AUNA — Auna S.A.

Auna Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Adjusted EBITDA: Decreased by 5% year-over-year, primarily due to a 12% decline in Mexico, offset by growth in Peru and Colombia.
• Adjusted Net Income: Reported at PEN 58 million for the quarter.
• Consolidated Revenue: Increased by 1% in FX-neutral terms, with Peru and Colombia growing 9% and 4%, respectively, while Mexico saw a 12% decline.
• Capacity Utilization: Decreased by 3 percentage points to 64%, with Mexico's utilization down 4.4%.
• Debt Profile: Improved due to a successful refinancing of $765 million, reducing financing costs and extending maturities.

2. Strategic Updates and Business Highlights

• Mexico Operations: Despite challenges, surgery volumes increased for the second consecutive quarter, with a 48% growth in oncology and cardiology services. Auna is focusing on enhancing physician engagement and expanding its out-of-pocket revenue segment.
• Partnership with Sojitz: Auna has signed a Memorandum of Understanding (MoU) with Sojitz Corporation to co-invest in growth opportunities in Mexico, which is part of a broader $500 million investment plan over the next 3-5 years.
• Peru and Colombia: Both regions showed strong performance, with Peru's adjusted EBITDA growing 15% and Colombia's 18%, driven by risk-sharing models and improved payer diversification.

3. Forward Guidance and Outlook

• 2026 Expectations: Management anticipates a full recovery in Mexico in 2026, with growth driven by the implementation of strategic initiatives and the new leadership team.
• Revenue Growth: Auna expects to resume revenue growth in Mexico next year, with ongoing efforts to enhance service offerings and physician collaboration.

4. Bad News, Challenges, or Points of Concern

• Mexico's Performance: The decline in Mexico's revenue and EBITDA is attributed to a slower-than-expected recovery in surgery volumes and issues related to new hospital information systems.
• Capacity Utilization Decline: Decreased capacity utilization in Mexico and Colombia raises concerns about operational efficiency.
• Market Conditions: The healthcare market in Mexico remains soft, and there are ongoing challenges with physician relationships and the implementation of the AunaWay model.
• Political Risks in Colombia: Potential changes in Colombia's leadership could impact the healthcare sector, although Auna's positioning remains strong.

5. Notable Q&A Insights

• On Mexico's Strategy: Management emphasized the growth potential in Mexico, despite current challenges, and the importance of the partnership with Sojitz to accelerate growth while managing leverage.
• Share Price Concerns: There was discussion on the recent decline in share price, attributed to external market factors rather than company fundamentals. Management is exploring options to enhance shareholder value.
• Investment Timeline: Auna's management indicated that while 2025 would be a flat year, 2026 is expected to show significant growth, particularly in Mexico.
• Operational Metrics: Key performance indicators to watch for recovery include occupancy rates, payer mix, and surgical productivity, which are critical for confirming a turnaround.

Overall, while Auna faces challenges, particularly in Mexico, there are positive signs of growth in Peru and Colombia, and strategic initiatives are in place to drive recovery and expansion in the coming years.