SÃO PAULO,
HIGHLIGHTS
- Revenue from subscription products ex-PAR jumped 20% in the 4Q20 and 1Q21 combined (2021 commercial year to date), in comparison to the same period of last year. This increase is slightly below the 23% growth in ACV, owing to the lower number of students at partner schools due to the Covid-19 effects.
- The PAR learning system, which is based on textbooks, was more impacted than non-textbook products due to the reuse of textbooks by families, and its revenue decreased 16% in the 2021 commercial cycle to date versus last year. In total, revenue from subscription products increased 16% in the same comparison.
- Non-subscription revenue fell 65% in the commercial year to date, explained by the weakness in the textbook chain and by the migration of clients that used to purchase non-subscription products to our subscription services.
- Consolidated net revenue increased 10% in the 2021 commercial year to date, with subscription revenue accounting for 84% of total vs. 64% in the same period last year. In the quarter, consolidated net revenue fell 28%, resulting from 8% drop in subscription revenue and a 70% decline non-subscription revenue.
- Revenue from subscription products in the 1Q21 and in the 2021 commercial year to date amounted to 29% and 62% of 2021 ACV, respectively. Due to the adverse context, we expect the subscription revenue of 2021 commercial year (4Q20 to 3Q21) to be lower than the ACV 2021.
- In the 2021 commercial year to date, the lower net revenue drove a 15% decline in adjusted EBITDA. However, adjusted EBITDA margin expanded 0.9p.p., reflecting the higher participation of revenues from subscription products in the mix, as well as our tight control on costs and expenses. Adjusted net income totaled
R$ 163 million in the 2021 commercial year to date, a 6% increase year-on-year. - Our client base for the 2021 commercial year increased by 456 new clients, with a contract duration that averages more than 3.5 years. Therefore, we are well positioned to capture incremental revenue when our clients recover their student base after the pandemic.
- We highlight a new partnership with Colegio Fibonacci, present for 9 consecutive years among Brazil’s top 10 ranking in the National High School Exam (ENEM). With Fibonacci we will launch a set of new assessment services in Plurall and a new premium learning system in 2022.
- Anglo, our top-notch learning system, had the highest number of approvals in the 2021 admission tests of Brazil’s and LatAm’s best universities, Universidade de São Paulo (USP) and Universidade de
Campinas (Unicamp), according to the Times Higher Education ranking. - Vasta expanded its leadership in terms of top-ranked schools in the 2019 ENEM edition (last available data), with 48% and 51% more schools ranked top-1 or top-3 in their cities, respectively, than the second player.
MESSAGE FROM MANAGEMENT
As we started 2021, at the same time we celebrated the success of our commercial cycle – when we delivered a 23% organic growth in the annual contract value (ACV) –, a second wave of Covid-19 in
The once small decrease in the number of private education students noticed in 2020 (-2.5%, according to Ministry of Education’s basic education census) likely turned into a more pronounced decline, thus leading to a frustration in our partner schools’ expectations on student enrollment, and, consequently, a reduction in the number of collections we supply (exceeding, in many cases, the historical percentage of returns that is embedded in the ACV calculation). This context will likely lead to a gap between the subscription revenue of 2021 commercial year and the ACV 2021.
Like other times in Brazil’s history, the unfavorable macroeconomic backdrop has impaired the sale of textbooks more severely, on the top of the reduction in the student number already commented. In these times, a greater volume of reuse and purchase of second-hand textbooks negatively affects the sale of new ones, and both our PAR learning systems (accounted in the subscription revenue) and the regular sale of textbooks through retail channels (impacting the non-subscription revenue) were hit. In the past, demand always returned when the situation went back to normal, which suggests that these impacts are rather temporary than structural.
