Interim financial information
Vulcabras S.A.
March 31, 2024
with Report on Review of Interim Financial Information
Vulcabras S.A.
Interim financial information
March 31, 2024
Contents
Report on the review of quarterly information | 1 |
Reviewed individual and consolidated interim financial information | |
Statements of financial position | 3 |
Statements of profit or loss | 4 |
Statements of comprehensive income | 5 |
Statements of changes in equity | 6 |
Statements of cash flows | 7 |
Statements of added value | 8 |
Notes to the individual and consolidated interim financial information | 9 |
Centro Empresarial Queiroz Galvão - Torre Cícero Dias
Rua Padre Carapuceiro, 858
8º andar, Boa Viagem
51020-280 - Recife - PE - Brasil
Tel: +55 81 3201-4800
Fax: +55 81 3201-4819 ey.com.br
Report on the review of quarterly information
To
the Administrators and Shareholders of
Vulcabras S.A.
Jundiaí - SP
Introduction
We have reviewed the interim, individual and consolidated financial information of Vulcabras S.A. ("Company"), contained in the Quarterly Information (ITR) Form for the quarter ended March 31, 2024, which comprise the balance sheet as of March 31, 2024 and related statements of income, comprehensive income, changes in shareholders' equity and cash flows for the quarter then ended, as well as corresponding explanatory notes, including material accounting policies and other clarifying information.
Responsibility of Executive Board for the consolidated interim financial information
Executive Board is responsible for the preparation of the individual and consolidated interim financial information in accordance with NBC TG 21 - Interim Financial Reporting and International Standard IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the presentation of this information in a manner consistent with the standards issued by the Brazilian Securities and Exchange Commission, applicable to the preparation of the Quarterly Information (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.
Scope of review
Our review was carried out in accordance with the Brazilian and international review standards for interim information (NBC TR 2410 / ISRE 2410 - Review of Interim Financial Information Performed by the Independent Auditor of the Entity). A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Brazilian and International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion on the individual and consolidated interim information
Based on our review, we are not aware of any facts that would lead us to believe that the individual and consolidated interim financial information included in the quarterly information referred to above was not prepared, in all material respects, in accordance with NBC TG 21 and IAS 34 applicable to the preparation of Quarterly Information (ITR), and presented in a manner consistent with the standards issued by the Securities Commission.
1
Uma empresa-membro da Ernst & Young Global Limited
Other matters
Statements of added value
The aforementioned quarterly information includes the individual and consolidated statements of added value for the three-month period ended March 31, 2024, prepared under responsibility of Company's Executive Board, and presented as supplementary information for IAS 34 purposes. These statements have been subject to review procedures performed in conjunction with the review of the quarterly information, in order to determine whether they are reconciled with the interim financial information and book records, as applicable, and whether their form and content are in accordance with the criteria defined in NBC TG 09 - Statement of Added Value. Based on our review, we are not aware of any facts that may lead us to believe that those statements of added value have not been prepared, in all material respects, in accordance with the criteria set forth in this Standard and consistently with respect to the individual and consolidated interim financial information taken as a whole.
Recife, May 7, 2024.
ERNST & YOUNG
Auditores Independentes S/S Ltda.
