Operating Cash Generation was R$322 million, a record for the company's third quarter

SÃO PAULO, Nov. 17, 2023 /PRNewswire/ -- Oncoclínicas & Co. (B3: ONCO3) reported a 23.4% increase in its gross revenue in the third quarter of 2023, reaching R$1.5 billion, another record for the company. The performance, which is entirely organic, is mainly the result of the increase in the number of treatments provided to patients (+14.4%), reflecting the resilience of the cancer treatment segment combined with the gain in market share. In the nine-month period ended in September 30th, the gross revenue reached R$4.4 billion. The gross profit totaled R$495.8 million in 3Q23, up 21.7% on 3Q22 and with a margin of 35.4% higher than that reported last year (35.0%), which demonstrates continued gains in operational efficiency.

"We continued to expand at over 20% a year even without any new acquisitions in the period. 2023 has been a year in which we have keep on delivering all the synergies and value creation initiatives that we said we would deliver over the last two years. All this in line with our thesis and business model that puts the patient at the center of everything", highlights Bruno Ferrari, founder and CEO of Oncoclínicas & Co.

EBITDA Ex-PILP (excluding only the non-cash effect of the long-term incentive plan) totaled R$269.1 million in the 3Q23, 39.2% higher than the R$193.2 million reported in the 3Q22, and with a margin of 19.2%, 2.6 percentage points higher than in the same quarter of the previous year. The EBITDA improvement continues to reflect progress in the integration process of the acquired units, with the capture of efficiency gains and synergies. For the first nine months of the year (9M23), the EBITDA Ex-PILP already totaled R$814.2 million, with a margin of 20.1%.

This was also the fifth consecutive quarter of net profit, which reached R$149.3 million, more than 2.6 times that one reported in the same period of 2022. The net profit for the first nine months of the year totaled R$225.5 million. Operating cash flow (OCF) totaled R$322 million, reflecting another quarter of solid operating performance, active management of the revenue cycle, inventories and intense work with the suppliers. For the 9M23 period, the OCF / EBITDA conversion is close to 40%. Even after the debt service and all the maintenance Capex, the cash generation was R$87 million in 3Q23.

The number of treatments provided to patients increased by 14.4% in 3Q23 compared to 3Q22, reaching a total of 161.8 thousand. The volume of treatments over the last 12 months totals around 615 thousand.

According to Rodrigo Medeiros, Executive Vice-President of Oncoclínicas & Co., "Despite a scenario that is still adverse for the health sector, with our partners - the health plans and operators - recovering from record claims rates, we have demonstrated that it is possible to deliver superior results by seeking more efficiency in-house, in operations and in optimizing the working capital cycle".

Cristiano Camargo, CFO and Director of Investor Relations, adds: "We continue to pay close attention to two important value levers: (I) moving forward with internal corporate reorganizations to optimize the effective tax rate with an impact on net income and (II) optimizing our working capital cycle, with an effect on the conversion of EBITDA into operating cash flow. We have been able to consistently deliver both".

Subsequent events in the quarter included investments and partnerships such as: strategic agreement with Unimed Recife to coordinate the oncology care line for the next 30 years; acquisition of a further 25% shareholding in the partnership with Unimed Nacional in the oncology units in São Paulo, Brasília and Salvador, now reaching 75%; approval by CADE of the 60-years agreement with Grupo Santa for joint operations in Brasília; and inauguration of the first Oncoclínicas Cancer Center in partnership with Dana-Farber, the first operation outside the United States to be certified as an International Collaborative Member of the Dana-Farber Cancer Institute.

The information is contained in the data released to the market on Monday (11/13) by

Oncoclínicas (https://ri.grupooncoclinicas.com/).