an S.A.(CSAN) - 2024 Q4 - Annual Report

Financial Performance - Net sales for the fiscal year ended December 31, 2024, increased by R$4,482.2 million, or 11.4%, to R$43,950.7 million compared to R$39,468.5 million in 2023[693] - Gross profit rose by R$2,796.1 million, or 25.6%, to R$13,714.7 million in 2024 from R$10,918.6 million in 2023[693] - Profit for the year from continuing operations decreased by R$13,274.9 million, or 274.3%, resulting in a loss of R$8,435.6 million in 2024 compared to a profit of R$4,839.3 million in 2023[693] - Rumo's net sales increased by R$2,998.7 million, or 27.4%, driven by a 5% increase in volumes transported and higher average transportation tariffs[697] - Compass's net sales grew by R$616.1 million, or 3.5%, primarily due to the acquisition of Compagas and increased volumes of distributed natural gas[698] - Moove's net revenue increased by R$169.7 million, or 1.7%, attributed to the implementation of the Moove Performance System[699] - Radar's leases and sales of land surged by R$698.4 million, or 93.9%, due to the sale of nine properties in 2024[700] Costs and Expenses - Total cost of sales rose by R$1,686.2 million, or 5.9%, to R$30,236.1 million in 2024 from R$28,549.9 million in 2023[702] - Selling expenses increased by R$225.3 million, or 16.7%, to R$1,575.9 million in 2024 compared to R$1,350.6 million in 2023[711] - Selling expenses increased by R$186.4 million, or 16.3%, to R$1,331.4 million for the fiscal year ended December 31, 2024, compared to R$1,145.0 million in 2023[714] - General and administrative expenses rose by 12.6% to R$2,845.3 million in 2024, up from R$2,527.9 million in 2023[716] - Moove's general and administrative expenses increased by 42.7% to R$921.2 million in 2024, primarily due to a R$175.3 million rise in depreciation and amortization expenses[720] Other Income and Financial Results - Other income, net decreased from R$3,924.4 million in 2023 to an expense of R$1,549.8 million in 2024, mainly due to a R$3,155.4 million impairment effect from extreme weather events[723] - Interest in earnings of associates rose significantly by R$1,368.6 million, or 390.6%, to R$1,719.0 million in 2024 from R$350.4 million in 2023[693] - Finance results, net totaled a financial expense of R$8,749.7 million in 2024, an increase of R$852.7 million, or 10.8%, compared to R$7,897.1 million in 2023[726] - Total income tax expenses rose significantly to R$3,190.5 million in 2024 from R$274.4 million in 2023, resulting in an effective tax rate of 60.8%[732] Profitability - Profit attributable to the Company's shareholders decreased from R$1,094.4 million to a loss of R$9,423.8 million for the fiscal year ended December 31, 2024[733] - Profit for the year from continuing operations rose significantly by 174.6% to R$4,839.3 million, compared to R$2,771.0 million in the previous year[735] - Profit attributable to owners of the Company decreased by 6.9% to R$1,094.4 million from R$1,176.0 million in 2022[735] Cash Flow and Capital Expenditures - Cash flows generated from operating activities increased to R$13,081.3 million in 2024, up R$2,755.9 million from R$10,276.4 million in 2023[784] - Net cash flows used in investing activities increased to R$4,488.3 million in 2024, compared to R$4,303.1 million in 2023, primarily due to increased acquisitions[785] - Net cash flows used in financing activities were R$6,605.9 million in 2024, an increase of R$2,089.3 million compared to net cash flows generated in 2023[786] - The company’s capital expenditures for the fiscal year ended December 31, 2024, were R$7,834.5 million, up from R$6,268.0 million in 2023, and R$4,531.4 million in 2022[801] Debt and Financing - Total debt increased by 16.8% to R$66,455.4 million as of December 31, 2024, from R$56,904.7 million in 2023[788] - The company maintained compliance with all financial covenants as of December 31, 2024[790] - Raízen Fuels issued two series of green bonds totaling U.S.$1,500 million (R$7,472.2 million) with maturities in March 2034 and March 2054[793] - The company has a loan of R$2,983 million with a 7.25% annual interest rate, maturing on June 27, 2031[792] - The company’s total current liabilities were R$4,403.1 million as of December 31, 2024, compared to R$4,882.4 million in 2023[796] - The company’s total non-current liabilities increased to R$62,052.3 million in 2024 from R$52,022.3 million in 2023[796] Investments and Acquisitions - Rumo's capital expenditures were R$5,492.7 million in 2024, up from R$3,689.9 million in 2023, focusing on asset renovation and infrastructure improvements[803][807] - Cosan Luxembourg S.A. commenced offers to purchase a total of U.S.$900 million in senior notes, purchasing U.S.$236.5 million of 5.500% notes due 2029, U.S.$273.2 million of 7.500% notes due 2030, and U.S.$268.7 million of 7.250% notes due 2031[802]