Interim financial information C&A Modas S.A.
June 30, 2025 and 2024
with Independent auditors' report
C&A Modas S.A.
Interim financial information
June 30, 2025 and 2024
Contents
Independent auditor's report on the review of quarterly information 1
Interim financial information
Statements of financial position 3
Statements of profit or loss 5
Statements of comprehensive income 7
Statements of changes in equity 8
Statements of cash flows 9
Statements of value added 10
Notes to the interim accounting information 11
São Paulo Corporate Towers
Av. Presidente Juscelino Kubitschek, 1.909 Vila Nova Conceição
04543-011 - São Paulo - SP - Brazil
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 and 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 informationThe 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 June 30, 2025, which comprises the statement of financial position as of June 30, 2025 and the related statements of profit or loss and of comprehensive income for the three and six-month periods then ended and of changes in equity and of cash flows for the six-month periods then ended including the explanatory notes, material accounting policies and other instructive information.
Management is responsible for preparation of the individual and consolidated interim financial information in accordance with Accounting Standard CPC 21 Interim Financial Reporting, and IAS 34 Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) (currently referred to by the IFRS Foundation as "IFRS accounting standards"), 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.
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 Accounting Standard CPC 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 six-month period ended June 30, 2025, 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 Accounting Standard CPC 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, August 06, 2025.
ERNST & YOUNG
Auditores Independentes S.S. Ltda. CRC-2SP034519/O
Flávio Serpejante Peppe Partner
Statements of financial position
As of June 30, 2025 and December 31, 2024
(In thousands of reais)
Parent Company Consolidated
Note 06/30/2025 12/31/2024 06/30/2025 12/31/2024
Assets | ||||||
Current assets | ||||||
Cash and cash equivalents | 7 | 782,580 | 1,262,270 | 832,715 | 1,403,225 | |
Bonds and securities | 8 | - | - | 171,162 | 169,310 | |
Trade receivables | 9 | 770,265 | 1,076,795 | 1,444,655 | 1,862,821 | |
Inventories | 12 | 1,159,940 | 1,032,231 | 1,159,940 | 1,032,231 | |
Recoverable taxes | 13 | 483,736 | 469,885 | 487,000 | 470,354 | |
Derivatives | 35.2 | - | 18,255 | - | 18,255 | |
Other assets | 15 | 81,245 | 37,186 | 81,484 | 37,197 | |
Total current assets | 3,277,766 | 3,896,622 | 4,176,956 | 4,993,393 | ||
Non-current assets | ||||||
Long-term assets | ||||||
Bonds and securities - FIDC | 8 | 616,404 | 854,604 | - | - | |
Deferred taxes | 16 | 514,066 | 544,580 | 488,666 | 530,141 | |
Recoverable taxes | 13 | 922,740 | 1,127,692 | 922,740 | 1,127,692 | |
Judicial deposits | 14 | 127,696 | 144,935 | 127,705 | 144,940 | |
Derivatives | 35.2 | 746 | 6,551 | 746 | 6,551 | |
Other assets | 15 | 4,558 | 4,752 | 4,558 | 4,752 | |
Total long-term assets | 2,186,210 | 2,683,114 | 1,544,415 | 1,814,076 | ||
Investment | 17 | 215,149 | 187,647 | - | - | |
Property and equipment | 18 | 840,123 | 823,714 | 840,123 | 823,714 | |
Right-of-use - lease | 21 | 1,454,761 | 1,529,909 | 1,454,761 | 1,529,909 | |
Intangible assets | 19 | 853,649 | 892,807 | 853,649 | 892,807 | |
Total non-current assets | 5,549,892 | 6,117,191 | 4,692,948 | 5,060,506 | ||
Total assets | 8,827,658 | 10,013,813 | 8,869,904 | 10,053,899 | ||
The accompanying notes are an integral part of the interim financial information.
Statements of financial position
As of June 30, 2025 and December 31, 2024
(In thousands of reais)
Parent Company Consolidated
Note 06/30/2025 12/31/2024 06/30/2025 12/31/2024
Liabilities and equity Current liabilities | ||||||
Suppliers | 22 | 1,163,730 | 1,877,357 | 1,176,724 | 1,889,243 | |
Obligations forfait liabilities | 23 | 270,855 | 350,043 | 270,855 | 350,043 | |
Loans and debentures | 24 | 424,660 | 456,541 | 424,660 | 456,541 | |
Leases | 21 | 364,353 | 352,734 | 364,353 | 352,734 | |
Labor obligations | 25 | 261,158 | 276,780 | 263,247 | 279,826 | |
Dividends and interest on own capital payable | 30 | 101,934 | 101,934 | 101,934 | 101,934 | |
Taxes payable | 26 | 138,800 | 373,489 | 143,236 | 375,899 | |
Derivatives | 35.2 | 23,219 | 319 | 23,219 | 319 | |
Other liabilities | 28 | 18,508 | 24,033 | 38,084 | 43,733 | |
Total current liabilities | 2,767,217 | 3,813,230 | 2,806,312 | 3,850,272 | ||
Non-current liabilities Suppliers | 22 | 6,230 | 218 | 6,230 | 218 | |
Loans and debentures | 24 | 843,176 | 1,041,472 | 843,176 | 1,041,472 | |
Leases | 21 | 1,387,101 | 1,474,142 | 1,387,101 | 1,474,142 | |
Labor obligations | 25 | 16,469 | 20,310 | 16,469 | 20,310 | |
Derivatives | 35.2 | 129 | - | 129 | - | |
Taxes payable | 26 | 14,694 | 15,389 | 14,694 | 15,389 | |
Provision for tax, civil and labor risks | 27 | 281,920 | 290,012 | 285,069 | 293,052 | |
Other liabilities | 28 | 55,034 | 50,556 | 55,034 | 50,556 | |
Total non-current liabilities | 2,604,753 | 2,892,099 | 2,607,902 | 2,895,139 | ||
Total liabilities | 5,371,970 | 6,705,329 | 5,414,214 | 6,745,411 | ||
Equity Capital | 29 | 1,847,177 | 1,847,177 | 1,847,177 | 1,847,177 | |
Treasury shares | 29 | (48,190) | (34,365) | (48,190) | (34,365) | |
Capital reserve | 23,139 | 49,287 | 23,139 | 49,287 | ||
Profit reserve | 1,439,134 | 1,439,134 | 1,439,134 | 1,439,134 | ||
Comprehensive income | (9,959) | 7,251 | (9,959) | 7,251 | ||
Retained earnings | 204,387 | - | 204,387 | - | ||
Total controlling interest | 3,455,688 | 3,308,484 | 3,455,688 | 3,308,484 | ||
Non-controlling interest | - | - | 2 | 4 | ||
Total equity | 3,455,688 | 3,308,484 | 3,455,690 | 3,308,488 | ||
Total liabilities and equity 8,827,658 10,013,813 8,869,904 10,053,899
The accompanying notes are an integral part of the interim financial information.
