Interim Financial Statement
C&A Modas S.A.
September 30, 2024 and 2023
and the Report of the Independent Auditor
C&A Modas S.A.
Interim Financial Statement
September 30, 2024 and 2023
Content
Report of the independent auditor on the review of the quarterly information | .................................................1 |
Interim Financial Statement | |
Statements of financial position | 3 |
Statement of Earnings | 5 |
Statement of comprehensive income (loss) | 6 |
Statements of changes in equity | 7 |
Statements of cash flow | 8 |
Statements of value added | 9 |
Notes to the interim financial statements | 10 |
São Paulo Corporate Towers
Av. Presidente Juscelino Kubitschek, 1.909
Vila Nova Conceição
04543-011 - São Paulo - SP - Brasil
Tel: +55 11 2573-3000 ey.com.br
A free translation from Portuguese into English of Independent Auditor's Review Report on Quarterly Information prepared in Brazilian currency in accordance with NBC TG 21 - Interim Financial Reporting and IAS 34 - Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), and the rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of Quarterly Information (ITR)
Independent auditor's review report on quarterly information
The Shareholders and Officers
C&A Modas S.A.
Barueri - SP
Introduction
We have reviewed the accompanying individual and consolidated interim financial information, contained in the Quarterly Information Form (ITR) of C&A Modas S.A. (the "Company") for the quarter ended September 30, 2024, comprising the statement of financial position as at September 30, 2024 and the related statements of profit or loss and of comprehensive income (loss), for the three and nine-month periods then ended, and the statements of changes in equity and cash flows for the nine-month period then ended including the explanatory notes, including material accounting policies and other instructive information.
Responsibilities of management for Interim Accounting Information
Management is responsible for preparation of the individual and consolidated interim financial information in accordance with Accounting Pronouncement NBC TG 21 Interim Financial Reporting, and IAS 34 Interim Financial Reporting, issued by the International Accounting Standards Board (IASB), as well as for the fair presentation of this information in conformity with the rules issued by the Brazilian Securities and Exchange Commission (CVM) applicable to the preparation of the Quarterly Information Form (ITR). Our responsibility is to express a conclusion on this interim financial information based on our review.
Scope of review
We conducted our review in accordance with Brazilian and International Standards on Review Engagements (NBC TR 2410 and ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity, respectively). 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 auditing standards 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.
São Paulo Corporate Towers
Av. Presidente Juscelino Kubitschek, 1.909
Vila Nova Conceição
04543-011 - São Paulo - SP - Brasil
Tel: +55 11 2573-3000 ey.com.br
Conclusion on the individual and consolidated interim financial information
Based on our review, nothing has come to our attention that causes us to believe that the accompanying 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 Form (ITR), and presented consistently with the rules issued by the Brazilian Securities and Exchange Commission (CVM).
Other matters
Statements of value added
The above-mentioned quarterly information includes the individual and consolidated statements of value added (SVA) for the nine-month period ended September 30, 2024, prepared under Company's Management responsibility and presented as supplementary information by IAS 34. These statements have been subject to review procedures performed together with the review of the quarterly information with the objective to conclude whether they are reconciled to the interim financial information and the accounting records, as applicable, and if its format and content are in accordance with the criteria set forth by NBC TG 09 Statement of Value Added. Based on our review, we are not aware of any facts that would lead us to believe that these statements of value added have not been prepared, in all material respects, in accordance with the criteria set forth in this Standard and in a manner consistent with the individual and consolidated interim accounting information taken together.
São Paulo, November 06, 2024.
ERNST & YOUNG
Auditores Independentes S.S. Ltda.
CRC-2SP034519/O
Flávio Serpejante Peppe
Partner
2
C&A Modas S.A.
