Cover
Cover | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2023 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-38992 |
Entity Registrant Name | AFYA LIMITED |
Entity Central Index Key | 0001771007 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Alameda Oscar Niemeyer |
Entity Address, Address Line Two | No. 119 |
Entity Address, City or Town | Minas Gerais |
Entity Address, Country | BR |
Entity Address, Postal Zip Code | 504 |
Title of 12(b) Security | Class A common shares, par value US$0.00005 per share |
Trading Symbol | AFYA |
Security Exchange Name | NASDAQ |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Document Financial Statement Error Correction [Flag] | false |
ICFR Auditor Attestation Flag | true |
Auditor Firm ID | 1448 |
Auditor Name | ERNST & YOUNG |
Auditor Location | Belo Horizonte, Brazil |
Class A Ordinary Shares [member] | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 47,920,068 |
Class B Ordinary Shares [member] | |
Entity Addresses [Line Items] | |
Entity Common Stock, Shares Outstanding | 45,802,763 |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | Alameda Oscar Niemeyer |
Entity Address, Address Line Two | No. 119 |
Entity Address, City or Town | Minas Gerais |
Entity Address, Country | BR |
Entity Address, Postal Zip Code | 504 |
City Area Code | 55 |
Local Phone Number | 3515-7550 |
Contact Personnel Name | Virgilio Deloy Capobianco Gibbon |
Contact Personnel Email Address | ir@afya.com.br |
Consolidated statements of fina
Consolidated statements of financial position - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | R$ 553030 | R$ 1093082 |
Trade receivables | 546,438 | 452,831 |
Inventories | 1,382 | 12,190 |
Recoverable taxes | 43,751 | 27,809 |
Other assets | 58,905 | 51,745 |
Total current assets | 1,203,506 | 1,637,657 |
Non-current assets | ||
Trade receivables | 39,485 | 42,568 |
Other assets | 117,346 | 191,756 |
Investment in associate | 51,834 | 53,907 |
Property and equipment | 608,685 | 542,087 |
Right-of-use assets | 767,609 | 690,073 |
Intangible assets | 4,796,016 | 4,041,491 |
Total non-current assets | 6,380,975 | 5,561,882 |
Total assets | 7,584,481 | 7,199,539 |
Current liabilities | ||
Trade payables | 108,222 | 71,482 |
Loans and financing | 179,252 | 145,202 |
Lease liabilities | 36,898 | 32,459 |
Accounts payable to selling shareholders | 353,998 | 261,711 |
Notes payable | 62,176 | |
Advances from customers | 153,485 | 133,050 |
Labor and social obligations | 192,294 | 154,518 |
Taxes payable | 27,765 | 26,221 |
Income taxes payable | 3,880 | 16,151 |
Other liabilities | 2,773 | 2,719 |
Total current liabilities | 1,058,567 | 905,689 |
Non-current liabilities | ||
Loans and financing | 1,621,523 | 1,737,699 |
Lease liabilities | 837,671 | 737,066 |
Accounts payable to selling shareholders | 212,869 | 266,967 |
Taxes payable | 88,198 | 92,888 |
Provision for legal proceedings | 104,361 | 195,854 |
Other liabilities | 18,280 | 13,218 |
Total non-current liabilities | 2,882,902 | 3,043,692 |
Total liabilities | 3,941,469 | 3,949,381 |
Equity | ||
Share capital | 17 | 17 |
Additional paid-in capital | 2,365,200 | 2,375,344 |
Treasury shares | (299,150) | (304,947) |
Share-based compensation reserve | 155,073 | 123,538 |
Retained earnings | 1,380,365 | 1,004,886 |
Equity attributable to equity holders of the parent | 3,601,505 | 3,198,838 |
Non-controlling interests | 41,507 | 51,320 |
Total equity | 3,643,012 | 3,250,158 |
Total liabilities and equity | R$ 7584481 | R$ 7199539 |
Consolidated statements of inco
Consolidated statements of income and comprehensive income - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Profit or loss [abstract] | |||
Revenue | R$ 2875913 | R$ 2329057 | R$ 1719371 |
Cost of services | (1,109,813) | (859,552) | (652,300) |
Gross profit | 1,766,100 | 1,469,505 | 1,067,071 |
Selling, general and administrative expenses | (1,014,684) | (798,153) | (622,615) |
Other income (expenses), net | 15,645 | (7,252) | (3,561) |
Operating income | 767,061 | 664,100 | 440,895 |
Finance income | 110,642 | 102,042 | 64,566 |
Finance expenses | (457,616) | (349,893) | (243,796) |
Finance result | (346,974) | (247,851) | (179,230) |
Share of income of associate | 9,495 | 12,184 | 11,797 |
Income before income taxes | 429,582 | 428,433 | 273,462 |
Income taxes expenses | (24,166) | (35,677) | (31,179) |
Net income | 405,416 | 392,756 | 242,283 |
Other comprehensive income | |||
Total comprehensive income | 405,416 | 392,756 | 242,283 |
Income attributable to | |||
Equity holders of the parent | 386,324 | 373,569 | 223,326 |
Non-controlling interests | 19,092 | 19,187 | 18,957 |
Total comprehensive income | R$ 405416 | R$ 392756 | R$ 242283 |
Basic earnings per share | |||
Per common share | R$ 4.30 | R$ 4.14 | R$ 2.39 |
Diluted earnings per share | |||
Per common share | R$ 4.27 | R$ 4.12 | R$ 2.37 |
Consolidated statements of chan
Consolidated statements of changes in equity - BRL (R$) R$ in Thousands | Issued capital [member] | Additional paid-in capital [member] | Treasury shares [member] | Reserve of share-based payments [member] | Retained earnings [member] | Equity attributable to owners of parent [member] | Non-controlling interests [member] | Total |
Beginning balance, value at Dec. 31, 2020 | R$ 17 | R$ 2323488 | R$ 50724 | R$ 407991 | R$ 2782220 | R$ 51560 | R$ 2833780 | |
IfrsStatementLineItems [Line Items] | ||||||||
Net income | 223,326 | 223,326 | 18,957 | 242,283 | ||||
Total comprehensive income | 223,326 | 223,326 | 18,957 | 242,283 | ||||
Capital increase | 74,500 | 74,500 | 74,500 | |||||
Treasury shares | (213,722) | (213,722) | (213,722) | |||||
Treasury shares transferred from exercise of options | (21,861) | 55,197 | 33,336 | 33,336 | ||||
Treasury shares transferred from shares contribution on business combinations | (783) | 5,895 | 5,112 | 5,112 | ||||
Share-based compensation | 43,377 | 43,377 | 43,377 | |||||
Dividends declared | (18,648) | (18,648) | ||||||
Ending balance, value at Dec. 31, 2021 | 17 | 2,375,344 | (152,630) | 94,101 | 631,317 | 2,948,149 | 51,869 | 3,000,018 |
IfrsStatementLineItems [Line Items] | ||||||||
Net income | 373,569 | 373,569 | 19,187 | 392,756 | ||||
Total comprehensive income | 373,569 | 373,569 | 19,187 | 392,756 | ||||
Treasury shares | (152,317) | (152,317) | (152,317) | |||||
Share-based compensation | 29,437 | 29,437 | 29,437 | |||||
Dividends declared | (19,736) | (19,736) | ||||||
Ending balance, value at Dec. 31, 2022 | 17 | 2,375,344 | (304,947) | 123,538 | 1,004,886 | 3,198,838 | 51,320 | 3,250,158 |
IfrsStatementLineItems [Line Items] | ||||||||
Net income | 386,324 | 386,324 | 19,092 | 405,416 | ||||
Total comprehensive income | 386,324 | 386,324 | 19,092 | 405,416 | ||||
Treasury shares | (12,369) | (12,369) | (12,369) | |||||
Share-based compensation | 31,535 | 31,535 | 31,535 | |||||
Acquisition of non-controlling interests | (10,845) | (10,845) | (10,155) | (21,000) | ||||
Restricted shares transferred to executives | (7,491) | 5,722 | (1,769) | (1,769) | ||||
Treasury shares transferred to executives from exercise of stock options | (2,653) | 12,444 | 9,791 | 9,791 | ||||
Dividends declared | (18,750) | (18,750) | ||||||
Ending balance, value at Dec. 31, 2023 | R$ 17 | R$ 2365200 | R$ 299150 | R$ 155073 | R$ 1380365 | R$ 3601505 | R$ 41507 | R$ 3643012 |
Consolidated statements of cash
Consolidated statements of cash flows - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | |||
Income before income taxes | R$ 429582 | R$ 428433 | R$ 273462 |
Adjustments to reconcile income before income taxes | |||
Depreciation and amortization | 289,511 | 206,220 | 154,220 |
Write-off of property and equipment | 1,910 | 1,697 | 1,604 |
Write-off of intangible assets | 413 | 25 | 2,374 |
Allowance for expected credit losses | 74,552 | 42,708 | 47,819 |
Share-based compensation expense | 31,535 | 31,274 | 43,377 |
Net foreign exchange differences | 681 | 852 | 17,973 |
Accrued interest | 285,447 | 200,081 | 108,437 |
Accrued lease interest | 100,849 | 88,571 | 67,212 |
Share of income of associate | (9,495) | (12,184) | (11,797) |
Provision (reversal) for legal proceedings | (56,825) | (766) | 10,664 |
Changes in assets and liabilities | |||
Trade receivables | (131,336) | (129,165) | (79,665) |
Inventories | 10,947 | (363) | (3,720) |
Recoverable taxes | (15,353) | (2,230) | (2,327) |
Other assets | 77,480 | (1,048) | (19,425) |
Trade payables | 24,500 | 9,975 | 14,479 |
Taxes payable | 3,278 | (3,915) | (14,902) |
Advances from customers | (17,892) | 8,387 | 36,009 |
Labor and social obligations | 31,525 | 21,247 | 23,449 |
Other liabilities | (42,542) | (12,811) | (2,693) |
Total | 1,088,767 | 876,988 | 666,550 |
Income taxes paid | (45,144) | (33,089) | (35,683) |
Net cash flows from operating activities | 1,043,623 | 843,899 | 630,867 |
Investing activities | |||
Acquisition of property and equipment | (118,435) | (168,132) | (125,869) |
Acquisition of intangibles assets | (126,993) | (128,892) | (150,931) |
Dividends received | 9,900 | 6,754 | 11,770 |
Acquisition of non-controlling interest | (21,000) | ||
Acquisition of subsidiaries, net of cash acquired | (815,005) | (277,649) | (1,005,017) |
Payments of interest from acquisition of subsidiaries and intangibles | (71,518) | (23,550) | (12,108) |
Restricted cash | 8,103 | ||
Net cash flows used in investing activities | (1,143,051) | (591,469) | (1,274,052) |
Financing activities | |||
Payments of principal of loans and financing | (112,630) | (1,791) | (107,766) |
Payments of interest of loans and financing | (175,889) | (116,587) | (50,310) |
Proceeds from loans and financing | 5,288 | 496,885 | 809,539 |
Payments of lease liabilities | (31,473) | (28,511) | (20,075) |
Payments of interest of lease liabilities | (103,911) | (85,001) | (67,676) |
Treasury shares buy back | (12,369) | (152,317) | (213,722) |
Proceeds from exercise of stock options | 9,791 | 33,336 | |
Dividends paid to non-controlling shareholders | (18,750) | (19,736) | (18,648) |
Net cash flows generated (used) in financing activities | (439,943) | 92,942 | 364,678 |
Net foreign exchange differences | (681) | (852) | (17,973) |
Net increase (decrease) in cash and cash equivalents | (540,052) | 344,520 | (296,480) |
Cash and cash equivalents at the beginning of the year | 1,093,082 | 748,562 | 1,045,042 |
Cash and cash equivalents at the end of the year | R$ 553030 | R$ 1093082 | R$ 748562 |
Corporate information
Corporate information | 12 Months Ended |
Dec. 31, 2023 | |
Corporate Information | |
Corporate information | Corporate information Afya Limited (“Afya”), collectively with its subsidiaries referred to as the “Company”, is a holding company incorporated under the laws of the Cayman Islands on March 22, 2019. The Company completed its initial public offering (IPO) on July 19, 2019, and its shares are listed on the Nasdaq under the symbol “AFYA”. The Company’s ultimate parent company is Bertelsmann SE& Co. KGaA (“Bertelsmann”), as a result of Bertelsmann’s acquisition of control on May 5, 2022. The Company is formed by a network of higher education and post-graduate institutions focused on medical schools located in 19 Brazilian States forming the largest educational group by the number of medical seats in the country. In non-regulated education, Afya provides services that comprise the development and sale of electronically distributed educational courses on medicine science, related printed and soft skills educational content. The Company also offers solutions to empower the physicians in their daily routine including supporting clinic decisions through mobile app subscription, delivering practice management tools through a SaaS (“Software as a Service”) model and supporting the patient-physician relationship. During the year ended December 31, 2022, the Ministry of Education (“MEC”) authorized the operations of 200 seats of medical schools, under the Mais Médicos II program across four medical schools. Each medical school will contribute with 50 seats. In March 2022, MEC authorized the increase of 28 seats of Centro Universitário São Lucas, located in the city of Ji-Parana, State of Rondônia and 64 medical seats of Faculdade Santo Agostinho, located in the city of Itabuna, State of Bahia. These operations of such medical schools and additional seats started between the second semester of 2022 and first semester of 2023. In November 2021, MEC authorized the operation of 120 medical school seats in Garanhuns, in the city of Garanhuns, State of Pernambuco. These operations of the medical school started in the second semester of 2022. Bertelsmann increases stake in Afya On May 5, 2022, Afya was notified of the closing of the transaction where Bertelsmann SE& Co. KGaA, or “Bertelsmann” acquired 6,000,000 57.5 33.0 31.0 18.0 Acquisitions On January 2, 2023, Afya Participações S.A. (hereafter referred to as Afya Brazil”), a wholly owned subsidiary of the Company, acquired . (“DelRey”). DelRey is a post-secondary education institution with governmental authorization to offer on-campus, undergraduate degrees and graduate programs in medicine and health, as well as other courses, and . See Note 5. During the year ended December 31, 2022, Afya Brazil entered into business combinations transactions for the acquisition of three entities under the Digital segment. The aggregate consideration transferred was R$ 99,399 67,381 During the year ended December 31, 2021, Afya Brazil entered into business combinations transactions for the acquisition of two entities under the Undergrad segment and four entities under the Digital segment. The aggregate consideration transferred was R$ 1,234,460 842,197 Conflicts worldwide During 2022 and 2023, international conflicts with potential large scale occurred, including Russia and Ukraine and Israel and Hamas. Those conflicts trigger a number of IFRS accounting considerations affecting the financial statements. The Company’s operations are focused in Brazil and was not directly impacted by such conflicts. However, the continuous development of such conflicts may impact entities other than those with direct interests in the involved countries, for instance, as a result of exposure to fluctuations in commodity prices and foreign exchange rates, which may impact inflation, as well as the possibility of economic sanctions against such countries. As of the date of these consolidated financial statements, both conflicts mentioned above have not significantly impacted Afya’s operations and results. |
Material accounting policies
Material accounting policies | 12 Months Ended |
Dec. 31, 2023 | |
Material Accounting Policies | |
Material accounting policies | 2 Material accounting policies 2.1 Basis for preparation of the consolidated financial statements The Company’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and considers the assumption that the Company will continue in operation for the foreseeable future. The consolidated financial statements have been prepared on a historical cost basis, except for contingent consideration (earn-outs) that have been measured at fair value. Afya Limited is a holding company, as such the primary source of revenue derives from its interest on the operational companies in Brazil. As result, the Brazilian Real has been determined as the Company’s functional currency. The consolidated financial statements are presented in Brazilian reais (“BRL” or “R$”), which is the Company’s functional and presentation currency. All amounts are rounded to the nearest thousand. The Company segregated the payments of principal and interest of loans and financing, lease liabilities, notes payable and accounts payables to selling shareholders in the consolidated statements of cash flows for the year ended December 31, 2023, in accordance with the provisions set forth in IAS 7 – Statement of Cash Flows. As a result, Management revised, retrospectively, the prior periods consolidated statements of cash flows for the years ended December 31, 2022 and 2021, for comparative purposes. The Company assessed the materiality of this matter and, based on an analysis of quantitative and qualitative considerations, determined that the segregation of payments of principal and interest on prior periods over such transactions is not material to its consolidated financial statements. However, even if it is not material, the segregation of payments of principal and interest regarding such transactions for the years ended December 31, 2022 and 2021 are appropriate for the users of the consolidated financial statements, considering the comparability of such information over the years presented. The payments of interest of loans and financing, lease liabilities, notes payable and accounts payables to selling shareholders are classified within the consolidated statements of cash flows under the same activities of which the payments of principal are classified. As a result, no change occurred in the net cash flows used in investing activities and net cash flows generated (used) in financing activities in the consolidated statements of cash flows for the years ended December 31, 2022 and 2021. These consolidated financial statements as of and for the year ended December 31, 2023 were approved by the Board of Directors for issuance on March 14, 2024. 2.2 Basis consolidation The table below is a list of the Company’s subsidiaries and associate: Schedule of Company’s subsidiaries and associate Direct and indirect interest Name Main activities Location Investment type December 31, 2023 December 31, 2022 Afya Participações S.A. (“Afya Brazil”) Holding Nova Lima - MG Subsidiary 100 100 Instituto Tocantinense Presidente Antônio Carlos Porto S.A. - (“ITPAC Porto”) Undergraduate degree programs Porto Nacional - TO Subsidiary 100 100 Instituto Tocantinense Presidente Antônio Carlos S.A. - (“ITPAC Araguaína”) Undergraduate degree programs Araguaína - TO Subsidiary 100 100 União Educacional do Vale do Aço S.A. - (“UNIVAÇO”) Medicine undergraduate degree program Ipatinga - MG Subsidiary 100 100 IPTAN - Instituto de Ensino Superior Presidente Tancredo de Almeida Neves S.A. (“IPTAN”) Undergraduate degree programs São João Del Rei - MG Subsidiary 100 100 Instituto de Educação Superior do Vale do Parnaíba S.A. (“IESVAP”) Undergraduate degree programs Parnaíba - PI Subsidiary 80 80 Centro de Ciências em Saúde de Itajubá S.A. (“CCSI”) (vi) Medicine undergraduate degree program Itajubá - MG Subsidiary 75 60 Instituto de Ensino Superior do Piauí S.A. (“IESP”) Undergraduate and graduate degree programs Teresina - PI Subsidiary 100 100 Centro Integrado de Saúde de Teresina (“CIS”) (v) Outpatient care Teresina - PI Subsidiary - 100 FADEP - Faculdade Educacional de Pato Branco Ltda. (“FADEP”) Undergraduate degree programs Pato Branco - PR Subsidiary 100 100 Medcel Editora e Eventos S.A. (“Medcel”) Medical education content São Paulo - SP Subsidiary 100 100 Instituto Educacional Santo Agostinho S.A. (“FASA”) Undergraduate degree programs Montes Claros - MG Subsidiary 100 100 ESMC Educação Superior Ltda. (“ESMC”) (iii) Undergraduate degree programs Montes Claros - MG Subsidiary - 100 Instituto de Pesquisa e Ensino Médico do Estado de Minas Gerais Ltda. (“IPEMED”) Graduate Belo Horizonte - MG Subsidiary 100 100 Instituto Paraense de Educação e Cultura Ltda. (“IPEC”) Medicine degree programs Marabá - PA Subsidiary 100 100 Sociedade Universitária Redentor S.A. (“UniRedentor”) Undergraduate and graduate degree programs Itaperuna - RJ Subsidiary 100 100 Centro de Ensino São Lucas Ltda. (“UniSL”) Undergraduate degree programs Porto Velho - RO Subsidiary 100 100 Peb Med Instituição de Pesquisa Médica e Serviços Ltda. (“PebMed”) Content and clinical tools and online platform Rio de Janeiro - RJ Subsidiary 100 100 Sociedade de Educação, Cultura e Tecnologia da Amazônia S.A. - (“FESAR”) Undergraduate degree programs Redenção - PA Subsidiary 100 100 Centro Superior de Ciências da Saúde S/S Ltda. (“FCMPB”) Medicine degree programs João Pessoa - PB Subsidiary 100 100 iClinic Desenvolvimento de Software Ltda. (“iClinic”) Electronic Medical Record, Clinical Management System Ribeirão Preto - SP Subsidiary 100 100 Medicinae Solutions S.A. (“Medicinae”) Healthcare payments and financial services Rio de Janeiro - RJ Subsidiary 100 100 Medical Harbour Aparelhos Médico Hospitalares e Serviços em Tecnologia Ltda. (“Medical Harbour”) Educational health and medical imaging Florianópolis - SC Subsidiary 100 100 Cliquefarma Drogarias Online Ltda. (“Cliquefarma”) Online platform São Paulo - SP Subsidiary 100 100 Shosp Tecnologia da Informação Ltda. (“Shosp”) Electronic Medical Record, Clinical Management System Rio de Janeiro - RJ Subsidiary 100 100 Sociedade Padrão de Educação Superior Ltda. (“UnifipMoc”) Undergraduate degree programs Montes Claros - MG Subsidiary 100 100 Núcleo de Atenção à Saúde e de Práticas Profissionalizantes (“NASPP) (iv) Outpatient care Montes Claros - MG Subsidiary - 100 Companhia Nilza Cordeiro Herdy de Educação e Cultura (“Unigranrio”) Undergraduate and graduate degree programs Duque de Caxias - RJ Subsidiary 100 100 Policlínica e Centro de Estética Duque de Caxias Ltda. (“Policlínica”) Outpatient care Duque de Caxias - RJ Subsidiary 100 100 Sociedade Educacional de Palhoça S/A Ltda. (“SOCIESP”) (ii) Basic Education Palhoça - SC Subsidiary - 100 Instituto de Ensino Superior de Palhoça S/S Ltda. (“IESP PALHOÇA”) (ii) Undergraduate degree programs Palhoça - SC Subsidiary - 100 RX PRO Soluções de Tecnologia Ltda. (“RX PRO”) Marketing for pharmaceutical industry São Paulo - SP Subsidiary 100 100 RX PRO LOG Transporte e Logística Ltda. (“RX PRO LOG”) Marketing for pharmaceutical industry São Paulo - SP Subsidiary 100 100 BMV Atividades Médicas Ltda. (“Além da Medicina”) Medical education content São Paulo - SP Subsidiary 100 100 Cardiopapers Soluções Digitais Ltda. (“CardioPapers”) Medical education content Recife - PE Subsidiary 100 100 Quasar Telemedicina Desenvolvimento de Sistemas Computacionais Ltda. (“Glic”) Patient physician relationship Barueri - SP Subsidiary 100 100 Sociedade Educacional e Cultural Sergipe DelRey Ltda. (“DelRey”) (i) Undergraduate degree programs Maceió - AL Subsidiary 100 - União Educacional do Planalto Central S.A. (“UEPC”) Undergraduate degree programs Brasília - DF Associate 30 30 (i) See Note 5 for further details of the business combination in 2023. (ii) IESP was merged by Unigranrio and SOCIESP had its operations closed down, both in January 2023. (iii) ESMC was merged with UnifipMoc in February 2023. (iv) NASPP was merged with UnifipMoc in July 2023. (v) CIS was merged with IESP in December 2023. (vi) Acquisition The financial information of the acquired subsidiaries is included in the Company’s consolidated financial statements beginning on the respective acquisition dates. The Company consolidates the financial information for all entities it controls. Control is achieved when the Company is exposed to, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and it ceases when the Company loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Company gains control until the date the Company ceases to control the subsidiary. When necessary, adjustments are made to the financial statements of subsidiaries in order to bring their accounting policies in line with the Company’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction. If the Company loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resulting gain or loss is recognized in the statement of income. Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statements of financial position, consolidated statements of income and comprehensive income and consolidated statements of changes in equity. 2.3 Summary of material accounting policies This note provides a description of the material accounting policies adopted in the preparation of these consolidated financial statements in addition to other policies that have been disclosed in other notes to these consolidated financial statements. These policies have been consistently applied to all periods presented. The accounting policies have been consistently applied to all consolidated companies. a) Business combinations and goodwill Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Company elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and included in selling, general and administrative expenses. When the Company acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as of the acquisition date. Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Company re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognized in the consolidated statement of income. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquire are assigned to those units. Where goodwill has been allocated to a cash-generating unit (CGU) and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained. b) Current versus non-current classification The Company presents assets and liabilities in the statement of financial position based on current and non-current classification. An asset is current when it is: · Expected to be realized or intended to be sold or consumed in the normal operating cycle; · Held primarily for the purpose of trading; · Expected to be realized within twelve months after the reporting period; or · Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: · It is expected to be settled in the normal operating cycle; · It is held primarily for the purpose of trading; · It is due to be settled within twelve months after the reporting period; or · There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. c) Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: (i) in the principal market for the asset or liability; or (ii) in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: · Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities. · Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. · Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. At each reporting date, the Company analyzes the movements in the values of assets and liabilities which are required to be remeasured or reassessed as per the Company’s accounting policies. For this analysis, the Company verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents. The Company also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above. d) Financial instruments - initial recognition and measurement A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. i) Financial assets Initial recognition and measurement The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, are measured at the transaction price determined under IFRS 15. In order for a financial asset to be classified and measured at amortized cost or fair value through OCI (Other Comprehensive Income), it needs to give rise to cash flows that are “solely payments of principal and interest (SPPI)” on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Company’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset. Subsequent measurement For purposes of subsequent measurement, financial assets are classified as: financial assets at amortized cost or financial assets at fair value through profit or loss. There are no financial assets designated as fair value through OCI. Financial assets at amortized cost The Company measures financial assets at amortized cost if both of the following conditions are met: • The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows, and • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognized in the statement of income when the asset is derecognized, modified or impaired. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of income. This category includes derivative instruments. Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Company’s statement of financial position) when: • The rights to receive cash flows from the asset have expired; or • The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay. Impairment of financial assets Further disclosures relating to impairment of financial assets are also provided in the following notes: • Significant accounting judgments, estimates and assumptions - Note 3 • Trade receivables - Note 7 The Company recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and the cash flows the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes an allowance for credit losses based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The Company considers a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before considering any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. ii) Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade payables, loans and financing, notes payable, lease liabilities, advances from customers and accounts payable to selling shareholders. Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes, when applicable, derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Gains or losses on liabilities held for trading are recognized in the statement of income. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. Loans and borrowings After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in the statement of income when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance expenses in the statement of income. Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of income. Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. e) Cash and cash equivalents Cash and cash equivalents in the statement of financial position comprise cash at banks and on hand, and short-term financial investments with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term financial investments, as they are considered an integral part of the Company’s cash management. f) Property and equipment Property and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Subsequent expenditures are capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Schedule of estimated useful lives of the assets Building 25 Machinery and equipment 10 Vehicles 4 Furniture and fixtures 10 IT equipment 5 Library books 10 Leasehold improvements 5 20 An item of property and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefit is expected from its use or disposal. Any gain or loss arising on the derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of income when the asset is derecognized. The residual values, useful lives and methods of depreciation of property and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. g) Leases The Company assess at contract inception whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the contract. The arrangement is, or contains, a lease if the arrangement conveys the right to control the use of the identified asset (or assets), even if that asset is (or those assets are) not explicitly specified in an arrangement for a period of time in exchange for consideration. Company as a lessee The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. Right-of-use assets The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment. Lease liabilities At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating a lease, if the lease term reflects the Company exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Short-term leases and leases of low-value assets The Company applies the short-term lease recognition exemption to its short-term leases of properties (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term. h) Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a |
Significant accounting judgment
Significant accounting judgments, estimates and assumptions | 12 Months Ended |
Dec. 31, 2023 | |
Significant Accounting Judgments Estimates And Assumptions | |
Significant accounting judgments, estimates and assumptions | 3 Significant accounting judgments, estimates and assumptions The preparation of the Company’s consolidated financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Accounting estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Revisions to estimates are recognized prospectively. Other disclosures relating to the Company’s exposure to risks and uncertainties includes: · Financial instruments risk management objectives and policies - Note 13.4 · Sensitivity analysis disclosures - Note 13.4.1 Estimates and assumptions The key assumptions about the future and other key sources of estimated uncertainty as of the reporting date that include a significant risk of a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances that arise and that are beyond the Company’s control. Such changes are reflected in the assumptions when they occur. Identification and fair-value measurement of assets and liabilities acquired in a business combination Business combinations are accounted for using the acquisition method. Such method requires recognizing and measuring the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree. The Company, as the acquirer, must classify or designate the identifiable assets and liabilities assumed on the basis of its own contractual terms, economic conditions, operating and accounting policies and other relevant conditions as at the acquisition date. Such assessment requires judgments from the Company on the methods used to determine the fair value of the assets acquired and liabilities assumed, including valuation techniques that may require prospective financial information inputs. Impairment of non-financial assets Impairment exists when the carrying value of an asset or cash generating unit (“CGU”) or group of CGUs exceeds its recoverable amount, defined as the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on data available from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs of disposing of the asset. The value in use calculation is based on a discounted cash flow model (“DCF” model). The cash flows are derived from the budget for the next five years and do not include restructuring activities to which the Company has not yet committed or significant future investments that will enhance the performance of the assets of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as to expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to goodwill and indefinite lived intangible assets recognized by the Company. The key assumptions used to determine the recoverable amount for each CGU, including a sensitivity analysis, are disclosed and further explained in Note 12. Share-based compensation Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option or appreciation right, volatility and dividend yield and making assumptions about them. For the measurement of the fair value of equity-settled transactions, the Company uses the Binomial model. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 16 (b). Leases - Estimating the incremental borrowing rate The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ‘would have to pay’, which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary’s functional currency). The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Segment information | 4 Segment information The Company has three reportable segments as follows: • Undergrad, which provides educational services through undergraduate courses related to medicine, other health sciences and other undergraduate programs; • Continuing Education, which provides specialization programs and graduate courses in medicine; and • Digital Services, which provides content and technology for medical education, clinical decisions software, practice management tools and electronic medical records, doctor-patient relationship, telemedicine and digital prescription for physicians and provides access and demand and efficiency for the healthcare players. Segment information is presented consistently with the internal reports provided to the Company's Chief Executive Officer (CEO), which is the Chief Operating Decision Maker (CODM) and is responsible for allocating resources, assessing the performance of the Company's operating segments, and making the Company's strategic decisions. No operating segments have been aggregated to form the reportable operating segments. There is only one geographic region, and the results are monitored and evaluated as a single business. The tables below presents assets and liabilities information for the Company’s operating segments as of December 31, 2023 and 2022, respectively: Schedule of presents assets and liabilities information for the Company’s operating segments Undergrad Continuing Education Digital Services Total reportable segments Adjustments and eliminations Total As of December 31, 2023 Total assets 7,104,154 180,555 310,989 7,595,698 (11,217) 7,584,481 Current assets 1,001,156 86,361 127,206 1,214,723 (11,217) 1,203,506 Non-current assets 6,102,998 94,194 183,783 6,380,975 - 6,380,975 Total liabilities and equity 7,104,154 180,555 310,989 7,595,698 (11,217) 7,584,481 Current liabilities 787,658 87,447 194,679 1,069,784 (11,217) 1,058,567 Non-current liabilities 2,783,855 57,608 41,439 2,882,902 - 2,882,902 Equity 3,532,641 35,500 74,871 3,643,012 - 3,643,012 Other disclosures Investments in associate (i) 51,834 - - 51,834 - 51,834 Capital expenditures (ii) 139,361 15,178 63,889 218,428 - 218,428 (i) Investment in UEPC is included in non-current assets in the statement of financial position. (ii) Capital expenditures consider the acquisitions of property and equipment and intangible assets. Undergrad Continuing Education Digital Services Total reportable segments Adjustments and eliminations Total As of December 31, 2022 Total assets 6,775,829 149,254 275,564 7,200,647 (1,108) 7,199,539 Current assets 1,461,802 61,673 115,290 1,638,765 (1,108) 1,637,657 Non-current assets 5,314,027 87,581 160,274 5,561,882 - 5,561,882 Total liabilities and equity 6,775,829 149,254 275,564 7,200,647 (1,108) 7,199,539 Current liabilities 711,896 57,605 137,296 906,797 (1,108) 905,689 Non-current liabilities 2,938,960 63,990 40,742 3,043,692 - 3,043,692 Equity 3,124,973 27,659 97,526 3,250,158 - 3,250,158 Other disclosures Investments in associate (i) 53,907 - - 53,907 - 53,907 Capital expenditures (ii) 247,634 8,827 61,694 318,155 - 318,155 (i) Investment in UEPC is included in non-current assets in the statement of financial position. (ii) Capital expenditures consider the acquisitions of property and equipment and intangible assets. The tables below presents the statements of income for the Company’s operating segments for the years ended December 31, 2023, 2022 and 2021: Schedule of statements of income for the Company’s operating segments December 31, 2023 Undergrad Continuing Education Digital Services Total reportable segments Elimination (inter-segment transactions) Total External customer 2,511,018 146,827 218,068 2,875,913 - 2,875,913 Inter-segment - - 11,217 11,217 (11,217) - Revenue 2,511,018 146,827 229,285 2,887,130 (11,217) 2,875,913 Cost of services (997,973) (62,792) (60,265) (1,121,030) 11,217 (1,109,813) Gross profit 1,513,045 84,035 169,020 1,766,100 - 1,766,100 Selling, general and administrative expenses (1,014,684) Other income, net 15,645 Operating income 767,061 Finance income 110,642 Finance expenses (457,616) Share of income of associate 9,495 Income before income taxes 429,582 Income taxes expenses (24,166) Net income 405,416 December 31, 2022 Undergrad Continuing Education Digital Services Total reportable segments Elimination (inter-segment transactions) Total External customer 2,037,889 108,806 182,362 2,329,057 - 2,329,057 Inter-segment - - 7,622 7,622 (7,622) - Revenue 2,037,889 108,806 189,984 2,336,679 (7,622) 2,329,057 Cost of services (763,185) (56,554) (47,435) (867,174) 7,622 (859,552) Gross profit 1,274,704 52,252 142,549 1,469,505 - 1,469,505 Selling, general and administrative expenses (798,153) Other expenses, net (7,252) Operating income 664,100 Finance income 102,042 Finance expenses (349,893) Share of income of associate 12,184 Income before income taxes 428,433 Income taxes expenses (35,677) Net income 392,756 December 31, 2021 Undergrad Continuing Education Digital Services Total reportable segments Elimination (inter-segment transactions) Total External customer 1,498,408 72,983 147,980 1,719,371 - 1,719,371 Inter-segment - - 3,978 3,978 (3,978) - Revenue 1,498,408 72,983 151,958 1,723,349 (3,978) 1,719,371 Cost of services (554,995) (50,773) (50,510) (656,278) 3,978 (652,300) Gross profit 943,413 22,210 101,448 1,067,071 - 1,067,071 Selling, general and administrative expenses (622,615) Other expenses, net (3,561) Operating income 440,895 Finance income 64,566 Finance expenses (243,796) Share of income of associate 11,797 Income before income taxes 273,462 Income taxes expenses (31,179) Net income 242,283 Seasonality of operations Undergrad’s tuition revenues are related to the intake process and monthly tuition fees charged to students over the period; thus, does not have significant fluctuations during the year. Continuing Education revenues are related to monthly intakes and tuition fees and do not have a considerable concentration in any period. Digital Services is comprised