Parent Company
Quarter ended Semester ended
04/01/2025- 04/01/2024- | 01/01/2025- | 01/01/2024- |
Note 06/30/2025 06/30/2024 | 06/30/2025 | 06/30/2024 |
Net revenue | 31 | 2,000,879 | 1,748,221 | 3,535,422 | 3,111,086 | |
Sale of goods and services | 1,977,618 | 1,716,772 | 3,489,557 | 3,051,148 | ||
Financial products and services | 23,261 | 31,449 | 45,865 | 59,938 | ||
Cost of goods sold and services rendered | 32 | (891,533) | (805,700) | (1,631,515) | (1,488,390) | |
Sale of goods and services | (891,478) | (805,628) | (1,631,402) | (1,488,242) | ||
Financial products and services | (55) | (72) | (113) | (148) | ||
Gross profit | 1,109,346 | 942,521 | 1,903,907 | 1,622,696 | ||
Operating revenues (expenses): Sales | 32 | (635,484) | (565,009) | (1,195,805) | (1,086,711) | |
General and administrative | 32 | (251,096) | (203,197) | (469,023) | (406,593) | |
Equity in net income of subsidiaries | 17 | 17,333 | 8,769 | 27,436 | 13,295 | |
Other operating income (expenses), net | 32 | 141,577 | 39,460 | 157,974 | 103,773 | |
Profit before financial results | 381,676 | 222,544 | 424,489 | 246,460 | ||
Income from exchange rate change | (3,592) | (9,051) | (1,376) | (10,982) | ||
Financial expenses | (169,629) | (139,135) | (326,066) | (292,489) | ||
Financial revenues | 59,138 | 31,523 | 115,998 | 170,994 | ||
Income (loss) FIDC C&A Pay | 15,763 | 8,507 | 61,800 | 50,089 | ||
Financial results | 33 | (98,320) | (108,156) | (149,644) | (82,388) | |
Profit before income taxes | 283,356 | 114,388 | 274,845 | 164,072 | ||
Income taxes | 16 | (83,043) | (30,529) | (70,458) | (9,359) | |
Profit for the period | 200,313 | 83,859 | 204,387 | 154,713 |
The accompanying notes are an integral part of the interim financial information.
Consolidated
Quarter ended Semester ended
04/01/2025- 04/01/2024- | 01/01/2025- | 01/01/2025- |
Note 06/30/2025 06/30/2024 | 06/30/2025 | 06/30/2024 |
Net revenue | 31 | 2,058,463 | 1,831,609 | 3,670,545 | 3,284,617 | |
Sale of goods and services | 1,972,859 | 1,714,042 | 3,488,481 | 3,053,182 | ||
Financial products and services | 85,604 | 117,567 | 182,064 | 231,435 | ||
Cost of goods sold and services rendered | 32 | (891,586) | (805,792) | (1,631,670) | (1,488,451) | |
Sale of goods and services | (891,478) | (805,627) | (1,631,402) | (1,488,158) | ||
Financial products and services | (108) | (165) | (268) | (293) | ||
Gross profit | 1,166,877 | 1,025,817 | 2,038,875 | 1,796,166 | ||
Operating revenues (expenses): Sales | 32 | (636,834) | (572,192) | (1,203,606) | (1,106,205) | |
General and administrative | 32 | (251,412) | (203,526) | (469,648) | (407,293) | |
Credit losses, net | 9.6 | (40,153) | (69,052) | (69,793) | (110,056) | |
Other operating income (expenses), net | 32 | 140,792 | 39,462 | 157,189 | 103,779 | |
Profit before financial results | 379,270 | 220,509 | 453,017 | 276,391 | ||
Income from exchange rate change | (3,592) | (9,051) | (1,376) | (10,982) | ||
Financial expenses | (150,999) | (128,146) | (296,748) | (272,883) | ||
Financial revenues | 58,650 | 33,738 | 115,313 | 175,554 | ||
Earnings from Bonds and Securities | 8,865 | 1,950 | 18,592 | 2,903 | ||
Financial results | 33 | (87,076) | (101,509) | (164,219) | (105,408) | |
Profit before income taxes | 292,194 | 119,000 | 288,798 | 170,983 | ||
Income taxes | 16 | (91,882) | (35,140) | (84,414) | (16,269) | |
Profit for the period | 200,312 | 83,860 | 204,384 | 154,714 | ||
Attributable to shareholders: Non-controlling shareholders | (1) | 1 | (3) | 1 | ||
Controlling shareholders | 200,313 | 83,859 | 204,387 | 154,713 | ||
Basic earnings per share - in R$ | 38 | 0.6613 | 0.2750 | 0.6747 | 0.5074 | |
Basic/diluted earnings per share - in R$ | 38 | 0.6464 | 0.2675 | 0.6018 | 0.4992 |
The accompanying notes are an integral part of the interim financial information.
Statements of comprehensive income
Quarters end six-month periods ended June 30, 2025 and 2024
(In thousands of reais - R$)
Parent Company
04/01/2025- 04/01/2024- | 01/01/2025- | 01/01/2024- | ||||
Note 06/30/2025 06/30/2024 | 06/30/2025 | 06/30/2024 | ||||
Profit for the period Other comprehensive income: Income from derivatives | 200,313 1,740 | 83,859 6,311 | 204,387 (25,533) | 154,713 7,722 | ||
Other comprehensive income | (a) | (494) | (397) | (358) | (345) | |
Tax effects | (592) | (2,146) | 8,681 | (2,626) | ||
Total comprehensive income to be reclassified to income (loss) for the year in subsequent periods, net of taxes | 654 | 3,768 | (17,210) | 4,751 | ||
Total comprehensive income | 200,967 | 87,627 | 187,177 | 159,464 | ||
(a) The amount refers to the mark-to-market adjustment of the Financial Treasury Bills of C&A Pay SCD.
