Cover
Cover | 12 Months Ended |
Dec. 31, 2020shares | |
Cover [Abstract] | |
Entity Registrant Name | Sendas Distributor S.A. |
Entity Central Index Key | 0001834048 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2020 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity a Well-known Seasoned Issuer | No |
Entity a Voluntary Filer | No |
Entity Reporting Status Current | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Incorporation, State or Country Code | D5 |
Entity Accounting Standard | International Financial Reporting Standards as issued by the International Accounting Standards Board |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 268,351,567 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2020 |
Consolidated Statement of Opera
Consolidated Statement of Operations and Comprehensive Income - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of profit or loss and other comprehensive income [abstract] | |||
Net operating revenue | R$ 36043 | R$ 28082 | R$ 23017 |
Cost of sales | (30,129) | (23,349) | (18,845) |
Gross profit | 5,914 | 4,733 | 4,172 |
Operating expenses, net | |||
Selling expenses | (2,811) | (2,273) | (1,908) |
General and administrative expenses | (435) | (352) | (275) |
Depreciation and amortization | (503) | (395) | (313) |
Other operating expenses, net | (97) | (11) | (3) |
Operating profit | 2,068 | 1,702 | 1,673 |
Net financial result | (443) | (200) | (120) |
Income before income taxes from continuing operations | 1,625 | 1,502 | 1,553 |
Income tax and social contribution | (436) | (426) | (477) |
Net income from continuing operations | 1,189 | 1,076 | 1,076 |
Discontinued operations | |||
Net income from discontinued operations, net of taxes | 367 | (16) | |
Net income for the year | 1,556 | 1,060 | 1,076 |
Items that may be subsequently reclassified to the statement of operations | |||
Exchange rate differences on translation of foreign investments | 358 | 220 | |
Cash flow hedge | 5 | ||
Other comprehensive income for the year | 358 | 225 | |
Total comprehensive income for the year | 1,914 | 1,285 | 1,076 |
Net income for the year attributable to: | |||
Controlling shareholders | 1,398 | 1,047 | 1,076 |
Non-controlling interest | 158 | 13 | |
Total of controlling and non-controlling income for the year | 1,556 | 1,060 | 1,076 |
Total comprehensive income attributable to: | |||
Controlling shareholders | 1,165 | 1,209 | 1,076 |
Non-controlling shareholders | 749 | 76 | |
Total comprehensive income for the year | R$ 1914 | R$ 1285 | R$ 1076 |
Basic and diluted earnings per share for continuing operations attributable to controlling shareholders (in Reais - R$) | R$ 4.43657 | R$ 4.17054 | R$ 6.21186 |
Basic and diluted earnings per share attributable to controlling shareholders (in Reais - R$) | R$ 5.21642 | R$ 4.05814 | R$ 6.21186 |
Consolidated Balance Sheet
Consolidated Balance Sheet - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | R$ 3532 | R$ 5026 |
Trade receivables | 182 | 491 |
Other accounts receivable | 34 | 206 |
Inventories | 3,739 | 5,190 |
Recoverable taxes | 768 | 1,119 |
Derivative financial instruments | 57 | 29 |
Other current assets | 37 | 169 |
Current assets other than non-current assets or disposal groups classified as held for sale | 8,349 | 12,230 |
Assets held for sale | 52 | |
Total current assets | 8,349 | 12,282 |
Non-current assets | ||
Other accounts receivable | 37 | |
Recoverable taxes | 866 | 962 |
Derivative financial instruments | 11 | 11 |
Related parties | 178 | 97 |
Restricted deposits for legal proceedings | 134 | 121 |
Other non-current assets | 1 | 84 |
Investments | 769 | 320 |
Investment properties | 3,051 | |
Property, plant and equipment | 7,476 | 14,652 |
Intangible assets | 1,037 | 4,288 |
Total non-current assets | 10,472 | 23,623 |
Total assets | 18,821 | 35,905 |
Current liabilities | ||
Trade payables, net | 5,058 | 9,770 |
Borrowings and financing | 280 | 316 |
Debentures | 1,840 | 1,156 |
Payroll and related taxes | 371 | 572 |
Lease liabilities | 172 | 404 |
Related parties | 41 | 152 |
Taxes payable | 104 | 327 |
Income tax and social contribution payable | 424 | |
Deferred revenues | 227 | 277 |
Dividends payable | 85 | 11 |
Acquisition of non-controlling interest | 466 | |
Other current liabilities | 184 | 479 |
Total current liabilities | 8,786 | 13,930 |
Non-current liabilities | ||
Borrowings and financing | 952 | 622 |
Debentures | 4,759 | 6,727 |
Deferred income tax and social contribution | 82 | 1,191 |
Provision for legal proceeding | 282 | 349 |
Lease liabilities | 2,604 | 3,347 |
Deferred revenues | 1 | 2 |
Other non-current liabilities | 8 | 36 |
Total non-current liabilities | 8,688 | 12,274 |
Shareholders' equity | ||
Capital stock | 761 | 4,421 |
Capital reserve | 4 | 18 |
Profit reserve | 582 | 2,497 |
Other comprehensive income | 162 | |
Equity attributable to controlling shareholders | 1,347 | 7,098 |
Non- controlling interests | 2,603 | |
Total shareholders' equity | 1,347 | 9,701 |
Total liabilities and shareholders' equity | R$ 18821 | R$ 35905 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - BRL (R$) R$ in Millions | Capital stock [member] | Capital reserves: Other reserves [member] | Capital reserves: Stock options [member] | Profit reserves: Legal reserve [member] | Profit reserves: Profit retention [member] | Retained earnings [member] | Accumulated other comprehensive income [member] | Total [member] | Non-controlling interests [member] | Total |
Beginning balance at Dec. 31, 2017 | R$ 2252 | R$ 8 | R$ 70 | R$ 790 | R$ 96 | R$ 3024 | R$ 3024 | |||
Other comprehensive income | ||||||||||
Net income for the year | 1,076 | 1,076 | 1,076 | |||||||
Comprehensive income for the year | 1,076 | |||||||||
Non-cash capital contribution | 99 | 99 | 99 | |||||||
Stock options granted | 8 | 8 | 8 | |||||||
Interest on own capital | (115) | (115) | (115) | |||||||
Legal reserve | 55 | (55) | ||||||||
Reversal of profit retention | 1,042 | (1,042) | ||||||||
Ending balance at Dec. 31, 2018 | 2,351 | 16 | 125 | 1,717 | (117) | 4,092 | ||||
Other comprehensive income | ||||||||||
Net income for the year | 1,047 | 1,047 | 13 | 1,060 | ||||||
Foreign exchange rate variation of foreign investments | 157 | 157 | 63 | 220 | ||||||
Cash flow hedge | 5 | 5 | 5 | |||||||
Comprehensive income for the year | 1,047 | 162 | 1,209 | 76 | 1,285 | |||||
Hyperinflationary economy effect | 22 | 22 | 7 | 29 | ||||||
Non-cash capital contribution | 67 | 67 | 67 | |||||||
Capital increase | 2,003 | 2,003 | 2,003 | |||||||
Stock options granted | 2 | 2 | 2 | |||||||
Interest on own capital | (247) | (247) | (247) | |||||||
Legal reserve | 52 | (52) | ||||||||
Reversal of profit retention | 878 | (878) | ||||||||
Interim dividends | (50) | (50) | (37) | (87) | ||||||
Non- controlling interests | 2,557 | 2,557 | ||||||||
Ending balance at Dec. 31, 2019 | 4,421 | 18 | 177 | 2,320 | 162 | 7,098 | 2,603 | 9,701 | ||
Other comprehensive income | ||||||||||
Net income for the year | 1,398 | 1,398 | 158 | 1,556 | ||||||
Foreign exchange rate variation of foreign investments | (233) | (233) | 591 | 358 | ||||||
Equity on other comprehensive income | 1,945 | 1,945 | 15 | 1,960 | ||||||
Comprehensive income for the year | 1,398 | 1,712 | 3,110 | 764 | 1,914 | |||||
Capitalization credits- Spin-off | 140 | 140 | 140 | |||||||
Capital increase - Bellamar | 769 | 769 | 769 | |||||||
Capital increase - assets and liabilities indemnity | 127 | 127 | 127 | |||||||
Corporate restructuring | (5,715) | (19) | (30) | (2,866) | (1,874) | (10,504) | (3,116) | (13,620) | ||
Transactions with non-controlling shareholders | (22) | (22) | (22) | |||||||
Valorization PUT subsidiary Disco | (102) | (102) | ||||||||
Hyperinflationary economy effect | 5 | 5 | ||||||||
Others | (11) | (11) | ||||||||
Non-cash capital contribution | 369 | 369 | 369 | |||||||
Capital increase | 650 | 650 | 650 | |||||||
Stock options granted | 5 | 5 | 5 | |||||||
Interest on own capital | (310) | (310) | (310) | |||||||
Dividends | (85) | (85) | (143) | (228) | ||||||
Legal reserve | 5 | (5) | ||||||||
Reversal of profit retention | 1,393 | (1,393) | ||||||||
Ending balance at Dec. 31, 2020 | R$ 761 | R$ 19 | R$ 23 | R$ 152 | R$ 430 | R$ 1347 | R$ 1347 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flow from operating activities | |||
Profit from continued operation | R$ 1189 | R$ 1076 | R$ 1076 |
Profit from discontinued operation | 367 | (16) | |
Net income for the year | 1,556 | 1,060 | 1,076 |
Adjustment for reconciliation of net income | |||
Deferred income tax and social contribution | (372) | 162 | 175 |
Loss on disposal of property, plant and equipment | 588 | 50 | |
Depreciation and amortization | 1,372 | 484 | 341 |
Financial changes | 785 | 431 | 171 |
Share of (profit) and loss of associate | (27) | 5 | |
Provision for (reversal of) legal proceeding | 77 | 19 | (46) |
Provision write-off assets | 24 | ||
Share-based payments | 5 | 2 | 8 |
Provision for allowance for inventory losses and damages | 13 | 5 | (3) |
Gain on leasing write-off | (517) | (1) | (15) |
Allowance for doubtful accounts | 51 | 3 | |
Reversal of VAT provision | (369) | ||
Adjustments to reconcile profit (loss) | 3,555 | 2,167 | 1,391 |
Variations in operating assets and liabilities | |||
Trade receivables | (155) | 21 | 63 |
Inventories | (1,029) | (153) | (477) |
Recoverable taxes | (46) | (326) | (161) |
Restricted deposits for legal proceedings | (14) | (1) | |
Other assets | (10) | (106) | (45) |
Trade payables, net | 877 | 1,671 | 779 |
Payroll and related taxes | 121 | 36 | 48 |
Related parties | (54) | (17) | 10 |
Provision for legal proceeding | (41) | (22) | (6) |
Taxes and social contributions payable | 556 | 69 | 66 |
Income tax and social contribution, paid | (67) | (131) | (244) |
Deferred revenue | (107) | (153) | 58 |
Other liabilities | (88) | 104 | 63 |
Cash flows from (used in) operations | (57) | 992 | 154 |
Net cash generated by operating activities | 3,498 | 3,159 | 1,545 |
Cash flow investment activities | |||
Capital contribution in associates | (31) | ||
Purchase of property, plant and equipment | (1,562) | (1,357) | (907) |
Purchase of intangible assets | (82) | (52) | (41) |
Proceeds from the sale of property, plant and equipment | 604 | 362 | 22 |
Acquisition of subsidiaries, net of cash | (3,311) | ||
Purchase of investment property | (15) | (12) | |
Subsidiary spin-off | (3,687) | ||
Net cash from corporate reorganization | (14) | ||
Net cash used in investment activities | (4,787) | (4,370) | (926) |
Cash flow financing activities | |||
Capital increase | 650 | 2,003 | |
Proceeds from borrowings and financing | 2,852 | 9,395 | 417 |
Payment of borrowings and financing | (3,052) | (6,124) | (201) |
