CI&T Reports Solid Second Quarter 2022 Financial and Operational Results
CI&T (NYSE: CINT, “Company”), a global digital specialist, today announces its results for the second quarter of 2022 (2Q22) and the six months ended on June 30, 2022 (6M22) in accordance with International Financial Reporting Standards (IFRS). For comparison purposes, we refer to the results for the second quarter of 2021 (2Q21) and for the six months ended on June 30, 2021 (6M21).
Second Quarter (2Q22) Operating and Financial Highlights
- Net Revenue of R$525.0 million, 67% higher than 2Q21, or 73% growth in constant currency.
- The number of clients with annual revenue above R$1 million in the last twelve months grew from 110 in 1Q22 to 127 in 2Q22.
- Net Profit was R$26.0 million, a 42% reduction compared to 2Q21.
- Adjusted EBITDA was R$100.4 million, a 36% growth year-over-year, equivalent to an Adjusted EBITDA margin of 19.1%.
- Adjusted Net Profit was R$52.3 million, 16% higher than 2Q21. Adjusted net profit margin was 10%.
- CI&T ended 2Q22 with 6,768 CI&Ters, a net addition of 2,734 employees (68% growth) compared to the end of 2Q21.
Six months ended June 30, 2022 (6M22) Operating and Financial Highlights
- Net Revenue was R$1,016.9 million, an increase of 66% compared 6M21.
- Net Revenue growth at constant currency was 74% compared to 6M21.
- Net Profit was R$55.2 million, a decrease of 35% in relation to 6M21.
- Adjusted EBITDA was R$186.5 million, 31% higher than 6M21, with an Adjusted EBITDA margin of 18.3%.
- Adjusted Net Profit was R$93.3 million, an increase of 10% compared to 6M21.
"We are glad to present another set of great quality results, combining sound profitability with sustainable growth," commented Cesar Gon, founder and CEO of CI&T. "The main factors contributing to our higher growth pace have been the expansion of our engagement with existing clients, the addition of new clients every quarter, and our programmatic M&A strategy."
"We continue to see a robust demand environment and are confident in our ability to generate great value to our clients through digital transformation and digital efficiency capabilities at speed and scale. In July, Forrester, a leading global market research company, positioned CI&T as a Leader in The Forrester Wave: Modern Application Development Services, in its report. The recognition is a result of CI&T’s dedication to empowering organizations to maintain competitive innovation in their digital initiatives by enabling the creation of new business capabilities and operational models in a fast-paced market."
Comments on the 2Q22 and 6M22 financial performance
Net Revenue
|
Revenue (in BRL thousand) |
2Q22 |
2Q21 |
Var. 2Q22 x 2Q21 |
6M22 |
6M21 |
Var. 6M22 x 6M21 |
|
Net Revenue |
525,015 |
315,324 |
66.5% |
1,016,887 |
611,616 |
66.3% |
|
Net Revenue at Constant Currency (1) |
549,961 |
317,995 |
72.9% |
1,065,309 |
611,905 |
74.1% |
|
(1) |
Net Revenue at Constant Currency is a non-GAAP measure that translates Net revenue from entities reporting in foreign currencies into Brazilian reais eliminating period-to-period currency fluctuations. See Non-IFRS Financial Measures section for more information. |
In 2Q22, net revenue was R$525.0 million, an increase of 66.5% compared to 2Q21. The acquisitions of Somo and Box 1824 concluded in the 6M22 contributed to 13 percentage points of revenue growth in the quarter. The U.S. continues to be the largest growing market organically for CI&T, while the growth in Europe was mainly due to the acquisition of Somo in 1Q22. We reduced our top one client's share from 24% in 2Q21 to 16% in 2Q22, and our top ten client's share reduced from 73% in 2Q21 to 52% in 2Q22.