Statements of Financial Position
On September 30, 2024 and December 31, 2023 (in thousand Reals)
Note | Parent Company | Consolidated | |||
Note | 09/30/2024 | 12/31/2023 | 09/30/2024 | 12/31/2023 | |
Assets | |||||
Current | |||||
Cash and cash equivalents | 6 | 763,291 | 1,130,245 | 949,116 | 1,155,588 |
Bonds and securities | 7 | - | - | 199,023 | 191,587 |
Trade receivables | 8 | 670,871 | 1,054,599 | 1,341,294 | 1,778,421 |
Inventory | 11 | 1,160,576 | 875,238 | 1,160,576 | 875,155 |
Taxes recoverable | 12 | 390,180 | 379,126 | 393,201 | 388,451 |
Derivatives | 32.4 | 571 | 721 | 571 | 721 |
Related parties | 9 | 461 | 323 | 139 | 92 |
Other Assets | 13 | 53,176 | 51,785 | 53,292 | 51,827 |
Total current assets | 3,039,126 | 3,492,037 | 4,097,212 | 4,441,842 | |
Non-current assets | |||||
Long-term assets | |||||
Bonds and securities - FIDC | 7 | 835,455 | 791,352 | - | - |
Deferred taxes | 14 | 534,139 | 535,488 | 525,228 | 535,959 |
Related parties | 9 | - | 19 | - | 19 |
Taxes recoverable | 12 | 1,163,355 | 1,197,839 | 1,163,355 | 1,197,839 |
Judicial deposits | 25.3 | 37,868 | 47,641 | 37,879 | 47,668 |
Other Assets | 13 | 3,628 | 3,219 | 3,628 | 3,219 |
Total long-term assets | 2,574,445 | 2,575,558 | 1,730,090 | 1,784,704 | |
Investments | 15 | 173,469 | 118,249 | - | - |
Property and Equipment | 16 | 731,476 | 763,401 | 731,476 | 763,401 |
Right-of-use assets - leases | 19 | 1,316,670 | 1,462,945 | 1,316,670 | 1,462,945 |
Intangible assets | 17 | 901,211 | 964,493 | 901,412 | 964,764 |
Total non-current assets | 5,697,271 | 5,884,646 | 4,679,648 | 4,975,814 | |
Total assets | 8,736,397 | 9,376,683 | 8,776,860 | 9,417,656 |
3
C&A Modas S.A.
Statements of Financial Position
On September 30, 2024 and December 31, 2023 (in thousand Reals)
Note | Parent Company | Consolidated | |||
Note | 09/30/2024 | 12/31/2023 | 09/30/2024 | 12/31/2023 | |
Net liabilities and equity | |||||
Current | |||||
Labor liabilities | 23 | 241,087 | 230,098 | 243,493 | 231,364 |
Suppliers | 20 | 1,577,156 | 1,172,988 | 1,592,643 | 1,189,225 |
Obligations - Forfait | 21 | 286,511 | 364,709 | 286,511 | 364,709 |
Taxes payable | 24 | 85,096 | 277,772 | 87,651 | 287,249 |
Loans and debentures | 22 | 293,847 | 511,427 | 293,847 | 511,427 |
Related parties | 9 | 127,087 | 79,760 | 120,975 | 71,661 |
Derivatives | 32.4 | 5,901 | 1,392 | 5,901 | 1,392 |
Leases | 19 | 535,754 | 501,642 | 535,754 | 501,642 |
Other liabilities | 24,746 | 20,571 | 48,384 | 41,462 | |
Total current liabilities | 3,177,185 | 3,160,359 | 3,215,159 | 3,200,131 | |
Non-current assets | |||||
Labor liabilities | 23 | 21,756 | 18,740 | 21,756 | 18,740 |
Suppliers | 20 | 524 | 551,248 | 524 | 551,248 |
Taxes payable | 24 | 15,739 | 12,410 | 15,739 | 12,410 |
Loans and debentures | 22 | 1,136,816 | 1,176,427 | 1,136,816 | 1,176,427 |
Leases | 19 | 1,038,825 | 1,209,781 | 1,038,825 | 1,209,781 |
Provisions for tax, civil, and labor risks | 25 | 114,139 | 183,791 | 116,624 | 184,989 |
Other liabilities | 50,641 | 51,211 | 50,641 | 51,211 | |
Total non-current liabilities | 2,378,440 | 3,203,608 | 2,380,925 | 3,204,806 | |
Total liabilities | 5,555,625 | 6,363,967 | 5,596,084 | 6,404,937 | |
Shareholder's Equity | |||||
Capital stock | 26 | 1,847,177 | 1,847,177 | 1,847,177 | 1,847,177 |
Shares in Treasury | (31,301) | (8,498) | (31,301) | (8,498) | |
Capital reserve | 46,736 | 49,879 | 46,736 | 49,879 | |
Profit reserve | 1,124,744 | 1,124,744 | 1,124,744 | 1,124,744 | |
Other comprehensive income | (4,115) | (586) | (4,115) | (586) | |
Accumulated profits | 197,531 | - | 197,531 | - | |
Total controlling shareholders | 3,180,772 | 3,012,716 | 3,180,772 | 3,012,716 | |
Total non-controlling shareholders | - | - | 4 | 3 | |
Total shareholder's equity | 3,180,772 | 3,012,716 | 3,180,776 | 3,012,719 | |
Total liabilities and shareholder's equity | 8,736,397 | 9,376,683 | 8,776,860 | 9,417,656 |
See accompanying notes.