CRC SP-015199/O
Original report in Portuguese signed by
Francisco da Silva Pimentel
Accountant CRC SP-171230/O
2
Vulcabras S.A. (Publicly-held company)
Statements of financial position
As of March 31, 2024 and December 31, 2023 (In thousands of reais)
Consolidated | Parent Company | Consolidated | Parent Company | ||||||||||||||
Assets | Note | 03/31/2024 | 12/31/2023 | 03/31/2024 | 12/31/2023 | Liabilities | Note | 03/31/2024 | 12/31/2023 | 03/31/2024 | 12/31/2023 | ||||||
Cash and cash equivalents | 4 | 311.687 | 361.020 | 40.659 | 1.023 | Suppliers | 16 | 130.101 | 83.779 | 1.721 | 2.631 | ||||||
Interest earning bank deposits | 5 | 252.687 | 3 | 252.687 | 3 | Loans and financing | 17 | 269.635 | 234.497 | - | - | ||||||
Trade accounts receivable | 6 | 734.347 | 830.672 | - | - | Lease liabilities | 18 | 9.271 | 8.433 | - | - | ||||||
Inventories | 7 | 650.690 | 583.534 | - | - | Taxes payable | 25.039 | 39.332 | 336 | 195 | |||||||
Recoverable taxes | 8 | 107.262 | 119.435 | 648 | 648 | Salaries and vacations payable | 54.188 | 56.070 | 21 | 21 | |||||||
Income tax and social contribution | 9a | 29.246 | 26.786 | 2.420 | 992 | Provisions | 19 | 2.332 | 2.739 | 340 | 382 | ||||||
Other accounts receivable - related parties | 11b | - | - | 10.592 | 255.742 | Commissions payable | 26.345 | 28.239 | - | - | |||||||
Other accounts receivable and other receivables | 26.167 | 39.177 | 2.749 | 4.142 | Dividends and profits payable | 122.604 | 15 | 122.604 | 15 | ||||||||
Other accounts payable | 54.712 | 58.576 | 298 | 225 | |||||||||||||
Total current assets | 2.112.086 | 1.960.627 | 309.755 | 262.550 | Total current liabilities | 694.227 | 511.680 | 125.320 | 3.469 | ||||||||
Interest earning bank deposits | 5 | 11.404 | 13.446 | 2 | 2 | ||||||||||||
Trade accounts receivable | 6 | 3.830 | 3.873 | - | - | Loans and financing | 17 | 145.926 | 203.253 | - | - | ||||||
Recoverable taxes | 8 | 54.707 | 59.236 | 1.920 | 1.920 | Lease liabilities | 18 | 5.501 | 6.862 | - | - | ||||||
Deferred income tax and social contribution | 9b | 1.312 | 1.286 | - | - | Provisions | 19 | 53.806 | 53.147 | 459 | 399 | ||||||
Judicial deposits | 10 | 12.512 | 27.847 | 249 | 250 | Deferred income tax and social contribution | 9b | 2.051 | 2.071 | - | - | ||||||
Goods for sale | 194 | 194 | - | - | Other accounts payable | 2.627 | 2.844 | - | - | ||||||||
Other receivable accounts | 2.096 | 2.090 | 1.013 | 1.012 | Total non-current liabilities | 209.911 | 268.177 | 459 | 399 | ||||||||
Long-term assets | 86.055 | 107.972 | 3.184 | 3.184 | |||||||||||||
Shareholders' equity | |||||||||||||||||
Capital | 20a | 1.274.040 | 1.108.354 | 1.274.040 | 1.108.354 | ||||||||||||
Capital reserves | 20b | 320.217 | (4.102) | 320.217 | (4.102) | ||||||||||||
Investments | 12a | 64.587 | 62.883 | 1.815.428 | 1.733.010 | Revaluation reserves | 20c | 3.982 | 4.020 | 3.982 | 4.020 | ||||||
Investment property | 2 | 2 | - | - | Equity valuation adjustments | 20d | 24.819 | 23.965 | 24.819 | 23.965 | |||||||
Right-of-use | 18 | 12.390 | 12.903 | - | - | Profit reserve | 20e | 290.838 | 862.750 | 290.838 | 862.750 | ||||||
Property, plant and equipment | 13 | 423.924 | 422.650 | 3 | - | Retained earnings | 20e | 88.806 | - | 88.806 | - | ||||||
Intangible assets | 14 | 208.106 | 208.116 | 111 | 111 | ||||||||||||
Shareholders' equity attributable to controlling | |||||||||||||||||
shareholders | 2.002.702 | 1.994.987 | 2.002.702 | 1.994.987 | |||||||||||||
709.009 | 706.554 | 1.815.542 | 1.733.121 | ||||||||||||||
Non-controlling interest | 310 | 309 | - | - | |||||||||||||
Total non-current assets | 795.064 | 814.526 | 1.818.726 | 1.736.305 | Total shareholders' equity | 2.003.012 | 1.995.296 | 2.002.702 | 1.994.987 | ||||||||
Total liabilities | 904.138 | 779.857 | 125.779 | 3.868 | |||||||||||||
Total assets | 2.907.150 | 2.775.153 | 2.128.481 | 1.998.855 | Total liabilities and shareholders' equity | 2.907.150 | 2.775.153 | 2.128.481 | 1.998.855 | ||||||||
- | - | - | - |
See the accompanying notes to the quarterly information.