The appreciation of the Brazilian Real (BRL) in the quarter1 in relation to the U.S. dollar (USD) and the British Pound (GBP) impacted the conversion of the revenue from our operations in North America and Europe, which represents around 50% of our revenues. Net revenue at constant currency would have been R$550.0 million, a 73% growth compared to 2Q21.
|
____________________ |
In terms of industry verticals, financial services and food and beverages continue to be our most relevant markets, while technology, media, and telecom (TMT) and retail and manufacturing have been growing and gaining relevance in our portfolio of clients. We continue to diversify our client base by adding 17 new clients in 2Q22 with annual revenue above R$1.0 million in the last twelve months, from 110 in 1Q22 to 127 in 2Q22.
Revenue Breakdown
|
Net Revenue by industry (in BRL thousand) |
2Q22 |
2Q21 |
Var. 2Q22 x 2Q21 |
6M22 |
6M21 |
Var. 6M22 x 6M21 |
|
Financial Services |
161,466 |
111,268 |
45.1% |
315,064 |
210,089 |
50.0% |
|
Food and Beverages |
107,988 |
88,112 |
22.6% |
202,056 |
172,169 |
17.4% |
|
Technology, Media and Telecom |
69,690 |
30,142 |
131.2% |
137,443 |
62,491 |
119.9% |
|
Pharmaceuticals and Cosmetics |
70,568 |
45,798 |
54.1% |
133,990 |
87,604 |
52.9% |
|
Retail and Manufacturing |
31,624 |
18,232 |
73.4% |
67,053 |
34,210 |
96.0% |
|
Education and Services |
16,965 |
11,446 |
48.2% |
36,653 |
23,638 |
55.1% |
|
Logistic and Transportation |
17,596 |
4,923 |
257.4% |
34,632 |
10,155 |
241.0% |
|
Others |
49,118 |
5,403 |
809.2% |
89,996 |
11,260 |
699.3% |
|
Total |
525,015 |
315,324 |
66.5% |
1,016,887 |
611,616 |
66.3% |
|
Net Revenue by geographic (in BRL thousand) |
2Q22 |
2Q21 |
Var. 2Q22 x 2Q21 |
6M22 |
6M21 |
Var. 6M22 x 6M21 |
|
NAE (North America and Europe) |
267,464 |
159,187 |
68.0% |
508,993 |
312,810 |
62.7% |
|
North America |
219,304 |
152,574 |
43.7% |
423,244 |
301,584 |
40.3% |
|
Europe |
48,160 |
6,613 |
628.3% |
85,749 |
11,226 |
663.8% |
|
LATAM (Latin America) |
242,574 |
146,641 |
65.4% |
477,280 |
277,818 |
71.8% |
|
APJ (Asia, Pacific and Japan) |
14,977 |
9,496 |
57.7% |
30,614 |
20,988 |
45.9% |
Cost of Services Provided and Adjusted Gross Profit
|
Gross Profit (in BRL thousand) |
2Q22 |
2Q21 |
Var. 2Q22 x 2Q21 |
6M22 |
6M21 |
Var. 6M22 x 6M21 |
|
Net Revenue |
525,015 |
315,324 |
66.5% |
1,016,887 |
611,616 |
66.3% |
|
Cost of Services |
(341,502) |
(205,768) |
66.0% |
(670,494) |
(394,140) |
70.1% |
|
Gross Profit |
183,513 |
109,556 |
67.5% |
346,393 |
217,476 |
59.3% |
|
Adjustments |
|
|
|
|
|
|
|
Depreciation and amortization (cost of services provided) |
10,295 |
6,551 |
57.2% |
19,614 |
12,776 |
53.5% |
|
Stock-based compensation |
(361) |
181 |
- |
821 |
233 |
253.0% |
|
Adjusted Gross Profit (1) |
193,447 |
116,287 |
66.4% |
366,828 |
230,484 |
59.2% |
|
Adjusted Gross Profit Margin (1) |
36.8% |
36.9% |
0p.p |
36.1% |
37.7% |
-1.6p.p |
|
(1) |
Adjusted Gross Profit and Adjusted Gross Profit margin are Non-IFRS measures. See Non-IFRS financial measures section for more information. |
The cost of services provided in 2Q22 reached R$341.5 million, an increase of 66.0% compared to 2Q21, and the gross profit was R$183.5 million. Excluding costs with depreciation and amortization and the stock-based compensation, the adjusted gross profit in 2Q22 was R$193.5 million, 66.4% higher than 2Q21, with an adjusted gross profit margin of 36.8%. CI&T ended 2Q22 with 6,768 CI&Ters, a headcount growth of 68% (net addition of 2,734 employees) compared to the end of 2Q21.
