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CI&T Reports Solid Second Quarter 2022 Financial and Operational Results

·23-min read

NEW YORK, August 17, 2022--(BUSINESS WIRE)--CI&T (NYSE: CINT, "Company"), a global digital specialist, today announces its results for the second quarter of 2022 (2Q22) and the six months ended on June 30, 2022 (6M22) in accordance with International Financial Reporting Standards (IFRS). For comparison purposes, we refer to the results for the second quarter of 2021 (2Q21) and for the six months ended on June 30, 2021 (6M21).

Second Quarter (2Q22) Operating and Financial Highlights

  • Net Revenue of R$525.0 million, 67% higher than 2Q21, or 73% growth in constant currency.

  • The number of clients with annual revenue above R$1 million in the last twelve months grew from 110 in 1Q22 to 127 in 2Q22.

  • Net Profit was R$26.0 million, a 42% reduction compared to 2Q21.

  • Adjusted EBITDA was R$100.4 million, a 36% growth year-over-year, equivalent to an Adjusted EBITDA margin of 19.1%.

  • Adjusted Net Profit was R$52.3 million, 16% higher than 2Q21. Adjusted net profit margin was 10%.

  • CI&T ended 2Q22 with 6,768 CI&Ters, a net addition of 2,734 employees (68% growth) compared to the end of 2Q21.

Six months ended June 30, 2022 (6M22) Operating and Financial Highlights

  • Net Revenue was R$1,016.9 million, an increase of 66% compared 6M21.

  • Net Revenue growth at constant currency was 74% compared to 6M21.

  • Net Profit was R$55.2 million, a decrease of 35% in relation to 6M21.

  • Adjusted EBITDA was R$186.5 million, 31% higher than 6M21, with an Adjusted EBITDA margin of 18.3%.

  • Adjusted Net Profit was R$93.3 million, an increase of 10% compared to 6M21.

"We are glad to present another set of great quality results, combining sound profitability with sustainable growth," commented Cesar Gon, founder and CEO of CI&T. "The main factors contributing to our higher growth pace have been the expansion of our engagement with existing clients, the addition of new clients every quarter, and our programmatic M&A strategy."

"We continue to see a robust demand environment and are confident in our ability to generate great value to our clients through digital transformation and digital efficiency capabilities at speed and scale. In July, ​​Forrester, a leading global market research company, positioned CI&T as a Leader in The Forrester Wave: Modern Application Development Services, in its report. The recognition is a result of CI&T’s dedication to empowering organizations to maintain competitive innovation in their digital initiatives by enabling the creation of new business capabilities and operational models in a fast-paced market."

Comments on the 2Q22 and 6M22 financial performance

Net Revenue

Revenue

(in BRL thousand)

2Q22

2Q21

Var.

2Q22 x 2Q21

6M22

6M21

Var.

6M22 x 6M21

Net Revenue

525,015

315,324

66.5%

1,016,887

611,616

66.3%

Net Revenue at Constant Currency (1)

549,961

317,995

72.9%

1,065,309

611,905

74.1%

(1)

Net Revenue at Constant Currency is a non-GAAP measure that translates Net revenue from entities reporting in foreign currencies into Brazilian reais eliminating period-to-period currency fluctuations. See Non-IFRS Financial Measures section for more information.

In 2Q22, net revenue was R$525.0 million, an increase of 66.5% compared to 2Q21. The acquisitions of Somo and Box 1824 concluded in the 6M22 contributed to 13 percentage points of revenue growth in the quarter. The U.S. continues to be the largest growing market organically for CI&T, while the growth in Europe was mainly due to the acquisition of Somo in 1Q22. We reduced our top one client's share from 24% in 2Q21 to 16% in 2Q22, and our top ten client's share reduced from 73% in 2Q21 to 52% in 2Q22.

The appreciation of the Brazilian Real (BRL) in the quarter1 in relation to the U.S. dollar (USD) and the British Pound (GBP) impacted the conversion of the revenue from our operations in North America and Europe, which represents around 50% of our revenues. Net revenue at constant currency would have been R$550.0 million, a 73% growth compared to 2Q21.

____________________
1
BRL appreciated, on average, 19.7% relative to the GBP and 7.4% relative to the USD in 2Q22, compared with the same period of 2021 (Source: Brazilian Central Bank).

In terms of industry verticals, financial services and food and beverages continue to be our most relevant markets, while technology, media, and telecom (TMT) and retail and manufacturing have been growing and gaining relevance in our portfolio of clients. We continue to diversify our client base by adding 17 new clients in 2Q22 with annual revenue above R$1.0 million in the last twelve months, from 110 in 1Q22 to 127 in 2Q22.