3
Vulcabras S.A. (Publicly-held company)
Statements of profit or loss
As of March 31, 2024 and 2023
(In thousands of reais, except net earnings per share)
Consolidated | Parent Company | |||||||
Note | 03/31/2024 | 03/31/2023 | 03/31/2024 | 03/31/2023 | ||||
Continued operation | ||||||||
Net sales | 21 | 597.267 | 571.118 | - | - | |||
Cost of sales and resales | 22 | (357.381) | (345.759) | - | - | |||
Gross income | 239.886 | 225.359 | - | - | ||||
Sales expenses | 23 | (108.587) | (99.872) | - | - | |||
Provision for expected losses for allowance for doubtful accounts | 23 | (2.112) | (3.184) | - | - | |||
Administrative expenses | 24 | (37.465) | (32.385) | (819) | (405) | |||
Other operating revenues, net | 25 | 4.011 | 1.695 | 1.721 | 1.595 | |||
Equity in net income of subsidiaries | 12b | 1.380 | 1.612 | 81.564 | 83.658 | |||
Income before net financial expenses and revenues and taxes | 97.113 | 93.225 | 82.466 | 84.848 | ||||
Financial revenues | 20.999 | 20.575 | 6.362 | 1.335 | ||||
Financial expenses | (20.219) | (22.723) | (16) | (2.475) | ||||
Financial revenues and expenses, net | 26 | 780 | (2.148) | 6.346 | (1.140) | |||
Income before income taxes | 97.893 | 91.077 | 88.812 | 83.708 | ||||
Deferred income tax and social contribution | 9c | (9.131) | (7.447) | (44) | (68) | |||
Net income for the period | 88.762 | 83.630 | 88.768 | 83.640 | ||||
Income attributable to: | ||||||||
Controlling shareholders | 88.768 | 83.640 | 88.768 | 83.640 | ||||
Non-controlling shareholders | (6) | (10) | - | - | ||||
Net income for the period | 88.762 | 83.630 | 88.768 | 83.640 | ||||
Earnings per share | ||||||||
Earnings per common share - basic | 0,3395 | 0,3409 | ||||||
Earnings per common share - diluted | 0,3380 | 0,3397 | ||||||
Number of shares at the end of the period | ||||||||
Outstanding common shares | 261.447.583 | 245.373.694 | ||||||
Outstanding common shares with a dilution effect | 262.628.711 | 246.248.120 |
See the accompanying notes to the quarterly information.
4
Vulcabras S.A.
(Publicly-held company)
Statements of comprehensive income
As of March 31, 2024 and 2023
(In thousands of reais)
Consolidated | Parent Company | ||||||
03/31/2024 | 03/31/2023 | 03/31/2024 | 03/31/2023 | ||||
Net income for the period | 88.762 | 83.630 | 88.768 | 83.640 | |||
Other comprehensive income - OCI | |||||||
854 | (1.195) | 854 | (1.195) | ||||
Items that can be subsequently reclassified to income (loss) | |||||||
Exchange differences from translation of foreign operations | 854 | (1.183) | 854 | (1.183) | |||
Financial assets at fair value through other comprehensive income | - | (12) | - | (12) | |||
Total comprehensive income | 89.616 | 82.435 | 89.622 | 82.445 | |||
Comprehensive income attributable to: | |||||||
Controlling shareholders | 89.622 | 82.445 | 89.622 | 82.445 | |||
Non-controlling shareholders | (6) | (10) | - | - |
See the accompanying notes to the quarterly information.
