\n| (in thousand of R$)<\/i><\/td>\n | \n 2024<\/b><\/p>\n<\/td>\n | \n 2024 Ex Acquisitions*<\/b><\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n % Chg<\/b><\/p>\n<\/td>\n | \n % Chg Ex Acquisitions<\/b><\/p>\n<\/td>\n | \n \n\u00a0\n<\/p>\n<\/td>\n | \n 2024<\/b><\/p>\n<\/td>\n | \n 2024 Ex Acquisitions*<\/b><\/p>\n<\/td>\n | \n 2023<\/b><\/p>\n<\/td>\n | \n % Chg<\/b><\/p>\n<\/td>\n | \n % Chg Ex Acquisitions<\/b><\/p>\n<\/td>\n<\/tr>\n\n| (a) Net Revenue<\/td>\n | \n \n849,015\n<\/p>\n<\/td>\n | \n \n817,793\n<\/p>\n<\/td>\n | \n \n729,866\n<\/p>\n<\/td>\n | \n \n16.3%\n<\/p>\n<\/td>\n | \n \n12.0%\n<\/p>\n<\/td>\n | | \n\n \n3,304,329\n<\/p>\n<\/td>\n | \n \n3,240,686\n<\/p>\n<\/td>\n | \n \n2,875,913\n<\/p>\n<\/td>\n | \n \n14.9%\n<\/p>\n<\/td>\n | \n \n12.7%\n<\/p>\n<\/td>\n<\/tr>\n | \n(b) Adjusted EBITDA 2<\/sup><\/td>\n| \n \n366,014\n<\/p>\n<\/td>\n | \n \n348,147\n<\/p>\n<\/td>\n | \n \n288,912\n<\/p>\n<\/td>\n | \n \n26.7%\n<\/p>\n<\/td>\n | \n \n20.5%\n<\/p>\n<\/td>\n | | \n\n \n1,455,642\n<\/p>\n<\/td>\n | \n \n1,418,751\n<\/p>\n<\/td>\n | \n \n1,165,678\n<\/p>\n<\/td>\n | \n \n24.9%\n<\/p>\n<\/td>\n | \n \n21.7%\n<\/p>\n<\/td>\n<\/tr>\n | \n| (c) = (b)\/(a) Adjusted EBITDA Margin<\/td>\n | \n \n43.1%\n<\/p>\n<\/td>\n | \n \n42.6%\n<\/p>\n<\/td>\n | \n \n39.6%\n<\/p>\n<\/td>\n | 350 bps<\/td>\n | 300 bps<\/td>\n | | \n\n \n44.1%\n<\/p>\n<\/td>\n | \n \n43.8%\n<\/p>\n<\/td>\n | \n \n40.5%\n<\/p>\n<\/td>\n | 360 bps<\/td>\n | 330 bps<\/td>\n<\/tr>\n | \n| Net income<\/td>\n | \n \n154,279\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \n \n101,886\n<\/p>\n<\/td>\n | \n \n51.4%\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | | \n\n \n648,920\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \n \n405,416\n<\/p>\n<\/td>\n | \n \n60.1%\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n<\/tr>\n | \n| Adjusted Net income<\/td>\n | \n \n193,607\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \n \n164,449\n<\/p>\n<\/td>\n | \n \n17.7%\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | | \n\n \n820,290\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n | \n \n591,124\n<\/p>\n<\/td>\n | \n \n38.8%\n<\/p>\n<\/td>\n | \n \n–\n<\/p>\n<\/td>\n<\/tr>\n | \n*For the Three months period ended December 31, 2024, “2024 Ex Acquisitions” excludes: UNIDOM (October to December, 2024; Closing of UNIDOM was in July 2024).<\/i><\/td>\n<\/tr>\n\n*For the Twelve months period ended December 31, 2024, “2024 Ex Acquisitions” excludes: UNIDOM (July to December, 2024; Closing of UNIDOM was in July 2024).<\/i><\/td>\n<\/tr>\n\n| (2) See more information on “Non-GAAP Financial Measures” (Item 08).<\/i><\/td>\n<\/tr>\n<\/table>\n Message from Management<\/b><\/p>\n We proudly present another year of strong operational and financial performance, reflecting the differentials of our business model and the successful execution of our strategy. We closed the year with significant growth in net revenue and adjusted EBITDA delivering the guidance for 2024. These results underscore the strength of our ecosystem, which integrates Medical Education and Medical Practice Solutions to support the entire physician journey, from undergraduate studies to professional practice.<\/i><\/p>\n Our margin expansion was primarily driven by the integration of UNIMA and FCM Jaboat\u00e3o, completed in 4Q23, the continued ramp-up of the four Mais M\u00e9dicos campuses launched in 3Q22, the operational restructuring in Continuing Education and Medical Practice Solutions, the acquisition of Unidom, and our efforts to control Selling, General and Administrative expenses.<\/i><\/p>\n Furthermore, this year we maintained and reinforced our strategy to consolidate our leadership in providing access to quality medical education in Brazil. This was achieved through the acquisition of Unidom, which added 300 new medical school seats in Salvador, the approval of 80 additional seats at UNIMA Alagoas and 40 at Guanambi, and the reconsideration of 10 seats at Unigranrio in Rio de Janeiro. We also expanded our footprint by signing the acquisition of FUNIC, which will add 60 medical school seats in Contagem, a strategic location in the metropolitan area of Belo Horizonte. With these additions, we will reach 3,653 approved medical school seats.