That said, the subscription revenue captured in the 4T20 and 1T21 combined (the 2021 commercial year to date) is better understood when we split traditional learning systems and complementary solutions (ex-PAR subscription products) and textbook subscription products (PAR). While revenue of ex-PAR subscription products grew 20% year-on-year in this period, just slightly below the 23% overall ACV growth, PAR revenue declined 16% in the same period. Looking forward, although the impacts on textbook chain may be just transitory, we plan to further intensify the ongoing migration from textbook products (either PAR or spot sales) into learning systems. This strategy will enable us to increase even more the share of subscription revenue into our total revenue (which totaled 84% in the 2021 commercial year to date, versus 64% one year ago) and capture higher margins.
Net revenue breakdown among business lines in the commercial cycle to date, 2021 vs. 2020 (R$ million)
An infographic accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bbe38ab7-b7fc-48dd-a109-da652949ad01
Despite all challenges we have already faced in 2021, we continue to offer our clients a unique digital experience through our Plurall platform (still the absolute leader in terms of web traffic), supporting the continuation of school activities during social isolation times. We have continually expanded the range of solutions offered by Plurall, either via complementary solutions offered through
The results of our students in the most-competitive university admission tests confirm the superior quality of our products. Anglo, our top-notch learning system, had the highest number of student approvals in the admission tests of Brazil’s and LatAm’s best universities, Universidade de São Paulo (USP) and Universidade de
The outcomes of the National High School Exam (ENEM) point in the same direction. In the 2019 edition (which results were disclosed by the end of 2020), Vasta not only maintained the leadership in terms of the number of partner schools that had the highest score in their cities as well as expanded the difference to the competitors. In 2019, Vasta was the content provider for the top-ranked school in 46% more cities than the second player, up from 28% in 2018. Considering the schools that ranked from the first to the third position in their cities, Vasta was the content provider for 51% of schools more than the second player, up from 30% in 2018.
We are also very proud of the NPS we reached in all our brands, showing that both students and partner schools are satisfied with our solutions, as these are the main pillars of our future. The NPS of our brands averaged 72, with Anglo and PAR having scores at the excellence levels (79 and 78, respectively). Plurall had an NPS of 54.
The quality of education, combined with the satisfaction of our clients, led us to increase our client base by more than 450 new schools in the 2021 commercial cycle, with an average contract duration of almost 4 years. Having long-term partnerships with a large portfolio of schools allows us to be well positioned to capture the return of students to private schools after the pandemic. Besides new schools, we highlight a new partnership with Colegio Fibonacci (Vasta’s former client), present for 9 consecutive years among Brazil’s top 10 schools in the National High School Exam (ENEM). With Fibonacci we will also launch a set of new assessment services in Plurall in 2021 and a new premium learning system for the 2022 commercial year, therefore having as a client another school that stands in ENEM top-10 ranking.
COVID-19 UPDATE
As discussed in more detail in our
Related to sales and services provided to our customers, even though municipality and state-wide governments had taken some measures that could hard hit our business, for example school’s lockdown and social distancing, our customers kept their educational services through our virtual platforms. As a result, we have not had interruption in the sales and services levels contracted by our customers.
Despite continuity of educational services, the continuing restrictions on business will affect the Brazilian economic indicators throughout 2021. This increases the level of uncertainty over our operations, and therefore, it is likely that we will identify impacts on our revenue and profitability in the forthcoming quarters.
REVENUE RECOGNITION AND SEASONALITY
As we release our results for the first quarter of 2021, it is important to highlight the revenue recognition and seasonality of our business.
Our main deliveries of printed and digital materials to our customers occur in the last quarter of each year (typically in November and December), and in the first quarter of each subsequent year (typically in February and March), and revenue is recognized when the customers obtain control over the materials. In addition, the printed and digital materials we provide in the fourth quarter are used by our customers in the following school year and, therefore, our fourth quarter results reflect the growth in the number of our students from one school year to the next, leading to higher revenue in general in our fourth quarter compared with the preceding quarters in each year. Consequently, in aggregate, the seasonality of our revenues generally produces higher revenues in the first and fourth quarters of our fiscal year. Thus, the numbers for the second quarter and third quarter are usually less relevant. In addition, we generally bill our customers during the first half of each school year (which starts in January), which generally results in a higher cash position in the first half of each year compared to the second half.