Dividends and interest on equity paid | (489) | (299) | (115) |
Payment of lease liabilities | (756) | (267) | (200) |
Transaction with non-controlling interest | 2 | 7 | |
Net cash generated by (used in) financing activities | (793) | 4,715 | (99) |
Net (decrease) increase in cash and cash equivalents | (2,082) | 3,504 | 520 |
Exchange rate variation on cash and cash equivalents | 588 | 111 | |
Cash and cash equivalents at the beginning of the year | 5,026 | 1,411 | 891 |
Cash and cash equivalents at the end of the year | R$ 3532 | R$ 5026 | R$ 1411 |
1 Corporate information
1 Corporate information | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information | |
Corporate information | 1 Corporate information Sendas Distribuidora S.A. ("Sendas Distribuidora" or the “Company”) is mainly engaged in the retail and wholesale sale of food, bazar, and other products through its stores, represented by the banner “ASSAÍ”. Sendas Distribuidora is based in the State of Rio de Janeiro, at Avenida Ayrton Senna, 6.000, Lote 2 - Anexo A, Jacarepaguá/RJ. On December 31, 2020, the Company operated 184 stores and 12 Distribution Centers in 22 states and Federal District in Brazil. On December 31, 2020, the Company completed a corporate reorganization (the “Transaction”) that resulted in the separation of the Company’s cash and carry business under the ASSAÍ banner from the traditional retail business of Companhia Brasileira de Distribuição (“GPA”). As a result of the Transaction, the Company ceased to be a wholly-owned subsidiary of GPA and became a direct subsidiary of Wilkes Participações S.A. (“Wilkes”), whose parent company is Casino Guichard Perrachon (“Casino”), a French company listed in the Paris Stock Exchange. See note 1.3. 1.1 Acquisition and subsequent distribution of Almacenes Éxito S.A. On November 27, 2019, the Sendas Distribuidora completed a public offering in Colombia to acquire the shares of Almacenes Éxito S.A. (“Éxito”) from the public including those owned by Casino. Éxito is a Colombian company that operates the Éxito, Carulla, Super Inter, Surtimax and Surtimayorista supermarket and hypermarket banners in Colombia, the Libertad banner in Argentina and the Disco and Devoto banners in Uruguay. Additionally, Éxito also operates shopping centers in Colombia under the banner Viva. Éxito is listed on the Colombian Securities Exchange. Further details of the acquisition are disclosed in note 14. On December 31, 2020, as part of the Transaction, the Company distributed, to GPA, all of the shares of Éxito. As a result, Éxito and its subsidiaries (collectively, the “Éxito Group”) have been presented as discontinued operation. See notes 1.3 and 33. 1.2 Listing of Sendas Distribuidora The Transaction contemplated the listing of the Company’s common shares on the B3 S.A. – Brasil, Bolsa, Balcão (“B3”) and the Company’s American Depositary Shares (“ADSs”) on the New York Stock Exchange (“NYSE”). On December 11, 2020, the Company became a publicly held company in Brazil, registered with the Brazilian Securities and Exchange Commission (“CVM”) under category “A”. On February 10, 2021, the Company’s request to list its common shares to trade on the Novo Mercado segment of the B3 was approved, and the Company’s common shares started trading on the B3 on March 1, 2021, under the ticker symbol “ASAI3”. On February 12, 2021, the Company’s request to list its ADSs representing common shares on the NYSE was approved, and the Company’s ADSs started trading on the NYSE on March 8, 2021, under the ticker symbol “ASAI”. In connection with the Transaction, holders of GPA’s common shares received one common share issued by the Company for each common share of GPA held at the close of trading on February 26, 2021. In addition, holders of GPA’s ADSs received one ADS (each representing one common share of the Company) for each ADS of GPA held at the close of trading on March 2, 2021. 1.3 Corporate Reorganization The initial study to segregate Sendas Distribuidora through a partial spin-off from its parent company GPA was approved, by the Board of Directors meeting, held on September 9, 2020. On November 19, 2020, the Company obtained from its creditors all the necessary consents to undertake the Transaction including holders of the Company’s debentures and promissory notes, as the case may be, agreed to, among other things, amend the interest rates charged for each series of debentures, release GPA as guarantor of the Company's debentures and promissory notes, and amend certain financial covenants upon the conclusion of the Transaction. The total amount of the renegotiated debt was R$6,644, representing 85% of the Company's gross debt on December 31, 2020. In addition, the Company obtained a "waiver" for the compliance of the financial covenants for the period from December 31, 2020 through December 31, 2023 and as a result, the amount of R$71 was recognized in the financial result, which is recorded under “cost of debt”. See note 28. At meetings held on December 12, 2020 and disclosed to the market on December 14, 2020, the Board of Directors of the Company and GPA approved the Transaction to separate the cash and carry business under the ASSAÍ banner from the traditional retail business of GPA. At the Extraordinary Shareholders’ Meeting held on December 31, 2020, shareholders of the Company and GPA approved the Transaction, as described below: The Company engaged in an exchange transaction with GPA (the “Exchange Transaction”) in which certain assets of GPA were transferred to the Company in exchange for an equivalent value of the shares of Éxito held by the Company (corresponding to 9.07% of the total outstanding shares of Éxito). The assets of GPA transferred to the Company consisted of: 50% of the shares of Bellamar Empreendimentos e Participações Ltda. (“Bellamar”), a holding company that holds an investment in 35.76% of the shares of Financeira Itaú CBD S.A. – Crédito, Financiamento e Investimento (“FIC”), in the amount of R$769 million, see note 14.1; and five parcels of real estate (the “Real Estate Assets”), in the aggregate amount of R$146 million, which may be developed as sites for new stores in the future, see note 16.2. Following and contemporaneously with the Exchange Transaction, the Company distributed to GPA the remaining shares of Éxito held by the Company (corresponding to 87.80% of the total outstanding shares of Éxito). The Company distributed certain assets to GPA in the net amount of R$20 million. GPA conducted the following capital contributions: GPA transferred to the Company the net assets of stores that may be developed by the Company in the future, with a residual value of R$45 million, see note 24.1; GPA contributed intercompany receivables to Company for an amount of R$140 million; and GPA contributed R$500 million in cash to the Company. In addition, on December 12, 2020, the Company entered into a Separation Agreement with GPA, which provides a framework for the Company’s relationship with GPA following the Transaction. Pursuant to the Separation Agreement, the Company will recognize certain assets and liabilities related to contingencies and their related judicial deposits for which the parties have agreed to be responsible following the Transaction, in a net amount of R$127 million, see note 12. 1.3.1 Derecognition of Éxito subsidiary The following is Éxito’s balance sheets as of December 31, 2020, which were derecognized in the Company’s consolidated balance sheet as a result of the Transaction described above. Upon the derecognition Éxito, which was the Company’s only subsidiary, the Company no longer presents consolidated financial statements. Notes As of December 31, 2020 (Transaction date) Current assets Cash and cash equivalents 3,687 Trade receivables 384 Other accounts receivables 220 Inventories 2,993 Recoverable taxes 570 Other current assets 130 7,984 Assets held for sale 30 Total current assets 8,014 Non-current assets Related parties 82 Restricted deposits for legal proceeding 3 Other non-current assets 171 Investments 13 480 Investment properties 15 3,639 Property, plant and equipment 16.2 10,504 Intangible assets 17 4,051 Total non-current assets 18,930 Total assets 26,944 Current liabilities Trade payable 6,449 Borrowings and financing 19.14 1,051 Payroll and related taxes 375 Lease liabilities 21.3 377 Related parties 77 Taxes and social contributions payable 288 Acquisition of non-controlling interest 636 Deferred revenues 200 Dividends payable 40 Other current liabilities 236 Total current liabilities 9,729 Non-current liabilities Borrowings and financing 19.14 520 Deferred income tax and social contribution 883 Provision for legal proceeding 20 139 Lease liabilities 21.3 2,039 Other non-current liabilities 39 Total non-current liabilities 3,620 Shareholders´ equity Total shareholders´ equity 13,595 Total Liabilities and Shareholders´ equity 26,944 1.4 Impacts of the pandemic on the Company’s financial statements The Company has been monitoring the spread of COVID-19 (Coronavirus) and its impacts on its operations. Management took actions, among them, we appointed a crisis committee composed of senior management, which makes decisions in line with recommendations of the Brazilian Ministry of Health, local authorities, and professional associations. The Company implemented all the measures to mitigate the transmission of virus at our stores, distribution centers, and offices, such as frequent sanitization, employees’ safety/protection equipment, flexible working hours, and home office, among others. Since the beginning of the COVID-19 outbreak, our stores have remained open during periods of general lockdown, as we are considered an essential service. The Company has a strong commitment to society to continue selling essential products to its customers. We did not face supply-side hurdles from industries that continued supplying our distribution centers and stores. In this regard, the Company fully analyzed its financial statements, in addition to updating the analyses of going concern. Below are the key topics analyzed: The Company reviewed its budget, adopted to estimate the calculation of recovery of the store assets and intangible assets on December 31, 2020, and no significant reductions were seen in revenues, and in other items of the income statement to evidence impairment of these assets. Due to uncertainties concerning the end of the pandemic and its macroeconomic effects, the Company analyzed the indication of impairment for certain assets and, accordingly, updated its impairment tests (see note 16.1). The recoverable value is determined by calculating the value in use, from cash projections deriving from financial budgets, which were reviewed and