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an S.A.(CSAN) - 2023 Q4 - Annual Report
CSANan S.A.(CSAN)2024-11-08 21:29

Financial Performance - For the fiscal year ended December 31, 2023, net sales increased by 0.4% to R39,468.5millioncomparedtoR39,468.5 million compared to R39,322.8 million in 2022[871]. - Gross profit rose by 24.2% to R10,918.6million,upfromR10,918.6 million, up from R8,766.0 million in the previous year[871]. - Profit for the year from continuing operations surged by 174.6% to R4,839.3million,comparedtoR4,839.3 million, compared to R2,771.0 million in 2022[871]. - Profit attributable to owners of the Company decreased by 6.9% to R1,094.4millionfromR1,094.4 million from R1,176.0 million in the previous year[871]. - Other income, net increased significantly from R1,752.2millioninFY2022toR1,752.2 million in FY 2022 to R3,924.4 million in FY 2023, driven by fair value changes in investment properties and dividends from Vale[901]. - The company reported a profit for the year of R4,026.4millionasofDecember31,2023[970].SalesandRevenue−Rumo′snetsalesincreasedby11.14,026.4 million as of December 31, 2023[970]. Sales and Revenue - Rumo's net sales increased by 11.1% to R10,937.7 million, driven by demand for key agricultural commodities[875]. - Compass's net sales decreased by 9.9% to R17,767.3million,primarilyduetoadeclineindistributednaturalgasvolume[877].−Moove′snetrevenuegrewby12.217,767.3 million, primarily due to a decline in distributed natural gas volume[877]. - Moove's net revenue grew by 12.2% to R10,078.6 million, attributed to acquisitions and increased sales volume[878]. - Rumo's net sales increased by R2,401.8million,or32.32,401.8 million, or 32.3%, to R9,841.5 million for the fiscal year ended December 31, 2022, driven by a 17% increase in tariffs and transported volume[924]. - Compass's net sales rose by 57.0%, or R7,160.8million,toR7,160.8 million, to R19,719.2 million, primarily due to the acquisition of Sulgás and Commit, contributing R2,504.8million,andtariffadjustmentsaveraging14.52,504.8 million, and tariff adjustments averaging 14.5%[925]. - Moove's net revenue increased by R2,867.6 million, or 46.9%, to R8,980.1million,mainlyduetotheacquisitionofPetroChoiceandTirreno,whichaddedR8,980.1 million, mainly due to the acquisition of PetroChoice and Tirreno, which added R1,368.8 million, and a 35.0% increase in lubricant sales volume[926]. - Radar's net sales surged to R834.6millionfromR834.6 million from R31.5 million, primarily due to acquisitions of land management companies contributing R576.9millionandafullyearofconsolidatedoperations[927].CostsandExpenses−Totalcostofsalesdecreasedby6.6576.9 million and a full year of consolidated operations[927]. Costs and Expenses - Total cost of sales decreased by 6.6% to R28,549.9 million from R30,556.8millionintheprioryear[882].−ThecostofsalesforCompassdecreasedby12.930,556.8 million in the prior year[882]. - The cost of sales for Compass decreased by 12.9% to R14,256.0 million, mainly due to reduced natural gas distribution volume[883]. - Moove's cost of sales increased by 5.3% to R7,359.6millioninFY2023,primarilyduetotheacquisitionofPetroChoiceandTirreno,whichaddedR7,359.6 million in FY 2023, primarily due to the acquisition of PetroChoice and Tirreno, which added R395.8 million to costs[884]. - Radar's cost of sales decreased by R406.8milliontoR406.8 million to R153.5 million in FY 2023, mainly due to reduced costs associated with real estate sales[885]. - Cosan Corporate's cost of sales fell by 61.7% to R3.6millioninFY2023,attributedtothesaleofTrizyinMarch2023[886].−Sellingexpensesincreasedby5.83.6 million in FY 2023, attributed to the sale of Trizy in March 2023[886]. - Selling expenses increased by 5.8% to R1,350.6 million, while general and administrative expenses rose significantly by 43.8% to R2,528.0million[871].−SellingexpensesforMooveroseby6.82,528.0 million[871]. - Selling expenses for Moove rose by 6.8% to R1,145.0 million in FY 2023, driven by the acquisition of PetroChoice and Tirreno and a 21.7% increase in freight expenses[892]. - General and administrative expenses for Moove surged by 85.8% to R645.6millioninFY2023,largelyduetotheconsolidationofPetroChoiceandTirreno′sresults[898].FinancialResults−Financeresults,netshowedasignificantincreaseinnetfinancialexpensetoR645.6 million in FY 2023, largely due to the consolidation of PetroChoice and Tirreno's results[898]. Financial Results - Finance results, net showed a significant increase in net financial expense to R7,897.1 million in FY 2023, up 53.1% from R5,157.9millioninFY2022[906].