5
Vulcabras S.A. (Publicly-held company)
Statements of changes in equity | |||||||||||||||||||||
As of March 31, 2024 and 2023 | |||||||||||||||||||||
(In thousands of reais) | |||||||||||||||||||||
Consolidated | |||||||||||||||||||||
Parent Company | |||||||||||||||||||||
Other | |||||||||||||||||||||
comprehensive | |||||||||||||||||||||
Capital reserves | income | Profit reserves | |||||||||||||||||||
Goodwill in the | Stock option and | Reflected revaluation | Equity | Legal | Statutory | Retained | Non-controlling | Total | |||||||||||||
Capital | valuation | Total | shareholders' | ||||||||||||||||||
issue of shares | treasury shares | reserve in subsidiaries | reserve | reserve | earnings | interest | |||||||||||||||
adjustment | equity | ||||||||||||||||||||
Balances at January 1, 2023 | 1.106.717 | - | (1.472) | 4.175 | 25.974 | 39.187 | 536.907 | - | 1.711.488 | 346 | 1.711.834 | ||||||||||
Realization of revaluation reserve in subsidiary, net of taxes | - | - | - | (39) | - | - | - | 39 | - | - | - | ||||||||||
Transaction with share-based payments | - | - | (1.052) | - | - | - | - | - | (1.052) | - | (1.052) | ||||||||||
Treasury shares acquired | - | - | (889) | - | - | - | - | - | (889) | - | (889) | ||||||||||
Capital increase (Note 20.a) | 1.637 | - | - | - | - | - | - | - | 1.637 | - | 1.637 | ||||||||||
Other comprehensive income | - | ||||||||||||||||||||
Exchange differences from translation of foreign operations | - | - | - | - | (1.183) | - | - | - | (1.183) | (13) | (1.196) | ||||||||||
Financial assets at fair value through other comprehensive income | - | - | - | - | (12) | - | - | - | (12) | - | (12) | ||||||||||
Net income for the period | - | - | - | - | - | - | - | 83.640 | 83.640 | (10) | 83.630 | ||||||||||
Balances at March 31, 2023 | 1.108.354 | - | (3.413) | 4.136 | 24.779 | 39.187 | 536.907 | 83.679 | 1.793.629 | 323 | 1.793.952 | ||||||||||
Balances at January 1, 2024 | 1.108.354 | - | (4.102) | 4.020 | 23.965 | 63.931 | 798.819 | - | 1.994.987 | 309 | 1.995.296 | ||||||||||
Realization of revaluation reserve in subsidiary, net of taxes | - | - | - | (38) | - | - | - | 38 | - | - | - | ||||||||||
Transaction with share-based payments | - | - | (681) | - | - | - | - | - | (681) | - | (681) | ||||||||||
Capital increase (Note 20.a) | 10.441 | - | - | - | - | - | - | - | 10.441 | - | 10.441 | ||||||||||
Capital increase, including goodwill on issuing shares (Note 20.a) | 176.350 | 325.000 | - | - | - | - | - | - | 501.350 | - | 501.350 | ||||||||||
Costs with issue of shares (Note 20.a) | (21.105) | - | - | - | - | - | - | - | (21.105) | - | (21.105) | ||||||||||
Other comprehensive income | |||||||||||||||||||||
Exchange differences from translation of foreign operations | - | - | - | - | 854 | - | - | - | 854 | 7 | 861 | ||||||||||
Net income for the period | - | - | - | - | - | - | - | 88.768 | 88.768 | (6) | 88.762 | ||||||||||
Distribution of income: | |||||||||||||||||||||
Minimum mandatory dividends | - | - | - | - | - | - | (571.912) | - | (571.912) | - | (571.912) | ||||||||||
Balances at March 31, 2024 | 1.274.040 | 325.000 | (4.783) | 3.982 | 24.819 | 63.931 | 226.907 | 88.806 | 2.002.702 | 310 | 2.003.012 |
See the accompanying notes to the quarterly information.
