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| Statement |
|---|
| Once again, we are guiding another strong round ahead (ph) in the top of the year guidance, improving Afya's resiliencies and abilities to keep delivering solid results with a high predictability |
| Adjusted net revenue grew almost 25% year-over-year, reaching BRL723 million, followed by an adjusted EBITDA growth of nearly 22% year-over-year, reaching BRL278 million with a margin of 39% |
| We also reported a record cash flow from operating activities generated, ending the nine months period with BRL934 million, 26% higher than last year, with a cash conversion of 109%, and we were able to reduce our net debt to BRL418 million when compared to December 2022, even with UNIT and FITS acquisition in January, as we will see on the Slide 14 |
| Adjusted net income followed the same positive trend of last quarter and reached BRL128 million, a growth of 7% year-over-year with an adjusted EPS of BRL1.38, 7% higher than last year, even considering a higher net debt level and a higher interest rate |
| This result reflects Afya's great capital allocation discipline on buybacks, M&A and an efficient capital structure |
| So they are using even the more the digital channel and with a strong growth of -- not only reputation, but we are, I think, the right pattern to them to have the right way to reach physicians and the best time using their time in the best way |
| As regarding the Digital Services segment, so the release mentioned that the company had a strong increase in B2B engagements |
| In the Continuing Education segment, we continue to see great results, presenting a net revenue growth of 35% year-over-year |
| With a quarter marked by significant increases in net revenues in our three segments, positive EBITDA, cash generations and EPS growth and the consistent business expansion |
| This result reinforces the great opportunity ahead in the Digital Services and is explained by the strong ramp-up on B2B engagements with new contracts with pharmaceutical industries companies and the continuous ramp-up on B2B contracts |
| As we approach the end of the year, even considering the challenging economic and political scenario, we can gladly see Afya delivering strong results |
| Our capital structure remains solid with a conservative leverage position and the low cost of debt |
| We are delighted to present that the most significant growth in terms of revenue came from the Continuing Education segment with 35% growth year-over-year due to a robust intake process, new campuses and course maturation |
| As said before, we saw another quarter with great recovery in our Continuing Education segment, with an increase of nearly 23% in the number of students compared to the last year, reaching 4,954 students |
| This result reinforces the opportunity ahead in Digital Services and is explained by the ramp-up in B2B engagements that boosted net revenues and grew more than 75% with new contracts with the pharma industry and the continuous ramp-up on B2B contracts |
| Cash flow from operating activities for the nine-month period was 26% higher year-over-year, totaling BRL934 million, resulting in a strong cash conversion ratio of over 109% |
| It is with much satisfaction that I present another strong quarter results for Afya |
| Furthermore, the cash conversion rate will continue to perform above 90%, which shows our capacity to deliver strong growth, expanding our profitability and cash generation |
| In this quarter, net revenues for the segment grew 35% compared to the same period of the prior year |
| We were able to generate BRL418 million as free cash and reduced our net debt in the nine-month period |
| Finally, our last graph shows our digital service net revenues for the quarter, which increased more than 19% year-over-year and regarding the nine-month period increased by almost 22% year-over-year |
| Once again, after reporting great results on the Digital Health Services revenue, which ended the quarter with an increase of more than 19% year-over-year, reaching more than BRL53 million in the three months period |
| Once again, the Digital Services segment has also contributed to the revenue growth this quarter with the increase of the B2B engagements and the active payers expansions in B2B (ph) |
| Adjusted net revenue for the quarter was up almost 25% year-over-year to BRL723 million |
| B2B strategy holds a huge potential and [indiscernible] |
| We will talk about our solid business execution within our three business units, starting with the Undergrad segment |
| In other words, after 2023, net revenues and adjusted EBITDA will be almost 4 times higher than 2019, the year of our IPO |
| Our number of medical students grew 20% year-over-year, reaching more than 21,000 students with operating medical seats increasing 15% year-over-year |
| We took all the actions on that and for the first numbers of the fourth quarter, as Virgilio mentioned, we saw a recovery year-over-year |
| So it's the first month when you compare to the last 12 months that we are seeing a stronger intake from when you compare to the last year same period intake |
| Statement |
|---|
| So the nine months, we are operating below the trend when you compare to last year, the same period last year |
| But as you noticed in our release, the number of students of Medcel decreased more than 50% year-over-year |
| We -- it's lagging with white book, it's lagging with our white book |
| But this drop on the net revenues come mostly from Medcel |
| So we have this specific pushback because of Medcel |
| So that is -- when we analyze that and apply for all the regions that they are trying to open this new Mais Medicos, these new injunctions, I think the impact on overall demand will be much lower than the overall process that we are seeing being analyzed by the Ministry of Education |
| Medcel tends to have a pushback on the Digital results as a whole, Medcel, it's not our most important business in the Digital |
| Regarding the second question about readjustments |
| These risks include those more fully described in our filings with the Securities and Exchange Commission |
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