panhia Brasileira de Distribuicao(US:CBD)2024-06-28 21:28Legal and Dividend Obligations - The estimated amount to be paid in all lawsuits is approximately R$165 million as of December 31, 2023, compared to R$142 million as of December 31, 2022[530]. - The mandatory minimum dividend is set at 25% of the adjusted net profit, which is calculated after accounting for legal and contingency reserves[529]. - The company is required to allocate 5% of its net profit to a legal reserve for each fiscal year until accumulated losses are offset[529]. - The total amount of the "Expansion Reserve" may not exceed the amount of the company's share capital, which is determined after establishing legal and contingency reserves[525]. - Dividends can only be paid from net profit earned in a given fiscal year, reduced by accumulated losses and provisions for income taxes[526]. - The company may suspend the distribution of mandatory dividends if it threatens liquidity or the normal course of operations[524]. - The legal reserve account must equal 20% of the company's share capital, and it can only be used to increase share capital or offset accumulated losses[524]. - The company may implement a profit-sharing plan for employees and managers, but this can only occur in fiscal years where mandatory dividends have been declared[529]. Financial Performance and Assets - The company reported revenues of R$1,378 million for 2023, a decrease from R$1,411 million in 2022, representing a decline of approximately 2.3%[623]. - The net income for the year 2023 was R$293 million, compared to R$245 million in 2022, indicating an increase of about 19.6%[623]. - The total assets of the company were R$9,650 million in 2023, down from R$11,714 million in 2022, reflecting a decrease of approximately 17.6%[623]. - The company completed negotiations for the indirect sale of its interest in Cnova N.V. to the controlling shareholder Casino Guichard Perrachon for a cost of €10 million (R$53.5 million) in November 2023[623]. - The company reported current liabilities of R$5,351 million in 2023, compared to R$2,329 million in 2022, indicating a significant increase of approximately 130%[623]. - The shareholders' equity increased to R$1,758 million in 2023 from R$1,577 million in 2022, marking an increase of about 11.5%[623]. - The company lost control over Éxito in July 2023 due to a segregation process, impacting its financial structure and reporting[621]. - The company reported a total of 2,190 million in consolidated liabilities due within one year[634]. Inventory and Receivables - The company's inventory balance as of December 31, 2023, was R$1,952 million, down from R$2,046 million in 2022[590]. - The allowance for losses on inventory obsolescence and damages increased to R$86 million in 2023 from R$49 million in 2022[590]. - Trade receivables rose to R$458 million in 2023, up from R$417 million in 2022, with credit card receivables from companies increasing to R$109 million from R$79 million[606]. - The allowance for doubtful accounts remained stable at R$2 million in 2023, consistent with 2022, despite write-offs of R$25 million in 2023 compared to R$38 million in 2022[607]. - Accounts receivable from the GCB amounted to R$588 million in 2023, down from R$603 million in 2022, while accounts receivable from Assai were R$108 million, a new entry for 2023[608]. Financial Liabilities and Debt - The Group's financial liabilities are recognized initially at fair value, net of directly attributable transaction costs, and include trade and other payables, loans, and borrowings[547]. - The company’s financial liabilities are primarily measured at amortized cost, which is the most relevant category for the group[566]. - The net financial debt increased to R$1,844 million in 2023, compared to R$1,695 million in 2022, resulting in a net debt to equity ratio of 39%[702]. - Total borrowings and financing decreased to R$5,273 in 2023 from R$5,863 in 2022[714]. - The weighted average rate for debentures and promissory notes is CDI + 1.60% per year, with total amounts increasing to R$3,350 in 2023 from R$2,679 in 2022[714]. Impairment and Asset Valuation - The company evaluated financial assets for indications of impairment on each reporting date, impacting the recognition of impairment losses in the financial statements[544]. - The impairment loss recorded for property and equipment was R$8 million in 2023, reflecting ongoing asset evaluations[654]. - The company assessed no need for impairment charges on goodwill and tradenames with indefinite lives, indicating stable cash flow projections[686]. - The average sales growth rate used for impairment testing was 5.7% for periods exceeding the next five years, with a discount rate of 8.4%[675]. Investments and Capital Expenditures - The company allocated R$919 million for additions to property and equipment in 2023, focusing on expanding activities and improving existing facilities[654]. - The company’s strategic focus includes investments in technology and infrastructure to enhance operational efficiency and market presence[658]. - FIC's investments increased to R$864 million in 2023 from R$833 million in 2022, with no provision for investment losses related to Cnova N.V. in 2023 compared to a loss of R$863 million in 2022[646]. Cash and Cash Equivalents - The Group's cash and cash equivalents include R$74 million denominated in US Dollars as of December 31, 2023, compared to R$79 million on December 31, 2022[561]. - Cash and cash equivalents increased to R$2,971 million in 2023 from R$3,751 million in 2022, with cash and banks in Brazil rising to R$246 million from R$99 million[604]. - The company’s cash and cash equivalents decreased to R$2,971 million in 2023 from R$3,751 million in 2022[702].