Afya Limited Announces Fourth Quarter and Full-Year 2024 Financial Results
Impressive Adjusted EBITDA Margin Expansion
Expressive Cash Generation
First Dividend Announcement
NOVA LIMA, Brazil--(BUSINESS WIRE)--March 13, 2025--
Afya Limited (Nasdaq: AFYA; B3: A2FY34) ("Afya" or the "Company"), the leading medical education group and medical practice solutions provider in Brazil, reported today its financial and operating results for the fourth quarter and full-year period ended December 31, 2024. Financial results are expressed in Brazilian Reais and are presented in accordance with International Financial Reporting Standards (IFRS).
Fourth Quarter 2024 Highlights
-- 4Q24 Net Revenue increased 16.3% YoY to R$849.0 million. Net Revenue
excluding acquisitions increased 12.0%, reaching R$817.8 million.
-- 4Q24 Adjusted EBITDA increased 26.7% YoY reaching R$366.0 million, with
an Adjusted EBITDA Margin of 43.1%. Adjusted EBITDA Margin increased 350
bps YoY. Adjusted EBITDA excluding acquisitions grew 20.5%, reaching
R$348.1 million, with an Adjusted EBITDA Margin of 42.6%.
-- 4Q24 Net Income increased 51.4% YoY, reaching R$154.3 million, and
Adjusted Net Income increased 17.7% YoY, reaching R$193.6 million. Basic
EPS growth was 52.4% in the same period.
Full Year 2024 Highlights
-- FY24 Net Revenue increased 14.9% YoY to R$3,304.3 million. Net Revenue
excluding acquisitions grew 12.7%, reaching R$3,240.7 million.
-- FY24 Adjusted EBITDA increased 24.9% YoY reaching R$1,455.6 million, with
an Adjusted EBITDA Margin of 44.1%. Adjusted EBITDA Margin increased 360
bps YoY. Adjusted EBITDA excluding acquisitions grew 21.7%, reaching
R$1,418.8 million, with an Adjusted EBITDA Margin of 43.8%.
-- FY24 Net Income increased 60.1% YoY, reaching R$648.9 million, and
Adjusted Net Income increased 38.8% YoY, reaching R$820.3 million. Basic
EPS growth was 62.9% in the same period.
-- Operating Cash Conversion ratio of 102.2%, with a solid cash position of
R$911.0 million.
-- Over 313 thousand users in Afya's ecosystem.
Table 1: Financial Highlights
Three months period ended December 31, Twelve months period ended December 31,
---------------------------------------------------- --------------------------------------------------------
(in thousand of 2024 Ex % Chg Ex 2024 Ex % Chg Ex
R$) 2024 Acquisitions* 2023 % Chg Acquisitions 2024 Acquisitions* 2023 % Chg Acquisitions
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
(a) Net Revenue 849,015 817,793 729,866 16.3% 12.0% 3,304,329 3,240,686 2,875,913 14.9% 12.7%
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
(b) Adjusted
EBITDA (2) 366,014 348,147 288,912 26.7% 20.5% 1,455,642 1,418,751 1,165,678 24.9% 21.7%
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
(c) = (b)/(a)
Adjusted EBITDA 350 360
Margin 43.1% 42.6% 39.6% bps 300 bps 44.1% 43.8% 40.5% bps 330 bps
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
Net income 154,279 - 101,886 51.4% - 648,920 - 405,416 60.1% -
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
Adjusted Net
income 193,607 - 164,449 17.7% - 820,290 - 591,124 38.8% -
---------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ----- ------------
*For the Three months period ended December 31, 2024, "2024 Ex Acquisitions" excludes: UNIDOM (October to December, 2024;
Closing of UNIDOM was in July 2024).
*For the Twelve months period ended December 31, 2024, "2024 Ex Acquisitions" excludes: UNIDOM (July to December, 2024; Closing
of UNIDOM was in July 2024).
(2) See more information on "Non-GAAP Financial Measures" (Item 08).
Message from Management
We proudly present another year of strong operational and financial performance, reflecting the differentials of our business model and the successful execution of our strategy. We closed the year with significant growth in net revenue and adjusted EBITDA delivering the guidance for 2024. These results underscore the strength of our ecosystem, which integrates Medical Education and Medical Practice Solutions to support the entire physician journey, from undergraduate studies to professional practice.
Our margin expansion was primarily driven by the integration of UNIMA and FCM Jaboatão, completed in 4Q23, the continued ramp-up of the four Mais Médicos campuses launched in 3Q22, the operational restructuring in Continuing Education and Medical Practice Solutions, the acquisition of Unidom, and our efforts to control Selling, General and Administrative expenses.
Furthermore, this year we maintained and reinforced our strategy to consolidate our leadership in providing access to quality medical education in Brazil. This was achieved through the acquisition of Unidom, which added 300 new medical school seats in Salvador, the approval of 80 additional seats at UNIMA Alagoas and 40 at Guanambi, and the reconsideration of 10 seats at Unigranrio in Rio de Janeiro. We also expanded our footprint by signing the acquisition of FUNIC, which will add 60 medical school seats in Contagem, a strategic location in the metropolitan area of Belo Horizonte. With these additions, we will reach 3,653 approved medical school seats.
We believe that sustainable growth is achieved through operational efficiency and academic excellence. In this regard, we successfully carried out a highly competitive student intake keeping the discipline of tuition adjustment above inflation, for new medical students, reflecting the strength of Afya's brand and its reputation within the medical and health community. Additionally, we reinforced our Continuing Education and Medical Practice Solutions strategy by launching five new specialization campuses in 2024 and consolidating our Medical Practice Solutions offerings.
Financially, we maintained robust cash ensuring liquidity to sustain our strategic investments and growth initiatives. Because of our strong cash generation, we are really pleased to announce that we will return part of it as dividends to our investors while maintaining our organic and inorganic growth plans. The Board of Directors has approved a cash dividend payout of 20% of 2024 net income, reflecting our confidence in Afya's sustainable results.
These outstanding results enabled another year of guidance achievement and reflect Afya's consistent growth and operational excellence. This consistency added to another strong intake cycle, pave the foundation for our 2025 guidance: Net Revenue is expected to range between R$ 3,670 million and R$3,770 million, while Adjusted EBITDA is anticipated to be between R$1,620 million and R$1,720 million, excluding any acquisition that may be concluded after the issuance of the guidance. Once again, we are guiding another strong round ahead and proving AFYA's resilience and ability to keep delivering solid results with a high predictability.
We also take immense pride in the significant social impact generated by Afya's investments in medical education. This commitment led us to calculate our Social Return on Investment $(SROI)$ using robust, globally recognized methodologies. According to our SROI study, every R$1 we invested resulted in R$3.58 in social benefits for the population of the municipalities analyzed. This reflects reduced mortality, increased life expectancy, and positive economic impacts such as wage growth and local financial activity.