approved by senior management for the next three years, considering the assumptions updated for December 31, 2020. The discount rate applied to cash flow projections is 9.8% on December 31, 2020 (8.4% on December 31, 2019), and the cash flows to exceed three years are extrapolated, applying a growth rate of 4.6% on December 31, 2020 (4.8% on December 31, 2019). As a result of this analysis, we did not identify the need for recording a provision for impairment of these assets; The Company analyzed the collection of balances of accounts receivable from credit card operators, clients, galleries at our stores, property rentals, and concluded that, at this point, it is not necessary to record provisions, in addition to those already recorded; Concerning inventories, the Company does not foresee the need to make a market price adjustment; Financial instruments already reflect the market assumptions in their valuation, there are no additional exposures not disclosed. The Company is not exposed to significant financing denominated in US dollars; At this point, the Company does not foresee additional funding; and Finally, the costs necessary to adapt the Company’s stores to serve the public were not significant and are highlighted in note 27 – Other operating expenses, net. In summary, according to Management’s estimates and the monitoring of the impacts of the pandemic, there are no effects that should be recorded in the Company’s financial statements, nor are there any effects on the continuity and / or estimates of the Company that would justify changes or recording provisions in addition to those already disclosed. 1.5 Sale and Leaseback Transaction In line with the Company’s asset monetization strategy, on March 5, 2020, the Company entered into a Sale and Leaseback Transaction with investment funds administered by BRL Trust Distribuidora de Títulos e Valores Mobiliários S.A. and managed by TRX Gestora de Recursos Ltda., by signing the “Private Instrument of Real Property Purchase and Sale and leaseback Commitment and Surface Real Right”. This agreement initially includes the sale of 13 real properties owned by the Company, for a total amount of R$532. • On May 29, 2020, the Company sold 4 of these real estate properties, for a total amount of R$175 paid in cash. • On June 29, 2020, the Company sold the other 4 real estate properties, for the total amount of R$206, paid in cash. • On July 22, 2020, the Company sold an additional 4 real estate properties for a total amount of R$131, excluding 1 real property of non-relevant amount out of total volume. The Company recognized a gain on sale of R$52 as result of these transactions, see note 27. Concurrently with the sale transaction, the parties signed lease agreements for each real property, each with a 15-year term, renewable for an equal period, ensuring the continuity of the Company’s operations in the real properties with sustainable financial conditions. |
2 Basis of preparation
2 Basis of preparation | 12 Months Ended |
Dec. 31, 2020 | |
Basis Of Preparation | |
Basis of preparation | 2 Basis of preparation The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standard Board (“IASB”). The consolidated financial statements have been prepared on a historical cost basis except for certain financial instruments measured at their fair value. All relevant information in the financial statements is being evidenced by and corresponds to that used by Management in the administration of the Company. The consolidated financial statements are presented in millions of Brazilian Reais (R$), which is the functional currency of the Company. The functional currency of the subsidiaries located abroad is the local currency of each jurisdiction. The consolidated financial statements have been prepared on a going concern basis. The consolidated financial statements for the fiscal year ended December 31, 2020, 2019 and 2018 were approved by the Board of Directors on April 28, 2021. 2.1 Basis of consolidation The consolidated financial statements include the financial information of all subsidiaries over which Sendas Distribuidora exercises control directly or indirectly. The determination if a subsidiary is controlled by Sendas Distribuidora and the basis of consolidation are in accordance with the requirements of IFRS 10 – Consolidated Financial Statement. The consolidated financial statements of the subsidiaries are prepared on the same closing date of the reporting period of Sendas Distribuidora, using consistent accounting policies. All balances and transactions, including income and expense, unrealized gains and losses, and dividends resulting from intercompany operations included in the consolidation are fully eliminated. Gains or losses resulting from changes in equity interest in subsidiary, which do not result in loss of control, are directly recorded in equity. Losses are attributed to the non-controlling interest, even if it results in a deficit balance. In the consolidated financial statements, Sendas consolidates all its subsidiary and reports non-controlling interests in a separate line item in shareholders’ equity and statements of operations. The list of subsidiaries is presented in Note 13. |
3 Significant accounting polici
3 Significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies | |
Significant accounting policies | 3 Significant accounting policies The main accounting policies and practices are described in each corresponding explanatory note, except for those below that are related to more than one explanatory note. Accounting policies and practices have been consistently applied to the years presented in the Company´s consolidated financial statements. 3.1 Foreign currency transactions Foreign currency transactions are initially recognized at the exchange rate of the corresponding currencies at the date the transactions qualify for recognition. Assets and liabilities denominated in foreign currencies are translated into Brazilian Reais, using the spot exchange rate at the end of each reporting period. Gains or losses on changes in exchange rate variations are recognized as financial income or expense. 3.2 Classification of assets and liabilities as current and non-current The Company presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: · expected to be realized or intended to be sold or consumed within twelve months from the end of the reporting periods · held primarily for the purpose of trading · expected to be realized within twelve months after the reporting period or · cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as non-current. A liability is current when it is: · expected to be settled within twelve months from the end of the reporting periods · held primarily for the purpose of trading · due to be settled within twelve months after the reporting period or · there is no unconditional right to defer the settlement of the liability for at least twelve months after · the reporting period are classified as current liabilities. All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as “non-current” and presented net when appropriate in accordance with the provisions of IAS 12. 3.3 Foreign operation For each entity, the Company determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. On consolidation, the financial statements of foreign operations are translated into Brazilian Reais, as follows: · Assets and liabilities, including goodwill, are translated into Brazilian Reais at the exchange rate prevailing at the reporting date. · The statements of operation are translated into Brazilian Reais using the average rate for the period except when significant fluctuations in the exchange rate occurs, in which case, the rate at the transaction date is used. · Equity accounts are maintained at the historical balance in Reais. The exchange rate differences arising from the translation are recognized in other comprehensive income. When a foreign operation is disposed of, the component of other comprehensive income related to that particular foreign operation is reclassified to profit or loss. 3.4 Hyperinflation Starting from September 2018, Argentina has been considered a hyperinflationary economy. As per IAS 29 – Financial Reporting in Hyperinflationary Economies, the non-monetary assets and liabilities, equity items and the statement of operation of the indirect subsidiary Libertad, headquartered in Argentina, a direct subsidiary of Éxito, whose functional currency is the Argentinean peso, are being adjusted so that amounts are reported in the monetary measurement unit at the end of the reporting period. This unit considers the effects measured by the Consumer Price Index in Argentina starting January 1, 2017 and Argentina’s Domestic Retail Price Index up to December 31, 2016. Consequently, as required by IAS 29, the operating results of the indirect subsidiary Libertad must be considered as highly inflationary starting from September 1, 2018 (start of the period in which a hyperinflationary scenario was identified). 3.5 Transactions between entities under common control IFRS does not provide specific guidance to account for transactions between entities under common control. The Company accounts for transactions between entities under common control with the purpose of a corporate reorganization, without economic substance, at historical cost with any resulting effect recorded in shareholders’ equity. Business combinations with economic substance are recorded following the provisions of IFRS 3, Business Combinations. 3.6 Discontinued operations A discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale, and: i) represents a separate major line of business or geographical area of operations; ii) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or iii) is a subsidiary acquired exclusively with a view to resale. Discontinued operations are excluded from the results of continuing operations, being presented as a single amount in the result after taxes from discontinued operations in the statement of operations. See note 33. All other notes to the financial statements include amounts for continuing operations, unless otherwise mentioned. 3.7 Dividends The distribution of dividends to the Company’s shareholders is recognized as a liability at the end of the year, based on the minimum mandatory dividends prescribed in the bylaws. Any amount exceeding this minimum is recorded only on the date on which such additional dividends are approved by the Company’s shareholders, see note 24.2. 3.8 Cash flow, interest payments The interest payments on borrowing and finance settled by the Company are being disclosed in the financing activities and is included with payments on related borrowing and finance, and lease payment. The total of interest payment on December 31, 2020 was R$ 549 (R$ 116 on December 31, 2019 and R$ 24 on December 31, 2018). |
