K E E P L I F E
I N M O T I O N
EARNINGS
RELEASE
2Q24
K E E P L I F E I N M O T I O N
Caxias do Sul, August 06, 2024. Frasle Mobility (Fras-le S.A. - B3: FRAS3) discloses its results for the second quarter of 2024 (2Q24) and first half of 2024 (1H24). The Company`s Financial Information is consolidated in accordance with international standards IFRS - International Financial Reporting Standards and monetary vales are expressed in Reais, unless otherwise indicated. Comparisons are made with the second quarter of 2023 (2Q23) and the first half of 2023 (1H23).
H I G H L I G H T S
NET REVENUE (R$)
1.8 B
+3.6% vs. 1H23
GUIDANCE R$ 3.7 - 4.0 B
INTERNATIONAL MARKET1 (US$)
144.2 M
+2.5% vs. 1H23
GUIDANCE US$ 250 - 290 M
EBITDA (R$)
266.3 M
-26.8% vs. 1H23
EBITDA MARGIN 14.6% - 1H24
GUIDANCE 17 - 21 %
INVESTMENTS2 (R$)
41,7 M
-26.4% vs. 1H23
GUIDANCE R$ 130 - 170 M
MARKET CAP (06/28/2024) R$ 5.2 B
CLOSING QUOTE "FRAS3" R$ 19.39
FREE FLOAT 33.2%
Videoconference of Results 2Q24
August, 07, 2024 (Wednesday)
11 am Brasília
10 am New York
03 pm London
WEBCAST (Portuguese/English): Click here
Hemerson Fernando de Souza - IRO
Jéssica Cristina Cantele
Mônica Rech
Renata Schwaizer
Investor Relations ri.fraslemobility.com ri@fraslemobility.com
FORWARD-LOOKINGSTATEMENTS. The statements contained in this report regarding FRASLE MOBILITY's (FRAS-LE S.A.) business prospects, projections and results and the company's growth potential are merely forecasts and were based on management's expectations regarding the Company's future. These expectations are highly dependent on changes in the market, the general economic performance of the country, the sector, and international markets, and may undergo changes.
- Value referring to the sum of exports out of Brazil and revenues from operations abroad, net of intercompany operations;
- Value referring to organic investments.
EARNINGS RELEASE 2Q24
FRASLE MOBILITY UNIVERSE
C L U B E E X P E R T S
Auto Experts platform's relationship program was launched. Clube Experts includes partner automotive centers with special benefits and advantages when purchasing Fras-le and Nakata products. The program serves eleven Brazilian states in the South, Southeast, and Midwest regions. Access the full article.
S U S T A I N A B I L I T Y
In June, we released the 2023 Sustainability Report. This edition consolidates initiatives related to the care for People, respect fot the Planet, and sustainable maintenance of our Businesses. Watch our initiatives.
S I T E V I S I T
A visit for investors and analysts was held on June 27 at the Frasle Mobility site in Extrema (MG). Participants got to know Nakata's shock absorber manufacturing plant and the Distribution Center.
At the event, Frasle Mobility executives explained Nakata's synergy gains after five years of integration and the challenges and opportunities mapped for the future. It was also possible to connect the similarities of this business with the recent acquisition in Mexico.
L A R G E S T A C Q U I S I T I O N I N H I S T O R Y
On June 24, the Company announced the acquisition of Kuo Refacciones, the automotive replacement division of the Mexican group Kuo. The acquisition involves an investment of around R$2.1 billion (subject to adjustments on the closing date). Access the Material Fact.
The new acquisition will increase the operational structure of the friction material plant and distribution center in Mexico City and the piston and gasket plant in Celaya. Furthermore, engine components and 10 brands will be incorporated into the Company's portfolio, reinforcing the house of brands and consolidating the powerhouse of replacement parts. Access the full article here.
P O S T F L O O D R E C O V E R Y I N I T I A T I V E S
We continue to monitor employees affected by floods, providing emergency support with food, drinking water, hygiene items, clothes, mattresses, and medicine, as well as social services, psychological care, telemedicine, and legal assistance. After these first initiatives, we started financial support including the advance of resources such as the second installment payment of the Christmas bonus and part of the Profit Sharing Program (PPR).
Frasle Mobility, together with Randoncorp and the Elisabetha Randon Institute (IER) carried out community support actions. Access here to learn about all the initiatives to help Rio Grande do Sul.