The gross profit margin in 2Q22 remained relatively flat year over year. In 6M22, the gross margin reduced 1.6 percentage points compared to 6M21, due to the impact of foreign exchange rate variation in the period, and M&A, as recently acquired companies have lower margins.
SG&A and Other Expenses
|
SG&A expenses (in BRL thousand) |
2Q22 |
2Q21 |
Var. 2Q22 x 2Q21 |
6M22 |
6M21 |
Var. 6M22 x 6M21 |
|
Selling |
(39,962) |
(18,801) |
112.6% |
(75,091) |
(37,780) |
98.8% |
|
General and administrative |
(78,390) |
(28,328) |
176.7% |
(143,311) |
(54,054) |
165.1% |
|
SG&A expenses |
(118,352) |
(47,129) |
151.1% |
(218,402) |
(91,834) |
137.8% |
|
Other income (expenses) net (1) |
(3,969) |
(184) |
n.m |
(4,484) |
1,406 |
- |
|
Impairment loss on trade receivables and contract assets |
356 |
2,891 |
-87.7% |
(710) |
(367) |
93.5% |
|
SG&A and other operating expenses |
(121,965) |
(44,422) |
174.6% |
(223,596) |
(90,795) |
146.3% |
|
(1) |
Include research and technological innovation expenses |
Selling, General and Administrative (SG&A) expenses grew 151.1% in 2Q22 compared to 2Q21, mainly explained by (i) an increase in expenses associated with the expansion of the hiring and attracting teams, aligned with our revenue and headcount growth; (ii) acquisition-related expenses, including amortization of intangible assets from acquired companies; and (iii) the strengthening of our back-office teams in light of our IPO.
Adjusted EBITDA
|
Adjusted EBITDA (in BRL thousand) |
2Q22 |
2Q21 |
Var. 2Q22 x 2Q21 |
6M22 |
6M21 |
Var. 6M22 x 6M21 |
|
Net profit for the period |
25,999 |
44,722 |
-41.9% |
55,222 |
84,337 |
-34.5% |
|
Adjustments |
|
|
|
|
|
|
|
Net financial cost |
17,533 |
1,989 |
781.5% |
34,245 |
3,686 |
829.1% |
|
Income tax expense |
18,016 |
18,423 |
-2.2% |
33,330 |
38,658 |
-13.8% |
|
Depreciation and amortization |
24,205 |
8,224 |
194.3% |
43,596 |
16,019 |
172.2% |
|
Stock-based compensation |
(106) |
328 |
- |
1,133 |
501 |
126.1% |
|
Consulting expenses |
6,395 |
237 |
n.m |
9,090 |
462 |
n.m |
|
Government grants |
(115) |
(9) |
n.m |
(174) |
(1,414) |
-87.7% |
|
Write-off (1) |
- |
- |
0.0% |
1,548 |
- |
0.0% |
|
Acquisition-related expenses (2) |
8,464 |
- |
0.0% |
8,464 |
- |
0.0% |
|
Adjusted EBITDA (3) |
100,391 |
73,915 |
35.8% |
186,454 |
142,249 |
31.1% |
|
Adjusted EBITDA Margin (3) |
19.1% |
23.4% |
-4.3p.p |
18.3% |
23.3% |
-4.9p.p |
|
(1) |
Non-cash expenses related to the inventory of property, plant, and equipment of Dextra, a recently acquired company. |
|
(2) |
Include fair value adjustment on accounts payable for business combination and acquisition-related retention bonuses. |
|
(3) |
Adjusted EBITDA and Adjusted EBITDA margin are Non-IFRS measures. See Non-IFRS financial measures section for more information. |
In 2Q22, Adjusted EBITDA was R$100.4 million, an increase of 35.8% compared to 2Q21. Adjusted EBITDA margin was 19.1% in the quarter, a reduction of 4.3 percentage points compared to the same quarter of last year, due to the increase in SG&A expenses, as explained above. Sequentially, the adjusted EBITDA margin improved to 19.1% in 2Q22 from 17.5% in 1Q22, as a result of seasonal effects, such as gradual price readjustments on our contracts and a higher utilization rate.