A significant part of our expenses is also seasonal. Due to the nature of our business cycle, we need significant working capital, typically in September or October of each year, to cover costs related to production and inventory accumulation, selling and marketing expenses, and delivery of our teaching materials at the end of each year in preparation for the beginning of each school year. As a result, these operating expenses are generally incurred between September and December of each year.
Purchases through our Livro Fácil e-commerce platform are also very intense during the back-to-school period, between November, when school enrollment takes place and families plan to anticipate the purchase of products and services, and February of the following year, when classes are about to start. Thus, e-commerce revenue is mainly concentrated in the first and fourth quarters of the year.
KEY BUSINESS METRICS
ACV Bookings: ACV Bookings is a non-accounting managerial metric and represents our partner schools’ commitment to pay for our solutions offerings. We believe it is a meaningful indicator of demand for our solutions. We consider ACV Bookings is a helpful metric because it is designed to show amounts that we expect to be recognized as revenue from subscription services for the 12-month period between
OPERATING PERFORMANCE
Student Base – Subscription Models
Student Base | 2021 Cycle | 2020 Cycle | 2019 Cycle | % Chg. 2021 | % Chg. 2020 | |||||||
Partner Schools (Core Content) | 4,623 | 4,167 | 3,400 | 10.9 | % | 22.6 | % | |||||
Partner Schools (Complementary Solutions) | 1,114 | 636 | 417 | 75.2 | % | 52.5 | % | |||||
Students (Core Content) | 1,500,208 | 1,311,147 | 1,185,799 | 14.4 | % | 10.6 | % | |||||
Students (Complementary Solutions) | 348,650 | 213,058 | 133,583 | 63.6 | % | 59.5 | % | |||||
Note: number of students to be updated after the devolution period ends. |
When compared to the 2020 commercial year, 2021 shows strong growth both in the core product and in relation to complementary solutions. Despite all the difficulties related to the pandemic, Vasta managed to add 456 new schools to its platform, which represents an annual increase of 11% and reinforces all the competitive differentials presented throughout the year. The number of students grew even more (+14%) and surpassed the mark of 1.5 million students using our learning systems. Regarding complementary solutions, 478 new schools became our customers, which represents an annual growth of 75%, or 64% if we consider the number of students, which confirms the high potential of this segment. In the second quarter, with the end of devolution period, we will have the definitive number of students enrolled in our partner schools.
FINANCIAL PERFORMANCE
Net Revenue
Net Revenue - Values in R$ '000 | 1Q21 | 1Q20 | % Y/Y | 2021 Cycle | 2020 Cycle | % Y/Y | ||||||||
Subscription | 243.285 | 265.624 | -8.4 | % | 527.135 | 481.522 | 9.5 | % | ||||||
Subscription ex-PAR | 201.035 | 219.760 | -8.5 | % | 410.444 | 342.415 | 19.9 | % | ||||||
Traditional Learning Systems | 169.053 | 187.702 | -9.9 | % | 350.379 | 301.740 | 16.1 | % | ||||||
Complementary Solutions | 31.982 | 32.058 | -0.2 | % | 60.065 | 40.676 | 47.7 | % | ||||||
PAR | 42.249 | 45.864 | -7.9 | % | 116.691 | 139.107 | -16.1 | % | ||||||
Non-subscription | 37.547 | 126.794 | -70.4 | % | 97.258 | 273.743 | -64.5 | % | ||||||
Total | 280.832 | 392.418 | -28.4 | % | 624.393 | 755.266 | -17.3 | % |
Net revenue from subscription products, which includes all educational solutions with recurring revenue (basically learning systems – both traditional and PAR – and complementary solutions), accounted for 87% of the company’s total revenue this quarter and was down 8% over the same period last year, responding for 29% of annual contract value (ACV) for 2021. The drop is explained by the recognition of a greater amount of the ACV in the 4Q20 (33%) and by the lower enrollments at partner schools versus their expectations at the time of the ACV formation. In the 2021 commercial cycle so far (4Q20 and 1Q21 combined), net revenue from subscription products increased 10% year-on-year, fueled by traditional learning systems (up 16%) and complementary solutions (up 48%), and partly offset by a 16% drop in the textbook-based learning system (PAR). Combined, the revenue of traditional learning systems and complementary solutions (ex-PAR subscription products) jumped 20% year-on-year on the commercial cycle to date, slightly below the 23% organic ACV growth reported.