6
Vulcabras S.A. (Publicly-heldcompany)
Statements of cash flows | |||||||||
As of March 31, 2024 and 2023 | |||||||||
(In thousands of reais) | |||||||||
Consolidated | Parent Company | ||||||||
Note | 03/31/2024 | 03/31/2023 | 03/31/2024 | 03/31/2023 | |||||
Cash flow from operating activities | |||||||||
Net income for the period | 88.762 | 83.630 | 88.768 | 83.640 | |||||
Adjustments for: | - | - | - | ||||||
Depreciation and amortization | 25.319 | 23.726 | - | - | |||||
Provision for impairment losses on inventories | 7b | 14.743 | 5.572 | - | - | ||||
Interest on provisioned leases | 18 | 649 | 1.230 | - | - | ||||
Net value of written off tangible and intangible assets | 5.888 | 1.623 | - | - | |||||
Yields from interest earning bank deposits | (3.763) | (258) | (3.464) | - | |||||
Provision for contingencies | 19 | 19.128 | 1.807 | 65 | (3) | ||||
Equity in net income of subsidiaries | 12b | (1.380) | (1.612) | (81.564) | (83.658) | ||||
Transaction with share-based payments | 20b | (681) | (1.052) | (681) | (1.052) | ||||
Provision (reversal) for expected losses for doubtful accounts | 2.112 | 3.184 | - | - | |||||
Gain or loss on lease termination | (459) | - | - | - | |||||
Recovery of PIS and COFINS on ICMS | (1.724) | (3.288) | - | - | |||||
Financial charges and exchange-rate change recognized in income (loss) | 11.787 | 11.293 | - | - | |||||
Current and deferred income tax and social contribution | 9c | 9.131 | 7.447 | 44 | 68 | ||||
Non-controlling interest | 6 | 10 | - | - | |||||
169.518 | 133.312 | 3.168 | (1.005) | ||||||
- | |||||||||
Changes in assets and liabilities | |||||||||
Trade accounts receivable | 95.439 | 140.101 | - | - | |||||
Inventories | (81.899) | (152.743) | - | - | |||||
Recoverable taxes | 15.966 | (2.403) | (1.428) | (381) | |||||
Other accounts receivable | 13.004 | 5.698 | 246.542 | (44.751) | |||||
Judicial deposits | (2.122) | (2.241) | 1 | (2) | |||||
Suppliers | 45.276 | 66.507 | (910) | 8 | |||||
Taxes payable | (21.242) | 4.664 | 97 | (189) | |||||
Salaries and vacations payable | (1.882) | (2.724) | - | 1 | |||||
Provisions | (1.419) | (2.453) | (47) | (189) | |||||
Commissions payable | (1.894) | 660 | - | - | |||||
Other accounts payable | (4.080) | (15.426) | 73 | (340) | |||||
Cash from (used in) operating activities | 224.665 | 172.952 | 247.496 | (46.848) | |||||
- | - | ||||||||
Interest paid | 17d | (7.480) | (5.615) | - | - | ||||
Payment of lease interest | 17d | (377) | (557) | - | - | ||||
Income taxes paid | (1.895) | (6.963) | - | - | |||||
(9.752) | (13.135) | - | - | ||||||
- | - | ||||||||
Net cash flow from (used in) operating activities | 214.913 | 159.817 | 247.496 | (46.848) | |||||
- | - | ||||||||
Cash flow from investing activities | |||||||||
Acquisitions of property, plant and equipment (*) | 13b | (29.041) | (29.861) | (3) | - | ||||
Redemption (investment) of interest earning bank deposits | (246.879) | 42 | (249.220) | (1) | |||||
Funds from disposal of property, plant and equipment | 154 | 118 | - | - | |||||
Acquisitions of intangible assets | 14b | (637) | (20) | - | - | ||||
Decrease in investee's interest | 12b | - | - | - | 99.998 | ||||
Net cash flow from (used in) investment activities | (276.403) | (29.721) | (249.223) | 99.997 | |||||
- | - | - | |||||||
Cash flow from financing activities | |||||||||
Loans obtained - Principal | 17d | 31.892 | 77.262 | - | - | ||||
Payment of loans obtained - Principal | 17d | (58.328) | (28.433) | - | - | ||||
Receipt (payments) of loans with related parties | 11b | - | - | - | (52.743) | ||||
Acquisition of treasury shares | 20b | - | (889) | - | (889) | ||||