Net Financial Expenses - Net financial expenses were R$17.5 million in 2Q22, compared to R$2.0 million in 2Q21, mainly due to the debt raised in July 2021 to finance the Dextra acquisition in the amount of R$650 million.
Depreciation and Amortization - Depreciation and amortization expenses totaled R$24.2 million in 2Q22, an increase of R$15.9 million compared to 2Q21, mainly due to the amortization of R$11.3 million from intangible assets from acquired companies.
Income tax expense - In 2Q22, income tax expense was R$18.0 million, a reduction of 2.2% lower compared to 2Q21. In the 6M22, income tax expense was R$33.3 million, a reduction of 13.8% year over year, while the income tax paid (cash effect) was R$21.1 million in the period, equivalent to a cash tax rate of 17%.
Net Profit and Adjusted Net Profit
|
Net Profit (in BRL thousand) |
2Q22 |
2Q21 |
Var. 2Q22 x 2Q21 |
6M22 |
6M21 |
Var. 6M22 x 6M21 |
|
Net profit for the period |
25,999 |
44,722 |
-41.9% |
55,222 |
84,337 |
-34.5% |
|
Adjustments |
|
|
|
|
|
|
|
Consulting expenses |
6,395 |
237 |
n.m |
9,090 |
462 |
n.m |
|
Write-off (1) |
- |
- |
0.0% |
1,548 |
- |
0.0% |
|
Acquisition-related expenses (2) |
19,859 |
- |
0.0% |
27,488 |
- |
0.0% |
|
Adjusted Net Profit (3) (4) |
52,253 |
44,959 |
16.2% |
93,347 |
84,799 |
10.1% |
|
Adjusted Net Profit Margin (3) |
10.0% |
14.3% |
-4.3p.p |
9.2% |
13.9% |
-4.7p.p |
|
(1) |
Non-cash expenses related to the inventory of property, plant, and equipment of the recently acquired Dextra. |
|
(2) |
Include amortization of intangible assets from acquired companies, fair value adjustment on accounts payable for business combination and acquisition-related retention bonuses. |
|
(3) |
Adjusted Net profit and Adjusted net profit margin are Non-IFRS measures. See Non-IFRS financial measures section for more information. |
|
(4) |
Adjustments' amounts are gross of tax. Tax effects on non-IFRS adjustments totaled R$111 thousand negative in 2Q22, R$81 thousand negative in 2Q21, R$661 thousand negative in 6M22, and R$157 thousand negative in 6M21. |
In 2Q22, net profit was R$26.0 million, 41.9% lower than 2Q21. Adjusted net profit was R$52.3 million, 16.0% higher than 2Q21, equivalent to an adjusted net profit margin of 10.0%. The reduction in the adjusted net profit margin was mainly due to higher SG&A and financial expenses.
Business Outlook
We expect our net revenue in the third quarter of 2022 to be at least R$540 million compared to our net revenue of R$376 million in the third quarter of 2021, a 46% growth at constant currency or a 44% growth on a reported basis.
For the full year of 2022, we are updating our outlook, mainly to reflect foreign exchange variation in the period. We expect net revenue growth of at least 55% year-over-year on a constant currency basis and net revenue growth on a reported basis of at least 49%, which includes a negative foreign currency translation impact of approximately 6 percentage points.
In addition, we estimate our adjusted EBITDA margin to be at least 19% for the full year of 2022, assuming an average exchange rate of 5.10 Brazilian Reais to the U.S. dollar for the full year.
These expectations are forward-looking statements and actual results may differ materially. See "Cautionary Statement on Forward-Looking Statements" below.
