In This Article:
Release Date: May 09, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Fleury SA (BSP:FLRY3) reported a gross revenue increase of 6.5% in Q1 2025 compared to the same period in 2024, reaching BRL 2.2 billion.
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The company has successfully implemented digital scheduling, which now accounts for a significant portion of appointments, reducing call center costs by an estimated BRL 26 million.
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Fleury SA's net profit grew by 6.7% in Q1 2025, with a net margin of 8.9%, indicating strong financial performance.
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The company has maintained a healthy EBITDA margin of 27.2%, consistent with the previous year, showcasing operational efficiency.
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Fleury SA continues to diversify its revenue streams, with new business units contributing to 9% of total revenue, enhancing resilience against macroeconomic challenges.
Negative Points
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The B2B segment experienced a contraction of 1.9% in gross revenue due to the loss of a hospital contract and a strong comparison base from the previous year.
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There is a noted impact on profitability from increased costs in direct materials and services, reflecting higher expenses for high-cost medications.
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The company faces challenges in the macroeconomic environment, including high interest rates, which affect capital allocation and acquisition opportunities.
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Fleury SA's lab-to-lab business has a structurally lower margin compared to service units, which could impact overall profitability.
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The competitive landscape remains challenging, particularly in the intermediary segment, where the company aims to expand its market share.
Q & A Highlights
Q: Can you provide insights on the growth prospects for the B2C and B2B segments in the upcoming quarters? A: (Gianni Tutsui, President) We are confident about our growth prospects. The first quarter showed substantial growth for our mature brand, indicating market share gains. We expect positive movement in the second and third quarters, particularly in Rio de Janeiro, where we have seen strong growth. Despite challenges in the B2B segment due to a high comparison base, excluding toxicology exams, our lab-to-lab business grew by 8.6% in the first quarter, indicating healthy growth.
Q: What are the margin prospects for 2025, and are there any initiatives for margin gains within each business unit? A: (Jose Filippo, Executive Director of Finance) While we don't provide specific margin guidance, we maintain healthy margins, with a 25.8% EBITDA margin in 2024. We focus on volume growth to reduce fixed costs and leverage digital tools for productivity gains. Our A Plus brand is growing rapidly, and we are implementing digital scheduling to reduce call center costs. We also focus on ROIC, balancing top-line growth, healthy margins, and capital allocation.