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Segment information
 12 Months Ended
Dec. 31, 2023
Notes and other explanatory information [abstract]  
Segment information

 

4Segment 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:

 

           
  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:

 

           
   
  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.