INSTITUTO HERMES PARDINI S.A. QUARTERLY INFORMATION 3Q22
Medicina, Saúde e Bem-estar
Quarterly Information | ||
Report on review of Quarterly Information....................................................................................................... | 3 | |
Statement of financial position.......................................................................................................................... | 5 | |
Statement of profit or loss................................................................................................................................. | 6 | |
Statement of comprehensive income................................................................................................................ | 8 | |
Statement of changes in equity ......................................................................................................................... | 9 | |
Statement of value added................................................................................................................................ | 10 | |
1 | Operations................................................................................................................................................ | 12 |
2 | Basis of preparation and presentation of the quarterly information, and summary of significant | |
accounting practices ................................................................................................................................ | 14 | |
3 | Business combinations............................................................................................................................. | 16 |
4 | Cash and cash equivalents ....................................................................................................................... | 18 |
5 | Trade receivables ..................................................................................................................................... | 19 |
6 | Inventories ............................................................................................................................................... | 20 |
7 | Taxes recoverable .................................................................................................................................... | 20 |
8 | Other assets ............................................................................................................................................. | 20 |
9 | Investments.............................................................................................................................................. | 21 |
10 | Property and equipment.......................................................................................................................... | 23 |
11 | Intangible assets....................................................................................................................................... | 24 |
12 | Right-of-use assets ................................................................................................................................... | 26 |
13 | Trade payables ......................................................................................................................................... | 28 |
14 | Tax, social security and labor obligations ................................................................................................ | 28 |
15 | Leases ....................................................................................................................................................... | 28 |
16 | Debentures and borrowings .................................................................................................................... | 29 |
17 | Taxes payable in installments .................................................................................................................. | 31 |
18 | Provision for contingencies...................................................................................................................... | 32 |
19 | Current and deferred income tax and social contribution ...................................................................... | 33 |
20 | Restricted financial investments and payables for acquisition of investments....................................... | 36 |
21 | Equity ....................................................................................................................................................... | 38 |
22 | Net service revenue ................................................................................................................................. | 39 |
23 | Operating costs and expenses by nature................................................................................................. | 40 |
24 | Finance income (costs)............................................................................................................................. | 42 |
25 | Related-party transactions....................................................................................................................... | 43 |
26 | Earnings per share.................................................................................................................................... | 46 |
27 | Financial instruments and risk management........................................................................................... | 47 |
28 | Non-cash transactions.............................................................................................................................. | 50 |
29 | Events after the reporting period ............................................................................................................ | 51 |
Officers' Statement on the Quarterly Information.......................................................................................... | 53 | |
Officers' Statement on the Independent Auditor's Review Report................................................................. | 54 |
Medicine, Health and Well-Being
EARNINGS RELEASE
1
Record Test Processing
Belo Horizonte, November 10, 2022 - Instituto Hermes Pardini S.A. ("IHP"), one of Brazil's largest Diagnostic Medicine companies,
announces its operating and financial results for the third quarter of 2022 (3Q22). Except where stated otherwise, information in this document is provided in local currency (real). The consolidated information of the Company is prepared in accordance with the accounting practices adopted in Brazil, based on the Brazilian Corporation Law and CVM regulations, as well as International Accounting Standard (IAS) 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB).
1
3Q22 highlights
RECORD | RECORD | |||||
Number of tests | Gross Revenue | Gross Margin | Gross Revenue | |||
Ex-COVID | ||||||
44.3 million | R$567.5 million | 25.6% | ||||
R$550.4 million | ||||||
RECORD | ||||||
Consolidated | ||||||
Gross Profit | EBITDA margin | EBITDA Ex-COVID | ||||
EBITDA | ||||||
R$134.7 million | 19.7% | R$99.1 million | ||||
R$103.6 million | ||||||
Net Income | Net Margin | ROIC without |
goodwill | ||
R$29.9 million | 5.7% | |
33.9% | ||
Operating Cash Flow | ||
R$118.9 million |
2
2 Message from the Management
The Pardini Group announces its results for the third quarter of 2022. The Pardini Group has repeatedly been breaking its own records in number of tests processed and this quarter was no exception. We processed record volumes in 1Q21, 2Q21, 3Q21, 1Q22, 2Q22 and now in 3Q22 as well. Volume totaled 44.3 million tests, increasing 20.8% ex- COVID compared to 3Q21. Including COVID tests, volume growth was still 18.7%. This quarter, COVID tests totaled 0.2 million, the lowest since April 2020 (start of the pandemic).
