Adjusted EBITDA increases 1% FXN YoY; Peru supports quarterly results, further validating its integrated business model

Auna (NYSE:AUNA) ("Auna" or the "Company"), a leading healthcare platform in Latin America with operations in Mexico, Peru, and Colombia, today announced financial results for the first quarter ended March 31, 2025 ("first quarter 2025" or "1Q25"). Financial results are expressed in Peruvian Soles ("S/" or PEN") and are presented in accordance with International Financial Reporting Standards ("IFRS"), unless otherwise noted.

1Q25 Consolidated Highlights

Consolidated Revenue decreased 3% YoY to S/1,042 million, increasing +4% FXN
Adjusted EBITDA decreased 8% YoY to S/222 million, increasing +1% FXN
Adjusted EBITDA Margin decreased 1.1p.p. to 21.4%
Adjusted Net Income was S/55 million, up from S/22 million in 1Q24
Leverage Ratio was 3.6x, in line with 3.6x in 4Q24 and below 4.3x in 1Q24

Message from Auna's Executive Chairman and President

This quarter our revenues increased 4% FXN and Adjusted EBITDA grew 1% FXN versus 1Q24, falling short of our expectations. The results reflect a softer market in Monterrey and what we expect to be temporary operational setbacks there, as well as challenges remaining in Colombia. We know from experience in other markets that the implementation of the AunaWay, an ambitious and disruptive operating model, has challenges, principally the time it takes for doctors, nurses, and providers to adapt and make it their own. We have addressed the progressive approach required by our physicians in Mexico and have tweaked our implementation accordingly. We remain confident in the underlying strength of our business, strategic direction, and earnings potential.

Peru continued to be a standout in the quarter, demonstrating the strength of our proven model when fully implemented—the same one we are replicating in Mexico. It was another strong quarter of growth across members, volumes, and pricing, with Consolidated Peru Adjusted EBITDA exceeding our expectations. This performance reflects both the resilience of Auna's platform and the growing benefits of still increasing vertical integration, specifically the efficiency initiatives that we launched last year. Peru remains a clear example of how the AunaWay can continue delivering sustained, profitable growth, even in markets where we already operate at high utilization levels.

In Mexico, during the first quarter, in addition to the usual seasonality, we observed softness in the market. Additionally, in building our ecosystem of partners aligned with the best practices of our operating model, we reduced the number of legacy medical suppliers that were obstacles to the implementation of the AunaWay. This decision is also aligned with what is becoming best practice by the country's major payors. However, we underestimated the economic impact this would have on physicians, many who are more integrated into suppliers, which resulted in reduced volumes throughout our Mexican network. To address this issue, we have scaled back our initial initiative and have put in place a progressive approach that allows our physicians to transition into our practice and standards. This is one of many challenges we have confronted in the past and resolved, where gradual shifts are needed to achieve the right balance between the traditional economics of physician practices and the modern medical protocols that we are implementing. This is a threshold event, one that once crossed, will enable us to reap the full benefits of the efficiencies and profitability of the AunaWay in Mexico.

As we learned in Peru, our initial market, transforming healthcare is a gradual and measured process. Changing long-standing medical protocols and operating models takes time, but it is essential to delivering superior clinical outcomes and achieving long-term profitable growth.

In Colombia, our results were encouraging, in terms of preserving cash flow. In a still highly complex operating environment, our mature and solid operating model helped us achieve modest top-line growth, supported by the risk-sharing programs that we implemented in the fourth quarter last year. However, Adjusted EBITDA remained affected by provisions, which increased for the quarter, as expected. Consequently, we have continued to limit services delivered to intervened EPSs, resulting in more consistent payment flows for outstanding receivables. In addition to improving collections, the reallocation of volumes to other payors is improving payor diversification, as well as strengthening our cash flow outlook.

Our leverage remained broadly stable, with strong performance from Peru helping offset shortfalls in Colombia and Mexico.

To conclude, we are taking swift, tactical steps to address the current setbacks, and we expect to continue recovering volumes in the coming quarters. Besides the corrective actions that we are taking in Mexico, we are deepening our collaboration with insurers to increase volumes this year and beyond, particularly in areas where our model delivers the greatest value to them and patients. We are also focused on intensifying the recruitment, retention, and re-engagement of the highest-performing physicians. And we continue to advance our strategy to introduce OncoSalud in Mexico, another way that Auna intends to disrupt and modernize Mexico's massive healthcare market. In Colombia, we continue to prioritize cash flow over growth and right-size our cost base accordingly. And we expect Peru to continue underpinning our business with higher levels of growth and profitability as we continue to harvest higher levels of efficiency.

We have faced similar transition periods before and always emerged stronger. The fundamentals of our model remain intact, our market opportunities are still substantial, and our strategic path is clear. With that in mind, we remain committed to disciplined execution of our growth strategy and to delivering sustainable, long term growth.

Overview of 1Q25 Consolidated Results

Revenues decreased 3% YoY to S/1,042 million, or increasing +4% FXN, with revenues in local currency ("L.C.") decreasing 4% in Mexico, while increasing 10% in Peru and 5% in Colombia.

In Mexico, network revenue was affected by lower volume at Doctor´s Hospital ("DH"). The Peruvian healthcare network benefited from increased demand for surgeries and membership price adjustments for medical inflation. In Colombia, risk-sharing models with payors supported growth amidst lower demand for event model contracting of services with EPSs.

