Oncoclínicas achieved a net profit of R$149 million in the third quarter (162% higher than in 3Q22) and gross sales of R$1.5 billion

2023-11-18 00:20:30

SÃO Paulo (ots/PRNewswire) – Operating cash flow of R$322 million, a record for the company’s third quarter

Oncoclínicas & Co. (B3: ONCO3) reported a 23.4% increase in gross revenues to R$1.5 billion for the third quarter of 2023, another record for the company. The performance, which is entirely organic, is mainly due to the increase in the number of treatments for patients (+14.4%), reflecting the resilience of the cancer treatment segment combined with the profit of market shares reflects. For the nine-month period ended September 30, gross revenue reached R$4.4 billion. Gross profit amounted to R$495.8 million in 3Q23, an increase of 21.7% compared to 3Q22 and a margin of 35.4% year-on-year (35.0%), demonstrating continuous improvement in operational efficiency.

“We continued to grow at more than 20% per year, even without any new acquisitions during this period. 2023 was a year in which we were able to further implement all the synergies and value creation initiatives that we announced over the last two years. All this is in line with our thesis and our business model, which puts the patient at the center,” emphasizes Bruno Ferrari, founder and CEO of Oncoclínicas & Co.

EBITDA Ex-PILP (excluding the non-cash impact of the long-term incentive plan) was R$269.1 million in 3Q23, 39.2% higher than R$193.2 million in 3Q22 and with a margin of 19.2 %, 2.6 percentage points higher than in the same quarter last year. The EBITDA improvement continues to reflect progress in the integration process of the acquired entities, with efficiency gains and synergies being realized. In the first nine months of the year (9M23), EBITDA Ex-PILP already amounted to R$ 814.2 million, with a margin of 20.1%.

This was also the fifth consecutive quarter with a net profit that reached R$ 149.3 million, more than 2.6 times higher than in the same period of 2022. The net profit for the first nine months of the year was to R$225.5 million. Operating cash flow (OCF) totaled R$322 million, reflecting another quarter of solid operating results, active management of the sales cycle, inventories and intensive work with suppliers. For 9M23, the OCF/EBITDA conversion is almost 40%. Even following debt service and all maintenance investments, cash flow in 3Q23 was R$87 million.

The number of patient treatments increased by 14.4% in 3Q23 compared to 3Q22, reaching a total of 161.8 thousand. The volume of treatments in the last 12 months is around 615 thousand.

Rodrigo Medeiros Executive Vice-President of Oncoclínicas & Co, explains: “Despite a scenario that remains unfavorable for the healthcare sector, in which our partners – the health insurance companies and operators – are recovering from the record numbers of claims, we have proven that it is “It is possible to achieve above-average results by internally striving for greater efficiency in operations and in optimizing the working capital cycle.”

Cristiano Camargo, CFO and Director of Investor Relations, added: “We continue to pay close attention to two key value levers: (I) the continuation of internal corporate reorganizations to optimize the effective tax rate, which impacts net income, and (II) optimizing our working capital cycle, which impacts the conversion of EBITDA to operating cash flow. We were able to implement both consistently.”

Other events in the quarter included investments and partnerships such as: strategic agreement with Unimed Recife to coordinate the oncology care line for the next 30 years; Acquisition of an additional 25% interest in the partnership with Unimed Nacional in the oncology departments in São Paulo, Brasília and Salvador, now at 75%; Approval by CADE of the 60-year agreement with Grupo Santa for joint operations in Brasília; and opening of the first Oncoclínicas Cancer Center in partnership with Dana- Farber, the first institution outside the United States to be certified as an International Collaborative Member of the Dana-Farber Cancer Institute.

This information is contained in the data released on Monday (11/13) by

Oncoclinics (https://ri.grupooncoclinicas.com/) were published.

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