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Afya Limited is a leading medical education group in Brazil, focusing on providing educational and technological solutions for physicians throughout their careers. The company operates through various segments, offering undergraduate medical education, continuing education programs, and digital services for medical professionals. Afya's offerings are designed to support physicians from their initial education through to ongoing professional development and practice management.
- Undergrad - Provides educational services through undergraduate courses related to medical school, health sciences, and other non-health undergraduate programs, generating revenue primarily from tuition fees.
- Digital Services - Offers digital solutions for all stages of a medical career, including content and technology for medical education, clinical decision software, practice management tools, and more. Revenue is derived from subscriptions, printed books, and e-books.
- Business to Physician - Includes content and technology for medical education, clinical decision software, practice management tools, electronic medical records, physician-patient relationship tools, telemedicine, and digital prescriptions.
- Business to Business - Provides access and demand solutions for healthcare players.
- Continuing Education - Offers specialization programs and graduate courses for physicians, with revenue generated from tuition fees.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Lélio de Souza Junior Executive | VP of Innovation & Digital Services | None | VP since January 2022; previously CEO of Intelie; extensive experience in technology and consulting. | |
Luis André Carpintero Blanco Executive | CFO | None | CFO of Afya since April 2020; previously CFO at OdontoPrev and Vivo S.A.; expertise in corporate finance, M&A, and compliance. | |
Virgilio Deloy Capobianco Gibbon Executive | CEO | None | CEO of Afya since July 2019; previously CEO of Afya Brazil (2016-2019); extensive experience in education and consulting. | View Report → |
Benedikt Dalkmann Board | Board Member | CFO of Bertelsmann Education Group | Board member since May 2022; played a key role in Bertelsmann Education Group's growth and international expansion. | |
Christina Krebs Board | Board Member | Chief People Officer at Bertelsmann Education Group and Relias | Board member since May 2022; expertise in integrating healthcare technology companies and HR leadership. | |
João Paulo Seibel de Faria Board | Board Member, Chair of Audit Committee | CFO of OLX | Board member since August 2020; over 25 years of experience in finance and leadership roles, including at Microsoft and Didi Chuxing. | |
Kay Krafft Board | Co-Chairman of the Board | Founding CEO of Bertelsmann Education Group | Co-Chairman since May 2022; extensive leadership experience at Bertelsmann, including in education and M&A. | |
Marcelo Ken Suhara Board | Board Member | None | Board member since June 2023; recognized as an SEC "audit committee financial expert"; over 26 years of experience in IPO advisory, financial reporting, and auditing. | |
Maria Tereza Azevedo Board | Board Member | Board Member at UOL EdTech, Descomplica, Camino Educação, Open Co, Glorify, and Alice Saúde | Board member since April 2022; investment director at SoftBank; extensive experience in corporate finance and education investments. | |
Miguel Filisbino Pereira de Paula Board | Board Member | Director at Loja do Mecânico; Operating Partner for Crescera Capital and EB Capital investees | Board member since August 2020; over 35 years of experience in HR and corporate governance; expertise in turnaround projects and ESG initiatives. | |
Nicolau Carvalho Esteves Board | Co-Chairman of the Board | Board Member at Emive Participações S.A. | Co-Chairman since May 2022; over 25 years in education; founding shareholder of multiple educational institutions in Brazil. | |
Vanessa Claro Lopes Board | Board Member | Board Member at Lojas Americanas; Member of Fiscal Councils at Cosan S.A., Cosan Logística S.A., and Comgas S.A.; Chair of Audit Committee at Tegma Logistica S.A.; Member of Audit Committees at Embraer S.A. and Lojas Americanas S.A. | Board member since July 2019; over 29 years of experience in corporate governance, auditing, and financial management. |
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Medical Practice Solutions' monthly active users declined 4% this quarter, accelerating from the second quarter; can you provide a detailed plan on how you intend to reverse this trend and when you expect normalization, especially considering the impact of the Portal Afya launch?
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With the deceleration in net revenue growth in the Continuing Education segment this quarter and expectations of flat growth in the next quarter, what specific strategies are you implementing to reignite growth in this segment throughout 2025?
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Given the large number of new medical seats issued and increased competition, how confident are you in maintaining tuition increases above inflation and high enrollment rates, and have you noticed any shifts in demand at specific institutions?
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Considering the optionality of SoftBank's early redemption of debt from May 2026, how do you plan to balance potential debt repayment with your capital allocation priorities, including M&A activities and possible dividend payouts?