EARNINGS RELEASE 2Q24
MESSAGE FROM MANAGEMENT
The second quarter of 2024 was quite challenging for the Company, in addition to being permeated by difficult decisions, intense care for our people and strategic moves which will reflect on our future.
During 2Q24, we faced an extremely complex moment in Rio Grande do Sul, due to the heavy rains that hit the state. Our most impacted operation was the Controil unit, located in São Leopoldo, which had to suspend
its activities for twenty days in May. Along with our controlling group, Randoncorp, we mobilized support in various ways for our employees and the impacted community, in addition to taking all the necessary measures to adapt our operations to the scenario, prioritizing everyone's safety above all.
Prior to this, in April, we restructured our subsidiary
Fanacif in Uruguay as part of our strategy to optimize the production footprint of our operations around the world, in response to the commercial challenges that have been faced in recent years. Especially due to this decision, our results were lower in this quarter than in previous quarters in terms of the Company's profit and margin.
Isolating the aforementioned effects, our operations, in general - production and sales -
remained at a very good level, which allowed us to record another quarter of evolution and growth in consolidated net revenue, with an increase of 6.6% compared to the second quarter of last year. When we analyse the consolidated results for this first- half of the year, net revenue was R$ 1.8 billion, an increase of 3.6% compared to the same period in 2023. These figures complement strategic actions that are decisive for the future of Frasle Mobility.
The main one of these actions was the announcement of the Company's largest acquisition so far - the purchase of the controlling interest of the company Kuo Refacciones, in Mexico. The purchase will allow Frasle Mobility to consolidate its leadership in the three main markets for the automotive aftermarket in Latin America: Brazil, Mexico and Argentina.
This way, we strengthen the market's recognition of what we have already achieved - setting a standard as a company that offers a complete mix of products for motion control and services added to the replacement market. We trust in our business model and in the capacity of our teams spread around the world to continue carrying out our projects and actions and delivering strategic solutions to the mobility universe.
EARNINGS RELEASE 2Q24 | 1 |
MAIN FIGURES
2Q24 | 2Q23 | Δ % | 1Q24 | Δ % | 1H24 | 1H23 | Δ % | |
Net Revenue | 980.3 | 919.6 | 6.6% | 841.3 | 16.5% | 1,821.5 | 1,758.3 | 3.6% |
Domestic Market | 587.8 | 528.9 | 11.1% | 499.4 | 17.7% | 1,087.2 | 1,046.5 | 3.9% |
Foreign Market | 392.5 | 390.7 | 0.5% | 341.9 | 14.8% | 734.3 | 711.9 | 3.2% |
Foreign Market US$ | 75.2 | 78.8 | -4.6% | 69.0 | 9.1% | 144.2 | 140.7 | 2.5% |
Exports - Brazil US$ | 31.1 | 31.0 | 0.4% | 24.2 | 28.7% | 55.3 | 56.6 | -2.2% |
Gross Profit | 315.5 | 320.5 | -1.6% | 289.7 | 8.9% | 605.2 | 616.7 | -1.9% |
Gross Margin | 32.2% | 34.9% | -2.7 pp | 34.4% | -2.2 pp | 33.2% | 35.1% | -1.8 pp |
Operating Profit | 76.6 | 156.0 | -50.9% | 116.9 | -34.5% | 193.5 | 303.2 | -36.2% |
Operating Margin | 7.8% | 17.0% | -9.2 pp | 13.9% | -6.1 pp | 10.6% | 17.2% | -6.6 pp |
EBITDA | 112.3 | 186.9 | -39.9% | 154.0 | -27.1% | 266.3 | 363.9 | -26.8% |
EBITDA Margin | 11.5% | 20.3% | -8.9 pp | 18.3% | -6.9 pp | 14.6% | 20.7% | -6.1 pp |
Net Profit | 41.4 | 98.2 | -57.9% | 109.1 | -62.1% | 150.5 | 188.7 | -20.2% |
Net Margin | 4.2% | 10.7% | -6.5 pp | 13.0% | -8.8 pp | 8.3% | 10.7% | -2.5 pp |
Adjusted EBITDA | 162.5 | 199.5 | -18.5% | 154.0 | 5.5% | 316.5 | 376.6 | -15.9% |
Adjusted EBITDA Margin | 16.6% | -5.1 pp | -1.7 pp | -4.0 pp | ||||
21.7% | ||||||||
18.3% | 17.4% | |||||||
21.4% | ||||||||
Investments | 20.1 | 25.4 | -21.2% | 21.6 | -7.2% | 41.7 | 56.6 | -26.4% |
ROIC | 11.4% | 15.5% | -4.1 pp | 15.7% | -4.2 pp | 11.4% | 15.5% | -4.1 pp |
Values in R$ million (except for exports, profit per share and percentage)
4Q20 | 4Q19 | Δ % | 4Q19 | Δ % | 2020 | 2019 | Δ % | |
2Q24 | 2Q23 | Δ % | 1Q24 | Δ % | 1H24 | 1H23 | Δ % | |
Average price of the US dollar | 5.22 | 4.95 | 5.4% | 4.95 | 5.3% | 5.09 | 5.07 | 0.2% |
BUSINESS OVERVIEW DURING THE QUARTER
The first half of the year showed a 3.6% increase in net revenue, a modest increase when compared to the same period last year, but with important advances in the Company's strategic trajectory, such as the acquisition of Kuo Refacciones, which will further strengthen Frasle Mobility's position in the global aftermarket.