mainly of Medcel, Pebmed, and iClinic revenues. While Pebmed and iClinic do not have significant fluctuation regarding seasonality, Medcel’s revenue is concentrated in the first and last quarter of the year due to the enrollments. In addition, the majority of Medcel’s revenues are derived from printed books and e-books, which are recognized at the point in time when control is transferred to the customer. Consequently, the Digital Services segment generally has higher revenues and results of operations in the first and last quarters of the year than in the second and third quarters. |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Business combinations | 5 Business combinations 5.1 Acquisition in 2023 The fair values of the identifiable assets acquired and liabilities assumed as of acquisition date were: Schedule of fair values of the identifiable assets acquired and liabilities assumed acquisition in 2023 Assets DelRey Cash and cash and equivalents 7,804 Trade receivables 33,741 Inventories 139 Recoverable taxes 589 Other assets 8,563 Property and equipment 24,980 Right-of-use assets 65,408 Intangible assets 728,777 870,001 Liabilities Trade payables 12,253 Lease liabilities 65,408 Labor and social obligations 6,252 Taxes and contributions payable 2,282 Advances from customers 38,327 Provision for legal proceedings 152 Other liabilities 4,189 128,863 Total identifiable net assets at fair value 741,138 Goodwill arising on acquisition 75,098 Purchase consideration transferred 816,236 Cash paid 575,000 Consideration to be transferred 234,000 Digital solutions (i) 7,236 Analysis of cash flows on acquisition: Transaction costs of the acquisition (included in cash flows from operating activities) 12,332 Cash paid net of cash acquired with the subsidiary (included in cash flows from investing activities) 567,196 Net of cash flow on acquisition 579,528 (i) The total consideration transferred included the obligation to offer digital solutions, especially from Medcel, Pebmed and Medical Harbour, through access (free-of-charge) to medical students of other medical schools held by the selling shareholders, not subject to this acquisition, from 2023 to 2030. This purchase consideration was measured using assumptions such as numbers of approved medical seats, current digital solutions prices, inflation and present value discount rates. The balances of such consideration are classified as other liabilities on the statement of financial position. (a) Acquisition of DelRey On January 2, 2023, Afya Brazil acquired 100 The original aggregate purchase price of R$832,236 was adjusted by R$16,000, in favor of the Company, to R$816,236 comprised by: i) R$809,000 of which R$575,000 was paid in cash on the transaction closing date, and R$234,000 is payable in cash in three annual installments, respectively, of R$134,000 in January 2024, R$50,000 in January 2025 and R$50,000 in January 2026, adjusted by the SELIC rate; and ii) offer of AFYA’s digital solutions free of charge until December 31, 2030, for students of medicine of universities owned by the sellers which are not part of the transaction. The fair value of this service was estimated at R$7,236 at the acquisition date. There are 84 additional seats still pending approval which, if approved by MEC, will result in a potential additional payment of up to R$105,000. Given the future event that will trigger the potential payout is not under the Company’s control, the probability of such payout cannot be reliably estimated and accordingly the contingent consideration was not measured at the acquisition date. Should the additional seats be approved, it will result in additional licenses, which will be measured accordingly if and when approved. DelRey is a post-secondary education institution with governmental authorization to offer on-campus, undergraduate degrees and graduate programs in medicine and health, as well as other courses, in the States of Alagoas and Pernambuco. The acquisition contributes 340 medical school seats to Afya. With the acquisition, Afya further consolidates its presence in the Brazilian Northeast, entering a new State in the region. The acquisition of DelRey was accounted for under IFRS 3 - Business Combinations. Transaction costs to date amount to R$ 12,332 At the acquisition date, the fair value of the trade receivables acquired is substantially the same as its carrying amount. The goodwill recognized includes the value of expected synergies arising from the acquisition, which is not separately recognized. Goodwill is allocated entirely to the Undergrad segment. The goodwill recognized is not expected to be deductible for income taxes purposes. The Company did not recognize deferred taxes related to the business combination because the tax basis and the accounting basis, including fair value adjustments, were the same at the date of the business combination. The Company engaged an independent valuation specialist to assist Management to assess the fair value of the assets acquired and liabilities assumed at date of acquisition. The valuation techniques used for measuring the fair value of separately identified intangible assets acquired were as follows: Schedule of intangible assets acquired Intangible assets acquired Valuation technique Licenses With-and-without method The with-and-without method consists of estimating the fair value of an asset by the difference between the value of this asset in two scenarios: a scenario considering the existence of the asset in question and another considering its non-existence. Customer relationships Multi-period excess earnings method The method considers the present value of net cash flows expected to be generated by customer relationships, by excluding any cash flows related to contributory assets. The valuation technique for property and equipment consists of determining the fair value of an asset by using methodologies like replacement costs and market value. DelRey has contributed R$ 240,107 82,147 5.2 Acquisitions in 2022 The fair values of the identifiable assets acquired and liabilities assumed as of acquisition date were: Schedule of fair values of the identifiable assets acquired and liabilities assumed as of acquisition in 2022 Assets Além da Medicina CardioPapers Glic Cash and cash and equivalents 298 3,648 151 Trade receivables 1,705 1,350 94 Other assets 266 1 36 Property and equipment 37 43 - Intangible assets 20,299 28,655 15,395 22,605 33,697 15,676 Liabilities Trade payables 705 1,703 1 Labor and social obligations 79 60 - Taxes and contributions payable 1,182 352 91 Advances from customers 6,185 3,893 - Other liabilities - - 574 8,151 6,008 666 Total identifiable net assets at fair value 14,454 27,689 15,010 Goodwill arising on acquisition 12,335 14,324 15,587 Purchase consideration transferred 26,789 42,013 30,597 Cash paid 14,952 34,924 21,602 Contingent consideration 11,074 7,422 8,995 Consideration to be transferred (Price adjustment) 763 (333) - Analysis of cash flows on acquisition: Transaction costs of the acquisition (included in cash flows from operating activities) 227 274 222 Cash paid net of cash acquired with the subsidiary (included in cash flows from investing activities) 14,654 31,276 21,451 Net of cash flow on acquisition 14,881 31,550 21,673 (a) Acquisition of Além da Medicina On March 4, 2022, Afya Brazil acquired 100 The aggregate purchase price of R$26,789 is comprised by: i) R$14,952 paid in cash on the transaction closing date; ii) an earn-out (“contingent consideration”) of up to R$19,200 is payable in connection with revenue target achievements for 2023 and 2024; and iii) price adjustment related to net debt of R$763 in favor of selling shareholders. The contingent consideration of R$11,074 is based on the present value of the obligation considering the facts and circumstances at the acquisition date. A The acquisition of A Transaction costs to date amount to R$ 227 At the acquisition date, the fair value of the trade receivables acquired equals its carrying amount. The goodwill recognized includes the value of expected synergies arising from the acquisition, which is not separately recognized. Goodwill is allocated entirely to Digital Services segment. The goodwill recognized is not expected to be deductible for income taxes purposes. The Company did not recognize deferred taxes related to the business combination because the tax basis and the accounting basis, including fair value adjustments, were the same at the date of the business combination. The valuation techniques used for measuring the fair value of separately identified intangible assets acquired were as follows: Schedule of acquisition of além da medicina intangible assets acquired Intangible assets acquired Valuation technique Trademark Relief from royalty This methodology is based on the market remuneration of the use license granted to third parties. The value of the asset is restated by the savings of royalties that the owner would have to own the asset. It is necessary to determine a royalty rate that reflects the appropriate remuneration of the asset. The royalty payments, net of taxes, are discounted to present value. Customer relationships Multi-period excess earnings method The method considers the present value of net cash flows expected to be generated by customer relationships, by excluding any cash flows related to contributory assets. Educational content Replacement cost This methodology is based on the estimated cost of replacing the referred asset with a new one (acquisition or reconstruction), adjusted to reflect the losses in value resulting from the physical deterioration and the functional and economic obsolescence of that asset. Developed technology intangible assets Replacement cost This methodology is based on the estimated cost of replacing the referred asset with a new one (acquisition or reconstruction), adjusted to reflect the losses in value resulting from the physical deterioration and the functional and economic obsolescence of that asset. A 12,859 1,448 2,529 867 (b) Acquisition of CardioPapers On April 5, 2022, Afya Brazil acquired 100 The aggregate purchase price of R$42,013 is comprised by: i) R$34,924 paid in cash on the transaction closing date; ii) an earn-out (“contingent consideration”) of up of R$15,000 is payable in connection with revenue target achievements for 2023 and 2024 and other goals; and iii) price adjustment related to net debt of R$333 in favor of Afya Brazil. The contingent consideration of R$7,422 is based on the present value of the obligation considering the facts and circumstances at the acquisition date. See Note 13.2.3 for further details of the earn-out amounts as of December 31, 2022. CardioPapers is the main medical content and education platform in the Cardiology field, offering courses and books developed by physicians and for physicians, covering all phases of the medical career, aligned with Afya’s overall business strategy. The acquisition of CardioPapers Transaction costs to date amount to R$ 274 At the acquisition date, the fair value of the trade receivables acquired equals its carrying amount. The goodwill recognized includes the value of expected synergies arising from the acquisition, which is not separately recognized. Goodwill is allocated entirely to Digital Services segment. The goodwill recognized is not expected to be deductible for income taxes purposes. The Company did not recognize deferred taxes related to the business combination because the tax basis and the accounting basis, including fair value adjustments, were the same at the date of the business combination. The valuation techniques used for measuring the fair value of separately identified intangible assets acquired were as follows: Schedule of acquisition of cardio papers intangible assets acquired Intangible assets acquired Valuation technique Trademark Relief from royalty This methodology is based on the market remuneration of the use license granted to third parties. The value of the asset is restated by the savings of royalties that the owner would have to own the asset. It is necessary to determine a royalty rate that reflects the appropriate remuneration of the asset. The royalty payments, net of taxes, are discounted to present value. Customer relationships Multi-period excess earnings method The method considers the present value of net cash flows expected to be generated by customer relationships, by excluding any cash flows related to contributory assets. Educational content Replacement cost This methodology is based on the estimated cost of replacing the referred asset with a new one (acquisition or reconstruction), adjusted to reflect the losses in value resulting from the physical deterioration and the functional and economic obsolescence of that asset. Copyrights Relief from royalty This methodology is based on the market remuneration of the use license granted to third parties. The value of the asset is restated by the savings of royalties that the owner would have to own the asset. It is necessary to determine a royalty rate that reflects the appropriate remuneration of the asset. The royalty payments, net of taxes, are discounted to present value. CardioPapers 9,934 2,352 2,117 2,041 (c) Acquisition of Glic On May 23, 2022, Afya Brazil acquired 100 The aggregate purchase price of R$30,597 is comprised by: i) R$21,602 paid in cash on the transaction closing date and ii) an earn-out (“contingent consideration”) of up of R$12,000 is payable in connection with revenue target achievements for 2023 and 2024 and product development goals. The contingent consideration of R$8,995 is based on the present value of the obligation considering the facts and circumstances at the acquisition date. Glic is a free diabetes care and management app solution for physicians and patients that uses technology to improve diabetes education and daily routine practices, connecting users, devices and healthcare providers. The acquisition of Glic Transaction costs to date amount to R$ 222 At the acquisition date, the fair value of the trade receivables acquired equals its carrying amount. The goodwill recognized includes the value of expected synergies arising from the acquisition, which is not separately recognized. Goodwill is allocated entirely to Digital Services segment. The goodwill recognized is not expected to be deductible for income taxes purposes. The Company did not recognize deferred taxes related to the business combination because the tax basis and the accounting basis, including fair value adjustments, were the same at the date of the business combination. The valuation techniques used for measuring the fair value of separately identified intangible assets acquired were as follows: Schedule of acquisition of Glic intangible assets acquired Intangible assets acquired Valuation technique Trademark Relief from royalty This methodology is based on the market remuneration of the use license granted to third parties. The value of the asset is restated by the savings of royalties that the owner would have to own the asset. It is necessary to determine a royalty rate that reflects the appropriate remuneration of the asset. The royalty payments, net of taxes, are discounted to present value. Customer relationships Multi-period excess earnings method The method considers the present value of net cash flows expected to be generated by customer relationships, by excluding any cash flows related to contributory assets. Developed technology intangible assets Replacement cost This methodology is based on the estimated cost of replacing the referred asset with a new one (acquisition or reconstruction), adjusted to reflect the losses in value resulting from the physical deterioration and the functional and economic obsolescence of that asset. Glic 389 1,539 173 700 |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2023 | |
Cash And Cash Equivalents | |
Cash and cash equivalents | 6 Cash and cash equivalents Schedule of cash and cash equivalents 2023 2022 Cash and bank deposits 11,746 57,509 Cash equivalents 541,284 1,035,573 Cash and cash equivalents 553,030 1,093,082 Cash equivalents correspond mainly to financial investments in Bank Certificates of Deposit (“CDB”) with highly rated financial institutions and investments funds managed by highly rated financial institutions. As of December 31, 2023, the average interest on these investments is equivalent to 100.8 99.21 23,173 24,447 |
Trade receivables
Trade receivables | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Trade receivables | 7 Trade receivables Schedule of trade accounts receivable 2023 2022 Tuition fees 461,066 356,074 Educational content (i) 49,135 50,913 FIES 62,971 62,325 Educational credits (ii) 29,391 27,535 Mobile app subscription (iii) 29,091 27,675 Other 15,667 14,923 647,321 539,445 (-) Allowance for expected credit losses (61,398) (44,046) 585,923 495,399 Current 546,438 452,831 Non-current 39,485 42,568 (i) Related to trade receivables from sales of printed books, e-books and medical courses through digital platform from Medcel, Além da Medicina e Cardiopapers. (ii) Related to the financing programs offered by our subsidiaries to its students that existed prior to the acquisitions. The Company closed such programs to new enrolments and maintained only the agreements that were outstanding as of the acquisition date. (iii) Related to trade receivables from mobile applications subscriptions for digital medical content. As of December 31, 2023 and 2022, the aging of trade receivables was as follows: Schedule of aging of trade accounts receivable 2023 2022 Neither past due nor impaired 323,614 261,025 Past due 1 to 30 days 73,563 56,280 31 to 90 days 109,908 90,734 91 to 180 days 85,193 80,522 More than 180 days 55,043 50,884 647,321 539,445 The changes in the allowance for doubtful accounts for the years ended December 31, 2023, 2022 and 2021, was as follows: Schedule of allowance for doubtful accounts 2023 2022 2021 Balances at the beginning of the year (44,046) (45,013) (32,980) Additions (74,552) (42,708) (47,819) Write-offs 57,200 43,675 35,786 Balances at the end of the year (61,398) (44,046) (45,013) |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Related parties | 8 Related parties The table below summarizes the balances and transactions with related parties: Schedule of balances and transactions with related parties 2023 2022 Assets Trade receivables (i) 693 917 Other assets (ii) 285 1,975 Total 978 2,892 Current 792 2,892 Non-current 186 - Liabilities Accounts payable to selling shareholders (iii) - 30,653 Total - 30,653 Current - 30,653 Non-current - - 2023 2022 2021 Other income (expenses) UEPC (i) 465 477 752 EMIVE Patrulha 24 Horas Ltda. (iv) (6) - - 459 477 752 Leases RVL Esteves Gestão Imobiliária S.A. 23,434 20,394 15,336 UNIVAÇO Patrimonial Ltda. 3,582 3,409 3,210 IESVAP Patrimonial Ltda. 5,170 4,920 4,560 32,186 28,723 23,106 (i) Refers to sales of educational content from Medcel to UEPC. (ii) Refers to expenses to be reimbursed by Bertelsmann SE& Co. KGaA. (iii) Refers to amounts payable to our shareholder Nicolau Carvalho Esteves regarding the agreement to which Afya Brazil acquired the right to develop ITPAC Garanhuns medical school, a greenfield unit. The last installment was paid in November 2023. (iv) Refers to amounts of expenses related to security services provided by a company of which one of Afya’s main shareholders has significant influence. Lease agreements with RVL Esteves Gestão Imobiliária S.A. Afya Brazil has entered into lease agreements with RVL Esteves Gestão Imobiliária S.A. (“RVL”), an entity controlled by the shareholder Nicolau Carvalho Esteves and of which Mr. Renato Esteves is an executive officer, as described below: On June 21, 2016, RVL entered into lease agreements (as amended on April 26, 2018) with ITPAC Araguaína and ITPAC Porto, pursuant to which RVL agreed to lease campuses to those entities in the cities of Araguaína and Porto Nacional, both located in the State of Tocantins. The lease agreements are adjustable in accordance with the provisions of each lease agreement. The lease agreements are for an initial term of 20 On November 1, 2016, RVL entered into a lease agreement with Afya Brazil, pursuant to which RVL agreed to lease to Afya Brazil certain offices in the city of Nova Lima, State of Minas Gerais, where Afya Brazil’s executive offices are located. On February 9, 2019, the agreement was amended to extend lease terms and adjust the lease amounts, subject to certain discount conditions set forth in the lease agreement and adjustable in accordance with the provisions of the lease agreement. The lease agreement had an initial term of five years which ended on January 31, 2024 and was renewed until the end of June, 2024, subject to the provisions of the lease agreement. On September 6, 2018, RVL entered into a lease agreement with ITPAC Araguaína, pursuant to which RVL agreed to lease to ITPAC the new ITPAC campus by RVL in the city of Palmas, State of Tocantins. The lease agreement is for an amount equal to 7.5 20 20 On October 30, 2019, RVL entered into a lease agreement with IPTAN, pursuant to which RVL agreed to lease to IPTAN the new IPTAN medical campus, in the city of Santa Inês, State of Maranhão. The lease agreement is for a monthly amount equal to (i) up to June 2020, R$ 12 6.5 On August 2, 2021, RVL entered into a lease agreement with ITPAC Araguaína, pursuant to which RVL agreed to lease to ITPAC the new ITPAC Garanhuns medical campus, in the city of Garanhuns, State of Pernambuco. The lease agreement is for a monthly amount equal to (i) up to June 2022, R$ 40 6.5 The lease payments in connection with the lease agreements with RVL totaled R$ 23,434 20,394 15,336 Lease agreement with UNIVAÇO Patrimonial Ltda. On July 14, 2016, UNIVAÇO Patrimonial Ltda., an entity controlled by the shareholder Nicolau Carvalho Esteves and of which Ms. Rosângela Esteves is the chief executive officer, entered into a lease agreement with UNIVAÇO, a subsidiary of Afya Brazil, pursuant to which UNIVAÇO Patrimonial Ltda. agreed to lease the UNIVAÇO campus to UNIVAÇO, located in the city of Ipatinga, State of Minas Gerais. The lease agreement is adjustable in accordance with the provisions of the lease agreement. The lease agreement is for an initial term of 20 years and is renewable for an additional 20 3,582 3,409 3,210 Lease agreement with IESVAP Patrimonial Ltda. On April 25, 2018, IESVAP Patrimonial Ltda., an entity controlled by the shareholder Nicolau Carvalho Esteves and of which Mr. Renato Esteves is an executive officer, entered into a lease agreement with IESVAP, a subsidiary of Afya Brazil, pursuant to which IESVAP Patrimonial Ltda. agreed to lease the IESVAP campus to IESVAP located in the city of Parnaíba, State of Piauí. The lease agreement is for an amount equal to 7.5 20 20 5,170 4,920 4,560 Key management personnel compensation Key management personnel compensation included in the Company’s consolidated statement of income comprised the following: Schedule of key management personnel compensation included in the Company's consolidated statement of income 2023 2022 2021 Short-term employee benefits 16,979 13,564 11,933 Share-based compensation plans 21,380 13,116 20,251 38,359 26,680 32,184 Compensation of the Company’s key management includes short-term employee benefits comprised by salaries, labor and social charges, and other ordinary short-term employee benefits. The amounts disclosed in the table above are the amounts recognized as an expense in selling, general and administrative expenses during the reporting period related to key management personnel. The executive officers participate in share-based compensation plans described in Note 16 (b). |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets | |
Other assets | 9 Other assets As of December 31, 2023, the Company has R$ 176,251 243,501 Schedule of other assets 2023 2022 Indemnification assets (i) 81,855 145,300 Advances 39,890 30,626 Judicial deposits 14,187 12,693 Prepaid expenses 15,820 18,441 Other FIES receivables 8,674 26,440 Dividends 1,668 - Deferred tax assets 3,233 - Other assets 10,924 10,001 Total 176,251 243,501 Current 58,905 51,745 Non-current 117,346 191,756 (i) Under the terms of the Share Purchase and Sale Agreements (“Agreements”) between the Company and the selling shareholders of subsidiaries acquired, the Company assesses that the selling shareholders are exclusively responsible for any provisions (including labor, tax and civil), which are or will be the subject of a claim by any third party, arising from the act or fact occurred, by action or omission, prior to or on the closing dates of the acquisitions. As disclosed in Note 23(b), Unigranrio has entered into a tax amnesty program in August 2023 for settling a tax proceeding, which resulted in the write-off of R$20,000 of indemnification assets. The remaining variance is due to the expiration of the related contingent liabilities recognized at business combinations, mostly due to R$ 28,500 related to tax matters. |
Investment in associate
Investment in associate | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Investment in associate | 10 Investment in associate The Company holds a 30% interest in UEPC, a medical school located in the Federal District that offers higher education and post-graduate courses, both in person and long-distance learning. The Company’s interest in UEPC is accounted for using the equity method. The table below illustrates the summarized financial information of the Company’s investment in UEPC: Schedule of investment 2023 2022 Current assets 29,004 32,651 Non-current assets 120,289 122,378 Current liabilities (28,842) (22,840) Non-current liabilities (91,613) (96,442) Equity 28,838 35,747 Company’s share in equity - 30% 8,651 10,724 Goodwill 43,183 43,183 Carrying amount of the investment 51,834 53,907 2023 2022 2021 Revenue 148,042 138,584 127,618 Cost of services (71,282) (57,421) (57,935) Selling, general and administrative expenses (37,205) (34,991) (24,025) Finance results (6,123) (4,103) (4,585) Income before income taxes 33,432 42,069 41,073 Income taxes expenses (1,782) (1,456) (1,748) Net income 31,650 40,613 39,325 Company’s share of income 9,495 12,184 11,797 2023 2022 2021 Opening balance 53,907 48,477 51,410 Dividends received (9,900) (6,754) (11,770) Dividends receivable (included in Other assets) (1,668) - (2,960) Share of income 9,495 12,184 11,797 Closing balance 51,834 53,907 48,477 The Company tests the recoverability of the carrying amount of goodwill at least annually. As of December 31, 2023 and 2022, no impairment had to be recognized for this goodwill. |
Property and equipment
Property and equipment | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Property and equipment | 11 Property and equipment Schedule of detailed information about property, plant and equipment Cost Building Machinery and equipment Lands Vehicles Furniture and fixtures IT equipment Library books Leasehold improvements Construction in progress Total As of January 1, 2021 25,919 68,503 13,401 1,215 29,131 28,511 21,624 122,005 3,706 314,015 Additions 1,384 10,268 5,451 111 21,075 19,511 3,392 4,720 59,957 125,869 Business combinations - 12,810 - 346 16,684 10,138 5,142 17,425 3,078 65,623 Write-off (i) 62 (14,213) - (205) 2,862 (4,985) (86) (550) (417) (17,532) Transfer 25,068 3 - - 82 9 - 9,376 (34,538) - As of December 31, 2021 52,433 77,371 18,852 1,467 69,834 53,184 30,072 152,976 31,786 487,975 Additions 527 36,486 - 968 26,047 15,766 645 2,667 85,026 168,132 Business combinations - 45 - - - 35 - - - 80 Write-off (i) 13 (8,159) - (933) 500 (6,992) - - (78) (15,649) Transfer 38,884 (5,353) - (449) (5,669) 6,600 6,645 (9,797) (30,046) 815 As of December 31, 2022 91,857 100,390 18,852 1,053 90,712 68,593 37,362 145,846 86,688 641,353 Additions 96 20,071 - 776 17,914 21,135 985 49 57,409 118,435 Business combination - 7,729 - - 4,384 734 1,329 10,741 63 24,980 Write-off (i) - (9,411) - (475) (1,443) (7,979) (7,788) (286) - (27,382) Transfer 1,279 1,202 - - (708) 327 - 108,098 (110,198) - As of December 31, 2023 93,232 119,981 18,852 1,354 110,859 82,810 31,888 264,448 33,962 757,386 Depreciation As of January 1, 2021 - (19,322) - (171) (8,089) (10,851) (10,817) (4,384) - (53,634) Depreciation (1,673) (7,215) - (196) (5,601) (7,529) (3,416) (4,831) - (30,461) Write-off (i) - 10,146 - 147 1,194 3,458 633 350 - 15,928 As of December 31, 2021 (1,673) (16,391) - (220) (12,496) (14,922) (13,600) (8,865) - (68,167) Depreciation (3,472) (11,166) - (284) (7,725) (10,140) (3,415) (8,849) - (45,051) Write-off (i) - 5,474 - 791 153 7,350 67 117 - 13,952 Transfer (606) 1,453 - 1 9,719 (4,125) (5,940) (502) - - As of December 31, 2022 (5,751) (20,630) - 288 (10,349) (21,837) (22,888) (18,099) - (99,266) Depreciation (4,242) (14,900) - (325) (12,556) (13,286) (3,327) (26,271) - (74,907) Write-off (i) 118 6,684 - 235 2,528 8,254 7,563 90 - 25,472 Transfer 196 3 - - - (3) - (196) - - As of December 31, 2023 (9,679) (28,843) - 198 (20,377) (26,872) (18,652) (44,476) - (148,701) Net book value As of December 31, 2023 83,553 91,138 18,852 1,552 90,482 55,938 13,236 219,972 33,962 608,685 As of December 31, 2022 86,106 79,760 18,852 1,341 80,363 46,756 14,474 127,747 86,688 542,087 (i) Refers to items written-off as result of lack of expectation of future use, in connection with the Company’s physical inventory procedures. The Company assesses at each reporting date, whether there is an indication that a property and equipment asset may be impaired. If any indication exists, the Company estimates the asset’s recoverable amount. There were no indications of impairment of property and equipment as of and for the ended December 31, 2023, 2022 and 2021. |
Intangible assets and goodwill
Intangible assets and goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets And Goodwill | |
Intangible assets and goodwill | 12 Intangible assets and goodwill Schedule of intangible assets Goodwill Licenses with indefinite useful life Trademark Customer relationships Software Education content Developed technology Educational platform Software in progress Other Total Cost As of January 1, 2021 810,656 1,451,270 75,014 283,539 16,221 17,305 355 27,902 2,297 - 2,684,559 Additions (vi) - 108,000 - 684 3,044 - 996 39,686 23,700 - 176,110 Write-off * - - - - 1,020 - - (2,743) (417) - (2,140) Business combinations 373,680 606,136 58,355 147,054 1,474 - 33,046 11,599 3,267 - 1,234,611 As of December 31, 2021 1,184,336 2,165,406 133,369 431,277 21,759 17,305 34,397 76,444 28,847 - 4,093,140 Additions (i) (ii) 39,100 24,408 - 80 1,423 11,231 32,879 14,761 26,141 - 150,023 Write-off * - - (22) - (381) (7) - (9) (28) - (447) Remeasurement (iii) (8,637) - - - - - - - - - (8,637) Transfer - - (2,472) 530 20,466 38,433 17,953 (35,499) (40,226) - (815) Business combinations 42,246 - 51,185 3,929 33 2,627 5,520 - - 1,055 106,595 As of December 31, 2022 1,257,045 2,189,814 182,060 435,816 43,300 69,589 90,749 55,697 14,734 1,055 4,339,859 Additions - - - - 1,314 9,827 37,712 23,164 27,976 - 99,993 Write-off * - - - - (2,235) - - (911) (125) - (3,271) Remeasurement (iv) 2,556 - - - - - - - - - 2,556 Transfer - - - - 28,708 4,785 16 (3,058) (30,451) - - Business combination (v) 75,098 586,263 - 142,451 63 - - - - - 803,875 As of December 31, 2023 1,334,699 2,776,077 182,060 578,267 71,150 84,201 128,477 74,892 12,134 1,055 5,243,012 Amortization As of January 1, 2021 - - (3,502) (85,832) (6,256) (7,692) (32) (8,235) - - (111,549) Amortization - - (5,027) (56,438) (5,844) (8,980) (625) (3,608) - - (80,522) Write-off * - - - - (599) - - 365 - - (234) As of December 31, 2021 - - (8,529) (142,270) (12,699) (16,672) (657) (11,478) - - (192,305) Amortization - - (6,426) (70,093) (4,943) (9,634) (9,436) (5,874) - (79) (106,485) Write-off * - - - - 365 57 - - - - 422 Transfer - - - - (313) - 313 - - - As of December 31, 2022 - - (14,955) (212,363) (17,277) (26,562) (10,093) (17,039) - (79) (298,368) Amortization - - (11,083) (89,584) (8,764) (15,668) (21,504) (4,778) - (105) (151,486) Write-off * - - - - 1,947 - - 911 - - 2,858 Transfer - - - - - - (6) 6 - - - As of December 31, 2023 - - (26,038) (301,947) (24,094) (42,230) (31,603) (20,900) - (184) (446,996) Net book value: As of December 31, 2023 1,334,699 2,776,077 156,022 276,320 47,056 41,971 96,874 53,992 12,134 871 4,796,016 As of December 31, 2022 1,257,045 2,189,814 167,105 223,453 26,023 43,027 80,656 38,658 14,734 976 4,041,491 * Refers to intangible assets written-off as result of lack of expectation of future use. (i) Licenses with indefinite useful life: On March 18, 2022, MEC authorized the increase of 28 seats of Centro de Ensino São Lucas, located in the city of Ji-Parana, State of Rondônia. The earn-out related to the seats approval is R$800 per seat, adjusted by the CDI rate from the closing until the payment date, of which 50% was paid in April 2022 and the remaining amount is payable in cash in two equal installments through 2024. (ii) Goodwill: During the measurement period, the preliminary goodwill for the acquisition of Unigranrio was adjusted by R$39,100 (R$130,073 initial goodwill) as a result of an increase of liabilities regarding tax contingencies and judicial deposits to be reimbursed by the selling shareholders. (iii) Goodwill: During the measurement period, R$8,637 of goodwill arising from the acquisition of RX PRO was reduced, in connection with management’s view of remote likelihood of RX PRO achieving the revenue goals estimated at the terms of the earn-out. (iv) Goodwill: During the measurement period, results of operation such as revenue differed from the foreseen, resulting in a remeasurement of the contingent consideration for the acquisitions of Além da Medicina, CardioPapers and Glic by R$4,773, R$5,082 and (R$7,299), respectively, totaling R$2,556 for the year ended December 31, 2023. (v) Business combination: On January 2, 2023, Afya Brazil acquired DelRey, a post-secondary education institution with governmental authorization to offer on-campus, undergraduate degrees and graduate programs in medicine and health, as well as other courses. See Note 5. (vi) On November 5, 2021, MEC authorized the operation of 120 medical school seats in Garanhuns, for which our shareholder Nicolau Carvalho Esteves entered into an agreement with Afya Brazil pursuant to which he assigned to Afya Brazil the right to develop the ITPAC Garanhuns greenfield unit, a medical school in the city of Garanhuns, State of Pernambuco. Management assessed the aspects of such transaction and concluded that the transaction does not fall under the definition of business, but an acquisition of license with indefinite useful life recognized in intangible assets. Total purchase price was R$108,000 of which 50% was paid in cash on the transaction closing date and 50% in two equal annual installments, adjusted by the CDI rate. Licenses with indefinite useful life include intangible assets acquired through business combinations. The licenses for medicine and other courses granted by MEC to the companies acquired have no expiration date and the Company has determined that these assets have indefinite useful lives. For impairment testing goodwill and licenses with indefinite useful lives acquired through business combinations are allocated to the respective CGUs. The Company performed its annual impairment test on December 31, 2023, 2022 and 2021. There was no impairment for goodwill and licenses with indefinite useful lives for the years ended December 31, 2023, 2022 and 2021. The Company tests at least annually the recoverability of the carrying amount of goodwill and licenses with indefinite useful lives for each CGU. The Company determines the recoverable amount of its CGUs based on the value-in-use. Estimating these values involves the use of assumptions, judgments and estimates of future cash flows that represent the Company's best estimate. The carrying amounts of goodwill and licenses with indefinite useful life by CGU and their carrying amount as of December 31, 2023 and 2022 were as follows: Schedule of assumptions for impairment test Carrying amount CGU Goodwill Licenses with indefinite useful life CGU 2023 2022 2023 2022 2023 2022 IPTAN 17,446 17,446 57,214 57,214 125,974 126,024 IESVAP 27,956 27,956 81,366 81,366 126,996 129,305 CCSI 4,664 4,664 56,737 56,737 54,550 53,540 IESP 73,838 73,838 179,693 179,693 332,104 322,968 FADEP 49,661 49,661 70,606 70,606 148,032 153,100 FASA 58,903 58,903 144,507 144,507 322,061 314,967 IPEMED 87,647 87,647 - - 183,862 192,079 IPEC - - 108,000 108,000 157,984 148,067 UniRedentor 77,662 77,662 121,477 121,477 234,054 242,600 UniSL 4,420 4,420 273,795 273,795 401,143 398,492 FESAR 71,664 71,664 141,616 141,616 244,412 244,084 FCMPB 110,483 110,483 235,018 235,018 402,140 415,453 ITPAC Garanhuns - - 108,000 108,000 116,162 112,628 Content & Technology for medical education (Pillar 1) * 179,830 169,975 - - 238,921 279,684 Practice Management Tools & Electronic Prescription (Pillar 3) 106,774 106,774 - - 221,171 216,297 Clinical Decision Software (Pillar 2) 87,018 87,018 - - 147,897 153,526 Cliquefarma 6,588 6,588 - - 18,789 20,045 UnifipMoc 87,777 87,777 190,247 190,247 361,383 369,007 Unigranrio 169,173 169,173 421,538 421,538 833,665 854,861 RX PRO 29,809 29,809 - - 34,748 36,675 Glic * 8,288 15,587 - - 23,721 31,022 DelRey 75,098 - 586,263 - 854,313 - 1,334,699 1,257,045 2,776,077 2,189,814 5,584,082 4,814,424 * See above for further details on goodwill changes in 2023. The main assumptions used by the Company to determine the value in use of the CGUs were: Student enrollment - refers to the number of students that are currently enrolled in each CGU. The growth of students enrolled considers maturation of operations, limited by regulatory seats approved for each CGU. Tuition fees - the monthly fee charged to students. Tuition fees are consistent with Management best expectations on prices charged and considers inflation for future periods. Occupancy rate - the occupancy rate of the medical schools is the ratio of the number of students effectively enrolled divided by the regulatory capacity in a given period. Regulatory capacity - the regulatory capacity is defined by the number of medical schools seats available per year awarded by MEC, multiplied by the number of years of operations since the seats were awarded. Faculty - refers to the cost with faculty in the CGU, which means the amount paid to teachers and doctors. Digital content platform revenues - refer to mobile app subscription, clinical management system, healthcare payments, medical imaging, online courses for digital content users and marketing for pharmaceutical industry. Business assumptions include management best expectations on long term targets for digital services segment operations, including total addressable market, market share and target prices including inflation. Capital expenditures - refers to investments to be made on intangible assets related to developments and platform improvements especially on the digital services CGUs. Discount rates - discount rates represent the current market assessment of the risks specific to the CGU being tested. The pre-tax discount rate applied to cash flow projections is between 12.48 15.14 13.14 15.40 Perpetuity growth rate - refers to growth rate considered by management on long term periods after the explicit projection period of five 5 3.5 7.8 Significant estimate: impact of possible changes in key assumptions An increase of 25 basis points in management’s estimated discount rate applied to the cash flow projections of each CGU for the year ended December 31, 2023, or a decrease of 25 basis points on estimated EBITDA would have not resulted in significant impacts on these consolidated financial statements. Other intangible assets Intangible assets, other than goodwill and licenses with indefinite useful lives, are valued separately for each acquisition and are amortized during each useful life. The useful lives and methods of amortization of other intangibles are reviewed at each financial year end and adjusted prospectively, if appropriate. The estimated useful lives of intangible assets are as follows: Schedule of estimated useful lives of intangible assets Customer relationships - medicine 6 Customer relationships - other courses 4.5 Software license 5 Education content 3 Trademarks 2 30 Developed technology 5 For the years ended December 31, 2023, 2022 and 2021, there were no indicatives that the Company’s intangible assets with finite useful lives might be impaired. |
Financial assets and financial