Revenue Breakdown

Net Revenue by industry

(in BRL thousand)

2Q22

2Q21

Var.

2Q22 x 2Q21

6M22

6M21

Var.

6M22 x 6M21

Financial Services

161,466

111,268

45.1%

315,064

210,089

50.0%

Food and Beverages

107,988

88,112

22.6%

202,056

172,169

17.4%

Technology, Media and Telecom

69,690

30,142

131.2%

137,443

62,491

119.9%

Pharmaceuticals and Cosmetics

70,568

45,798

54.1%

133,990

87,604

52.9%

Retail and Manufacturing

31,624

18,232

73.4%

67,053

34,210

96.0%

Education and Services

16,965

11,446

48.2%

36,653

23,638

55.1%

Logistic and Transportation

17,596

4,923

257.4%

34,632

10,155

241.0%

Others

49,118

5,403

809.2%

89,996

11,260

699.3%

Total

525,015

315,324

66.5%

1,016,887

611,616

66.3%

Net Revenue by geographic

(in BRL thousand)

2Q22

2Q21

Var.

2Q22 x 2Q21

6M22

6M21

Var.

6M22 x 6M21

NAE (North America and Europe)

267,464

159,187

68.0%

508,993

312,810

62.7%

North America

219,304

152,574

43.7%

423,244

301,584

40.3%

Europe

48,160

6,613

628.3%

85,749

11,226

663.8%

LATAM (Latin America)

242,574

146,641

65.4%

477,280

277,818

71.8%

APJ (Asia, Pacific and Japan)

14,977

9,496

57.7%

30,614

20,988

45.9%

Cost of Services Provided and Adjusted Gross Profit

Gross Profit

(in BRL thousand)

2Q22

2Q21

Var.

2Q22 x 2Q21

6M22

6M21

Var.

6M22 x 6M21

Net Revenue

525,015

315,324

66.5%

1,016,887

611,616

66.3%

Cost of Services

(341,502)

(205,768)

66.0%

(670,494)

(394,140)

70.1%

Gross Profit

183,513

109,556

67.5%

346,393

217,476

59.3%

Adjustments

Depreciation and amortization (cost of services provided)

10,295

6,551

57.2%

19,614

12,776

53.5%

Stock-based compensation

(361)

181

-

821

233

253.0%

Adjusted Gross Profit (1)

193,447

116,287

66.4%

366,828

230,484

59.2%

Adjusted Gross Profit Margin (1)

36.8%

36.9%

0p.p

36.1%

37.7%

-1.6p.p

(1)

Adjusted Gross Profit and Adjusted Gross Profit margin are Non-IFRS measures. See Non-IFRS financial measures section for more information.

The cost of services provided in 2Q22 reached R$341.5 million, an increase of 66.0% compared to 2Q21, and the gross profit was R$183.5 million. Excluding costs with depreciation and amortization and the stock-based compensation, the adjusted gross profit in 2Q22 was R$193.5 million, 66.4% higher than 2Q21, with an adjusted gross profit margin of 36.8%. CI&T ended 2Q22 with 6,768 CI&Ters, a headcount growth of 68% (net addition of 2,734 employees) compared to the end of 2Q21.

The gross profit margin in 2Q22 remained relatively flat year over year. In 6M22, the gross margin reduced 1.6 percentage points compared to 6M21, due to the impact of foreign exchange rate variation in the period, and M&A, as recently acquired companies have lower margins.

SG&A and Other Expenses

SG&A expenses

(in BRL thousand)

2Q22

2Q21

Var.

2Q22 x 2Q21

6M22

6M21

Var.

6M22 x 6M21

Selling

(39,962)

(18,801)

112.6%

(75,091)

(37,780)

98.8%

General and administrative

(78,390)

(28,328)

176.7%

(143,311)

(54,054)

165.1%

SG&A expenses

(118,352)

(47,129)

151.1%

(218,402)

(91,834)

137.8%

Other income (expenses) net (1)

(3,969)

(184)

n.m

(4,484)

1,406

-

Impairment loss on trade receivables and contract assets

356

2,891

-87.7%

(710)

(367)

93.5%

SG&A and other operating expenses

(121,965)

(44,422)

174.6%

(223,596)

(90,795)

146.3%

(1)

Include research and technological innovation expenses

Selling, General and Administrative (SG&A) expenses grew 151.1% in 2Q22 compared to 2Q21, mainly explained by (i) an increase in expenses associated with the expansion of the hiring and attracting teams, aligned with our revenue and headcount growth; (ii) acquisition-related expenses, including amortization of intangible assets from acquired companies; and (iii) the strengthening of our back-office teams in light of our IPO.