−ThetotalcostofgrossdebtdecreasedbyR5,157.9 million in FY 2022[906]. - The total cost of gross debt decreased by R3,270.3 million, or 38.9%, primarily due to a decrease in the average SELIC interest rate and the depreciation of the U.S. dollar[909]. - Income from financial investments and exchange rate in cash and cash equivalents increased to R2,057.4million,a15.02,057.4 million, a 15.0% increase from R1,788.5 million[910]. - The expense from financial investment on listed entities amounted to R3,147.0million,relatedtolossesfromtheadjustmentatfairvaluebasedonthemarketvalueofVale′sshares[911].−OtherchargesandmonetaryvariationsdecreasedbyR3,147.0 million, related to losses from the adjustment at fair value based on the market value of Vale's shares[911]. - Other charges and monetary variations decreased by R253.7 million, or 10.6%, from R1,927.4milliontoR1,927.4 million to R1,673.7 million[912]. - Income tax expenses amounted to R274.4millionforthefiscalyearendedDecember31,2023,comparedtoanincomeofR274.4 million for the fiscal year ended December 31, 2023, compared to an income of R118.4 million in the previous year[913]. - The effective tax rate was negative 5.4%, lower than the nominal corporate tax rate of 34% due to the recognition of a tax credit by Comgás[914]. Debt and Financing - The total debt as of December 31, 2023 was R56,904.7million,anincreaseof7.456,904.7 million, an increase of 7.4% from R52,987.2 million in 2022, primarily due to the issuance of senior notes[978]. - The company’s short-term debt as of December 31, 2023 was R4,882.4million,partofthetotaloutstandingdebt[977].−Thecompanyreportedatotaldebtof4,882.4 million, part of the total outstanding debt[977]. - The company reported a total debt of 2,451.1 million as of December 31, 2023, down from 2,641.7millionin2022,representingadecreaseofapproximately7.22,641.7 million in 2022, representing a decrease of approximately 7.2%[1009]. - The company has debentures totaling R1,596.9 million with an annual interest rate of 9.13% due in February 2029, an increase from R1,523.4millionin2022[1011].−Thecompany’stotalliabilitiesforseniornotesduein2027amountto1,523.4 million in 2022[1011]. - The company’s total liabilities for senior notes due in 2027 amount to 1,928.9 million, down from 3,587.3millionin2022,indicatingareductionofapproximately46.23,587.3 million in 2022, indicating a reduction of approximately 46.2%[1009]. - The company has a total of R1,208.1 million in debentures with an annual interest rate of 14.61% due in August 2025[1011]. Cash Flow and Capital Expenditures - The net cash flows generated from operating activities for the fiscal year ended December 31, 2023 were R10,276.4million,anincreaseofR10,276.4 million, an increase of R304.2 million or 3.0% compared to R9,972.2millionin2022[971].−NetcashflowsusedininvestingactivitiesdecreasedsignificantlytoR9,972.2 million in 2022[971]. - Net cash flows used in investing activities decreased significantly to R4,303.1 million in 2023 from R20,726.6millionin2022,representingadecreaseofR20,726.6 million in 2022, representing a decrease of R16,423.5 million or 79.2%[972]. - Cash flows used in financing activities were R4,516.6millionin2023,adecreaseofR4,516.6 million in 2023, a decrease of R12,802.8 million compared to net cash flows generated of R8,286.3millionin2022[976].−CapitalexpendituresforthefiscalyearendedDecember31,2023,totaledR8,286.3 million in 2022[976]. - Capital expenditures for the fiscal year ended December 31, 2023, totaled R6,268.0 million, compared to R$4,531.4 million in 2022[1030]. Market and Economic Conditions - Key trends affecting the company include general economic conditions in Brazil and globally, including impacts from geopolitical conflicts[1039]. - Potential inflation increases could lead to higher interest rates and reduced lending growth, affecting the company's operations[1040]. - Market volatility and instability may adversely impact the company's revenues[1040]. - Currency fluctuations and exchange rate controls could negatively affect international investor confidence[1041]. Regulatory and Compliance - The company has no off-balance sheet arrangements to finance operations and no subsidiaries not included in consolidated financial statements[1037]. - The company is not subject to any regulatory commitment to purchase assets as of December 31 for the years 2023, 2022, and 2021[1038]. - No new accounting standards have materially impacted the consolidated financial statements for the years ended December 31, 2023, 2022, and 2021[1043].