Conference Call Information
Cesar Gon, Bruno Guicardi, Stanley Rodrigues and Eduardo Galvão will host a video conference call to discuss the 2Q22 and 6M22 financial and operating results on August 18 at 8:00 a.m. Eastern Time / 9:00 a.m. BRT. The earnings call can be accessed at the Company’s Investor Relations website at https://investors.ciandt.com or at the following link: https://youtu.be/bO6R_oXKC3Q.
About CI&T
CI&T is a global digital specialist, a partner in end-to-end digital transformation for 100+ Large Enterprises & Fast Growth Clients. As digital natives, we bring a 27-year track record of accelerating business impact through complete and scalable digital solutions. With a global presence in 9 countries with a nearshore delivery model, CI&T is the Employer of Choice for more than 6,700 professionals in strategy, data science, design, and engineering, unlocking top-line growth, improving customer experience, and driving operational efficiency.
Basis of accounting and functional currency
CI&T maintains its books and records in Brazilian reais, the presentation currency for its unaudited condensed consolidated interim financial statements and the functional currency of our operations in Brazil. CI&T prepares its unaudited condensed consolidated interim financial statements in accordance with IFRS, as issued by the IASB, and International Financial Reporting Standard No 34—Interim Financial Reporting (“IAS 34”).
Non-IFRS Financial Measures
We regularly monitor certain financial and operating metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions. These non-IFRS financial measures include Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Profit, Adjusted Net Profit Margin, Net Revenue at Constant Currency and Net Revenue Growth at Constant Currency, and should be considered in addition to results prepared in accordance with IFRS, but not as substitutes for IFRS results. In addition, our calculation of these non-IFRS financial measures may differ from those used by other companies, and therefore comparability may be limited. These non-IFRS financial measures are provided as additional information to enhance investors’ overall understanding of our operations’ historical and current financial performance.
CI&T is not providing a quantitative reconciliation of forward-looking Non-IFRS Net Revenue Growth at Constant Currency and Adjusted EBITDA to the most directly comparable IFRS measure because it is unable to reasonably predict the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, stock-based compensation expense, acquisition-related expenses, the tax effect of non-IFRS adjustments and other items. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period.
We calculate Net Revenue at Constant Currency and Net Revenue Growth at Constant Currency by translating Net revenue from entities reporting in foreign currencies into Brazilian reais using the comparable foreign currency exchange average rates from the prior period to show changes in our revenue without giving effect to period-to-period currency fluctuations. Reported Net Revenue in 2021 considers the FX rate at the end of each month, while Net Revenue at Constant Currency considers the average FX rate for the period.
In calculating Adjusted Gross Profit, we exclude cost components unrelatedto the direct management of our services. For the periods herein, the adjustments applied were: (i) depreciation and amortization related to costs of services provided; and (ii) stock-based compensation expenses.
In calculating Adjusted EBITDA, we exclude components unrelated to the direct management of our services. For the periods herein, the adjustments were: (i) consulting expenses related to corporate reorganization, the initial public offering, and acquisition-related activities; (ii) government grants related to tax reimbursement in the Chinese subsidiary; (iii) stock-based compensation expenses; (iv) non-cash expenses related to the inventory of property, plant, and equipment of the recently acquired Dextra, and (v) acquisition-related expenses, including fair value adjustment on accounts payable for business combination and retention bonuses.
In calculating Adjusted Net Profit, we exclude cost components unrelated to the direct management of our services. For the periods herein, the adjustments applied were: (i) consulting expenses related to corporate reorganization, and the initial public offering, and as well as mergers and acquisition-related activities, (ii) non-cash expenses related to the inventory of property, plant, and equipment of the recently acquired Dextra and (iii) acquisition-related expenses, including amortization of intangible assets from acquired companies, fair value adjustment on account payables for business combination, and retention bonuses.