We reaffirm our mission of transforming healthcare through education and technology, offering innovative solutions for developing and training physicians across Brazil. And that is why we are very excited to welcome Dr. Gustavo Meirelles as the Chief Medical Officer $(CMO.UK)$ of Afya. One of his top priorities will be driving innovation, evolving our products, and strengthening relationships within the health industry. With over 25 years of experience as a radiologist, healthcare executive, and entrepreneur, Dr. Meirelles has a proven track record in leadership, research, and consultancy, focusing on transformative changes in healthcare.
We appreciate the trust of our employees, students, partners, and shareholders. Together, we will continue driving the future of the medical journey in Brazil.
1. Key Events in the Quarter
-- On December 19th, 2024, Afya announced that it has entered into a share
purchase agreement to acquire 100% of the total share capital of
Faculdade Masterclass Ltda. ("Faculdade Única de Contagem" or
"FUNIC") at Contagem, State of Minas Gerais. The acquisition will add 60
medical school seats to Afya.
The aggregate purchase price is R$100 million, and the Net Debt will be deducted at closing. The price and payment conditions are R$60 million to be paid in cash at the closing date, and R$40 million to be paid in three annual installments adjusted by the Brazilian interbank interest rates $(CDI.NZ)$.
Furthermore, there is a potential for 60 additional seats. If approved by the Ministry of Education $(MEC)$ within 36 months from the closing date, it will result in an additional payment of R$1 million per granted seat, limited to 60 seats.
Afya expects an EV/EBITDA of 3.3x at full maturity and post synergies in 2030 with expected Net Revenue of R$52.4 million, of which 100% will come from medicine. With the acquisition, Afya will achieve 3,653 total approved seats.
2. Subsequent Event
-- On March 12, 2025, Afya's Board declared a cash dividend of R$129.8
million, representing 20% of the Company's consolidated net income of
R$648.9 million for the year ended December 31, 2024. This amounts to a
dividend per share (DPS) of R$1.348923, payable in U.S. dollars on April
4, 2025, to shareholders of record as of the close of business on March
26, 2025. The payment will be made at the exchange rate (PTAX) published
on March 13th, 2025 by the Brazilian Central Bank, which is R$/USD
5.8131.
3. Full Year 2024 Guidance Achievement
The Company's financial results reaffirmed the resiliency and predictability of Afya's business model.
Guidance for 2024 Actual 2024
---------------------------- ------------------------------- -------------
Net Revenue (1) R$ 3,225 mn <= <= R$ 3,325 mn R$ 3,304 mn
---------------------------- ------------------------------- -------------
Adjusted EBITDA R$ 1,375 mn <= <= R$ 1,475 mn R$ 1,456 mn
---------------------------- ------------------------------- -------------
CAPEX (2) R$ 220 mn <= <= R$ 260 mn R$ 235 mn
---------------------------- ------------------------------- -------------
(1) Excludes any acquisition that may be concluded after the issuance of the
guidance, notably, the Unidom acquisition was included in the guidance
provided.
(2) The 2024 Capex guidance does not encompass the earn-out payment in the
amount of R$49.6 million related to the 40-seat increase at Faculdades
Integradas Padrão (FIP Guanambi), and also excludes the earn-out payment
due to UNIMA Alagoas for the 80-seat increase in July 2024.
4. 2025 Guidance
The guidance for FY2025 is defined in the following table:
Guidance for 2025
---------------------------- ----------------------------------------------
Net Revenue (1) R$ 3,670 mn <= <= R$ 3,770 mn
---------------------------- ----------------------------------------------
Adjusted EBITDA R$ 1,620 mn <= <= R$ 1,720 mn
---------------------------- ----------------------------------------------
CAPEX R$ 250 mn <= <= R$ 290 mn
---------------------------- ----------------------------------------------
(1) Excludes any acquisition that may be concluded after the issuance of the
guidance, notably excluding Funic.
5. 4Q24 and 2024 Overview
Segment Information
The Company has three reportable segments as follows:
Undergrad, which provides educational services through undergraduate courses related to medical school, undergraduate health science and other ex-health undergraduate programs;
Continuing education, which provides medical education (including residency preparation programs, specialization test preparation and other medical capabilities), specialization and graduate courses in medicine, delivered through digital and in-person content; and
Medical Practice Solutions, which provides clinical decision, clinical management and doctor-patient relationships for physicians and provide access, demand and efficiency for the healthcare players.
Key Revenue Drivers -- Undergraduate Programs
Table 2: Key Revenue Drivers Twelve months period ended December 31,
-------------------------------------------
2024 2023 % Chg
--------------------------------- ---------------- --------------- --------
Undergrad Programs
--------------------------------- ---------------- --------------- --------
MEDICAL SCHOOL
--------------------------------- ---------------- --------------- --------
Approved Seats 3,593 3,163 13.6%
--------------------------------- ---------------- --------------- --------
Operating Seats (1) 3,543 3,113 13.8%
--------------------------------- ---------------- --------------- --------
Total Students (end of period) 24,255 21,446 13.1%
--------------------------------- ---------------- --------------- --------
Average Total Students 23,440 21,154 10.8%
--------------------------------- ---------------- --------------- --------
Average Total Students
(ex-Acquisitions)* 22,863 21,154 8.1%
--------------------------------- ---------------- --------------- --------
Net Revenue (Total - R$ '000) 2,487,103 2,147,448 15.8%
--------------------------------- ---------------- --------------- --------
Net Revenue (ex- Acquisitions*
- R$ '000) 2,427,630 2,147,448 13.0%
--------------------------------- ---------------- --------------- --------
Medical School Net Avg. Ticket
(ex- Acquisitions* -
R$/month) 8,849 8,460 4.6%
--------------------------------- ---------------- --------------- --------
UNDERGRADUATE HEALTH SCIENCE
--------------------------------- ---------------- --------------- --------
Total Students (end of period) 25,570 21,117 21.1%
--------------------------------- ---------------- --------------- --------
Average Total Students 25,154 21,365 17.7%
--------------------------------- ---------------- --------------- --------
Average Total Students
(ex-Acquisitions)* 24,830 21,365 16.2%
--------------------------------- ---------------- --------------- --------
Net Revenue (Total - R$ '000) 230,449 200,613 14.9%
--------------------------------- ---------------- --------------- --------
Net Revenue (ex- Acquisitions*
- R$ '000) 228,879 200,613 14.1%
--------------------------------- ---------------- --------------- --------
OTHER EX- HEALTH UNDERGRADUATE
--------------------------------- ---------------- --------------- --------
Total Students (end of period) 27,163 23,471 15.7%
--------------------------------- ---------------- --------------- --------
Average Total Students 27,542 24,336 13.2%
--------------------------------- ---------------- --------------- --------
Average Total Students
(ex-Acquisitions)* 26,878 24,336 10.4%
--------------------------------- ---------------- --------------- --------
Net Revenue (Total - R$ '000) 178,140 162,957 9.3%
--------------------------------- ---------------- --------------- --------
Net Revenue (ex- Acquisitions*
- R$ '000) 175,540 162,957 7.7%
--------------------------------- ---------------- --------------- --------
Total Net Revenue
--------------------------------- ---------------- --------------- --------
Net Revenue (Total - R$ '000) 2,895,692 2,511,018 15.3%
--------------------------------- ---------------- --------------- --------
Net Revenue (ex- Acquisitions*
- R$ '000) 2,832,049 2,511,018 12.8%
--------------------------------- ---------------- --------------- --------
*For the Twelve months period ended December 31, 2024, "2024 Ex Acquisitions"
excludes: UNIDOM (July to December, 2024; Closing of UNIDOM was in July
2024).