Financial assets and financial liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Financial assets and financial liabilities | 13 Financial assets and financial liabilities 13.1 Financial assets Schedule of financial assets 2023 2022 At amortized cost: Trade receivables 585,923 495,399 585,923 495,399 Current 546,438 452,831 Non-current 39,485 42,568 13.2 Financial liabilities Schedule of financial liabilities 2023 2022 At amortized cost: Trade payables 108,222 71,482 Loans and financing 1,800,775 1,882,901 Lease liabilities 874,569 769,525 Accounts payable to selling shareholders 566,867 528,678 Notes payable - 62,176 3,350,433 3,314,762 Current 678,370 573,030 Non-current 2,672,063 2,741,732 13.2.1 Loans and financing Schedule of loans and financing Financial institution Currency Interest rate Maturity 2023 2022 Banco Itaú Unibanco S.A Brazilian real CDI + 1.90% p.y. 2025 412,880 518,134 FINEP Brazilian real TJLP p.y. 2027 11,193 8,418 Banco Itaú Unibanco S.A. Brazilian real CDI + 1.75% p.y. 2024 21,405 32,252 Softbank Brazilian real 6.5% p.y. 2026 825,957 824,258 Debentures Brazilian real CDI + 1.80% p.y. 2028 529,340 499,839 1,800,775 1,882,901 Current 179,252 145,202 Non-current 1,621,523 1,737,699 (a) On October 1, 2020, Afya Brazil entered into a loan with Banco Itaú Unibanco S.A. in the amount of R$500,000 adjusted by the CDI rate plus an interest rate of 1.62% per year and is repayable in three installments in October 2022, April 2023 and October 2023. This agreement has financial covenants and the Company should not reduce its EBITDA by 50% or more year over year. As of December 31, 2023, the Company is compliant with all obligations set forth in this agreement. On September 28, 2022, Afya Brazil signed an amendment with Banco Itaú Unibanco S.A in order to extend its debt profile, postponing the original repayments dates from 2022 and 2023 to 2023, 2024 and 2025. Due to such extension, the spread over CDI rate increased from 1.62% p.y to 1.90% p.y. (b) On July 23, 2019, Medcel entered into a loan of R$16,153 with Financiadora de Estudos e Projetos (“FINEP”), a governmental agency focused on financing investments on R&D, which has an interest rate based on TJLP (Long term interest rate), and maturity in 2027. The first and second tranches of R$6,734 and R$4,130, respectively, were drawdown in October 2019 and December 2020, respectively, and new tranches were drawdown in March and June 2023 totaling R$5,288 in order to develop the Medical web series and other digital content. There is no financial covenant related to this agreement. The total balance is guaranteed by a bank financial guarantee. (c) On October 28, 2020, UnifipMoc entered into a loan with Banco Itaú Unibanco S.A. in the amount of R$30,000. On June 30, 2021, this agreement was amended and is now adjusted by the CDI rate plus an interest rate of 1.75% per year and is repayable in three installments in July 2023, January 2024 and July 2024. There is no financial covenant related to this agreement. (d) On April 26, 2021, the Company issued and sold 150,000 shares of perpetual convertible preferred shares designated as Series A perpetual convertible preferred shares, with a par value of US$0.00005 per share of the Company for US$150,000 thousands, equivalent to R$821,805 on the issuance date. The Series A perpetual convertible preferred shares is a class of equity security that ranks senior to the common shares with respect to dividend rights or rights upon liquidation. Each Series A perpetual convertible preferred share is entitled to a cash dividend of 6.5% per annum and is convertible, at the holder’s discretion, into the Company’s Class A common shares at an initial conversion price of US$25.35. The Company may require the conversion of any or all of the Series A perpetual convertible preferred shares at any time on or after the three-year anniversary of the original issuance date if certain conditions set forth in the certificate of designation are met (if for 20 out of 30 consecutive trading days prior, Afya’s stock price is equal or above 150% of the conversion rate). The Company may also redeem any or all of the Series A perpetual convertible preferred shares for cash, shares of its common shares or a combination thereof at its election, at any time on or after the seven-year anniversary of the original issuance date as determined in the certificate of designation. On or after the five-year anniversary of the original issuance date, the holders of the Series A convertible perpetual preferred shares shall have the right to redeem all of the outstanding Series A convertible perpetual preferred shares for cash, the Company’s common shares or a combination thereof (at the Company’s election, subject to certain conditions) to be determined in the certificate of designation. Upon the occurrence of a change of control, the holders will have the right to redeem their Series A convertible perpetual preferred shares for cash at a price set forth in the certificate of designation. The Series A convertible perpetual preferred shares will be entitled with the same voting rights of the common shares only when converted into it. The Company determined that the Series A perpetual convertible preferred shares should be classified as financial liability at amortized cost upon their issuance since is redeemable primarily according to the decision of the holder and there is a contractual obligation to deliver assets (cash, shares of its common shares or a combination thereof) that could not be avoided by the Company in an event of redemption. The financial liability is denominated in Brazilian Reais and thus not subject to foreign exchange changes. In addition, as the entire instrument is classified as a liability, the embedded put option to redeem the Series A perpetual convertible preferred shares for cash is an embedded derivative. The embedded derivative will not be treated separately once the exercise price of the option is closely related to the host contract. The initial transaction costs that are directly attributable to the issuance of Series A perpetual convertible preferred shares were measured at fair value together with the financial liability on initial measurement. The transaction costs totaled R$13,030, including legal counsels and advisors. (e) On December 16, 2022, Afya Brazil issued 500,000 simple, non-convertible, unsecured debentures in a single series, each with a par value of R$1, totaling an aggregate amount of R$500.000, by means of a public distribution with restricted placement efforts in the Brazilian market, under the terms of the Brazilian Securities Commission (“CVM”) Rule No. 476. Afya expects to use the proceeds of the offering for general corporate purposes, strengthening its cash position, and extending its debt maturity profile. The debentures were issued with a maturity date of January 15, 2028, with the principal to be amortized in two equal installments payable on January 15, 2027 and January 15, 2028, corresponding to the fourth and fifth years of the transaction, respectively. The debentures bear interest at 100% of the CDI rate (the average of interbank overnight rates in Brazil, based on 252 business days) plus 1.80% per year, payable semi-annually on January 15 and July 15 of each year, until the maturity date. This transaction is subject to certain obligations including financial covenants. According to this offering, Afya shall maintain net debt (excluding Softbank transaction and lease liabilities) to adjusted EBITDA ratio below or equal to 3.0 x, at the end of each fiscal year, until maturity date. Adjusted EBITDA considers net income plus (i) income taxes expenses, (ii) net financial result (excluding interest expenses on lease liabilities), (iii) depreciation and amortization expenses (excluding right-of-use depreciation expenses), (iv) share-based compensation expenses, (v) share of income of associate, (vi) interest received and (vii) non-recurring expenses. As of December 31, 2023, the Company is compliant with all obligations set forth in the deed of issuance. The transaction costs that are directly attributable to the issuance of debentures were measured at fair value together with the financial liability on initial measurement. The transaction costs totaled R$3,115, including legal counsels and advisors. 13.2.2 Leases The Company has lease contracts for properties. The lease contracts generally have maturities in the lease terms between five 5 30 The carrying amounts of right-of-use assets and lease liabilities as of December 31, 2023, 2022 and 2021 and the movements during the years are described below: Schedule of right-of-use assets and lease liabilities Right-of-use assets Lease liabilities As of January 1, 2021 419,074 447,703 Additions 62,689 62,689 Remeasurement 95,962 95,962 Business combinations 139,514 139,514 Depreciation expense (43,237) - Interest expense - 67,212 Payments of lease liabilities - (20,075) Payments of interest - (67,676) Write-off (i) (10,316) (11,244) As of December 31, 2021 663,686 714,085 Current - 24,955 Non-current 663,686 689,130 Right-of-use assets Lease liabilities As of January 1, 2022 663,686 714,085 Additions 42,250 42,250 Remeasurement 58,623 58,623 Depreciation expense (54,684) - Interest expense - 88,571 Payments of lease liabilities - (28,511) Payments of interest - (85,001) Write-off (i) (19,802) (20,492) As of December 31, 2022 690,073 769,525 Current - 32,459 Non-current 690,073 737,066 Right-of-use assets Lease liabilities As of January 1, 2023 690,073 769,525 Additions 7,328 7,328 Remeasurement 70,387 70,387 Business combination 65,408 65,408 Depreciation expense (63,118) - Interest expense - 100,849 Payments of lease liabilities - (31,473) Payments of interest - (103,911) Write-off (i) (2,469) (3,544) As of December 31, 2023 767,609 874,569 Current - 36,898 Non-current 767,609 837,671 (i) Refers to anticipated termination of real estate leasing contracts. The Company recognized lease expense from short-term leases and low-value assets of R$ 10,871 12,153 11,229 13.2.3 Accounts payable to selling shareholders Schedule of accounts payable to selling shareholders 2023 2022 Acquisition of IPEMED (a) 12,805 22,654 Acquisition of UniRedentor (b) 27,155 72,064 Acquisition of UniSL (c) 15,064 37,301 Acquisition of FCMPB (d) 63,168 111,755 Acquisition of Medical Harbour (e) 3,000 4,053 Acquisition of Shosp (f) 454 2,206 Acquisition of Unigranrio (g) 156,235 216,716 Acquisition of RX PRO (h) - 1,781 Acquisition of Guaranhuns (i) - 30,653 Acquisition of Além da Medicina (j) 18,325 11,996 Acquisition of CardioPapers (k) 14,173 7,979 Acquisition of Glic (l) - 9,520 Acquisition of DelRey (m) 256,488 - 566,867 528,678 Current 353,998 261,711 Non-current 212,869 266,967 Schedule of accounts payable 2023 2022 2021 Opening balance 528,678 679,826 518,240 Cash flows - Payments and deductions (225,460) (236,760) (180,020) Payment of interest (i) (55,989) (24,428) (12,661) Acquisition of licenses - 24,408 54,000 Interest 85,069 68,064 31,915 Additions - Consideration to be transferred on business combinations 234,000 - 243,816 Consideration to be transferred on business combinations (earn-outs) - 27,921 24,536 Reversals - (10,353) - Remeasurement of earn-outs (ii) 2,556 - - Other (1,987) - - Closing balance 566,867 528,678 679,826 (i) Payment of interest from acquisition of subsidiaries are included in cash flows from investing activities. (ii) During the measurement period, management’s expectation has been reviewed based on performance for revenue goals and the contingent consideration for the acquisition of Além da Medicina, CardioPapers and Glic have been remeasured by R$4,773, R$5,082 and (R$7,299), respectively, totaling R$2,556 as of December 31, 2023. These are measured by the Company at the present value. (a) On May 9, 2019, Afya Brazil acquired 100 45,303 9,061 (b) On January 31, 2020, Afya Brazil acquired 100 100,000 4,503 (c) On May 5, 2020, Afya Brazil acquired 100 60,456 7,816 (d) On November 9, 2020, Afya Brazil acquired 100 188,894 (e) On April 8, 2021, Afya Brazil acquired 100 9,000 3,000 (f) On May 13, 2021, Afya Brazil acquired 100 513 454 (g) On August 4, 2021, Afya Brazil acquired 100 618,956 (h) On October 1, 2021, Afya Brazil acquired 100 21,000 1,781 (i) On November 5, 2021, Afya Brazil concluded the acquisition of 100 54,000 54,000 (j) On March 4, 2022, Afya Brazil acquired 100 19,200 763 18,325 (k) On April 5, 2022 100 15,000 333 14,173 (l) On March 23, 2022, Afya Brazil acquired 100 12,000 9,520 3,000 (m) On January 2, 2023, Afya Brazil acquired 100 816,236 575,000 234,000 16,000 134,000 50,000 50,000 7,236 13.2.4 Notes payable With the acquisition of UniSL, Afya Brazil assumed notes payable regarding the previous acquisition of a portion of the operations of Universidade Luterana do Brasil (ULBRA) by UniSL in auction by the end of 2018. Two of the UniSL campuses, located in the cities of Ji-Paraná and Porto Velho, State of Rondônia, were acquired in such transaction. As of December 31, 2023, all balances of Notes payable were paid and adjusted by 100% of IPCA-E. Below are the carrying amounts of notes payable and the movements during the years ended December 31, 2023, 2022 and 2021: Schedule of carrying amount of notes payable and the movements 2023 2022 2021 Opening balance 62,176 72,726 76,181 Payments (i) (49,347) (12,000) (9,800) Payments of interest (i) (15,529) (3,008) (1,268) Monetary indexation 2,700 4,458 7,613 Closing balance - 62,176 72,726 Current - 62,176 14,478 Non-current - - 58,248 (i) The amounts are included in cash flows from investing activities. 13.3 Fair values The table below is a comparison of the carrying amounts and fair values of the Company’s financial instruments, other than those carrying amounts that are reasonable approximation of fair values: Schedule of fair values of the company's financial instruments 2023 2022 Carrying amount Fair value Carrying amount Fair value Financial assets Trade receivables (non-current) 39,485 39,485 42,568 42,568 39,485 39,485 42,568 42,568 Financial liabilities Loans and financing 1,800,775 1,795,752 1,882,901 1,934,295 Lease liabilities 874,569 874,569 769,525 769,525 Accounts payable to selling shareholders 566,867 566,867 528,678 528,678 Notes payable - - 62,176 62,176 3,242,211 3,237,188 3,243,280 3,294,674 The Company assessed that the fair values of current trade receivables and other current assets, trade payables, advances from customers and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments. The financial instruments for which the fair value are disclosed are based on Level 2 fair value measurement hierarchy. There has been no change in fair value hierarchy during the years ended December 31, 2023 and 2022. The fair value of interest-bearing borrowings and loans are determined by using the DCF method using a discount rate that reflects the issuer’s borrowing rate as of the end of the reporting period. The own non-performance risk at December 31, 2023 was assessed to be insignificant. 13.4 Financial instruments risk management objectives and policies The Company’s main financial liabilities comprise loans and financing, lease liabilities, accounts payable to selling shareholders, notes payable, trade payables and advances from customers. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s main financial assets include trade receivables and cash and cash equivalents. The Company is exposed to market risk, credit risk and liquidity risk. The Company monitors market, credit and liquidity risks in line with the objectives of capital management and counts on the support, monitoring and oversight of the Board of Directors in decisions related to capital management and its alignment with the objectives and risks. The Company’s policy is that no trading of derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees with policies for managing each of these risks, which are summarized below. 13.4.1 Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company’s exposure to market risk is related to interest rate and foreign currency risk. The sensitivity analysis in the following sections relates to the position as of December 31, 2023. a) Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s cash equivalents, loans and financing, accounts payable to selling shareholders and notes payable, with floating interest rates. Sensitivity analysis The table below demonstrates the sensitivity to a reasonably possible change in interest on cash equivalents, loans and financing, accounts payable to selling shareholders and notes payable. With all variables held constant, the Company’s income before income taxes is affected through the impact on floating interest rates, as follows: Schedule of income before income taxes 2023 Index - % per year Base rate Cash equivalents 518,111 100.8% of CDI 60,846 Loans and financing (529,340) CDI + 1.8% (71,196) Loans and financing (412,880) CDI + 1.9% (55,945) Loans and financing (11,193) TJLP (733) Loans and financing (21,405) CDI + 1.75% (2,868) Accounts payable to selling shareholders (274,428) CDI (31,971) Accounts payable to selling shareholders (256,488) SELIC (29,881) Net exposure (131,748) Increase in basis points +75 +150 Effect on profit before tax (7,407) (14,814) b) Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates to cash and cash equivalents denominated in U.S. dollars in the amount of R$ 23,173 24,447 Sensitivity analysis The table below demonstrates the sensitivity in the Company’s income before income taxes of a 10 4.8413 1.00 Schedule of sensitivity foreign currency Exposure +10% -10% Cash equivalents 23,173 2,317 (2,317) 13.4.2 Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including cash and cash equivalents. Customer credit risk is managed by the Company based on the established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. See Note 7 for additional information on the Company’s trade receivables. Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and within limits assigned to each counterparty. The Company’s maximum exposure to credit risk for the components of the statements of financial position on December 31, 2023 and 2022 is the carrying amounts of its financial assets. 13.4.3 Liquidity risk The Company’s Management has responsibility for monitoring liquidity risk. In order to achieve the Company’s objective, Management regularly reviews the risk and maintains appropriate reserves, including bank credit facilities with first tier financial institutions. Management also continuously monitors projected and actual cash flows and the combination of the maturity profiles of the financial assets and liabilities. The main requirements for financial resources used by the Company arise from the need to make payments for suppliers, operating expenses, labor and social obligations, loans and financing and accounts payable to selling shareholders. The tables below summarize the maturity profile of the Company’s financial liabilities based on contractual undiscounted amounts: Schedule of maturity profile of financial liabilities As of December 31, 2023 Less than 1 year 1 to 3 years 3 to 5 years More than 5 years Total Trade payables 108,222 - - - 108,222 Loans and financing 298,981 1,383,255 568,326 - 2,250,562 Lease liabilities 137,735 268,724 255,456 1,261,213 1,923,128 Accounts payable to selling shareholders 387,693 231,478 - - 619,171 Advances from customers 153,485 - - - 153,485 1,086,116 1,883,457 823,782 1,261,213 5,054,568 As of December 31, 2022 Less than 1 year 1 to 3 years 3 to 5 years More than 5 years Total Trade payables 71,482 - - - 71,482 Loans and financing 287,741 788,190 1,237,599 - 2,313,530 Lease liabilities 117,506 234,688 219,127 1,139,771 1,711,092 Accounts payable to selling shareholders 282,481 339,281 - - 621,762 Notes payable 62,176 - - - 62,176 Advances from customers 133,050 - - - 133,050 954,436 1,362,159 1,456,726 1,139,771 4,913,092 13.5 Changes in liabilities arising from financing activities Schedule of changes in liabilities arising from financing activities January 1, 2023 Payments of principal Payments of interest Additions Interest Business combination Other December 31, 2023 Loans and financing (i) 1,882,901 (112,630) (175,889) 5,288 197,678 - 3,427 1,800,775 Lease liabilities (i) 769,525 (31,473) (103,911) 77,715 100,849 65,408 (3,544) 874,569 Dividends payable - (18,750) - 18,750 - - - - 2,652,426 (162,853) (279,800) 101,753 298,527 65,408 (117) 2,675,344 January 1, 2022 Payments of principal Payments of interest Additions Interest Business combinations Other December 31, 2022 Loans and financing (i) 1,374,876 (1,791) (116,587) 496,885 127,559 - 1,959 1,882,901 Lease liabilities (i) 714,085 (28,511) (85,001) 100,873 88,571 - (20,492) 769,525 Dividends payable - (19,736) - 19,736 - - - - 2,088,961 (50,038) (201,588) 617,494 216,130 - (18,533) 2,652,426 January 1, 2021 Payments of principal Payments of interest Additions (ii) Interest Business combinations Other December 31, 2021 Loans and financing (i) 617,485 (107,766) (50,310) 809,539 68,909 36,591 428 1,374,876 Lease liabilities (i) 447,703 (20,075) (67,676) 158,651 67,212 139,514 (11,244) 714,085 Dividends payable - (18,648) - 18,648 - - - - 1,065,188 (146,489) (117,986) 986,838 136,121 176,105 (10,816) 2,088,961 (i) Payment of interest of loan and financing and lease liabilities are included in cash flows from financing activities. (ii) The additions of loans and financing in 2021 include proceeds from the SoftBank transaction of R$822,569, net of the transaction costs of R$13,030. |
Fair value measurement
Fair value measurement | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurement | |
Fair value measurement | 14 Fair value measurement The table below provides the fair value measurement hierarchy of the Company’s assets and liabilities as of December 31, 2023 and 2022. Schedule of fair value measurement Fair value measurement Total Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2023 Assets for which fair values are disclosed Trade receivables (non-current) 39,485 - 39,485 - Liabilities for which fair values are disclosed Loans and financing (1,795,752) - (1,795,752) - Lease liabilities (874,569) - (874,569) - Accounts payable to selling shareholders (566,867) - (566,867) - December 31, 2022 Assets for which fair values are disclosed Trade receivables (non-current) 42,568 - 42,568 - Liabilities for which fair values are disclosed Loans and financing (1,934,295) - (1,934,295) - Lease liabilities (769,525) - (769,525) - Accounts payable to selling shareholders (528,678) - (528,678) - Notes payable (62,176) - (62,176) - There were no transfers between Levels during the period or year presented. |
Capital management
Capital management | 12 Months Ended |
Dec. 31, 2023 | |
Capital Management | |
Capital management | 15 Capital management For the purposes of the Company’s capital management, capital considers total equity. The primary objective of the Company’s capital management is to maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. In order to achieve this overall objective, the Company’s capital management, among other things, aims to ensure that it meets financial covenants that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans or debentures. There have been no breaches of the financial covenants of any loans or debentures in the current and previous periods. No changes were made in the objectives, policies or processes for managing capital during the years ended December 31, 2023 and 2022. |
Labor and social obligations
Labor and social obligations | 12 Months Ended |
Dec. 31, 2023 | |
Labor And Social Obligations | |
Labor and social obligations | 16 Labor and social obligations a) Variable compensation (bonuses) The Company recorded bonuses related to variable compensation of employees and management in cost of services and selling, general and administrative expenses of R$ 22,185 , R$ 24,248 25,587 b) Afya Limited share-based compensation plans b.1) Stock options plan The stock options plan was approved on August 30, 2019 and granted to senior executives and other employees of the Company from that date, with subsequent changes in the strike price, as approved, on July 29, 2020 and July 8, 2022, resulting in the strike price of the tranches still to be vested, at the later date, having their strike price modified to the IPO price in Brazilian Reais (R$ 71.22 As result of those modifications, the expense related to the share-based payment of the Company reflects the cost of the original award at grant date over the vesting period plus the incremental fair values of the repriced options at modification dates over the vesting period of the stock options. The average incremental fair value, as result of the modification occurred on July 8, 2022, was R$ 3.84 Schedule of model used to determine the fair value of the stock options Modified plan Original plan Strike price at the measurement date R$ 83 R$ 91 140 Dividend yield (%) 0.0 0.0 Expected volatility (%) 48 59 48 59 Risk-free interest rate (%) 13 15 13 15 Expected life of stock options (years) 1 4 1 4 Share price at the measurement date R$ 48 R$ 48 Valuation model Binomial Binomial Weighted average fair value at the measurement date R$ 53.06 R$ 49.22 On July 31, 2023, the People and ESG Committee approved a further change in the share-based compensation plan to retain talents and reinforce the compensation plan. All the holders of stock options granted before July 11, 2022, with strike price based on the IPO price in Brazilian Reais or above, were offered the possibility to exchange the stock options for a number of Restricted Stock Units (RSUs) with conversion ratios based on fair value of the original plan, at modification date, so that the total fair value of the modified award remains the same as the original plan, resulting in a weighted average conversion ratio of 0.12 RSUs per stock option. As result, the exchange from stock options to RSUs was deemed as a replacement award and thus assessed as a modification by the Company and accounted in accordance with IFRS 2, since the beneficiaries will have a 'value for value’ benefit of settling its award for no cash consideration. The key inputs to the valuation model used to determine the total fair value of the stock options for conversion to RSUs are as follows: Schedule of model used to determine the fair value of the stock options Modified plan Strike price at the measurement date R$ 95 160 Dividend yield (%) 0.0 Expected volatility (%) 45 48 Risk-free interest rate (%) 10 12 Expected life of stock options (years) 1 5 Share price at the measurement date R$ 75 Valuation model Binomial Weighted average conversion rate (RSUs/Stock options) 0.12 Moreover, the People and ESG Committee also approved, on July 31, 2023, a modification in the index rate to the strike prices of its granted stock options. The result is that strike prices are now adjusted by the Brazilian inflation rate (IPCA) instead of the CDI rate. These changes were accounted as modifications in accordance with IFRS 2. The average incremental fair value, as result of the modification occurred on such date, was R$2.10 Brazilian Reais per stock option. The table below lists the inputs to the valuation model used to determine the incremental fair value of the stock options as result of the modification: Schedule of model used to determine incremental fair value of the stock options Modified plan Original plan Strike price index IPCA CDI Strike price at the measurement date R$ 59 104 R$ 59 104 Dividend yield (%) 0.0 0.0 Expected volatility (%) 45 54 45 54 Risk-free interest rate (%) 10 12 10 12 Expected life of stock options (years) 0 - 5 0 - 5 Share price at the measurement date R$ 75 R$ 75 Valuation model Binomial Binomial Weighted average fair value at the measurement date R$ 28.10 R$ 26.00 On February 13, 2023, April 17, 2023, August 1, 2023, October 1, 2023 and December 1, 2023 the Company granted 15,000 30,000 153,000 37,000 232,000 Schedule of additional stock options February 2023 April 2023 August 2023 October 2023 December 2023 Strike price at the measurement date R$ 56 R$ 57 R$ 59 R$ 59 R$ 60 Dividend yield (%) 0.0 0.0 0.0 0.0 0.0 Expected volatility (%) 46 56 48 55 47 56 44 56 34 56 Risk-free interest rate (%) 13 11 13 10 12 11 12 10 11 Expected life of stock options (years) 1 5 1 5 1 5 1 5 1 5 Share price at the measurement date R$ 70.69 R$ 62.51 R$ 76.45 R$ 79.12 R$ 100.97 Valuation model Binomial Binomial Binomial Binomial Binomial Weighted average fair value at the measurement date R$ 29.54 R$ 32.04 R$ 37.04 R$ 38.67 R$ 54.25 The table below illustrates the number and movements in stock options for the years ended December 31, 2023, 2022 and 2021: Schedule of share-based compensation plan Weighted average strike price (in Brazilian Reais) Number of stock options 2023 2022 2021 Outstanding at January 1 79.47 3,729,287 3,086,728 2,510,983 Granted 60.83 467,000 1,234,919 1,170,000 Exercised 59.67 (164,214) - (442,669) Stock options exchanged to RSUs - (1,751,599) - - Forfeited 110.95 (333,111) (365,749) (60,000) Expired 94.17 (251,299) (226,611) (91,586) Outstanding at December 31 64.33 1,696,064 3,729,287 3,086,728 Exercisable 86.23 242,235 1,133,774 542,061 The share-based compensation expense recognized in selling, general and administrative expenses in the statement of income for the year ended December 31, 2023 was R$ 20,850 27,242 43,377 b.2) Restricted Stock Units (RSU) Program On July 8, 2022, the Company approved the new Restricted Stock Units (RSU) program for employees. The participant's right to effectively receive ownership of the restricted shares will be conditioned on the participant's continuance as an employee or director in the business group from the grant date until vesting. The executives will be entitled to these shares in a proportion of 10 20 30 40 In July 2022 and September 2022, 442,546 4,678 48.24 72.59 8,000 16,000 153,490 63,000 76,600 70.69 62.51 76.45 79.12 100.97 As described above, on July 31, 2023, the holders of stock options granted before July 11, 2022 were offered the possibility to exchange the stock options for a number of Restricted Stock Units (RSUs). The table below illustrates the number and movements in RSUs for the years ended December 31, 2023 and 2022: Schedule of stock option 2023 2022 Outstanding at January 1 447,224 - Granted 317,090 447,224 Stock options exchanged to RSUs 215,797 - Exercised (99,576) - Forfeited (26,104) - Outstanding at December 31 854,431 447,224 The Company accounts for the RSU plan as an equity-settled plan, except for the portion of labor and social securities obligations. Total RSU expense recognized in selling, general and administrative expenses in the statement of income for the year ended December 31, 2023 amount R$ 10,685 4,032 7,171 2,167 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Equity Abstract | |
Equity | 17 Equity a) Share capital As of December 31, 2023 and 2022, the Company’s share capital was R$ 17 93,722,831 47,920,068 45,802,763 50 b) Dividends In the year ended December 31, 2023, CCSI and IESVAP approved the payment of dividends of R$ 65,539 46,788 18,750 66,828 47,092 19,736 65,521 46,873 18,648 c) Share repurchase program On October 27, 2021, the Company’s board of directors approved a new share repurchase program. Afya may repurchase up to 1,383,108 On January 27, 2022, the Company’s board of directors approved a new share repurchase program. Afya may repurchase up to 1,874,457 On March 24, 2023, the Company’s board of directors approved the fourth share repurchase program. Afya may repurchase up to 2,000,000 During the year ended December 31, 2023, the Company’s cash outflow was R$ 12,369 152,317 213,722 The table below illustrates the number and movements in treasury shares during the years ended December 31, 2023, 2022 and 2021: Schedule illustrates the number and movements in treasury shares Number of treasury shares Average price (in Brazilian Reais) Outstanding at January 1, 2021 - - Repurchased 2,142,051 119.99 Transferred from exercise of stock options (442,669) 124.26 Transferred from shares contribution (44,455) 111.94 Outstanding at December 31, 2021 1,654,927 92.23 Repurchased 2,131,358 71.46 Outstanding at December 31, 2022 3,786,285 80.54 Repurchased 216,339 57.17 Delivered under the share-based compensation plan (229,146) 79.28 Outstanding at December 31, 2023 3,773,478 79.28 |
Earnings per share (EPS)
Earnings per share (EPS) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Earnings per share (EPS) | 18 Earnings per share (EPS) Basic EPS is calculated by dividing net income attributable to the equity holders of the Company by the weighted average number of common shares outstanding during the year. Diluted EPS is calculated by dividing net income attributable to the equity holders of the parent by the weighted average number of common shares outstanding during the year plus the weighted average number of shares that would be issued on conversion of all potential shares with dilutive effects. Diluted earnings per share are computed including stock options granted to key management using the treasury shares method when the effect is dilutive. The Company has the stock option and restricted share unit plans in the category of potentially dilutive shares. Softbank’s series A perpetual convertible preferred shares are antidilutive as of December 31, 2023, 2022 and 2021 and are not included on diluted earnings per share. The table below reflects the net income and share data used in the basic and diluted EPS calculations: Schedule of earnings per share 2023 2022 2021 Numerator Net income attributable to equity holders of the parent 386,324 373,569 223,326 Denominator Weighted average number of outstanding shares 89,830,351 90,335,037 93,291,480 Effects of dilution from stock options and restricted share units 706,492 329,085 811,818 Weighted average number of outstanding shares adjusted for the effect of dilution 90,536,843 90,664,122 94,103,298 Basic earnings per share (R$) 4.30 4.14 2.39 Diluted earnings per share (R$) 4.27 4.12 2.37 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Revenue | 19 Revenue Schedule of net sales revenue 2023 2022 2021 Tuition fees 3,505,250 2,827,567 2,124,589 Other 263,937 213,040 167,441 Deductions Discount and scholarships (240,314) (241,404) (229,254) Early payment discounts (195,054) (92,234) (49,879) Returns (27,743) (45,402) (42,373) Taxes (142,825) (107,004) (74,232) PROUNI (287,338) (225,506) (176,921) Revenue from contracts with customers 2,875,913 2,329,057 1,719,371 Timing of revenue recognition of revenue from contracts with customers: Tuition, digital content and app subscription fees - Transferred over time 2,821,251 2,273,578 1,640,889 Other - Transferred at a point in time 54,662 55,479 78,482 The Company’s revenue from contracts with customers are all in Brazil. The Company is not subject to the payment of the Social Integration Program tax (Programa de Integração Social, or PIS) and the Social Contribution on Revenue tax (Contribuição para o Financiamento da Seguridade Social, or COFINS) on the revenue from under graduation degrees under the PROUNI program. The table below presents statements of income for the Company’s operating segments for the years ended December 31, 2023, 2022 and 2021: Schedule of revenue by segment Revenue by segment Undergrad Continuing Education Digital Services Elimination (inter-segment transactions) 2023 Types of services or goods 2,511,018 146,827 229,285 (11,217) 2,875,913 Tuition fees 2,494,121 146,477 - - 2,640,598 Other 16,897 350 229,285 (11,217) 235,315 Timing of revenue recognition 2,511,018 146,827 229,285 (11,217) 2,875,913 Transferred over time 2,494,121 146,827 191,520 (11,217) 2,821,251 Transferred at a point in time 16,897 - 37,765 - 54,662 Revenue by segment Undergrad Continuing Education Digital Services Elimination (inter-segment transactions) 2022 Types of services or goods 2,037,889 108,806 189,984 (7,622) 2,329,057 Tuition fees 2,023,128 108,648 - - 2,131,776 Other 14,761 158 189,984 (7,622) 197,281 Timing of revenue recognition 2,037,889 108,806 189,984 (7,622) 2,329,057 Transferred over time 2,024,373 108,806 145,939 (5,540) 2,273,578 Transferred at a point in time 13,516 - 44,045 (2,082) 55,479 Revenue by segment Undergrad Continuing Education Digital Services Elimination (inter-segment transactions) 2021 Types of services or goods 1,498,408 72,983 151,958 (3,978) 1,719,371 Tuition fees 1,486,111 72,983 - - 1,559,094 Other 12,297 - 151,958 (3,978) 160,277 Timing of revenue recognition 1,498,408 72,983 151,958 (3,978) 1,719,371 Transferred over time 1,486,111 72,983 81,795 - 1,640,889 Transferred at a point in time 12,297 - 70,163 (3,978) 78,482 |
Expenses and costs by nature
Expenses and costs by nature | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Expenses and costs by nature | 20 Expenses and costs by nature Schedule of expenses by nature 2023 2022 2021 Cost of services (1,109,813) (859,552) (652,300) Selling, general and administrative expenses (1,014,684) (798,153) (622,615) Total (2,124,497) (1,657,705) (1,274,915) Payroll (1,085,144) (880,664) (677,564) Hospital and medical agreements (86,151) (66,065) (37,449) Depreciation and amortization (289,511) (206,220) (154,220) Lease expenses (10,871) (12,153) (11,229) Utilities (20,403) (17,682) (10,643) Maintenance (105,919) (76,475) (47,141) Share-based compensation (31,535) (31,274) (43,377) Tax expenses (14,447) (10,518) (7,997) Pedagogical services (64,081) (48,084) (47,881) Sales and marketing (74,140) (48,217) (39,506) Allowance for expected credit losses (74,552) (42,708) (47,819) Travel expenses (16,098) (14,003) (7,542) Consulting fees (62,630) (35,326) (38,818) Other (189,015) (168,316) (103,729) Total (2,124,497) (1,657,705) (1,274,915) |
Finance result
Finance result | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Finance result | 21 Finance result Schedule of finance result 2023 2022 2021 Income from financial investments 73,672 67,810 35,773 Interest received 33,450 27,197 23,040 Other 3,520 7,035 5,753 Finance income 110,642 102,042 64,566 Interest expense (285,447) (200,081) (108,437) Interest expense on lease liabilities (100,849) (88,571) (67,212) Financial discounts granted (30,891) (24,092) (23,193) Bank fees (7,163) (8,623) (7,878) Foreign exchange loss, net (681) (852) (17,973) IOF taxes (taxes on financial transactions) (1,947) (178) (3,306) Other (30,638) (27,496) (15,797) Finance expenses (457,616) (349,893) (243,796) Finance result (346,974) (247,851) (179,230) |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Income taxes | 22 Income taxes Income taxes are comprised of taxation over operations in Brazil, related to Corporate Income Tax ("IRPJ") and Social Contribution on Net Profit ("CSLL"). According to Brazilian tax legislation, income taxes and social contribution are assessed and paid by legal entity and not on a consolidated basis. Reconciliation of income taxes expense The table below is a reconciliation of income tax expense to profit for the year, calculated by applying the combined Brazilian statutory rates at 34% for the years ended December 31, 2023, 2022 and 2021: Schedule of reconciliation of income tax expense 2023 2022 2021 Income before income taxes 429,582 428,433 273,462 Combined statutory income taxes rate - % 34% 34% 34% Income taxes at statutory rates (146,058) (145,667) (92,977) Reconciliation adjustments: Tax effect on loss from entities not subject to taxation (32,274) (32,859) (37,794) PROUNI - Fiscal Incentive (i) 309,952 270,062 194,830 Unrecognized deferred tax assets (154,062) (117,377) (86,233) Recognized deferred tax assets 3,233 - - Presumed profit income tax regime effect (ii) (8,787) (1,549) (7,066) Permanent adjustments (4,687) (12,226) (6,232) Other 8,517 3,939 4,293 Income taxes expense - current (24,166) (35,677) (31,179) Effective rate 5.62% 8.33% 11.40% (i) The Company adhered to PROUNI, established by Law 11,096 / 2005, which is a federal program that exempts companies of paying income taxes and social contribution upon compliance with certain requirements required by said Law. (ii) Brazilian tax law establishes that companies that generate gross revenues of up to R$78,000 in the prior fiscal year may calculate income taxes as a percentage of gross revenue, using the presumed profit tax regime. The effect of the presumed profit of certain subsidiaries represents the difference between the taxation based on this method and the amount that would be due based on the statutory rate applied to the taxable profit of the subsidiaries. Deferred income taxes As of December 31, 2023, the Company had accumulated unrecognized deferred income tax assets on temporary differences and tax losses in the amount of R$ 1,211,909 778,080 9,508 |
Insurance contracts and conting
Insurance contracts and contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Insurance Contracts And Contingencies | |