Adjusted EBITDA

Adjusted EBITDA

(in BRL thousand)

2Q22

2Q21

Var.

2Q22 x 2Q21

6M22

6M21

Var.

6M22 x 6M21

Net profit for the period

25,999

44,722

-41.9%

55,222

84,337

-34.5%

Adjustments

Net financial cost

17,533

1,989

781.5%

34,245

3,686

829.1%

Income tax expense

18,016

18,423

-2.2%

33,330

38,658

-13.8%

Depreciation and amortization

24,205

8,224

194.3%

43,596

16,019

172.2%

Stock-based compensation

(106)

328

-

1,133

501

126.1%

Consulting expenses

6,395

237

n.m

9,090

462

n.m

Government grants

(115)

(9)

n.m

(174)

(1,414)

-87.7%

Write-off (1)

-

-

0.0%

1,548

-

0.0%

Acquisition-related expenses (2)

8,464

-

0.0%

8,464

-

0.0%

Adjusted EBITDA (3)

100,391

73,915

35.8%

186,454

142,249

31.1%

Adjusted EBITDA Margin (3)

19.1%

23.4%

-4.3p.p

18.3%

23.3%

-4.9p.p

(1)

Non-cash expenses related to the inventory of property, plant, and equipment of Dextra, a recently acquired company.

(2)

Include fair value adjustment on accounts payable for business combination and acquisition-related retention bonuses.

(3)

Adjusted EBITDA and Adjusted EBITDA margin are Non-IFRS measures. See Non-IFRS financial measures section for more information.

In 2Q22, Adjusted EBITDA was R$100.4 million, an increase of 35.8% compared to 2Q21. Adjusted EBITDA margin was 19.1% in the quarter, a reduction of 4.3 percentage points compared to the same quarter of last year, due to the increase in SG&A expenses, as explained above. Sequentially, the adjusted EBITDA margin improved to 19.1% in 2Q22 from 17.5% in 1Q22, as a result of seasonal effects, such as gradual price readjustments on our contracts and a higher utilization rate.

Net Financial Expenses - Net financial expenses were R$17.5 million in 2Q22, compared to R$2.0 million in 2Q21, mainly due to the debt raised in July 2021 to finance the Dextra acquisition in the amount of R$650 million.

Depreciation and Amortization - Depreciation and amortization expenses totaled R$24.2 million in 2Q22, an increase of R$15.9 million compared to 2Q21, mainly due to the amortization of R$11.3 million from intangible assets from acquired companies.

Income tax expense - In 2Q22, income tax expense was R$18.0 million, a reduction of 2.2% lower compared to 2Q21. In the 6M22, income tax expense was R$33.3 million, a reduction of 13.8% year over year, while the income tax paid (cash effect) was R$21.1 million in the period, equivalent to a cash tax rate of 17%.

Net Profit and Adjusted Net Profit

Net Profit

(in BRL thousand)

2Q22

2Q21

Var.

2Q22 x 2Q21

6M22

6M21

Var.

6M22 x 6M21

Net profit for the period

25,999

44,722

-41.9%

55,222

84,337

-34.5%

Adjustments

Consulting expenses

6,395

237

n.m

9,090

462

n.m

Write-off (1)

-

-

0.0%

1,548

-

0.0%

Acquisition-related expenses (2)

19,859

-

0.0%

27,488

-

0.0%

Adjusted Net Profit (3) (4)

52,253

44,959

16.2%

93,347

84,799

10.1%

Adjusted Net Profit Margin (3)

10.0%

14.3%

-4.3p.p

9.2%

13.9%

-4.7p.p

(1)

Non-cash expenses related to the inventory of property, plant, and equipment of the recently acquired Dextra.

(2)

Include amortization of intangible assets from acquired companies, fair value adjustment on accounts payable for business combination and acquisition-related retention bonuses.

(3)

Adjusted Net profit and Adjusted net profit margin are Non-IFRS measures. See Non-IFRS financial measures section for more information.

(4)

Adjustments' amounts are gross of tax. Tax effects on non-IFRS adjustments totaled R$111 thousand negative in 2Q22, R$81 thousand negative in 2Q21, R$661 thousand negative in 6M22, and R$157 thousand negative in 6M21.