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Regarding the margin improvements from restructuring in Continuing Education and Medical Practice Solutions, how sustainable are these gains, and what further operational efficiencies can be achieved to drive additional margin expansion in 2025 and beyond?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Faculdade Única de Contagem (FUNIC) | 2024 | Afya’s acquisition of FUNIC was valued at R$100 million with a mixed payment structure—R$60 million in cash at closing and R$40 million in annual installments—adding 60 medical school seats (with potential for 60 more) and targeting an EV/EBITDA of 3.3x by 2030, supporting its expansion in Contagem. |
Unidom Participaçõs S.A. (Unidompedro and Faculdade Dom Luiz) | 2024 | Afya’s acquisition in Bahia was executed for an aggregate price of R$660 million, with R$347.8 million paid in cash and the remainder in up to 10 annual installments, adding 300 operational medical school seats (125 final seats and 175 conditionally approved seats), strengthening its medical education footprint in key cities. |
Sociedade Educacional e Cultural Sergipe DelRey Ltda. (DelRey) | 2023 | Completed on January 2, 2023, the acquisition was structured for an aggregate price of R$825 million (with R$575 million paid in cash and R$250 million in three installments), adding 340 medical school seats while excluding the UNIT and FITS brands, marking a significant expansion in the Brazilian Northeast. |
Glic | 2022 | Acquired on May 23, 2022, Glic was purchased for an aggregate R$30.6 million (comprising R$21.6 million in cash and an earn-out of up to R$12 million), bolstering Afya’s digital services with a diabetes care and management app used by over 90,000 end-users and 1,100+ physicians. |
CardioPapers | 2022 | Completed on April 5, 2022, the acquisition of CardioPapers involved a R$35.0 million cash payment plus an earn-out of up to R$15.0 million, expanding Afya’s digital ecosystem with a leading cardiology education platform offering multiple specialized courses and content. |
Além da Medicina | 2022 | Acquired on March 4, 2022, this deal was executed for an aggregate value of R$26.8 million (including R$14.95 million in cash and a contingent earn-out up to R$19.2 million), enhancing Afya’s digital educational offerings by adding an online platform boasting over 4,000 subscribers and significant content in medical education. |
Recent press releases and 8-K filings for AFYA.
- Financial Performance: Consolidated Q1 2025 results with net revenue of BRL 936 million (up ~16% YoY), adjusted EBITDA of BRL 492 million (52.5% margin), EPS of BRL 2.79, and net income of BRL 257.0 million .
- Strategic Acquisition: Acquired Faculdade Única de Contagem (FUNIC) on May 7, 2025 at an aggregate price of R$100 million (with R$60M in cash and R$40M in installments, plus R$1M per additional seat), boosting approved medical school seats from 3,593 to 3,653 .
- Dividend & Guidance Update: The Board approved a first dividend of R$129,784 (20% of 2024 net income) and reaffirmed full-year guidance with net revenue between R$3,670Mn and R$3,770Mn and adjusted EBITDA between R$1,620Mn and R$1,720Mn .
- Operational Highlights: The undergrad segment grew with a 15% increase in medical students (26,000 total) and a 4% rise in average tuition to BRL 9,240 .
- Cash Flow & Liquidity: Reported an operating cash flow of BRL 470 million, a reduced net debt of BRL 1,524 million, a cash balance of R$1,154.9 million, and an operating cash conversion ratio of 96.8% .
- Segment & Asset Overview: Detailed performance across Undergraduate, Continuing Education, and Medical Practice Solutions with total assets of R$9,111,874k .
- Net revenue rose by 14.9% to BRL 3,304.3 million with adjusted EBITDA up 25% to BRL 1,455.6 million and a net income of BRL 648.9 million (EPS increased by 62.9%), underscoring robust earnings performance.
- The company expanded its operational metrics with a 13% increase in approved Undergrad seats and significant growth in Continuing Education and Medical Practice Solutions segments, driving its comprehensive business model.
- A 20% cash dividend payout of the 2024 net income was approved, with the payment scheduled for April 4, 2025, demonstrating a commitment to shareholder returns.
- The 2025 guidance projects net revenue between BRL 3,670 million and BRL 3,770 million and adjusted EBITDA between BRL 1,620 million and BRL 1,720 million, supported by ongoing operational efficiencies and strategic investments.
- Q4 2024 financial performance showed revenue growth with net revenue reaching R$849.0MM and adjusted EBITDA climbing to R$366.0MM, reflecting an improvement in the margin to 43.1% compared to 39.6% in 4Q23.
- Net income increased by 51.4% YoY in the quarter, with full-year FY24 net income of R$648.9MM and strong cash flow from operating activities of R$1,453.2MM, underscoring robust operational performance.
- The earnings call also introduced 2025 guidance, with expected net revenue between R$3,670MM and R$3,770MM and adjusted EBITDA ranging from R$1,620MM to R$1,720MM, indicating a positive outlook for the coming year.
- The statements detail total assets of BRL 8,829,539K and net income of BRL 648,920K for the year ended December 31, 2024, reflecting strong operational results.
- A robust capital structure is presented with equity of BRL 4,310,583K against total liabilities of BRL 4,518,956K as of December 31, 2024.
- The report includes extensive disclosures on accounting policies, acquisitions (including the July 2024 Unidom acquisition), and share-based compensation adjustments that impact the financial results.
- Afya Ltd declared its first cash dividend distribution of R$129.8 million, which represents 20% of its consolidated net income of R$648.9 million for the year ended December 31, 2024.
- The dividend, with a dividend per share of R$1.348923, will be paid on April 4, 2025 based on an exchange rate of R$/USD 5.8131 published by the Brazilian Central Bank.
- Q4 2024 performance: Net revenue increased 16.3% to R$849.0 million, with adjusted EBITDA up 26.7% (reaching R$366.0 million) and net income growing 51.4% to R$154.3 million.
- Full-Year 2024 performance: Net revenue rose 14.9% to R$3,304.3 million, adjusted EBITDA increased 24.9% to R$1,455.6 million, and net income surged 60.1% to R$648.9 million.
- Dividend and liquidity: Afya declared a cash dividend of R$129.8 million (20% of full-year net income) and maintained strong liquidity with R$911.0 million in cash and cash equivalents.