4. Presentation of Exito as dis
4. Presentation of Exito as discontinued operations | 12 Months Ended |
Dec. 31, 2020 | |
Presentation Of Exito As Discontinued Operations | |
Presentation of Exito as discontinued operations | 4 Presentation of Éxito as discontinued operations The consolidated statement of operations for the year ended on December 31, 2019 has been recast present Éxito as a discontinued operation, as a result of the Transaction, in accordance with IFRS 5 – Non-current assets held for sale and discontinued operations. See note 1.3. |
5 Adoption of new procedures, a
5 Adoption of new procedures, amendments to and interpretations of existing standards issued | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax And Social Contribution | |
Adoption of new procedures, amendments to and interpretations of existing standards issued by the IASB and published standards effective from 2018 | 5 Adoption of new procedures, amendments to and interpretations of existing standards issued by the IASB and published standards effective from 2018 5.1 Amendments to IFRSs and new interpretations of mandatory application starting at 2020, 2019 and 2018 The Company applied amendments and new interpretations to IFRS as issued by IASB, which were effective for accounting periods beginning on or after January 1, 2019. The main new standards adopted are the following: Statement Description Effective date IFRS 16 – Leases (“IFRS16”) IFRS 16 supersedes IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognize most leases on the balance sheet. Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in IAS 17. Therefore, IFRS 16 does not have an impact for leases where the Company is the lessor. See Note 5.1.1 for the impact. 01/01/2019 IFRIC 23 - Uncertainty over Income Tax treatment (“IFRIC23”) The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty. that affects the application of IAS 12 Income Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. See Note 5.1.2 for the impact. 01/01/2019 Amendments to IFRS 3 – Business Combinations (*) The amendments to IFRS 3 clarify that to be considered a business, an integrated set of activities and assets must include, at a minimum, an input of resources and a substantive process that, together, contribute significantly to the ability to generate output of resources. 01/01/2020 IAS 1: Definition of material omission Aligns the definition of omission in all standards defining what information is material if its omission, distortion or obscuration can reasonably influence decisions that the main users of the general purpose financial statements make based on these financial statements, which provide financial information about a specific report of the entity. 01/01/2020 Amendments to IAS39, IFRS7 and IFRS9: Reference Interest Rate Reform The amendments to Pronouncements IAS 39, IFRS 7 and IFRS 9 provide exemptions that apply to all protection relationships directly affected by the reference interest rate reform. A protective relationship is directly affected if the reform raises uncertainties about the period or the value of cash flows based on the reference interest rate of the hedge object item or hedge instrument. 01/01/2020 Review of Conceptual Framework Concepts and guidelines on presentation and disclosure, measurement bases, financial report objectives and useful information. 01/01/2020 Benefits provided to lessees in connection with the COVID-19 pandemic As a practical expedient, the lessee may choose not to assess whether a Covid-19 Related Benefit Granted to Lessee under a Lease Agreement is a modification of the lease. The Company does not use this practical expedient. 01/01/2020 (Published on 07/07/2020) (*) Applicable for acquisitions concluded after January 1, 2020. The adoption of these standards did not result in a material impact on the Company's financial statements. New and amended standard and interpretation adopted in 2019 5.1.1 Adoption of IFRS 16 – Leases The Company adopted IFRS 16 using the full retrospective method of adoption, with the date of application of January 1, 2019. In accordance with the full retrospective method of adoption, the Company applied IFRS 16 at the date of initial application as if it had already been effective at the commencement date of existing lease contracts. The Company also elected to use the recognition exemptions for lease contracts that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (short-term leases), and lease contracts for which the underlying asset is of low value (low-value assets). The Company uses the incremental borrowing rate to discount the lease liabilities. In addition, the lease liabilities include taxes on lease payments and the impact of the significant leasehold improvements amortization period over the estimation of the reasonably certain lease terms. The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised. The Company has several lease contracts that include extension and termination options. The Company applies judgment in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination, including significant leasehold improvements on the leased property. The adjustments arising from adoption of IFRS 16 for each period presented in the consolidated financial statements are detailed as follows: As of January 1, 2017 Balance sheet Originally apresented IFRS 16 Effects After IFRS 16 Other accounts receivable 164 (13 ) 151 Total current assets 2,447 (13 ) 2,434 Other accounts receivable 226 (25 ) 201 Deferred income tax and social contribution — 36 36 Property and equipment, net 2,111 675 2,786 Total noncurrent assets 3,299 686 3,985 Total assets 5,746 673 6,419 Borrowings and financing 2,160 (4 ) 2,156 Leasing liabilities — 54 54 Total current liabilities 2,959 50 3,009 Leasing liabilities — 693 693 Total noncurrent liabilities 458 693 1,151 Total liabilities 3,417 743 4,160 Total shareholders' equity 2,329 (70 ) 2,259 Total liabilities and shareholders' equity 5,746 673 6,419 Balance sheet As of January 1, 2018 Originally presented IFRS 16 Effects After IFRS 16 Other accounts receivable 42 (15 ) 27 Total current assets 3,107 (15 ) 3,092 Other accounts receivable 229 (36 ) 193 Deferred income tax and social contribution 1 46 47 Property and equipment, net 2,825 900 3,725 Total noncurrent assets 4,229 910 5,139 Total assets 7,336 895 8,231 Borrowings and financing 27 (5 ) 22 Lease liabilities — 65 65 Other current liabilities 72 (6 ) 66 Total current liabilities 3,327 54 3,381 Borrowings and financing 460 (9 ) 451 Lease liabilities — 944 944 Total noncurrent liabilities 891 935 1,826 Total liabilities 4,218 989 5,207 Total shareholders’ equity 3,118 (94 ) 3,024 Total liabilities and shareholders’ equity 7,336 895 8,231 Balance sheet As of December 31, 2018 Originally presented Effects IFRS 16 After IFRS 16 Other accounts receivable 64 (30 ) 34 Total current assets 4,228 (30 ) 4,198 Other accounts receivable 43 (43 ) — Property and equipment, net 3,603 1,052 4,655 Total noncurrent assets 5,726 1,009 6,735 Total assets 9,954 979 10,933 Borrowings and financing 680 (4 ) 676 Lease liabilities — 81 81 Taxes and social contributions payable 127 1 128 Other current liabilities 143 (18 ) 125 Total current liabilities 5,065 60 5,125 Borrowings and financing 107 (5 ) 102 Deferred income tax and social contribution 323 (58 ) 265 Lease liabilities — 1,099 1,099 Total noncurrent liabilities 680 1,036 1,716 Total liabilities 5,745 1,096 6,841 Total shareholders' equity 4,209 (117 ) 4,092 Total liabilities and shareholders' equity 9,954 979 10,933 Statement of operations For the year ended December 31, 2018 Originally presented IFRS 16 Effects After IFRS 16 Gross Profit 4,172 — 4,172 Expenses, net Selling expenses (2,057 ) 149 (1,908 ) General and administrative expenses (278 ) 3 (275 ) Depreciation and amortization (234 ) (79 ) (313 ) Other operating expenses, net (8 ) 5 (3 ) Operating profit before financial result 1,595 78 1,673 Net financial result (7 ) (113 ) (120 ) Earnings before income tax and social contribution 1,588 (35 ) 1,553 Income tax and social contribution (489 ) 12 (477 ) Net income for the period 1,099 (23 ) 1,076 Statement of cash flows For the year ended December 31, 2018 Originally presented IFRS 16 Effects After IFRS 16 Net income for the year 1,099 (23 ) 1,076 Deferred income tax and social contribution 188 (13 ) 175 Loss on disposal of property and equipment 39 11 50 Depreciation and amortization 244 97 341 Interest and monetary variation 47 124 171 Gain on leasing liability write-off — (15 ) (15 ) Other assets (67 ) 22 (45 ) Other liabilities 71 (8 ) 63 Payment of borrowings and financing (206 ) 5 (201 ) Leasing liabilities payments — (200 ) (200 ) 5.1.2 IFRIC 23 – Uncertainty on income tax treatment The interpretation IFRIC 23 clarifies how to apply the recognition and measurement requirements of IAS 12 when the income tax treatment is uncertain. According to the Company’s management assessment, no relevant impacts are deriving from this interpretation. New and amended standard and interpretation adopted in 2018 5.1.3 IFRS 15 Revenue from Contracts with Customers (“IFRS 15”) IFRS 15 supersedes IAS 11, Construction Contracts, IAS 18, Revenue, and related interpretations and it applies, with limited exceptions, to all revenue arising from contract with customers. IFRS 15 establishes a five-step model to account for revenue arising from contacts with customers and requires that revenue to be recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. IFRS 15 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures. The Company adopted IFRS 15 using the full retrospective method of adoption. The effect of the adoption of IFRS 15 resulted in the presentation of rebates received from suppliers related to trade marketing as a reduction of cost of sales. These rebates were previously reported as a reduction of marketing expenses and upon adoption of IFRS 15 management determined that the Company does not have any performance obligation associated with the amounts received from the suppliers. 5.1.4 Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions The Company applied the amendments IFRS 2, Share-based payment, to account for the withholding of income tax associated with the share-based payment to employees. Consequently, the withhold tax was accounted for as a deduction of shareholders’ equity, except to the extent that the payment exceeds the fair value on the date of settlement by the net value of the own equity instruments withheld. 5.2 New standards, amendments and interpretations issued but not yet effective The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company has not yet adopted these new and amended standards and interpretations. Accounting pronouncement Description Effective for annual periods beginning on or after Amendments to IAS1: Classification of liabilities as current and non-current Specify the requirements for classifying the liability as current or non-current. The amendments clarify: which means a right to postpone liquidation; that the right to postpone must exist on the base date of the report; that this classification is not affected by the likelihood that an entity will exercise its right to postpone; and that only if a derivative embedded in a convertible liability is itself an equity instrument would the terms of a liability not affect its classification. 01/01/2023 It is not expected that the adoption of these standards will result in significant impacts on the consolidated financial statements. According to Management, there are no other standards and interpretations issued and not yet adopted that may have a significant impact on the consolidated financial statements. |