(1) The difference between approved and operating seats is 'Cametá'. A
campus for which we already have the license but haven't started operations.
Key Revenue Drivers -- Continuing Education
Table 3: Key Revenue Drivers Twelve months period ended December 31,
-------------------------------------------
2024 2023 % Chg
--------------------------------- -------------- -------------- -----------
Continuing Education (1)
--------------------------------- -------------- -------------- -----------
Total Students (end of period)
--------------------------------- -------------- -------------- -----------
Residency Journey - Business
to Physicians B2P (2) 16,381 12,170 34.6%
--------------------------------- -------------- -------------- -----------
Graduate Journey - Business to
Physicians B2P 8,527 7,722 10.4%
--------------------------------- -------------- -------------- -----------
Other Courses - B2P and
Business to Business
Offerings 25,613 27,188 -5.8%
--------------------------------- -------------- -------------- -----------
Total Students (end of period) 50,521 47,080 7.3%
--------------------------------- -------------- -------------- -----------
Net Revenue (R$ '000)
--------------------------------- -------------- -------------- -----------
Business to Physicians - B2P 237,379 215,504 10.2%
--------------------------------- -------------- -------------- -----------
Business to Business - B2B 18,060 20,325 -11.1% --------------------------------- -------------- -------------- ----------- Total Net Revenue 255,438 235,830 8.3% --------------------------------- -------------- -------------- ----------- (1) The figure above does not contemplate intercompany transactions (2) 'Content & Technology for Medical Education' which had been reported in 'Digital Services' table, has been reclassified to 'Continuing Education'
Key Revenue -- Medical Practice Solutions
Table 4: Key Revenue Drivers Twelve months period ended December 31,
-------------------------------------------
2024 2023 % Chg
--------------------------------- ---------------- -------------- ---------
Medical Practice Solutions (1)
--------------------------------- ---------------- -------------- ---------
Active Payers (end of period)
--------------------------------- ---------------- -------------- ---------
Clinical Decision 161,283 153,541 5.0%
--------------------------------- ---------------- -------------- ---------
Clinical Management 33,735 30,061 12.2%
--------------------------------- ---------------- -------------- ---------
Total Active Payers (end of
period) 195,018 183,602 6.2%
--------------------------------- ---------------- -------------- ---------
Monthly Active Users (MaU)
--------------------------------- ---------------- -------------- ---------
Total Monthly Active Users (MaU)
- Digital Services (2) 238,343 247,702 -3.8%
--------------------------------- ---------------- -------------- ---------
Net Revenue (R$ '000)
--------------------------------- ---------------- -------------- ---------
Business to Physicians - B2P 135,278 119,847 12.9%
--------------------------------- ---------------- -------------- ---------
Business to Business - B2B 26,509 20,435 29.7%
--------------------------------- ---------------- -------------- ---------
Total Net Revenue 161,787 140,282 15.3%
--------------------------------- ---------------- -------------- ---------
(1) The figure above does not contemplate intercompany transactions
(2) 'Content & Technology for Medical Education' is now being reported in
Continuing Education table
Key Operational Drivers -- Users Positively Impacted by Afya
The Users Positively Impacted by Afya represents the total number of medical students from the Undergrad segment, students from the Continuing Education and users from Medical Practice Solutions. For the fourth quarter of 2024, Afya's ecosystem reached 313,119 users.
Table 5: Key Revenue Drivers Twelve months period ended December 31,
-------------------------------------------
2024 2023 % Chg
--------------------------------- --------------- -------------- ----------
Users Positively Impacted by Afya
(1)
--------------------------------- --------------- -------------- ----------
Undergrad (Total Medical
School Students - End of
Period) 24,255 21,446 13.1%
--------------------------------- --------------- -------------- ----------
Continuing Education (Total
Students - End of Period) 50,521 47,080 7.3%
--------------------------------- --------------- -------------- ----------
Medical Practice Solutions
(Monthly Active Users) 238,343 247,702 -3.8%
--------------------------------- --------------- -------------- ----------
Ecosystem Outreach 313,119 316,228 -1.0%
--------------------------------- --------------- -------------- ----------
(1) Ecosystem outreach does not contemplate intercompany figures. Note that
there may be overlap in student numbers within the data.
Seasonality of Operations
Undergrad tuition revenues are related to the intake process, and monthly tuition fees charged to students and do not significantly fluctuate during each semester.
Continuing education revenues are mostly related to: (i) monthly intakes and tuition fees on medical education, which do not have a considerable concentration in any period; (ii) Residence journey product revenues, derived from e-books transferred at a point of time, which are concentrated at in the first and last quarter of the year due to the enrollments.
Medical Practice Solutions are comprised mainly of Afya Whitebook and Afya iClinic revenues, which do not have significant fluctuations regarding seasonality.
Net Revenue
Net Revenue for the fourth quarter of 2024 was R$849.0 million, an increase of 16.3% over the same period in the prior year. Excluding acquisitions, Net Revenue in the fourth quarter increased 12.0% YoY to R$817.8 million. For the twelve-month period ending December 31, 2024, Net Revenue was R$3,304.3 million, reflecting a 14.9% increase over last year. Excluding acquisitions, Net Revenue in the twelve-month period increased by 12.7% YoY to R$3,240.7 million.
The yearly revenue increase was mainly due to higher tickets in medicine courses, the maturation of medical school seats, the addition of 40 seats at Guanambi and 80 seats at UNIMA, the reconsideration of 10 seats at Unigranrio (Rio de Janeiro), the acquisition of Unidom, and the advancement of Medical Practice Solutions and Continuing Education segments. It is worth mentioning that as seen in table two, for undergrad programs, the organic growth came from medical courses growing 13.0% YoY, and for health science increased organically 14.1% YoY.