Cautionary Statement on Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, which include but are not limited to: the statements under "Business outlook," including expectations relating to revenues and other financial or business metrics; statements regarding relationships with clients; and any other statements of expectation or belief. The words “believe,” “will,” “may,” “may have,” “would,” “estimate,” “continues,” “anticipates,” “intends,” “plans,” “expects,” “budget,” "scheduled,” “forecasts” and similar words are intended to identify estimates and forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements represent our management's beliefs and assumptions only as of the date of this press release. You should read this press release with the understanding that our actual future results may be materially different from what we expect. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: the current and future impact of the COVID-19 pandemic, the ongoing war in Ukraine and economic sanctions imposed by Western economies over Russia on our business and industry; the effects of competition on our business; uncertainty regarding the demand for and market utilization of our services; the ability to maintain or acquire new client relationships; general business and economic conditions; our ability to successfully integrate Dextra, Somo and Box 1824; and our ability to successfully execute our growth strategy and strategic plans. Additional information concerning these and other risks and uncertainties are contained in the "Risk Factors" section of CI&T's annual report on Form 20-F. Additional information will be made available in our annual reports on Form 20-F, and other filings and reports that CI&T may file from time to time with the SEC. Except as required by law, CI&T assumes no obligation and does not intend to update these forward-looking statements or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Unaudited condensed consolidated statement of profit or loss
(In thousands of Brazilian Reais)
|
|
Quarter ended June 30, |
|
Six months ended June 30, |
||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||
|
|
|
|
|
|
|
||||||
|
Net Revenue |
525,015 |
|
|
315,324 |
|
|
1,016,887 |
|
|
611,616 |
|
|
Costs of services provided |
(341,502 |
) |
|
(205,768 |
) |
|
(670,494 |
) |
|
(394,140 |
) |
|
Gross Profit |
183,513 |
|
|
109,556 |
|
|
346,393 |
|
|
217,476 |
|
|
|
|
|
|
|
|
|
|
||||
|
Selling expenses |
(39,962 |
) |
|
(18,801 |
) |
|
(75,091 |
) |
|
(37,780 |
) |
|
General and administrative expenses |
(78,390 |
) |
|
(28,328 |
) |
|
(143,311 |
) |
|
(54,054 |
) |
|
Research and technological innovation expenses |
- |
|
|
- |
|
|
- |
|
|
(4 |
) |
|
Impairment loss on trade receivables and contract assets |
356 |
|
|
2,891 |
|
|
(710 |
) |
|
(367 |
) |
|
Other income (expenses) net |
(3,969 |
) |
|
(184 |
) |
|
(4,484 |
) |
|
1,410 |
|
|
|
|
|
|
|
|
|
|
||||
|
Operating profit before financial income and tax |
61,548 |
|
|
65,134 |
|
|
122,797 |
|
|
126,681 |
|
|
|
|
|
|
|
|
|
|
||||
|
Finance income |
53,306 |
|
|
16,379 |
|
|
122,888 |
|
|
25,428 |
|
|
Finance cost |
(70,839 |
) |
|
(18,368 |
) |
|
(157,133 |
) |
|
(29,114 |
) |
|
Net finance costs |
(17,533 |
) |
|
(1,989 |
) |
|
(34,245 |
) |
|
(3,686 |
) |
|
|
|
|
|
|
|
|
|
||||
|
Profit before Income tax |
44,015 |
|
|
63,145 |
|
|
88,552 |
|
|