4
C&A Modas S.A.
Statements of earnings
Quarters and nine-month periods ended September 30, 2024 and 2023 (In thousand Reals - R$, except earnings per share)
Parent Company | ||||
Quarter ended | Ended period | |||
07/01/2024 to | 07/01/2023 to | 01/01/2024 to | 01/01/2023 to | |
Note | 09/30/2024 | 09/30/2023 | 09/30/2024 | 09/30/2023 |
Net Revenue | 28 |
Sales of goods and services | |
Financial Products and Services | |
Cost of goods sold and services rendered | 29 |
Sales of goods and services | |
Financial Products and Services | |
Gross profit | |
Operating revenue (expenses): | |
Sales | 29 |
General and administrative | 29 |
Share of profit of subsidiaries | 15 |
Other net operating income (expenses) | 29 |
Profit/(Loss) before financial results | |
Gains (losses) from derivatives | |
Exchange variation | |
Finance expenses | |
Finance income | |
FIDC C&A Pay Earnings | |
Finance results | 30 |
1,713,368 | 1,482,176 | 4,824,454 | 4,256,432 |
1,686,549 | 1,462,965 | 4,737,697 | 4,179,360 |
26,819 | 19,211 | 86,757 | 77,072 |
(821,214) | (745,270) | (2,309,604) | (2,124,700) |
(821,147) | (745,176) | (2,309,389) | (2,124,385) |
(67) | (94) | (215) | (315) |
892,154 | 736,906 | 2,514,850 | 2,131,732 |
(570,013) | (510,617) | (1,656,724) | (1,496,365) |
(224,046) | (193,418) | (630,639) | (557,646) |
7,379 | 10,761 | 20,674 | (17,762) |
(5,653) | 14,653 | 98,120 | 26,170 |
99,821 | 58,285 | 346,281 | 86,129 |
(4,004) | - | (4,004) | - |
5,474 | (462) | (5,508) | 1,137 |
(138,844) | (177,738) | (431,333) | (504,290) |
32,027 | 40,996 | 203,021 | 149,528 |
37,514 | (6,718) | 87,602 | (13,474) |
(67,833) | (143,922) | (150,222) | (367,099) |
Profit/(loss) before income taxes | 31,988 | (85,637) | 196,059 | (280,970) | |
Income taxes | 14 | 10,831 | 41,403 | 1,472 | 114,615 |
Net income (loss) for the period | 42,819 | (44,234) | 197,531 | (166,355) |
See accompanying notes.
5
C&A Modas S.A.
