Afya(US:AFYA)2025-11-12 21:08Financial Performance - Revenue for the three-month period ended September 30, 2025, increased to R$928,505, a 10.4% rise from R$841,185 in the same period of 2024[4] - Gross profit for the nine-month period ended September 30, 2025, reached R$1,819,003, up 17.6% from R$1,546,885 in 2024[4] - Net income for the nine-month period ended September 30, 2025, was R$592,999, representing a 20.2% increase compared to R$494,641 in 2024[4] - Revenue for the nine-month period ended September 30, 2025, was R$2,795,024, a 13.6% increase from R$2,460,916 in the same period of 2024[39] - Net income for the nine-month period ended September 30, 2025, was R$592,999, reflecting a 19.9% increase compared to R$494,641 in the same period of 2024[39] - For the nine-month period ended September 30, 2025, net income attributable to equity holders of the parent was R$579,499, compared to R$481,583 for the same period in 2024, representing a year-over-year increase of 20.3%[113] - Basic earnings per share for the nine-month period ended September 30, 2025, was R$6.40, compared to R$5.35 in 2024, marking an increase of 19.6%[4] Assets and Liabilities - Total assets as of September 30, 2025, amounted to R$9,187,159, an increase of 4.1% from R$8,829,539 at the end of 2024[2] - Total current liabilities increased to R$1,800,271, a significant rise of 57.9% from R$1,140,195 at the end of 2024[2] - Total equity attributable to equity holders of the parent increased to R$4,746,073 as of September 30, 2025, from R$4,269,955 at the end of 2024, reflecting an increase of 11.2%[2] - Current liabilities as of September 30, 2025, were R$1,811,030, compared to R$1,148,783 as of December 31, 2024, indicating a significant increase of 57.7%[34] - Total financial liabilities as of September 30, 2025, amounted to R$5,611,224, with loans and financing contributing R$2,304,184 and lease liabilities at R$2,218,793[90] Cash Flow and Financial Position - Cash and cash equivalents at the end of the period were R$996,826, up from R$911,015 at the end of 2024, reflecting an increase of 9.4%[2] - The company reported a net cash flow from operating activities of R$1,277,763 for the nine-month period ended September 30, 2025, compared to R$1,148,175 in 2024, an increase of 11.3%[8] - The company incurred finance expenses of R$433,049 for the nine-month period ended September 30, 2025, compared to R$322,420 in 2024, indicating a rise of 34.4%[4] - The net finance result for the nine-month period ended September 30, 2025, was a loss of R$289,386, compared to a loss of R$242,761 in 2024[118] Acquisitions and Expansion - Afya Limited acquired Unidom Participações S.A. for a total consideration of R$620,762, which includes R$340,773 paid in cash and R$279,989 payable in up to ten annual installments[12][14] - The acquisition of Unidom added 300 operational medical school seats, with 125 seats authorized and 175 seats pending final court confirmation[13] - Afya Brazil acquired Faculdade Masterclass Ltda. for R$100,000, contributing an additional 60 medical school seats, with R$60,000 paid in cash and R$40,000 payable in three annual installments[16][17] - The company plans to continue expanding its educational offerings, including increasing medical school seats, which will require additional investments[59] Educational Operations - As of September 30, 2025, Afya had a total of 3,603 operating medical school seats across its institutions[20] - The primary revenue source for Afya is from its operational companies in Brazil, with the Brazilian Real as the functional currency[22] - The company operates through three reportable segments: Undergraduate, Continuing Education, and Medical Practice Solutions[29][30] Tax and Compliance - The effective income tax rate for the nine-month period ended September 30, 2025, was 9.7%, compared to 5.1% in 2024[127] - The company recognized an additional income tax expense of R$84,419 for the nine-month period due to the OECD's Pillar Two global minimum tax[124] - The company had no breaches of financial and non-financial covenants for any loans and financing during the current period, ensuring compliance with all obligations[93] Shareholder Information - The company approved dividends of R$60,471 for the nine-month period ended September 30, 2025, compared to R$58,236 in the same period of 2024, marking an increase of 3.9%[106] - The weighted average number of outstanding shares for the nine-month period ended September 30, 2025, was 90,524,215, an increase from 90,083,878 in the same period of 2024[113] - The outstanding treasury shares were 3,025,116, down from 3,493,238 as of September 30, 2024, reflecting a reduction of 13.4%[109] Other Financial Metrics - Tuition fees for the nine-month period ended September 30, 2025, reached R$3,510,791, up 16.7% from R$3,008,529 in 2024[114] - Total costs and expenses for the nine-month period ended September 30, 2025, were R$1,843,877, an increase of 8.9% from R$1,693,382 in 2024[117] - The company’s payroll expenses for the nine-month period ended September 30, 2025, were R$1,025,502, an increase from R$927,717 in 2024[117]