Insurance contracts and contingencies | 23 Insurance contracts and contingencies a) Insurance contracts The Company and its subsidiaries have a risk management program with the purpose of delimiting the risks, seeking in the market coverage compatible with its size and operations. b) Legal proceedings and contingencies The provisions related to labor, civil and taxes proceedings whose likelihood of loss is assessed as probable are as follows: Schedule of legal proceedings and contingencies Labor Civil Taxes Total Balances as of December 31, 2020 4,519 13,280 35,340 53,139 Business combinations 16,597 6,017 57,638 80,252 Additions 5,418 5,101 14,225 24,744 Reversals (1,044) (1,470) (7,334) (9,848) Balances as of December 31, 2021 25,490 22,928 99,869 148,287 Additions 2,300 7,911 63,698 73,909 Reversals (5,306) (6,175) (14,861) (26,342) Balances as of December 31, 2022 22,484 24,664 148,706 195,854 Business combination 64 88 - 152 Additions 3,424 5,875 9,037 18,336 Reversals (i) (3,251) (9,327) (97,403) (109,981) Balances as of December 31, 2023 22,721 21,300 60,340 104,361 (i) On August 10, 2023, Unigranrio entered into a tax amnesty program on interest and penalties to settle a tax proceeding with respect to ISS (tax on services) with the municipality of Rio de Janeiro, which result in a payment of R$14,819. The selling shareholders of Unigranrio agreed to pay R$5,438 regarding this matter, which was deducted from the accounts payable to selling shareholders. The Company had a provision of R$53,302 and an indemnification asset from the selling shareholders of R$20,000 (in light of the indemnification clauses as defined at acquisition of Unigranrio), in respect to such tax proceedings. The difference between the provision, indemnification asset and the actual paid amount was recorded as Other income (expenses), net on the consolidated statements of income and comprehensive income. The major labor proceedings to which the Company is a party were filed by former employees or service providers seeking enforcement of labor rights allegedly not provided by us. The judicial proceedings relates to employment bonds (judicial proceedings filed by former service providers), overtime, premiums for hazardous workplace conditions, statutory severance, fines for severance payment delays, and compensation for workplace-related accidents. The civil claims to which the Company is a party generally relate to consumer claims, including those related to student complaints. The tax claims to which the Company is party are mostly tax foreclosures filed by Brazilian federal and municipal tax authorities. There are other civil, labor, taxes and social security proceedings assessed by Management and its legal counsels as possible risk of loss, for which no provisions are recognized, as follows: Schedule of social security proceedings assessed by Management 2023 2022 Labor 32,683 13,914 Civil 51,319 59,603 Taxes and social security 5,669 4,931 Total 89,671 78,448 The Company has judicial deposits, related to taxes, civil and labor proceedings, recorded in other assets (non-current) in the amount of R$ 14,187 12,693 Under the terms of the Share Purchase and Sale Agreements ("Agreements") between the Company and the selling shareholders of the subsidiaries acquired, the Company assesses that the selling shareholders are exclusively responsible for any provisions (including labor, tax and civil), which are or will be the subject of a claim by any third party, arising from the act or fact occurred, by action or omission, prior to or on the closing dates of the acquisitions. Considering that the provisions for legal proceedings recorded by the Company that result from causes arising from events occurring prior to the closing dates of the acquisitions, any liability for the amounts to be disbursed, in case of their effective materialization in loss, belongs exclusively to the selling shareholders. In this context, the Agreements state that the Company and its subsidiaries are indemnified and therefore exempt from any liability related to said contingent liabilities and, therefore, the provision amounts related to such contingencies are presented in the non-current liabilities and the correspondent amount of R$ 81,855 145,300 |
Non-cash transactions
Non-cash transactions | 12 Months Ended |
Dec. 31, 2023 | |
Non-cash Transactions | |
Non-cash transactions | 24 Non-cash transactions During the years ended December 31, 2023, 2022 and 2021, the Company carried out non-cash transactions which are not reflected in the statements of cash flows. The main non-cash transactions are as follows: Schedule of non-cash transactions 2023 2022 2021 Issuance of shares for acquisition of iClinic - - 71,500 Issuance of shares for acquisition of Cliquefarma - - 3,000 Issuance of shares for acquisition of RX PRO - - 5,112 Remeasurement of earn-out of Além da Medicina, CardioPapers and Glic 2,556 - - Provision for legal proceedings with corresponding indemnification asset 20,000 48,333 4,232 Additions and remeasurements of right-of-use assets and lease liabilities 77,715 100,873 158,651 |
Subsequent event
Subsequent event | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Subsequent event | 25 Subsequent event Medical seats increase in FIP Guanambi On January 24, 2024, MEC authorized the increase of 40 medical seats of Faculdades Integradas Padrão (FIP Guanambi) located in the city of Guanambi, State of Bahia, which will result in an additional payment of R$ 49,600 3,203 |
Material accounting policies (P
Material accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Material Accounting Policies | |
Business combinations and goodwill | a) Business combinations and goodwill Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Company elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred and included in selling, general and administrative expenses. When the Company acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as of the acquisition date. Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Company re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognized in the consolidated statement of income. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquire are assigned to those units. Where goodwill has been allocated to a cash-generating unit (CGU) and part of the operation within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstances is measured based on the relative values of the disposed operation and the portion of the cash-generating unit retained. |
Current versus non-current classification | b) Current versus non-current classification The Company presents assets and liabilities in the statement of financial position based on current and non-current classification. An asset is current when it is: · Expected to be realized or intended to be sold or consumed in the normal operating cycle; · Held primarily for the purpose of trading; · Expected to be realized within twelve months after the reporting period; or · Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: · It is expected to be settled in the normal operating cycle; · It is held primarily for the purpose of trading; · It is due to be settled within twelve months after the reporting period; or · There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. The Company classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. |
Fair value measurement | c) Fair value measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: (i) in the principal market for the asset or liability; or (ii) in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: · Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities. · Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. · Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. At each reporting date, the Company analyzes the movements in the values of assets and liabilities which are required to be remeasured or reassessed as per the Company’s accounting policies. For this analysis, the Company verifies the major inputs applied in the latest valuation by agreeing the information in the valuation computation to contracts and other relevant documents. The Company also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable. For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above. |
Financial instruments - initial recognition and measurement | d) Financial instruments - initial recognition and measurement A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. i) Financial assets Initial recognition and measurement The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, are measured at the transaction price determined under IFRS 15. In order for a financial asset to be classified and measured at amortized cost or fair value through OCI (Other Comprehensive Income), it needs to give rise to cash flows that are “solely payments of principal and interest (SPPI)” on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Company’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognized on the trade date, i.e., the date that the Company commits to purchase or sell the asset. Subsequent measurement For purposes of subsequent measurement, financial assets are classified as: financial assets at amortized cost or financial assets at fair value through profit or loss. There are no financial assets designated as fair value through OCI. Financial assets at amortized cost The Company measures financial assets at amortized cost if both of the following conditions are met: • The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows, and • The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognized in the statement of income when the asset is derecognized, modified or impaired. Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value recognized in the statement of income. This category includes derivative instruments. Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Company’s statement of financial position) when: • The rights to receive cash flows from the asset have expired; or • The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay. Impairment of financial assets Further disclosures relating to impairment of financial assets are also provided in the following notes: • Significant accounting judgments, estimates and assumptions - Note 3 • Trade receivables - Note 7 The Company recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and the cash flows the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. For trade receivables, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes an allowance for credit losses based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. The Company considers a financial asset to be in default when internal or external information indicates that the Company is unlikely to receive the outstanding contractual amounts in full before considering any credit enhancements held by the Company. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. ii) Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade payables, loans and financing, notes payable, lease liabilities, advances from customers and accounts payable to selling shareholders. Subsequent measurement The measurement of financial liabilities depends on their classification, as described below: Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes, when applicable, derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Gains or losses on liabilities held for trading are recognized in the statement of income. Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. Loans and borrowings After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in the statement of income when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by considering any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance expenses in the statement of income. Derecognition A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of income. Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. |
Cash and cash equivalents | e) Cash and cash equivalents Cash and cash equivalents in the statement of financial position comprise cash at banks and on hand, and short-term financial investments with an original maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term financial investments, as they are considered an integral part of the Company’s cash management. |
Property and equipment | f) Property and equipment Property and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Subsequent expenditures are capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Schedule of estimated useful lives of the assets Building 25 Machinery and equipment 10 Vehicles 4 Furniture and fixtures 10 IT equipment 5 Library books 10 Leasehold improvements 5 20 An item of property and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefit is expected from its use or disposal. Any gain or loss arising on the derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of income when the asset is derecognized. The residual values, useful lives and methods of depreciation of property and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. |
Leases | g) Leases The Company assess at contract inception whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the contract. The arrangement is, or contains, a lease if the arrangement conveys the right to control the use of the identified asset (or assets), even if that asset is (or those assets are) not explicitly specified in an arrangement for a period of time in exchange for consideration. Company as a lessee The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. Right-of-use assets The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Company is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognized right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term. Right-of-use assets are subject to impairment. Lease liabilities At the commencement date of the lease, the Company recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating a lease, if the lease term reflects the Company exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period on which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Short-term leases and leases of low-value assets The Company applies the short-term lease recognition exemption to its short-term leases of properties (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered of low value. Lease payments on short-term leases and leases of low-value assets are recognized as expense on a straight-line basis over the lease term. |
Intangible assets | h) Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangibles are not capitalized and the related expenditure is reflected in the statement of income in the period in which the expenditure is incurred. The useful lives of intangible assets are assessed as finite or indefinite. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of income in the expense category that is consistent with the function of the intangible assets. Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. An intangible asset is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of income. |
Impairment of non-financial assets | i) Impairment of non-financial assets The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are considered. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators. The Company bases its impairment calculation on detailed budgets and forecast calculations, which are prepared separately for each of the Company’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years, considering the companies activities and maturation period of its graduate and undergraduate courses. A long-term growth rate is calculated and applied to project future cash flows after the last projected year. For impairment testing, goodwill acquired through business combinations and licenses with indefinite useful lives are allocated to their respective CGUs. The Company defined each of its operating subsidiaries as a CGU, except for digital services segment, which combines subsidiaries of (i) “Content & Technology for medical education”; (ii) “Clinical Decision Software”; and (iii) “Practice Management Tools & Electronic Prescription”, where the subsidiaries were combined as one CGU following the business strategic pillars. Whenever applicable, impairment losses of continuing operations are recognized in the statement of income in expense categories consistent with the function of the impaired asset. For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognized impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of income. Goodwill is tested for impairment annually as at December 31 and when circumstances indicate that the carrying value may be impaired. Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognized. Impairment losses relating to goodwill cannot be reversed in future periods. Intangible assets with indefinite useful lives are tested for impairment annually as at December 31 at the CGU level, as appropriate, and when circumstances indicate that the carrying value may be impaired. |
Investments | j) Investments Investments in associates are initially recognized at consideration transferred and adjusted thereafter for the equity method, being increased or reduced from its interest in the investee's income after the acquisition date. An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. |
Accounts payable to selling shareholders | k) Accounts payable to selling shareholders These amounts represent liabilities related to the acquisitions made by the Company which are not yet due. Accounts payable to selling shareholders are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the effective interest method, except for the contingent consideration related to earn-outs, which are measured at fair value through profit or loss. |
Provisions | l) Provisions Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of income, net of any reimbursement, when applicable. |
Dividends | m) Dividends The Company recognizes a liability to pay a dividend when the distribution is authorized and the distribution is no longer at the discretion of the Company. The distribution is authorized when it is required to pay a minimum dividend of the net income for the year in accordance with the Brazilian Corporate Law (applicable for Afya Brazil and its subsidiaries) and the Company’s By-Laws or is approved by the shareholders. In respect to the consolidated statement of changes in equity, the amount corresponding to the non-controlling interest over the dividends declared are recognized directly in equity. |
Labor and social obligations | n) Labor and social obligations Labor and social obligations are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. |
Share-based payments | o) Share-based payments Certain key executives of the Company receive remuneration in the form of share-based payments, which includes Stock Options and Restricted Stock Units (“RSUs”), whereby the executives render services as consideration for equity instruments (equity-settled transactions). The expense of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. That expense is recognized in selling, general and administrative expenses, together with a corresponding increase in equity, over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of income for a period represents the movement in cumulative expense recognized as at the beginning and end of that period. Service and non-market performance conditions are not considered when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Company’s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognized is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. An additional expense, measured as at the date of modification, is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through the statement of income. The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share. |
Revenue from contracts with customers | p) Revenue from contracts with customers Revenue recognition transferred over time The Company's revenue consists primarily of tuition fees charged for medical courses. The Company also generates revenue from tuition fees for other undergraduate courses, student fees, certain education-related activities, digital education content and subscription of digital services. Revenues are recognized when services are rendered to the customer and the performance obligation is satisfied. Revenue from tuitions, digital education content and electronic medical records are recognized over time when services are rendered to the customer and the Company satisfies its performance obligation under the contract at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those services. Revenues from tuitions are recognized net of scholarships and other discounts, refunds and taxes. Other revenues are recognized at a point in time when the service is rendered to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for the service. Other revenues are presented net of the corresponding discounts, returns and taxes. Revenue recognition transferred at point in time Revenue from sale of printed books, e-books, healthcare payments, online platforms and marketing for pharmaceutical industry are recognized at the point in time when control of the asset or services is transferred to the customer, generally on delivery of the goods at the customer’s location and permission to access the digital content. The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price for the printed books and e-books, the Company considers the effects of variable consideration, financing component, noncash consideration, and consideration payable to the customer to be not significant. The Company concluded that it is the principal in its revenue arrangements. The Company assesses collectability on a portfolio basis prior to recording revenue. Generally, students cannot re-enroll for the next academic session without satisfactory resolution of any past-due amounts. If a student withdraws from an institution, the Company's obligation to issue a refund depends on the refund policy at that institution and the timing of the student's withdrawal. Generally, the refund obligations are reduced over the course of the academic term. Trade receivables Trade receivables represent the Company’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in Financial instruments - initial recognition and subsequent measurement. Advances from customers Advances from customers (a contract liability) are the obligation to transfer services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer, as a result of pre-paid tuition, digital education content and mobile app subscription for digital medical content received from customers and is recognized separately in current liabilities, when the payment is received. Advances from customers are recognized as revenue when the Company performs all obligations related to the contract, generally in the following month. |
Taxes | q) Taxes The Company’s subsidiaries in the undergrad segment joined the PROUNI ( Programa Universidade para Todos • Income taxes and social contribution • PIS and COFINS The regulation of PROUNI defines that the revenue from traditional and technological graduation activities is exempt from PIS and COFINS. For income from other teaching activities, PIS and COFINS are charged at rates of 0.65 3.00 1.65 7.6 Current income taxes Current income taxes were calculated based on the criteria established by the Normative Instruction of the Brazilian Internal Revenue Service, specifically regarding the PROUNI program, which allows exemption of these taxes from traditional and technological graduation activities. Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate. |
Treasury shares | r) Treasury shares Own equity instruments that are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments. Any difference between the carrying amount and the consideration, if reissued, is recognized in the share premium. 2.4 Changes in accounting policies and disclosures New standards, interpretations and amendments issued and adopted by the Company In the current year, the Company applied a series of changes to the IFRSs issued by the International Accounting Standards Board (IASB) that are mandatorily for an accounting period beginning on or after January 1, 2023, as listed below: Schedule of changes in accounting policies and disclosures Amendments / standards Description Amendments to IAS 1 and IFRS Practice Statement 2 - Making Materiality Judgments The amendments to IAS 1 and IFRS Practice Statement 2 provide guidance and examples to help entities apply materiality judgments to accounting policy disclosures. The amendments aim to help entities provide more useful accounting policy disclosures by replacing the requirement for entities to disclose their "material" accounting policies with a requirement to disclose their "material" accounting policies and adding guidance on how entities apply the concept of materiality when making decisions about accounting policy disclosures. The amendments have had an impact on the Company’s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company’s consolidated financial statements. Amendments to IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - Definition of Accounting Estimates The amendments to IAS 8 clarify the distinction between changes in accounting estimates, changes in accounting policies and correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates. These amendments have no significant impact on the Company’s consolidated financial statements. Amendments to IAS 12 - Income Taxes - International Tax Reform - Pillar Two Model Rules In October 2021, more than 130 countries agreed to implement a minimum tax regime for multinational groups, known as Pillar Two, to reform the international corporate taxation. Pillar Two aims to ensure that multinational groups in scope are liable to a minimum effective corporate tax rate of 15 per cent per country. In December 2021, the OECD released the Pillar Two model rules - accompanied by commentary and guidelines - which are due to be passed into national legislation but adapted by local conditions. In response to the OECD's Pillar Two rules, the amendments to IAS 12 were introduced and include: (i) a mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules; and (ii) disclosure requirements for affected entities to help users of the financial statements better understand an entity's exposure to Pillar Two income taxes arising from this legislation, especially prior to the effective date. The countries where the Company has its tax domicile have not yet enacted any tax legislation in connection with Pillar Two. Therefore, these amendments have no significant impact on the Company’s consolidated financial statements as of December 2023 Amendments to IAS 12 Income Taxes - Deferred Tax related to Assets and Liabilities arising from a Single Transaction The amendments to IAS 12 Income Taxes narrow the scope of the initial recognition exception, so that it no longer applies to transactions that generate equal taxable and deductible temporary differences, such as leases and decommissioning liabilities. These amendments have no significant impact on the Company’s consolidated financial statements. IFRS 17 - Insurance Contracts IFRS 17 is a new accounting standard with scope for insurance contracts, covering recognition and measurement, presentation and disclosure. IFRS 17 replaces IFRS 4 - Insurance Contracts. IFRS 17 applies to all types of insurance contracts (such as life, property and casualty, direct insurance and reinsurance), regardless of the type of entities issuing them, as well as to certain guarantees and financial instruments with discretionary participation characteristics; Some scope exceptions will apply. The overall objective of IFRS 17 is to provide a comprehensive accounting model for insurance contracts that is most useful and consistent for insurers, covering all relevant accounting aspects. The Company does not have any contracts that meet the definition of an insurance contract under IFRS 17. New standards, interpretations and amendments issued but not yet effective The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s consolidated financial statements are presented below. The Company intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. Amendments / standards Description Amendments to IFRS 16: Lease Liability in a Sale and Leaseback In September 2022, the IASB issued amendments to IFRS 16 to specify the requirements that a seller-lessee uses in measuring lease liability arising from a sale and lease back transaction, in order to ensure that the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use that it holds. The amendments are effective for annual financial statements periods beginning on or after January 1, 2024 and shall apply retrospectively to sale and leaseback transactions entered into after the initial application date of IFRS 16. Early adoption is permitted but must be disclosed. Amendments to IAS 1: Classification of Liabilities as Current or Non-Current In January 2020 and October 2022, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or non-current. The amendments clarify: • What is meant by the right to postpone liquidation; • That the right to defer should exist at the end of the financial reporting period; • That the rating is not affected by the likelihood that the entity will exercise its right to defer; • That only if a derivative embedded in a convertible liability is itself an equity instrument, the terms of a liability will not affect its classification. In addition, a disclosure requirement has been introduced where a liability arising from a loan agreement is classified as non-current and the entity's right to postpone liquidation is contingent on the fulfilment of future covenants within twelve months. The changes are effective for annual financial statement periods beginning on or after January 1, 2024 and should be applied retrospectively. Supplier Financing Agreements - Amendments to IAS 7 and IFRS 7 In May 2023, the IASB issued amendments to IAS 7 and IFRS 7 to clarify the characteristics of supplier financing arrangements and require additional disclosures of such arrangements. The disclosure requirements in the amendments are intended to assist users of the financial statements in understanding the effects of financing arrangements with suppliers on an entity's obligations, cash flows, and exposure to liquidity risk. The changes are effective for annual financial statement periods beginning on or after January 1, 2024. Early adoption is permitted but must be disclosed. These amendments are not expected to have significant impact on the Company’s consolidated financial statements. |
Material accounting policies (T
Material accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Material Accounting Policies | |
Schedule of Company’s subsidiaries and associate | Schedule of Company’s subsidiaries and associate Direct and indirect interest Name Main activities Location Investment type December 31, 2023 December 31, 2022 Afya Participações S.A. (“Afya Brazil”) Holding Nova Lima - MG Subsidiary 100 100 Instituto Tocantinense Presidente Antônio Carlos Porto S.A. - (“ITPAC Porto”) Undergraduate degree programs Porto Nacional - TO Subsidiary 100 100 Instituto Tocantinense Presidente Antônio Carlos S.A. - (“ITPAC Araguaína”) Undergraduate degree programs Araguaína - TO Subsidiary 100 100 União Educacional do Vale do Aço S.A. - (“UNIVAÇO”) Medicine undergraduate degree program Ipatinga - MG Subsidiary 100 100 IPTAN - Instituto de Ensino Superior Presidente Tancredo de Almeida Neves S.A. (“IPTAN”) Undergraduate degree programs São João Del Rei - MG Subsidiary 100 100 Instituto de Educação Superior do Vale do Parnaíba S.A. (“IESVAP”) Undergraduate degree programs Parnaíba - PI Subsidiary 80 80 Centro de Ciências em Saúde de Itajubá S.A. (“CCSI”) (vi) Medicine undergraduate degree program Itajubá - MG Subsidiary 75 60 Instituto de Ensino Superior do Piauí S.A. (“IESP”) Undergraduate and graduate degree programs Teresina - PI Subsidiary 100 100 Centro Integrado de Saúde de Teresina (“CIS”) (v) Outpatient care Teresina - PI Subsidiary - 100 FADEP - Faculdade Educacional de Pato Branco Ltda. (“FADEP”) Undergraduate degree programs Pato Branco - PR Subsidiary 100 100 Medcel Editora e Eventos S.A. (“Medcel”) Medical education content São Paulo - SP Subsidiary 100 100 Instituto Educacional Santo Agostinho S.A. (“FASA”) Undergraduate degree programs Montes Claros - MG Subsidiary 100 100 ESMC Educação Superior Ltda. (“ESMC”) (iii) Undergraduate degree programs Montes Claros - MG Subsidiary - 100 Instituto de Pesquisa e Ensino Médico do Estado de Minas Gerais Ltda. (“IPEMED”) Graduate Belo Horizonte - MG Subsidiary 100 100 Instituto Paraense de Educação e Cultura Ltda. (“IPEC”) Medicine degree programs Marabá - PA Subsidiary 100 100 Sociedade Universitária Redentor S.A. (“UniRedentor”) Undergraduate and graduate degree programs Itaperuna - RJ Subsidiary 100 100 Centro de Ensino São Lucas Ltda. (“UniSL”) Undergraduate degree programs Porto Velho - RO Subsidiary 100 100 Peb Med Instituição de Pesquisa Médica e Serviços Ltda. (“PebMed”) Content and clinical tools and online platform Rio de Janeiro - RJ Subsidiary 100 100 Sociedade de Educação, Cultura e Tecnologia da Amazônia S.A. - (“FESAR”) Undergraduate degree programs Redenção - PA Subsidiary 100 100 Centro Superior de Ciências da Saúde S/S Ltda. (“FCMPB”) Medicine degree programs João Pessoa - PB Subsidiary 100 100 iClinic Desenvolvimento de Software Ltda. (“iClinic”) Electronic Medical Record, Clinical Management System Ribeirão Preto - SP Subsidiary 100 100 Medicinae Solutions S.A. (“Medicinae”) Healthcare payments and financial services Rio de Janeiro - RJ Subsidiary 100 100 Medical Harbour Aparelhos Médico Hospitalares e Serviços em Tecnologia Ltda. (“Medical Harbour”) Educational health and medical imaging Florianópolis - SC Subsidiary 100 100 Cliquefarma Drogarias Online Ltda. (“Cliquefarma”) Online platform São Paulo - SP Subsidiary 100 100 Shosp Tecnologia da Informação Ltda. (“Shosp”) Electronic Medical Record, Clinical Management System Rio de Janeiro - RJ Subsidiary 100 100 Sociedade Padrão de Educação Superior Ltda. (“UnifipMoc”) Undergraduate degree programs Montes Claros - MG Subsidiary 100 100 Núcleo de Atenção à Saúde e de Práticas Profissionalizantes (“NASPP) (iv) Outpatient care Montes Claros - MG Subsidiary - 100 Companhia Nilza Cordeiro Herdy de Educação e Cultura (“Unigranrio”) Undergraduate and graduate degree programs Duque de Caxias - RJ Subsidiary 100 100 Policlínica e Centro de Estética Duque de Caxias Ltda. (“Policlínica”) Outpatient care Duque de Caxias - RJ Subsidiary 100 100 Sociedade Educacional de Palhoça S/A Ltda. (“SOCIESP”) (ii) Basic Education Palhoça - SC Subsidiary - 100 Instituto de Ensino Superior de Palhoça S/S Ltda. (“IESP PALHOÇA”) (ii) Undergraduate degree programs Palhoça - SC Subsidiary - 100 RX PRO Soluções de Tecnologia Ltda. (“RX PRO”) Marketing for pharmaceutical industry São Paulo - SP Subsidiary 100 100 RX PRO LOG Transporte e Logística Ltda. (“RX PRO LOG”) Marketing for pharmaceutical industry São Paulo - SP Subsidiary 100 100 BMV Atividades Médicas Ltda. (“Além da Medicina”) Medical education content São Paulo - SP Subsidiary 100 100 Cardiopapers Soluções Digitais Ltda. (“CardioPapers”) Medical education content Recife - PE Subsidiary 100 100 Quasar Telemedicina Desenvolvimento de Sistemas Computacionais Ltda. (“Glic”) Patient physician relationship Barueri - SP Subsidiary 100 100 Sociedade Educacional e Cultural Sergipe DelRey Ltda. (“DelRey”) (i) Undergraduate degree programs Maceió - AL Subsidiary 100 - União Educacional do Planalto Central S.A. (“UEPC”) Undergraduate degree programs Brasília - DF Associate 30 30 (i) See Note 5 for further details of the business combination in 2023. (ii) IESP was merged by Unigranrio and SOCIESP had its operations closed down, both in January 2023. (iii) ESMC was merged with UnifipMoc in February 2023. (iv) NASPP was merged with UnifipMoc in July 2023. (v) CIS was merged with IESP in December 2023. (vi) Acquisition |
Schedule of estimated useful lives of the assets | Schedule of estimated useful lives of the assets Building 25 Machinery and equipment 10 Vehicles 4 Furniture and fixtures 10 IT equipment 5 Library books 10 Leasehold improvements 5 20 |
Schedule of changes in accounting policies and disclosures | Schedule of changes in accounting policies and disclosures Amendments / standards Description Amendments to IAS 1 and IFRS Practice Statement 2 - Making Materiality Judgments The amendments to IAS 1 and IFRS Practice Statement 2 provide guidance and examples to help entities apply materiality judgments to accounting policy disclosures. The amendments aim to help entities provide more useful accounting policy disclosures by replacing the requirement for entities to disclose their "material" accounting policies with a requirement to disclose their "material" accounting policies and adding guidance on how entities apply the concept of materiality when making decisions about accounting policy disclosures. The amendments have had an impact on the Company’s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company’s consolidated financial statements. Amendments to IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - Definition of Accounting Estimates The amendments to IAS 8 clarify the distinction between changes in accounting estimates, changes in accounting policies and correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates. These amendments have no significant impact on the Company’s consolidated financial statements. Amendments to IAS 12 - Income Taxes - International Tax Reform - Pillar Two Model Rules In October 2021, more than 130 countries agreed to implement a minimum tax regime for multinational groups, known as Pillar Two, to reform the international corporate taxation. Pillar Two aims to ensure that multinational groups in scope are liable to a minimum effective corporate tax rate of 15 per cent per country. In December 2021, the OECD released the Pillar Two model rules - accompanied by commentary and guidelines - which are due to be passed into national legislation but adapted by local conditions. In response to the OECD's Pillar Two rules, the amendments to IAS 12 were introduced and include: (i) a mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules; and (ii) disclosure requirements for affected entities to help users of the financial statements better understand an entity's exposure to Pillar Two income taxes arising from this legislation, especially prior to the effective date. The countries where the Company has its tax domicile have not yet enacted any tax legislation in connection with Pillar Two. Therefore, these amendments have no significant impact on the Company’s consolidated financial statements as of December 2023 Amendments to IAS 12 Income Taxes - Deferred Tax related to Assets and Liabilities arising from a Single Transaction The amendments to IAS 12 Income Taxes narrow the scope of the initial recognition exception, so that it no longer applies to transactions that generate equal taxable and deductible temporary differences, such as leases and decommissioning liabilities. These amendments have no significant impact on the Company’s consolidated financial statements. IFRS 17 - Insurance Contracts IFRS 17 is a new accounting standard with scope for insurance contracts, covering recognition and measurement, presentation and disclosure. IFRS 17 replaces IFRS 4 - Insurance Contracts. IFRS 17 applies to all types of insurance contracts (such as life, property and casualty, direct insurance and reinsurance), regardless of the type of entities issuing them, as well as to certain guarantees and financial instruments with discretionary participation characteristics; Some scope exceptions will apply. The overall objective of IFRS 17 is to provide a comprehensive accounting model for insurance contracts that is most useful and consistent for insurers, covering all relevant accounting aspects. The Company does not have any contracts that meet the definition of an insurance contract under IFRS 17. New standards, interpretations and amendments issued but not yet effective The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s consolidated financial statements are presented below. The Company intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. Amendments / standards Description Amendments to IFRS 16: Lease Liability in a Sale and Leaseback In September 2022, the IASB issued amendments to IFRS 16 to specify the requirements that a seller-lessee uses in measuring lease liability arising from a sale and lease back transaction, in order to ensure that the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use that it holds. The amendments are effective for annual financial statements periods beginning on or after January 1, 2024 and shall apply retrospectively to sale and leaseback transactions entered into after the initial application date of IFRS 16. Early adoption is permitted but must be disclosed. Amendments to IAS 1: Classification of Liabilities as Current or Non-Current In January 2020 and October 2022, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or non-current. The amendments clarify: • What is meant by the right to postpone liquidation; • That the right to defer should exist at the end of the financial reporting period; • That the rating is not affected by the likelihood that the entity will exercise its right to defer; • That only if a derivative embedded in a convertible liability is itself an equity instrument, the terms of a liability will not affect its classification. In addition, a disclosure requirement has been introduced where a liability arising from a loan agreement is classified as non-current and the entity's right to postpone liquidation is contingent on the fulfilment of future covenants within twelve months. The changes are effective for annual financial statement periods beginning on or after January 1, 2024 and should be applied retrospectively. Supplier Financing Agreements - Amendments to IAS 7 and IFRS 7 In May 2023, the IASB issued amendments to IAS 7 and IFRS 7 to clarify the characteristics of supplier financing arrangements and require additional disclosures of such arrangements. The disclosure requirements in the amendments are intended to assist users of the financial statements in understanding the effects of financing arrangements with suppliers on an entity's obligations, cash flows, and exposure to liquidity risk. The changes are effective for annual financial statement periods beginning on or after January 1, 2024. Early adoption is permitted but must be disclosed. |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of presents assets and liabilities information for the Company’s operating segments | Schedule of presents assets and liabilities information for the Company’s operating segments Undergrad Continuing Education Digital Services Total reportable segments Adjustments and eliminations Total As of December 31, 2023 Total assets 7,104,154 180,555 310,989 7,595,698 (11,217) 7,584,481 Current assets 1,001,156 86,361 127,206 1,214,723 (11,217) 1,203,506 Non-current assets 6,102,998 94,194 183,783 6,380,975 - 6,380,975 Total liabilities and equity 7,104,154 180,555 310,989 7,595,698 (11,217) 7,584,481 Current liabilities 787,658 87,447 194,679 1,069,784 (11,217) 1,058,567 Non-current liabilities 2,783,855 57,608 41,439 2,882,902 - 2,882,902 Equity 3,532,641 35,500 74,871 3,643,012 - 3,643,012 Other disclosures Investments in associate (i) 51,834 - - 51,834 - 51,834 Capital expenditures (ii) 139,361 15,178 63,889 218,428 - 218,428 (i) Investment in UEPC is included in non-current assets in the statement of financial position. (ii) Capital expenditures consider the acquisitions of property and equipment and intangible assets. Undergrad Continuing Education Digital Services Total reportable segments Adjustments and eliminations Total As of December 31, 2022 Total assets 6,775,829 149,254 275,564 7,200,647 (1,108) 7,199,539 Current assets 1,461,802 61,673 115,290 1,638,765 (1,108) 1,637,657 Non-current assets 5,314,027 87,581 160,274 5,561,882 - 5,561,882 Total liabilities and equity 6,775,829 149,254 275,564 7,200,647 (1,108) 7,199,539 Current liabilities 711,896 57,605 137,296 906,797 (1,108) 905,689 Non-current liabilities 2,938,960 63,990 40,742 3,043,692 - 3,043,692 Equity 3,124,973 27,659 97,526 3,250,158 - 3,250,158 Other disclosures Investments in associate (i) 53,907 - - 53,907 - 53,907 Capital expenditures (ii) 247,634 8,827 61,694 318,155 - 318,155 (i) Investment in UEPC is included in non-current assets in the statement of financial position. (ii) Capital expenditures consider the acquisitions of property and equipment and intangible assets. |