Revenue from non-subscription business was down 70% by comparison with the same period last year, reflecting the impacts of the pandemic in the purchase of textbooks by schools and bookstores during the 2021 back-to-school period, in addition to the migration of former non-subscription clients to our subscription products. In the 2021 commercial cycle to date, revenue from non-subscription business was down 65%, leading to Vasta’s consolidated net revenue to fall 17% versus the same period last year.
Operating Results
Vasta - Values in R$ ('000) | 1Q21 | 1Q20 | Chg.% | 2021 Cycle | 2020 Cycle | Chg.% | ||||||||||||
Gross revenue | 313,831 | 443,636 | -29.3 | % | 670,182 | 832,168 | -19.5 | % | ||||||||||
Deductions from gross revenue | (32,999 | ) | (51,218 | ) | -35.6 | % | (45,788 | ) | (76,902 | ) | -40.5 | % | ||||||
Taxes | (1,596 | ) | (3,382 | ) | -52.8 | % | (3,112 | ) | (4,727 | ) | -34.2 | % | ||||||
Returns | (28,974 | ) | (32,026 | ) | -9.5 | % | (38,960 | ) | (55,046 | ) | -29.2 | % | ||||||
Discounts | (2,430 | ) | (15,810 | ) | -84.6 | % | (3,716 | ) | (17,129 | ) | -78.3 | % | ||||||
Net revenue | 280,832 | 392,418 | -28.4 | % | 624,395 | 755,266 | -17.3 | % | ||||||||||
Cost of services | (113,982 | ) | (167,333 | ) | -31.9 | % | (214,000 | ) | (316,034 | ) | -32.3 | % | ||||||
Gross profit | 166,850 | 225,085 | -25.9 | % | 410,394 | 439,232 | -6.6 | % | ||||||||||
Gross margin | 59.4 | % | 57.4 | % | 2.1 p.p. | 65.7 | % | 58.2 | % | 7.6 p.p. | ||||||||
General and administrative expenses | (98,863 | ) | (85,928 | ) | 15.1 | % | (228,204 | ) | (95,541 | ) | 138.9 | % | ||||||
Impairment losses on trade receivables | (2,609 | ) | (10,319 | ) | -74.7 | % | (14,918 | ) | (10,895 | ) | 36.9 | % | ||||||
Commercial expenses | (49,509 | ) | (37,793 | ) | 31.0 | % | (98,242 | ) | (122,831 | ) | -20.0 | % | ||||||
Corporate expenses | (8,546 | ) | (12,294 | ) | -30.5 | % | (18,460 | ) | (27,780 | ) | -33.6 | % | ||||||
Operating (loss) profit | 7,323 | 78,751 | -90.7 | % | 50,570 | 182,185 | -72.2 | % | ||||||||||
Operating margin | 2.6 | % | 20.1 | % | -17.5 p.p. | 8.1 | % | 24.1 | % | -16.0 p.p. | ||||||||
(+) Depreciation and amortization | 48,585 | 42,150 | 15.3 | % | 93,539 | 75,717 | 23.5 | % | ||||||||||
EBITDA | 55,908 | 120,901 | -53.8 | % | 144,109 | 257,902 | -44.1 | % | ||||||||||
EBITDA margin | 19.9 | % | 30.8 | % | -10.9 p.p. | 23.1 | % | 34.1 | % | -11.1 p.p. | ||||||||
(+) Impact COVID-19 | - | 5,642 | n.a. | 5,916 | 5,642 | n.a. | ||||||||||||
(+) Non-recurring expenses | 4,936 | - | n.a. | 10,451 | - | n.a. | ||||||||||||
(+) Share-based compensation plan | 6,544 | 729 | 797.7 | % | 14,447 | 1,133 | 1175.1 | % | ||||||||||
(+) Provision for risks of tax, civil and labor losses | - | - | n.a. | - | 1,111 | -100.0 | % | |||||||||||
(+) IPO cost | - | - | n.a. | 50,580 | - | n.a. | ||||||||||||
Adjusted EBITDA | 67,388 | 127,272 | -47.1 | % | 225,503 | 265,788 | -15.2 | % | ||||||||||
Adjusted EBITDA margin | 24.0 | % | 32.4 | % | -8.4 p.p. | 36.1 | % | 35.2 | % | 0.9 p.p. |