6 Significant accounting judgme
6 Significant accounting judgments, estimates, and assumptions | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Judgments Estimates And Assumptions | |
Significant accounting judgments, estimates, and assumptions | 6 Significant accounting judgments, estimates, and assumptions The preparation of the consolidated financial statements requires Management to makes judgments estimates and assumptions that impact the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of the year, however, the uncertainty about these assumptions and estimates could result in substantial adjustments to the carrying amount of asset or liability impacted in future periods. In the process of applying the Company’s accounting policies, Management has made the following judgments, which have the most significant impact on the amounts recognized in the consolidated financial statements, as disclosed in the following notes to these financial statements: • Impairment: Notes 8.2,16.1, 17.1 and 17.2. • Inventories: inventory allowance: Note. 10. • Recoverable taxes: Expected realization of tax credits: Note. 11. • Fair value of derivatives and other financial instruments: Measurement of fair value of derivatives: Note 19.10. • Provision for legal proceeding: Record of provision for claims with likelihood assessed as probable loss, estimated with a certain degree of reasonability: Note 20. • Income tax and social contribution: Provisions based on reasonable estimates: Note 23. • Share-based payments: Estimate of fair value of operations based on a valuation model: Note 24. • Business combination: estimates of fair value of assets and liabilities acquired in a business combination and resulting goodwill:Note 14. • Leasing operations: determination of the lease term, and incremental interest rate: Note 21. |
7 Cash and cash equivalents
7 Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents [abstract] | |
Cash and cash equivalents | 7 Cash and cash equivalents Cash and cash equivalents comprise the bank accounts, short-term, highly liquid investments, immediately convertible into known cash amounts, and subject to an insignificant risk of change in value, with intention and possibility to be redeemed in the short term, within 90 days, as of the date of investment. As of December 31, 2020 2019 Cash and bank accounts – Brazil 64 67 Cash and bank accounts – Abroad (*) 29 3,024 Financial investments – Brazil (**) 3,439 1,810 Financial investments – Abroad (***) — 125 3,532 5,026 (*) (i) On December 31, 2020, the Company had funds held abroad, being R$24 in US dollars and R$5 in Colombian pesos; (ii) On December 31, 2019, the balance refers to funds from the Éxito Group, being R$73 in Argentina, R$254 in Uruguay and R$2,697 in Colombia. (**) On December 31, 2020, the financial investments correspond to the repurchase and resale agreements, yielded by the weighted average of 96.96% of CDI – Interbank Deposit Certificate (87.71% of CDI on December 31, 2019) and redeemable within terms less than 90 days, as of the date of investment, without losing income. (***) Refers to funds invested abroad, of which R$20 are denominated in Argentinian pesos, R$4 are denominated in Uruguayan pesos and R$101 are denominated in Colombian pesos. |
8 Trade receivables
8 Trade receivables | 12 Months Ended |
Dec. 31, 2020 | |
Trade Receivables | |
Trade receivables | 8 Trade receivables Trade receivables are initially recorded at the transaction amount, which corresponds to the sale value, and are subsequently measured according to the portfolio: (i) fair value through other comprehensive income, in the case of receivables from credit card companies and (ii) amortized cost, for other customer portfolio. All portfolios consider estimated losses, which are recorded based on quantitative and qualitative analysis, the track record of effective losses in the last 24 months, the credit assessment, and considering information on assumptions and projections relating to macroeconomic events, such as unemployment index and consumer confidence index, as well as the volume of credits overdue of trade receivable portfolio. The Company opted for measuring provisions for trade receivable losses by an amount equal to the expected credit loss for the entire life, applying the practical expedient by adopting a matrix of losses for each level of maturity. The provision for expected losses from trade receivables measured at amortized cost is stated as a reducer of its accounting balance. Trade receivables are considered bad debt and, therefore, written-off from the accounts receivable portfolio, when payment is not made after 180 days of the maturity date. At the end of each reporting period, the Company assesses whether assets or groups of financial assets were impaired. As of December 31, Notes 2020 2019 Credit card companies 8.1 62 17 Credit card companies with related parties 12.1 17 10 Sales ticket and others 77 383 Trade receivables with related parties 12.1 10 21 Trade receivables with suppliers/slips 20 92 Allowance for doubtful accounts 8.2 (4 ) (32 ) 182 491 8.1 Credit card companies The Company, through the cash management strategy, anticipates the amount receivable with credit card companies, without any right of recourse or related obligation and derecognizes the balance of trade receivables. 8.2 Allowance for doubtful accounts For the year ended December 31, 2020 2019 2018 At the beginning of the year (32 ) (4 ) (1 ) Additions/reversals recorded in the year (51 ) - (3 ) Decrease trade receivables 42 - - Discontinued operations 43 - - Foreign currency translation adjustment (6 ) - - Business combination - (28 ) - At the end of the year (4 ) (32 ) (4 ) Set forth below the breakdown of trade receivable by their gross amount by maturity period: Overdue Total Due Less than Less than Less than > 90 days 2020 186 181 2 — — 3 2019 523 407 59 14 4 39 2018 141 127 2 — 12 — |
9 Other accounts receivable
9 Other accounts receivable | 12 Months Ended |
Dec. 31, 2020 | |
Other Receivables | |
Other accounts receivable | 9 Other accounts receivables As of December 31, Notes 2020 2019 Rental receivables – commercial galleries 6 71 Sales of real estate properties 9.1 22 101 Others accounts receivable – Éxito Group — 61 Others 6 10 34 243 Current 34 206 Non-current — 37 9.1 Sales of real estate properties On December 13, 2019 and June 22, 2020, the Company sold a total of 9 stores through the Sale and Leaseback agreement executed with SPCV S.A., by signing the “Private Instrument of Real Property Purchase and Sale Commitment”. This transaction is in line with the asset monetization strategy of the Company. Sold stores were located in the States of São Paulo, Paraná, Bahia, Tocantins, Alagoas, Rio de Janeiro and Ceará. The total sale amount of this transaction was R$449, with 71% of the total sale amount received in 2019, 26% received in 2020, and the remaining balance of R$22, will be paid in 2021. The parties executed lease agreements for each real property, on the closing date of the transaction, with a 20-year term, renewable for an equal period, ensuring the continuity of the Company’s operations in the real properties with sustainable financial conditions. |
10 Inventories
10 Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventories Abstract | |
Inventories | 10 Inventories Inventories are carried at average cost, including the storage and handling costs, to the extent these costs are necessary to bring inventories to their sale condition at stores, less bonuses received from suppliers or net realizable value, whichever is lower. Net realizable value is the selling price in the ordinary course of business, less the estimated costs necessary to make the sale. Inventories are adjusted by an allowance for losses and damages, which is periodically reviewed and evaluated as appropriate. Bonuses received from suppliers are measured and recognized based upon executed contracts and agreements and recorded as cost of sales when the corresponding inventories are sold. Unrealized bonuses are presented as reducing the inventories at each balance sheet date. As of December 31, Notes 2020 2019 Stores 3,416 2,402 Distribution centers 10.1 374 404 Inventories - Éxito Group — 2,255 Real estate inventories - Éxito Group — 190 Allowance for losses on inventory obsolescence and damages 10.2 (51 ) (61 ) 3,739 5,190 10.1 Commercial agreements The Company records rebates from vendors and the storage costs in the statement of operations as the inventories that gave rise to the bonuses and the stored costs are realized. On December 31, 2020, the amount of unrealized bonus, as a reduction of inventory balance, totaled R$ 444 (R$ 254 on December 31, 2019). 10.2 Allowance for loss on inventory obsolescence and damages For the year ended December 31, 2020 2019 2018 At the beginning of the year (61 ) (34 ) (37 ) Additions (13 ) (5 ) — Discontinued operations 28 — — Foreign currency translation adjustment (5 ) — — Business combinations — (22 ) — Write-offs — — 3 At the end of the year (51 ) (61 ) (34 ) |
11 Recoverable taxes
11 Recoverable taxes | 12 Months Ended |
Dec. 31, 2020 | |
Recoverable Taxes | |
