AUNA S.A. Annual Report - How They Did This Year

I’m putting together a plain-English guide to help you understand AUNA S.A.’s performance. My goal is to turn complex financial filings into clear information so you can decide if this company fits your investment strategy.

1. What does this company do?

AUNA provides healthcare in Mexico, Colombia, and Peru. They operate as a "one-stop shop," running hospitals, clinics, and cancer centers while also selling private health insurance. Because they manage both the care and the coverage, they keep more of the healthcare dollar within their own system. They earn money by providing medical services and collecting insurance premiums.

2. Major Wins and Operational Changes

AUNA is simplifying its business structure. In 2023, they moved their headquarters to Luxembourg. More recently, they combined several cancer and lab units into one entity called Promotora Médica Las Américas (PMLA).

This consolidation cuts administrative clutter and makes it easier to track the profit of each business unit. It helps AUNA manage its oncology and diagnostic services more efficiently across the region, providing a clearer view of the company's core performance.

3. Financial Health and "Moving Parts"

AUNA uses specific metrics to track performance by focusing on core operations:

• Medical Loss Ratio (MLR): This measures how much of the insurance premiums they collect goes toward patient care versus administrative costs. A lower, stable ratio indicates a healthy, efficient insurance business.
• Factoring: AUNA sells unpaid customer invoices to banks for immediate cash. The cost of this rose from S/ 14.4 million in 2023 to S/ 20.3 million in 2025. This reflects a strategic choice to prioritize immediate cash flow, ensuring they have the funds needed for daily operations rather than waiting for slow insurance payments.

4. What to Watch (Risks)

Investing in AUNA comes with specific challenges to keep in mind:

• Rising Costs: Healthcare expenses are increasing. In 2024, medical costs jumped by 13.3% in Mexico, 8.0% in Peru, and 12.2% in Colombia. Because AUNA sells prepaid plans at fixed prices, they cannot always raise rates immediately to cover these spikes, which can squeeze their profit margins.
• Currency & Politics: AUNA operates in emerging markets. They report financials in U.S. Dollars but earn revenue in local currencies. If local currencies weaken against the dollar, their revenue appears lower, and their dollar-based debt becomes more expensive to service.
• Governance: AUNA uses a "dual-class" share structure. A single shareholder, Enfoca, holds most of the voting power. This means individual investors have limited influence over board appointments or major strategic decisions.
• Reputation: The company relies on its brand to attract patients and doctors. Negative publicity regarding patient care can impact patient volume and lead to increased regulatory scrutiny.

Final Thought for Your Strategy: When considering AUNA, weigh their ability to control the entire healthcare experience—from insurance to treatment—against the reality of operating in volatile emerging markets. If you are comfortable with the governance structure and the risks associated with currency fluctuations, the company’s focus on regional consolidation and operational efficiency may be the key factors to watch in the coming year.