In 2Q22, net profit was R$26.0 million, 41.9% lower than 2Q21. Adjusted net profit was R$52.3 million, 16.0% higher than 2Q21, equivalent to an adjusted net profit margin of 10.0%. The reduction in the adjusted net profit margin was mainly due to higher SG&A and financial expenses.

Business Outlook

We expect our net revenue in the third quarter of 2022 to be at least R$540 million compared to our net revenue of R$376 million in the third quarter of 2021, a 46% growth at constant currency or a 44% growth on a reported basis.

For the full year of 2022, we are updating our outlook, mainly to reflect foreign exchange variation in the period. We expect net revenue growth of at least 55% year-over-year on a constant currency basis and net revenue growth on a reported basis of at least 49%, which includes a negative foreign currency translation impact of approximately 6 percentage points.

In addition, we estimate our adjusted EBITDA margin to be at least 19% for the full year of 2022, assuming an average exchange rate of 5.10 Brazilian Reais to the U.S. dollar for the full year.

These expectations are forward-looking statements and actual results may differ materially. See "Cautionary Statement on Forward-Looking Statements" below.

Conference Call Information

Cesar Gon, Bruno Guicardi, Stanley Rodrigues and Eduardo Galvão will host a video conference call to discuss the 2Q22 and 6M22 financial and operating results on August 18 at 8:00 a.m. Eastern Time / 9:00 a.m. BRT. The earnings call can be accessed at the Company’s Investor Relations website at https://investors.ciandt.com or at the following link: https://youtu.be/bO6R_oXKC3Q.

About CI&T

CI&T is a global digital specialist, a partner in end-to-end digital transformation for 100+ Large Enterprises & Fast Growth Clients. As digital natives, we bring a 27-year track record of accelerating business impact through complete and scalable digital solutions. With a global presence in 9 countries with a nearshore delivery model, CI&T is the Employer of Choice for more than 6,700 professionals in strategy, data science, design, and engineering, unlocking top-line growth, improving customer experience, and driving operational efficiency.

Basis of accounting and functional currency

CI&T maintains its books and records in Brazilian reais, the presentation currency for its unaudited condensed consolidated interim financial statements and the functional currency of our operations in Brazil. CI&T prepares its unaudited condensed consolidated interim financial statements in accordance with IFRS, as issued by the IASB, and International Financial Reporting Standard No 34—Interim Financial Reporting ("IAS 34").

Non-IFRS Financial Measures

We regularly monitor certain financial and operating metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions. These non-IFRS financial measures include Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Profit, Adjusted Net Profit Margin, Net Revenue at Constant Currency and Net Revenue Growth at Constant Currency, and should be considered in addition to results prepared in accordance with IFRS, but not as substitutes for IFRS results. In addition, our calculation of these non-IFRS financial measures may differ from those used by other companies, and therefore comparability may be limited. These non-IFRS financial measures are provided as additional information to enhance investors’ overall understanding of our operations’ historical and current financial performance.

CI&T is not providing a quantitative reconciliation of forward-looking Non-IFRS Net Revenue Growth at Constant Currency and Adjusted EBITDA to the most directly comparable IFRS measure because it is unable to reasonably predict the ultimate outcome of certain significant items without unreasonable effort. These items include, but are not limited to, stock-based compensation expense, acquisition-related expenses, the tax effect of non-IFRS adjustments and other items. These items are uncertain, depend on various factors, and could have a material impact on IFRS reported results for the guidance period.

We calculate Net Revenue at Constant Currency and Net Revenue Growth at Constant Currency by translating Net revenue from entities reporting in foreign currencies into Brazilian reais using the comparable foreign currency exchange average rates from the prior period to show changes in our revenue without giving effect to period-to-period currency fluctuations. Reported Net Revenue in 2021 considers the FX rate at the end of each month, while Net Revenue at Constant Currency considers the average FX rate for the period.

In calculating Adjusted Gross Profit, we exclude cost components unrelatedto the direct management of our services. For the periods herein, the adjustments applied were: (i) depreciation and amortization related to costs of services provided; and (ii) stock-based compensation expenses.

In calculating Adjusted EBITDA, we exclude components unrelated to the direct management of our services. For the periods herein, the adjustments were: (i) consulting expenses related to corporate reorganization, the initial public offering, and acquisition-related activities; (ii) government grants related to tax reimbursement in the Chinese subsidiary; (iii) stock-based compensation expenses; (iv) non-cash expenses related to the inventory of property, plant, and equipment of the recently acquired Dextra, and (v) acquisition-related expenses, including fair value adjustment on accounts payable for business combination and retention bonuses.