Statements of earnings
Quarters and nine-month periods ended September 30, 2024 and 2023 (In thousand Reals - R$, except earnings per share)
Consolidated | ||||
Quarter ended | Ended period | |||
07/01/2024 to | 07/01/2023 to | 01/01/2024 to | 01/01/2023 to | |
Note | 09/30/2024 | 09/30/2023 | 09/30/2024 | 09/30/2023 |
Net Revenue | 28 |
Sales of goods and services | |
Financial Products and Services | |
Cost of goods sold and services rendered | 29 |
Sales of goods and services | |
Financial Products and Services | |
Gross profit | |
Operating revenue (expenses): | |
Sales | 29 |
General and administrative | 29 |
Net credit losses | 8.5 |
Other net operating income (expenses) | 29 |
Profit/(Loss) before financial results | |
Gains (losses) from derivatives | |
Exchange variation | |
Finance expenses | |
Finance income | |
Earnings from Bonds and Securities | |
Finance results | 30 |
Profit/(loss) before income taxes | |
Income taxes | 14 |
Net income (loss) for the period | |
Attributable to the shareholders: | |
Non-controlling | |
Controlling | |
Basic Profit/(Loss) per share - in R$ | 35 |
Diluted Profit/(Loss) per share - in R$ | 35 |
1,799,811 | 1,542,676 | 5,084,428 | 4,426,214 |
1,687,166 | 1,456,493 | 4,740,348 | 4,172,888 |
112,645 | 86,183 | 344,080 | 253,326 |
(821,302) | (745,433) | (2,309,753) | (2,125,110) |
(821,148) | (745,177) | (2,309,306) | (2,124,278) |
(154) | (256) | (447) | (832) |
978,509 | 797,243 | 2,774,675 | 2,301,104 |
(578,020) | (525,951) | (1,684,225) | (1,562,977) |
(223,986) | (193,567) | (631,279) | (559,840) |
(42,891) | (64,192) | (152,947) | (167,278) |
(5,656) | 14,653 | 98,123 | 25,913 |
127,956 | 28,186 | 404,347 | 36,922 |
(4,004) | - | (4,004) | - |
5,474 | (462) | (5,508) | 1,137 |
(129,044) | (161,097) | (401,927) | (481,710) |
33,154 | 48,693 | 208,707 | 160,971 |
2,293 | 1,941 | 5,196 | 3,098 |
(92,127) | (110,925) | (197,536) | (316,504) |
35,829 | (82,739) | 206,811 | (279,582) |
6,990 | 38,517 | (9,279) | 113,237 |
42,819 | (44,222) | 197,532 | (166,345) |
- | 12 | 1 | 10 |
42,819 | (44,234) | 197,531 | (166,355) |
0.1404 | (0.1441) | 0.6478 | (0.5443) |
0.1366 | (0.1441) | 0.6390 | (0.5443) |
See accompanying notes.
6
C&A Modas S.A.
Statement of comprehensive income (loss)
Quarters and nine-month periods ended September 30, 2024 and 2023 (in thousand Reals - R$)
Parent Company | ||||
Quarter ended | Ended period | |||
07/01/2024 to | 07/01/2023 to | 01/01/2024 to | 01/01/2023 to | |
09/30/2024 | 09/30/2023 | 09/30/2024 | 09/30/2023 | |
Net income (loss) for the period | 42,819 | (44,234) | 197,531 | (166,355) |
Other comprehensive results: | ||||
Gains (losses) from derivatives | (12,381) | 6,821 | (4,659) | 2,920 |
Other comprehensive results (*) | (109) | - | (454) | - |
Tax effects | 4,209 | (2,319) | 1,584 | (993) |
Total comprehensive results to be reclassified | ||||
to results for the period in subsequent periods, | ||||
net of taxes | (8,281) | 4,502 | (3,529) | 1,927 |
Total comprehensive results | 34,538 | (39,732) | 194,002 | (164,428) |
(*) this is driven by the mark-to-market adjustment of C&A Pay SCD LFTs (Financial Treasury Bills).
Consolidated | |||||
Quarter ended | Ended period | ||||
07/01/2024 to | 07/01/2023 to | 01/01/2024 to | 01/01/2023 to | ||
09/30/2024 | 09/30/2023 | 09/30/2024 | 09/30/2023 | ||
Net income (loss) for the period | 42,819 | (44,222) | 197,532 | (166,345) | |
Other comprehensive results: | |||||
Gains (losses) from derivatives | (12,381) | 6,821 | (4,659) | 2,920 | |
Other comprehensive results (*) | (109) | - | (454) | - | |
Tax effects | 4,209 | (2,319) | 1,584 | (993) | |
Total comprehensive results to be reclassified to | |||||
results for the period in subsequent periods, net | |||||
of taxes | (8,281) | 4,502 | (3,529) | 1,927 | |
Total comprehensive results | |||||
Attributable to the shareholders: | 34,538 | (39,720) | 194,003 | (164,418) | |
Non-controlling | - | 12 | 1 | 10 | |
Controlling | 34,538 | (39,732) | 194,002 | (164,428) | |
34,538 | (39,720) | 194,003 | (164,418) |
(*) this is driven by the mark-to-market adjustment of C&A Pay SCD LFTs (Financial Treasury Bills).
See accompanying notes.
7