In April, the Company made the difficult decision to close the Fanacif manufacturing plant, located in Uruguay, which resulted in one-off effects in this quarter. In addition, in May, the floods that hit the state of Rio Grande do Sul affected part of the business, in addition to causing disruptions in the logistics chain. Furthermore, our operations located in Argentina impacted our results due to inflationary effects.
Even so, our operations, in general, - production and sales - remained strong, reflecting the stability in the average number of vehicles that passed through workshops in the first half of 2024. Another interesting fact was the survey by CINAU (Automotive Intelligence Center), indicating that quality and reliability surpass price when choosing parts by repairers, which puts us in the spotlight, since our brands are recognized for these attributes.
EARNINGS RELEASE 2Q24 | 2 |
SALES PERFORMANCE
VOLUMES AND NET REVENUE BY PRODUCT FAMILY
Sales Volumes by Product Line in millions of pieces or liters
VOLUMES
Friction Material
Components for the Brake System
Components for the
Suspension, Steering and Powertrain
2Q24 | 2Q23 | Δ % | 1Q24 | Δ % | 1H24 | 1H23 | Δ % | |||||
26.8 | 26.5 | 1.0% | 24.7 | 8.4% | 51.5 | 51.4 | 0.2% | |||||
2.6 | 2.6 | -2.0% | 2.2 | 14.6% | 4.8 | 4.8 | 0.6% | |||||
5.5 | 4.9 | |||||||||||
13.1% | 4.5 | 23.3% | 10.0 | 9.5 | 4.4% | |||||||
Sales Revenue by Material in R$ million
NET REVENUE
Friction Material | 2Q24 | 2Q23 | Δ % | 1Q24 | Δ % | 1H24 | 1H23 | Δ % | ||||||||||||
468.1 | 47.8% | 448.8 | 48.8% | 4.3% | 419.7 | 49.9% | 11.5% | 887.8 | 48.7% | 847.8 | 48.2% | 4.7% | ||||||||
Components for the Brake System | 192.8 | 19.7% | 195.9 | 21.3% | -1.6% | 152.8 | 18.2% | 26.2% | 345.6 | 19.0% | 346.6 | 19.7% | -0.3% | |||||||
Components for the | 272.1 | 241.7 | ||||||||||||||||||
27.8% | 26.3% | 12.6% | 233.0 | 27.7% | 16.8% | 505.1 | 27.7% | 477.2 | 27.1% | 5.9% | ||||||||||
Suspension, Steering and Powertrain | ||||||||||||||||||||
Other products * | 47.2 | 4.8% | 33.1 | 3.6% | 42.6% | 35.8 | 4.3% | 31.9% | 83.0 | 4.6% | 86.7 | 4.9% | -4.3% | |||||||
Net Revenue | 980.3 | 100.0% | 919.6 | 100.0% | 6.6% | 841.3 | 100.0% | 16.5% | 1,821.5 | 100.0% | 1,758.3 | 100.0% | 3.6% |
The components are detailed at the end of this report.
Friction volume has changed in total for 2023 due tointercompany adjustments and accounting for sets for parts.