Consolidated
04/01/2025- 04/01/2024- | 01/01/2025- | 01/01/2024- | ||||
Note 06/30/2025 06/30/2024 | 06/30/2025 | 06/30/2024 | ||||
Profit for the period Other comprehensive income: Income from derivatives | 200,312 1,740 | 83,860 6,311 | 204,384 (25,533) | 154,714 7,722 | ||
Other comprehensive income | (a) | (494) | (397) | (358) | (345) | |
Tax effects | (592) | (2,146) | 8,681 | (2,626) | ||
Total comprehensive income to be reclassified to income (loss) for the year in subsequent periods, net of taxes | 654 | 3,768 | (17,210) | 4,751 | ||
Total comprehensive income attributable to shareholders: Non-controlling shareholders | (1) | 1 | (3) | 1 | ||
Controlling shareholders | 200,967 | 87,627 | 187,177 | 159,464 | ||
200,966 | 87,628 | 187,174 | 159,465 | |||
The amount refers to the mark-to-market adjustment of the Financial Treasury Bills of C&A Pay SCD.
The accompanying notes are an integral part of the interim financial information.
C&A Modas S.A.
Statements of changes in equity
Quarters end six-month periods ended June 30, 2025 and 2024
(In thousands of reais - R$)
Capital reserve Profit reserve
Other comprehensiv
e income
Total
Treasury
Capital
Other capital
Legal
Unrealized profit
Tax incentive
Investment
Other comprehensiv
Retained earnings
controlling shareholder
Non-controlling
Total shareholder's
Note Capital shares reserve reserves
reserve reserves reserves reserve
e income
(losses) s
interest
equity
As of December 31, 2023 - Resubmitted (*) 1,847,177
(8,498)
10,516
39,363
65,208
75,720
14,560
947,612
(586)
-
2,991,072
3
2,991,075
Equity instruments granted - Share-based 11
-
-
6,907
-
-
-
-
-
-
6,907
-
6,907
Repurchase of shares -
(29,300)
-
-
-
-
-
-
-
-
(29,300)
-
(29,300)
Settled shares (i) -
Destination of income:
Net income for the period -
6,497
-
-
-
(13,950)
-
-
-
-
-
-
-
-
-
-
-
-
154,713
(7,453)
154,713
-
1
(7,453)
154,714
Other comprehensive income -
-
-
-
- - - -
4,751
4,751
4,751
June 30, 2024 1,847,177
(31,301)
10,516
32,320
65,208
75,720
14,560
947,612
4,165
154,713
3,120,690
4
3,120,694
December 31, 2024 1,847,177
(34,365)
10,516
38,771
87,832
75,720
36,677
1,238,905
7,251
-
3,308,484
4
3,308,488
Equity instruments granted - Share-based 11
compensation -
-
-
7,297
-
-
-
-
-
-
7,297
-
7,297
Repurchase of shares -
(36,039)
-
-
-
-
-
-
-
-
(36,039)
-
(36,039)
Settled shares (i) -
22,214
-
(33,445)
-
-
-
-
-
-
(11,231)
-
(11,231)
Destination of income:
Net income for the period -
-
-
-
-
-
-
-
-
204,387
204,387
(2)
204,385
Other comprehensive income -
-
-
-
- - - -
(17,210)
-
(17,210)
-
(17,210)
June 30, 2025
1,847,177
(48,190)
10,516
12,623
87,832
75,720
36,677
1,238,905
(9,959)
204,387
3,455,688
2
3,455,690
compensation -
In March 2024 and April 2025, the shares of the PSU 2021 compensation plan and the 2022 plan, respectively, were settled (see changes in Note 11). (*) The statement presents the effects mentioned in Note 3.4.
The accompanying notes are an integral part of the interim financial information.
8
Parent Company Consolidated
Note 06/30/2025 06/30/2024
06/30/2025
06/30/2024
Operating activities
Resubmitted (*)
Resubmitted (*)
Income before taxes on income
Adjustment to reconcile income (loss) before taxes with cash flow:
Formation (Reversal) of expected credit losses
9.6
274,845
(14,266)
164,072
209
288,798
52,104
170,983
110,505
Present value adjustment of trade receivables, inventories and suppliers
3,426
86
3,426
86
Share-based compensation expenses
11
7,297
6,907
7,297
6,907
Formation of losses on inventories
12.3
45,335
41,125
45,335
41,125
(Gain) Recognition of tax lawsuits
13.2.1.d
(36,495)
(182,707)
(36,495)
(182,707)
Equity in net income of subsidiaries
17.2
(27,436)
(13,295)
-
-
Depreciation and amortization
18.2.1 and
19.3
170,136
175,368
170,136
175,414
Formation (Reversal) of impairment losses
20.1
(6,926)
15,750
(6,926)
15,750
Income (loss) on the sale or write-off of property, plant and equipment and intangible assets
12,103 310 12,888 310
Amortization of right-of-use
21.3.1
185,176
181,138
185,176
181,138
Write-off of lease liability
21.3.1
(7,335)
(4,448)
(7,335)
(4,448)
Lease interest
21.3.1
93,803
81,442
93,803
81,442
Expenses with loans and debentures
24.3
87,720
103,085
87,720
103,085
Interest on trade receivables
33
42,119
32,783
42,119
32,783
Operations with derivatives
21,556
-
21,556
-
Formation of losses for tax, civil and labor risks
21,185
(36,893)
21,294
(34,771)
Restatement of judicial deposits
(3,736)
(6,371)
(3,736)
(6,371)
Yield from investments in bonds and securities
Changes in assets and liabilities:
Trade accounts receivable
-
322,987
-
277,785
(18,587)
368,319
(7,871)
190,522
Inventories
(181,864)
(253,861)
(181,864)
(253,944)
Suppliers
(31,141)
(152,114)
(30,033)
(161,288)
Bradescard supplier (**)
22.2
(650,648)
-
(650,648)
-
Obligations forfait liabilities
(79,188)
(78,235)
(79,188)
(78,235)
Taxes, duties and contributions
18,680
33,282
18,229
31,763
Labor obligations
(30,694)
(29,545)
(31,651)
(28,829)
Tax, civil and labor lawsuits
(29,277)
(18,821)
(29,277)
(20,041)
Judicial deposits
20,975
12,166
20,971
12,181
Other liabilities
(6,418)
750
(6,541)
5,815
Other assets
(43,865)
(15,750)
(44,093)
(15,818)
Bonds and securities
238,200
(6,588)
16,736
(5,512)
Income tax and social contribution paid
(57,731)
(49,293)
(61,045)
(49,475)
Cash flow from operating activities
358,523
278,337
268,488
310,499
Investment activities
Acquisition of property, plant and equipment
18
(144,839)
(31,367)
(144,839)
(31,367)
Acquisition of intangible assets
19
(72,574)
(68,377)
(73,359)
(68,376)
Receipt from sales of property, plant, and equipment
41
52
41
52
Cash flow invested in investing activities
(217,372)
(99,692)
(218,157)
(99,691)
Financing activities
Transaction costs of loans/debentures
24
(267)
(434)
(267)
(434)
Payment of principal on loans
24
(228,382)
(360,000)
(228,382)
(360,000)
Interest paid on loans
24
(89,248)
(110,083)
(89,248)
(110,083)
Payment of lease principal and interest
21
(266,905)
(256,450)
(266,905)
(256,450)
Repurchase of shares
29.3
(36,039)
(29,300)
(36,039)
(29,300)
Cash flow from financing activities
(620,841)
(756,267)
(620,841)
(756,267)
Net increase in cash and cash equivalents
(479,690)
(577,622)
(570,510)
(545,459)
Cash and cash equivalents at the beginning of the year
1,262,270
1,130,245
1,403,225
1,155,588
Cash and cash equivalents at the end of the year
(*) The statement presents the effects mentioned in Note 3.4.