Table 6: Revenue & Revenue Mix
(in thousands
of R$) Three months period ended December 31, Twelve months period ended December 31,
-------------- ---------------------------------------------------- ---------------------------------------------------------
2024 Ex % Chg Ex 2024 Ex % Chg Ex
2024 Acquisitions* 2023 % Chg Acquisitions 2024 Acquisitions* 2023 % Chg Acquisitions
-------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ------ ------------
Net Revenue
Mix
-------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ------ ------------
Undergrad 739,797 708,575 627,929 17.8% 12.8% 2,895,692 2,832,049 2,511,018 15.3% 12.8%
-------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ------ ------------
Continuing
Education 67,707 67,707 65,820 2.9% 2.9% 255,438 255,438 235,830 8.3% 8.3%
-------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ------ ------------
Medical
Practice
Solutions 44,497 44,497 37,993 17.1% 17.1% 161,787 161,787 140,282 15.3% 15.3%
-------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ------ ------------
Inter-segment
transactions (2,986) (2,986) (1,876) 59.2% 59.2% (8,588) (8,588) (11,217) -23.4% -23.4%
-------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ------ ------------
Total Reported
Net Revenue 849,015 817,793 729,866 16.3% 12.0% 3,304,329 3,240,686 2,875,913 14.9% 12.7%
-------------- ------- ------------- ------- ----- ------------ --------- ------------- --------- ------ ------------
*For the Three months period ended December 31, 2024, "2024 Ex Acquisitions" excludes: UNIDOM (October to December, 2024;
Closing of UNIDOM was in July 2024).
*For the Twelve months period ended December 31, 2024, "2024 Ex Acquisitions" excludes: UNIDOM (July to December, 2024; Closing
of UNIDOM was in July 2024).
Adjusted EBITDA
Adjusted EBITDA for the fourth quarter of 2024, increased by 26.7% to R$366.0 million, up from R$288.9 million in the same period of the prior year, with the Adjusted EBITDA Margin rising by 350 basis points to 43.1%. For the twelve-month period ending December 31, 2024, Adjusted EBITDA was R$1,455.6 million, an increase of 24.9% over the same period of the prior year, accompanied by an Adjusted EBITDA Margin increase of 360 basis points in the same period.
The increase in Adjusted EBITDA Margin was mainly driven by: (a) higher gross margin in the Undergrad segment; (b) the full integration of UNIMA and FCM Jaboatão, concluded in November 2023; (c) the continued ramp-up of the four Mais Médicos campuses launched in 3Q22; (d) restructuring initiatives within Continuing Education and Medical Practice Solutions; and (e) improved cost efficiency in Selling, General, and Administrative expenses.
Table 7: Reconciliation between Adjusted EBITDA and Net Income
(in thousands of Three months period ended Twelve months period ended
R$) December 31, December 31,
-------------------------- --------------------------------
2024 2023 % Chg 2024 2023 % Chg
----------------- ------- ------- -------- --------- --------- ----------
Net income 154,279 101,886 51.4% 648,920 405,416 60.1%
----------------- ------- ------- -------- --------- --------- ----------
Net financial
result 104,698 79,661 31.4% 347,459 346,974 0.1%
----------------- ------- ------- -------- --------- --------- ----------
Income taxes
expense 1,083 (9,130) n.a. 27,471 24,166 13.7%
----------------- ------- ------- -------- --------- --------- ----------
Depreciation and
amortization 84,206 77,339 8.9% 333,341 289,511 15.1%
----------------- ------- ------- -------- --------- --------- ----------
Interest received
(1) 8,438 7,690 9.7% 43,417 33,450 29.8%
----------------- ------- ------- -------- --------- --------- ----------
Income share
associate (2,011) (1,824) 10.3% (11,737) (9,495) 23.6%
----------------- ------- ------- -------- --------- --------- ----------
Share-based
compensation 6,125 11,453 -46.5% 32,424 31,535 2.8%
----------------- ------- ------- -------- --------- --------- ----------
Non-recurring
expenses: 9,196 21,837 -57.9% 34,347 44,121 -22.2%
----------------- ------- ------- -------- --------- --------- ----------
- Integration
of new
companies
(2) 7,970 8,169 -2.4% 25,692 28,120 -8.6%
----------------- ------- ------- -------- --------- --------- ----------
- M&A advisory
and due
diligence
(3) 772 239 223.0% 3,575 12,616 -71.7%
----------------- ------- ------- -------- --------- --------- ----------
- Expansion
projects (4) 454 1,873 -75.8% 3,022 4,409 -31.5%
----------------- ------- ------- -------- --------- --------- ----------
-
Restructuring
expenses (5) - 6,291 n.a. 2,058 11,964 -82.8%
----------------- ------- ------- -------- --------- --------- ----------
- Mandatory
Discounts in
Tuition Fees
(6) - 5,265 n.a. - 3,824 n.a.
----------------- ------- ------- -------- --------- --------- ----------
- Gain on tax
amnesty (7) - - n.a. - (16,812) n.a.
----------------- ------- ------- -------- --------- --------- ----------
Adjusted EBITDA 366,014 288,912 26.7% 1,455,642 1,165,678 24.9%
Adjusted EBITDA
Margin 43.1% 39.6% 350 bps 44.1% 40.5% 360 bps
----------------- ------- ------- -------- --------- --------- ----------
(1) Represents the interest received on late payments of monthly tuition fees.
(2) Consists of expenses related to the integration of newly acquired
companies.
(3) Consists of expenses related to professional and consultant fees in
connection with due diligence services for our M&A transactions.
(4) Consists of expenses related to professional and consultant fees in
connection with the opening of new campuses.
(5) Consists of expenses related to the employee redundancies in connection
with the organizational restructuring of our acquired companies.
(6) Consists of mandatory discounts in tuition fees granted by state decrees,
individual/collective legal proceedings and public civil proceedings due to
COVID 19 on site classes restriction and excludes any recovery of these
discounts that were invoiced based on the Supreme Court decision.
(7) On August 10, 2023, Unigranrio entered into a tax amnesty program on
interest and penalties to settle a tax proceeding in respect to ISS (city tax
on services) with the municipality of Rio de Janeiro, which result in a payment
of R$14,819 to settle the claim. The selling shareholders of Unigranrio agreed
to pay R$5,438 regarding this matter. The Company had a provision of R$53,302
and an indemnification asset from the selling shareholders of R$20,000 (in
light of the indemnification clauses as defined at acquisition of Unigranrio),
in respect to such tax proceeding. The difference between the provision,
indemnification asset and the actual paid amount was recorded as Other income
(expenses), net on the consolidated statement of income and comprehensive
income.
Adjusted Net Income
Net Income for the fourth quarter of 2024, totaled R$154.3 million, reflecting a 51.4% increase YoY. Adjusted Net Income reached R$193.6 million, up 17.7% from the same period in the prior year. For the twelve-month period, Afya achieved a Net Income of R$648.9 million, marking a 60.1% increase compared to the same period in 2023, while Adjusted Net Income rose 38.8% to R$820.3 million. This growth was primarily driven by: (a) improved operational performance, and (b) a lower effective tax rate compared to the previous year.
Adjusted EPS reached R$8.91 per share for the full-year ended December 31, 2024, an increase of 39.9% YoY, supported by higher Net Income and a disciplined capital allocation strategy.
