Brazil’s Hapvida makes accounting fixes, renegotiates debt

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SAO PAULO (Reuters) -Brazilian healthcare operator Hapvida said on Wednesday it corrected its accounting methods from 2016 to 2023, positively impacting its 2024 net equity by 503 million reais ($89 million) using CPC 50 accounting standards.

The impact on the company’s net equity, however, was negative, lowering it by 202 million reais when considering CPC 11 accounting standards, according to a securities filing from the firm.

The corrections include write-offs of deferred tax liabilities and judicial deposits, as well as an adjustment to the value of some assets and the recognition of deferred revenue from insurance contracts.

Hapvida also said it joined a debt renegotiation program in December regarding fines to regulator ANS and reimbursements to Brazil’s public health system, settling liabilities worth 2.9 billion reais for 1.7 billion reais.

Hapvida said the move had a net impact of 470 million reais in its results.

The firm posted earlier in the evening a fourth-quarter adjusted net profit of 514.7 million reais, coming in above expectations from analysts polled by LSEG.

($1 = 5.6490 reais)

(Reporting by Andre Romani; Editing by Kylie Madry and David Alire Garcia)