782,580
552,623
832,715
610,129
(**) Payment relating to the acquisition of the right to operate financial services, also known as "Balcão Bradesco" (Note 2.2).
The accompanying notes are an integral part of the interim financial information.
Parent Company Consolidated
06/30/2025
06/30/2024
06/30/2025
06/30/2024
Revenues
Sale of goods, products and services
4,696,528
4,110,026
4,834,448
4,285,734
Other operating revenues
180,162
93,039
178,216
94,282
Provision, reversal, and loss of receivables
51
171
(69,742)
(109,885)
4,876,741
4,203,236
4,942,922
4,270,131
Inputs acquired from third parties
Cost of products, good and services sold
(1,604,408)
(1,456,816)
(1,604,408)
(1,456,733)
Materials, energy, outsourced services and other
Provision, reversal, and loss on other assets
(586,871)
(19,238)
(441,053)
(40,695)
(589,146)
(20,023)
(453,307)
(40,695)
(2,210,517)
(1,938,564)
(2,213,577)
(1,950,735)
Gross value added
2,666,224
2,264,672
2,729,345
2,319,396
Depreciation and amortization
(170,193)
(175,368)
(170,193)
(175,414)
Depreciation of right-of-use
(185,175)
(181,138)
(185,175)
(181,138)
Retentions
(355,368)
(356,506)
(355,368)
(356,552)
Net value added produced
2,310,856
1,908,166
2,373,977
1,962,844
Value added received through transfers
Equity in the results of subsidiaries
27,436
13,295
-
-
Financial revenues
217,968
242,816
175,953
201,369
245,404
256,111
175,953
201,369
Total value added payable
2,556,260
2,164,277
2,549,930
2,164,213
Distribution of value added
Personnel and charges
523,387
470,005
528,703
476,948
Direct remuneration
373,143
348,379
377,345
353,983
Benefits
78,057
75,634
78,598
75,954
FGTS (Severance Pay Fund)
33,486
31,344
33,835
31,565
Other
38,701
14,648
38,925
15,446
Taxes, fees and contributions
1,352,839
1,094,597
1,370,513
1,107,192
Federal
497,294
371,253
516,420
382,177
State
823,936
691,191
821,991
692,430
Municipal
31,609
32,153
32,102
32,585
Third-party capital compensation
475,647
444,962
446,330
425,359
Rents
117,440
114,716
117,440
114,716
Financial expenses
358,207
330,246
328,890
310,643
Remuneration of own capital
204,387
154,713
204,384
154,714
Retained profits
204,387
154,713
204,387
154,713
Non-controlling interest in retained earnings
-
-
(3)
1
Distribution of value added
2,556,260
2,164,277
2,549,930
2,164,213
The accompanying notes are an integral part of the interim financial information.
-
Operations
C&A Modas S.A. (hereinafter referred to as "Company" or "Parent Company") has its registered office located at Alameda Araguaia, No. 1,222 - Barueri - São Paulo - Brazil. The Company is a publicly-held corporation, holding 45.04% of the shares traded on B3 (São Paulo - Brazil) under the ticker "CEAB3" and its Parent Company is COFRA Holding AG, based in Switzerland.
C&A Modas and its subsidiaries, referred to collectively as "Group" or "Consolidated, are mainly engaged in the following activities:
Retail trading:
Sale of goods in brick-and-mortar stores and online. The portfolio includes apparel, footwear, accessories, cell phones, watches, jewelry, cosmetics, among others.
Financial services:
Intermediation of credit granted to finance purchases.
Issuance of credit cards (private label) and granting of personal loans.
Intermediation in brokering and promoting the distribution of insurance, saving bonds, and related products offered by insurers and other third-parties offering such products.
Proprietary payment institution activities, which involves processing financial transactions and related services.
The Group sells its merchandise in 333 stores (332 stores on December 31, 2024), supplied by 3 distribution centers in the states of São Paulo, Rio de Janeiro, and Santa Catarina, as well as one logistics operation. The Group also sells its goods through e-commerce services.
The non-financial data included in these Parent Company and Consolidated statements of financial position, such as the number of stores and distribution centers, among others, have not been subject to audit or review by our independent auditors.
-
Transactions and significant events
Sale of the rights to the Bradescard branded card portfolio
On June 23, 2025, according to the Material Fact disclosed to the market, the Company signed the Transaction and Termination Agreement of the Partnership Agreement with Banco Bradesco S.A. and Banco Bradescard S.A., through which it terminated the partnership maintained between the parties since 2009. Under the terms of this document, the Company sold the rights related to the Bradescard card portfolio for the amount of R$ 170,000.
This amount was recorded as other operating revenues, net of taxes.
Settlement of amounts owed to Bradescard
Also on June 23, 2025, the Company settled the amounts owed to Banco Bradesco S.A., relating to the repurchase of the rights to offer financial products and services to its clients, which were
operated exclusively by Banco Bradesco S.A. and Banco Bradescard S.A. The amount of R$ 650,648 was recorded in the suppliers account and the original due date was July 31, 2025 (Note 22.2).
-
Basis of preparation
The Group's individual and consolidated interim accounting information for the quarter ended June 30, 2025 was prepared in accordance with accounting practices adopted in Brazil, pursuant to Brazilian Accounting Standard NBC TG 21 (R4) - Interim Financial Reporting issued by the Federal Accounting Council ("CFC"), which is correlated to International Financial Reporting Standard (IFRS) IAS 34 - Interim Financial Reporting Standards issued by the International Accounting Standards Board - IASB, and guidelines issued by the Brazilian Securities and Exchange Commission ("CVM").
All relevant information specific to the parent company and consolidated financial information, and only such information, is being evidenced, and which corresponds to the information used by the Management in Group's activities' management, as Technical Guidance OCPC 07.
The issuance of individual and consolidated interim financial information for the quarter ended June 30, 2025, was authorized by the Board of Directors on August 6, 2025.
