Ambipar Emergency Response(AMBI) - 2024 Q4 - Annual Report

Financial Performance - Net revenue for the nine-month period ended September 30, 2024, reached R$2,431,178 thousand, a 31.4% increase from R$1,849,431 thousand in the same period of 2023[4] - Gross profit for the period was R$413,589 thousand, up from R$352,745 thousand, reflecting a gross margin improvement[4] - Operating profit increased significantly to R$399,026 thousand compared to R$226,933 thousand in the prior year, indicating strong operational efficiency[4] - Net income for the period was R$141,523 thousand, a substantial increase from R$33,161 thousand in the same period last year[5] - Earnings per share (basic) rose to R$2.55 from R$0.33, demonstrating improved profitability per share[4] - The total comprehensive income for the period was R$339,447 thousand, compared to a loss of R$91,514 thousand in the previous year, indicating a strong recovery[5] - Cash generated from operating activities for the period was R$465,512,000, up from R$156,838,000 in the previous year, indicating a growth of 196%[8] - The operating profit for the Company was BRL 218,388 thousand, while the profit for the year amounted to BRL 138,799 thousand[169] - The Company reported a profit for the year attributable to controlling interests of BRL 76,302 thousand[169] Assets and Liabilities - Total assets as of September 30, 2024, amounted to R$5,209,573 thousand, an increase from R$4,309,172 thousand at the end of 2023[3] - Total liabilities increased to R$3,512,375 thousand from R$2,952,375 thousand, primarily due to higher loans and financing[3] - As of September 30, 2024, the total current assets were BRL 618,516 thousand, while current liabilities stood at BRL 358,566 thousand, resulting in current net assets of BRL 259,950 thousand[169] - The Company’s non-current assets totaled BRL 1,139,538 thousand, with non-current liabilities of BRL 465,617 thousand, leading to non-current net assets of BRL 673,921 thousand[169] Cash and Financing - The company reported a significant increase in cash and cash equivalents, totaling R$440,908 thousand compared to R$423,266 thousand at the end of 2023[2] - As of September 30, 2024, cash and cash equivalents totaled R$440,908,000, a decrease from R$510,919,000 at the end of September 2023[8] - The company plans to sell its non-strategic fleet in Brazil, generating approximately R$166,000,000 in cash, with a monthly rental cost of R$6,400, aimed at reducing gross debt[17] - The issuance of 200,000 simple debentures with a nominal value of R$1,000 each was approved on September 3, 2024, to strengthen the company's financial position[18] - The total non-derivative financial liabilities as of September 30, 2024, amounted to R$ 2,038,853, compared to R$ 1,622,257 as of December 31, 2023[198] Strategic Focus and Market Presence - The company is focusing on expanding its market presence and enhancing its operational capabilities through strategic investments and potential acquisitions[4] - The company has a presence in 16 countries and operates over 400 bases globally, employing more than 7,500 people, which supports its growth strategy in emergency response services[11] Accounting and Financial Reporting - The Unaudited Condensed Consolidated Interim Financial Statements are expressed in thousands of Brazilian Reais (R$) and include all subsidiaries up to the same accounting date[25][30] - The financial statements have been prepared on a going concern basis, indicating the company will be able to discharge its liabilities[29] - The company has not identified any significant effects from the adoption of new IFRS standards, including IFRS 17 and amendments to IAS 1 and IAS 12[32][34][36] - The financial statements reflect a common control transaction basis, indicating a consistent accounting approach for the group[24] - The Company recognizes revenue when control of promised services is transferred to the customer, reflecting the consideration expected in exchange for those services[144] - Revenue from emergency response services is recognized over time, based on the input method, as the customer receives and consumes the benefits of the service[148] Risk Management - The Company’s credit risk management includes evaluating client creditworthiness and monitoring credit limits, with no credit limit exceeded during the period[192][193] - The Company’s financial risk management focuses on market risks, including interest rate and liquidity risks, with conservative strategies defined for liquidity and profitability[179][184] - The Company has not been exposed to significant transactional foreign currency risks as of September 30, 2024, and December 31, 2023[200] Environmental and Regulatory Compliance - The Company has established environmental certified policies to comply with environmental laws and regularly analyzes environmental risks[199]