Hapvida’s Accounting Corrections and Debt Renegotiation Yield Positive Outcomes
Hapvida has revised its accounting practices from 2016 to 2023, increasing 2024 net equity by 503 million reais under CPC 50 standards, despite a 202 million reais decrease under CPC 11. The company has renegotiated debt liabilities totaling 2.9 billion reais for 1.7 billion reais, resulting in a net impact of 470 million reais. It reported fourth-quarter adjusted net profits of 514.7 million reais, exceeding analyst expectations.
Hapvida, a Brazilian healthcare operator, announced on Wednesday the correction of accounting practices spanning from 2016 to 2023, using CPC 50 standards. This adjustment is projected to enhance its net equity for 2024 by 503 million reais (approximately $89 million). However, under CPC 11 standards, net equity experienced a reduction of 202 million reais, as indicated in a securities filing from the company.
The corrections addressed various financial elements, including the write-off of deferred tax liabilities, judicial deposits, asset valuation adjustments, and recognition of deferred revenue from insurance contracts. In addition, Hapvida disclosed that it entered a debt renegotiation program in December, addressing fines levied by the ANS regulator and reimbursements owed to the Brazilian public health system. This agreement facilitated the settlement of liabilities amounting to 2.9 billion reais for a reduced total of 1.7 billion reais.
The latest strategic moves are anticipated to have a net positive impact of 470 million reais on the company’s financial results. Furthermore, Hapvida reported an adjusted net profit of 514.7 million reais for the fourth quarter, surpassing analysts’ expectations from LSEG, reflecting the firm’s robust performance in the healthcare sector.
Hapvida’s recent adjustments in accounting practices have led to a significant positive outcome in its equity for the following year. By correcting its financial statements, the company has also successfully engaged in a debt renegotiation that alleviates a substantial portion of its liabilities. The results underscore Hapvida’s continued strength and adaptability within the healthcare industry.
Original Source: www.tradingview.com
