança. The Company plans to present its new management team shortly, comprised by executives with vast experience in the healthcare sector.
We are advancing with the Company's restructuring process, seeking more solid results, and committed with the expansion of units, operational efficiency, and revenue generation. We remain dedicated in identifying growth opportunities, promoting health for our customers, and focusing on the operation's profitability for our shareholders.
Thank you for your support and we reiterate our commitment in maintaining transparency with all shareholders.
Management Team
4Q23 | ReleaseEarnings | 6 |
"ALLIANÇA EXCELÊNCIA EM SAÚDE"
Alliança - Excellence in Healthcare. We are a company aimed at valuing and strengthening a sense of alliance between Growth, Efficiency, Customers, People, and Quality Health - our 5 pillars. Alliança also represents the strengthening of our strategic alliances and partnerships. Alliança seeks new ways to change the health sector in Brazil. This implies in reinventing business models and ensuring leadership, giving visibility to a Company that is conscience, modern and young, even in a traditional segment. Our purpose under the Alliança brand will be to continue innovating and providing quality service to our customers.
CORPORATE PROFILE
4Q23 | ReleaseEarnings | 7 |
ALLIANÇA IS ONE OF BRAZIL'S LARGEST AND MOST RENOWNED HEALTH DIAGNOSIS SYSTEMS
Present in 46 cities in 13 Brazilian states, with a total of 113 service units¹ strategically distributed (of which 7 are in pre-operational phase), the Company has the most modern technological park in the high complex diagnostic medicine segment in Brazil, being the second largest company in number of magnetic resonance equipment in the sector, in addition to CT scanners and ultrasounds resulting from massive investments in technology imports.
¹Already considering the units that will be opened with the Unimed FAMA contract, as well as units managed by the Company for future acquisition (ProEcho and CEPEM).
4Q23 | ReleaseEarnings | 8 |
OPERATIONAL PERFORMANCE
Operating Indicators | Assets | ||
End of the period | 4Q23 | 3Q23 | 4Q22 |
Units1 | 96 | 96 | 97 |
Mega | 17 | 17 | 17 |
Standard | 68 | 68 | 68 |
Collection Units | 11 | 11 | 12 |
MRI Equipment | 111 | 111 | 112 |
CA Rooms | 304 | 304 | 304 |
- Considers Alliança's operating units only. Including the pre-operational units of the contract with Unimed Fama and the units to be acquired from the companies ProEcho and CEPEM, we have a total 113 units.
The Company has been readjusting, quarter-on-quarter, the average ticket for all types of exams, highlighting to MRI exams, which grew by 3% and 4% in 4Q23 and 2023, respectively. CA exams (excluding the effects of Covid exams, which have a higher average ticket than other exams in the sector) also improved, by 11% in 4Q23 and 12% in 2023. The growth in average ticket for CA exams (ex-Covid) was the best recorded since the end of the Covid-19 pandemic. These results are due to a better commercial positioning and a more efficient service mix.
The number of MRI exams/equipment/day increased by 5% in 2023, arising from several activities, such as the restructuring of our call center and the opening of new time slots for exams (including weekends and evenings). We expect this metric,
combined with the ongoing internalization process for CA exams, will increasingly improve in the coming quarters and positively contribute to a higher profitability.
Performance | ||||||
4Q23 | 4Q22 | YoY | 2023 | 2022 | YoY | |
Services | ||||||
MRI Exams ('000) | 194.3 | 194.5 | -0.1% | 816.0 | 794.4 | 2.7% |
CA Exams ('000) | 1,673.0 | 1,804.8 | -7.3% | 7,697.6 | 8,452.1 | -8.9% |
CA Exams ex-Covid ('000) | 1,672.8 | 1,802.2 | -7.2% | 7,694.7 | 8,375.0 | -8.1% |
Average Ticket | ||||||
MRI Avg. Ticket (BRL) | 552.4 | 536.3 | 3.0% | 546.8 | 525.1 | 4.1% |
CA Avg. Ticket (BRL) | 18.0 | 16.4 | 9.3% | 17.5 | 18.0 | -2.9% |
CA ex-Covid Avg. Ticket (BRL) | 18.0 | 16.2 | 10.8% | 17.5 | 15.7 | 11.6% |
Average Daily Production | ||||||
MRI Exams/Equipment/Day | 28.0 | 27.8 | 0.7% | 29.8 | 28.4 | 4.9% |
4Q23 | ReleaseEarnings | 9 |
GROSS REVENUE
In 4Q23, Gross Revenue totaled BRL299 million, growing by 6% over the same period of the previous year.
In 2023, Gross Revenue grew by 8% vs. 2022, once again reaching record levels and confirming the Company's operational capacity, even amidst challenging scenarios.
Revenues from MRI and other imaging exams increased significantly in 2023, including in 4Q23, even when demand for exams reduces during the last quarter of the year due to year-end festivities and vacations.
Gross Revenue | 4Q23 | 4Q22 | YoY | 2023 | 2022 | YoY |
(BRL Million) | ||||||
Adjusted Gross Revenue1 | 299.3 | 281.2 | 6.4% | 1,255.8 | 1,166.9 | 7.6% |
Diagnostic Imaging | 269.3 | 251.6 | 7.0% | 1,121.0 | 1,014.4 | 10.5% |
MRI | 107.3 | 104.3 | 2.9% | 454.0 | 417.1 | 8.8% |
Ex-MRI Imaging | 161.9 | 147.3 | 9.9% | 667.0 | 597.3 | 11.7% |
Clinical Analysis | 30.0 | 29.6 | 1.4% | 134.8 | 152.4 | -11.5% |
Construction Revenue | 3.7 | 1.6 | N/A | 6.5 | 1.9 | N/A |
Gross Revenue | 303.0 | 282.8 | 7.1% | 1,262.4 | 1,168.8 | 8.0% |
Deductions | -14.8 | -20.2 | -26.8% | -82.8 | -83.7 | -1.1% |
Net Revenue | 288.2 | 262.6 | 9.8% | 1,179.6 | 1,085.0 | 8.7% |
Adjusted Net Revenue¹ | 284.7 | 261.1 | 9.0% | 1,173.4 | 1,083.2 | 8.3% |
¹ Excludes "construction revenue", accounting entry referring to the investment made at RBD (PPP Bahia).
4Q23 | ReleaseEarnings | 10 |
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Centro de Imagem Diagnósticos SA published this content on 21 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2024 02:10:05 UTC.