Financial Data and Key Metrics Changes - Auna reported consolidated revenue and EBITDA growth of only 41% on an FX neutral basis, which was lower than expected [7][8] - Net income was positive for the fifth consecutive quarter, indicating underlying financial stability despite operational setbacks [12][22] Business Line Data and Key Metrics Changes - Peru's operations outperformed, with a 10% increase in revenue driven by higher surgery volumes and improved pricing, while adjusted EBITDA increased by 19% [20][22] - In Mexico, revenues decreased by 4% and adjusted EBITDA by 5% on an FX neutral basis, attributed to operational setbacks and a challenging macroeconomic environment [15][22] Market Data and Key Metrics Changes - Capacity utilization in Peru increased by 4.4 percentage points year-over-year, while it decreased by 0.9 and 2.1 percentage points in Mexico and Colombia, respectively [14] - Colombia saw a 5% revenue increase in local currency, driven by risk-sharing models and diversification of the payer portfolio [21] Company Strategy and Development Direction - The company remains committed to transforming healthcare in Spanish-speaking Latin America through its value-based care model, with a focus on high complexity services [29] - Auna is diversifying its payer mix in Colombia to manage risk and stabilize cash flows, while also aiming to recover growth momentum in Mexico [30][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged operational setbacks in Mexico but expressed confidence in recovering growth momentum as corrective measures are implemented [8][12] - The company is optimistic about the long-term potential in Colombia and continues to focus on improving payment flows and cash cycle [30] Other Important Information - Auna's debt leverage remained unchanged, with a commitment to reach a midterm target of three times or less [12][28] - The company has maintained a solid cash position despite a 15% decrease in cash, generating PEN165 million of pretax operating cash flow [24][27] Q&A Session Summary Question: Update on Mexico's operations and transition to the Auna Way - Management clarified that the transition is necessary for long-term growth and efficiency, emphasizing the importance of aligning physician practices with the Auna model [35][36] Question: Update on Colombia's risk-sharing agreements - Management indicated that approximately 20% of revenues are now from risk-sharing models, with a target of 30% by the end of the year [37] Question: Guidance for Mexico's performance - Management refrained from providing specific guidance but expressed confidence in recovering growth in the coming quarters [48][49] Question: CapEx guidance and impairments in Colombia - CapEx is expected to remain at or below $50 million annually, with ongoing impairments in Colombia as part of a derisking strategy [52] Question: Acceptance of the Auna Way in Peru - Management noted that acceptance took several years in Peru, but they expect a quicker transition in Mexico due to lessons learned [63]
Auna S.A.(AUNA) - 2025 Q1 - Earnings Call Transcript