Afya Limited Stock Price, News & Analysis

Afya (Nasdaq: AFYA; B3: A2FY34), Brazil's leading medical education group and medical practice solutions provider, has announced a commitment to provide 5 million free health consultations by 2030. This initiative aligns with Sustainable Development Goal 3 (SDG 3), which aims to ensure healthy lives and promote well-being for all.

To achieve this goal, Afya plans to expand its network of outpatient clinics from 20 to 27, offering various medical specialties including psychology, physiotherapy, and dentistry. Additionally, the company will incorporate 16 undergraduate units into the Afya Digital Health Network, a telemedicine project facilitating knowledge exchange among professors, students, and preceptors.

Virgilio Gibbon, Afya's CEO and SDG 3 Impact Leader, emphasized the company's commitment to aligning business objectives with meaningful purpose, generating lasting impact on served populations, and promoting long-term improvements in community health and quality of life.

Afya (Nasdaq: AFYA; B3: A2FY34), Brazil's leading medical education group, has announced a positive outcome from the Ministry of Education (MEC) regarding Universidade do Grande Rio Professor José de Souza Herdy (Unigranrio). The MEC has granted Unigranrio's request for reconsideration, resulting in the reestablishment of 10 medical seats in Rio de Janeiro. This decision brings Unigranrio's total medical seats to 318 across both campuses. Consequently, Afya's total approved medical seats have increased to 3,593. This development underscores Afya's commitment to excellence in medical education and reinforces its position as a leading medical education provider in Brazil.

Afya (Nasdaq: AFYA; B3: A2FY34), Brazil's leading medical education and practice solutions provider, has received the full R$500 million disbursement from the International Finance (IFC). This loan, IFC's first sustainability-linked loan in the education sector based on social targets, will support Afya's expansion program. The loan's pricing is tied to Afya's performance in social key performance indicators, including free medical consultations and education quality metrics.

The loan terms include repayment in seven semi-annual installments starting April 2027, with an interest rate of Brazilian CDI plus 1.2%. Notably, the rate may be reduced by 15 basis points if Afya achieves the specified sustainability KPIs, incentivizing the company's commitment to social impact alongside its business growth.

Afya (Nasdaq: AFYA; B3: A2FY34) has announced its financial results for Q2 and the first half of 2024. Notable highlights include:

For Q2 2024:

• Net Revenue increased by 13.7% YoY to R$809.9 million.
• Adjusted EBITDA grew by 28.2% YoY to R$343.8 million, with a margin of 42.5%, up 490 bps YoY.
• Net Income surged 85.3% YoY to R$162.2 million; Adjusted Net Income rose by 59.5% YoY to R$210.3 million, with Adjusted EPS up 61.8%.

In H1 2024:

• Net Revenue increased by 13.5% YoY to R$1,614.1 million.
• Adjusted EBITDA grew by 23.9% YoY to R$741.7 million, with a margin of 45.9%, up 380 bps YoY.
• Net Income increased by 80.5% YoY to R$370.5 million; Adjusted Net Income rose by 54.7% YoY to R$461.3 million, with Adjusted EPS up 56.9%.

Afya has approved 80 additional seats at UNIMA Alagoas and closed the acquisition of Unidom, adding 300 seats. The company's ecosystem now includes ~320,000 users.

Afya (Nasdaq: AFYA; B3: A2FY34), Brazil's leading medical education and practice solutions provider, has secured a sustainability-linked loan of up to R$500 million from the International Finance (IFC). This financing, IFC's first in the education sector tied to social targets, will support Afya's expansion through acquisitions.

The loan's pricing is linked to Afya achieving specific social key performance indicators, including free medical consultations for the community and education quality metrics. The loan terms include:

• Repayment in 7 semi-annual installments starting April 2027
• Interest rate: Brazilian CDI rate plus 1.2%
• Potential 15 bps rate reduction if sustainability targets are met

This strategic move underscores Afya's commitment to sustainable growth and social impact in Brazil's healthcare education sector.

Afya (Nasdaq: AFYA; B3: A2FY34), Brazil's leading medical education and practice solutions provider, has released its 2023 Sustainability Report. The report adheres to Global Reporting Initiative (GRI) standards and aligns with the Sustainable Development Goals (SDGs). It also incorporates indicators from the Sustainability Accounting Standards Board (SASB) and elements from the International Integrated Reporting Council (IIRC).

The report includes results from Afya's fourth Greenhouse Gas (GHG) Emissions Inventory. Both the sustainability report and the GHG inventory have been independently audited by KPMG. This comprehensive document showcases Afya's sustainability journey throughout 2023, emphasizing its commitment to transparent and responsible business practices in the medical education sector.

Afya (Nasdaq: AFYA; B3: A2FY34) has announced that the Secretary of Regulation and Supervision of Higher Education of Brazil's Ministry of Education has approved an increase of 80 medical seats at Centro Universitário de Maceió (UNIMA Alagoas), totaling 220 seats at this institution.

This expansion will incur an additional payment of R$ 1.25 million per seat, adjusted by IPCA from January 2, 2023, until the payment date. This move contributes to Afya's total of 3,583 approved seats, reinforcing its position as a leading medical education provider in Brazil.

Afya has completed the acquisition of Unidompedro and Faculdade Dom Luiz, expanding its presence in Salvador, Brazil. The acquisition brings 300 operational medical school seats, with 125 fully authorized and 175 pending final judicial approval. Afya paid R$ 347.8 million upfront and will pay R$ 312.2 million over ten years, contingent on authorization maintenance. The purchase price could be adjusted based on legal outcomes. Projected Net Revenue for 2024 is R$ 110.5 million, growing to R$ 267 million by 2027. The estimated EV/EBITDA at maturity is 4.2x post synergies.

Afya (Nasdaq: AFYA; B3: A2FY34), a leading medical education group in Brazil, announced the resignation of Mrs. Shobhna Mohn from its Board of Directors, effective June 30, 2024. Mohn's departure is unrelated to Afya’s operations or practices. During her tenure, she contributed significantly to Afya's growth, supporting its journey to becoming a top medical education and practice solutions provider in Brazil. Afya highlighted her strategic insights and leadership as pivotal to its success. The company has no immediate plans to fill her position. The board remains committed to strong governance with diverse skills and experience.