Measurement basis and going concern assumption
The individual and consolidated interim financial information has been prepared based on the historical cost, except for certain financial instruments measured at fair value, and based on the going concern assumption of the operations of the consolidated companies.
Management assessed the ability of the Company and its subsidiaries to continue as a going concern and believes that they have the necessary resources to allow the going concern of its business for the future. Additionally, Management is not aware of any material uncertainty that may generate significant doubts about its ability to continue operating. Thus, this parent company and consolidated financial information was prepared based on the going concern assumption.
Functional and presentation currency
The parent company and consolidated interim financial information is being presented in thousands of reais, functional and presentation currency of the Company and its subsidiaries. Transactions in foreign currency are initially recorded at the exchange rate of the functional currency in force on the date of transaction. Monetary assets and liabilities denominated in foreign currency are translated into the foreign exchange rate of the functional currency in force on the balance sheet date. All differences are reported in the statement of income.
Statement of value added - DVA
The presentation of the Statement of Value Added (SVA), parent company and consolidated, is required by the Brazilian Accounting Standard NBC TG 09 - Statement of Value Added - applicable to publicly-hold companies. The IFRS do not require the presentation of this statement. Consequently, according to IFRS, this statement is presented as supplementary information, without
prejudice to the set of interim financial information. The purpose of the SVSA is to disclose the wealth generated by the Group during the quarter, and well demonstrating how it was distributed among the various agents.
Restatement of interim financial information for better presentation
After the disclosure of the interim financial information for the quarter ended June 30, 2024, management has identified the need to refine the presentation of certain schedules and explanatory notes to enhance the clarity and consistency of the financial disclosures:
Statement of cash flows
Interest with trade payables: The interest incurred and not paid to suppliers, previously presented under "suppliers" has been reclassified to "interest on trade payables." This adjustment impacted only the changes between lines in the statement of cash flows, without affecting the generation of operational cash flow.
Related party transactions: The balances of transactions with related parties, which were previously presented under "Related parties", have been reclassified to accounts that reflect the nature of the operation. This adjustment also impacted only the changes between the captions in the statement of cash flows, without affecting the generation of operational cash flow.
Parent Company
Consolidated
Operating activities
Disclosed
06/30/2024
Adjustment
Resubmitted (*)
Disclosed
06/30/2024
Adjustment
Resubmitted (*)
Interest on trade receivables
-
32,783
32,783
-
32,783
32,783
Changes in assets and liabilities:
Trade accounts receivable
277,840
(55)
277,785
190,528
(6)
190,522
Related parties
6,656
(6,656)
-
(2,670)
2,670
-
Other receivables
(15,778)
28
(15,750)
(15,846)
28
(15,818)
Suppliers (126,014) (26,100) (152,114) (125,813) (35,475) (161,288)
Taxes, duties and contributions
32,371
(2,888)
29,483
30,852
(2,888)
27,964
Income tax and social contribution
paid
(52,181)
2,888
(49,293)
(52,363)
2,888
(49,475)
Cash flow from operating activities
278,337
-
278,337
310,499
-
310,499
(*) The statement presents the effects mentioned in Note 3.4.
Other assets
Management has revised the presentation of the explanatory note related to the 'Other Assets' group and, in order to more accurately reflect the economic nature of the balances, has resubmitted certain line items.
Parent Company
Consolidated
12/31/2024
12/31/2024
Disclosed
Adjustment
Resubmitted (*)
Disclosed
Adjustment
Resubmitted (*)
Prepaid expenses - technology services
15,458
3,721
19,180
15,458
3,721
19,180
Prepaid expenses - sundry services
7,041
(84)
6.956
7,041
(84)
6,956
Other receivables
4,919
(3,637)
1,282
4,919
(3,637)
1,282
41,938
-
41,938
41,949
-
41,949
37,186
37,186
37,197
37,197
4,752
4,752
4,752
4,752
Current assets
Non-current assets
(*) The statement presents the effects mentioned in Note 3.4.
C&A Modas S.A.
Notes to the interim accounting information June 30, 2025 and 2024
(In thousands of reais - R$, unless otherwise indicated)
Statement of changes in equity
Due to the restatement of the statement of profit or loss for the year 2023, as a result of the corrections of the lease balances, the Group is restating the opening balance of the Statement of Changes in Equity for 2024.
Capital reserve
Other
Other comprehensive
income Other
Retained
Total
Non-
Adjust
Share
Treasury
Capital
capital
Profit
comprehensive
earnings
controlling
controlling
Total
ment capital shares reserve reserves
reserves
income
(losses) shareholders interest equity
January 1, 2024
(a)
1,847,177
(8,498)
10,516
39,363
1,124,744
(586)
-
3,012,716
3
3,012,719
Adjustments for correction of errors, net of taxes
(a)
-
-
-
-
(21,644)
-
(21,644)
-
(21,644)
January 1, 2024 - Resubmitted (*)
1,847,177
(8,498)
10,516
39,363
1,103,100
(586)
2,991,072
3
2,991,075
Equity instruments granted - Share-based compensation
-
-
-
6,907
-
-
-
6,907
-
6,907
Repurchase of shares
-
(29,300)
-
-
-
-
-
(29,300)
-
(29,300)
Settled shares
-
6,497
-
(13,950)
-
-
-
(7,453)
-
(7,453)
Use of income:
Net income for the year
-
-
-
-
-
-
154,713
154,713
1
154,714
Other comprehensive income
-
-
-
-
-
4,751
-
4,751
-
4,751
June 30, 2024
1,847,177
(31,301)
10,516
32,320
1,103,100
4,165
154,670
3,120,691
4
3,120,695
(*) The statement presents the effects mentioned in Note 3.4.
15
-
Consolidation basis
The year of the subsidiaries coincides with that of the Parent Company and the accounting practices were applied uniformly for the subsidiaries. When necessary, adjustments are made to the subsidiaries' financial statements to align their accounting policies with the Company's accounting policies. All transactions and balances between members of the same economic group are fully eliminated in the consolidation. In the parent company financial statements, the investments of the Company in its subsidiaries are accounted for under the equity method.
The consolidated financial statements include the operations of the Company, its subsidiaries, and the FIDC C&A Pay investment fund, considering that C&A Modas is the sole holder of the shares and is exposed to the risks and rewards of the fund.
Direct subsidiaries
-
Operations
Indirect subsidiaries
Investment fund
Interest | Orion | C&A Pay Holdin g | C&A Pay SCD | C&A Pay FIDC | ||||
06/30/2025 | 99.99% | 99.99% | 99.99% | 100.00% | ||||
12/31/2024 | 99.99% | 99.99% | 99.99% | 100.00% |
Orion Instituição de Pagamento S.A. ("Orion")
Orion Instituição de Pagamento S.A is engaged in carrying out activities as a payment arrangement institution, providing payment services in the modalities of electronic currency issuer, post-paid payment instrument issuer, acquirer, sub-acquirer, and payment transaction initiator, among other activities related to a payment institution.
