Fleury (FLRY3), the renowned Brazilian medical diagnostics company, reported strong performance for the fourth quarter of 2024, announcing a net income of R$ 84 million, reflecting a 3.3% increase from the same period last year. This growth aligns closely with market expectations and signifies the company's resilience amid challenging market conditions.
The company also declared dividends amounting to R$ 254 million, translating to R$ 0.4661 per share. The payout will be made on May 9, 2025, with shareholders eligible if they hold shares by the end of trading on March 6, 2025. Starting March 7, the shares will trade "ex-dividend," meaning new buyers will not be entitled to the payout.
According to Fleury's CEO Jeane Tsutsui, the company's solid financial health is attributable partly to its recent merger with Hermes Pardini, which was concluded in May 2023. The fusion aimed to capture synergies and increase operational efficiency, which already appears to be paying dividends—literally and figuratively. "We continue to gain market share and advance our services," Tsutsui stated, underscoring the company's strategic direction.
For 2024, Fleury's total revenue reached R$ 616.2 million, showcasing significant growth fueled by enhanced offerings and operational improvements. The company's EBITDA totaled R$ 405.5 million for Q4, marking an increase of 7.9%, and the annual EBITDA grew 19.6% to R$ 1.982 billion. The margin remained stable at around 22% for the quarter, but saw an annual increase to 25.8% due to stringent cost management and integration efficiencies from the merger.
Fleury's commitment to enhancing its service capabilities is evident, with notable growth reported across various business segments. The company recorded substantial revenue increases from its at-home healthcare services, which rose by 18.2%, now accounting for roughly 7.7% of its total revenue. Tsutsui expressed optimism about this segment's potential: "There is still growth potential, and we've expanded this service across all our brands."
Looking at the overall growth for 2024, the company not only expanded its revenue stream but also witnessed the added benefit of merging operational strengths with the Hermes Pardini unit. The integration has been characterized by significant enhancements, leading to expectations of over R$ 200 million incremental EBITDA through 2026.
Fleury's CFO, José Antônio Filippo, emphasized the importance of this financial prudence as well. "We're focusing on opportunities within our financial and strategic requirements for any mergers or acquisitions moving forward." The company has made 19 acquisitions since 2017, showcasing its eagerness to grow organically and through strategic partnerships.
Meanwhile, the demand for diagnostic services remains high. Despite recent economic pressures, Tsutsui highlights the company's confidence: "While the macroeconomic environment is challenging, we are still seeing job creation which supports our operations positively. The market for supplementary health insurance remains stable, yet we continue to outperform through focused growth strategies."
Fleury's consistent commitment to shareholder value has led to competitive dividend yields. Over the past ten years, investment of R$ 1,000 in FLRY3 could yield significant returns of R$ 2,350.80, showcasing the effectiveness of dividend reinvestment. This impressive return path continues to attract investor interest, particularly as the company announces its dividend distribution details.
With the strategic focus on both organic and inorganic growth, Fleury stands poised to continue its legacy as a leader in the medical diagnostics industry. The strong end to 2024, along with the outlook for 2025, positions the company for sustained success, enabling it to navigate through potential challenges with investor confidence.