Table 8: Adjusted
Net Income
----------------- ------- -------- -------- -------- -------- --------
(in thousands of Three months period ended Twelve months period ended
R$) December 31, December 31,
--------------------------- ----------------------------
2024 2023 % Chg 2024 2023 % Chg
----------------- ------- -------- -------- -------- -------- --------
Net income 154,279 101,886 51.4% 648,920 405,416 60.1%
----------------- ------- -------- -------- -------- -------- --------
Amortization of
Intangible
Assets (1) 24,007 29,273 -18.0% 104,599 110,052 -5.0%
----------------- ------- -------- -------- -------- -------- --------
Share-based
compensation 6,125 11,453 -46.5% 32,424 31,535 2.8%
----------------- ------- -------- -------- -------- -------- --------
Non-recurring
expenses: 9,196 21,837 -57.9% 34,347 44,121 -22.2%
----------------- ------- -------- -------- -------- -------- --------
- Integration
of new
companies
(2) 7,970 8,169 -2.4% 25,692 28,120 -8.6%
----------------- ------- -------- -------- -------- -------- --------
- M&A advisory
and due
diligence
(3) 772 239 223.0% 3,575 12,616 -71.7%
----------------- ------- -------- -------- -------- -------- --------
- Expansion
projects (4) 454 1,873 -75.8% 3,022 4,409 -31.5%
----------------- ------- -------- -------- -------- -------- --------
-
Restructuring
expenses (5) - 6,291 n.a. 2,058 11,964 -82.8%
----------------- ------- -------- -------- -------- -------- --------
- Mandatory
Discounts in
Tuition Fees
(6) - 5,265 n.a. - 3,824 n.a.
----------------- ------- -------- -------- -------- -------- --------
- Gain on tax
amnesty (7) - - n.a. - (16,812) n.a.
----------------- ------- -------- -------- -------- -------- --------
Adjusted Net
Income 193,607 164,449 17.7% 820,290 591,124 38.8%
----------------- ------- -------- -------- -------- -------- --------
Basic earnings
per share - in
R$ (8) 1.66 1.09 52.4% 7.01 4.30 62.9%
----------------- ------- -------- -------- -------- -------- --------
Adjusted earnings
per share - in
R$ (9) 2.10 1.79 17.4% 8.91 6.37 39.9%
----------------- ------- -------- -------- -------- -------- --------
(1) Consists of amortization of intangible assets identified in business
combinations.
(2) Consists of expenses related to the integration of newly acquired
companies.
(3) Consists of expenses related to professional and consultant fees in
connection with due diligence services for our M&A transactions.
(4) Consists of expenses related to professional and consultant fees in
connection with the opening of new campuses.
(5) Consists of expenses related to the employee redundancies in connection
with the organizational restructuring of our acquired companies.
(6) Consists of mandatory discounts in tuition fees granted by state
decrees, individual/collective legal proceedings and public civil
proceedings due to COVID 19 on site classes restriction and excludes any
recovery of these discounts that were invoiced based on the Supreme Court
decision.
(7) On August 10, 2023, Unigranrio entered into a tax amnesty program on
interest and penalties to settle a tax proceeding in respect to ISS (city
tax on services) with the municipality of Rio de Janeiro, which result in a
payment of R$14,819 to settle the claim. The selling shareholders of
Unigranrio agreed to pay R$5,438 regarding this matter. The Company had a
provision of R$53,302 and an indemnification asset from the selling
shareholders of R$20,000 (in light of the indemnification clauses as defined
at acquisition of Unigranrio), in respect to such tax proceeding. The
difference between the provision, indemnification asset and the actual paid
amount was recorded as Other income (expenses), net on the consolidated
statement of income and comprehensive income.
(8) Basic earnings per share: Net Income/Weighted average number of
outstanding shares.
(9) Adjusted earnings per share: Adjusted Net Income attributable to equity
holders of the Parent/Weighted average number of outstanding shares.
Cash and Debt Position
As of December 31, 2024, Afya's Cash and Cash Equivalents totaled R$911.0 million, reflecting a 64.7% increase compared to December 31, 2023. Net Debt, excluding IFRS 16 impacts, reached R$1,814.9 million, in line with the same period of the previous year, despite the R$660.0 million acquisition of Unidom and the R$157.2 million earn-out payment regarding the additional seats in Guanambi and UNIMA.
For the twelve-month period ended December 31, 2024, Afya generated R$1,453.2 million in Cash Flow from Operating Activities, up from R$1,088.8 million in the same period of the previous year, an increase of 33.5% YoY, boosted by solid operational results. The Operating Cash Conversion Ratio reached 102.2%.
Table 9: Operating Cash
Conversion Ratio Reconciliation Twelve months period ended December 31,
-------------------------------------------
(in thousands of R$) Considering the adoption of IFRS 16
-------------------------------------------
2024 2023 % Chg
--------------------------------- --------------- -------------- ----------
(a) Net cash flows from operating
activities 1,432,659 1,043,623 37.3%
--------------------------------- --------------- -------------- ----------
(b) Income taxes paid 20,520 45,144 -54.5%
--------------------------------- --------------- -------------- ----------
(c) = (a) + (b) Cash flow from
operating activities 1,453,179 1,088,767 33.5%
--------------------------------- --------------- -------------- ----------
(d) Adjusted EBITDA 1,455,642 1,165,678 24.9%
--------------------------------- --------------- -------------- ----------
(e) Non-recurring expenses: 34,347 44,121 -22.2%
--------------------------------- --------------- -------------- ----------
- Integration of new companies
(1) 25,692 28,120 -8.6%
--------------------------------- --------------- -------------- ----------
- M&A advisory and due
diligence (2) 3,575 12,616 -71.7%
--------------------------------- --------------- -------------- ----------
- Expansion projects (3) 3,022 4,409 -31.5%
--------------------------------- --------------- -------------- ----------
- Restructuring Expenses (4) 2,058 11,964 -82.8%
--------------------------------- --------------- -------------- ----------
- Mandatory Discounts in
Tuition Fees (5) - 3,824 n.a.
--------------------------------- --------------- -------------- ----------
- Gain on tax amnesty (6) - (16,812) n.a.
--------------------------------- --------------- -------------- ----------
(f) = (d) - (e) Adjusted EBITDA
ex- non-recurring expenses 1,421,295 1,121,557 26.7%
--------------------------------- --------------- -------------- ----------
(g) = (c) / (f) Operating cash
conversion ratio 102.2% 97.1% 510 bps
--------------------------------- --------------- -------------- ----------
(1) Consists of expenses related to the integration of newly acquired
companies.
(2) Consists of expenses related to professional and consultant fees in
connection with due diligence services for M&A transactions.
(3) Consists of expenses related to professional and consultant fees in
connection with the opening of new campuses.
(4) Consists of expenses related to the employee redundancies in connection
with the organizational restructuring of acquired companies.
(5) Consists of mandatory discounts in tuition fees granted by state decrees,
individual/collective legal proceedings and public civil proceedings due to
COVID 19 on site classes restriction and excludes any recovery of these
discounts that were invoiced based on the Supreme Court decision.
