Fourth Quarter 2023 Highlights
2023 Highlights
Message from Management
We are excited to deliver a year of remarkable operational and monetary achievements for Afya. Once again, we have demonstrated the strength of our business, the effective implementation of our strategy, the determination of our team members, and the reliability of our business model.
This year, we revealed notable increases in net sales across all 3 segments, strong cash generation, and truly extensive EPS growth, underscoring the continued expansion of our business. The convergence of those elements has enabled us to achieve our goals for 2023, and we are now eager to achieve the goals set for 2024.
During the year, we are pleased to announce that the most significant expansion of the year, in terms of revenue, came from our continuing education segment. Through a physically powerful admissions process, the creation of three new campuses, and the maturation of courses, we will once again be able to see our students, employees, and partners take advantage of our ever-evolving ecosystem.
Our moment of greatest notable expansion comes from our undergraduate activities: our core business remains stronger than ever, with medical courses increasing tickets more than inflation, the maturation of medical offerings, and the final touch of the integration process of UNIMA and the Faculty of Medical Sciences. Jaboatão in November, less than a year after its acquisition, demonstrating our commitment to extracting synergies within the operation.
In our virtual segment, we are proud to celebrate another year of biological expansion, reaffirming the immense potential of the company. This growth can be attributed to the good fortune of our B2B engagements, where we secured new contracts with leaders in the pharmaceutical industry. In addition, the continued expansion of B2P subscribers reflects our unwavering commitment to expanding our reach.
Afya’s net profit in 2023 was almost 4 times higher than in 2019, the year we went public. In addition, money generation has increased significantly. We have noticed a money conversion rate consistently above 90%, which shows our ability to achieve truly extensive profits. expansion while gaining better earning and money-making skills. Finally, our consistent percentage (EPS) earnings have more than doubled since 2019 and continue to grow, highlighting our ability to combine biological and non-biological expansion with disciplined capital allocation, generating significant returns to drive our expansion.
In addition to its results, Afya has also invested in the progression of its sustainability strategy and ESG (environmental, social and governance) vision to improve price generation and have an impact on its stakeholders, as well as contribute to the longevity of the company with socio-economic impact on environmental responsibility. Aware of the role we play, ESG facets permeate our methods and routines. Our purpose is to contribute to the social and economic progress of the communities in which we operate and to enable physicians to notice the most productive facets of their profession.
As an indication of our remarkable effects and impactful projects being introduced to the market, the announcement of our sponsored BDRs this year marked Afya’s entry into B3 and we proudly celebrated several awards this year, such as the “Executive of Valor” which recognized Virgil Gibbon. as the most productive CEO in the school sector, “Best Innovation Company in Education of Economic Value”, and prestigious popularity for being the most productive company in the school sector in the “Valor 1000” and “Great Place to Work” awards.
Strong performance, steady growth, good fortune across all segments, social duty, and public recognition – this is how we evolved and our project to provide an ecosystem that integrates education and virtual responses for the entire medical journey. We are very proud of our company and what we have achieved so far and are excited about the future.
1. Key of the quarter:
2. Subsequent Event
3. Forecasting for 2023
4. 2024 Guidelines
5. 4Q23 and 2023 Recap
Operational Review
Key Revenue Drivers: Undergraduate Courses
Twelve-month year ended December 31
2023
2022
% Change
Key Revenue Drivers: Continuing Education and Digital Services
Twelve-month year ended December 31
2023
2022
% Change
Key Business Drivers: Digital Services
Seasonality
Income
Adjusted EBITDA
Adjusted Income
Cash and debt position
CAPEX
ESG Metrics
6. Conference Call and Webcast Information
When:
7. About Afya Limited (Nasdaq: AFYA)
8. Forward-Looking Statements
9. Non-GAAP Financial Measures
10. Investor Relations Contact
11. Financial Tables
Consolidated Statements of Income and Comprehensive Income
For the years ended December 31, 2023, 2022 and 2021
(In thousands of Brazilian reais, profits consistent with participation)
2023
2022
2021
Reconciliation of Net Source of Revenue to Adjusted EBITDA
2023
2022
2023
2022
101 886
71 331
42,8%
405 416
392 756
3,2%
Contactos