Schedule of statements of income for the Company’s operating segments | Schedule of statements of income for the Company’s operating segments December 31, 2023 Undergrad Continuing Education Digital Services Total reportable segments Elimination (inter-segment transactions) Total External customer 2,511,018 146,827 218,068 2,875,913 - 2,875,913 Inter-segment - - 11,217 11,217 (11,217) - Revenue 2,511,018 146,827 229,285 2,887,130 (11,217) 2,875,913 Cost of services (997,973) (62,792) (60,265) (1,121,030) 11,217 (1,109,813) Gross profit 1,513,045 84,035 169,020 1,766,100 - 1,766,100 Selling, general and administrative expenses (1,014,684) Other income, net 15,645 Operating income 767,061 Finance income 110,642 Finance expenses (457,616) Share of income of associate 9,495 Income before income taxes 429,582 Income taxes expenses (24,166) Net income 405,416 December 31, 2022 Undergrad Continuing Education Digital Services Total reportable segments Elimination (inter-segment transactions) Total External customer 2,037,889 108,806 182,362 2,329,057 - 2,329,057 Inter-segment - - 7,622 7,622 (7,622) - Revenue 2,037,889 108,806 189,984 2,336,679 (7,622) 2,329,057 Cost of services (763,185) (56,554) (47,435) (867,174) 7,622 (859,552) Gross profit 1,274,704 52,252 142,549 1,469,505 - 1,469,505 Selling, general and administrative expenses (798,153) Other expenses, net (7,252) Operating income 664,100 Finance income 102,042 Finance expenses (349,893) Share of income of associate 12,184 Income before income taxes 428,433 Income taxes expenses (35,677) Net income 392,756 December 31, 2021 Undergrad Continuing Education Digital Services Total reportable segments Elimination (inter-segment transactions) Total External customer 1,498,408 72,983 147,980 1,719,371 - 1,719,371 Inter-segment - - 3,978 3,978 (3,978) - Revenue 1,498,408 72,983 151,958 1,723,349 (3,978) 1,719,371 Cost of services (554,995) (50,773) (50,510) (656,278) 3,978 (652,300) Gross profit 943,413 22,210 101,448 1,067,071 - 1,067,071 Selling, general and administrative expenses (622,615) Other expenses, net (3,561) Operating income 440,895 Finance income 64,566 Finance expenses (243,796) Share of income of associate 11,797 Income before income taxes 273,462 Income taxes expenses (31,179) Net income 242,283 |
Business combinations (Tables)
Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of fair values of the identifiable assets acquired and liabilities assumed acquisition in 2023 | Schedule of fair values of the identifiable assets acquired and liabilities assumed acquisition in 2023 Assets DelRey Cash and cash and equivalents 7,804 Trade receivables 33,741 Inventories 139 Recoverable taxes 589 Other assets 8,563 Property and equipment 24,980 Right-of-use assets 65,408 Intangible assets 728,777 870,001 Liabilities Trade payables 12,253 Lease liabilities 65,408 Labor and social obligations 6,252 Taxes and contributions payable 2,282 Advances from customers 38,327 Provision for legal proceedings 152 Other liabilities 4,189 128,863 Total identifiable net assets at fair value 741,138 Goodwill arising on acquisition 75,098 Purchase consideration transferred 816,236 Cash paid 575,000 Consideration to be transferred 234,000 Digital solutions (i) 7,236 Analysis of cash flows on acquisition: Transaction costs of the acquisition (included in cash flows from operating activities) 12,332 Cash paid net of cash acquired with the subsidiary (included in cash flows from investing activities) 567,196 Net of cash flow on acquisition 579,528 (i) The total consideration transferred included the obligation to offer digital solutions, especially from Medcel, Pebmed and Medical Harbour, through access (free-of-charge) to medical students of other medical schools held by the selling shareholders, not subject to this acquisition, from 2023 to 2030. This purchase consideration was measured using assumptions such as numbers of approved medical seats, current digital solutions prices, inflation and present value discount rates. The balances of such consideration are classified as other liabilities on the statement of financial position. |
Schedule of intangible assets acquired | Schedule of intangible assets acquired Intangible assets acquired Valuation technique Licenses With-and-without method The with-and-without method consists of estimating the fair value of an asset by the difference between the value of this asset in two scenarios: a scenario considering the existence of the asset in question and another considering its non-existence. Customer relationships Multi-period excess earnings method The method considers the present value of net cash flows expected to be generated by customer relationships, by excluding any cash flows related to contributory assets. |
Schedule of fair values of the identifiable assets acquired and liabilities assumed as of acquisition in 2022 | Schedule of fair values of the identifiable assets acquired and liabilities assumed as of acquisition in 2022 Assets Além da Medicina CardioPapers Glic Cash and cash and equivalents 298 3,648 151 Trade receivables 1,705 1,350 94 Other assets 266 1 36 Property and equipment 37 43 - Intangible assets 20,299 28,655 15,395 22,605 33,697 15,676 Liabilities Trade payables 705 1,703 1 Labor and social obligations 79 60 - Taxes and contributions payable 1,182 352 91 Advances from customers 6,185 3,893 - Other liabilities - - 574 8,151 6,008 666 Total identifiable net assets at fair value 14,454 27,689 15,010 Goodwill arising on acquisition 12,335 14,324 15,587 Purchase consideration transferred 26,789 42,013 30,597 Cash paid 14,952 34,924 21,602 Contingent consideration 11,074 7,422 8,995 Consideration to be transferred (Price adjustment) 763 (333) - Analysis of cash flows on acquisition: Transaction costs of the acquisition (included in cash flows from operating activities) 227 274 222 Cash paid net of cash acquired with the subsidiary (included in cash flows from investing activities) 14,654 31,276 21,451 Net of cash flow on acquisition 14,881 31,550 21,673 |
Schedule of acquisition of al?m da medicina intangible assets acquired | Schedule of acquisition of além da medicina intangible assets acquired Intangible assets acquired Valuation technique Trademark Relief from royalty This methodology is based on the market remuneration of the use license granted to third parties. The value of the asset is restated by the savings of royalties that the owner would have to own the asset. It is necessary to determine a royalty rate that reflects the appropriate remuneration of the asset. The royalty payments, net of taxes, are discounted to present value. Customer relationships Multi-period excess earnings method The method considers the present value of net cash flows expected to be generated by customer relationships, by excluding any cash flows related to contributory assets. Educational content Replacement cost This methodology is based on the estimated cost of replacing the referred asset with a new one (acquisition or reconstruction), adjusted to reflect the losses in value resulting from the physical deterioration and the functional and economic obsolescence of that asset. Developed technology intangible assets Replacement cost This methodology is based on the estimated cost of replacing the referred asset with a new one (acquisition or reconstruction), adjusted to reflect the losses in value resulting from the physical deterioration and the functional and economic obsolescence of that asset. |
Schedule of acquisition of cardio papers intangible assets acquired | Schedule of acquisition of cardio papers intangible assets acquired Intangible assets acquired Valuation technique Trademark Relief from royalty This methodology is based on the market remuneration of the use license granted to third parties. The value of the asset is restated by the savings of royalties that the owner would have to own the asset. It is necessary to determine a royalty rate that reflects the appropriate remuneration of the asset. The royalty payments, net of taxes, are discounted to present value. Customer relationships Multi-period excess earnings method The method considers the present value of net cash flows expected to be generated by customer relationships, by excluding any cash flows related to contributory assets. Educational content Replacement cost This methodology is based on the estimated cost of replacing the referred asset with a new one (acquisition or reconstruction), adjusted to reflect the losses in value resulting from the physical deterioration and the functional and economic obsolescence of that asset. Copyrights Relief from royalty This methodology is based on the market remuneration of the use license granted to third parties. The value of the asset is restated by the savings of royalties that the owner would have to own the asset. It is necessary to determine a royalty rate that reflects the appropriate remuneration of the asset. The royalty payments, net of taxes, are discounted to present value. |
Schedule of acquisition of Glic intangible assets acquired | Schedule of acquisition of Glic intangible assets acquired Intangible assets acquired Valuation technique Trademark Relief from royalty This methodology is based on the market remuneration of the use license granted to third parties. The value of the asset is restated by the savings of royalties that the owner would have to own the asset. It is necessary to determine a royalty rate that reflects the appropriate remuneration of the asset. The royalty payments, net of taxes, are discounted to present value. Customer relationships Multi-period excess earnings method The method considers the present value of net cash flows expected to be generated by customer relationships, by excluding any cash flows related to contributory assets. Developed technology intangible assets Replacement cost This methodology is based on the estimated cost of replacing the referred asset with a new one (acquisition or reconstruction), adjusted to reflect the losses in value resulting from the physical deterioration and the functional and economic obsolescence of that asset. |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash And Cash Equivalents | |
Schedule of cash and cash equivalents | Schedule of cash and cash equivalents 2023 2022 Cash and bank deposits 11,746 57,509 Cash equivalents 541,284 1,035,573 Cash and cash equivalents 553,030 1,093,082 |
Trade receivables (Tables)
Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of trade accounts receivable | Schedule of trade accounts receivable 2023 2022 Tuition fees 461,066 356,074 Educational content (i) 49,135 50,913 FIES 62,971 62,325 Educational credits (ii) 29,391 27,535 Mobile app subscription (iii) 29,091 27,675 Other 15,667 14,923 647,321 539,445 (-) Allowance for expected credit losses (61,398) (44,046) 585,923 495,399 Current 546,438 452,831 Non-current 39,485 42,568 (i) Related to trade receivables from sales of printed books, e-books and medical courses through digital platform from Medcel, Além da Medicina e Cardiopapers. (ii) Related to the financing programs offered by our subsidiaries to its students that existed prior to the acquisitions. The Company closed such programs to new enrolments and maintained only the agreements that were outstanding as of the acquisition date. (iii) Related to trade receivables from mobile applications subscriptions for digital medical content. |
Schedule of aging of trade accounts receivable | Schedule of aging of trade accounts receivable 2023 2022 Neither past due nor impaired 323,614 261,025 Past due 1 to 30 days 73,563 56,280 31 to 90 days 109,908 90,734 91 to 180 days 85,193 80,522 More than 180 days 55,043 50,884 647,321 539,445 |
Schedule of allowance for doubtful accounts | Schedule of allowance for doubtful accounts 2023 2022 2021 Balances at the beginning of the year (44,046) (45,013) (32,980) Additions (74,552) (42,708) (47,819) Write-offs 57,200 43,675 35,786 Balances at the end of the year (61,398) (44,046) (45,013) |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of balances and transactions with related parties | Schedule of balances and transactions with related parties 2023 2022 Assets Trade receivables (i) 693 917 Other assets (ii) 285 1,975 Total 978 2,892 Current 792 2,892 Non-current 186 - Liabilities Accounts payable to selling shareholders (iii) - 30,653 Total - 30,653 Current - 30,653 Non-current - - 2023 2022 2021 Other income (expenses) UEPC (i) 465 477 752 EMIVE Patrulha 24 Horas Ltda. (iv) (6) - - 459 477 752 Leases RVL Esteves Gestão Imobiliária S.A. 23,434 20,394 15,336 UNIVAÇO Patrimonial Ltda. 3,582 3,409 3,210 IESVAP Patrimonial Ltda. 5,170 4,920 4,560 32,186 28,723 23,106 (i) Refers to sales of educational content from Medcel to UEPC. (ii) Refers to expenses to be reimbursed by Bertelsmann SE& Co. KGaA. (iii) Refers to amounts payable to our shareholder Nicolau Carvalho Esteves regarding the agreement to which Afya Brazil acquired the right to develop ITPAC Garanhuns medical school, a greenfield unit. The last installment was paid in November 2023. (iv) Refers to amounts of expenses related to security services provided by a company of which one of Afya’s main shareholders has significant influence. |
Schedule of key management personnel compensation included in the Company's consolidated statement of income | Schedule of key management personnel compensation included in the Company's consolidated statement of income 2023 2022 2021 Short-term employee benefits 16,979 13,564 11,933 Share-based compensation plans 21,380 13,116 20,251 38,359 26,680 32,184 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Assets | |
Schedule of other assets | Schedule of other assets 2023 2022 Indemnification assets (i) 81,855 145,300 Advances 39,890 30,626 Judicial deposits 14,187 12,693 Prepaid expenses 15,820 18,441 Other FIES receivables 8,674 26,440 Dividends 1,668 - Deferred tax assets 3,233 - Other assets 10,924 10,001 Total 176,251 243,501 Current 58,905 51,745 Non-current 117,346 191,756 (i) Under the terms of the Share Purchase and Sale Agreements (“Agreements”) between the Company and the selling shareholders of subsidiaries acquired, the Company assesses that the selling shareholders are exclusively responsible for any provisions (including labor, tax and civil), which are or will be the subject of a claim by any third party, arising from the act or fact occurred, by action or omission, prior to or on the closing dates of the acquisitions. As disclosed in Note 23(b), Unigranrio has entered into a tax amnesty program in August 2023 for settling a tax proceeding, which resulted in the write-off of R$20,000 of indemnification assets. The remaining variance is due to the expiration of the related contingent liabilities recognized at business combinations, mostly due to R$ 28,500 related to tax matters. |
Investment in associate (Tables
Investment in associate (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of investment | Schedule of investment 2023 2022 Current assets 29,004 32,651 Non-current assets 120,289 122,378 Current liabilities (28,842) (22,840) Non-current liabilities (91,613) (96,442) Equity 28,838 35,747 Company’s share in equity - 30% 8,651 10,724 Goodwill 43,183 43,183 Carrying amount of the investment 51,834 53,907 2023 2022 2021 Revenue 148,042 138,584 127,618 Cost of services (71,282) (57,421) (57,935) Selling, general and administrative expenses (37,205) (34,991) (24,025) Finance results (6,123) (4,103) (4,585) Income before income taxes 33,432 42,069 41,073 Income taxes expenses (1,782) (1,456) (1,748) Net income 31,650 40,613 39,325 Company’s share of income 9,495 12,184 11,797 2023 2022 2021 Opening balance 53,907 48,477 51,410 Dividends received (9,900) (6,754) (11,770) Dividends receivable (included in Other assets) (1,668) - (2,960) Share of income 9,495 12,184 11,797 Closing balance 51,834 53,907 48,477 |
Property and equipment (Tables)
Property and equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of detailed information about property, plant and equipment | Schedule of detailed information about property, plant and equipment Cost Building Machinery and equipment Lands Vehicles Furniture and fixtures IT equipment Library books Leasehold improvements Construction in progress Total As of January 1, 2021 25,919 68,503 13,401 1,215 29,131 28,511 21,624 122,005 3,706 314,015 Additions 1,384 10,268 5,451 111 21,075 19,511 3,392 4,720 59,957 125,869 Business combinations - 12,810 - 346 16,684 10,138 5,142 17,425 3,078 65,623 Write-off (i) 62 (14,213) - (205) 2,862 (4,985) (86) (550) (417) (17,532) Transfer 25,068 3 - - 82 9 - 9,376 (34,538) - As of December 31, 2021 52,433 77,371 18,852 1,467 69,834 53,184 30,072 152,976 31,786 487,975 Additions 527 36,486 - 968 26,047 15,766 645 2,667 85,026 168,132 Business combinations - 45 - - - 35 - - - 80 Write-off (i) 13 (8,159) - (933) 500 (6,992) - - (78) (15,649) Transfer 38,884 (5,353) - (449) (5,669) 6,600 6,645 (9,797) (30,046) 815 As of December 31, 2022 91,857 100,390 18,852 1,053 90,712 68,593 37,362 145,846 86,688 641,353 Additions 96 20,071 - 776 17,914 21,135 985 49 57,409 118,435 Business combination - 7,729 - - 4,384 734 1,329 10,741 63 24,980 Write-off (i) - (9,411) - (475) (1,443) (7,979) (7,788) (286) - (27,382) Transfer 1,279 1,202 - - (708) 327 - 108,098 (110,198) - As of December 31, 2023 93,232 119,981 18,852 1,354 110,859 82,810 31,888 264,448 33,962 757,386 Depreciation As of January 1, 2021 - (19,322) - (171) (8,089) (10,851) (10,817) (4,384) - (53,634) Depreciation (1,673) (7,215) - (196) (5,601) (7,529) (3,416) (4,831) - (30,461) Write-off (i) - 10,146 - 147 1,194 3,458 633 350 - 15,928 As of December 31, 2021 (1,673) (16,391) - (220) (12,496) (14,922) (13,600) (8,865) - (68,167) Depreciation (3,472) (11,166) - (284) (7,725) (10,140) (3,415) (8,849) - (45,051) Write-off (i) - 5,474 - 791 153 7,350 67 117 - 13,952 Transfer (606) 1,453 - 1 9,719 (4,125) (5,940) (502) - - As of December 31, 2022 (5,751) (20,630) - 288 (10,349) (21,837) (22,888) (18,099) - (99,266) Depreciation (4,242) (14,900) - (325) (12,556) (13,286) (3,327) (26,271) - (74,907) Write-off (i) 118 6,684 - 235 2,528 8,254 7,563 90 - 25,472 Transfer 196 3 - - - (3) - (196) - - As of December 31, 2023 (9,679) (28,843) - 198 (20,377) (26,872) (18,652) (44,476) - (148,701) Net book value As of December 31, 2023 83,553 91,138 18,852 1,552 90,482 55,938 13,236 219,972 33,962 608,685 As of December 31, 2022 86,106 79,760 18,852 1,341 80,363 46,756 14,474 127,747 86,688 542,087 (i) Refers to items written-off as result of lack of expectation of future use, in connection with the Company’s physical inventory procedures. |
Intangible assets and goodwill
Intangible assets and goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets And Goodwill | |
Schedule of intangible assets | Schedule of intangible assets Goodwill Licenses with indefinite useful life Trademark Customer relationships Software Education content Developed technology Educational platform Software in progress Other Total Cost As of January 1, 2021 810,656 1,451,270 75,014 283,539 16,221 17,305 355 27,902 2,297 - 2,684,559 Additions (vi) - 108,000 - 684 3,044 - 996 39,686 23,700 - 176,110 Write-off * - - - - 1,020 - - (2,743) (417) - (2,140) Business combinations 373,680 606,136 58,355 147,054 1,474 - 33,046 11,599 3,267 - 1,234,611 As of December 31, 2021 1,184,336 2,165,406 133,369 431,277 21,759 17,305 34,397 76,444 28,847 - 4,093,140 Additions (i) (ii) 39,100 24,408 - 80 1,423 11,231 32,879 14,761 26,141 - 150,023 Write-off * - - (22) - (381) (7) - (9) (28) - (447) Remeasurement (iii) (8,637) - - - - - - - - - (8,637) Transfer - - (2,472) 530 20,466 38,433 17,953 (35,499) (40,226) - (815) Business combinations 42,246 - 51,185 3,929 33 2,627 5,520 - - 1,055 106,595 As of December 31, 2022 1,257,045 2,189,814 182,060 435,816 43,300 69,589 90,749 55,697 14,734 1,055 4,339,859 Additions - - - - 1,314 9,827 37,712 23,164 27,976 - 99,993 Write-off * - - - - (2,235) - - (911) (125) - (3,271) Remeasurement (iv) 2,556 - - - - - - - - - 2,556 Transfer - - - - 28,708 4,785 16 (3,058) (30,451) - - Business combination (v) 75,098 586,263 - 142,451 63 - - - - - 803,875 As of December 31, 2023 1,334,699 2,776,077 182,060 578,267 71,150 84,201 128,477 74,892 12,134 1,055 5,243,012 Amortization As of January 1, 2021 - - (3,502) (85,832) (6,256) (7,692) (32) (8,235) - - (111,549) Amortization - - (5,027) (56,438) (5,844) (8,980) (625) (3,608) - - (80,522) Write-off * - - - - (599) - - 365 - - (234) As of December 31, 2021 - - (8,529) (142,270) (12,699) (16,672) (657) (11,478) - - (192,305) Amortization - - (6,426) (70,093) (4,943) (9,634) (9,436) (5,874) - (79) (106,485) Write-off * - - - - 365 57 - - - - 422 Transfer - - - - (313) - 313 - - - As of December 31, 2022 - - (14,955) (212,363) (17,277) (26,562) (10,093) (17,039) - (79) (298,368) Amortization - - (11,083) (89,584) (8,764) (15,668) (21,504) (4,778) - (105) (151,486) Write-off * - - - - 1,947 - - 911 - - 2,858 Transfer - - - - - - (6) 6 - - - As of December 31, 2023 - - (26,038) (301,947) (24,094) (42,230) (31,603) (20,900) - (184) (446,996) Net book value: As of December 31, 2023 1,334,699 2,776,077 156,022 276,320 47,056 41,971 96,874 53,992 12,134 871 4,796,016 As of December 31, 2022 1,257,045 2,189,814 167,105 223,453 26,023 43,027 80,656 38,658 14,734 976 4,041,491 * Refers to intangible assets written-off as result of lack of expectation of future use. (i) Licenses with indefinite useful life: On March 18, 2022, MEC authorized the increase of 28 seats of Centro de Ensino São Lucas, located in the city of Ji-Parana, State of Rondônia. The earn-out related to the seats approval is R$800 per seat, adjusted by the CDI rate from the closing until the payment date, of which 50% was paid in April 2022 and the remaining amount is payable in cash in two equal installments through 2024. (ii) Goodwill: During the measurement period, the preliminary goodwill for the acquisition of Unigranrio was adjusted by R$39,100 (R$130,073 initial goodwill) as a result of an increase of liabilities regarding tax contingencies and judicial deposits to be reimbursed by the selling shareholders. (iii) Goodwill: During the measurement period, R$8,637 of goodwill arising from the acquisition of RX PRO was reduced, in connection with management’s view of remote likelihood of RX PRO achieving the revenue goals estimated at the terms of the earn-out. (iv) Goodwill: During the measurement period, results of operation such as revenue differed from the foreseen, resulting in a remeasurement of the contingent consideration for the acquisitions of Além da Medicina, CardioPapers and Glic by R$4,773, R$5,082 and (R$7,299), respectively, totaling R$2,556 for the year ended December 31, 2023. (v) Business combination: On January 2, 2023, Afya Brazil acquired DelRey, a post-secondary education institution with governmental authorization to offer on-campus, undergraduate degrees and graduate programs in medicine and health, as well as other courses. See Note 5. (vi) On November 5, 2021, MEC authorized the operation of 120 medical school seats in Garanhuns, for which our shareholder Nicolau Carvalho Esteves entered into an agreement with Afya Brazil pursuant to which he assigned to Afya Brazil the right to develop the ITPAC Garanhuns greenfield unit, a medical school in the city of Garanhuns, State of Pernambuco. Management assessed the aspects of such transaction and concluded that the transaction does not fall under the definition of business, but an acquisition of license with indefinite useful life recognized in intangible assets. Total purchase price was R$108,000 of which 50% was paid in cash on the transaction closing date and 50% in two equal annual installments, adjusted by the CDI rate. |
Schedule of assumptions for impairment test | Schedule of assumptions for impairment test Carrying amount CGU Goodwill Licenses with indefinite useful life CGU 2023 2022 2023 2022 2023 2022 IPTAN 17,446 17,446 57,214 57,214 125,974 126,024 IESVAP 27,956 27,956 81,366 81,366 126,996 129,305 CCSI 4,664 4,664 56,737 56,737 54,550 53,540 IESP 73,838 73,838 179,693 179,693 332,104 322,968 FADEP 49,661 49,661 70,606 70,606 148,032 153,100 FASA 58,903 58,903 144,507 144,507 322,061 314,967 IPEMED 87,647 87,647 - - 183,862 192,079 IPEC - - 108,000 108,000 157,984 148,067 UniRedentor 77,662 77,662 121,477 121,477 234,054 242,600 UniSL 4,420 4,420 273,795 273,795 401,143 398,492 FESAR 71,664 71,664 141,616 141,616 244,412 244,084 FCMPB 110,483 110,483 235,018 235,018 402,140 415,453 ITPAC Garanhuns - - 108,000 108,000 116,162 112,628 Content & Technology for medical education (Pillar 1) * 179,830 169,975 - - 238,921 279,684 Practice Management Tools & Electronic Prescription (Pillar 3) 106,774 106,774 - - 221,171 216,297 Clinical Decision Software (Pillar 2) 87,018 87,018 - - 147,897 153,526 Cliquefarma 6,588 6,588 - - 18,789 20,045 UnifipMoc 87,777 87,777 190,247 190,247 361,383 369,007 Unigranrio 169,173 169,173 421,538 421,538 833,665 854,861 RX PRO 29,809 29,809 - - 34,748 36,675 Glic * 8,288 15,587 - - 23,721 31,022 DelRey 75,098 - 586,263 - 854,313 - 1,334,699 1,257,045 2,776,077 2,189,814 5,584,082 4,814,424 * See above for further details on goodwill changes in 2023. |
Schedule of estimated useful lives of intangible assets | Schedule of estimated useful lives of intangible assets Customer relationships - medicine 6 Customer relationships - other courses 4.5 Software license 5 Education content 3 Trademarks 2 30 Developed technology 5 |
Financial assets and financia_2
Financial assets and financial liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of financial assets | Schedule of financial assets 2023 2022 At amortized cost: Trade receivables 585,923 495,399 585,923 495,399 Current 546,438 452,831 Non-current 39,485 42,568 |
Schedule of financial liabilities | Schedule of financial liabilities 2023 2022 At amortized cost: Trade payables 108,222 71,482 Loans and financing 1,800,775 1,882,901 Lease liabilities 874,569 769,525 Accounts payable to selling shareholders 566,867 528,678 Notes payable - 62,176 3,350,433 3,314,762 Current 678,370 573,030 Non-current 2,672,063 2,741,732 |
Schedule of loans and financing | Schedule of loans and financing Financial institution Currency Interest rate Maturity 2023 2022 Banco Itaú Unibanco S.A Brazilian real CDI + 1.90% p.y. 2025 412,880 518,134 FINEP Brazilian real TJLP p.y. 2027 11,193 8,418 Banco Itaú Unibanco S.A. Brazilian real CDI + 1.75% p.y. 2024 21,405 32,252 Softbank Brazilian real 6.5% p.y. 2026 825,957 824,258 Debentures Brazilian real CDI + 1.80% p.y. 2028 529,340 499,839 1,800,775 1,882,901 Current 179,252 145,202 Non-current 1,621,523 1,737,699 |
Schedule of right-of-use assets and lease liabilities | Schedule of right-of-use assets and lease liabilities Right-of-use assets Lease liabilities As of January 1, 2021 419,074 447,703 Additions 62,689 62,689 Remeasurement 95,962 95,962 Business combinations 139,514 139,514 Depreciation expense (43,237) - Interest expense - 67,212 Payments of lease liabilities - (20,075) Payments of interest - (67,676) Write-off (i) (10,316) (11,244) As of December 31, 2021 663,686 714,085 Current - 24,955 Non-current 663,686 689,130 Right-of-use assets Lease liabilities As of January 1, 2022 663,686 714,085 Additions 42,250 42,250 Remeasurement 58,623 58,623 Depreciation expense (54,684) - Interest expense - 88,571 Payments of lease liabilities - (28,511) Payments of interest - (85,001) Write-off (i) (19,802) (20,492) As of December 31, 2022 690,073 769,525 Current - 32,459 Non-current 690,073 737,066 Right-of-use assets Lease liabilities As of January 1, 2023 690,073 769,525 Additions 7,328 7,328 Remeasurement 70,387 70,387 Business combination 65,408 65,408 Depreciation expense (63,118) - Interest expense - 100,849 Payments of lease liabilities - (31,473) Payments of interest - (103,911) Write-off (i) (2,469) (3,544) As of December 31, 2023 767,609 874,569 Current - 36,898 Non-current 767,609 837,671 (i) Refers to anticipated termination of real estate leasing contracts. |
Schedule of accounts payable to selling shareholders | Schedule of accounts payable to selling shareholders 2023 2022 Acquisition of IPEMED (a) 12,805 22,654 Acquisition of UniRedentor (b) 27,155 72,064 Acquisition of UniSL (c) 15,064 37,301 Acquisition of FCMPB (d) 63,168 111,755 Acquisition of Medical Harbour (e) 3,000 4,053 Acquisition of Shosp (f) 454 2,206 Acquisition of Unigranrio (g) 156,235 216,716 Acquisition of RX PRO (h) - 1,781 Acquisition of Guaranhuns (i) - 30,653 Acquisition of Além da Medicina (j) 18,325 11,996 Acquisition of CardioPapers (k) 14,173 7,979 Acquisition of Glic (l) - 9,520 Acquisition of DelRey (m) 256,488 - 566,867 528,678 Current 353,998 261,711 Non-current 212,869 266,967 |
Schedule of accounts payable | Schedule of accounts payable 2023 2022 2021 Opening balance 528,678 679,826 518,240 Cash flows - Payments and deductions (225,460) (236,760) (180,020) Payment of interest (i) (55,989) (24,428) (12,661) Acquisition of licenses - 24,408 54,000 Interest 85,069 68,064 31,915 Additions - Consideration to be transferred on business combinations 234,000 - 243,816 Consideration to be transferred on business combinations (earn-outs) - 27,921 24,536 Reversals - (10,353) - Remeasurement of earn-outs (ii) 2,556 - - Other (1,987) - - Closing balance 566,867 528,678 679,826 (i) Payment of interest from acquisition of subsidiaries are included in cash flows from investing activities. (ii) During the measurement period, management’s expectation has been reviewed based on performance for revenue goals and the contingent consideration for the acquisition of Além da Medicina, CardioPapers and Glic have been remeasured by R$4,773, R$5,082 and (R$7,299), respectively, totaling R$2,556 as of December 31, 2023. These are measured by the Company at the present value. |
Schedule of carrying amount of notes payable and the movements | Schedule of carrying amount of notes payable and the movements 2023 2022 2021 Opening balance 62,176 72,726 76,181 Payments (i) (49,347) (12,000) (9,800) Payments of interest (i) (15,529) (3,008) (1,268) Monetary indexation 2,700 4,458 7,613 Closing balance - 62,176 72,726 Current - 62,176 14,478 Non-current - - 58,248 (i) The amounts are included in cash flows from investing activities. |
Schedule of fair values of the company's financial instruments | Schedule of fair values of the company's financial instruments 2023 2022 Carrying amount Fair value Carrying amount Fair value Financial assets Trade receivables (non-current) 39,485 39,485 42,568 42,568 39,485 39,485 42,568 42,568 Financial liabilities Loans and financing 1,800,775 1,795,752 1,882,901 1,934,295 Lease liabilities 874,569 874,569 769,525 769,525 Accounts payable to selling shareholders 566,867 566,867 528,678 528,678 Notes payable - - 62,176 62,176 3,242,211 3,237,188 3,243,280 3,294,674 |
Schedule of income before income taxes | Schedule of income before income taxes 2023 Index - % per year Base rate Cash equivalents 518,111 100.8% of CDI 60,846 Loans and financing (529,340) CDI + 1.8% (71,196) Loans and financing (412,880) CDI + 1.9% (55,945) Loans and financing (11,193) TJLP (733) Loans and financing (21,405) CDI + 1.75% (2,868) Accounts payable to selling shareholders (274,428) CDI (31,971) Accounts payable to selling shareholders (256,488) SELIC (29,881) Net exposure (131,748) Increase in basis points +75 +150 Effect on profit before tax (7,407) (14,814) |
Schedule of sensitivity foreign currency | Schedule of sensitivity foreign currency Exposure +10% -10% Cash equivalents 23,173 2,317 (2,317) |
Schedule of maturity profile of financial liabilities | Schedule of maturity profile of financial liabilities As of December 31, 2023 Less than 1 year 1 to 3 years 3 to 5 years More than 5 years Total Trade payables 108,222 - - - 108,222 Loans and financing 298,981 1,383,255 568,326 - 2,250,562 Lease liabilities 137,735 268,724 255,456 1,261,213 1,923,128 Accounts payable to selling shareholders 387,693 231,478 - - 619,171 Advances from customers 153,485 - - - 153,485 1,086,116 1,883,457 823,782 1,261,213 5,054,568 As of December 31, 2022 Less than 1 year 1 to 3 years 3 to 5 years More than 5 years Total Trade payables 71,482 - - - 71,482 Loans and financing 287,741 788,190 1,237,599 - 2,313,530 Lease liabilities 117,506 234,688 219,127 1,139,771 1,711,092 Accounts payable to selling shareholders 282,481 339,281 - - 621,762 Notes payable 62,176 - - - 62,176 Advances from customers 133,050 - - - 133,050 954,436 1,362,159 1,456,726 1,139,771 4,913,092 |
Schedule of changes in liabilities arising from financing activities | Schedule of changes in liabilities arising from financing activities January 1, 2023 Payments of principal Payments of interest Additions Interest Business combination Other December 31, 2023 Loans and financing (i) 1,882,901 (112,630) (175,889) 5,288 197,678 - 3,427 1,800,775 Lease liabilities (i) 769,525 (31,473) (103,911) 77,715 100,849 65,408 (3,544) 874,569 Dividends payable - (18,750) - 18,750 - - - - 2,652,426 (162,853) (279,800) 101,753 298,527 65,408 (117) 2,675,344 January 1, 2022 Payments of principal Payments of interest Additions Interest Business combinations Other December 31, 2022 Loans and financing (i) 1,374,876 (1,791) (116,587) 496,885 127,559 - 1,959 1,882,901 Lease liabilities (i) 714,085 (28,511) (85,001) 100,873 88,571 - (20,492) 769,525 Dividends payable - (19,736) - 19,736 - - - - 2,088,961 (50,038) (201,588) 617,494 216,130 - (18,533) 2,652,426 January 1, 2021 Payments of principal Payments of interest Additions (ii) Interest Business combinations Other December 31, 2021 Loans and financing (i) 617,485 (107,766) (50,310) 809,539 68,909 36,591 428 1,374,876 Lease liabilities (i) 447,703 (20,075) (67,676) 158,651 67,212 139,514 (11,244) 714,085 Dividends payable - (18,648) - 18,648 - - - - 1,065,188 (146,489) (117,986) 986,838 136,121 176,105 (10,816) 2,088,961 (i) Payment of interest of loan and financing and lease liabilities are included in cash flows from financing activities. (ii) The additions of loans and financing in 2021 include proceeds from the SoftBank transaction of R$822,569, net of the transaction costs of R$13,030. |
Fair value measurement (Tables)
Fair value measurement (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurement | |
Schedule of fair value measurement | Schedule of fair value measurement Fair value measurement Total Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2023 Assets for which fair values are disclosed Trade receivables (non-current) 39,485 - 39,485 - Liabilities for which fair values are disclosed Loans and financing (1,795,752) - (1,795,752) - Lease liabilities (874,569) - (874,569) - Accounts payable to selling shareholders (566,867) - (566,867) - December 31, 2022 Assets for which fair values are disclosed Trade receivables (non-current) 42,568 - 42,568 - Liabilities for which fair values are disclosed Loans and financing (1,934,295) - (1,934,295) - Lease liabilities (769,525) - (769,525) - Accounts payable to selling shareholders (528,678) - (528,678) - Notes payable (62,176) - (62,176) - |
Labor and social obligations (T
Labor and social obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
IfrsStatementLineItems [Line Items] | |
Schedule of model used to determine the fair value of the stock options | Schedule of model used to determine the fair value of the stock options Modified plan Original plan Strike price at the measurement date R$ 83 R$ 91 140 Dividend yield (%) 0.0 0.0 Expected volatility (%) 48 59 48 59 Risk-free interest rate (%) 13 15 13 15 Expected life of stock options (years) 1 4 1 4 Share price at the measurement date R$ 48 R$ 48 Valuation model Binomial Binomial Weighted average fair value at the measurement date R$ 53.06 R$ 49.22 |
Schedule of model used to determine incremental fair value of the stock options | Schedule of model used to determine incremental fair value of the stock options Modified plan Original plan Strike price index IPCA CDI Strike price at the measurement date R$ 59 104 R$ 59 104 Dividend yield (%) 0.0 0.0 Expected volatility (%) 45 54 45 54 Risk-free interest rate (%) 10 12 10 12 Expected life of stock options (years) 0 - 5 0 - 5 Share price at the measurement date R$ 75 R$ 75 Valuation model Binomial Binomial Weighted average fair value at the measurement date R$ 28.10 R$ 26.00 |
Schedule of additional stock options | Schedule of additional stock options February 2023 April 2023 August 2023 October 2023 December 2023 Strike price at the measurement date R$ 56 R$ 57 R$ 59 R$ 59 R$ 60 Dividend yield (%) 0.0 0.0 0.0 0.0 0.0 Expected volatility (%) 46 56 48 55 47 56 44 56 34 56 Risk-free interest rate (%) 13 11 13 10 12 11 12 10 11 Expected life of stock options (years) 1 5 1 5 1 5 1 5 1 5 Share price at the measurement date R$ 70.69 R$ 62.51 R$ 76.45 R$ 79.12 R$ 100.97 Valuation model Binomial Binomial Binomial Binomial Binomial Weighted average fair value at the measurement date R$ 29.54 R$ 32.04 R$ 37.04 R$ 38.67 R$ 54.25 |
