By Brazil Stock Guide – Grupo Fleury SA reported higher first-quarter earnings, with profit, revenue and EBITDA all rising from a year earlier as the Brazilian diagnostics company expanded its B2C business and kept margins broadly stable, according to a company presentation released May 8. The company’s shares trade on Brazil’s B3 under the ticker FLRY3.
Net income rose 12.2% to 201.2 million reais in the first quarter of 2026, while the net margin reached 9.1%, compared with 8.9% a year earlier. Gross revenue increased 10.1% to 2.41 billion reais, driven mainly by the company’s consumer-facing diagnostics operation.
Earnings before interest, taxes, depreciation and amortization climbed 10.7% to 606 million reais. The EBITDA margin was 27.3%, little changed from 27.2% in the same period last year, signaling that Fleury protected profitability while growing revenue.
The B2C segment posted revenue of 1.7 billion reais, up 15.1%, with organic growth of 11.8%. Fleury cited organic gains in Belo Horizonte, Espírito Santo, Goiás, Paraná, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul and São Paulo, as well as inorganic contributions from Confiance and LSL in São Paulo and Hemolab in Minas Gerais.
B2B revenue rose 5.5% to 506.5 million reais, helped by performance in the lab-to-lab business but partly offset by slower growth in hospitals. Revenue from Novos Elos fell 12.8% to 194 million reais, reflecting a tough comparison base after the application of four doses of a high-cost medication in the first quarter of 2025.
Gross profit increased 9.8% to 628.1 million reais, with a gross margin of 28.3%. Operating expenses rose 8.9% to 260.3 million reais, equivalent to 11.7% of net revenue, with the company pointing to a 15-basis-point dilution from expense discipline.
Capital expenditure declined 9.4% to 60.6 million reais. Spending on new units, offer expansion in existing sites and technical areas rose 65.2%, while investments in IT and digital projects fell 37% and spending on diagnostic equipment renewal and maintenance dropped 48.3%.
Operating cash generation fell 17.9% to 264.6 million reais. Fleury said cash conversion was 43.7% of EBITDA in the quarter and noted that the first quarter is seasonally the weakest period of the year for cash conversion.
Return on invested capital reached 17%, excluding the fair-value effect from the business combination with Hermes Pardini, up 300 basis points since the second quarter of 2023. Leverage stood at 1.0 times, below the company’s 3.0-times covenant threshold.
Fleury ended March with 2.27 billion reais in cash and debt maturities spread through 2031. The company reported an average debt maturity of 3.1 years, a cost of CDI plus 0.94 percentage point and a stable AAA.br rating from Moody’s.
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