122,995 |
|
|
Income tax expense |
(18,016 |
) |
|
(18,423 |
) |
|
(33,330 |
) |
|
(38,658 |
) |
|
Current |
(17,115 |
) |
|
(21,040 |
) |
|
(22,523 |
) |
|
(34,558 |
) |
|
Deferred |
(901 |
) |
|
2,617 |
|
|
(10,807 |
) |
|
(4,100 |
) |
|
Net profit for the period |
25,999 |
|
|
44,722 |
|
|
55,222 |
|
|
84,337 |
|
|
|
|
|
|
|
|
|
|
||||
|
Earnings per share |
|
|
|
|
|
|
|
||||
|
Earnings per share – basic (in R$) |
0.20 |
|
|
0.37 |
|
|
0.42 |
|
|
0.70 |
|
|
Earnings per share – diluted (in R$) |
0.20 |
|
|
0.37 |
|
|
0.42 |
|
|
0.69 |
|
Unaudited condensed consolidated statements of financial position
(In thousands of Brazilian Reais)
|
Assets |
June 30, |
|
December 31, |
|
Liabilities and equity |
June 30, |
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
104,190 |
|
135,727 |
|
Suppliers and other payables |
24,655 |
|
|
33,566 |
|
Financial Investments |
253,304 |
|
798,786 |
|
Loans and borrowings |
183,465 |
|
|
164,403 |
|
Trade receivables |
416,728 |
|
340,519 |
|
Lease liabilities |
27,548 |
|
|
21,214 |
|
Contract assets |
231,695 |
|
134,388 |
|
Salaries and welfare charges |
214,367 |
|
|
234,173 |
|
Recoverable taxes |
17,196 |
|
7,785 |
|
Accounts payable for business combination |
113,559 |
|
|
48,923 |
|
Tax assets |
1,016 |
|
2,810 |
|
Loss adjustments on hedge accounting |
49,330 |
|
|
- |
|
Gain adjustments on hedge accounting |
9,595 |
|
- |
|
Derivatives |
7,033 |
|
|
535 |
|
Derivatives |
7,736 |
|
896 |
|
Tax liabilities |
8,482 |
|
|
13,345 |
|
Other assets |
36,592 |
|
29,994 |
|
Other taxes payable |
11,610 |
|
|
5,423 |
|
Total current assets |
1,078,052 |
|
1,450,905 |
|
Contract liability |
11,771 |
|
|
13,722 |
|
|
|
|
|
|
Other liabilities |
20,942 |
|
|
13,669 |
|
Recoverable taxes |
3,587 |
|
3,046 |
|
Total current liabilities |
672,762 |
|
|
548,973 |
|
Deferred tax assets |
22,954 |
|
31,989 |
|
|
|
|
|
|
|
Judicial deposits |
9,337 |
|
3,079 |
|
Loans and borrowings |
489,777 |
|
|
624,306 |
|
Restricted cash - Escrow account and indemnity asset |
33,975 |
|
- |
|
Lease liabilities |
55,688 |
|
|
60,674 |
|
Other assets |
3,950 |
|
2,974 |
|
Provisions |
14,586 |
|
|
633 |
|
Property, plant and equipment |
60,962 |
|
57,721 |
|
Accounts payable for business combination |
67,627 |
|
|
36,803 |
|
Intangible assets and goodwill |
1,078,187 |
|
738,803 |
|
Other liabilities |
1,739 |
|
|
1,660 |
|
Right-of-use assets |
73,998 |
|
73,827 |
|
Total non-current liabilities |
629,417 |
|
|
724,076 |
|
Total non-current assets |
1,286,950 |
|
911,439 |
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
|
|
Share capital |
37 |
|
|
36 |
|
|
|
|
|
|
Share premium |
929,984 |
|
|
915,947 |
|
|
|
|
|
|
Capital reserves |
23,796 |
|
|
10,105 |
|
|
|
|
|
|
Profit reserves |
181,179 |
|
|
125,957 |
|
|
|
|
|
|
Other comprehensive income |
(72,173 |
) |
|
37,250 |
|
|
|
|
|
|
Total equity |
1,062,823 |
|
|
1,089,295 |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
2,365,002 |
|
2,362,344 |
|
Total equity and liabilities |
2,365,002 |
|
|
2,362,344 |
Unaudited condensed consolidated statement of cash flow
(In thousands of Brazilian Reais)
|
|
June 30, 2022 |
|
|
June 30, 2021 |
|
|
|
|
|
|
||
|
Net profit for the period |
55,222 |
|
|
84,337 |
|
|
Adjustments for: |
|
|
|
||
|
Depreciation and amortization |
43,596 |
|
|
16,019 |
|
|
Loss on the sale of property, plant and equipment and intangible assets |