Schedule of share-based compensation plan | Schedule of share-based compensation plan Weighted average strike price (in Brazilian Reais) Number of stock options 2023 2022 2021 Outstanding at January 1 79.47 3,729,287 3,086,728 2,510,983 Granted 60.83 467,000 1,234,919 1,170,000 Exercised 59.67 (164,214) - (442,669) Stock options exchanged to RSUs - (1,751,599) - - Forfeited 110.95 (333,111) (365,749) (60,000) Expired 94.17 (251,299) (226,611) (91,586) Outstanding at December 31 64.33 1,696,064 3,729,287 3,086,728 Exercisable 86.23 242,235 1,133,774 542,061 |
Schedule of stock option | Schedule of stock option 2023 2022 Outstanding at January 1 447,224 - Granted 317,090 447,224 Stock options exchanged to RSUs 215,797 - Exercised (99,576) - Forfeited (26,104) - Outstanding at December 31 854,431 447,224 |
R S Us [Member] | |
IfrsStatementLineItems [Line Items] | |
Schedule of model used to determine the fair value of the stock options | Schedule of model used to determine the fair value of the stock options Modified plan Strike price at the measurement date R$ 95 160 Dividend yield (%) 0.0 Expected volatility (%) 45 48 Risk-free interest rate (%) 10 12 Expected life of stock options (years) 1 5 Share price at the measurement date R$ 75 Valuation model Binomial Weighted average conversion rate (RSUs/Stock options) 0.12 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Equity Abstract | |
Schedule illustrates the number and movements in treasury shares | Schedule illustrates the number and movements in treasury shares Number of treasury shares Average price (in Brazilian Reais) Outstanding at January 1, 2021 - - Repurchased 2,142,051 119.99 Transferred from exercise of stock options (442,669) 124.26 Transferred from shares contribution (44,455) 111.94 Outstanding at December 31, 2021 1,654,927 92.23 Repurchased 2,131,358 71.46 Outstanding at December 31, 2022 3,786,285 80.54 Repurchased 216,339 57.17 Delivered under the share-based compensation plan (229,146) 79.28 Outstanding at December 31, 2023 3,773,478 79.28 |
Earnings per share (EPS) (Table
Earnings per share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of earnings per share | Schedule of earnings per share 2023 2022 2021 Numerator Net income attributable to equity holders of the parent 386,324 373,569 223,326 Denominator Weighted average number of outstanding shares 89,830,351 90,335,037 93,291,480 Effects of dilution from stock options and restricted share units 706,492 329,085 811,818 Weighted average number of outstanding shares adjusted for the effect of dilution 90,536,843 90,664,122 94,103,298 Basic earnings per share (R$) 4.30 4.14 2.39 Diluted earnings per share (R$) 4.27 4.12 2.37 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of net sales revenue | Schedule of net sales revenue 2023 2022 2021 Tuition fees 3,505,250 2,827,567 2,124,589 Other 263,937 213,040 167,441 Deductions Discount and scholarships (240,314) (241,404) (229,254) Early payment discounts (195,054) (92,234) (49,879) Returns (27,743) (45,402) (42,373) Taxes (142,825) (107,004) (74,232) PROUNI (287,338) (225,506) (176,921) Revenue from contracts with customers 2,875,913 2,329,057 1,719,371 Timing of revenue recognition of revenue from contracts with customers: Tuition, digital content and app subscription fees - Transferred over time 2,821,251 2,273,578 1,640,889 Other - Transferred at a point in time 54,662 55,479 78,482 |
Schedule of revenue by segment | Schedule of revenue by segment Revenue by segment Undergrad Continuing Education Digital Services Elimination (inter-segment transactions) 2023 Types of services or goods 2,511,018 146,827 229,285 (11,217) 2,875,913 Tuition fees 2,494,121 146,477 - - 2,640,598 Other 16,897 350 229,285 (11,217) 235,315 Timing of revenue recognition 2,511,018 146,827 229,285 (11,217) 2,875,913 Transferred over time 2,494,121 146,827 191,520 (11,217) 2,821,251 Transferred at a point in time 16,897 - 37,765 - 54,662 Revenue by segment Undergrad Continuing Education Digital Services Elimination (inter-segment transactions) 2022 Types of services or goods 2,037,889 108,806 189,984 (7,622) 2,329,057 Tuition fees 2,023,128 108,648 - - 2,131,776 Other 14,761 158 189,984 (7,622) 197,281 Timing of revenue recognition 2,037,889 108,806 189,984 (7,622) 2,329,057 Transferred over time 2,024,373 108,806 145,939 (5,540) 2,273,578 Transferred at a point in time 13,516 - 44,045 (2,082) 55,479 Revenue by segment Undergrad Continuing Education Digital Services Elimination (inter-segment transactions) 2021 Types of services or goods 1,498,408 72,983 151,958 (3,978) 1,719,371 Tuition fees 1,486,111 72,983 - - 1,559,094 Other 12,297 - 151,958 (3,978) 160,277 Timing of revenue recognition 1,498,408 72,983 151,958 (3,978) 1,719,371 Transferred over time 1,486,111 72,983 81,795 - 1,640,889 Transferred at a point in time 12,297 - 70,163 (3,978) 78,482 |
Expenses and costs by nature (T
Expenses and costs by nature (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of expenses by nature | Schedule of expenses by nature 2023 2022 2021 Cost of services (1,109,813) (859,552) (652,300) Selling, general and administrative expenses (1,014,684) (798,153) (622,615) Total (2,124,497) (1,657,705) (1,274,915) Payroll (1,085,144) (880,664) (677,564) Hospital and medical agreements (86,151) (66,065) (37,449) Depreciation and amortization (289,511) (206,220) (154,220) Lease expenses (10,871) (12,153) (11,229) Utilities (20,403) (17,682) (10,643) Maintenance (105,919) (76,475) (47,141) Share-based compensation (31,535) (31,274) (43,377) Tax expenses (14,447) (10,518) (7,997) Pedagogical services (64,081) (48,084) (47,881) Sales and marketing (74,140) (48,217) (39,506) Allowance for expected credit losses (74,552) (42,708) (47,819) Travel expenses (16,098) (14,003) (7,542) Consulting fees (62,630) (35,326) (38,818) Other (189,015) (168,316) (103,729) Total (2,124,497) (1,657,705) (1,274,915) |
Finance result (Tables)
Finance result (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Notes and other explanatory information [abstract] | |
Schedule of finance result | Schedule of finance result 2023 2022 2021 Income from financial investments 73,672 67,810 35,773 Interest received 33,450 27,197 23,040 Other 3,520 7,035 5,753 Finance income 110,642 102,042 64,566 Interest expense (285,447) (200,081) (108,437) Interest expense on lease liabilities (100,849) (88,571) (67,212) Financial discounts granted (30,891) (24,092) (23,193) Bank fees (7,163) (8,623) (7,878) Foreign exchange loss, net (681) (852) (17,973) IOF taxes (taxes on financial transactions) (1,947) (178) (3,306) Other (30,638) (27,496) (15,797) Finance expenses (457,616) (349,893) (243,796) Finance result (346,974) (247,851) (179,230) |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Taxes | |
Schedule of reconciliation of income tax expense | Schedule of reconciliation of income tax expense 2023 2022 2021 Income before income taxes 429,582 428,433 273,462 Combined statutory income taxes rate - % 34% 34% 34% Income taxes at statutory rates (146,058) (145,667) (92,977) Reconciliation adjustments: Tax effect on loss from entities not subject to taxation (32,274) (32,859) (37,794) PROUNI - Fiscal Incentive (i) 309,952 270,062 194,830 Unrecognized deferred tax assets (154,062) (117,377) (86,233) Recognized deferred tax assets 3,233 - - Presumed profit income tax regime effect (ii) (8,787) (1,549) (7,066) Permanent adjustments (4,687) (12,226) (6,232) Other 8,517 3,939 4,293 Income taxes expense - current (24,166) (35,677) (31,179) Effective rate 5.62% 8.33% 11.40% (i) The Company adhered to PROUNI, established by Law 11,096 / 2005, which is a federal program that exempts companies of paying income taxes and social contribution upon compliance with certain requirements required by said Law. (ii) Brazilian tax law establishes that companies that generate gross revenues of up to R$78,000 in the prior fiscal year may calculate income taxes as a percentage of gross revenue, using the presumed profit tax regime. The effect of the presumed profit of certain subsidiaries represents the difference between the taxation based on this method and the amount that would be due based on the statutory rate applied to the taxable profit of the subsidiaries. |
Insurance contracts and conti_2
Insurance contracts and contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance Contracts And Contingencies | |
Schedule of legal proceedings and contingencies | Schedule of legal proceedings and contingencies Labor Civil Taxes Total Balances as of December 31, 2020 4,519 13,280 35,340 53,139 Business combinations 16,597 6,017 57,638 80,252 Additions 5,418 5,101 14,225 24,744 Reversals (1,044) (1,470) (7,334) (9,848) Balances as of December 31, 2021 25,490 22,928 99,869 148,287 Additions 2,300 7,911 63,698 73,909 Reversals (5,306) (6,175) (14,861) (26,342) Balances as of December 31, 2022 22,484 24,664 148,706 195,854 Business combination 64 88 - 152 Additions 3,424 5,875 9,037 18,336 Reversals (i) (3,251) (9,327) (97,403) (109,981) Balances as of December 31, 2023 22,721 21,300 60,340 104,361 (i) On August 10, 2023, Unigranrio entered into a tax amnesty program on interest and penalties to settle a tax proceeding with respect to ISS (tax on services) with the municipality of Rio de Janeiro, which result in a payment of R$14,819. The selling shareholders of Unigranrio agreed to pay R$5,438 regarding this matter, which was deducted from the accounts payable to selling shareholders. The Company had a provision of R$53,302 and an indemnification asset from the selling shareholders of R$20,000 (in light of the indemnification clauses as defined at acquisition of Unigranrio), in respect to such tax proceedings. The difference between the provision, indemnification asset and the actual paid amount was recorded as Other income (expenses), net on the consolidated statements of income and comprehensive income. |
Schedule of social security proceedings assessed by Management | Schedule of social security proceedings assessed by Management 2023 2022 Labor 32,683 13,914 Civil 51,319 59,603 Taxes and social security 5,669 4,931 Total 89,671 78,448 |
Non-cash transactions (Tables)
Non-cash transactions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Non-cash Transactions | |
Schedule of non-cash transactions | Schedule of non-cash transactions 2023 2022 2021 Issuance of shares for acquisition of iClinic - - 71,500 Issuance of shares for acquisition of Cliquefarma - - 3,000 Issuance of shares for acquisition of RX PRO - - 5,112 Remeasurement of earn-out of Além da Medicina, CardioPapers and Glic 2,556 - - Provision for legal proceedings with corresponding indemnification asset 20,000 48,333 4,232 Additions and remeasurements of right-of-use assets and lease liabilities 77,715 100,873 158,651 |
Corporate information (Details
Corporate information (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
May 05, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | ||||
Aggregate consideration | R$ 99399 | R$ 1234460 | ||
Subsidiaries [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Aggregate consideration | R$ 67381 | R$ 842197 | ||
Bertelsmann [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Own percentage | 57.50% | 33% | ||
Voting interest | 31% | 18% | ||
Bertelsmann [Member] | Ordinary shares [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Acquired shares | 6,000,000 |
Material accounting policies (D
Material accounting policies (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Afya Participacoes S A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Holding | |
Location | Nova Lima - MG | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Instituto Tocantinense Presidente Antonio Carlos Porto S. A. I T P A C Porto [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate degree programs | |
Location | Porto Nacional - TO | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Instituto Tocantinense Presidente Antonio Carlos S. A. I T P A C Araguaina [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate degree programs | |
Location | Araguaína - TO | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Uniao Educacional Do Vale Fo Aco S. A. U N I V A C O [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Medicine undergraduate degree program | |
Location | Ipatinga - MG | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
I P T A N Instituto De Ensino Superior Presidente Tancredo De Almeida Neves S. A. I P T A N [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate degree programs | |
Location | São João Del Rei - MG | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Instituto De Educacao Superior Do Vale Do Parnaiba S. A. I E S V A P [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate degree programs | |
Location | Parnaíba - PI | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 80% | 80% |
Centro De Ciencias Em Saude De Itajuba S. A. C C S I [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Medicine undergraduate degree program | |
Location | Itajubá - MG | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 75% | 60% |
Instituto De Ensino Superior Do Piaui S. A. I E S P [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate and graduate degree programs | |
Location | Teresina - PI | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Centro Integrado De Saude De Teresina C I S [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Outpatient care | |
Location | Teresina - PI | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | |
F A D E P Faculdade Educacional De Pato Branco Ltda F A D E P [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate degree programs | |
Location | Pato Branco - PR | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Medcel Editora Eventos S. A. Medcel [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Medical education content | |
Location | São Paulo - SP | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Instituto Educacional Santo Agostinho S. A. F A S A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate degree programs | |
Location | Montes Claros - MG | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
E S M C Educacao Superior Ltda E S M C [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate degree programs | |
Location | Montes Claros - MG | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | |
Instituto De Pesquisa E Ensino Medico Fo Estado De Minas Gerais Ltda I P E M E D [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Graduate | |
Location | Belo Horizonte - MG | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Instituto Paraense De Educacao E Cultura Ltda. I P E C [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Medicine degree programs | |
Location | Marabá - PA | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Sociedade Universitaria Redentor S. A. Uni Redentor [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate and graduate degree programs | |
Location | Itaperuna - RJ | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Centro De Ensino Sao Lucas Ltda. Uni S L [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate degree programs | |
Location | Porto Velho - RO | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Peb Med Instituicao De Pesquisa Medica E Servicos Ltda. Peb Med [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Content and clinical tools and online platform | |
Location | Rio de Janeiro - RJ | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Sociedade De Educacao Cultura E Tecnologia Da Amazonia S. A. F E S A R [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate degree programs | |
Location | Redenção - PA | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Centro Superior De Ciencias Da Saude S S Ltda. F C M P B [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Medicine degree programs | |
Location | João Pessoa - PB | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
I Clinic Desenvolvimento De Software Ltda.i Clinic [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Electronic Medical Record, Clinical Management System | |
Location | Ribeirão Preto - SP | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Medicinae Solutions S. A. Medicinae [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Healthcare payments and financial services | |
Location | Rio de Janeiro - RJ | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Medical Harbour Aparelhos Medico Hospitalares E Servicos Em Tecnologia Ltda. Medical Harbour [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Educational health and medical imaging | |
Location | Florianópolis - SC | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Cliquefarma Drogarias Online Ltda. Cliquefarma [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Online platform | |
Location | São Paulo - SP | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Shosp Tecnologia Da Informacao Ltda. Shosp [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Electronic Medical Record, Clinical Management System | |
Location | Rio de Janeiro - RJ | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Sociedade Padrao De Educacao Superior Ltda. Unifip Moc [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate degree programs | |
Location | Montes Claros - MG | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Nucleo De Atencao A Saude E De Praticas Profissionalizantes N A S P P [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Outpatient care | |
Location | Montes Claros - MG | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | |
Companhia Nilza Cordeiro Herdy De Educacao E Cultura Unigranrio [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate and graduate degree programs | |
Location | Duque de Caxias - RJ | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Policlinica E Centro De Estetica Duque De Caxias Ltda. Policlinica [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Outpatient care | |
Location | Duque de Caxias - RJ | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Sociedade Educacional De Palhoca S A Ltda. [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Basic Education | |
Location | Palhoça - SC | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | |
Instituto De Ensino Superior De Palhoca S S Ltda. I E S P P A L H O C A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate degree programs | |
Location | Palhoça - SC | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | |
R X P R O Solucoes De Tecnologia Ltda. R X P R O [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Marketing for pharmaceutical industry | |
Location | São Paulo - SP | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
R X P R O L O G Transporte E Logistica Ltda. R X P R O L O G [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Marketing for pharmaceutical industry | |
Location | São Paulo - SP | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
B M V Atividades Medicas Ltda. Alem Da Medicina [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Medical education content | |
Location | São Paulo - SP | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Cardiopapers Solucoes Digitais Ltda. Cardio Papers [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Medical education content | |
Location | Recife - PE | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Quasar Telemedicina Desenvolvimento De Sistemas Computacionais Ltda. Glic [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Patient physician relationship | |
Location | Barueri - SP | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | 100% |
Sociedade Educacional E Cultural Sergipe Del Rey Ltda. Del Rey [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate degree programs | |
Location | Maceió - AL | |
Investment type | Subsidiary | |
Direct and indirect interest of subsidiary | 100% | |
Uniao Educacional Do Planalto Central S. A. U E P C [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Principal activities | Undergraduate degree programs | |
Location | Brasília - DF | |
Investment type | Associate | |
Direct and indirect interest of subsidiary | 30% | 30% |
Material accounting policies _2
Material accounting policies (Details 1) | 12 Months Ended |
Dec. 31, 2023 | |
Buildings [member] | |
IfrsStatementLineItems [Line Items] | |
Useful lives of assets | 25 years |
Machinery And Equipments [Member] | |
IfrsStatementLineItems [Line Items] | |
Useful lives of assets | 10 years |
Vehicles [member] | |
IfrsStatementLineItems [Line Items] | |
Useful lives of assets | 4 years |
Fixtures and fittings [member] | |
IfrsStatementLineItems [Line Items] | |
Useful lives of assets | 10 years |
It Equipment [Member] | |
IfrsStatementLineItems [Line Items] | |
Useful lives of assets | 5 years |
Library Books [Member] | |
IfrsStatementLineItems [Line Items] | |
Useful lives of assets | 10 years |
Leasehold improvements [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Useful lives of assets | 5 years |
Leasehold improvements [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Useful lives of assets | 20 years |
Material accounting policies _3
Material accounting policies (Details 2) | 12 Months Ended |
Dec. 31, 2023 | |
Amendments To I A S 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
Standard | Amendments to IAS 1 and IFRS Practice Statement 2 - Making Materiality Judgments |
Description | The amendments to IAS 1 and IFRS Practice Statement 2 provide guidance and examples to help entities apply materiality judgments to accounting policy disclosures. The amendments aim to help entities provide more useful accounting policy disclosures by replacing the requirement for entities to disclose their "material" accounting policies with a requirement to disclose their "material" accounting policies and adding guidance on how entities apply the concept of materiality when making decisions about accounting policy disclosures. |
Amendments To I A S 8 [Member] | |
IfrsStatementLineItems [Line Items] | |
Standard | Amendments to IAS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - Definition of Accounting Estimates |
Description | The amendments to IAS 8 clarify the distinction between changes in accounting estimates, changes in accounting policies and correction of errors. They also clarify how entities use measurement techniques and inputs to develop accounting estimates. |
Amendments To I A S 12 [Member] | |
IfrsStatementLineItems [Line Items] | |
Standard | Amendments to IAS 12 - Income Taxes - International Tax Reform - Pillar Two Model Rules |
Description | In October 2021, more than 130 countries agreed to implement a minimum tax regime for multinational groups, known as Pillar Two, to reform the international corporate taxation. Pillar Two aims to ensure that multinational groups in scope are liable to a minimum effective corporate tax rate of 15 per cent per country. |
Amendments To I A S 12 One [Member] | |
IfrsStatementLineItems [Line Items] | |
Standard | Amendments to IAS 12 Income Taxes - Deferred Tax related to Assets and Liabilities arising from a Single Transaction |
Description | The amendments to IAS 12 Income Taxes narrow the scope of the initial recognition exception, so that it no longer applies to transactions that generate equal taxable and deductible temporary differences, such as leases and decommissioning liabilities. |
IFRS 17 [member] | |
IfrsStatementLineItems [Line Items] | |
Standard | IFRS 17 - Insurance Contracts |
Description | IFRS 17 is a new accounting standard with scope for insurance contracts, covering recognition and measurement, presentation and disclosure. IFRS 17 replaces IFRS 4 - Insurance Contracts. IFRS 17 applies to all types of insurance contracts (such as life, property and casualty, direct insurance and reinsurance), regardless of the type of entities issuing them, as well as to certain guarantees and financial instruments with discretionary participation characteristics; Some scope exceptions will apply. |
Amendments To I F R S 16 [Member] | |
IfrsStatementLineItems [Line Items] | |
Standard | Amendments to IFRS 16: Lease Liability in a Sale and Leaseback |
Description | In September 2022, the IASB issued amendments to IFRS 16 to specify the requirements that a seller-lessee uses in measuring lease liability arising from a sale and lease back transaction, in order to ensure that the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use that it holds. |
Amendments To I A S 1 One [Member] | |
IfrsStatementLineItems [Line Items] | |
Standard | Amendments to IAS 1: Classification of Liabilities as Current or Non-Current |
Description | In January 2020 and October 2022, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements for classifying liabilities as current or non-current. The amendments clarify: |
Amendments To I A S 7 And I F R S 7 [Member] | |
IfrsStatementLineItems [Line Items] | |
Standard | Supplier Financing Agreements - Amendments to IAS 7 and IFRS 7 |
Description | In May 2023, the IASB issued amendments to IAS 7 and IFRS 7 to clarify the characteristics of supplier financing arrangements and require additional disclosures of such arrangements. The disclosure requirements in the amendments are intended to assist users of the financial statements in understanding the effects of financing arrangements with suppliers on an entity's obligations, cash flows, and exposure to liquidity risk. |
Material accounting policies _4
Material accounting policies (Details Narrative) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Tax rate | 34% | 34% | 34% |
Program Of Social Integration [Member] | Teaching Activities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Tax rate | 0.65% | ||
Program Of Social Integration [Member] | Non Teaching Activities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Tax rate | 1.65% | ||
Contribution For The Financing Of Social Security [Member] | Teaching Activities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Tax rate | 3% | ||
Contribution For The Financing Of Social Security [Member] | Non Teaching Activities [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Tax rate | 7.60% |
Segment information (Details)
Segment information (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||||
Total assets | R$ 7584481 | R$ 7199539 | ||
Current assets | 1,203,506 | 1,637,657 | ||
Non-current assets | 6,380,975 | 5,561,882 | ||
Total liabilities and equity | 7,584,481 | 7,199,539 | ||
Current liabilities | 1,058,567 | 905,689 | ||
Non-current liabilities | 2,882,902 | 3,043,692 | ||
Equity | 3,643,012 | 3,250,158 | R$ 3000018 | R$ 2833780 |
Operating segments [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total assets | 7,584,481 | 7,199,539 | ||
Current assets | 1,203,506 | 1,637,657 | ||
Non-current assets | 6,380,975 | 5,561,882 | ||
Total liabilities and equity | 7,584,481 | 7,199,539 | ||
Current liabilities | 1,058,567 | 905,689 | ||
Non-current liabilities | 2,882,902 | 3,043,692 | ||
Equity | 3,643,012 | 3,250,158 | ||
Investments in associate | 51,834 | 53,907 | ||
Capital expenditures | 218,428 | 318,155 | ||
Operating segments [member] | Undergrad [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total assets | 7,104,154 | 6,775,829 | ||
Current assets | 1,001,156 | 1,461,802 | ||
Non-current assets | 6,102,998 | 5,314,027 | ||
Total liabilities and equity | 7,104,154 | 6,775,829 | ||
Current liabilities | 787,658 | 711,896 | ||
Non-current liabilities | 2,783,855 | 2,938,960 | ||
Equity | 3,532,641 | 3,124,973 | ||
Investments in associate | 51,834 | 53,907 | ||
Capital expenditures | 139,361 | 247,634 | ||
Operating segments [member] | Continuing Education [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total assets | 180,555 | 149,254 | ||
Current assets | 86,361 | 61,673 | ||
Non-current assets | 94,194 | 87,581 | ||
Total liabilities and equity | 180,555 | 149,254 | ||
Current liabilities | 87,447 | 57,605 | ||
Non-current liabilities | 57,608 | 63,990 | ||
Equity | 35,500 | 27,659 | ||
Investments in associate | ||||
Capital expenditures | 15,178 | 8,827 | ||
Operating segments [member] | Digital Services [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total assets | 310,989 | 275,564 | ||
Current assets | 127,206 | 115,290 | ||
Non-current assets | 183,783 | 160,274 | ||
Total liabilities and equity | 310,989 | 275,564 | ||
Current liabilities | 194,679 | 137,296 | ||
Non-current liabilities | 41,439 | 40,742 | ||
Equity | 74,871 | 97,526 | ||
Investments in associate | ||||
Capital expenditures | 63,889 | 61,694 | ||
Operating segments [member] | Total Reportable Segments [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total assets | 7,595,698 | 7,200,647 | ||
Current assets | 1,214,723 | 1,638,765 | ||
Non-current assets | 6,380,975 | 5,561,882 | ||
Total liabilities and equity | 7,595,698 | 7,200,647 | ||
Current liabilities | 1,069,784 | 906,797 | ||
Non-current liabilities | 2,882,902 | 3,043,692 | ||
Equity | 3,643,012 | 3,250,158 | ||
Investments in associate | 51,834 | 53,907 | ||
Capital expenditures | 218,428 | 318,155 | ||
Operating segments [member] | Adjustments And Eliminations [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Total assets | (11,217) | (1,108) | ||
Current assets | (11,217) | (1,108) | ||
Non-current assets | ||||
Total liabilities and equity | (11,217) | (1,108) | ||
Current liabilities | (11,217) | (1,108) | ||
Non-current liabilities | ||||
Equity | ||||
Investments in associate | ||||
Capital expenditures |
Segment information (Details 1)
Segment information (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Net revenue | R$ 2875913 | R$ 2329057 | R$ 1719371 |
Gross profit | 1,766,100 | 1,469,505 | 1,067,071 |
Operating income | 767,061 | 664,100 | 440,895 |
Finance income | 110,642 | 102,042 | 64,566 |
Income before income taxes | 429,582 | 428,433 | 273,462 |
Income taxes expenses | 24,166 | 35,677 | 31,179 |
Net income | 405,416 | 392,756 | 242,283 |
Operating segments [member] | |||
IfrsStatementLineItems [Line Items] | |||
External customer | 2,875,913 | 2,329,057 | 1,719,371 |
Inter-segment | |||
Net revenue | 2,875,913 | 2,329,057 | 1,719,371 |
Cost of services | (1,109,813) | (859,552) | (652,300) |
Gross profit | 1,766,100 | 1,469,505 | 1,067,071 |
Selling, general and administrative expenses | (1,014,684) | (798,153) | (622,615) |
Other expenses, net | 15,645 | (7,252) | (3,561) |
Operating income | 767,061 | 664,100 | 440,895 |
Finance income | 110,642 | 102,042 | 64,566 |
Finance expenses | (457,616) | (349,893) | (243,796) |
Share of income of associate | 9,495 | 12,184 | 11,797 |
Income before income taxes | 429,582 | 428,433 | 273,462 |
Income taxes expenses | (24,166) | (35,677) | (31,179) |
Net income | 405,416 | 392,756 | 242,283 |
Operating segments [member] | Undergrad [member] | |||
IfrsStatementLineItems [Line Items] | |||
External customer | 2,511,018 | 2,037,889 | 1,498,408 |
Inter-segment | |||
Net revenue | 2,511,018 | 2,037,889 | 1,498,408 |
Cost of services | (997,973) | (763,185) | (554,995) |
Gross profit | 1,513,045 | 1,274,704 | 943,413 |
Operating segments [member] | Continuing Education [member] | |||
IfrsStatementLineItems [Line Items] | |||
External customer | 146,827 | 108,806 | 72,983 |
Inter-segment | |||
Net revenue | 146,827 | 108,806 | 72,983 |
Cost of services | (62,792) | (56,554) | (50,773) |
Gross profit | 84,035 | 52,252 | 22,210 |
Operating segments [member] | Digital Services [member] | |||
IfrsStatementLineItems [Line Items] | |||
External customer | 218,068 | 182,362 | 147,980 |
Inter-segment | 11,217 | 7,622 | 3,978 |
Net revenue | 229,285 | 189,984 | 151,958 |
Cost of services | (60,265) | (47,435) | (50,510) |
Gross profit | 169,020 | 142,549 | 101,448 |
Operating segments [member] | Total Reportable Segments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
External customer | 2,875,913 | 2,329,057 | 1,719,371 |
Inter-segment | 11,217 | 7,622 | 3,978 |
Net revenue | 2,887,130 | 2,336,679 | 1,723,349 |
Cost of services | (1,121,030) | (867,174) | (656,278) |
Gross profit | 1,766,100 | 1,469,505 | 1,067,071 |
Operating segments [member] | Adjustments And Eliminations [Member] | |||
IfrsStatementLineItems [Line Items] | |||
External customer | |||
Inter-segment | (11,217) | (7,622) | (3,978) |
Net revenue | (11,217) | (7,622) | (3,978) |
Cost of services | 11,217 | 7,622 | 3,978 |
Gross profit |
Business combinations (Details)
Business combinations (Details) - BRL (R$) R$ in Thousands | Jan. 02, 2023 | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | |||
Total identifiable net assets at fair value | R$ 81855 | R$ 145300 | |
Del Rey [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash and cash and equivalents | R$ 7804 | ||
Trade receivables | 33,741 | ||
Inventories | 139 | ||
Recoverable taxes | 589 | ||
Other assets | 8,563 | ||
Property and equipment | 24,980 | ||
Right-of-use assets | 65,408 | ||
Intangible assets | 728,777 | ||
Total | 870,001 | ||
Trade payables | 12,253 | ||
Lease liabilities | 65,408 | ||
Labor and social obligations | 6,252 | ||
Taxes and contributions payable | 2,282 | ||
Advances from customers | 38,327 | ||
Provision for legal proceedings | 152 | ||
Other liabilities | 4,189 | ||
Financial liabilities recognised as of acquisition date | 128,863 | ||
Total identifiable net assets at fair value | 741,138 | ||
Goodwill arising on acquisition | 75,098 | ||
Purchase consideration transferred | 816,236 | ||
Cash paid | 575,000 | ||
Consideration to be transferred | 234,000 | ||
Digital solutions | 7,236 | ||
Transaction costs of the acquisition (included in cash flows from operating activities) | 12,332 | ||
Cash paid net of cash acquired with the subsidiary (included in cash flows from investing activities) | 567,196 | ||
Net of cash flow on acquisition | R$ 579528 |
Business combinations (Details
Business combinations (Details 1) - Acquisition Of Del Rey [Member] | Jan. 02, 2023 |
Licences and franchises [member] | With And Without Method [Member] | |
IfrsStatementLineItems [Line Items] | |
Valuation technique | The with-and-without method consists of estimating the fair value of an asset by the difference between the value of this asset in two scenarios: a scenario considering the existence of the asset in question and another considering its non-existence. |
Customer-related intangible assets [member] | Multi-period excess earnings method [member] | |
IfrsStatementLineItems [Line Items] | |
Valuation technique | The method considers the present value of net cash flows expected to be generated by customer relationships, by excluding any cash flows related to contributory assets. |
Business combinations (Detail_2
Business combinations (Details 2) - BRL (R$) R$ in Thousands | May 23, 2022 | Apr. 05, 2022 | Mar. 04, 2022 | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | |||||
Indemnification assets recognised as of acquisition date | R$ 81855 | R$ 145300 | |||
Alem Da Medicina [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Cash and cash and equivalents | R$ 298 | ||||
Trade receivables | 1,705 | ||||
Property, plant and equipment recognised as of acquisition date | 266 | ||||
Property, plant and equipment recognised as of acquisition date | 37 | ||||
Identifiable intangible assets recognised as of acquisition date | 20,299 | ||||
Total | 22,605 | ||||
Trade and other payables recognised as of acquisition date | 705 | ||||
Labor And Social Obligations As Of Acquisition Date | 79 | ||||
Taxes Payable As Of Acquisition Date | 1,182 | ||||
Advances From Customers As Of Acquisition Date | 6,185 | ||||
Other Liabilities As Of Acquisition Date | |||||
Total | 8,151 | ||||
Indemnification assets recognised as of acquisition date | 14,454 | ||||
Goodwill recognised as of acquisition date | 12,335 | ||||
Consideration transferred, acquisition-date fair value | 26,789 | ||||
Cash transferred | 14,952 | ||||
Contingent consideration recognised as of acquisition date | 11,074 | ||||
Consideration To Be Transferred | 763 | ||||
Acquisition-related costs for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | 227 | ||||
Cash and cash equivalents in subsidiary or businesses acquired or disposed | 14,654 | ||||
Net of cash flow on acquisition | R$ 14881 | ||||
Cardio Papers [Member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Cash and cash and equivalents | R$ 3648 | ||||
Trade receivables | 1,350 | ||||
Property, plant and equipment recognised as of acquisition date | 1 | ||||
Property, plant and equipment recognised as of acquisition date | 43 | ||||
Identifiable intangible assets recognised as of acquisition date | 28,655 | ||||
Total | 33,697 | ||||
Trade and other payables recognised as of acquisition date | 1,703 | ||||
Labor And Social Obligations As Of Acquisition Date | 60 | ||||
Taxes Payable As Of Acquisition Date | 352 | ||||
Advances From Customers As Of Acquisition Date | 3,893 | ||||
Other Liabilities As Of Acquisition Date | |||||
Total | 6,008 | ||||
Indemnification assets recognised as of acquisition date | 27,689 | ||||
Goodwill recognised as of acquisition date | 14,324 | ||||
Consideration transferred, acquisition-date fair value | 42,013 | ||||
Cash transferred | 34,924 | ||||
Contingent consideration recognised as of acquisition date | 7,422 | ||||
Consideration To Be Transferred | (333) | ||||
Acquisition-related costs for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | 274 | ||||
Cash and cash equivalents in subsidiary or businesses acquired or disposed | 31,276 | ||||
Net of cash flow on acquisition | R$ 31550 | ||||
Glic [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Cash and cash and equivalents | R$ 151 | ||||
Trade receivables | 94 | ||||
Property, plant and equipment recognised as of acquisition date | 36 | ||||
Property, plant and equipment recognised as of acquisition date | |||||
Identifiable intangible assets recognised as of acquisition date | 15,395 | ||||
Total | 15,676 | ||||
Trade and other payables recognised as of acquisition date | 1 | ||||
Labor And Social Obligations As Of Acquisition Date | |||||
Taxes Payable As Of Acquisition Date | 91 | ||||
Advances From Customers As Of Acquisition Date | |||||
Other Liabilities As Of Acquisition Date | 574 | ||||
Total | 666 | ||||
Indemnification assets recognised as of acquisition date | 15,010 | ||||
Goodwill recognised as of acquisition date | 15,587 | ||||
Consideration transferred, acquisition-date fair value | 30,597 | ||||
Cash transferred | 21,602 | ||||
Contingent consideration recognised as of acquisition date | 8,995 | ||||
Consideration To Be Transferred | |||||
Acquisition-related costs for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | 222 | ||||
Cash and cash equivalents in subsidiary or businesses acquired or disposed | 21,451 | ||||
Net of cash flow on acquisition | R$ 21673 |
Business combinations (Detail_3
Business combinations (Details 3) - Alem Da Medicina [member] | Mar. 04, 2022 |
Brand names [member] | Relief From Royalty [Member] | |
IfrsStatementLineItems [Line Items] | |
Valuation technique | This methodology is based on the market remuneration of the use license granted to third parties. The value of the asset is restated by the savings of royalties that the owner would have to own the asset. It is necessary to determine a royalty rate that reflects the appropriate remuneration of the asset. The royalty payments, net of taxes, are discounted to present value. |
Customer-related intangible assets [member] | Multi-period excess earnings method [member] | |
IfrsStatementLineItems [Line Items] | |
Valuation technique | The method considers the present value of net cash flows expected to be generated by customer relationships, by excluding any cash flows related to contributory assets. |
Educational Content [Member] | Replacement Cost [Member] | |
IfrsStatementLineItems [Line Items] | |
Valuation technique | This methodology is based on the estimated cost of replacing the referred asset with a new one (acquisition or reconstruction), adjusted to reflect the losses in value resulting from the physical deterioration and the functional and economic obsolescence of that asset. |
Technology-based intangible assets [member] | Replacement Cost [Member] | |
IfrsStatementLineItems [Line Items] | |
Valuation technique | This methodology is based on the estimated cost of replacing the referred asset with a new one (acquisition or reconstruction), adjusted to reflect the losses in value resulting from the physical deterioration and the functional and economic obsolescence of that asset. |
Business combinations (Detail_4
Business combinations (Details 4) - Acquisition Of Cardio Papers [Member] | Apr. 05, 2022 |
Brand names [member] | Relief From Royalty [Member] | |
IfrsStatementLineItems [Line Items] | |