C&A Pay Holding Financeira Ltda ("C&A Pay Holding")
C&A Pay Holding Financeira Ltda is engaged in holding equity interests in financial institutions belonging to the C&A Group. The company has direct corporate control of C&A Pay Sociedade de Crédito Direto S.A., a financial institution authorized by BACEN to operate as a direct credit granting agent to its end consumers and is thus subject to the operating rules and regulations established by this regulatory body.
C&A Pay Sociedade de Crédito Direto S.A. ("C&A Pay SCD")
C&A Pay Sociedade de Crédito Direto S.A. is a financial institution authorized to operate by BACEN as a direct credit granting institution to its end consumers and is therefore subject to the rules established by this regulatory body.
C&A Pay Fundo de Investimento em Direitos Creditórios não padronizados ("C&A Pay FIDC")
On May 2, 2023, the FIDC C&A Pay - Fundo de Investimento em Direitos Creditórios Não Padronizados started operating, structured with C&A Modas as the sole shareholder. On that occasion, the Fund acquired the loan portfolio linked to C&A Pay, which until then had been the responsibility of the company Orion Instituição de Pagamento. As of May 2023, the management and credit granting of C&A Pay was transferred to Sociedade de Crédito Direto (SCD) C&A Pay, which started operating as the originator of the assets and responsible for assigning the credit rights to the fund.
-
Material accounting policies
The material accounting policies adopted in the preparation of these financial statements, parent company and consolidated, are presented in the respective Notes.
New or reviewed pronouncements applied for the first time in 2025
Management assessed the standards, guidelines, and accounting pronouncements that came into effect for the first time starting from the current period beginning on January 1, 2025, and concluded that they do not have a significant impact on the financial statements.
CPC 18 (R3) - Investment in associated company and Joint Venture
In September 2024, the Brazilian Securities and Exchange Commission (CVM) issued Resolution 211, which makes it mandatory for publicly-held companies to adopt Technical Pronouncement CPC 18 (R3) - Investment in Associates and Joint Ventures, issued by the CPC, as per Annex "A" of the Resolution.
The regulation came into effect on January 1, 2025, applying to the years beginning on or after that date, and revoking CVM Resolution 118, and it will not have an impact on our statements.
ICPC 09 - Individual, Separate and Consolidated Financial Statements
CVM Resolution 212, published in September 2024, makes the Technical Interpretation ICPC 09 (R3) mandatory for publicly-held companies, applicable to individual, separate, and consolidated financial statements.
The standard became effective on January 1, 2025, revoking the CVM Resolution 124. It aims to ensure consistency and transparency in accounting practices, as well as aligning Brazilian standards with the best international practices. This standard will have no impact on our statements, since we already apply this methodology.
CPC 2 (R2) -The Effects of Changes in Foreign Exchange Rates and CPC 37 (R1) - First-Time Adoption of International Accounting Standards
In September 2024, the Brazilian Securities and Exchange Commission (CVM) issued Resolution 213, making it mandatory for publicly-held companies to prepare a Review Document of Technical Pronouncement 27, issued by the CPC, which presents changes to Technical Pronouncements CPC 2 (R2) - The Effects of Changes in Foreign Exchange Rates and CPC 37 (R1) - First-time Adoption of International Accounting Standards.
The regulation came into effect on January 1, 2025, applying to the years beginning on or after that date, and will not impact our statements.
Amendment OCPC 10 - Carbon Credits (tCO2e), Emission Allowances, and Decarbonization Credits (CBIO)
CVM Resolution 223 makes it mandatory for publicly-held companies to follow OCPC 10, which directs the accounting treatment of carbon credits (tCO2e), emission allowances, and decarbonization credits (CBIO) for entities operating in the Brazilian capital market, aiming to ensure the consistency of financial statements and allow their connection with the sustainability financial report approved by CVM Resolution 193/23.
The Resolution became effective as of January 1, 2025, and the Company does not expect any impacts on its disclosures.
CVM Resolution 197/2023 -Pillar Two Model Rules
In an effort to bring national legislation into line with global rules against the erosion of the tax base (BEPS - Pillar II project), under the terms of the Organization for Economic Cooperation and Development (OECD), Law 15079/24 was enacted. This legislation provides for that, according to the defined calculation criteria, whenever the combined rate of the Corporate Income Tax (IRPJ) and the Social Contribution on Net Profit (CSLL) is less than 15%, a surcharge will apply to ensure that the minimum taxation percentage is reached. This rule is effective as of January 2025, and the additional payment is required in the following year. Based on the most recent financial projections, the Company estimates that its effective tax rate will be above the minimum threshold required. Thus, the levy of the CSLL surcharge provided for in Law 15079/24 is not expected as of the year 2025.
New pronouncements, but not yet effective
CBPS 1/ IFRS S1 - General Requirements for Disclosure of Sustainability-related Financial Information
The standard aims to require entities to disclose information on risks and opportunities related to sustainability, aiming to provide relevant data to the main users of general purpose financial reports, supporting decision-making regarding the provision of resources to the entity.
CBPS 2 / IFRS 2 - Climate-related disclosures
This standard aims to establish requirements for the identification, measurement, and disclosure of information regarding climate-related risks and opportunities. This information should be useful to the main users of general purpose financial reports, helping them to make decisions about providing resources to the entity.
The Company is assessing the possible early adoption of the CBPS 1 and CPBS 2 standards.
Standard IFRS 18 - Presentation and Disclosure of Financial Statements
The standard aims to enhance the presentation of financial statements, with special emphasis on the statement of profit or loss, by requiring the classification of revenues and expenses into the following categories: operating activities, investing, financing, income taxes, and discontinued operations.
Furthermore, the standard requires the disclosure, through Notes, of performance measures defined by management - subtotals of revenues and expenses that are not specified in the draft or in other pronouncements, interpretations, or guidelines issued by the CPC - but that are used in public communications to express management's perspective on certain aspects of the entity's financial performance.
The standard also introduces new principles for the aggregation and disaggregation of information, both in the presentation of the financial statements and in the respective Notes.
Standard will become effective on January 1, 2027. The Company is assessing the requirements and preparing for the implementation of this change.