The reduction in volume was the result of stability and operational excellence of our technical centers, combined with our strategy of increasing revenue sources ex-COVID, which led to a record number of L2L clients, as well as the expansion of PSC in São Paulo and the performance of the acquisitions made in recent years.
Irrespective of the decrease in COVID tests, we not only protected the Company's gross revenue but also increased it by 3.5% in 3Q22 vs. 3Q21, to R$567.5 million.
Gross revenue ex-COVID came to
R$550.4 million in 3Q22, a new record, growing 19.0% from 3Q21. Excluding COVID and Toxicology tests, growth is even higher at 21.9%.
Gross revenue from COVID tests came to R$17.1 million in the quarter (3.0% of consolidated sales), decreasing 80% from 3Q21, before eliminations (lowest amount since the start of the pandemic).
Another highlight was the increase in revenue by R$47.4 million in the quarter due to the acquisitions made in 2021: Laboratório Paulo Azevedo, Laboratório APC, IACS and Clínica Dra. Odivânia.
Gross profit declined 16.2% in 3Q22 compared to 3Q21, positively impacted by: (ii) the acquisitions (M&A), which contributed to volume and revenue growth; and (iii) the recovery of prices and volume at L2L; and negatively impacted by: (i) the increase in costs due
to the new units in São Paulo, especially
with rent, medical fees, personnel expenses and depreciation; (ii) the effect of inflationary cost on expansion of the Company's structure; (iii) the reduction in COVID and Toxicological tests compared to 3Q21.
- impact of salary adjustments due to labor agreements in 3Q22. As such, gross margin in 3Q22 decreased 610 bps compared to 3Q21.
EBITDA ex-COVID increased 25.3% between 3Q21 and 3Q22 to reach R$99.1 million, a quarterly record for the Company on an ex-COVID basis. EBITDA margin ex-COVID was 19.4% in 3Q22, up 100 bps year on year, due to efficiency gains resulting from higher volume processed and the management of production costs to minimize inflationary pressure.
Meanwhile, consolidated EBITDA came to R$103.6 million in 3Q22, down 14.9% from 3Q21. EBITDA margin stood at 19.7% in 3Q22, as against 24.0% in 3Q21. The decrease in margin was mainly due to the decline in COVID and Toxicology tests, as well as higher fixed costs with funding (especially in São Paulo) and production in a scenario of annual inflation of close to double digits.
PATIENT SERVICE CENTERS (PSC)
The PSC collection channel also set a new record in volume in 3Q22, with growth of 22.5% in gross revenue ex- COVID compared to 3Q21. Total PSC gross venue increased 5.5% in 3Q22 vs. 3Q21. On a consolidated basis, all the regions delivered growth excluding
COVID.
The regional PSC highlight was once again São Paulo, which is in the ramp- up phase, with patients being gradually directed by health plan operators and its portfolio of tests expanding. Also, the number of new health plans accredited by the SP units increased. Note that São Paulo contributed to the record revenue ex- COVID in 3Q22 with an increase in the number of units, from five in 2021 to 37 in 2022.
Demonstrating the strong recovery of exams ex-COVID, imaging expanded 18% in the quarter, driven by the increase in the saturation of MRIs, ultrasound exams and tomographies, which were new records. This growth was driven by the expansion of
3
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Instituto Hermes Pardini SA published this content on 14 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2022 13:24:08 UTC.