In 1Q21, adjusted EBITDA declined 47% year-on-year, with a 8.4p.p. compression in the adjusted EBITDA margin, basically due to the 28% drop in net revenue that hurt the dilution of fixed costs/expenses. The increase in G&A expenses observed in the period is related to the more robust administrative structure required after the IPO (part of the incremental expenses are those associated with share-based compensation plan), which in this quarter were partly compensated by lower provisions for doubtful accounts.
In the 2021 commercial year so far, despite the 15% decline in adjusted EBITDA, the adjusted EBITDA margin expanded 0.9p.p., reflecting the higher participation of revenues from subscription products in the mix, combined with a tight control on costs and expenses.
Net Income & Free Cash Flow
In 1Q21 Vasta posted net loss of
Vasta - Values in R$ ('000) | 1Q21 | 1Q20 | Chg.% | 2021 Cycle | 2020 Cycle | Chg.% | ||||||||||||
(Loss) Profit before taxes | (6,929 | ) | 39,137 | -117.7 | % | 24,713 | 100,805 | -75.5 | % | |||||||||
(-) Taxes Paid | - | (5,234 | ) | -100.0 | % | - | (5,234 | ) | -100.0 | % | ||||||||
(+) Impact COVID-19 | - | 5,642 | -100.0 | % | 5,916 | 5,642 | 4.9 | % | ||||||||||
(+) Non-recurring expenses | 4,936 | - | n.a. | 10,451 | - | n.a. | ||||||||||||
(+) Share-based compensation plan | 6,544 | 729 | 797.7 | % | 14,447 | 1,133 | 1175.1 | % | ||||||||||
(+) Provision for risks of tax, civil and labor losses | - | - | n.a. | - | 1,111 | -100.0 | % | |||||||||||
(+) IPO cost | - | - | n.a. | 50,580 | - | n.a. | ||||||||||||
(+) Amortization of intangible assets (1) | 28,300 | 29,881 | -5.3 | % | 56,603 | 49,910 | 13.4 | % | ||||||||||
Adjusted net (loss) profit | 32,851 | 70,155 | -53.2 | % | 162,710 | 153,367 | 6.1 | % | ||||||||||
Adjusted net margin | 11.7 | % | 17.9 | % | -6.2 p.p. | 26.1 | % | 20.3 | % | 5.8 p.p. | ||||||||
(1) From business combinations |
Operating cash flow generation amounted to
Vasta - Values in R$ ('000) | 1Q21 | 1Q20 | Chg.% | 2021 Cycle | 2020 Cycle | Chg.% | ||||||||||||
Net cash flows from operating activities | 55,608 | 84,733 | -34.4 | % | (36,008 | ) | 10,851 | -431.8 | % | |||||||||
(-) Changes in debt-like instruments (1) | - | (66,588 | ) | -100.0 | % | 97,945 | (66,588 | ) | -247.1 | % | ||||||||
(-) Acquisition of property, plant and equipment | (2,481 | ) | (5,234 | ) | -52.6 | % | (393 | ) | (6,234 | ) | -93.7 | % | ||||||
(-) Additions to intangible assets | (9,107 | ) | (6,641 | ) | 37.1 | % | (19,674 | ) | (15,508 | ) | 26.9 | % | ||||||
(-) Lease liabilities paid | (4,977 | ) | (5,979 | ) | -16.8 | % | (8,605 | ) | (16,185 | ) | -46.8 | % | ||||||
Operating Cash Flow (OCF) | 39,043 | 291 | 13316.8 | % | 33,265 | (93,664 | ) | -135.5 | % | |||||||||
OCF/Adjusted EBITDA | 57.9 | % | 0.2 | % | 57.7 p.p. | 14.8 | % | -35.2 | % | 50.0 p.p. | ||||||||
(1) Reverse factoring, booked in the other liabilities account |
CONFERENCE CALL INFORMATION
Vasta will discuss its first quarter 2021 results on
ABOUT VASTA
Vasta is a leading, high-growth education company in
CONTACT
Investor Relations
+55 11 3133 7311
ri@somoseducacao.com.br
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that can be identified by the use of forward-looking words such as “anticipate,” “believe,” “could,” “expect,” “should,” “plan,” “intend,” “estimate” and “potential,” among others. Forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements regarding our intent, belief or current expectations. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements due to of various factors, including (i) general economic, financial, political, demographic and business conditions in