(6) On August 10, 2023, Unigranrio entered into a tax amnesty program on
interest and penalties to settle a tax proceeding in respect to ISS (city tax
on services) with the municipality of Rio de Janeiro, which result in a
payment of R$14,819 to settle the claim. The selling shareholders of
Unigranrio agreed to pay R$5,438 regarding this matter. The Company had a
provision of R$53,302 and an indemnification asset from the selling
shareholders of R$20,000 (in light of the indemnification clauses as defined
at acquisition of Unigranrio), in respect to such tax proceeding. The
difference between the provision, indemnification asset and the actual paid
amount was recorded as Other income (expenses), net on the consolidated
statement of income and comprehensive income.
The table below provides additional details on the cost of debt for 2024, considering loans and financing and accounts payable to selling shareholders. Afya's capital structure remains solid, with a conservative leveraging position and a low cost of debt. Afya's Net Debt (excluding the effect of IFRS16) divided by the 2024 Adjusted EBITDA is 1.2x.
The holders of the convertible (SoftBank) shall have the right to redeem all or any of the outstanding convertible for cash, the Company's common shares or a combination thereof (at the Company's election, subject to certain conditions) with a 5% premium on or after the five-year anniversary of the original issuance date (April ,2026). The 5% premium is deemed as part of the effective interest rate and recognized on a pro-rata basis to date of the five-year anniversary of the original issuance date. The Company recognized a premium provision of R$17.0 million in the 2024 fiscal year.
Table 10: Gross Debt and Average Cost of Debt
-------------------------------------------------------------- ----- -------
(in millions of For the closing of the twelve months period ended in
R$) December 31,
------------------------------------------------------------
Cost of Debt
----- ----- ----- ------- ------------------------------
Duration
Gross Debt (Years) Per year %CDI(2)
------------ -------------- -------------- --------------
2024 2023 2024 2023 2024 2023 2024 2023
---------------- ----- ----- ----- ------- ----- ------- ----- -------
Loans and
financing:
Softbank 845 826 1.4 2.4 7.5% 6.5% 71% 50%
---------------- ----- ----- ----- ------- ----- ------- ----- -------
Loans and
financing:
Debentures 527 529 2.6 3.6 12.0% 15.0% 110% 114%
---------------- ----- ----- ----- ------- ----- ------- ----- -------
Loans and
financing:
Others 318 445 0.8 1.3 12.7% 15.0% 117% 114%
---------------- ----- ----- ----- ------- ----- ------- ----- -------
Loans and
financing: IFC 505 - 3.8 - 11.3% - 105% -
---------------- ----- ----- ----- ------- ----- ------- ----- -------
Accounts payable
to selling
shareholders 531 567 3.3 0.8 10.8% 13.1% 100% 100%
---------------- ----- ----- ----- ------- ----- ------- ----- -------
Total(1)|
Average 2,726 2,368 2.4 2.1 10.2% 11.8% 95% 89%
---------------- ----- ----- ----- ------- ----- ------- ----- -------
(1) Total amount refers only to the "Gross Debt" columns
(2) Based on the annualized Interbank Certificates of Deposit ("CDI") rate for
the period as a reference: FY24: 12.15% p.y. and for FY23: 11.65% p.y.
Table 11: Cash and Debt Position
--------------------------------------------- --------- --------- ------
(in thousands of R$)
FY2024 FY2023 % Chg
--------------------------------------------- --------- --------- ------
(+) Cash and Cash Equivalents 911,015 553,030 64.7%
--------------------------------------------- --------- --------- ------
Cash and Bank Deposits 6,078 11,746 -48.3%
--------------------------------------------- --------- --------- ------
Cash Equivalents 904,937 541,284 67.2%
--------------------------------------------- --------- --------- ------
(-) Loans and Financing 2,195,161 1,800,775 21.9%
--------------------------------------------- --------- --------- ------
Current 363,554 179,252 102.8%
--------------------------------------------- --------- --------- ------
Non-Current 1,831,607 1,621,523 13.0%
--------------------------------------------- --------- --------- ------
(-) Accounts Payable to Selling Shareholders 530,772 566,867 -6.4%
--------------------------------------------- --------- --------- ------
Current 185,318 353,998 -47.6%
--------------------------------------------- --------- --------- ------
Non-Current 345,454 212,869 62.3%
--------------------------------------------- --------- --------- ------
(-) Other Short and Long Term Obligations - - n.a.
--------------------------------------------- --------- --------- ------
(=) Net Debt (Cash) excluding IFRS 16 1,814,918 1,814,612 0.0%
--------------------------------------------- --------- --------- ------
(-) Lease Liabilities 978,336 874,569 11.9% --------------------------------------------- --------- --------- ------ Current 45,580 36,898 23.5% --------------------------------------------- --------- --------- ------ Non-Current 932,756 837,671 11.4% --------------------------------------------- --------- --------- ------ Net Debt (Cash) with IFRS 16 2,793,254 2,689,181 3.9% --------------------------------------------- --------- --------- ------
CAPEX
Capital expenditures consist of the purchase of property and equipment and intangible assets, including expenditures mainly related to the expansion and maintenance of Afya's campuses and headquarters, leasehold improvements, and the development of new solutions in the Medical Practice Solutions and content in the Continuing Education.
For the twelve-month period ending December 31, 2024, CAPEX was R$392.6 million. Excluding the one-off effect in the first quarter of R$49.6 million regarding the earn-out of Guanambi, due to the expansion of 40 seats in January 2024, and the earn-out of UNIMA of R$107.6 million, due to the expansion of 80 seats in July 2024 the CAPEX/Net Revenue ratio would be 7.1%.
Table 12: CAPEX
----------------------------------------------------------------------------
(in thousands of R$) For the Twelve months period ended December 31,
---------------------------------------------------
2024 2023 % Chg
----------------- ---------------- --------------
CAPEX 392,615 218,428 79.7%
----------------------- ----------------- ---------------- --------------
Property and equipment 136,924 118,435 15.6%
----------------------- ----------------- ---------------- --------------
Intanglibe assets 255,691 99,993 155.7%
----------------------- ----------------- ---------------- --------------
- Licenses 157,227 - n.a.
----------------------- ----------------- ---------------- --------------
- Others 98,464 99,993 -1.5%
----------------------- ----------------- ---------------- --------------
ESG Metrics
ESG commitment is an important part of Afya's strategy and permeates the Company's core values. Afya has been advancing year after year on its core pillars and, since 2021, ESG metrics have been disclosed in the Company's quarterly financial results in three key metrics, Governance and Employee Management, Environmental and Social.
