Ambipar Emergency Response(AMBI) - 2024 Q2 - Quarterly Report

Financial Performance - Net revenue for the six months ended June 30, 2024, was R$1,419,574 thousand, a 17.5% increase compared to R$1,208,342 thousand for the same period in 2023[4] - Gross profit rose to R$249,707 thousand, reflecting an increase of 12.8% from R$221,288 thousand year-over-year[4] - Operating profit significantly improved to R$240,324 thousand, compared to R$95,344 thousand in the prior year, marking a growth of 152.5%[4] - Profit for the period was R$122,393 thousand, a turnaround from a loss of R$20,522 thousand in the same period last year[6] - Earnings per share (basic) increased to R$2.21, compared to a loss of R$0.17 per share in the previous year[4] - The company reported a total comprehensive income of R$312,894 thousand for the period, compared to a loss of R$145,197 thousand in the previous year[6] Asset and Liability Management - Total assets increased to R$4,967,482 thousand as of June 30, 2024, up from R$4,309,172 thousand at December 31, 2023, representing a growth of 15.3%[2] - Total current assets rose to R$1,658,706 thousand, up from R$1,440,224 thousand, indicating a growth of 15.2%[2] - Total liabilities increased to R$3,292,842 thousand as of June 30, 2024, compared to R$2,952,375 thousand at the end of 2023, reflecting a rise of 11.5%[3] - The company’s total equity as of June 30, 2024, was R$1,674,640 thousand, an increase from R$1,179,722 thousand as of June 30, 2023[7] Cash Flow and Operational Performance - Cash generated from operating activities for the first half of 2024 was R$291,815 thousand, compared to R$79,460 thousand in the prior year, indicating a strong operational performance[8] - The company reported a cash flow from financing activities of R$99,178 thousand in the first half of 2024, a decrease from R$702,562 thousand in the same period of 2023[8] - Ambipar Emergency Response's cash and cash equivalents at the end of the period were R$549,513 thousand, down from R$699,747 thousand at the end of June 2023[8] Business Operations and Market Presence - The company operates in 16 countries across multiple continents, enhancing its global presence in emergency response services[13] - Ambipar Emergency Response completed a business combination with HPX Corp. on March 3, 2023, which facilitated its listing on the NYSE American[12] - The company has over 400 bases worldwide and employs more than 7,500 people, with over 150,000 trained personnel available for emergency response[11] Corporate Governance and Structure - As of June 30, 2024, Ambipar Emergency Response maintains 100% ownership across all its subsidiaries, indicating strong control and integration within its operations[15] - The company became the holding company of the Group Response in June 2023 through a business combination, with Emergência Participações S.A. becoming a wholly owned subsidiary[18] - The consolidation method for all subsidiaries is full, ensuring comprehensive financial reporting and accountability[15] Financial Reporting and Compliance - The Unaudited Condensed Consolidated Interim Financial Statements have been prepared on a going concern basis, indicating the company can discharge its liabilities[24] - Management confirms that all relevant information for the financial statements corresponds to what is used in administration[22] - The company has not applied new IFRS standards in Brazil until they are issued in Portuguese and approved by the Federal Accounting Council[26] Risk Management - The company has established conservative financial risk management strategies to optimize liquidity, profitability, and safety[170] - Credit risk is managed through regular evaluations of client creditworthiness, with no credit limits exceeded during the period[184] - The Company’s liquidity risk management includes continuous monitoring of cash flow forecasts to ensure sufficient liquidity for operational needs[186] Accounting Policies - The company recognizes identifiable assets and liabilities at fair value during business combinations, measuring goodwill as the excess of consideration transferred over net assets acquired[54] - The expected loss on doubtful accounts is established based on an analysis of each client's default risk, considering various factors such as financial situation and payment history[56] - The company applies judgment in revenue recognition, assessing contract terms to determine if revenue should be recognized over time[50]