NON-GAAP FINANCIAL MEASURES
This press release presents our EBITDA, Adjusted EBITDA, Free Cash Flow and Adjusted Cash Conversion Ratio, Adjusted Net (Loss) profit are information for the convenience of investors. EBITDA, Adjusted EBITDA, Free Cash Flow and Adjusted Cash Conversion Ratio are the key performance indicators used by us to measure financial operating performance. Our management believes that these Non-GAAP financial measures provide useful information to investors and shareholders. We also use these measures internally to establish budgets and operational goals to manage and monitor our business, evaluate our underlying historical performance and business strategies and to report our results to the board of directors.
We calculate EBITDA as Net profit (loss) for the period / year plus income taxes and social contribution plus/minus net finance result plus depreciation and amortization. The EBITDA measure provides useful information to assess our operational performance.
We calculate Adjusted EBITDA as EBITDA plus/minus: (a) share-based compensation expenses, mainly due to the grant of additional shares to Somos’ employees in connection with the change of control of Somos to Cogna (for further information refer to note 23 (a) to the Consolidated Financial Statements); (b) provision for risks of tax, civil and labor losses regarding penalties, related to income tax positions taken by the Predecessor Somos – Anglo and the Successor (Vasta) in connection with a corporate reorganization carried out by the Predecessor Somos – Anglo only FY 2019; (c) impairment losses of trade receivables caused partially by COVID-19; (d) Bonus IPO expenses, share based payments offered to certain employees and executives as result of IPO process and (e) other non-recurring expenses composed substantially by restructuring provisions;. We understand that such adjustments are relevant and should be considered when calculating our Adjusted EBITDA, which is a practical measure to assess our operational performance that allows us to compare it with other companies that operates in the same segment.
We calculate Free Cash Flow as the net cash flows from operating activities as presented in the statement of cash flows of our financial statements adjusted by debt-like instruments (reverse factoring instruments) less cash flows required for: (i) acquisition of property, plant and equipment; (ii) addition to intangible assets; and (iii) acquisition of subsidiaries. We consider Free Cash Flow to be a liquidity measure, therefore, we adjust our Free Cash Flow metric with amounts that directly impacted the cash flows in the period in addition to the operating activities. The Free Cash Flow measure provides useful information to management and investors about the amount of cash generated by our operations, deducting for investments in property and equipment to maintain and grow our business.
We calculate Adjusted Cash Conversion Ratio as the cash flows from operating activities divided by Adjusted EBITDA for the relevant period.
