The following is a summary of the Afya Limited (AFYA) Q1 2024 Earnings Call Transcript:
Financial Performance:
Afya reported Q1 2024 net revenue of R$804 million, a 13% increase.
The company's Adjusted EBITDA increased by 21% Year-over-Year(YoY) to R$398 million with a margin of 49.5%.
The Adjusted net income rose to R$251 million, marking a 51% increase from Q1 2023.Adjusted Earnings per Share climbed to R$2.74, a 55% YoY increase.
The company reported strong operating cash flows of R$429 million, a 22% YoY increase, and ended the quarter with a net debt of R$1.577 billion.
Business Progress:
Afya expanded its operational medical school seats capacity to 3,152 seats with its number of medical school students increasing by 8.6% YoY.
The company underwent a restructuring effort in its Continuing Education and Medical Practice Solutions segment to align it closer to medical education.
Afya signed the acquisition of Unidompedro and Faculdade Dom Luiz, adding 300 operating medical seats in Salvador, enhancing their revenue projections.
Furthermore, with the continued efficiency measures, the company anticipates accelerating top-line growth.
The company ended Q1 with a cash balance of over R$600 million and will use this and cash generated in Q2 to fund the Unido acquisition.
Despite uncertainties, the company remains positive about the additional 175-seat program due to favourable medical law precedesnts.
Delivering robust intake performance in the education sector, the company maintains growth while keeping competition levels similar to previous years, upholding solid brand and company growth.
More details: Afya Ltd IR
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