-
Significant judgments, estimates and assumptions
The accounting estimates in the preparation of interim accounting information were based on objective and subjective factors, with a basis on Management's judgment for determination of the adequate amount to be recorded in the interim financial statements. The settlement of transactions involving these estimates may result in significantly different amounts described in the interim financial information due to the probabilistic treatment inherent to the estimation process. Significant items subject to these estimates and assumptions include:
determination of useful life of property, plant and equipment and intangible assets;
analysis of recovery of values of property, plant and equipment and intangible assets;
estimated credit losses;
estimated losses in inventories;
realization of income and social contribution taxes;
rates and terms applied in determining the present value adjustment of assets and liabilities;
provision for tax, civil and labor risks;
determination of fair value of derivative financial instruments;
provision for restoring stores to their original condition;
short- and long-term incentives - estimate of target achievement and pricing based on mathematical models;
determination of the incremental interest rates and term of the leases to be used for accounting the cash flows of lease liabilities.
The measurement of the provision for mass civil and labor lawsuits is determined by applying the historical average of amounts disbursed and the loss ratio, considering the stage of the proceedings. Labor claims in the enforcement phase are provisioned based on the updated amounts of the claims, according to calculations prepared by the accounting advisors.
-
Cash and cash equivalents
Material accounting policy
Cash equivalents are maintained for the purpose of meeting short-term cash commitments rather than for investment or other purposes. The Group considers cash equivalents, a financial investment readily convertible, redeemable with the issuer itself into known amounts of cash and subject to an insignificant risk of change of value. Consequently, an investment normally qualifies as cash equivalent when it has short-term maturity; for example, three months or less, as of the transaction date.
Composition of cash and cash equivalents
Parent Company Consolidated
Remuneration 06/30/2025 12/31/2024 06/30/2025 12/31/2024
Cash
4,670
5,368
4,670
5,368
Banks
15,008
23,879
45,160
146,288
Cash equivalents:
Interest bearing account
2%−10% CDI
28,905
75,993
29,031
76,037
Bank deposit certificate (*)
97%-103% CDI
733,997
1,157,030
753,854
1,175,532
782,580
1,262,270
832,715
1,403,225
(*) Bank Deposit Certificates ("CDBs") can be redeemed at any time with the issuer of the instrument without losing the contracted compensation.
The reduction in the balance of cash and cash equivalents is mainly due to the settlement of amounts owed to Bradesco S.A. in the amount of R$ 650,648 related to the repurchase of the rights to offer financial products and services to its customers (Note 2.2)
-
Bonds and securities
Material accounting policy
Financial investments that are not classified as cash equivalents are those without repurchase guarantees by the issuer in the primary market, with liquidity only in the secondary market, and are measured according to the Group's intended use.
Breakdown of securities
Parent Company Consolidated
Index Rate 06/30/2025 12/31/2024 06/30/2025 12/31/2024
LFT - Financial treasury bills (*)
SELIC
100%
-
-
170,037
160,704
FIDC - C&A Pay
100%
616,404
854,604
-
-
Fixed income investment fund
- -
1,125 8,606
616,404 854,604
171,162 169,310
Current assets
-
-
171,162
169,310
Non-current assets
616,404
854,604
-
-
(*) The Group has financial investments in LFTs (Treasury Financial Letters), government bonds indexed to the changes in the rate of the Special System for Settlement and Custody - SELIC.
FIDC C&A Pay
On May 2, 2023, the operations of FIDC C&A Pay started. The Fund was established as a closed-end investment fund in non-standard credit rights. The shares shall only be redeemed at the end of the duration period of the respective series or in the event of the Fund's liquidation. The Fund is governed by internal regulations and regulated by the
Brazilian Securities and Exchange Commission (CVM) Instruction 175/2022 and other legally applicable provisions.
On June 30, 2025, all the shares issued by the fund are owned by C&A.
The equity structure of the C&A Pay FIDC, as of June 30, 2025 and December 31, 2024, is presented below:
Single series
% Fund's net assets
Quantity
Quota value
Amount
06/30/2025
100.00%
683,068
0.9876
674,593
12/31/2024 100.00% 986,342 0.9542 941,213
On June 30, 2025 and December 31, 2024, the statement of financial position of FIDC C&A Pay is shown below:
06/30/2025 | 12/31/2024 | |
Assets Cash and cash equivalents | 21,232 | 117,035 |
Short-term investments | 7,554 | 10,374 |
Trade receivables | 684,045 | 868,190 |
Other receivables | 64 | 8,407 |
Total assets | 712,895 | 1,004,006 |
Liabilities and equity Suppliers | 38,302 | 62,793 |
Equity | 674,593 | 941,213 |
Total liabilities and equity | 712,895 | 1,004,006 |
Reconciliation of the FIDC net assets vs. consolidated FIDC net assets
06/30/2025
12/31/2024
Net assets - FIDC
674,593
941,213
Expected credit losses
(28,503)
(24,380)
Present value adjustment
(15,978)
(14,901)
Adjustments to consolidation (*)
(13,708)
(47,328)
Net assets - FIDC - Consolidated
616,404
854,604
(*) The consolidation adjustments are mainly composed of the difference in interest revenues recorded in the FIDC, resulting from the effect of the discount in the receivables assignment operation. The interest-bearing installment portfolio is assigned at face value, and the interest-free installment portfolio is assigned at a discount. This means that the interest revenue is higher in the FIDC compared to the original operation with the client. Since the discount belongs to intragroup transactions, its effect is eliminated in the consolidated financial statements.
The income (loss) of the FIDC is accounted for in accordance with CVM Regulatory Instruction 489, dated January 14, 2011, applicable to investment funds in credit receivables. For the financial statements, the recognition of revenues and credit losses is being determined in accordance with IFRS/CPC standards and the Group's accounting policies.
-
Trade receivables
Material accounting policy
Trade receivables include the amounts owed from the sale of goods to clients, made through third-party credit cards and the proprietary digital card via C&A Pay. Trade receivables are presented at realizable amounts, net of the present value adjustment and expected losses according to the guidelines of CPC48.
Forward sales transactions are brought to their present value on the date of the financial statements based on market rates associated with the Company's risk spread. The average rates used on June 30, 2025, were 1.17% per month (2024: 0.97% per month), with the realization recorded as sales revenues. These rates can vary over time based on the conditions of the economic scenario, directly
impacting the present value adjustment. Management considers these changes in the definition of the rates, adjusting the provisions for expected losses as necessary.
Renegotiation of loans
The Group adopts credit renegotiation policies for clients with payment difficulties, which allow payment terms to be adjusted according to the client's credit profile. These renegotiations affect the provisioning for expected losses, since the renegotiated operations are classified at Stage 3 in the receivables portfolio. Said operations are measured differently, considering the expected new cash flow and the associated risk.
Breakdown of trade receivables
The table below details the breakdown of trade receivables, segmented between card operators, C&A Pay digital card operations, and other categories. The balance of trade receivables is influenced by the seasonality of the business activity.