We calculate Adjusted net (loss) profit as the net (loss) profit from the period as presented in Statement of Profit or Loss and Other Comprehensive Income adjusted by the same Adjusted EBTDA items, however, added by (a) Amortization of intangible assets from M&A, that included goodwill and other assets and (b) taxes paid composed by cash effect over Income tax and social contribution expenses.
We understand that, although Adjusted net (loss) profit, EBITDA, Adjusted EBITDA, Free Cash Flow and Adjusted Cash Conversion Ratio are used by investors and securities analysts in their evaluation of companies, these measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis of our results of operations as reported under IFRS. Additionally, our calculations of Adjusted net (loss) profit, Adjusted EBITDA, Free Cash Flow and Adjusted Cash Conversion Ratio may be different from the calculation used by other companies, including our competitors in the education services industry, and therefore, our measures may not be comparable to those of other companies.
Consolidated Statements of Financial Position | ||||||
As of 2021 | As of 2020 | |||||
R$ millions | R$ millions | |||||
Statement of Financial Position: | ||||||
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | 415.1 | 311.2 | ||||
259.6 | 491.1 | |||||
Trade receivables | 486.5 | 492.2 | ||||
Inventories | 235.4 | 249.6 | ||||
Taxes Recoverable and Income tax and social contribution recoverable | 26.7 | 26.5 | ||||
Prepayments | 25.9 | 27.5 | ||||
Other receivables | 0.3 | 0.1 | ||||
Related parties – other receivables | 2.1 | 2.1 | ||||
Total current assets | 1,451.6 | 1,600.3 | ||||
Non-current assets | ||||||
Judicial deposits and Escrow Accounts | 172.1 | 172.7 | ||||
Deferred income tax and social contribution | 89.1 | 88.5 | ||||
Property, plant and equipment | 199.5 | 192.0 | ||||
Intangible assets and goodwill | 4,957.3 | 4,924.7 | ||||
Total non-current assets | 5,418.0 | 5,377.9 | ||||
Total assets | 6,869.6 | 6,978.2 | ||||
Liabilities and Shareholder´s Equity / Parent Company´s Net Investment | ||||||
Current liabilities | ||||||
Bonds and financing | 396.8 | 502.9 | ||||
Lease liabilities | 22.2 | 18.3 | ||||
Suppliers | 264.1 | 279.5 | ||||
Income tax and social contribution payable | 0.2 | 1.8 | ||||
Salaries and social contributions | 69.1 | 69.1 | ||||
Contract liabilities and deferred income | 46.2 | 47.2 | ||||
Accounts payable for business combination | 9.7 | 17.1 | ||||
Other liabilities | 8.1 | 4.2 | ||||
Other liabilities - related parties | 140.1 | 135.3 | ||||
Loans from related parties | - | 20.9 | ||||
Total current liabilities | 956.5 | 1,096.3 | ||||
Non-current liabilities | ||||||
Bonds and financing | 290.4 | 290.5 | ||||
Lease liabilities | 159.7 | 154.8 | ||||
Accounts payable for business combination | 53.2 | 30.9 | ||||
Provision for risks of tax, civil and labor losses | 618.9 | 613.9 | ||||
Contract liabilities and deferred revenues | 5.8 | 6.5 | ||||
Total non-current liabilities | 1,128.0 | 1,096.6 | ||||
Total liabilities | 2,084.5 | 2,192.9 | ||||
Total Shareholder's Equity / Parent Company's Net investment | 4,785.1 | 4,785.3 | ||||
Total Liabilities and Shareholder's Equity / Parent Company's Net Investment | 6,869.6 | 6,978.2 |
Consolidated Statement of Cash Flows | |||||||
Three months ended | |||||||
Notes | 2021 | 2020 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Loss before income tax and social contribution | - | (6,929 | ) | 39,137 | |||
Adjustments for: | - | ||||||
