Hapvida corrected its accounting from 2016-2023, leading to a 503 million reais positive impact under CPC 50. However, CPC 11 showed a negative impact of 202 million reais. The company also renegotiated 2.9 billion reais in debt to 1.7 billion reais, impacting results by 470 million reais. Hapvida reported a fourth-quarter profit exceeding expectations.
Hapvida, a Brazilian healthcare operator, announced on Wednesday that it has corrected its accounting practices spanning from 2016 to 2023. These adjustments, compliant with CPC 50 accounting standards, will result in a positive impact of 503 million reais ($89 million) on its net equity for 2024. However, under CPC 11 standards, this correction leads to a negative adjusted equity decrease of 202 million reais.
The necessary corrections involved write-offs of deferred tax liabilities, adjustments to asset values, and recognition of deferred revenue from insurance contracts. In addition to these accounting reforms, Hapvida disclosed its participation in a debt renegotiation program initiated in December, aimed at addressing fines from the regulator ANS and reimbursements owed to Brazil’s public healthcare system.
This debt restructuring allows Hapvida to settle liabilities totaling 2.9 billion reais for a reduced amount of 1.7 billion reais, yielding a net 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 analyst expectations as per data from LSEG.
In summary, Hapvida has undertaken significant accounting adjustments that enhance its financial standing according to CPC 50 guidelines while addressing prior liabilities through a renegotiated debt settlement. These strategic moves have positively influenced its net profit in the recent quarter, indicating a strong recovery and proactive financial management by the firm.
Original Source: www.tradingview.com