The 2023 Sustainability Report can be found at: https://ir.afya.com.br/annual-report/
Table 13: ESG Metrics (1, 2 & 3) 4Q24 4Q23 2024 2023
-------------------------------- --------- --------- ---------- ----------
Governance and
# GRI Employee Management
1 405-1 Number of employees 9,717 9,680 9,717 9,680
Percentage of female
2 405-1 employees 59% 58% 59% 58%
Percentage of female
employees in the
3 405-1 board of directors 30% 36% 30% 36%
Percentage of
independent member
in the board of
4 102-24 directors 40% 36% 40% 36%
------ -------------------- --------- --------- ---------- ----------
Environmental
Total renewable
energy generated by
own photovoltaic
5 plants (MWh) 1,741,123 1,775,220 6,329,796 4,510,637
Total energy
6 302-1 consumed (MWh) 6,583,497 6,845,599 24,260,662 24,036,608
% of renewable
energy consumed from
7 302-1 own generation 22.3% 19.3% 23.2% 16.0%
% of energy consumed
8 302-1 from the power grid 34.1% 50.2% 34.8% 60.3%
9 302-1 % of energy consumed 43.6% 30.5% 42.0% 23.7%
from the free
market
Social
10 413-1 Number of free 248,309 154,976 846,264 586,611
clinical
consultations
offered by Afya
11 Number of physicians 22,867 20,197 22,867 20,197
graduated in Afya's
campuses
12 201-4 Number of students 12,342 10,584 12,342 10,584
with financing and
scholarship programs
(FIES and PROUNI)
13 % students with 16.0% 16.0% 16.0% 16.0%
scholarships over
total undergraduate
students
14 413-1 Hospital, clinics 614 649 614 649
and city halls
partnerships
(1) Some factors can influence in the adequate proportionality analysis of
data over the years, such as: climate changes, COVID-19 pandemic effects,
seasonalities, number of employees, number of students, number of active
units, among others.
(2) Starting in 2Q22, previously disclosed social data were updated to
consider: (a) the number of graduated physicians considering all units after
its closing, and (b) partnerships related only to medical schools.
(3) The number of students with financing and scholarship programs (FIES and
PROUNI) in 2023 excludes students from the Unima and FCM Jaboatão
acquisition, and for 3Q24, also excludes those from the UNIDOM acquisition.
6. Conference Call and Webcast Information
When: March 13, 2025 at 5:00 p.m. EDT.
Who: Mr. Virgilio Gibbon, Chief Executive Officer
Mr. Luis André Blanco, Chief Financial Officer
Ms. Renata Costa Couto, IR Director
Webcast: https://afya.zoom.us/j/98748269632
OR
Dial-in:
Brazil: +55 11 4700 9668 or +55 21 3958 7888 or +55 11 4632 2236 or +55 11 4632 2237 or +55 11 4680 6788
United States: +1 929 205 6099 or +1 253 205 0468 or +1 253 215 8782 or +1 301 715 8592 or +1 305 224 1968 or +1 309 205 3325 or +1 312 626 6799 or +1 346 248 7799 or +1 360 209 5623 or +1 386 347 5053 or +1 507 473 4847 or +1 564 217 2000 or +1 646 931 3860 or +1 669 444 9171 or +1 669 900 6833 or +1 689 278 1000 or +1 719 359 4580
Webinar ID: 987 4826 9632
Other Numbers: https://afya.zoom.us/u/aekRMRWgAp
7. About Afya Limited (Nasdaq: AFYA; B3: A2FY34)
Afya is a leading medical education group in Brazil based on the number of medical school seats, delivering an end-to-end physician-centric ecosystem that serves and empowers students and physicians to transform their ambitions into rewarding lifelong experiences from the moment they join us as medical students through their medical residency preparation, graduation program, continuing medical education activities and offering medical practice solutions to help doctors enhance their healthcare services through their whole career. For more information, please visit www.afya.com.br.
8. Forward -- Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward-looking, including risks and uncertainties related to statements about our competition; our ability to attract, upsell and retain students; our capacity to increase tuition prices; our ability to anticipate and meet the evolving needs of students and teachers; our capacity to source and successfully integrate acquisitions; as well as general market, political, economic, and business conditions. Additionally, these statements include financial targets such as revenue, share count and IFRS and non-IFRS financial measures including gross margin, operating margin, net income (loss) per diluted share, and free cash flow. These statements are not guarantees of future performance and undue reliance should not be placed on them.
The Company assumes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances occurring after its publication, nor to incorporate new information or the occurrence of unanticipated events, except as required by law. The achievement or success of the matters covered by such forward-looking statements involves known and unknown risks, uncertainties and assumptions. If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from those expressed or implied by the forward-looking statements we make.
Readers should not rely upon forward-looking statements as predictions of future events. Forward-looking statements represent management's beliefs and assumptions only as of the date they are made. Further information on these and other factors that could affect the Company's financial results is included in filings made with the United States Securities and Exchange Commission $(SEC.UK)$ from time to time, including the section titled "Risk Factors" in the most recent annual report on Form 20-F. These documents are available in the SEC Filings section of the investor relations section of our website at: https://ir.afya.com.br/.
9. Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements, which are prepared and presented in accordance with IFRS accounting standards as issued by the International Accounting Standards Board--IASB, Afya presents Adjusted EBITDA, Operating Cash Conversion Ratio, Adjusted Net Income and Adjusted EPS, which are non-GAAP financial measures, for the convenience of investors. A non-GAAP financial measure is generally defined as one that intends to measure financial performance but excludes or includes amounts that would not be equally adjusted in the most comparable GAAP measure.
Afya calculates Adjusted EBITDA as net income plus/minus net financial result, plus income taxes expense, plus depreciation and amortization, plus interest received on late payments of monthly tuition fees, plus share-based compensation, plus/minus income share associate, plus/minus non-recurring expenses/income. Operating Cash Conversion Ratio is calculated as the Cash flow from Operating Activities plus income taxes paid, minus/plus non-recurring expenses/income divided by Adjusted EBITDA. The calculation of Adjusted Net Income is the Net Income plus amortization of customer relationships and trademark, plus share-based compensation, plus/minus non-recurring expenses/income. The calculation of Adjusted EPS is the Adjusted Net Income minus the non-controlling interests divided by the Weighted average number of outstanding shares.
The non-GAAP supplemental financial measures are provided with the intend to help investors in assessing the overall performance of Afya's business regarding its core operations, cash generation and profitability. The non-GAAP financial measures described in this release are not substitutes for the IFRS measures. In addition, the calculations of Adjusted EBITDA, Operating Cash Conversion Ratio, Adjusted Net Income and Adjusted EPS are not standardized financial measures and may differ from the calculations used by other companies, including competitors in the education services industry, and therefore, Afya's measures may not be comparable to those of other companies.