Depreciation and amortization | 12 and 13 | 48,585 | 42,084 | ||||
Impairment losses on trade receivables | 10 | 2,609 | 10,319 | ||||
Provision for tax, civil and labor risks | 21 | (740 | ) | (2,025 | ) | ||
Interest on provision for tax, civil and labor risks | 21 | 5,630 | 5,649 | ||||
Provision for obsolete inventories | 11 | 4,838 | (2,326 | ) | |||
Interest on bonds and financing | 14 | 6,077 | 22,639 | ||||
Refund liability and right to returned goods | - | (6,220 | ) | 5,968 | |||
Imputed interest on suppliers | - | 1,452 | 2,118 | ||||
Interest on accounts payable for business combination | - | 167 | 726 | ||||
Share-based payment expense | - | 5,271 | 686 | ||||
Interest on lease liabilities | 16 | 4,022 | 3,721 | ||||
Interest on marketable securities incurred and not withdrawed | 26 | (3,298 | ) | - | |||
Disposals of right of use assets and lease liabilities | - | - | (162 | ) | |||
Residual value of disposals of property and equipment and intangible assets | 12 and 13 | 14 | 485 | ||||
Changes in | 61,478 | 129,019 | |||||
Trade receivables | 10 | 3,133 | (129,584 | ) | |||
Inventories | 11 | 4,564 | 21,418 | ||||
Prepayments | - | 1,588 | (14,583 | ) | |||
Taxes recoverable / Income taxes and social contribution | - | (184 | ) | 1,094 | |||
Judicial deposits and escrow accounts | 21 | 644 | (485 | ) | |||
Other receivables including | - | - | (1,157 | ) | |||
Suppliers | 15 | (16,804 | ) | (4,460 | ) | ||
Salaries and social charges | 19 | (6 | ) | 1,373 | |||
Tax payable | - | (2,000 | ) | 9,995 | |||
Contract liabilities and deferred income | 17 | (3,128 | ) | (1,829 | ) | ||
Other receivables and liabilities from related parties | - | 20,281 | 89,572 | ||||
Other liabilities | - | 2,287 | 13,258 | ||||
Cash from operating activities | 71,853 | 113,631 | |||||
Income tax and social contribution paid | - | - | (5,234 | ) | |||
Interest lease liabilities paid | 16 | (4,021 | ) | (999 | ) | ||
Payment of interest on bonds and financing | 14 | (12,215 | ) | (17,576 | ) | ||
Payment of provision for tax, civil and labor risks | 21 | (9 | ) | (5,089 | ) | ||
Net cash from operating activities | 55,608 | 84,733 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | - | - | |||||
Acquisition of property and equipment | 12 | (2,481 | ) | (725 | ) | ||
Additions to intangible assets | 13 | (9,107 | ) | (6,641 | ) | ||
Acquisition of subsidiaries net of cash acquired and payments of business combinations | - | (36,663 | ) | (23,526 | ) | ||
Marketable securities withdrawed | - | 234,819 | - | ||||
Net cash applied in investing activities | 186,568 | (30,892 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Suppliers - related parties | 20 | - | (37,835 | ) | |||
Loans from related parties | 0 | - | 45,600 | ||||
Lease liabilities paid | 16 | (4,977 | ) | (5,797 | ) | ||
Parent Company's Net Investment | - | - | (5,169 | ) | |||
Payments of bonds and financing | 11 | (100,000 | ) | - | |||
Payments of accounts payable for business combination | - | (12,378 | ) | - | |||
Net cash applied in financing activities | (138,239 | ) | (3,201 | ) | |||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 103,937 | 50,640 | |||||
Cash and cash equivalents at beginning of period | 8 | 311,156 | 43,287 | ||||
Cash and cash equivalents at end of period | 8 | 415,093 | 93,927 | ||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 103,937 | 50,640 |
Infographic
Net revenue breakdown among business lines in the commercial cycle to date, 2021 vs. 2020 (R$ million)
2021 GlobeNewswire, Inc., source