<\/i><\/p>\n We believe that sustainable growth is achieved through operational efficiency and academic excellence. In this regard, we successfully carried out a highly competitive student intake keeping the discipline of tuition adjustment above inflation, for new medical students, reflecting the strength of Afya\u2019s brand and its reputation within the medical and health community. Additionally, we reinforced our Continuing Education and Medical Practice Solutions strategy by launching five new specialization campuses in 2024 and consolidating our Medical Practice Solutions offerings.<\/i><\/p>\n Financially, we maintained robust cash ensuring liquidity to sustain our strategic investments and growth initiatives. Because of our strong cash generation, we are really pleased to announce that we will return part of it as dividends to our investors while maintaining our organic and inorganic growth plans. The Board of Directors has approved a cash dividend payout of 20% of 2024 net income, reflecting our confidence in Afya\u2019s sustainable results.<\/i><\/p>\n These outstanding results enabled another year of guidance achievement and reflect Afya\u2019s consistent growth and operational excellence. This consistency added to another strong intake cycle, pave the foundation for our 2025 guidance: Net Revenue is expected to range between R$ 3,670 million and R$3,770 million, while Adjusted EBITDA is anticipated to be between R$1,620 million and R$1,720 million, excluding any acquisition that may be concluded after the issuance of the guidance. Once again, we are guiding another strong round ahead and proving AFYA\u00b4s resilience and ability to keep delivering solid results with a high predictability.<\/i><\/p>\n We also take immense pride in the significant social impact generated by Afya\u2019s investments in medical education. This commitment led us to calculate our Social Return on Investment (SROI) using robust, globally recognized methodologies. According to our SROI study, every R$1 we invested resulted in R$3.58 in social benefits for the population of the municipalities analyzed. This reflects reduced mortality, increased life expectancy, and positive economic impacts such as wage growth and local financial activity.<\/i><\/p>\n We reaffirm our mission of transforming healthcare through education and technology, offering innovative solutions for developing and training physicians across Brazil. And that is why we are very excited to welcome Dr. Gustavo Meirelles as the Chief Medical Officer (CMO) of Afya. One of his top priorities will be driving innovation, evolving our products, and strengthening relationships within the health industry. With over 25 years of experience as a radiologist, healthcare executive, and entrepreneur, Dr. Meirelles has a proven track record in leadership, research, and consultancy, focusing on transformative changes in healthcare.<\/i><\/p>\n We appreciate the trust of our employees, students, partners, and shareholders. Together, we will continue driving the future of the medical journey in Brazil.<\/i><\/p>\n 1. Key Events in the Quarter<\/b><\/p>\n\n- \nOn December 19th<\/sup>, 2024, Afya announced that it has entered into a share purchase agreement to acquire 100% of the total share capital of Faculdade Masterclass Ltda. (“Faculdade \u00danica de Contagem\u201d or “FUNIC\u201d) at Contagem, State of Minas Gerais. The acquisition will add 60 medical school seats to Afya.\n<\/li>\n<\/ul>\n
\nThe aggregate purchase price is R$100 million, and the Net Debt will be deducted at closing. The price and payment conditions are R$60 million to be paid in cash at the closing date, and R$40 million to be paid in three annual installments adjusted by the Brazilian interbank interest rates (CDI).\n<\/p>\n \nFurthermore, there is a potential for 60 additional seats. If approved by the Ministry of Education (MEC) within 36 months from the closing date, it will result in an additional payment of R$1 million per granted seat, limited to 60 seats.\n<\/p>\n \nAfya expects an EV\/EBITDA of 3.3x at full maturity and post synergies in 2030 with expected Net Revenue of R$52.4 million, of which 100% will come from medicine. With the acquisition, Afya will achieve 3,653 total approved seats.\n<\/p>\n 2. Subsequent Event<\/b><\/p>\n | | | | |