Recoverable taxes | 11 Recoverable taxes The Company records tax credits, when it is entitled to these credits. The Company pays tax on services and sales, known as ICMS, which is a state level value-added tax levied on the sale of goods and the provision of services at each phase of production and sales. In the Brazilian states where the Company operates, and for most of the products in our sales mix, the ICMS tax substitution regime applies. Under the tax substitution regime, the responsibility for paying upfront taxes due on the entire production and sales chain for certain products is primarily that of the manufacturers and, in some cases (depending on the tax system applicable in each state and for each product) can be our responsibility. In the tax substitution regime, the tax is collected on the sale of the products and transferred to the government. The Company records the taxes paid upfront under the tax substitution regime in accordance with the accrual basis in the cost of goods sold. PIS (Programa de Integração Social) and COFINS (Contribuição para o Financiamento da Seguridade Social) (federal taxes on gross revenues) is recognized as a credit in the same account at which the credits are calculated. The estimate of future recoverability of these tax credits is made based on growth projections, operational matters and the consumption of the credits in the operation. As of December 31, Notes 2020 2019 State tax credits – ICMS 11.1 1,311 1,189 Social Integration Program and Contribution for Social Security Financing - PIS/COFINS 141 353 Social Security Contribution - INSS 11.3 36 27 Income tax and social contribution 144 410 Other 2 25 Other recoverable taxes - Éxito Group — 77 Total 1,634 2,081 Current 768 1,119 Non-current 866 962 11.1 ICMS - State VAT tax credits Since 2008, the Brazilian States have been substantially amending their local laws aiming at implementing and broadening the ICMS tax replacement system. The referred system implies the prepayment of ICMS throughout the commercial chain, upon goods outflow from a manufacturer or importer or their inflow into the State. The expansion of such system to a wider range of products traded at retail is based on the assumption that the trading cycle of these products will end in the State, such that ICMS is fully owed to such State. To supply its stores, the Company maintains distribution centers strategically located in certain states and the Federal District, which receive goods with the ICMS of the entire commercial chain already prepaid (by force of tax replacement) by suppliers or the Company and its subsidiaries, and then, goods are sent to locations in other States. This interstate remittance entitles the Company to a refund reimbursement of prepaid ICMS, the ICMS of commercial chain paid upon acquisition is converted into a tax credit to be refunded, pursuant to each State’s laws. The refund process requires evidence through tax documents and digital files of transactions made, entitling the Company to such a refund. Only after ratification by State tax authorities and/or the compliance with specific ancillary obligations aiming to support such evidence that credits can be used by the Company, which occur in periods after these are generated. Since the number of items traded at the retail subject to tax replacement has been continuously increasing, the tax credit to be refunded by the Company has also grown. The Company has been realizing referred credits with authorization for immediate offset with those credits due in view of its operations, through the special regime, also other procedures regulated by state rules. With respect to credits that cannot yet be immediately offset, the Company's Management, based on a technical recovery study, based on the future expectation of growth and consequent compensation with taxes payable arising from its operations, believes that its future compensation is viable. The studies mentioned are prepared and periodically reviewed based on information extracted from the strategic planning previously approved by the Company's Board of Directors. For the financial statements as of December 31, 2020, the Company's management has monitoring controls over adherence to the annually established plan, reassessing and including new elements that contribute to the realization of the ICMS balance to be recovered, as shown in the table below. Year Amounts In 1 year 470 From 1 to 2 years 343 From 2 to 3 years 349 From 3 to 4 years 86 From 4 to 5 years 14 More than 5 years 49 Total 1,311 11.2 PIS and COFINS credit On May 15, 2017, the Federal Supreme Court (“STF”) recognized the unconstitutionality of the inclusion of ICMS in the PIS and COFINS calculation base, pending only the appreciation of the Declaration Embargoes filed by the National Treasury requesting modulating the effects of the decision. In this context, the Company filed a judicial measure, aiming to ensure its right to the recognition and compensation of PIS and COFINS credits improperly collected. A final, unappealable decision in the Company’s favor was rendered in September, 2019. With the favorable outcome of the matter, the Company recorded the credit in the accounts, which is subject to reliable measurement. This credit was enabled by the Federal Revenue of Brazil and is being monetized under the terms of the applicable legislation. Currently, the Company, based on the favorable judgment of the STF, has been recognizing the exclusion of ICMS from the PIS and COFINS calculation basis based on the same assumptions mentioned above. The evidence that leads the Company to conclude on the right to credit for PIS and COFINS includes: i) interpretation of tax legislation; ii) internal and external factors as legal and market interpretations; and iii) accounting evaluation about the matter. 11.3 STF Judgment– INSS and IPI On August 28, 2020, the STF recognized as constitutional the incidence of social security charges (INSS) on the additional one-third of vacation payment. The Company has been monitoring the progress of these issues involving unconstitutionality in social security contributions, and together with its legal advisors, concluded that the elements to date do not impact the recoverability of the respective credits of INSS credits recorded in the amount of R$11 on December 31, 2020. |
12 Related Parties
12 Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions [abstract] | |
Related Parties | 12 Related Parties 12.1 Balances and related party transactions Assets balance Liabilities balance Clients Other assets Suppliers Other liabilities 2020 2019 2020 2019 2020 2019 2020 2019 Controlling shareholder GPA — 13 168 2 — 1 41 90 Casino 10 5 — 5 — — — — 10 18 168 7 — 1 41 90 Other related parties Novasoc Comercial Ltda. — — — 4 — — — 4 Compre Bem — 2 — 11 — — — — Greenyellow — — — 10 — — — 15 Puntos Colombia — — — 29 — — — 43 Tuya — — — 26 — — — — Others — 1 — — — — — — Joint venture Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento (“FIC”) 17 10 10 10 11 16 — — 17 13 10 90 11 16 — 62 Total 27 31 178 97 11 17 41 152 Transactions Purchases Revenue (Expenses) 2020 2019 2018 2020 2019 2018 Controlling shareholder GPA — 1 7 (183 ) (162 ) (110 ) — 1 7 (183 ) (162 ) (110 ) Other related parties Compre Bem 1 13 — 3 (3 ) — Puntos Colombia — — — (114 ) (13 ) — Tuya — — — 24 21 — Greenyellow — — — (47 ) 1 — Grupo Casino — — — (19 ) 2 — Others — — — (2 ) (3 ) — 1 13 — (155 ) 5 — Total 1 14 7 (338 ) (157 ) (110 ) The related-party transactions are represented by operations carried out according to prices, terms and conditions agreed upon the parties and are measured substantially at market value, namely: (i) Casino: Agency Agreement entered into between GPA, the Company, and Groupe Casino Limited on July 25, 2016, as amended, to regulate the rendering of global sourcing services (global suppliers prospecting and purchasing intermediation) by Casino and reimbursed by Groupe Casino Limited to the Company to recover the reduced gain margins due to Company’s promotions at its stores. Agreement executed between GPA, the Company, and Casino International S.A. on December 20, 2004, as amended, for the Company’s representation in the business negotiation of products to be acquired by the Company with international suppliers. (ii) Purchase Agreement: entered into the GPA, the Company, and E.M.C. Distribution Limited on June 6, 2019, to import food and non-food products (except for perishables and wine) for resale at stores, through purchase orders request, on a non-exclusive basis. (iii) Puntos Colombia (iv) Tuya (v) Greenyellow: (a) agreement with the Company to set the rules for the lease and maintenance of photovoltaic system equipment by Greenyellow at ASSAÍ stores; and (b) contracts with the Company for the purchase of energy sold on the free market. (vi) FIC: execution of business agreements to regulate the rules that promote and sell financial services offered by FIC at the Company’s stores to implement a financial partnership between the Company and Itaú Unibanco Holding S.A. (“Itaú”) in the partnership agreement, namely: (i) banking correspondent services in Brazil; (ii) indemnification agreement in which FIC undertook to hold the Company harmless from losses incurred due to services; FIC and the Company mutually undertook to indemnify each other due to legal proceeding under their responsibility; and (iii) agreement concerning the Company’s provision of information and access to systems to FIC, and vice-versa, in order to offer services. 12.2 Management compensation Expenses referring to the statutory executive board compensation recorded in the Company’s statement of operations in the years ended December 31, 2020, 2019 and 2018 as follows: Base salary Variable compensation Stock options plan Total 2020 13 7 5 25 2019 15 8 6 29 2018 9 10 5 24 The stock option plan refers to the Company’s executives holding GPA shares and this plan has been treated in the Company’s statement of operations, related expenses are allocated to the Company and recorded in the statement of operations against capital reserve – stock options in shareholders’ equity. There are no other short-term or long-term benefits granted to the members of the Company’s Management. |
13 Investments
13 Investments | 12 Months Ended |
Dec. 31, 2020 | |
Investments In Joint Venture | |