Valuation technique | This methodology is based on the market remuneration of the use license granted to third parties. The value of the asset is restated by the savings of royalties that the owner would have to own the asset. It is necessary to determine a royalty rate that reflects the appropriate remuneration of the asset. The royalty payments, net of taxes, are discounted to present value. |
Customer-related intangible assets [member] | Multi-period excess earnings method [member] | |
IfrsStatementLineItems [Line Items] | |
Valuation technique | The method considers the present value of net cash flows expected to be generated by customer relationships, by excluding any cash flows related to contributory assets. |
Educational Content [Member] | Replacement Cost [Member] | |
IfrsStatementLineItems [Line Items] | |
Valuation technique | This methodology is based on the estimated cost of replacing the referred asset with a new one (acquisition or reconstruction), adjusted to reflect the losses in value resulting from the physical deterioration and the functional and economic obsolescence of that asset. |
Copyright [Member] | Relief From Royalty [Member] | |
IfrsStatementLineItems [Line Items] | |
Valuation technique | This methodology is based on the market remuneration of the use license granted to third parties. The value of the asset is restated by the savings of royalties that the owner would have to own the asset. It is necessary to determine a royalty rate that reflects the appropriate remuneration of the asset. The royalty payments, net of taxes, are discounted to present value. |
Business combinations (Detail_5
Business combinations (Details 5) - Acquisition Of Glic [Member] | May 23, 2022 |
Brand names [member] | Relief From Royalty [Member] | |
IfrsStatementLineItems [Line Items] | |
Valuation technique | This methodology is based on the market remuneration of the use license granted to third parties. The value of the asset is restated by the savings of royalties that the owner would have to own the asset. It is necessary to determine a royalty rate that reflects the appropriate remuneration of the asset. The royalty payments, net of taxes, are discounted to present value. |
Customer-related intangible assets [member] | Multi-period excess earnings method [member] | |
IfrsStatementLineItems [Line Items] | |
Valuation technique | The method considers the present value of net cash flows expected to be generated by customer relationships, by excluding any cash flows related to contributory assets. |
Technology-based intangible assets [member] | Replacement Cost [Member] | |
IfrsStatementLineItems [Line Items] | |
Valuation technique | This methodology is based on the estimated cost of replacing the referred asset with a new one (acquisition or reconstruction), adjusted to reflect the losses in value resulting from the physical deterioration and the functional and economic obsolescence of that asset. |
Business combinations (Detail_6
Business combinations (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | ||||||
Jan. 02, 2023 | May 23, 2022 | Apr. 05, 2022 | Mar. 04, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||||||
Net revenue | R$ 2875913 | R$ 2329057 | R$ 1719371 | ||||
Income loss before income taxes | 429,582 | 428,433 | R$ 273462 | ||||
Acquisition Of Del Rey [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Acquired share capital | 100% | ||||||
Acquired purchase price | The original aggregate purchase price of R$832,236 was adjusted by R$16,000, in favor of the Company, to R$816,236 comprised by: i) R$809,000 of which R$575,000 was paid in cash on the transaction closing date, and R$234,000 is payable in cash in three annual installments, respectively, of R$134,000 in January 2024, R$50,000 in January 2025 and R$50,000 in January 2026, adjusted by the SELIC rate; and ii) offer of AFYA’s digital solutions free of charge until December 31, 2030, for students of medicine of universities owned by the sellers which are not part of the transaction. The fair value of this service was estimated at R$7,236 at the acquisition date. There are 84 additional seats still pending approval which, if approved by MEC, will result in a potential additional payment of up to R$105,000. Given the future event that will trigger the potential payout is not under the Company’s control, the probability of such payout cannot be reliably estimated and accordingly the contingent consideration was not measured at the acquisition date. Should the additional seats be approved, it will result in additional licenses, which will be measured accordingly if and when approved. | ||||||
Transaction costs | R$ 12332 | ||||||
Net revenue | 240,107 | ||||||
Income loss before income taxes | 82,147 | ||||||
Alem Da Medicina [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Acquired share capital | 100% | ||||||
Acquired purchase price | The aggregate purchase price of R$26,789 is comprised by: i) R$14,952 paid in cash on the transaction closing date; ii) an earn-out (“contingent consideration”) of up to R$19,200 is payable in connection with revenue target achievements for 2023 and 2024; and iii) price adjustment related to net debt of R$763 in favor of selling shareholders. The contingent consideration of R$11,074 is based on the present value of the obligation considering the facts and circumstances at the acquisition date. | ||||||
Transaction costs | R$ 227 | ||||||
Net revenue | 12,859 | ||||||
Income loss before income taxes | R$ 1448 | ||||||
Increase in revenue | 2,529 | ||||||
Increase in income before income taxes | 867 | ||||||
Acquisition Of Cardio Papers [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Acquired share capital | 100% | ||||||
Acquired purchase price | The aggregate purchase price of R$42,013 is comprised by: i) R$34,924 paid in cash on the transaction closing date; ii) an earn-out (“contingent consideration”) of up of R$15,000 is payable in connection with revenue target achievements for 2023 and 2024 and other goals; and iii) price adjustment related to net debt of R$333 in favor of Afya Brazil. The contingent consideration of R$7,422 is based on the present value of the obligation considering the facts and circumstances at the acquisition date. | ||||||
Transaction costs | R$ 274 | ||||||
Cardio Papers [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Net revenue | 9,934 | ||||||
Income loss before income taxes | R$ 2352 | ||||||
Increase in revenue | 2,117 | ||||||
Decrease in income before income taxes | R$ 2041 | ||||||
Acquisition Of Glic [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Acquired share capital | 100% | ||||||
Acquired purchase price | The aggregate purchase price of R$30,597 is comprised by: i) R$21,602 paid in cash on the transaction closing date and ii) an earn-out (“contingent consideration”) of up of R$12,000 is payable in connection with revenue target achievements for 2023 and 2024 and product development goals. The contingent consideration of R$8,995 is based on the present value of the obligation considering the facts and circumstances at the acquisition date. | ||||||
Transaction costs | R$ 222 | ||||||
Glic [member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Net revenue | 389 | ||||||
Income loss before income taxes | R$ 1539 | ||||||
Increase in revenue | 173 | ||||||
Decrease in income before income taxes | R$ 700 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Cash And Cash Equivalents | ||
Cash and bank deposits | R$ 11746 | R$ 57509 |
Cash equivalents | 541,284 | 1,035,573 |
Cash and cash equivalents | R$ 553030 | R$ 1093082 |
Cash and cash equivalents (De_2
Cash and cash equivalents (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Cash equivalents | R$ 541284 | R$ 1035573 |
U S D [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Cash equivalents | R$ 23173 | R$ 24447 |
Bank Certificates Of Deposit [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Percentage of average interest | 100.80% | 99.21% |
Trade receivables (Details)
Trade receivables (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Trade receivables, gross | R$ 647321 | R$ 539445 |
(-) Allowance for doubtful accounts | (61,398) | (44,046) |
Trade receivables, net | 585,923 | 495,399 |
Current | 546,438 | 452,831 |
Non-current | 39,485 | 42,568 |
Tuition Fees [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables, gross | 461,066 | 356,074 |
Educational Content [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables, gross | 49,135 | 50,913 |
F I E S [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables, gross | 62,971 | 62,325 |
Educational Credits [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables, gross | 29,391 | 27,535 |
Mobile App Subscription [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables, gross | 29,091 | 27,675 |
Others [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables, gross | R$ 15667 | R$ 14923 |
Trade receivables (Details 1)
Trade receivables (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Trade receivable | R$ 647321 | R$ 539445 |
Current [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivable | 73,563 | 56,280 |
Later Than One Months And Not Later Than Three Months [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivable | 109,908 | 90,734 |
Later than three months and not later than six months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivable | 85,193 | 80,522 |
Later Than One Eighty [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivable | 55,043 | 50,884 |
Financial assets neither past due nor impaired [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivable | R$ 323614 | R$ 261025 |
Trade receivables (Details 2)
Trade receivables (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Notes and other explanatory information [abstract] | |||
Balances at the beginning of the year | R$ 44046 | R$ 45013 | R$ 32980 |
Additions | (74,552) | (42,708) | (47,819) |
Write-offs | 57,200 | 43,675 | 35,786 |
Balances at the end of the year | R$ 61398 | R$ 44046 | R$ 45013 |
Related parties (Details)
Related parties (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Trade receivables (i) | R$ 693 | R$ 917 | |
Other assets (ii) | 285 | 1,975 | |
Total | 978 | 2,892 | |
Current | 792 | 2,892 | |
Non-current | 186 | ||
Accounts payable to selling shareholders (iii) | 30,653 | ||
Total | 30,653 | ||
Current | 30,653 | ||
Non-current | |||
Other income | 459 | 477 | R$ 752 |
Lease | 32,186 | 28,723 | 23,106 |
U E P C [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other income | 465 | 477 | 752 |
E M I V E Patrulha 24 Horas Ltda [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Other income | (6) | ||
R V L Esteves Gestao Imobiliaria S A [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Lease | 23,434 | 20,394 | 15,336 |
U N I V A C O Patrimonial Ltda [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Lease | 3,582 | 3,409 | 3,210 |
I E S V A P Patrimonial Ltda [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Lease | R$ 5170 | R$ 4920 | R$ 4560 |
Related parties (Details 1)
Related parties (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Notes and other explanatory information [abstract] | |||
Short-term employee benefits | R$ 16979 | R$ 13564 | R$ 11933 |
Share-based compensation plans | 21,380 | 13,116 | 20,251 |
Total | R$ 38359 | R$ 26680 | R$ 32184 |
Related parties (Details Narrat
Related parties (Details Narrative) - Lease Agreements 1 [Member] - BRL (R$) R$ in Thousands | 12 Months Ended | ||||||
Aug. 02, 2021 | Oct. 30, 2019 | Sep. 06, 2018 | Apr. 25, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||||||
Lease term | 20 years | 20 years | |||||
Renewal term | 20 years | ||||||
R V L Esteves Gestao Imobiliaria S A [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Lease expenses | R$ 40 | R$ 12 | R$ 23434 | R$ 20394 | R$ 15336 | ||
U N I V A C O Patrimonial Ltda [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Percentage of revenue | 6.50% | 6.50% | |||||
Renewal term | 20 years | ||||||
Lease expenses | R$ 3582 | 3,409 | 3,210 | ||||
I E S V A P Patrimonial Ltda [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Lease term | 20 years | ||||||
Percentage of revenue | 7.50% | ||||||
Renewal term | 20 years | ||||||
Lease expenses | R$ 5170 | R$ 4920 | R$ 4560 | ||||
Description of lease term | The lease agreement is for an amount equal to 7.5% of the monthly revenue of IESVAP until maturation. | ||||||
Instituto Tocantinense Presidente Antonio Carlos S A [Member] | R V L Esteves Gestao Imobiliaria S A [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Percentage of revenue | 7.50% | ||||||
Institutode Ensino Superior Presidente Trancredode Almeida Neves S A [Member] | R V L Esteves Gestao Imobiliaria S A [Member] | |||||||
IfrsStatementLineItems [Line Items] | |||||||
Description of lease term | (i) up to June 2022, R$40; (ii) from July 2022 until December 2028, 6.5% of the monthly revenue of ITPAC Garanhuns during the prior semester, adjusted in accordance with the provisions of the lease agreement | (i) up to June 2020, R$12 and (ii) from July 2020 until March 2024, 6.5% of the monthly revenue of IPTAN during the prior semester, adjusted in accordance with the provisions of the lease agreement. |
Other assets (Details)
Other assets (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets | ||
Indemnification assets (i) | R$ 81855 | R$ 145300 |
Advances | 39,890 | 30,626 |
Judicial deposits | 14,187 | 12,693 |
Prepaid expenses | 15,820 | 18,441 |
Other FIES receivables | 8,674 | 26,440 |
Dividends | 1,668 | |
Deferred tax assets | 3,233 | |
Other assets | 10,924 | 10,001 |
Total | 176,251 | 243,501 |
Current | 58,905 | 51,745 |
Non-current | R$ 117346 | R$ 191756 |
Other assets (Details Narrative
Other assets (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Assets | ||
Other assets | R$ 176251 | R$ 243501 |
Investment in associate (Detail
Investment in associate (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Current assets | R$ 1203506 | R$ 1637657 | |
Non-current assets | 6,380,975 | 5,561,882 | |
Current liabilities | (1,058,567) | (905,689) | |
Non-current liabilities | (2,882,902) | (3,043,692) | |
Revenue | 2,875,913 | 2,329,057 | R$ 1719371 |
Cost of services | (1,109,813) | (859,552) | (652,300) |
Finance results | (110,642) | (102,042) | (64,566) |
Income before income taxes | 429,582 | 428,433 | 273,462 |
Income taxes expenses | 24,166 | 35,677 | 31,179 |
Net income | 405,416 | 392,756 | 242,283 |
Dividends receivable (included in Other assets) | (9,900) | (6,754) | (11,770) |
Associates [member] | |||
IfrsStatementLineItems [Line Items] | |||
Current assets | 29,004 | 32,651 | |
Non-current assets | 120,289 | 122,378 | |
Current liabilities | (28,842) | (22,840) | |
Non-current liabilities | (91,613) | (96,442) | |
Equity | 28,838 | 35,747 | |
Company’s share in equity - 30% | 8,651 | 10,724 | |
Goodwill | 43,183 | 43,183 | |
Carrying amount of the investment | 51,834 | 53,907 | |
Revenue | 148,042 | 138,584 | 127,618 |
Cost of services | (71,282) | (57,421) | (57,935) |
Selling, general and administrative expenses | (37,205) | (34,991) | (24,025) |
Finance results | (6,123) | (4,103) | (4,585) |
Income before income taxes | 33,432 | 42,069 | 41,073 |
Income taxes expenses | (1,782) | (1,456) | (1,748) |
Net income | 31,650 | 40,613 | 39,325 |
Company’s share of income | 9,495 | 12,184 | 11,797 |
Opening balance | 53,907 | 48,477 | 51,410 |
Dividends received | (9,900) | (6,754) | (11,770) |
Dividends receivable (included in Other assets) | (1,668) | (2,960) | |
Share of income | 9,495 | 12,184 | 11,797 |
Closing balance | R$ 51834 | R$ 53907 | R$ 48477 |
Property and equipment (Details
Property and equipment (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Net book value | R$ 608685 | R$ 542087 | |
Buildings [member] | |||
IfrsStatementLineItems [Line Items] | |||
Net book value | 83,553 | 86,106 | |
Machinery And Equipments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Net book value | 91,138 | 79,760 | |
Land [member] | |||
IfrsStatementLineItems [Line Items] | |||
Net book value | 18,852 | 18,852 | |
Vehicles [member] | |||
IfrsStatementLineItems [Line Items] | |||
Net book value | 1,552 | 1,341 | |
Fixtures and fittings [member] | |||
IfrsStatementLineItems [Line Items] | |||
Net book value | 90,482 | 80,363 | |
It Equipment [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Net book value | 55,938 | 46,756 | |
Library Books [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Net book value | 13,236 | 14,474 | |
Leasehold improvements [member] | |||
IfrsStatementLineItems [Line Items] | |||
Net book value | 219,972 | 127,747 | |
Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Net book value | 33,962 | 86,688 | |
Gross carrying amount [member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | 641,353 | 487,975 | R$ 314015 |
Additions | 118,435 | 168,132 | 125,869 |
Business combination | 24,980 | 80 | 65,623 |
Write-off (i) | (27,382) | (15,649) | (17,532) |
Transfer | 815 | ||
As of December 31, 2023 | 757,386 | 641,353 | 487,975 |
Gross carrying amount [member] | Buildings [member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | 91,857 | 52,433 | 25,919 |
Additions | 96 | 527 | 1,384 |
Business combination | |||
Write-off (i) | 13 | 62 | |
Transfer | 1,279 | 38,884 | 25,068 |
As of December 31, 2023 | 93,232 | 91,857 | 52,433 |
Gross carrying amount [member] | Machinery And Equipments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | 100,390 | 77,371 | 68,503 |
Additions | 20,071 | 36,486 | 10,268 |
Business combination | 7,729 | 45 | 12,810 |
Write-off (i) | (9,411) | (8,159) | (14,213) |
Transfer | 1,202 | (5,353) | 3 |
As of December 31, 2023 | 119,981 | 100,390 | 77,371 |
Gross carrying amount [member] | Land [member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | 18,852 | 18,852 | 13,401 |
Additions | 5,451 | ||
Business combination | |||
Write-off (i) | |||
Transfer | |||
As of December 31, 2023 | 18,852 | 18,852 | 18,852 |
Gross carrying amount [member] | Vehicles [member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | 1,053 | 1,467 | 1,215 |
Additions | 776 | 968 | 111 |
Business combination | 346 | ||
Write-off (i) | (475) | (933) | (205) |
Transfer | (449) | ||
As of December 31, 2023 | 1,354 | 1,053 | 1,467 |
Gross carrying amount [member] | Fixtures and fittings [member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | 90,712 | 69,834 | 29,131 |
Additions | 17,914 | 26,047 | 21,075 |
Business combination | 4,384 | 16,684 | |
Write-off (i) | (1,443) | 500 | 2,862 |
Transfer | (708) | (5,669) | 82 |
As of December 31, 2023 | 110,859 | 90,712 | 69,834 |
Gross carrying amount [member] | It Equipment [Member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | 68,593 | 53,184 | 28,511 |
Additions | 21,135 | 15,766 | 19,511 |
Business combination | 734 | 35 | 10,138 |
Write-off (i) | (7,979) | (6,992) | (4,985) |
Transfer | 327 | 6,600 | 9 |
As of December 31, 2023 | 82,810 | 68,593 | 53,184 |
Gross carrying amount [member] | Library Books [Member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | 37,362 | 30,072 | 21,624 |
Additions | 985 | 645 | 3,392 |
Business combination | 1,329 | 5,142 | |
Write-off (i) | (7,788) | (86) | |
Transfer | 6,645 | ||
As of December 31, 2023 | 31,888 | 37,362 | 30,072 |
Gross carrying amount [member] | Leasehold improvements [member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | 145,846 | 152,976 | 122,005 |
Additions | 49 | 2,667 | 4,720 |
Business combination | 10,741 | 17,425 | |
Write-off (i) | (286) | (550) | |
Transfer | 108,098 | (9,797) | 9,376 |
As of December 31, 2023 | 264,448 | 145,846 | 152,976 |
Gross carrying amount [member] | Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | 86,688 | 31,786 | 3,706 |
Additions | 57,409 | 85,026 | 59,957 |
Business combination | 63 | 3,078 | |
Write-off (i) | (78) | (417) | |
Transfer | (110,198) | (30,046) | (34,538) |
As of December 31, 2023 | 33,962 | 86,688 | 31,786 |
Accumulated depreciation and amortisation [member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | (99,266) | (68,167) | (53,634) |
Depreciation | (74,907) | (45,051) | (30,461) |
Write-off (i) | 25,472 | 13,952 | 15,928 |
Transfer | |||
As of December 31, 2023 | (148,701) | (99,266) | (68,167) |
Accumulated depreciation and amortisation [member] | Buildings [member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | (5,751) | (1,673) | |
Depreciation | (4,242) | (3,472) | (1,673) |
Write-off (i) | 118 | ||
Transfer | 196 | (606) | |
As of December 31, 2023 | (9,679) | (5,751) | (1,673) |
Accumulated depreciation and amortisation [member] | Machinery And Equipments [Member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | (20,630) | (16,391) | (19,322) |
Depreciation | (14,900) | (11,166) | (7,215) |
Write-off (i) | 6,684 | 5,474 | 10,146 |
Transfer | 3 | 1,453 | |
As of December 31, 2023 | (28,843) | (20,630) | (16,391) |
Accumulated depreciation and amortisation [member] | Land [member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | |||
Depreciation | |||
Write-off (i) | |||
Transfer | |||
As of December 31, 2023 | |||
Accumulated depreciation and amortisation [member] | Vehicles [member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | 288 | (220) | (171) |
Depreciation | (325) | (284) | (196) |
Write-off (i) | 235 | 791 | 147 |
Transfer | 1 | ||
As of December 31, 2023 | 198 | 288 | (220) |
Accumulated depreciation and amortisation [member] | Fixtures and fittings [member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | (10,349) | (12,496) | (8,089) |
Depreciation | (12,556) | (7,725) | (5,601) |
Write-off (i) | 2,528 | 153 | 1,194 |
Transfer | 9,719 | ||
As of December 31, 2023 | (20,377) | (10,349) | (12,496) |
Accumulated depreciation and amortisation [member] | It Equipment [Member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | (21,837) | (14,922) | (10,851) |
Depreciation | (13,286) | (10,140) | (7,529) |
Write-off (i) | 8,254 | 7,350 | 3,458 |
Transfer | (3) | (4,125) | |
As of December 31, 2023 | (26,872) | (21,837) | (14,922) |
Accumulated depreciation and amortisation [member] | Library Books [Member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | (22,888) | (13,600) | (10,817) |
Depreciation | (3,327) | (3,415) | (3,416) |
Write-off (i) | 7,563 | 67 | 633 |
Transfer | (5,940) | ||
As of December 31, 2023 | (18,652) | (22,888) | (13,600) |
Accumulated depreciation and amortisation [member] | Leasehold improvements [member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | (18,099) | (8,865) | (4,384) |
Depreciation | (26,271) | (8,849) | (4,831) |
Write-off (i) | 90 | 117 | 350 |
Transfer | (196) | (502) | |
As of December 31, 2023 | (44,476) | (18,099) | (8,865) |
Accumulated depreciation and amortisation [member] | Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
As of December 31, 2022 | |||
Depreciation | |||
Write-off (i) | |||
Transfer | |||
As of December 31, 2023 |
Intangible assets and goodwil_2
Intangible assets and goodwill (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||||
Write-off | R$ 413 | R$ 25 | R$ 2374 | |
Net book value | 4,796,016 | 4,041,491 | ||
Gross carrying amount [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | 4,339,859 | 4,093,140 | 2,684,559 | |
Additions | 99,993 | 150,023 | 176,110 | |
Write-off | (3,271) | (447) | (2,140) | |
Business combinations | 803,875 | 106,595 | 1,234,611 | |
Remesurement | 2,556 | (8,637) | ||
Transfer amount | (815) | |||
Intangible assets and goodwill, balance at end | 5,243,012 | 4,339,859 | 4,093,140 | |
Accumulated depreciation and amortisation [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | (298,368) | (192,305) | (111,549) | |
Amortization | (151,486) | (106,485) | (80,522) | |
Write-off | 2,858 | 422 | (234) | |
Intangible assets and goodwill, balance at end | (446,996) | (298,368) | (192,305) | |
Goodwill [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net book value | 1,334,699 | 1,257,045 | ||
Goodwill [member] | Gross carrying amount [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | 1,257,045 | 1,184,336 | 810,656 | |
Additions | 39,100 | |||
Business combinations | 75,098 | 42,246 | 373,680 | |
Remesurement | 2,556 | (8,637) | ||
Intangible assets and goodwill, balance at end | 1,334,699 | 1,257,045 | 1,184,336 | |
Goodwill [member] | Accumulated depreciation and amortisation [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | ||||
Amortization | ||||
Intangible assets and goodwill, balance at end | ||||
Licences [member] | Gross carrying amount [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | 2,189,814 | 2,165,406 | 1,451,270 | |
Additions | 24,408 | 108,000 | ||
Business combinations | 586,263 | 606,136 | ||
Intangible assets and goodwill, balance at end | 2,776,077 | 2,189,814 | 2,165,406 | |
Net book value | 2,776,077 | 2,189,814 | ||
Licences [member] | Accumulated depreciation and amortisation [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | ||||
Amortization | ||||
Intangible assets and goodwill, balance at end | ||||
Brand names [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net book value | 156,022 | R$ 167105 | ||
Brand names [member] | Gross carrying amount [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | 182,060 | 133,369 | 75,014 | |
Write-off | (22) | |||
Business combinations | 51,185 | 58,355 | ||
Transfer amount | (2,472) | |||
Intangible assets and goodwill, balance at end | 182,060 | 182,060 | 133,369 | |
Brand names [member] | Accumulated depreciation and amortisation [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | (14,955) | (8,529) | (3,502) | |
Amortization | (11,083) | (6,426) | (5,027) | |
Intangible assets and goodwill, balance at end | (26,038) | (14,955) | (8,529) | |
Customer-related intangible assets [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net book value | 276,320 | 223,453 | ||
Customer-related intangible assets [member] | Gross carrying amount [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | 435,816 | 431,277 | 283,539 | |
Additions | 80 | 684 | ||
Business combinations | 142,451 | 3,929 | 147,054 | |
Transfer amount | 530 | |||
Intangible assets and goodwill, balance at end | 578,267 | 435,816 | 431,277 | |
Customer-related intangible assets [member] | Accumulated depreciation and amortisation [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | (212,363) | (142,270) | (85,832) | |
Amortization | (89,584) | (70,093) | (56,438) | |
Intangible assets and goodwill, balance at end | (301,947) | (212,363) | (142,270) | |
Computer software [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net book value | 47,056 | 26,023 | ||
Computer software [member] | Gross carrying amount [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | 43,300 | 21,759 | 16,221 | |
Additions | 1,314 | 1,423 | 3,044 | |
Write-off | (2,235) | (381) | 1,020 | |
Business combinations | 63 | 33 | 1,474 | |
Transfer amount | 28,708 | 20,466 | ||
Intangible assets and goodwill, balance at end | 71,150 | 43,300 | 21,759 | |
Computer software [member] | Accumulated depreciation and amortisation [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | (17,277) | (12,699) | (6,256) | |
Amortization | (8,764) | (4,943) | (5,844) | |
Write-off | 1,947 | 365 | (599) | |
Intangible assets and goodwill, balance at end | (24,094) | (17,277) | (12,699) | |
Education Content [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net book value | 41,971 | 43,027 | ||
Education Content [Member] | Gross carrying amount [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | 69,589 | 17,305 | 17,305 | |
Additions | 9,827 | 11,231 | ||
Write-off | (7) | |||
Business combinations | 2,627 | |||
Transfer amount | 4,785 | 38,433 | ||
Intangible assets and goodwill, balance at end | 84,201 | 69,589 | 17,305 | |
Education Content [Member] | Accumulated depreciation and amortisation [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | (26,562) | (16,672) | (7,692) | |
Amortization | (15,668) | (9,634) | (8,980) | |
Write-off | 57 | |||
Transfer amount | (313) | |||
Intangible assets and goodwill, balance at end | (42,230) | (26,562) | (16,672) | |
Technology-based intangible assets [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net book value | 96,874 | 80,656 | ||
Technology-based intangible assets [member] | Gross carrying amount [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | 90,749 | 34,397 | 355 | |
Additions | 37,712 | 32,879 | 996 | |
Business combinations | 5,520 | 33,046 | ||
Transfer amount | 16 | 17,953 | ||
Intangible assets and goodwill, balance at end | 128,477 | 90,749 | 34,397 | |
Technology-based intangible assets [member] | Accumulated depreciation and amortisation [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | (10,093) | (657) | (32) | |
Amortization | (21,504) | (9,436) | (625) | |
Transfer amount | (6) | |||
Intangible assets and goodwill, balance at end | (31,603) | (10,093) | (657) | |
Educational Platform [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net book value | 53,992 | 38,658 | ||
Educational Platform [Member] | Gross carrying amount [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | 55,697 | 76,444 | 27,902 | |
Additions | 23,164 | 14,761 | 39,686 | |
Write-off | (911) | (9) | (2,743) | |
Business combinations | 11,599 | |||
Transfer amount | (3,058) | (35,499) | ||
Intangible assets and goodwill, balance at end | 74,892 | 55,697 | 76,444 | |
Educational Platform [Member] | Accumulated depreciation and amortisation [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | (17,039) | (11,478) | (8,235) | |
Amortization | (4,778) | (5,874) | (3,608) | |
Write-off | 911 | 365 | ||
Transfer amount | 6 | 313 | ||
Intangible assets and goodwill, balance at end | (20,900) | (17,039) | (11,478) | |
Software In Progress [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net book value | 12,134 | 14,734 | ||
Software In Progress [Member] | Gross carrying amount [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | 14,734 | 28,847 | 2,297 | |
Additions | 27,976 | 26,141 | 23,700 | |
Write-off | (125) | (28) | (417) | |
Business combinations | 3,267 | |||
Transfer amount | (30,451) | (40,226) | ||
Intangible assets and goodwill, balance at end | 12,134 | 14,734 | 28,847 | |
Software In Progress [Member] | Accumulated depreciation and amortisation [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | ||||
Amortization | ||||
Intangible assets and goodwill, balance at end | ||||
Other [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net book value | 871 | 976 | ||
Other [Member] | Gross carrying amount [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | 1,055 | |||
Business combinations | 1,055 | |||
Intangible assets and goodwill, balance at end | 1,055 | 1,055 | ||
Other [Member] | Accumulated depreciation and amortisation [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Intangible assets and goodwill, balance at beginnning | (79) | |||
Amortization | (105) | (79) | ||
Intangible assets and goodwill, balance at end | R$ 184 | R$ 79 |
Intangible assets and goodwil_3
Intangible assets and goodwill (Details 1) - Carrying Amounts [Member] - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Goodwill | R$ 1334699 | R$ 1257045 |
Licenses with indefinite useful life | 2,776,077 | 2,189,814 |
Cash generating units | 5,584,082 | 4,814,424 |
I P T A N Instituto De Ensino Superior Presidente Trancredo De Almeida Neves S A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 17,446 | 17,446 |
Licenses with indefinite useful life | 57,214 | 57,214 |
Cash generating units | 125,974 | 126,024 |
Instituto De Educacao Superior Do Vale Do Parnaiba S A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 27,956 | 27,956 |
Licenses with indefinite useful life | 81,366 | 81,366 |
Cash generating units | 126,996 | 129,305 |
Centro De Ciencias Em Saude De Itajuba S A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 4,664 | 4,664 |
Licenses with indefinite useful life | 56,737 | 56,737 |
Cash generating units | 54,550 | 53,540 |
Instituto De Ensino Superior Do Piaui S A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 73,838 | 73,838 |
Licenses with indefinite useful life | 179,693 | 179,693 |
Cash generating units | 332,104 | 322,968 |
F A D E P Faculdade Educacional De Pato Branco Ltda [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 49,661 | 49,661 |
Licenses with indefinite useful life | 70,606 | 70,606 |
Cash generating units | 148,032 | 153,100 |
Instituto Educacional Santo Agostinho S A [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 58,903 | 58,903 |
Licenses with indefinite useful life | 144,507 | 144,507 |
Cash generating units | 322,061 | 314,967 |
Institutode Pesquisae Ensino Medicodo Estadode Minas Gerais Ltda [member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 87,647 | 87,647 |
Licenses with indefinite useful life | ||
Cash generating units | 183,862 | 192,079 |
Instituto Paraensede Educacaoe Cultura Ltda [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | ||
Licenses with indefinite useful life | 108,000 | 108,000 |
Cash generating units | 157,984 | 148,067 |
Uni Redentor [member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 77,662 | 77,662 |
Licenses with indefinite useful life | 121,477 | 121,477 |
Cash generating units | 234,054 | 242,600 |
Uni S L [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 4,420 | 4,420 |
Licenses with indefinite useful life | 273,795 | 273,795 |
Cash generating units | 401,143 | 398,492 |
F E S A R [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 71,664 | 71,664 |
Licenses with indefinite useful life | 141,616 | 141,616 |
Cash generating units | 244,412 | 244,084 |
FCMPB [member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 110,483 | 110,483 |
Licenses with indefinite useful life | 235,018 | 235,018 |
Cash generating units | 402,140 | 415,453 |
I T P A C Garanhuns [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | ||
Licenses with indefinite useful life | 108,000 | 108,000 |
Cash generating units | 116,162 | 112,628 |
Medcel And C B B W [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 179,830 | 169,975 |
Licenses with indefinite useful life | ||
Cash generating units | 238,921 | 279,684 |
Practice Management Tools And Electronic Prescription [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 106,774 | 106,774 |
Licenses with indefinite useful life | ||
Cash generating units | 221,171 | 216,297 |
Clinical Decision Software [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 87,018 | 87,018 |
Licenses with indefinite useful life | ||
Cash generating units | 147,897 | 153,526 |
Cliquefarma [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 6,588 | 6,588 |
Licenses with indefinite useful life | ||
Cash generating units | 18,789 | 20,045 |
Unifip Moc [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 87,777 | 87,777 |
Licenses with indefinite useful life | 190,247 | 190,247 |
Cash generating units | 361,383 | 369,007 |
Unigranrio [member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 169,173 | 169,173 |
Licenses with indefinite useful life | 421,538 | 421,538 |
Cash generating units | 833,665 | 854,861 |
RXPRO [member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 29,809 | 29,809 |
Licenses with indefinite useful life | ||
Cash generating units | 34,748 | 36,675 |
Glic [member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 8,288 | 15,587 |
Licenses with indefinite useful life | ||
Cash generating units | 23,721 | 31,022 |
Del Rey [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Goodwill | 75,098 | |
Licenses with indefinite useful life | 586,263 | |
Cash generating units | R$ 854313 |
Intangible assets and goodwil_4
Intangible assets and goodwill (Details 2) | 12 Months Ended |
Dec. 31, 2023 | |
Customer Relationships Medicine [Member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful lives of intangible assets | 6 years |
Customer Relationships Other Courses [Member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful lives of intangible assets | 4 years 6 months |
Computer software [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful lives of intangible assets | 5 years |
Education Content [Member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful lives of intangible assets | 3 years |
Brand names [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful lives of intangible assets | 2 years |
Brand names [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful lives of intangible assets | 30 years |
Developed Technology [Member] | |
IfrsStatementLineItems [Line Items] | |
Estimated useful lives of intangible assets | 5 years |
Intangible assets and goodwil_5
Intangible assets and goodwill (Details Narrative) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Explicit projection period | 5 years | |
Goodwill [member] | ||
IfrsStatementLineItems [Line Items] | ||
Description of key assumptions on which management has based cash flow projections | An increase of 25 basis points in management’s estimated discount rate applied to the cash flow projections of each CGU for the year ended December 31, 2023, or a decrease of 25 basis points on estimated EBITDA would have not resulted in significant impacts on these consolidated financial statements. | |
Bottom of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Discount rate applied to cash flow projections | 12.48% | 13.14% |
Bottom of range [member] | Brand names [member] | ||
IfrsStatementLineItems [Line Items] | ||
Growth rates | 3.50% | |
Top of range [member] | ||
IfrsStatementLineItems [Line Items] | ||
Discount rate applied to cash flow projections | 15.14% | 15.40% |
Top of range [member] | Brand names [member] | ||
IfrsStatementLineItems [Line Items] | ||
Growth rates | 7.80% |
Financial assets and financia_3
Financial assets and financial liabilities (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Trade receivables | R$ 585923 | R$ 495399 |
Total | 39,485 | 42,568 |
Financial assets at amortised cost, class [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables | 585,923 | 495,399 |
Total | 585,923 | 495,399 |
Current | 546,438 | 452,831 |
Non-current | R$ 39485 | R$ 42568 |
Financial assets and financia_4
Financial assets and financial liabilities (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||||
Loans and financing | R$ 1800775 | R$ 1882901 | ||
Lease liabilities | 874,569 | 769,525 | R$ 714085 | R$ 447703 |
Accounts payable to selling shareholders | 566,867 | 528,678 | ||
Total | 3,242,211 | 3,243,280 | ||
Financial liabilities at amortised cost, class [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Trade payables | 108,222 | 71,482 | ||
Loans and financing | 1,800,775 | 1,882,901 | ||
Lease liabilities | 874,569 | 769,525 | ||
Accounts payable to selling shareholders | 566,867 | 528,678 | ||
Lease liabilities | 62,176 | |||
Total | 3,350,433 | 3,314,762 | ||
Current | 678,370 | 573,030 | ||
Non-current | R$ 2672063 | R$ 2741732 |
Financial assets and financia_5
Financial assets and financial liabilities (Details 2) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Loans and financing | R$ 1800775 | R$ 1882901 |
Current | 179,252 | 145,202 |
Non-current | R$ 1621523 | 1,737,699 |
2025 [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial institution | Banco Itaú Unibanco S.A | |
Interest rate | CDI + 1.90% p.y. | |
Maturity | 2025 | |
Loans and financing | R$ 412880 | 518,134 |
2027 [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial institution | FINEP | |
Interest rate | TJLP p.y. | |
Maturity | 2027 | |
Loans and financing | R$ 11193 | 8,418 |
2024 [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial institution | Banco Itaú Unibanco S.A. | |
Interest rate | CDI + 1.75% p.y. | |
Maturity | 2024 | |
Loans and financing | R$ 21405 | 32,252 |
2026 [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial institution | Softbank | |
Interest rate | 6.5% p.y. | |
Maturity | 2026 | |
Loans and financing | R$ 825957 | 824,258 |
2028 [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial institution | Debentures | |
Interest rate | CDI + 1.80% p.y. | |
Maturity | 2028 | |
Loans and financing | R$ 529340 | R$ 499839 |
Financial assets and financia_6
Financial assets and financial liabilities (Details 3) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Notes and other explanatory information [abstract] | |||
Right-of-use assets, balance at beginning | R$ 690073 | R$ 663686 | R$ 419074 |
Lease liabilities, balance at beginning | 769,525 | 714,085 | 447,703 |
Right-of-use assets, additions | 7,328 | 42,250 | 62,689 |
Lease liabilities, additions | 7,328 | 42,250 | 62,689 |
Right-of-use assets, remeasurement | 70,387 | 58,623 | 95,962 |
Lease liabilities, remeasurement | 70,387 | 58,623 | 95,962 |
Right-of-use assets, business combinations | 65,408 | 139,514 | |