In calculating Adjusted Net Profit, we exclude cost components unrelated to the direct management of our services. For the periods herein, the adjustments applied were: (i) consulting expenses related to corporate reorganization, and the initial public offering, and as well as mergers and acquisition-related activities, (ii) non-cash expenses related to the inventory of property, plant, and equipment of the recently acquired Dextra and (iii) acquisition-related expenses, including amortization of intangible assets from acquired companies, fair value adjustment on account payables for business combination, and retention bonuses.

Cautionary Statement on Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, which include but are not limited to: the statements under "Business outlook," including expectations relating to revenues and other financial or business metrics; statements regarding relationships with clients; and any other statements of expectation or belief. The words "believe," "will," "may," "may have," "would," "estimate," "continues," "anticipates," "intends," "plans," "expects," "budget," "scheduled," "forecasts" and similar words are intended to identify estimates and forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements represent our management's beliefs and assumptions only as of the date of this press release. You should read this press release with the understanding that our actual future results may be materially different from what we expect. These statements are subject to known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: the current and future impact of the COVID-19 pandemic, the ongoing war in Ukraine and economic sanctions imposed by Western economies over Russia on our business and industry; the effects of competition on our business; uncertainty regarding the demand for and market utilization of our services; the ability to maintain or acquire new client relationships; general business and economic conditions; our ability to successfully integrate Dextra, Somo and Box 1824; and our ability to successfully execute our growth strategy and strategic plans. Additional information concerning these and other risks and uncertainties are contained in the "Risk Factors" section of CI&T's annual report on Form 20-F. Additional information will be made available in our annual reports on Form 20-F, and other filings and reports that CI&T may file from time to time with the SEC. Except as required by law, CI&T assumes no obligation and does not intend to update these forward-looking statements or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Unaudited condensed consolidated statement of profit or loss

(In thousands of Brazilian Reais)

Quarter ended June 30,

Six months ended June 30,

2022

2021

2022

2021

Net Revenue

525,015

315,324

1,016,887

611,616

Costs of services provided

(341,502

)

(205,768

)

(670,494

)

(394,140

)

Gross Profit

183,513

109,556

346,393

217,476

Selling expenses

(39,962

)

(18,801

)

(75,091

)

(37,780

)

General and administrative expenses

(78,390

)

(28,328

)

(143,311

)

(54,054

)

Research and technological innovation expenses

-

-

-

(4

)

Impairment loss on trade receivables and contract assets

356

2,891

(710

)

(367

)

Other income (expenses) net

(3,969

)

(184

)

(4,484

)

1,410

Operating profit before financial income and tax

61,548

65,134

122,797

126,681

Finance income

53,306

16,379

122,888

25,428

Finance cost

(70,839

)

(18,368

)

(157,133

)

(29,114

)

Net finance costs

(17,533

)

(1,989

)

(34,245

)

(3,686

)

Profit before Income tax

44,015

63,145

88,552

122,995

Income tax expense

(18,016

)

(18,423

)

(33,330

)

(38,658

)

Current

(17,115

)

(21,040

)

(22,523

)

(34,558

)

Deferred

(901

)

2,617

(10,807

)

(4,100

)

Net profit for the period

25,999

44,722

55,222

84,337

Earnings per share

Earnings per share – basic (in R$)

0.20

0.37

0.42

0.70

Earnings per share – diluted (in R$)

0.20

0.37

0.42

0.69

Unaudited condensed consolidated statements of financial position

(In thousands of Brazilian Reais)

