2023-08-10 18:10:48
© Reuters. REUTERS/Marton Monus
By Paula Arend Laier
SÃO PAULO (Reuters) – Shares of Ondontoprev collapsed more than 13% this Thursday, in the first trading session after the disclosure of the quarterly balance sheet, even with a 17.7% increase in net profit in the period from April to June, to 117.2 million reais.
The company also reported expansion of 9.7% in net operating revenue, to 527.7 million reais, while adjusted Ebitda grew 2.8%, to 147.5 million reais. The adjusted Ebitda margin, however, fell from 29.8% to 27.9%.
The loss ratio stood at 41.3% compared to 42.1% in the same period of 2022, with the corporate segment showing an increase of 2 percentage points, to 53.6%, while that of small and medium-sized companies increased by 2. 4 points to 30.1%.
At 1:01 pm, the shares retreated 6.76%, to 11.73 reais, among the worst performers of the Small Caps index, which rose 0.31%. At the lowest so far, they reached 10.91 reais (-13.28%).
Citi’s analyst team considered the numbers weak, with good revenue trends offset by recurring DLR (Dental Loss Ratio) recovery and rising expenses.
Analysts wrote in a report to clients that, without the reversal, the consolidated loss ratio would have been 42.4%.
“Furthermore, we remain somewhat puzzled by the low DLR of the individual plans, even excluding the one-time impact of provision reversals, which, to be fair, appears to be explained by a positive mix impact,” they stated.
Analysts at JPMorgan (NYSE:) also assessed that Odontoprev (BVMF:) reported weaker results than expected for the second quarter, in a performance marked by the continued normalization of claims and higher corporate expenses.
But they stressed that the net additions, of 156 thousand lives, was a positive point, making the number in 12 months reach 294 thousand beneficiaries.
For the analyst at Guide Investimentos Mateus Haag, Odontoprev released good results in the second quarter, but the numbers were a little below the high expectations of investors.
Haag pointed out that the company maintained good growth in the beneficiary base, in addition to having maintained a healthy mix of corporate and individual clients, while the loss ratio remained low – lower than the historical average.
“However, profitability has been eroded by costs and expenses, which should disappoint investors,” he added in a report sent to clients.
#Ondontoprev #drops #result #Reuters