Lease liabilities, business combinations | 65,408 | 139,514 | |
Right-of-use assets, depreciation expense | (63,118) | (54,684) | (43,237) |
Lease liabilities, depreciation expense | |||
Right-of-use assets, interest expense | |||
Lease liabilities, interest expense | 100,849 | 88,571 | 67,212 |
Right-of-use assets, payments of lease liabilities | |||
Lease liabilities, payments of lease liabilities | (31,473) | (28,511) | (20,075) |
Right-of-use assets, payments of interest | |||
Lease liabilities, payments of interest | (103,911) | (85,001) | (67,676) |
Right-of-use assets, Write-off | (2,469) | (19,802) | (10,316) |
Lease liabilities, Write-off | (3,544) | (20,492) | (11,244) |
Right-of-use assets, balance at ending | 767,609 | 690,073 | 663,686 |
Lease liabilities, balance at ending | 874,569 | 769,525 | 714,085 |
Right-of-use assets, current | |||
Lease liabilities, current | 36,898 | 32,459 | 24,955 |
Right-of-use assets, non-current | 767,609 | 690,073 | 663,686 |
Lease liabilities, non-current | R$ 837671 | R$ 737066 | R$ 689130 |
Financial assets and financia_7
Financial assets and financial liabilities (Details 4) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Opening balance | R$ 566867 | R$ 528678 |
Current | 353,998 | 261,711 |
Non-current | 212,869 | 266,967 |
IPEMED [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Opening balance | 12,805 | 22,654 |
Uni Redentor [member] | ||
IfrsStatementLineItems [Line Items] | ||
Opening balance | 27,155 | 72,064 |
Uni S L [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Opening balance | 15,064 | 37,301 |
FCMPB [member] | ||
IfrsStatementLineItems [Line Items] | ||
Opening balance | 63,168 | 111,755 |
Medical Harbour [member] | ||
IfrsStatementLineItems [Line Items] | ||
Opening balance | 3,000 | 4,053 |
Shosp [member] | ||
IfrsStatementLineItems [Line Items] | ||
Opening balance | 454 | 2,206 |
Unigranrio [member] | ||
IfrsStatementLineItems [Line Items] | ||
Opening balance | 156,235 | 216,716 |
RXPRO [member] | ||
IfrsStatementLineItems [Line Items] | ||
Opening balance | 1,781 | |
Guaranhuns [member] | ||
IfrsStatementLineItems [Line Items] | ||
Opening balance | 30,653 | |
Alem Da Medicina [member] | ||
IfrsStatementLineItems [Line Items] | ||
Opening balance | 18,325 | 11,996 |
Cardi Papers [member] | ||
IfrsStatementLineItems [Line Items] | ||
Opening balance | 14,173 | 7,979 |
Glic [member] | ||
IfrsStatementLineItems [Line Items] | ||
Opening balance | 9,520 | |
Del Rey [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Opening balance | R$ 256488 |
Financial assets and financia_8
Financial assets and financial liabilities (Details 5) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Opening balance | R$ 528678 | ||
Payment of interest | (279,800) | R$ 201588 | R$ 117986 |
Other | 24,500 | 9,975 | 14,479 |
Closing balance | 566,867 | 528,678 | |
Accounts Payable To Selling Shareholders [member] | |||
IfrsStatementLineItems [Line Items] | |||
Opening balance | 528,678 | 679,826 | 518,240 |
Cash flows payments and deductions | (225,460) | (236,760) | (180,020) |
Payment of interest | (55,989) | (24,428) | (12,661) |
Acquisition of licenses | 24,408 | 54,000 | |
Interest | 85,069 | 68,064 | 31,915 |
Additions consideration to be transferred on business combinations | 234,000 | 243,816 | |
Consideration to be transferred on business combinations (earn-outs) | 27,921 | 24,536 | |
Reversals | (10,353) | ||
Remeasurement of earn-outs | 2,556 | ||
Other | (1,987) | ||
Closing balance | R$ 566867 | R$ 528678 | R$ 679826 |
Financial assets and financia_9
Financial assets and financial liabilities (Details 6) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Notes and other explanatory information [abstract] | |||
Notes payable beginning | R$ 62176 | R$ 72726 | R$ 76181 |
Payments | (49,347) | (12,000) | (9,800) |
Payments of interest | (15,529) | (3,008) | (1,268) |
Monetary indexation | 2,700 | 4,458 | 7,613 |
Notes payable ending | 62,176 | 72,726 | |
Current | 62,176 | 14,478 | |
Non-current | R$ 58248 |
Financial assets and financi_10
Financial assets and financial liabilities (Details 7) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Financial assets, at carrying amount | R$ 39485 | R$ 42568 |
Financial assets, at fair value | 39,485 | 42,568 |
Financial liabilities, at carrying amount | 3,242,211 | 3,243,280 |
Financial liabilities, at fair value | 3,237,188 | 3,294,674 |
Loans And Financing [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial liabilities, at carrying amount | 1,800,775 | 1,882,901 |
Financial liabilities, at fair value | 1,795,752 | 1,934,295 |
Lease liabilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial liabilities, at carrying amount | 874,569 | 769,525 |
Financial liabilities, at fair value | 874,569 | 769,525 |
Accounts Payable To Selling Shareholders [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial liabilities, at carrying amount | 566,867 | 528,678 |
Financial liabilities, at fair value | 566,867 | 528,678 |
Notes Payable [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial liabilities, at carrying amount | 62,176 | |
Financial liabilities, at fair value | 62,176 | |
Trade receivables [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets, at carrying amount | 39,485 | 42,568 |
Financial assets, at fair value | R$ 39485 | R$ 42568 |
Financial assets and financi_11
Financial assets and financial liabilities (Details 8) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Balance as of ending | R$ 39485 | R$ 42568 |
Base rate | (131,748) | |
Floating interest rate [member] | Interest rate risk [member] | Loans And Financing [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance as of ending | R$ 529340 | |
Index - % per year | CDI + 1.8% | |
Base rate | R$ 71196 | |
Floating interest rate [member] | Interest rate risk [member] | Loans And Financing One [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance as of ending | R$ 412880 | |
Index - % per year | CDI + 1.9% | |
Base rate | R$ 55945 | |
Floating interest rate [member] | Interest rate risk [member] | Loans And Financing Two [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance as of ending | R$ 11193 | |
Index - % per year | TJLP | |
Base rate | R$ 733 | |
Floating interest rate [member] | Interest rate risk [member] | Loans And Financing Three [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance as of ending | R$ 21405 | |
Index - % per year | CDI + 1.75% | |
Base rate | R$ 2868 | |
Floating interest rate [member] | Interest rate risk [member] | Accounts Payable To Selling Shareholders One [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance as of ending | R$ 274428 | |
Index - % per year | CDI | |
Base rate | R$ 31971 | |
Floating interest rate [member] | Interest rate risk [member] | Accounts Payable To Selling Shareholders Two [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance as of ending | R$ 256488 | |
Index - % per year | SELIC | |
Base rate | R$ 29881 | |
Floating interest rate [member] | Interest rate risk [member] | Cash Equivalents [member] | Increase in basis points +75 [member] | ||
IfrsStatementLineItems [Line Items] | ||
Effect on profit before tax | (7,407) | |
Floating interest rate [member] | Interest rate risk [member] | Cash Equivalents [member] | Increase in basis points +150 [member] | ||
IfrsStatementLineItems [Line Items] | ||
Effect on profit before tax | (14,814) | |
Cash Equivalents [member] | Floating interest rate [member] | Interest rate risk [member] | ||
IfrsStatementLineItems [Line Items] | ||
Balance as of ending | R$ 518111 | |
Index - % per year | 100.8% of CDI | |
Base rate | R$ 60846 |
Financial assets and financi_12
Financial assets and financial liabilities (Details 9) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Cash and cash equivalents | R$ 540052 | R$ 344520 | R$ 296480 |
Exposure [member] | Currency risk [member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash and cash equivalents | 23,173 | ||
Increase in Foreign Currency Sensitivity +10% [member] | Currency risk [member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash and cash equivalents | 2,317 | ||
Decrease in Foreign Currency Sensitivity -10% [member] | Currency risk [member] | |||
IfrsStatementLineItems [Line Items] | |||
Cash and cash equivalents | R$ 2317 |
Financial assets and financi_13
Financial assets and financial liabilities (Details 10) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||||
Loans and financing | R$ 1800775 | R$ 1882901 | ||
Lease liabilities | 874,569 | 769,525 | R$ 714085 | R$ 447703 |
Accounts payable to selling shareholders | 566,867 | 528,678 | ||
Liquidity risk [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Trade payables | 108,222 | 71,482 | ||
Loans and financing | 2,250,562 | 2,313,530 | ||
Lease liabilities | 1,923,128 | 1,711,092 | ||
Accounts payable to selling shareholders | 619,171 | 621,762 | ||
Notes payable | 62,176 | |||
Advances from customers | 153,485 | 133,050 | ||
Financial liabilities contractual undiscounted | 5,054,568 | 4,913,092 | ||
Later than one year [member] | Liquidity risk [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Trade payables | 108,222 | 71,482 | ||
Loans and financing | 298,981 | 287,741 | ||
Lease liabilities | 137,735 | 117,506 | ||
Accounts payable to selling shareholders | 387,693 | 282,481 | ||
Notes payable | 62,176 | |||
Advances from customers | 153,485 | 133,050 | ||
Financial liabilities contractual undiscounted | 1,086,116 | 954,436 | ||
Later than one year and not later than three years [member] | Liquidity risk [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Trade payables | ||||
Loans and financing | 1,383,255 | 788,190 | ||
Lease liabilities | 268,724 | 234,688 | ||
Accounts payable to selling shareholders | 231,478 | 339,281 | ||
Notes payable | ||||
Advances from customers | ||||
Financial liabilities contractual undiscounted | 1,883,457 | 1,362,159 | ||
Later than three years and not later than five years [member] | Liquidity risk [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Trade payables | ||||
Loans and financing | 568,326 | 1,237,599 | ||
Lease liabilities | 255,456 | 219,127 | ||
Accounts payable to selling shareholders | ||||
Notes payable | ||||
Advances from customers | ||||
Financial liabilities contractual undiscounted | 823,782 | 1,456,726 | ||
Later than five years [member] | Liquidity risk [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Trade payables | ||||
Loans and financing | ||||
Lease liabilities | 1,261,213 | 1,139,771 | ||
Accounts payable to selling shareholders | ||||
Notes payable | ||||
Advances from customers | ||||
Financial liabilities contractual undiscounted | R$ 1261213 | R$ 1139771 |
Financial assets and financi_14
Financial assets and financial liabilities (Details 11) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Liabilities arising from financing activities, beginning | R$ 2652426 | R$ 2088961 | R$ 1065188 |
Payments of principal | (162,853) | (50,038) | (146,489) |
Payments of interest | (279,800) | (201,588) | (117,986) |
Addition | 101,753 | 617,494 | 986,838 |
Interest | 298,527 | 216,130 | 136,121 |
Business combination | 65,408 | 176,105 | |
Other | (117) | (18,533) | (10,816) |
Liabilities arising from financing activities, ending | 2,675,344 | 2,652,426 | 2,088,961 |
Loans And Financing [member] | |||
IfrsStatementLineItems [Line Items] | |||
Liabilities arising from financing activities, beginning | 1,882,901 | 1,374,876 | 617,485 |
Payments of principal | (112,630) | (1,791) | (107,766) |
Payments of interest | (175,889) | (116,587) | (50,310) |
Addition | 5,288 | 496,885 | 809,539 |
Interest | 197,678 | 127,559 | 68,909 |
Business combination | 36,591 | ||
Other | 3,427 | 1,959 | 428 |
Liabilities arising from financing activities, ending | 1,800,775 | 1,882,901 | 1,374,876 |
Lease liabilities [member] | |||
IfrsStatementLineItems [Line Items] | |||
Liabilities arising from financing activities, beginning | 769,525 | 714,085 | 447,703 |
Payments of principal | (31,473) | (28,511) | (20,075) |
Payments of interest | (103,911) | (85,001) | (67,676) |
Addition | 77,715 | 100,873 | 158,651 |
Interest | 100,849 | 88,571 | 67,212 |
Business combination | 65,408 | 139,514 | |
Other | (3,544) | (20,492) | (11,244) |
Liabilities arising from financing activities, ending | 874,569 | 769,525 | 714,085 |
Dividends Payable [member] | |||
IfrsStatementLineItems [Line Items] | |||
Payments of principal | (18,750) | (19,736) | (18,648) |
Payments of interest | |||
Addition | R$ 18750 | R$ 19736 | R$ 18648 |
Financial assets and financi_15
Financial assets and financial liabilities (Details Narrative) R$ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Jan. 02, 2023 BRL (R$) | Apr. 05, 2022 BRL (R$) | Mar. 23, 2022 BRL (R$) | Mar. 04, 2022 BRL (R$) | Nov. 05, 2021 BRL (R$) | Oct. 02, 2021 BRL (R$) | Aug. 04, 2021 BRL (R$) | May 13, 2021 BRL (R$) | Apr. 08, 2021 BRL (R$) | Nov. 09, 2020 BRL (R$) | May 05, 2020 BRL (R$) | May 09, 2019 BRL (R$) | Feb. 01, 2023 BRL (R$) | Jan. 31, 2020 BRL (R$) | Dec. 31, 2023 BRL (R$) Number | Dec. 31, 2022 BRL (R$) | Dec. 31, 2021 BRL (R$) | Feb. 29, 2024 BRL (R$) | Feb. 28, 2023 BRL (R$) | May 23, 2022 BRL (R$) | Feb. 28, 2022 BRL (R$) | Feb. 28, 2021 BRL (R$) | Jan. 31, 2021 BRL (R$) | Feb. 29, 2020 BRL (R$) | |
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Amount recognized lease expense from short-term leases and low-value assets | R$ 10871 | R$ 12153 | R$ 11229 | |||||||||||||||||||||
Adjustment for purchase consideration | 99,399 | R$ 1234460 | ||||||||||||||||||||||
Currency risk [member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Exposure risk | R$ 23173 | R$ 24447 | ||||||||||||||||||||||
Percentage of sensitivity change in the Euro exchange rate | 10% | |||||||||||||||||||||||
Closing foreign exchange rate | Number | 4.8413 | |||||||||||||||||||||||
Currency risk [member] | Euro Member Countries, Euro | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Closing foreign exchange rate | Number | 1 | |||||||||||||||||||||||
Institutode Pesquisae Ensino Medicodo Estadode Minas Gerais Ltda [member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Ownership Interest | 100% | |||||||||||||||||||||||
Remaining accounts payable | R$ 45303 | |||||||||||||||||||||||
Equal installments payables | R$ 9061 | R$ 9061 | R$ 9061 | R$ 9061 | R$ 9061 | |||||||||||||||||||
Uni Redentor [member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Ownership Interest | 100% | |||||||||||||||||||||||
Remaining accounts payable | R$ 100000 | |||||||||||||||||||||||
Equal installments payables | R$ 4503 | |||||||||||||||||||||||
Uni S L [Member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Ownership Interest | 100% | |||||||||||||||||||||||
Remaining accounts payable | R$ 60456 | |||||||||||||||||||||||
Equal installments payables | R$ 7816 | |||||||||||||||||||||||
FCMPB [member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Ownership Interest | 100% | |||||||||||||||||||||||
Remaining accounts payable | R$ 188894 | |||||||||||||||||||||||
Medical Harbour [member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Ownership Interest | 100% | |||||||||||||||||||||||
Remaining accounts payable | R$ 9000 | |||||||||||||||||||||||
Defined benefit obligation | R$ 3000 | |||||||||||||||||||||||
Shosp [member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Ownership Interest | 100% | |||||||||||||||||||||||
Remaining accounts payable | R$ 513 | |||||||||||||||||||||||
Transaction price allocated to remaining performance obligations | R$ 454 | |||||||||||||||||||||||
Unigranrio [member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Ownership Interest | 100% | |||||||||||||||||||||||
Non-current payables for purchase of energy | R$ 618956 | |||||||||||||||||||||||
RXPRO [member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Ownership Interest | 100% | |||||||||||||||||||||||
Remaining accounts payable | R$ 21000 | |||||||||||||||||||||||
Transaction price allocated to remaining performance obligations | R$ 1781 | |||||||||||||||||||||||
I T P A C Garanhuns [Member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Ownership Interest | 100% | |||||||||||||||||||||||
Remaining accounts payable | R$ 54000 | |||||||||||||||||||||||
Transaction price allocated to remaining performance obligations | R$ 54000 | |||||||||||||||||||||||
Alem Da Medicina [member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Ownership Interest | 100% | |||||||||||||||||||||||
Remaining accounts payable | R$ 19200 | |||||||||||||||||||||||
Equal installments payables | 763 | |||||||||||||||||||||||
Defined benefit obligation | 18,325 | |||||||||||||||||||||||
Consideration to be transferred | R$ 763 | |||||||||||||||||||||||
Cardio Papers [Member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Ownership Interest | 100% | |||||||||||||||||||||||
Remaining accounts payable | R$ 15000 | |||||||||||||||||||||||
Equal installments payables | 333 | |||||||||||||||||||||||
Defined benefit obligation | 14,173 | |||||||||||||||||||||||
Consideration to be transferred | R$ 333 | |||||||||||||||||||||||
Glic [member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Ownership Interest | 100% | |||||||||||||||||||||||
Remaining accounts payable | R$ 12000 | |||||||||||||||||||||||
Defined benefit obligation | 9,520 | |||||||||||||||||||||||
Remaining balance paid | R$ 3000 | |||||||||||||||||||||||
Consideration to be transferred | ||||||||||||||||||||||||
Del Rey [Member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Ownership Interest | 100% | |||||||||||||||||||||||
Transaction price allocated to remaining performance obligations | R$ 575000 | |||||||||||||||||||||||
Non-current payables for purchase of energy | 816,236 | |||||||||||||||||||||||
Consideration to be transferred | 234,000 | |||||||||||||||||||||||
Adjustment for purchase consideration | R$ 16000 | |||||||||||||||||||||||
First annual installment | 134,000 | |||||||||||||||||||||||
Second annual installment | 50,000 | |||||||||||||||||||||||
Third annual installment | 50,000 | |||||||||||||||||||||||
Fair value at the date of acquisition | R$ 7236 | |||||||||||||||||||||||
Bottom of range [member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Contractual lease term | 5 years | |||||||||||||||||||||||
Top of range [member] | ||||||||||||||||||||||||
IfrsStatementLineItems [Line Items] | ||||||||||||||||||||||||
Contractual lease term | 30 years |
Fair value measurement (Details
Fair value measurement (Details) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Trade receivable (non-current) | R$ 39485 | R$ 42568 |
Loans and financing | (1,795,752) | (1,934,295) |
Lease liabilities | (874,569) | (769,525) |
Accounts payable to selling shareholders | (566,867) | (528,678) |
Notes payable | (62,176) | |
Level 2 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivable (non-current) | 39,485 | 42,568 |
Loans and financing | (1,795,752) | (1,934,295) |
Lease liabilities | (874,569) | (769,525) |
Accounts payable to selling shareholders | (566,867) | (528,678) |
Notes payable | (62,176) | |
Level 3 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivable (non-current) | ||
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivable (non-current) |
Labor and social obligations (D
Labor and social obligations (Details) - Incremental Stock Options [Member] R$ / shares in Units, R$ in Thousands | 12 Months Ended |
Dec. 31, 2023 BRL (R$) R$ / shares | |
Modified Plan [member] | |
IfrsStatementLineItems [Line Items] | |
Strike price at the measurement date | R$ | R$ 83 |
Expected volatility | 0% |
Share price at the measurement date | R$ 48 |
Model used | Binomial |
Weighted average fair value at the measurement date | R$ 53.06 |
Modified Plan [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Expected volatility | 48% |
Risk-free interest rate | 13% |
Expected life of stock options | 1 year |
Modified Plan [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Expected volatility | 59% |
Risk-free interest rate | 15% |
Expected life of stock options | 4 years |
Original Plan [member] | |
IfrsStatementLineItems [Line Items] | |
Expected volatility | 0% |
Share price at the measurement date | R$ 48 |
Model used | Binomial |
Weighted average fair value at the measurement date | R$ 49.22 |
Original Plan [member] | Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Strike price at the measurement date | R$ | R$ 91 |
Expected volatility | 48% |
Risk-free interest rate | 13% |
Expected life of stock options | 1 year |
Original Plan [member] | Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Strike price at the measurement date | R$ | R$ 140 |
Expected volatility | 59% |
Risk-free interest rate | 15% |
Expected life of stock options | 4 years |
Labor and social obligations _2
Labor and social obligations (Details 1) - Modified Plan [member] - R S Us [Member] R$ / shares in Units, R$ in Thousands | 12 Months Ended |
Dec. 31, 2023 BRL (R$) R$ / shares | |
IfrsStatementLineItems [Line Items] | |
Expected volatility | 0% |
Share price at the measurement date | R$ / shares | R$ 75 |
Model used | Binomial |
Weighted average fair value at the measurement date | R$ / shares | R$ 0.12 |
Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Strike price at the measurement date | R$ | R$ 95 |
Expected volatility | 45% |
Risk-free interest rate | 10% |
Expected life of stock options | 1 year |
Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Strike price at the measurement date | R$ | R$ 160 |
Expected volatility | 48% |
Risk-free interest rate | 12% |
Expected life of stock options | 5 years |
Labor and social obligations _3
Labor and social obligations (Details 2) R$ / shares in Units, R$ in Thousands | 12 Months Ended |
Dec. 31, 2023 BRL (R$) R$ / shares | |
Modified Plan [member] | I P C A [Member] | |
IfrsStatementLineItems [Line Items] | |
Expected volatility | 0% |
Expected life of stock options | 5 years |
Share price at the measurement date | R$ / shares | R$ 75 |
Model used | Binomial |
Weighted average fair value at the measurement date | R$ / shares | R$ 28.10 |
Modified Plan [member] | Bottom of range [member] | I P C A [Member] | |
IfrsStatementLineItems [Line Items] | |
Strike price at the measurement date | R$ | R$ 59 |
Expected volatility | 45% |
Risk-free interest rate | 10% |
Modified Plan [member] | Top of range [member] | I P C A [Member] | |
IfrsStatementLineItems [Line Items] | |
Strike price at the measurement date | R$ | R$ 104 |
Expected volatility | 54% |
Risk-free interest rate | 12% |
Original Plan [member] | C D I [Member] | |
IfrsStatementLineItems [Line Items] | |
Expected volatility | 0% |
Expected life of stock options | 5 years |
Share price at the measurement date | R$ / shares | R$ 75 |
Model used | Binomial |
Weighted average fair value at the measurement date | R$ / shares | R$ 26.00 |
Original Plan [member] | Bottom of range [member] | C D I [Member] | |
IfrsStatementLineItems [Line Items] | |
Strike price at the measurement date | R$ | R$ 59 |
Expected volatility | 45% |
Risk-free interest rate | 10% |
Original Plan [member] | Top of range [member] | C D I [Member] | |
IfrsStatementLineItems [Line Items] | |
Strike price at the measurement date | R$ | R$ 104 |
Expected volatility | 54% |
Risk-free interest rate | 12% |
Labor and social obligations _4
Labor and social obligations (Details 3) - Share options [member] - BRL (R$) R$ / shares in Units, R$ in Thousands | Dec. 01, 2023 | Oct. 01, 2023 | Aug. 01, 2023 | Apr. 17, 2023 | Feb. 13, 2023 |
IfrsStatementLineItems [Line Items] | |||||
Strike price at the measurement date | R$ 60 | R$ 59 | R$ 59 | R$ 57 | R$ 56 |
Expected volatility | 0% | 0% | 0% | 0% | 0% |
Risk-free interest rate | 13% | ||||
Share price at the measurement date | R$ 100.97 | R$ 79.12 | R$ 76.45 | R$ 62.51 | R$ 70.69 |
Model used | Binomial | Binomial | Binomial | Binomial | Binomial |
Weighted average fair value at the measurement date | R$ 54.25 | R$ 38.67 | R$ 37.04 | R$ 32.04 | R$ 29.54 |
Bottom of range [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Expected volatility | 34% | 44% | 47% | 48% | 46% |
Risk-free interest rate | 10% | 11% | 10% | 11% | |
Expected life of stock options | 1 year | 1 year | 1 year | 1 year | 1 year |
Top of range [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Expected volatility | 56% | 56% | 56% | 55% | 56% |
Risk-free interest rate | 11% | 12% | 12% | 13% | |
Expected life of stock options | 5 years | 5 years | 5 years | 5 years | 5 years |
Labor and social obligations _5
Labor and social obligations (Details 4) - Share options [member] | 12 Months Ended | ||
Dec. 31, 2023 Number R$ / shares shares | Dec. 31, 2022 Number R$ / shares shares | Dec. 31, 2021 Number shares | |
IfrsStatementLineItems [Line Items] | |||
Weighted average exercise price (in Reais), Outstanding at the beginning | R$ 79.47 | ||
Number of stock options, Outstanding at the beginning | Number | 3,729,287 | 3,086,728 | 2,510,983 |
Weighted average exercise price (in Reais), Granted | R$ 60.83 | ||
Number of stock options, Granted | Number | 467,000 | 1,234,919 | 1,170,000 |
Weighted average exercise price (in Reais), Exercised | R$ 59.67 | ||
Number of stock options, Exercised | Number | (164,214) | (442,669) | |
Weighted average exercise price (in Reais), Stock options exchanged | |||
Number of stock options, Stock options exchanged | Number | (1,751,599) | ||
Weighted average exercise price (in Reais), Forfeited | R$ 110.95 | ||
Number of stock options, Forfeited | Number | (333,111) | (365,749) | (60,000) |
Weighted average exercise price (in Reais), Expired | R$ 94.17 | ||
Number of stock options, Expired | Number | (251,299) | (226,611) | (91,586) |
Weighted average exercise price (in Reais), Outstanding at the ending | R$ 64.33 | R$ 79.47 | |
Number of stock options, Outstanding at the ending | Number | 1,696,064 | 3,729,287 | 3,086,728 |
Weighted average exercise price (in Reais), Exercisable | R$ 86.23 | ||
Number of stock options, Exercisable | shares | 242,235 | 1,133,774 | 542,061 |
Labor and social obligations _6
Labor and social obligations (Details 5) - Restricted stock units [member] - Number | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Number of stock options, Outstanding at the beginning | 447,224 | |
Number of stock options, Granted | 317,090 | 447,224 |
Number of stock options, Stock options exchanged | 215,797 | |
Number of stock options, Exercised | (99,576) | |
Number of stock options, Forfeited | (26,104) | |
Number of stock options, Outstanding at the ending | 854,431 | 447,224 |
Labor and social obligations _7
Labor and social obligations (Details Narrative) R$ / shares in Units, R$ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||
Dec. 01, 2023 Number R$ / shares shares | Oct. 01, 2023 Number R$ / shares shares | Aug. 01, 2023 Number R$ / shares shares | Apr. 17, 2023 Number R$ / shares shares | Feb. 13, 2023 Number | Feb. 02, 2023 R$ / shares shares | Jul. 08, 2022 R$ / shares | Sep. 30, 2022 R$ / shares shares | Jul. 31, 2022 R$ / shares shares | Jul. 29, 2020 R$ / shares | Dec. 31, 2023 BRL (R$) Number R$ / shares | Dec. 31, 2022 BRL (R$) Number | Dec. 31, 2021 BRL (R$) | |
IfrsStatementLineItems [Line Items] | |||||||||||||
Compensation of employees | R$ 22185 | R$ 24248 | R$ 25587 | ||||||||||
Strike price | R$ / shares | R$ 71.22 | R$ 71.22 | |||||||||||
Average incremental fair value | R$ / shares | R$ 3.84 | ||||||||||||
Granted | shares | 76,600 | 63,000 | 153,490 | 16,000 | 8,000 | 4,678 | 442,546 | ||||||
Fair values at grant date | R$ / shares | R$ 100.97 | R$ 79.12 | R$ 76.45 | R$ 62.51 | R$ 70.69 | R$ 72.59 | R$ 48.24 | ||||||
social obligations liabilities | R$ 7171 | 2,167 | |||||||||||
Share based compensation plans [member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Share-based compensation expense | R$ 20850 | R$ 27242 | R$ 43377 | ||||||||||
Restricted stock units [member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of stock option granted | Number | 317,090 | 447,224 | |||||||||||
Share-based compensation expense | R$ 10685 | R$ 4032 | |||||||||||
Options Granted [Member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Number of stock option granted | Number | 232,000 | 37,000 | 153,000 | 30,000 | 15,000 | ||||||||
Restricted stock units [member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Proportion percentage | 10% | ||||||||||||
Restricted stock units 1 [member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Proportion percentage | 20% | ||||||||||||
Restricted stock units 2 [member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Proportion percentage | 30% | ||||||||||||
Restricted stock units 3 [member] | |||||||||||||
IfrsStatementLineItems [Line Items] | |||||||||||||
Proportion percentage | 40% |
Equity (Details)
Equity (Details) - R$ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Equity Abstract | |||
Number of shares, Outstanding, at beginning balance | 3,786,285 | 1,654,927 | |
Average price, at beginning balance | R$ 80.54 | R$ 92.23 | |
Number of shares, Repurchased | 216,339 | 2,131,358 | 2,142,051 |
Average price repurchased | R$ 57.17 | R$ 71.46 | R$ 119.99 |
Number of treasury shares, delivered under the share-based compensation plan | (229,146) | ||
Average price, delivered under the share-based compensation plan | R$ 79.28 | ||
Number of shares, Transferred from exercise of stock options | (442,669) | ||
Average price transferred from exercise of stock options | R$ 124.26 | ||
Number of shares, Transferred from shares contribution | (44,455) | ||
Average price transferred from shares contribution | R$ 111.94 | ||
Number of shares, Outstanding, at ending balance | 3,773,478 | 3,786,285 | 1,654,927 |
Average price, at ending balance | R$ 79.28 | R$ 80.54 | R$ 92.23 |
Equity (Details Narrative)
Equity (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 24, 2023 | Jan. 27, 2022 | Oct. 27, 2021 | |
IfrsStatementLineItems [Line Items] | ||||||
Share capital | R$ 17 | R$ 17 | ||||
Total number of shares | 93,722,831 | 93,722,831 | ||||
Authorized capital | R$ 50 | R$ 50 | ||||
Payment of dividends | 65,539 | 66,828 | R$ 65521 | |||
Dividend distributed | 46,788 | 47,092 | 46,873 | |||
Dividends paid to non-controlling interests | 18,750 | 19,736 | 18,648 | |||
Cash outflow | R$ 12369 | R$ 152317 | R$ 213722 | |||
Class A Ordinary Shares [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Total number of shares | 47,920,068 | 47,920,068 | ||||
Repurchase of ordinary shares | 2,000,000 | 1,874,457 | 1,383,108 | |||
Class B Ordinary Shares [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Total number of shares | 45,802,763 | 45,802,763 |
Earnings per share (EPS) (Detai
Earnings per share (EPS) (Details) - BRL (R$) R$ / shares in Units, R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator | |||
Net income attributable to equity holders of the parent | R$ 386324 | R$ 373569 | R$ 223326 |
Denominator | |||
Weighted average number of outstanding shares | 89,830,351 | 90,335,037 | 93,291,480 |
Effects of dilution from stock options and restricted share units | 706,492 | 329,085 | 811,818 |
Weighted average number of outstanding shares adjusted for the effect of dilution | 90,536,843 | 90,664,122 | 94,103,298 |
Basic earnings per share (R$) | R$ 4.30 | R$ 4.14 | R$ 2.39 |
Diluted earnings per share (R$) | R$ 4.27 | R$ 4.12 | R$ 2.37 |
Revenue (Details)
Revenue (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Notes and other explanatory information [abstract] | |||
Tuition fees | R$ 3505250 | R$ 2827567 | R$ 2124589 |
Other | 263,937 | 213,040 | 167,441 |
Deductions | |||
Discount and scholarships | (240,314) | (241,404) | (229,254) |
Early payment discounts | (195,054) | (92,234) | (49,879) |
Returns | (27,743) | (45,402) | (42,373) |
Taxes | (142,825) | (107,004) | (74,232) |
PROUNI | (287,338) | (225,506) | (176,921) |
Revenue from contracts with customers | 2,875,913 | 2,329,057 | 1,719,371 |
Tuition, digital content and app subscription fees - Transferred over time | 2,821,251 | 2,273,578 | 1,640,889 |
Other - Transferred at a point in time | R$ 54662 | R$ 55479 | R$ 78482 |
Revenue (Details 1)
Revenue (Details 1) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Types of services or goods | R$ 2875913 | R$ 2329057 | R$ 1719371 |
Tuition fees | 2,640,598 | 2,131,776 | 1,559,094 |
Other | 235,315 | 197,281 | 160,277 |
Timing of revenue recognition | 2,875,913 | 2,329,057 | 1,719,371 |
Transferred over time | 2,821,251 | 2,273,578 | 1,640,889 |
Transferred at a point in time | 54,662 | 55,479 | 78,482 |
Undergrad [member] | |||
IfrsStatementLineItems [Line Items] | |||
Types of services or goods | 2,511,018 | 2,037,889 | 1,498,408 |
Tuition fees | 2,494,121 | 2,023,128 | 1,486,111 |
Other | 16,897 | 14,761 | 12,297 |
Timing of revenue recognition | 2,511,018 | 2,037,889 | 1,498,408 |
Transferred over time | 2,494,121 | 2,024,373 | 1,486,111 |
Transferred at a point in time | 16,897 | 13,516 | 12,297 |
Continuing Education [member] | |||
IfrsStatementLineItems [Line Items] | |||
Types of services or goods | 146,827 | 108,806 | 72,983 |
Tuition fees | 146,477 | 108,648 | 72,983 |
Other | 350 | 158 | |
Timing of revenue recognition | 146,827 | 108,806 | 72,983 |
Transferred over time | 146,827 | 108,806 | 72,983 |
Transferred at a point in time | |||
Digital Services [member] | |||
IfrsStatementLineItems [Line Items] | |||
Types of services or goods | 229,285 | 189,984 | 151,958 |
Tuition fees | |||
Other | 229,285 | 189,984 | 151,958 |
Timing of revenue recognition | 229,285 | 189,984 | 151,958 |
Transferred over time | 191,520 | 145,939 | 81,795 |
Transferred at a point in time | 37,765 | 44,045 | 70,163 |
Elimination (inter-segment transactions) [member] | |||
IfrsStatementLineItems [Line Items] | |||
Types of services or goods | (11,217) | (7,622) | (3,978) |
Tuition fees | |||
Other | (11,217) | (7,622) | (3,978) |
Timing of revenue recognition | (11,217) | (7,622) | (3,978) |
Transferred over time | (11,217) | (5,540) | |
Transferred at a point in time | R$ 2082 | R$ 3978 |
Expenses and costs by nature (D
Expenses and costs by nature (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Notes and other explanatory information [abstract] | |||
Cost of services | R$ 1109813 | R$ 859552 | R$ 652300 |
Selling, general and administrative expenses | (1,014,684) | (798,153) | (622,615) |
Total | (2,124,497) | (1,657,705) | (1,274,915) |
Payroll | (1,085,144) | (880,664) | (677,564) |
Hospital and medical agreements | (86,151) | (66,065) | (37,449) |
Depreciation and amortization | (289,511) | (206,220) | (154,220) |
Lease expenses | (10,871) | (12,153) | (11,229) |
Utilities | (20,403) | (17,682) | (10,643) |
Maintenance | (105,919) | (76,475) | (47,141) |
Share-based compensation | (31,535) | (31,274) | (43,377) |
Tax expenses | (14,447) | (10,518) | (7,997) |
Pedagogical services | (64,081) | (48,084) | (47,881) |
Sales and marketing | (74,140) | (48,217) | (39,506) |
Allowance for expected credit losses | (74,552) | (42,708) | (47,819) |
Travel expenses | (16,098) | (14,003) | (7,542) |
Consulting fees | (62,630) | (35,326) | (38,818) |
Other | (189,015) | (168,316) | (103,729) |
Total | R$ 2124497 | R$ 1657705 | R$ 1274915 |
Finance result (Details)
Finance result (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Notes and other explanatory information [abstract] | |||
Income from financial investments | R$ 73672 | R$ 67810 | R$ 35773 |
Interest received | 33,450 | 27,197 | 23,040 |
Other | 3,520 | 7,035 | 5,753 |
Finance income | 110,642 | 102,042 | 64,566 |
Interest expense | (285,447) | (200,081) | (108,437) |
Interest expense on lease liabilities | (100,849) | (88,571) | (67,212) |
Financial discounts granted | (30,891) | (24,092) | (23,193) |
Bank fees | (7,163) | (8,623) | (7,878) |
Foreign exchange loss, net | (681) | (852) | (17,973) |
IOF taxes (taxes on financial transactions) | (1,947) | (178) | (3,306) |
Other | (30,638) | (27,496) | (15,797) |
Finance expenses | (457,616) | (349,893) | (243,796) |
Finance result | R$ 346974 | R$ 247851 | R$ 179230 |
Income taxes (Details)
Income taxes (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes | |||
Income before income taxes | R$ 429582 | R$ 428433 | R$ 273462 |
Combined statutory income taxes rate - % | 34% | 34% | 34% |
Income taxes at statutory rates | R$ 146058 | R$ 145667 | R$ 92977 |
Reconciliation adjustments: | |||
Tax effect on loss from entities not subject to taxation | (32,274) | (32,859) | (37,794) |
PROUNI - Fiscal Incentive (i) | 309,952 | 270,062 | 194,830 |
Unrecognized deferred tax assets | (154,062) | (117,377) | (86,233) |
Recognized deferred tax assets | 3,233 | ||
Presumed profit income tax regime effect (ii) | (8,787) | (1,549) | (7,066) |
Permanent adjustments | (4,687) | (12,226) | (6,232) |
Other | 8,517 | 3,939 | 4,293 |
Income taxes expense - current | R$ 24166 | R$ 35677 | R$ 31179 |
Effective rate | 5.62% | 8.33% | 11.40% |
Income taxes (Details Narrative
Income taxes (Details Narrative) - BRL (R$) R$ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
IfrsStatementLineItems [Line Items] | ||
Unrecognized deferred income tax assets | R$ 1211909 | R$ 778080 |
One Subsidiary [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Recognized deferred income tax assets | R$ 9508 |
Insurance contracts and conti_3
Insurance contracts and contingencies (Details) - Legal proceedings contingent liability [member] - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Balance as of beginning of the year | R$ 195854 | R$ 148287 | R$ 53139 |
Business combinations | 152 | 80,252 | |
Additions | 18,336 | 73,909 | 24,744 |
Reversals | (109,981) | (26,342) | (9,848) |
Balance as of ending of the year | 104,361 | 195,854 | 148,287 |
Labour [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance as of beginning of the year | 22,484 | 25,490 | 4,519 |
Business combinations | 64 | 16,597 | |
Additions | 3,424 | 2,300 | 5,418 |
Reversals | (3,251) | (5,306) | (1,044) |
Balance as of ending of the year | 22,721 | 22,484 | 25,490 |
Civil [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance as of beginning of the year | 24,664 | 22,928 | 13,280 |
Business combinations | 88 | 6,017 | |
Additions | 5,875 | 7,911 | 5,101 |
Reversals | (9,327) | (6,175) | (1,470) |
Balance as of ending of the year | 21,300 | 24,664 | 22,928 |
Taxes [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance as of beginning of the year | 148,706 | 99,869 | 35,340 |
Business combinations | 57,638 | ||
Additions | 9,037 | 63,698 | 14,225 |
Reversals | (97,403) | (14,861) | (7,334) |
Balance as of ending of the year | R$ 60340 | R$ 148706 | R$ 99869 |
Insurance contracts and conti_4
Insurance contracts and contingencies (Details 1) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Total | R$ 89671 | R$ 78448 |
Legal proceedings contingent liability [member] | Labour [Member] | Types Of Risk [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 32,683 | 13,914 |
Legal proceedings contingent liability [member] | Civil [Member] | Types Of Risk [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | 51,319 | 59,603 |
Legal proceedings contingent liability [member] | Taxes And Social Security [Member] | Types Of Risk [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total | R$ 5669 | R$ 4931 |
Insurance contracts and conti_5
Insurance contracts and contingencies (Details Narrative) - BRL (R$) R$ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
IfrsStatementLineItems [Line Items] | ||
Judicial deposits | R$ 14187 | R$ 12693 |
Other Assets Non Current [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Judicial deposits | 14,187 | 12,693 |
Contingencies correspondent amount | R$ 81855 | R$ 145300 |
Non-cash transactions (Details)
Non-cash transactions (Details) - BRL (R$) R$ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |||
Remeasurement of earn-out of Alem da Medicina, CardioPapers | R$ 2556 | ||
Provision for legal proceedings with corresponding indemnification asset | 20,000 | 48,333 | 4,232 |
Additions and remeasurements of right-of-use assets and lease liabilities | 77,715 | 100,873 | 158,651 |
I Clinic [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Issuance of shares for acquisition | 71,500 | ||
Cliquefarma [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Issuance of shares for acquisition | 3,000 | ||
RXPRO [member] | |||
IfrsStatementLineItems [Line Items] | |||
Issuance of shares for acquisition | R$ 5112 |
Subsequent event (Details Narra
Subsequent event (Details Narrative) - Faculdades Integradas Padrao [Member] R$ in Thousands | Jan. 24, 2024 BRL (R$) Number |
IfrsStatementLineItems [Line Items] | |
Potential additional payment | R$ | R$ 49600 |
Total number of seats apporved | Number | 3,203 |