Assets

June 30,
2022

December 31,
2021

Liabilities and equity

June 30,
2022

December 31,
2021

Cash and cash equivalents

104,190

135,727

Suppliers and other payables

24,655

33,566

Financial Investments

253,304

798,786

Loans and borrowings

183,465

164,403

Trade receivables

416,728

340,519

Lease liabilities

27,548

21,214

Contract assets

231,695

134,388

Salaries and welfare charges

214,367

234,173

Recoverable taxes

17,196

7,785

Accounts payable for business combination

113,559

48,923

Tax assets

1,016

2,810

Loss adjustments on hedge accounting

49,330

-

Gain adjustments on hedge accounting

9,595

-

Derivatives

7,033

535

Derivatives

7,736

896

Tax liabilities

8,482

13,345

Other assets

36,592

29,994

Other taxes payable

11,610

5,423

Total current assets

1,078,052

1,450,905

Contract liability

11,771

13,722

Other liabilities

20,942

13,669

Recoverable taxes

3,587

3,046

Total current liabilities

672,762

548,973

Deferred tax assets

22,954

31,989

Judicial deposits

9,337

3,079

Loans and borrowings

489,777

624,306

Restricted cash - Escrow account and indemnity asset

33,975

-

Lease liabilities

55,688

60,674

Other assets

3,950

2,974

Provisions

14,586

633

Property, plant and equipment

60,962

57,721

Accounts payable for business combination

67,627

36,803

Intangible assets and goodwill

1,078,187

738,803

Other liabilities

1,739

1,660

Right-of-use assets

73,998

73,827

Total non-current liabilities

629,417

724,076

Total non-current assets

1,286,950

911,439

Equity

Share capital

37

36

Share premium

929,984

915,947

Capital reserves

23,796

10,105

Profit reserves

181,179

125,957

Other comprehensive income

(72,173

)

37,250

Total equity

1,062,823

1,089,295

Total assets

2,365,002

2,362,344

Total equity and liabilities

2,365,002

2,362,344

Unaudited condensed consolidated statement of cash flow

(In thousands of Brazilian Reais)

June 30, 2022

June 30, 2021

Net profit for the period

55,222

84,337

Adjustments for:

Depreciation and amortization

43,596

16,019

Loss on the sale of property, plant and equipment and intangible assets

2,025

448

Interest, monetary variation and exchange rate changes

10,164

(1,168

)

Exchange rate changes and monetary adjustments on accounts payable for business combinations

(6,420

)

-

Exchange variation on escrow account related to Somo acquisition

2,668

-

Interest on lease

4,233

2,617

Unrealized loss (gain) on financial instruments

314

(2,405

)

Income tax expenses

33,330

38,658

Impairment losses on trade receivables

101

307

Impairment losses on contract assets

609

60

Provision for labor and tax risks

385

2

Share-based plan

1,133

390

Income on financial investments

(651

)

-

Fair value adjustment - accounts payable for business combination

5,123

-

Others

-

(42

)

Variation in operating assets and liabilities

Trade receivables

(74,260

)

(56,123

)

Contract assets

(88,256

)

(42,805

)

Recoverable taxes

(8,498

)

440

Tax assets

(158

)

(461

)

Judicial deposits

(6,258

)

7

Suppliers and other payables

(31,796

)

2,349

Salaries and welfare charges

(27,461

)

2,427

Tax liabilities

8,958

(14,088

)

Other taxes payable

986

1,130

Contract liabilities

(3,058

)

(5,807

)

Other receivables and payables, net

(9,140

)

(2,786

)

Cash (used in)/ generated from operating activities

(87,109

)

23,506

Income tax paid

(21,074

)

(23,321

)

Interest paid on loans and borrowings

(38,379

)

(1,966

)

Interest paid on lease

(3,174

)

(2,607

)

Net cash used in operating activities

(149,736

)

(4,388

)

Cash flows from investment activities:

Acquisition of property, plant and equipment and intangible assets

(15,520

)

(17,164

)

Acquisition of subsidiary net of cash acquired - Box 1824

(19,040

)

-

Acquisition of subsidiary net of cash acquired - Somo

(247,764

)

-

Escrow deposit (acquisition of Somo)

(23,061

)

-

Hedge accounting realization

16,134

-

Redemption of financial investments

514,394

-

Net cash from / used in investment activities

225,143

(17,164

)

Cash flow from financing activities:

Share-based plan contributions

-

691

Dividends paid

-

(71,039

)

Exercised stock options

8,785

-

Interest on equity, paid

-

(460

)

Payment of lease liabilities

(12,576

)

(7,854

)

Proceeds from loans and borrowings

133,789

88,496

Settlement of derivatives

(656

)

-

Payment of loans and borrowings

(244,384

)

(68,265

)

Net cash from financing activities

(115,042

)

(58,431

)

Net decrease in cash and cash equivalents

(39,635

)

(79,983

)

Cash and cash equivalents as of January 1st

135,727

162,827

Exchange variation effect on cash and cash equivalents

8,098

5,713

Cash reduction due to spin-off effect

-

(7,752

)

Cash and cash equivalents as of June 2022 and 2021

104,190

80,805

View source version on businesswire.com: https://www.businesswire.com/news/home/20220817005663/en/

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