Adjusted EBITDA decreased 8% YoY, or increased +1% FXN, to S/222 million, with the corresponding margin decreasing 1.1p.p. to 21.4%, slightly compensated by the Peru Healthcare Services and Oncosalud Peru segments. The almost flat performance in Adjusted EBITDA in FXN was primarily due to low revenue growth in FXN and impairment losses of S/10 million in Colombia. In addition to the revenue decline in Mexico and the increase in the provisions in Colombia, the results in our reporting currency were impacted by a 22% depreciation of the MXN/PEN and 9% depreciation of the COP/PEN exchange rate, respectively.

Net finance costs declined to S/80 million in 1Q25 versus S/168 million in 1Q24. Net interest expenses, excluding FX effects, would have been S/118 million in 1Q25 and S/171 million in 1Q24, a decrease of S/53 million, or 31%, mainly due to non-recurring impacts in 1Q24. The FX impact in 1Q25 includes a positive non-cash amount of S/37 million versus a positive S/3 million non-cash FX impact in 1Q24, mainly due to the appreciation of the Peruvian Sol against the US Dollar, outside the range of Auna's call-spread hedge.

Net Income was S/38 million in 1Q25, compared to a Net Loss of S/8 million in 1Q24. On a per-share basis, Auna reported Net Income of S/0.48, based on a weighted average number of basic and diluted shares of 74,217,754.

Adjusted Net Income was S/55 million in 1Q25, versus S/22 million in 1Q24. On a per-share basis, Auna reported Adjusted Net Income of S/0.70, based on a weighted average number of basic and diluted shares of 74,217,754.

For a full version of AUNA's First Quarter 2025 Earnings Release, please visit: https://aunainvestors.com/English/financial-information/quarterly-results/

Conference Call Details

When: 8:00 a.m. Eastern time, May 21, 2025

Who: Mr. Suso Zamora, Executive Chairman of the Board and President; Mrs. Gisele Remy, Chief Financial Officer and Executive Vice President; Mr. Lorenzo Massart, Executive Vice President of Strategy and Equity Capital Markets.

Dial-in: +1 888 596 4144 (U.S. domestic), +1 646 968 2525 (International)

Passcode: 3884034

To access Auna′s financial results call via telephone, callers need to press # to be connected to an operator.

Webcast: click here

About AUNA

Auna is a leading healthcare platform in Latin America with operations in Mexico, Peru, and Colombia, prioritizing prevention and concentrating on high-complexity diseases that contribute the most to healthcare expenditures. Our mission is to transform healthcare by providing access to a highly integrated healthcare offering in the underpenetrated markets of Spanish-Speaking Americas. Founded in 1989, Auna has built one of Latin America′s largest modern healthcare platforms that consists of a horizontally integrated network of healthcare facilities and a vertically integrated portfolio of oncological plans and selected general healthcare plans. As of March 31, 2025, Auna's network included 31 healthcare network facilities, consisting of hospitals, outpatient, prevention and wellness facilities with a total of 2,323 beds, and 1.4 million healthcare plans.

For more information visit www.aunainvestors.com

Safe Harbor Statement

This press release contains forward-looking statements. Forward-looking statements convey our current expectations or forecasts of future events. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to differ materially from the forward-looking statements that we make. Forward-looking statements typically are identified by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "project," "plan," "believe," "potential," "continue," "is/are likely to," or other similar expressions. Forward-looking statements that appear in a number of places in this press release include, but are not limited to, statements regarding the intent, belief or current expectations, regarding various matters, including, Leverage Ratio, the expected impact on revenues and profitability of certain initiatives we are pursuing in Mexico, the implementation of the AunaWay and the advancement of the introduction of OncoMexico, our expected long-term financial position and cash flow outlook as a result of certain initiatives we are pursuing related to payors in Colombia, our efficiency initiatives in Peru and our target leverage level. Any or all of our forward-looking statements in this press release may turn out to be inaccurate. Our actual results could differ materially from those contained in forward-looking statements due to a number of factors.

The forward-looking statements in this press release represent our expectations and forecasts as of the date of this press release. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release. For a discussion of the risks facing the Company which could affect whether these forward-looking statements are realized, see our Form 20-F filing with the U.S. Securities and Exchange Commission (the "SEC").

Financial Guidance Disclaimer

Auna′s guidance is based on management's current performance outlook and expected macroeconomic and regulatory conditions in the three countries where the Company operates. Any changes in these conditions could have an impact on the guidance provided.

Auna's financial guidance reflects management's current assumptions regarding numerous evolving factors that are difficult to accurately predict, including those discussed in the Risk Factors set forth in the Company's Form 20-F filed with the SEC. Reconciliations of forward-looking non-IFRS measures, specifically Leverage Ratio guidance, to the relevant forward-looking IFRS measures are not being provided, as the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such guidance and reconciliations. Due to this uncertainty, the Company cannot reconcile projected Leverage Ratio to projected net income without unreasonable effort. The financial guidance constitutes forward-looking statements. For more information, see the "Forward-Looking Statements" section in this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250520776987/en/

IR Contact

Email: contact@aunainvestors.com

Auna Announces 1Q25 Financial Results