Investments | 13 Investments in joint venture A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The considerations made in determining significant influence or joint control are similar to those necessary to determine control over subsidiaries. The Company’s joint venture is accounted for using the equity method. Under the equity method, the investment in a joint venture is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Company’s share of net assets of the joint venture since the acquisition date. Goodwill relating to the joint venture is included in the carrying amount of the investment and is not tested for impairment separately. The financial statements of the joint venture are prepared for the same reporting period as the Company. When necessary, adjustments are made to bring the accounting policies in line with those of the Company. The details of the Company's joint venture are shown below: Participation in investments - % 2020 Group Company Country Company Financeira Itaú CBD S.A. Bellamar Empreendimento e Participação S.A. Brazil 50.00 As described in note 1.3, the Company engaged in the Exchange Transaction in which the Company received 50% interest in Bellamar, an entity that holds 35.76% of FIC’s capital stock. As a result, the Company holds 17.88% indirect interest in FIC. FIC is a Brazilian company that operates financial services in the Company stores and GPA’s stores with exclusive rights to offer credit cards, financial services and insurance policies, except for extended warranties. FIC has been operating for more than ten years. The FIC is operated by Itaú Unibanco that hold 50% of the shares of FIC. The Company accounted for the investment in Bellamar at its fair value of R$769 which included the investment in FIC also at fair value. The fair value of investment in FIC was determined by an independent appraisal. The summarized financial statements are as follows: Bellamar 2020 Total actions– in millions 162 Percentage interest in company 50.00% Current assets 22 Non-current assets 370 Total assets 392 Bellamar 2020 Current liabilities - Non-current liabilities - Shareholders´ equity 392 Total non-current liabilities 392 Income Statements Income - Operating profit 118 Net income for the year 118 13.1 Allocation of the Acquisition Price The preliminary study for the allocation of the acquisition value corresponding to the 17.88% participation in FIC of R$ 769 is in progress and should be concluded in the near future months. |
14 Business combination
14 Business combination | 12 Months Ended |
Dec. 31, 2020 | |
Minimum rental payment on termination | |
Business combination | 14 Business combination Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at fair value on the acquisition date, and the amount of any non-controlling interest in the acquiree. For each business combination, the acquirer measures the non-controlling interest in the acquiree at fair value or at the proportional interest in the acquiree’s identifiable net assets. The acquisition related costs are expensed as incurred in statement of operations. When the Company acquires a business, it assesses the assets acquired and liabilities assumed for the appropriate classification and designation in accordance with contractual terms, economic circumstances and relevant conditions at the acquisition date. This includes the segregation of any embedded derivatives identified in the agreements or contracts of the acquiree. Any contingent consideration is recognized at fair value on the acquisition date as part of the business combination. Subsequent changes in the fair value of any contingent consideration classified as an asset or a liability that is a financial instrument is recognized in profit or loss. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests and any previously held interest in the acquiree. If the fair value of the net assets acquired is in excess of the aggregated consideration transferred, the Company re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognized at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognized in profit or loss. After initial recognition, goodwill is measured at cost, less any impairment losses. For impairment testing purposes, the goodwill acquired in a business combination is, as of the acquisition date, allocated to the cash generating unit that are expected to benefit from the business combination, regardless of whether other assets or liabilities of the acquiree are assigned those units. When goodwill is part of a cash-generating unit and part of the operation of this unit is sold, the goodwill related to the part is included in the carrying amount of the operation when calculating profit or loss from the sale of the operation. This goodwill is then measured based on the relative amounts of the sold operation to the total of the cash-generating unit which was retained. 14.1 Acquisition of Éxito Group - Colombia On June 26, 2019, Sendas’ ultimate controlling shareholder, Casino, submitted a recommendation at a meeting of the Board of Directors of GPA to streamline Casino’s structure in Latin America, significantly improve governance and increase the base of potential investors. At the time of the Éxito Acquisition, Éxito was a publicly held company located in Colombia, with Casino as its controlling shareholder. Casino tendered all of its shares of Éxito (representing a 55.3% equity interest in Éxito) to Sendas in the public tender offer. On July 23, 2019, GPA released a material fact announcing that GPA’s Board of Directors, based on a favorable recommendation of the Independent Special Committee and within the price interval originally recommended by GPA’s board of executive officers, authorized the Company to launch an all-cash tender offer (“OPA”) to acquire 100% of Éxito’s shares, at the price of 18,000 Colombian pesos per share (corresponding to R$21.68 on the date of acquisition). The transaction also involved the acquisition by Casino of Éxito’s indirect equity interest in GPA at the price of R$113 Reais per share, which was approved on September 12, 2019, by the Board of Directors and Éxito’s general shareholders’ meeting. Since the Company was exposed to Colombian pesos (“COP”) during the tender offer, on July 24, 2019, the finance committee approved a cash flow hedge, via NDFs (Non-Deliverable Forward) to mitigate such exposure (see Note 19). On November 27, 2019, the OPA was concluded and Sendas became the controlling shareholder of Éxito holding a 96.57% interest in Éxito’s capital stock. The OPA resulted in a cash payment of 7,780 billion colombian pesos (corresponding to R$9.5 billion, considering the exchange rate as of December 31, 2019). Before the settlement of OPA, Casino’s subsidiaries acquired all the shares issued by GPA held directly and indirectly by Éxito by the price, net of debt, of US$1,161 million (corresponding to R$4.9 billion based on the exchange rate of the date of transaction). Business combinations under common control are not under the scope of IFRS 3, Business Combinations (“IFRS 3”). IFRS gives no guidance on the accounting for these types of transactions but requires that entities develop an accounting policy for them. The Company opted to apply the acquisition method of accounting following the guidance of IFRS 3 as it has concluded that the acquisition of Éxito ha a commercial substance. This is because the acquisition price was offered through a public tender offer in cash, in which the same price was offered and paid to all the holders of Éxito shares, including Casino. Context of the acquisition Éxito Group operates more than 650 stores in Colombia, Uruguay, and Argentina, in addition to shopping malls, also having a significant investment in a loyalty and financial company, in addition to its own brands with successful participation in the respective markets. The Company started consolidating Éxito Group upon obtaining control, consolidating one month of the profit or losses in the statement of operations. Net sales revenue was R$2,150 in this period, and net income was R$71 for this period. Determination of the consideration transferred in the acquisition The cash consideration has been adjusted for the dividends received related to the year of 2018 and the effect of the cash flow hedge entered into to hedge the exposure on changes in foreign exchange rates, as shown below: As of December 31, 2019 Cash consideration 9,268 Cash flow hedge effect 145 9,413 Dividends received related to 2018 (42 ) Total cash consideration transferred 9,371 Fair values of identifiable assets acquired and liabilities assumed The fair value of identifiable assets acquired and liabilities assumed from Éxito, on the acquisition date, are as follows: Fair value as of November 27, 2019 Assets Cash and cash equivalentes 6,062 Trade receivables, net 416 Inventories, net 2,765 Recoverable taxes 477 Other current assets 349 Deferred income tax and social contribution 1,353 Related parties 137 Other noncurrent assets 111 Investments in associates 316 Investment properties 2,972 Property and equipment, net 8,496 Intangible assets, net 3,009 26,463 Liabilities Payroll and related taxes 283 Trade payables, net 4,545 Taxes and contributions payable 219 Borrowings and financing 2,546 Lease liabilities 277 Other current liabilities 998 Noncurrent borrowings and financing 2,060 Deferred income tax and social contribution 2,100 Provisions for legal proceedings 103 Noncurrent –lease liabilities 1,540 Other noncurrent liabilities 28 14,699 Net assets 11,764 (-) Attribute to non-controlling interest (2,558 ) Net assets 9,206 a) Tradename – These includes the brands Surtimax, Super Inter, Surti Mayorista, Viva, Frescampo, Éxito and Carulla in Colombia, Libertad brand in Argentina and Disco in Uruguay. In addition, it also includes the brands Éxito, Bronzini, Frescampo, Ekono, Arkitect and Carulla. Tradenames have an indefinite useful life. b) Investment properties and real estate properties –Éxito Group has real estate assets in galleries and shopping malls for the purpose of being leased. Such assets have high commercial relevance and they are located in prime areas. c) Tuya investment – fair value was estimated using the incoming approach method; and d) Leases liabilities – Lease liabilities were re-measured using the incremental borrowing rate at the date of acquisition. Goodwill identified The Company recorded a residual goodwill of R$165; which has been determined as follows: Fair value of net assets acquired 11,764 (-) Fair value of non-controlling interest (2,558 ) 9,206 Total consideration transferred for the acquisition of Éxito Group 9,371 Goodwill resulting from acquisition of Éxito Group 165 Goodwill is disclosed in the balance sheet as intangible assets and it is not deductible for tax purposes, except on the sale of the investment. See Note 17.1. The acquisition related cost was R$124 and is recognized in “other operating expenses” (Note 27). On December 31, 2020 Éxito was distributed to GPA, under the Transaction and it is presented as discontinued operation in the financial statements (Note 1.3). |
15 Investment Properties
15 Investment Properties | 12 Months Ended |
Dec. 31, 2020 | |
Investment property [abstract] | |