The second quarter of 2024 recorded higher revenue performance when compared to the same period last year, reflecting the increase in the US dollar and the mix of products sold. In addition, the following highlights were:
Friction Material
Domestic market for brake pads is booming. Parent company records record production and sales of the light vehicle line;
Brake linings for commercial vehicles show growth in revenue and volume due to increased demand and sales campaigns.
Components for the Brake System
Brake discs grow in revenue due to price repositioning;
Performance was affected by the shutdown of the Controil unit due to the floods. The subsidiary was able to mitigate this impact by selling its inventory of the warehouse in Extrema/MG.
Suspension, Steering and Powertrain Components
Shock absorbers remain a highlight, with market share gains distributed throughout Brazil. Nakata is also advancing its strategy of expanding and strengthening its motorcycle portfolio;
The Cartagena warehouse shows growth in its sales of shock absorbers for pick-ups and vans, with greater added value.
Other Products
Composs continues to work actively on research and development of new technologies applied to products. Production of mudguard supports has resumed, following Iveco's shutdown to restructure its production lines.
EARNINGS RELEASE 2Q24 | 3 |
NOTE: It is important to note that the performance of sales revenue by material family does not necessarily reflect the same behaviour in volumes, as we have effects from exchange rate changes, product mix and prices charged. For more details on the families, see Appendix IV.
Below is a graph in causal format showing the effects that have changed the performance of consolidated net revenue in 2Q24, as compared to 2Q23.
Net Revenue
919.6 | 59.0 | 20,0 | 954.4 | 23.6 | 2.3 | 980.3 | |
-44.1 | |||||||
2 Q 2 3 | D o m est i c | Fo r ei g n | E xch a n g e | 2 Q 2 4 | I n f l a t i o n ¹ | D ev a l u a t i o n / | 2 Q 2 4 |
M a r k et | M a r k et | Ra t e | A p p r eci a t i o n | ||||
E xch a n g e r a t e¹ |
Argentina
Amounts in BRL Millions. ¹ Economic update in highly inflationary economy as provided for in CPC 42/IAS 29.
REVENUE BY MARKET
Net Revenue by Markets | ||||||||||||||||
Markets | 2Q24 | 2Q23 | Δ % | 1Q24 | Δ % | 1H24 | 1H23 | Δ % | ||||||||
DM Aftermarket | 534.0 | 54.5% | 479.8 | 52.2% | 11.3% | 445.2 | 52.9% | 19.9% | 979.2 | 53.8% | 942.7 | 53.6% | 3.9% | |||
DM OEM | 53.9 | 5.5% | 49.1 | 5.3% | 9.7% | 54.2 | 6.4% | -0.6% | 108.0 | 5.9% | 103.7 | 5.9% | 4.1% | |||
Domestic Market | 587.8 | 60.0% | 528.9 | 57.5% | 11.1% | 499.4 | 59.4% | 17.7% | 1,087.2 | 59.7% | 1,046.5 | 59.5% | 3.9% | |||
FM Aftermarket | 332.8 | 34.0% | 330.9 | 36.0% | 0.6% | 288.0 | 34.2% | 15.6% | 620.8 | 34.1% | 610.6 | 34.7% | 1.7% | |||
FM OEM | 59.6 | 6.1% | 59.8 | 6.5% | -0.2% | 53.9 | 6.4% | 10.7% | 113.5 | 6.2% | 101.2 | 5.8% | 12.1% | |||
Foreign Market | 392.5 | 40.0% | 390.7 | 42.5% | 0.5% | 341.9 | 40.6% | 14.8% | 734.3 | 40.3% | 711.9 | 40.5% | 3.2% | |||
Total Aftermarket Net Revenue | 866.8 | 88.4% | 810.7 | 88.2% | 6.9% | 733.2 | 87.2% | 18.2% | 1,600.0 | 87.8% | 1,553.4 | 88.3% | 3.0% | |||
Total OEM Net Revenue | 113.5 | 11.6% | 108.9 | 11.8% | 4.2% | 108.0 | 12.8% | 5.0% | 221.5 | 12.2% | 205.0 | 11.7% | 8.1% | |||
Total Net Revenue | 980.3 | 100% | 919.6 | 100% | 6.6% | 841.3 | 100% | 16.5% | 1,821.5 | 100% | 1,758.3 | 100% | 3.6% | |||
Values in R$ million
Note: Reclassification of intercompany revenue eliminations have changed the result of the Revenue lines in the Domestic and International Market in 2023. The changes made are highlighted in the Company's Modeling Guide.
