In This Article:
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Qualicorp Consultoria E Corretora De Seguros SA (BSP:QUAL3) has maintained a stable adjusted EBITDA margin despite a reduction in the base of members.
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The company has successfully reduced both fixed and variable expenses, contributing to improved financial performance.
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There has been a significant reduction in churn, marking the lowest churn rate in the last four years.
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The company has launched three new HMOs and 60 new products, expanding its portfolio and regional presence.
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Cash generation remains strong, with a cash flow of 103 million in the quarter and a reduction in net debt by 19% compared to last year.
Negative Points
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The company experienced a 23% reduction in the number of lives managed compared to the same quarter last year.
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Revenue stability was partly due to a concentration of readjustments, which may not be sustainable in the long term.
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Variable expenses increased due to operational aspects from the first half of the year.
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There is a concern about the impact of unilateral cancellations and contingencies on financial results.
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The launch of multiple new products simultaneously has caused confusion in the sales channels, affecting commercial dynamics.
Q & A Highlights
Q: Can you provide insights on the new products launched and their impact on sales? A: Mauricio Lopez, CEO, explained that the new products have regional significance and are expected to become key players in their respective areas. Some may even achieve national prominence. The focus is on aligning products with regional needs to enhance their relevance and success.
Q: How are you addressing the increase in contingencies this quarter? A: Mauricio Lopez, CEO, noted that the increase in contingencies is due to operational factors and unilateral cancellations. These are being addressed through improved processes and collaboration with HMOs, although some impacts may continue into the next quarter.
Q: What are the effects of the new commercial strategy on sales and cash flow? A: Mauricio Lopez, CEO, stated that the commercial strategy is yielding positive results, with improved sales dynamics. The company is also strategically using cash advances to support long-term partnerships with HMOs, ensuring minimal risk exposure.
Q: Can you elaborate on the efforts to align goals with the sales force and manage CAC? A: The company has implemented a comprehensive model to align sales incentives with product distribution, resulting in improved early churn rates. While CAC may increase slightly, it remains at a manageable level, and the focus is on delivering quality sales.