Parent Company Consolidated
Note 06/30/2025 12/31/2024 06/30/2025 12/31/2024
Credit card operators
725,271
997,842
725,271
997,842
C&A Pay Card - related parties
(a)
37,373
53,276
-
-
C&A Pay Card - third parties
-
-
1,075,319
1,225,708
Present value adjustment
(11,429)
(13,686)
(27,408)
(28,587)
Expected credit losses
(422)
(2,693)
(349,405)
(377,040)
Trade accounts receivable
750,793
1,034,739
1,423,777
1,817,923
Trade receivables - business partners and (b)
related parties
19,472
54,152
20,878
56,994
Expected credit losses
-
(12,096)
-
(12,096)
Other trade receivables
19,472
42,056
20,878
44,898
Total trade receivables
770,265
1,076,795
1,444,655
1,862,821
Amount referring to sales made using the Group's own digital card and reimbursement of expenses shared.
Considers an amount of R$ 270 related to trade receivables with related parties of SCD as of June 30, 2025 (R$ 846 in 2024), and an amount of R$ 61 related to other business partners as of June 30, 2025 (R$ 469 in 2024).
Segmentation by type of client
Trade receivables have been classified according to the type of client to facilitate the analysis of financial impact and credit risk:
Credit card operators
Refer to sales made with third-party credit cards.
C&A Pay Business Partnerships
Trade receivables from business partnerships with other companies.
Includes sales made using
the company's own digital card, which is segregated between related parties and third parties.
Trade receivables from business partnerships with other companies.
Advance and assignment of receivables
Aiming to manage its cash flow, the Group may carry out operations to prepay and assign receivables. In the last two years, the Group has not prepaid any credit card receivables with third parties.
Intragroup advance payment of receivables
In the first semester of 2025, C&A Modas prepaid its receivables with its Parent Company C&A Pay SCD, totaling R$ 1,178,725, with a cost of R$ 29,337 (compared to R$ 1,051,022 in the same period of 2024, which had a cost of R$ 19,628). The rates applied for said advances were from 1.19% to 1.25%
p.m. (0.91% p.m. in the same period of 2024). These amounts were recorded as finance expenses in the company C&A Modas and as finance income in the company C&A Pay SCD. Intragroup transactions were eliminated in the consolidated financial statements (see Note 33).
Assignment of Receivables to the FIDC
SCD C&A Pay assigns receivables to FIDC (Fundo de Investimento em Direitos Creditórios) as a tool for managing its cash flow. The credit portfolio generated by interest-free installment sales is assigned to the FIDC at a discount. The accounting treatment of said operation impacts both the financial assets and the operating income (loss) of the Parent Company and the subsidiary, but they are eliminated in the Consolidated. In the semester of 2025, these operations totaled R$ 1,274,720 in new assignments, with a discount of R$ 31,372 (for the first semester of 2024, we recorded the amount of R$ 1,176,212 with a discount of R$ 20,434).
Breakdown of C&A Pay loan portfolio by installment maturity brackets
The charts below present the breakdown of C&A Pay's loan portfolio, segmented by maturity brackets. This segmentation allows for a more detailed analysis of the quality of the loan portfolio, distinguishing between receivables that are falling due and those that are past due, and enables the application of appropriate collection strategies for each bracket.
Total in June 2025: 684,282
Total in Dec 2024: 818,527
FIDC C&A Pay Falling due*Amounts in thousands of reais (R$)
300,000
250,000
200,000
150,000
100,000
50,000
-
≤30 days
31−60
days
61−90
days
91−180
days
181−360
days
>360
days
239,743
164,932
115,605
130,278
32,090
1,634
281,547
195,956
138,068
174,257
26,926
1,773
2025
2024
Total in June 2025: 391,036
Total in Dec 2024: 407,181
FIDC C&A Pay Overdue*Amounts in thousands of reais (R$)
200,000
150,000
100,000
50,000
-
≤30 days
31−60
days
61−90
days
91−180
days
181−360
days
>360
days
19,301
13,531
19,347
62,956
88,789
187,113
18,968
16,365
20,015
56,306
114,032
181,494
2025
2024
Total falling due + overdue Jun/2025: 1,075,319 Total falling due + overdue Dec/2024: 1,225,708
Expected losses in loan operations
C&A Pay Financial Services Context
The C&A Pay digital card aims to improve clients' shopping experience and support retail sales. This private label card is accepted exclusively at C&A stores. To support this operation, the Group has implemented a credit granting system using analysis tools to determine the appropriate credit limit for each client.
Breakdown of the Portfolio and Estimated Loss by Stage
The estimates of expected losses are calculated according to the breakdown of the loan portfolio by stage. The assets are classified as follows:
Stage 1: Credits with no significant risk of default
Stage 2: Credits with significant increase in default risk
Stage 3 Credits from defaulters
Estimates of losses progressively increase as the risk of default advances through the stages, ensuring a prudent approach in the remeasurement of assets.
On June 30, 2025, the Group provisioned 96.95% for assets overdue between 361 and 720 days. Assets with delinquency exceeding 720 days are written off as losses, reversing the provision previously established.
Material accounting policy
The Group adopts the simplified CPC 48 model for calculating expected credit losses (PECLD), recognizing losses over the life of financial assets based on historical data, economic projections, continuous risk assessment and future projections of credit behavior.
The methodology considers both active balances and unused credit limits. Amounts overdue with no expectation of recovery are written-off as losses, with the reversal of previous provisions.
Main components of the expected credit loss model
Loss Given Default (LGD): Refers to the expectation of loss once default has been characterized, considering a specific percentage of the total value of the problematic asset.
Exposure at Default (EAD): Refers to the total asset exposure at the time of default.
Probability of default (PD):
Refers to the probability
that a debtor will not be able to meet its financial obligations in a given period.
The expected loss model guarantees that loan operations are adequately provisioned, ensuring that losses are measured in a way that reflects the risk of default over time.
This model aims to provision for expected credit losses throughout the life of the financial assets, and not just when these losses occur. This approach is based on historical risk behavior and macroeconomic conditions.
The expected loss model is based on three stages, which determine how losses are measured and recognized, as follows:
Stage
Stage
Stage
Less than 30 days past due
31-90 Days past due
>90 days past due
Corresponds to loan operations classified as non-performing, less than 30 days delinquent, or which did not present significant credit risks on initial recognition.
Corresponds to loan operations with defaults between 30 and 90 days or assets characterized as significant risk on initial recognition.
Corresponds to loan operations more than 90 days overdue, characterized as problematic assets, reflecting higher levels of risk coverage.