Dividends and interest on own capital paid | 17d | (449.323) | - | (449.323) | - | ||||
Capital increase | 20a | 186.791 | 1.637 | 186.791 | 1.637 | ||||
Goodwill on the subscription of shares | 20b | 325.000 | - | 325.000 | - | ||||
Realization of expenditure with issuance of shares | 20a | (21.105) | - | (21.105) | - | ||||
Payment of lease liabilities | 17d | (2.721) | (3.182) | - | - | ||||
Net cash flow from (used in) financing activities | 12.206 | 46.395 | 41.363 | (51.995) | |||||
- | - | ||||||||
Increase (decrease) in cash and cash equivalents | (49.284) | 176.491 | 39.636 | 1.154 | |||||
- | |||||||||
Cash and cash equivalents at the beginning of the year | 361.020 | 197.197 | 1.023 | 35.161 | |||||
Effect of exchange-rate changes on cash and cash equivalents | (49) | 498 | - | - | |||||
Cash and cash equivalents at the end of the year | 311.687 | 374.186 | 40.659 | 36.315 | |||||
Increase (decrease) in cash and cash equivalents | (49.284) | 176.491 | 39.636 | 1.154 | |||||
- | - | - | - | ||||||
See the accompanying notes to the quarterly information. |
7
Vulcabras S.A. | ||||||||
(Publicly-held company) | ||||||||
Statements of added value | ||||||||
As of March 31, 2024 and 2023 | ||||||||
(In thousands of reais) | ||||||||
Consolidated | Parent Company | |||||||
03/31/2024 | 03/31/2023 | 03/31/2024 | 03/31/2023 | |||||
Revenues | 684.619 | 645.931 | 415 | 161 | ||||
Sale of goods, products and services | 680.333 | 646.706 | - | - | ||||
Other revenues and expenses | 6.398 | 2.409 | 415 | 161 | ||||
Expected losses for allowance for doubtful accounts | (2.112) | (3.184) | - | - | ||||
Inputs acquired from third parties | (281.015) | (286.437) | (421) | 46 | ||||
Raw material used | (124.421) | (132.202) | - | - | ||||
Cost of products and goods sold and services rendered | (94.508) | (81.813) | - | - | ||||
Materials, energy, outsourced services and other | (62.086) | (72.422) | (421) | 46 | ||||
Loss/recovery of asset values | - | - | - | - | ||||
Gross added value | 403.604 | 359.494 | (6) | 207 | ||||
Retentions | (25.320) | (23.725) | - | - | ||||
Depreciation and amortization | (25.320) | (23.725) | - | - | ||||
Net added value generated by the Company | 378.284 | 335.769 | (6) | 207 | ||||
Added value received as transfer | 24.798 | 23.739 | 89.804 | 86.655 | ||||
Equity in net income of subsidiaries | 1.380 | 1.612 | 81.564 | 83.658 | ||||
Financial revenues | 20.999 | 20.575 | 6.362 | 1.335 | ||||
Other | 2.419 | 1.552 | 1.878 | 1.662 | ||||
Total added value to be distributed | 403.082 | 359.508 | 89.798 | 86.862 | ||||
Distribution of added value | 403.082 | 359.508 | 89.798 | 86.862 | ||||
Personnel | 190.090 | 159.608 | 291 | 186 | ||||
Direct remuneration | 110.681 | 102.257 | - | - | ||||
Benefits | 20.818 | 21.278 | - | - | ||||
FGTS | 7.607 | 8.116 | - | - | ||||
Sales commissions | 46.084 | 24.519 | - | - | ||||
Directors' fees | 4.900 | 3.438 | 291 | 186 | ||||
Taxes, duties and contributions | 104.300 | 94.203 | 737 | 567 | ||||
Federal | 87.702 | 75.757 | 649 | 483 | ||||
State | 16.379 | 18.263 | - | - | ||||
Municipal | 219 | 183 | 88 | 84 | ||||
Third-party capital remuneration | 19.930 | 22.067 | 2 | 2.469 | ||||
Interest | 18.984 | 21.260 | 2 | 2.470 | ||||
Rents | 945 | 808 | - | - | ||||
Other | 1 | (1) | - | (1) | ||||
Remuneration of own capital | 88.762 | 83.630 | 88.768 | 83.640 | ||||
Retained earnings | 88.768 | 83.640 | 88.768 | 83.640 | ||||
Non-controlling interest | (6) | (10) | - | - |
See the accompanying notes to the quarterly information.
8
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Vulcabras|azaleia SA published this content on 07 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 May 2024 21:45:41 UTC.