Domestic Market (DM)
Replacement
Nakata, records another quarter with market share growth in suspension and steering, linked to the strengthening of its portfolio and greater product availability in the market.
After the restructuring of Fanacif S.A., the parent company began to absorb the demand for brake linings for commercial vehicles. In addition, together with the Sorocaba unit, it took over the production of brake pads for light vehicles.
Brake pads for light vehicles remain a highlight, as a result of the level of service offered to the market, whether by strengthening the portfolio with the rapid launch of new products, or by price stability and competitiveness.
Trailers Division
Strikes at car manufacturers had a negative impact on the sale of brake discs for light vehicles.
EARNINGS RELEASE 2Q24 | 4 |
Heavy vehicle market is booming, following update in pollutant emission standards (Euro6), stimulating growth in brake linings.
International Market (IM)
Replacement
The high demand for port logistics in Southern country delayed the export of brake discs, affecting the performance of the warehouse in Colombia.
AML Juratek reaps good results in the sale of brake discs and drums for heavy vehicles under Fras-le brand, after adding it to the portfolio in the first quarter of this year.
Exports of brake linings increased in the United States due to increased demand in the market.
Trailers Division
Revenue increases from 2Q24 x 1Q24 driven by the rise in the dollar rate and mix of products sold during the quarter for the North American market.
Exports - Brazil US$
31.0 | 26.7 | 31.1 | |
25.3 | 24.2 | ||
2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 |
CAGR 2Q23/2Q24 0.1% | 2Q23/2Q24 0.4%
Foreign Market US$
78.8 | 69.0 | 75.2 |
68.5 | ||
37.0 | ||
2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 |
CAGR 2Q23/2Q24 -1.2% | 2Q23/2Q24 -4.6%
REVENUE BREAKDOWN ACROSS THE GLOBE
NORTH AMERICA | EUROPE AND EURASIA |
2Q24 | 13.3% |
2Q24 | 8.5% |
2Q23 | 15.3% |
2Q23 8.5% | |
CENTRAL AMERICA | |
AND THE CARIBBEAN | ASIA-PACIFIC |
2Q24 | 1.3% | 2Q24 3.6% | ||||
2Q23 | 1.7% | 2Q23 | 2.9% | |||
BRAZIL | AFRICA | |||||
AND MIDDLE EAST | ||||||
SOUTH AMERICA W/ BRAZIL | 2Q24 | 60.0% | 2Q24 | 1.0% | ||
2Q24 | 12.3% | |||||
2Q23 | 57.5% | 2Q23 | 1.1% | |||
2Q23 | 13.0% | |||||
EARNINGS RELEASE 2Q24 | 5 |
North America: stability of inflation at levels considered high and the presidential elections are factors that influence market demand. Despite the reduction in volumes in the brake pad line for light commercial vehicles, the outlook for business remains positive.
South America: the argentine market remains in recession, with greater price competition and increasingly cautious consumption among customers. The warehouse in Colombia remains focused on developing the portfolio.
Europe and Eurasia: the market is stable, and volumes remain at a good level. AML Juratek continues its synergy work with portfolio expansion and integration of Frasle Mobility brands.
Asia: Pinghu operation in China has launched a new brake lining formulation under the LonaFlex brand to serve the local market. In India, the operation continues to contribute to the growth of revenue with products linked to commercial vehicles.
OPERATIONAL PERFORMANCE
COST OF GOODS SOLD (COGS) AND GROSS PROFIT
In 2Q24, cost of goods sold totalled R$ 664.8 million, accounting for 67.8% of net revenue and resulting in a gross profit of R$ 315.5 million and gross margin of 32.2%, which is 2.7 percentage points lower than in the same period last year. The chart below shows the composition of COGS and the main highlights.
11% | 13% | Raw Materials |
5% | 5% | Labor |
3% | 3% | |
12% | 2Q24 | 13% | 2Q23 | Depreciation |
Other fixed Costs | ||||
69% | 66% | |||
Other Variable Costs |
*General Manufacturing Expenses
The strategic negotiations carried out throughout this first half of the year resulted in an increase in the leverage of purchases of co-manufactured products, thus allowing the acquisition of larger volumes of products under more favourable conditions.