10. Financial Tables
Consolidated statements of income and comprehensive income
For the years ended December 31, 2024, 2023 and 2022
(In thousands of Brazilian reais, except for earnings per share information)
2024 2023 2022
----------- ----------- ---------
Revenue 3,304,329 2,875,913 2,329,057
Cost of services (1,215,603) (1,109,813) (859,552)
----------- ----------- ---------
Gross profit 2,088,726 1,766,100 1,469,505
----------- ----------- ---------
Selling, general and administrative
expenses (1,069,321) (1,014,684) (798,153)
Other income (expenses), net (7,292) 15,645 (7,252)
Operating income 1,012,113 767,061 664,100
----------- ----------- ---------
Finance income 111,283 110,642 102,042
Finance expenses (458,742) (457,616) (349,893)
----------- ----------- ---------
Net finance result (347,459) (346,974) (247,851)
----------- ----------- ---------
Share of income of associate 11,737 9,495 12,184
Income before income taxes 676,391 429,582 428,433
----------- ----------- ---------
Income taxes expenses (27,471) (24,166) (35,677)
Net income 648,920 405,416 392,756
----------- ----------- ---------
Other comprehensive income - - -
----------- ----------- ---------
Total comprehensive income 648,920 405,416 392,756
=========== =========== =========
Income attributable to:
Equity holders of the parent 631,510 386,324 373,569
Non-controlling interests 17,410 19,092 19,187
----------- ----------- ---------
648,920 405,416 392,756
=========== =========== =========
Basic earnings per common share 7.01 4.30 4.14
Diluted earnings per common share 6.93 4.27 4.12
Consolidated statements of financial position
As of December 31, 2024 and 2023
(In thousands of Brazilian reais)
2024 2023
--------- ---------
Assets
Current assets
Cash and cash equivalents 911,015 553,030
Trade receivables 595,898 546,438
Recoverable taxes 25,726 43,751
Other assets 57,145 60,287
--------- ---------
Total current assets 1,589,784 1,203,506
--------- ---------
Non-current assets
Trade receivables 35,948 39,485
Other assets 115,875 117,346
Investment in associate 54,442 51,834
Property and equipment 658,482 608,685
Right-of-use assets 842,219 767,609
Intangible assets 5,532,789 4,796,016
--------- ---------
Total non-current assets 7,239,755 6,380,975
--------- ---------
Total assets 8,829,539 7,584,481
--------- ---------
Liabilities
Current liabilities
Trade payables 128,080 108,222
Loans and financing 363,554 179,252
Lease liabilities 45,580 36,898
Accounts payable to selling shareholders 185,318 353,998
Advances from customers 161,048 153,485
Labor and social obligations 208,076 192,294
Taxes payable 33,456 27,765
Income taxes payable 4,247 3,880
Other liabilities 10,836 2,773
--------- ---------
Total current liabilities 1,140,195 1,058,567
--------- ---------
Non-current liabilities
Loans and financing 1,831,607 1,621,523
Lease liabilities 932,756 837,671
Accounts payable to selling shareholders 345,454 212,869
Taxes payable 112,681 88,198
Provision for legal proceedings 113,521 104,361
Other liabilities 42,742 18,280
--------- ---------
Total non-current liabilities 3,378,761 2,882,902
--------- ---------
Total liabilities 4,518,956 3,941,469
--------- ---------
Equity
Share capital 17 17
Additional paid-in capital 2,344,521 2,365,200
Treasury shares (273,955) (299,150)
Share-based compensation reserve 187,497 155,073
Retained earnings 2,011,875 1,380,365
--------- ---------
Equity attributable to equity holders of the parent 4,269,955 3,601,505
--------- ---------
Non-controlling interests 40,628 41,507
--------- ---------
Total equity 4,310,583 3,643,012
--------- ---------
Total liabilities and equity 8,829,539 7,584,481
========= =========
Consolidated statements of cash flows
For the years ended December 31, 2024, 2023 and 2022
(In thousands of Brazilian reais)
2024 2023 2022
----------- ----------- ---------
Operating activities
Income before income taxes 676,391 429,582 428,433
Adjustments to reconcile income
before income taxes
Depreciation and amortization 333,341 289,511 206,220
Write-off of property and
equipment 2,539 1,910 1,697
Write-off of intangible assets 244 413 25
Allowance for expected credit
losses 60,894 74,552 42,708
Share-based compensation 32,424 31,535 31,274
Net foreign exchange differences 7,027 681 852
Accrued interest 254,386 285,447 200,081
Accrued interest on lease
liabilities 111,966 100,849 88,571
Share of income of associate (11,737) (9,495) (12,184)
Provision (reversal) for legal
proceedings 5,068 (56,825) (766)
Changes in assets and liabilities
Trade receivables (97,449) (131,336) (129,165)
Recoverable taxes 18,107 (15,353) (2,230)
Other assets 11,220 88,427 (1,411)
Trade payables 18,126 24,500 9,975
Taxes payable (14,798) 3,278 (3,915)
Advances from customers 6,329 (17,892) 8,387
Labor and social obligations 8,414 31,525 21,247
Other liabilities 30,687 (42,542) (12,811)
----------- ----------- ---------
1,453,179 1,088,767 876,988
----------- ----------- ---------
Income taxes paid (20,520) (45,144) (33,089)
----------- ----------- ---------
Net cash flows from operating activities 1,432,659 1,043,623 843,899
----------- ----------- ---------
Investing activities
Acquisition of property and equipment (136,924) (118,435) (168,132)
Acquisition of intangibles assets (255,691) (126,993) (128,892)
Dividends received 7,501 9,900 6,754
Acquisition of non-controlling
interest - (21,000) -
Acquisition of subsidiaries, net of
cash acquired (627,568) (815,005) (277,649)
Payments of interest from acquisition
of subsidiaries and intangibles (78,931) (71,518) (23,550)
----------- ----------- ---------
Net cash flows used in investing
activities (1,091,613) (1,143,051) (591,469)
----------- ----------- ---------
Financing activities
Payments of principal of loans and
financing (128,696) (112,630) (1,791)
Payments of interest of loans and
financing (177,192) (175,889) (116,587)
Proceeds from loans and financing 491,593 5,288 496,885
Payments of principal of lease
liabilities (41,221) (31,473) (28,511)
Payments of interest of lease
liabilities (111,605) (103,911) (85,001)
Treasury shares - (12,369) (152,317)
Proceeds from exercise of stock
options 9,376 9,791 -
Dividends paid to non-controlling
shareholders (18,289) (18,750) (19,736)
----------- ----------- ---------
Net cash flows generated (used) in
financing activities 23,966 (439,943) 92,942
----------- ----------- ---------
Net foreign exchange differences (7,027) (681) (852)
----------- ----------- ---------
Net increase (decrease) in cash and cash
equivalents 357,985 (540,052) 344,520
=========== =========== =========
Cash and cash equivalents at the
beginning of the year 553,030 1,093,082 748,562
Cash and cash equivalents at the end
of the year 911,015 553,030 1,093,082
View source version on businesswire.com: https://www.businesswire.com/news/home/20250313419538/en/
CONTACT: Investor Relations Contact
E-mail: ir@afya.com.br
(END) Dow Jones Newswires
March 13, 2025 17:45 ET (21:45 GMT)
Comments