GuruFocus - Release Date: November 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Diagnosticos da America SA (BSP:DASA3) achieved a 14% operational growth in the third quarter, exceeding the previous year's trend by 1.4 percentage points.
- The company reported a 20% reduction in financial debt plus receivables, aligning with its strategic goals.
- There was an 18% expansion in oncology, contributing to overall revenue growth.
- The company successfully reduced adjusted expenses by 12% compared to the third quarter of 2023, thanks to its operational excellence program.
- Investments in technology and digitalization have led to improved compliance and productivity, enhancing service delivery.
- Diagnosticos da America SA (BSP:DASA3) experienced a reduction in net profit due to operational growth and new investment levels.
- The company faced a 2% drop in adjusted gross profit, with a 1.5 percentage point decrease compared to the third quarter of 2023.
- Higher costs per patient, influenced by new regulations and inflation, impacted profitability.
- The company anticipates a BRL50 million reduction in gross revenue due to the interruption of non-profitable operations.
- There was a 19% reduction in consolidated investments compared to the previous year, reflecting a more cautious investment approach.
A: (CEO) The partnership with America's hospitals is progressing, and we are considering a combination of debt transfer and direct capitalization. While discussions are ongoing, we aim to allocate resources efficiently to execute the agreement with favorable terms. Our governance indicators show stability, and we anticipate a significant reduction in debt by next year.
Q: Regarding G&A expenses, is there still room for further reduction, and when do you expect to reach normal levels?
A: (CFO) We see many opportunities for G&A reduction through process optimization and increased productivity. We are revising our structure to focus on our main business units, and we expect continued reductions in G&A expenses in the coming months, although we cannot provide an exact figure at this time.
Q: Can you provide an update on the sale of non-core assets and any estimated values?
A: (CEO) It's too early to estimate the values of non-core assets. These assets are not weak but do not align with our current focus on core business units. We are carefully analyzing the situation and will avoid investments in non-core areas while optimizing our internal structure.
Q: What factors contributed to the growth in BU2 diagnostics tickets, and was it influenced by a competitive scenario?
A: (CEO) The growth in BU2 diagnostics tickets is due to disciplined pricing strategies, favorable product mix, and price adjustments to offset inflation. We are focused on maintaining healthy ticket growth while respecting market dynamics.
Q: How does the company view its capital structure and potential divestments in light of current leverage levels?
A: (CFO) Our deleverage process is driven by operational performance, transaction completion with AMIL, and potential divestments. We are focused on improving results, managing CapEx, and optimizing working capital. Currently, there are no new elements to disclose regarding divestments.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.