Hapvida and Azzas report disappointing quarterly financial results

Hapvida shares fell by more than 20% following the release of its second-quarter 2026 results. CEO Luccas Adib attributed the poor performance largely to judicialization, noting that the company’s legal management model failed to keep pace with the increasing number of legal disputes, which drove up costs. Other contributing factors included high medical claim rates, unfavorable economic contracts, high debt, and a loss of beneficiaries.

Separately, Azzas reported a decline in revenue and profit for the second quarter. Gross revenue fell 7.1% to R$3.4 billion, while net profit dropped 62.5% compared to the previous year. CEO Alexandre Birman described the results as a “painful process” caused by necessary inventory adjustments within the footwear and bag franchise channels. The company is focusing on balancing sell-in and sell-out rates to achieve sustainable growth.