2,025 |
|
|
448 |
|
|
Interest, monetary variation and exchange rate changes |
10,164 |
|
|
(1,168 |
) |
|
Exchange rate changes and monetary adjustments on accounts payable for business combinations |
(6,420 |
) |
|
- |
|
|
Exchange variation on escrow account related to Somo acquisition |
2,668 |
|
|
- |
|
|
Interest on lease |
4,233 |
|
|
2,617 |
|
|
Unrealized loss (gain) on financial instruments |
314 |
|
|
(2,405 |
) |
|
Income tax expenses |
33,330 |
|
|
38,658 |
|
|
Impairment losses on trade receivables |
101 |
|
|
307 |
|
|
Impairment losses on contract assets |
609 |
|
|
60 |
|
|
Provision for labor and tax risks |
385 |
|
|
2 |
|
|
Share-based plan |
1,133 |
|
|
390 |
|
|
Income on financial investments |
(651 |
) |
|
- |
|
|
Fair value adjustment - accounts payable for business combination |
5,123 |
|
|
- |
|
|
Others |
- |
|
|
(42 |
) |
|
Variation in operating assets and liabilities |
|
|
|
||
|
Trade receivables |
(74,260 |
) |
|
(56,123 |
) |
|
Contract assets |
(88,256 |
) |
|
(42,805 |
) |
|
Recoverable taxes |
(8,498 |
) |
|
440 |
|
|
Tax assets |
(158 |
) |
|
(461 |
) |
|
Judicial deposits |
(6,258 |
) |
|
7 |
|
|
Suppliers and other payables |
(31,796 |
) |
|
2,349 |
|
|
Salaries and welfare charges |
(27,461 |
) |
|
2,427 |
|
|
Tax liabilities |
8,958 |
|
|
(14,088 |
) |
|
Other taxes payable |
986 |
|
|
1,130 |
|
|
Contract liabilities |
(3,058 |
) |
|
(5,807 |
) |
|
Other receivables and payables, net |
(9,140 |
) |
|
(2,786 |
) |
|
Cash (used in)/ generated from operating activities |
(87,109 |
) |
|
23,506 |
|
|
Income tax paid |
(21,074 |
) |
|
(23,321 |
) |
|
Interest paid on loans and borrowings |
(38,379 |
) |
|
(1,966 |
) |
|
Interest paid on lease |
(3,174 |
) |
|
(2,607 |
) |
|
Net cash used in operating activities |
(149,736 |
) |
|
(4,388 |
) |
|
Cash flows from investment activities: |
|
|
|
||
|
Acquisition of property, plant and equipment and intangible assets |
(15,520 |
) |
|
(17,164 |
) |
|
Acquisition of subsidiary net of cash acquired - Box 1824 |
(19,040 |
) |
|
- |
|
|
Acquisition of subsidiary net of cash acquired - Somo |
(247,764 |
) |
|
- |
|
|
Escrow deposit (acquisition of Somo) |
(23,061 |
) |
|
- |
|
|
Hedge accounting realization |
16,134 |
|
|
- |
|
|
Redemption of financial investments |
514,394 |
|
|
- |
|
|
Net cash from / used in investment activities |
225,143 |
|
|
(17,164 |
) |
|
Cash flow from financing activities: |
|
|
|
||
|
Share-based plan contributions |
- |
|
|
691 |
|
|
Dividends paid |
- |
|
|
(71,039 |
) |
|
Exercised stock options |
8,785 |
|
|
- |
|
|
Interest on equity, paid |
- |
|
|
(460 |
) |
|
Payment of lease liabilities |
(12,576 |
) |
|
(7,854 |
) |
|
Proceeds from loans and borrowings |
133,789 |
|
|
88,496 |
|
|
Settlement of derivatives |
(656 |
) |
|
- |
|
|
Payment of loans and borrowings |
(244,384 |
) |
|
(68,265 |
) |
|
Net cash from financing activities |
(115,042 |
) |
|
(58,431 |
) |
|
Net decrease in cash and cash equivalents |
(39,635 |
) |
|
(79,983 |
) |
|
Cash and cash equivalents as of January 1st |
135,727 |
|
|
162,827 |
|
|
Exchange variation effect on cash and cash equivalents |
8,098 |
|
|
5,713 |
|
|
Cash reduction due to spin-off effect |
- |
|
|
(7,752 |
) |
|
Cash and cash equivalents as of June 2022 and 2021 |
104,190 |
|
|
80,805 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220817005663/en/