(Bloomberg) -- Brazilian health-care company Diagnosticos das Americas SA is slashing investment and trimming expenses to reduce indebtedness, while sharpening its focus on its core business of operating medical laboratories and diagnostic centers.
Dasa, as the company is known, reported that third-quarter Ebitda, a measure of earnings that excludes items such as taxes and depreciation, rose 14% to 751 million reais ($129.5 million). Its ratio of net debt to Ebitda was stable from the previous quarter at 3.5 times.
The company reduced investment by 19% in the third quarter from a year earlier. Technology was the area of operations most affected, with capital expenditures there falling 36%.
Dasa has been selling off assets after the cost of servicing its debt spiked due to higher interest rates. The company took on debt in 2020 to acquire hospitals and labs. It also bought competitors Grupo Exame and Hemat, and is now looking to streamline operations across its divisions.
As part of its turnaround plan, it formed a joint venture with Amil Participacoes SA, a competitor owned by UnitedHealth Group Inc., in June. Amil is injecting capital into the new entity, known as Ímpar, and transferring the operation of 11 hospitals to it.
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