EARNINGS RELEASE 2Q24 | 6 |
Although inflation in Argentina has been more controlled recently, it remains high, increasing operating costs and putting pressure on profit margins. Economic instability and reduced consumer demand, combined with the need to reduce prices, have negatively impacted our sales and profits in the region. In the quarter, the impact of hyperinflation and currency devaluation resulted in a negative effect of R$ 52.4 million on COGS, reflecting a negative impact of R$ 26.5 million on gross profit.
Operations are resumed at the Controil site
Gross Profit
320.5 | 319.3 | 289.7 | 315.5 | ||
202.6 | |||||
34.9% | 35.9% | 27.3% | 34.4% | 32.2% | |
2Q23 | 3Q23 | 4Q23 | 1Q24 | 2Q24 | |
CAGR 2Q23/2Q24 | -0.4% | 2Q23/2Q24 | -1.6% | |||
Controil's operations, located in São Leopoldo, were halted for twenty days in May due to the flooding that hit the State of Rio Grande do Sul. The impact on the subsidiary's revenues was mitigated by the inventory maintained at the warehouse located in Extrema/MG, but the logistics strategies during this period and the costs of resuming operations, such as machine maintenance and lower dilution of fixed costs, affected margin performance.
The Company continues to work actively to support the affected employees, providing all necessary support to ensure a smooth return to work and fostering a welcoming environment during this difficult time.
OPERATING REVENUES AND EXPENSES
0 | 2Q24 | 2Q23 | Δ % | 1Q24 | Δ % | 1H24 | 1H23 | Δ % | ||||||||
Selling Expenses | -94.9 | -9.7% | -79.2 | -8.6% | 19.9% | -79.2 | -9.4% | 19.8% | -174.1 | -9.6% | -158.3 | -9.0% | 10.0% | |||
-29.2 | ||||||||||||||||
Variable Expenses w/ Sales | -33.9 | -3.5% | -31.6 | -3.4% | 7.4% | -3.5% | 16.2% | -63.1 | -3.5% | -58.1 | -3.3% | 8.6% | ||||
Other Expenses w/ Sales | -61.0 | -6.2% | -47.6 | -5.2% | 28.2% | -50.0 | -5.9% | 21.9% | -111.0 | -6.1% | -100.2 | -5.7% | 10.8% | |||
Administrative Expenses | -79.6 | -8.1% | -64.1 | -7.0% | 24.1% | -71.4 | -8.5% | 11.5% | -151.0 | -8.3% | -119.6 | -6.8% | 26.2% | |||
Other Net Expenses/Income | -64.2 | -6.6% | -21.2 | -2.3% | 203.7% | -22.1 | -2.6% | 190.9% | -86.3 | -4.7% | -35.6 | -2.0% | 142.3% | |||
Other Operating Expenses | -71.4 | -7.3% | -50.1 | -5.4% | 42.6% | -32.3 | -3.8% | 121.2% | -103.7 | -5.7% | -68.0 | -3.9% | 52.5% | |||
Other Operating Income | 7.2 | 0.7% | 28.9 | 3.1% | -75.1% | 10.2 | 1.2% | -29.5% | 17.4 | 1.0% | 32.4 | 1.8% | -46.2% | |||
Equity Equivalence | -0.1 | 0.0% | 0.0 | 0.0% | 1020.5% | -0.1 | 0.0% | 22.4% | -0.23 | 0.0% | 0.08 | 0.0% | -397.0% | |||
Total Operating Exp/Income | -238.9 | -24.4% | -164.5 | -17.9% | 45.2% | -172.8 | -20.5% | 38.3% | -411.7 | -22.6% | -313.5 | -17.8% | 31.3% |
Values in R$ millions and % over Net Revenue
The second quarter saw a 45.2% increase in operating expenses and revenues compared to the same period last year. Below are some highlights of the quarter:
The increase in sales expenses is mainly due to the strengthening of the commercial structure and to freight and commission costs;
When it comes to administrative expenses, the highlights are M&A expenses in the amount of R$ 1.6 million and actions promoted by the Company to assist employees who suffered from the flooding in Rio Grande do Sul, in the amount of approximately R$ 1 million;
The Other Operating Expenses line was impacted by the impairment of assets and restructuring of the subsidiary Fanacif in the total amount of R$ 50.2 million. For more information, see note 5.3;
In the line of Other Operating Revenues, R$ 2.0 million was recorded in this quarter related to the Green Mobility and Innovation Program (Mover);
EARNINGS RELEASE 2Q24 | 7 |