Investment Properties | 15 Investment Properties Investment properties are measured at historical cost, including transaction costs, net of accumulated depreciation, and/or impairment losses, if any. The cost of investment properties acquired in a business combination is calculated by fair value, pursuant to IFRS 3 – Business combination. Investment properties are written-off when sold or when they are no longer used and no future economic benefit is expected from its sale. An investment property is also transferred when there is an intention to sell, in this case, it is classified as non-current assets held for sale. The difference between the net amount obtained from the sale and the asset’s carrying amount is recognized in the statement of operations for the year in which the asset is disposed of. The investment properties of the Company correspond to commercial areas and plots of land held for income generation or price future appreciation. The fair value of investment properties is measured based on the third parties’ valuation. As of December 31, 2019 Impairm- ent Addit- ions Depreci- ation Currency translation adjustment Transf- ers Discontin- ued operation As of December 31, 2020 Land 656 (10 ) — — 149 (32 ) (763 ) — Buildings 2,385 (10 ) 6 (62 ) 555 (16 ) (2,858 ) — Construction in progress 10 — 8 — 3 (3 ) (18 ) — Total 3,051 (20 ) 14 (62 ) 707 (51 ) (3,639 ) — As of December 31, 2018 Additions Depreciation Business combinations Currency translation adjustment Transfers As of December 31, 2019 Land — 2 — 643 11 — 656 Buildings — 10 (4 ) 2,320 44 15 2,385 Construction In Progress — — — 10 — — 10 Total — 12 (4 ) 2,973 55 15 3,051 As of December 31, 2019 Historical cost Accumulated depreciation Residual value Land 656 — 656 Buildings 2,400 (15 ) 2,385 Construction in progress 10 — 10 Total 3,066 (15 ) 3,051 During December 2019, the net result generated by investment properties owned by Éxito Group are as follows: As of December 31, 2019 Lease Revenue 31 Operating expenses related to investment properties that generate revenues (4 ) Operating expenses related to investment properties that do not generate revenues (12 ) Net revenue generated by investment properties 15 As of December 31, 2019, the fair value of investment properties was only comprised of balances of Éxito Group amounting R$3,051. |
16 Property, plant and equipmen
16 Property, plant and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Property, plant and equipment | 16 Property, plant and equipment Property, plant and equipment is stated at cost, net of accumulated depreciation and/or impairment losses, if any. The cost includes the acquisition amount of equipment and borrowing costs for long-term construction projects if recognition criteria are observed. When significant components of property, plant and equipment are replaced, these components are recognized as individual assets, with specific useful lives and depreciation. Likewise, when a major replacement is performed, its cost is recognized as the carrying amount of the equipment as a replacement, if the recognition criteria are met. All other repair and maintenance costs are recognized in the statement of operations for the year as incurred. Asset Category Average annual depreciation rate in % Buildings 2.47 Leasehold improvements 4.15 Machinery and equipment 11.91 Facilities 6.81 Furniture and appliances 11.42 Property, plant and equipment items and eventual significant amounts are written-off upon sale or when there is no expectation of future economic benefits deriving from their use or sale. Any gains or losses resulting from disposals of assets are included in the statement of operations for the year. The residual value, the useful life of assets, and methods of depreciation are reviewed at the end of each fiscal year, and adjusted prospectively, where applicable. The Company reviewed the useful life of property, plant and equipment in 2020 and no significant changes were deemed necessary. Interest on borrowings and financing directly attributable to the acquisition, construction of an assets, that requires a substantial period of time to be completed for its intended use or sale (qualifying asset), are capitalized as part of the cost of respective assets during its construction phase. From the date that the asset is placed in operation, capitalized costs are depreciated over the estimated useful life of the asset. 16.1 Impairment of non-financial assets The Company tests its non-financial assets for impairment annually or whenever there is internal or external evidence that they may be impaired. An assets or cash-generating unit’s recoverable amount is defined as the asset’s fair value less cost to sell or its value in use, whichever is higher. If the carrying amount of an asset or cash-generating units exceeds its recoverable value, the asset is considered impaired and an impairment loss is recorded to adjust the carrying amount of the asset or cash-generating unit to its recoverable value. When assessing the recoverable value, the estimated future cash flow is discounted to the present value, using a discount pre-tax rate, which represents the Company’s weighted average cost of capital to reflect current market valuations as to the time value of money and asset’s specific risks. The impairment test of intangible assets’ useful life including goodwill is described in note 17. Impairment losses are recognized in the statement of operations in categories of expenses consistent with the function of the respective impaired asset. The impairment loss previously recognized is only reversed if there has been a changed in the assumptions used to determine the recoverable amount since the last impairment loss was recognized. 16.2 Impairment test of stores operating assets An impairment assessment is performed on operating assets (property, plant and equipment) and intangible assets (such as Commercial rights) directly attributable to stores, as follows: • Step 1: the carrying amount of properties in rented stores was compared to a sales multiple (35%) representing transactions between retail companies. Stores for which the multiple of sales was lower than their carrying amount and owned stores, a more detailed test is made, as described in Step 2 below. • Step 2: The Company considered the highest value between: a) the discounted cash flows of stores using sales growth average of 5.6% in 2020 (4.5% in 2019) for period exceeding the next five years and a discount rate of 9.8% in 2020 (8.7% in 2019) and; b) appraisal reports drawn up by independent experts for own stores. The Company assessed if any of its long-lived assets were impaired on December 31, 2020 and 2019 and concluded that the recognition of an impairment loss was not needed. The impairment losses are recognized in the statement of operations in categories of expenses consistent with the function of the respective impaired asset. The impairment loss previously recognized is only reversed if there is any alteration in the assumptions adopted to define the asset’s recoverable value in its initial or most recent recognition, except for goodwill, which cannot be reversed in future periods. 16.3 Property, plant and equipment rollforward As of December 31, 2019 Additions Remeasurement Write-off Depreciation Transfer and others Conversion adjustment to reporting currency Corporate restructuring (Note 1.3) Discontinued operation As of December 31, 2020 Land 2,766 61 — (32 ) — (70 ) 541 146 (2,931 ) 481 Buildings 3,829 78 — (85 ) (121 ) (139 ) 704 — (3,657 ) 609 Improvements 2,207 694 — (71 ) (189 ) 293 70 (4 ) (402 ) 2,598 Equipment 1,242 227 — (28 ) (260 ) 84 151 (1 ) (780 ) 635 Facilities 330 58 — (6 ) (32 ) (16 ) 8 — (73 ) 269 Furnitures and appliances 601 78 — (15 ) (128 ) 58 66 — (320 ) 340 Constructions in progress 140 344 — (7 ) — (318 ) 18 — (99 ) 78 Others 42 8 — — (16 ) 12 — (2 ) (7 ) 37 Subtotal 11,157 1,548 — (244 ) (746 ) (96 ) 1,558 139 (8,269 ) 5,047 Lease - right of use: Buildings 3,449 1,217 628 (588 ) (501 ) 2 403 (4 ) (2,183 ) 2,423 Equipment 43 23 (7 ) (1 ) (15 ) 3 9 — (49 ) 6 Land 3 — — — — — — — (3 ) — Subtotal 3,495 1,240 621 (589 ) (516 ) 5 412 (4 ) (2,235 ) 2,429 Total 14,652 2,788 621 (833 ) (1,262 ) (91 ) 1,970 135 (10,504 ) 7,47 As of December 31, 2018 Additions Purchase Partnership Remeasurement Write-off Depreciation Transfer and others Currency translation adjustment As of December 31, 2019 Land 348 76 2,277 — — — 25 40 2,766 Buildings 583 231 2,935 — — (25 ) 56 49 3,829 Improvements 1,733 553 334 — (302 ) (123 ) 12 — 2,207 Equipment 416 232 672 — (20 ) (93 ) 25 10 1,242 Facilities 221 66 64 — (1 ) (20 ) 2 (2 ) 330 Furnitures and appliances 226 81 300 — (8 ) (40 ) 36 6 601 Constructions in progress 39 69 154 — (3 ) — (122 ) 3 140 Others 29 4 6 — — (11 ) 14 — 42 Subtotal 3,595 1,312 6,742 — (334 ) (312 ) 48 106 11,157 Lease - right of use: Buildings 1,053 670 1,727 138 (28 ) (140 ) (3 ) 32 3,449 Equipment 7 15 25 — — (5 ) (1 ) 2 43 Land — — 3 — — — — — 3 Subtotal 1,060 685 1,755 138 (28 ) (145 ) (4 ) 34 3,495 Total 4,655 1,997 8,497 138 (362 ) (457 ) 44 140 14,652 As of January 1, 2018 Additions Remeasurement Write-off Depreciation Transfers and others (*) As of December 31, 2018 Land 261 45 — — — 42 348 Buildings 437 170 — (3 ) (13 ) (8 ) 583 Improvements 1,346 421 — (30 ) (95 ) 91 1,733 Equipment 351 142 — (8 ) (69 ) — 416 Facilities 178 57 — (3 ) (15 ) 4 221 Furniture and appliances 169 79 — (5 ) (26 ) 9 226 Constructions in progress 43 52 — (12 ) — (44 ) 39 Others 28 11 — — (10 ) — 29 Subtotal 2,813 977 — (61 ) (228 ) 94 3,595 Lease – right of use: Buildings 901 210 52 (13 ) (97 ) — 1,053 Equipment 11 — — — (4 ) — 7 Subtotal 912 210 52 (13 ) (101 ) — 1,060 Total 3,725 1,187 52 (74 ) (329 ) 94 4,655 16.4 Breakdown As of December 31, 2020 2019 Historical cost Accumulated depreciation Net amount Historical cost Accumulated depreciation Net amount Land 481 — 481 2,766 — 2,766 Buildings 704 (95 ) 609 4,034 (205 ) 3,829 Improvements 3,203 (605 ) 2,598 3,023 (816 ) 2,207 Equipment 1,061 (426 ) 635 2,326 (1,084 ) 1,242 Facilities 354 (85 ) 269 477 (147 ) 330 Furniture and appliances 513 (173 ) 340 1,163 (562 ) 601 Construction in progress 78 — 78 140 — 140 Others 101 (64 ) 37 110 (68 ) 42 6,495 (1,448 ) 5,047 14,039 (2,882 ) 11,157 Finance lease — — Buildings 3,205 (782 ) 2,423 4,198 (749 ) 3,449 Equipment 47 (41 ) 6 92 (49 ) 43 Land — — — 6 (3 ) 3 3,252 (823 ) 2,429 4,296 (801 ) 3,495 Total Property plant and equipment 9,747 (2,271 ) 7,476 18,335 (3,683 ) 14,652 16.5 Guarantees On December 31, 2020 and 2019, the Company had collateralized property, plant and equipment items offered as a guarantee to certain legal claims, as disclosed in note 20.5. 16.6 Capitalized borrowing costs The capitalized borrowing costs for the year ended December 31, 2020 were R$12 (R$11 on December 31, 2019 and R$12 on December 31, 2018). The rate used for the capitalization of borrowing costs was 150.67% (136.11% on December 31, 2019 and 101.78% on December 31, 2018) of CDI, corresponding to the effective interest rate of loans taken by the Company 16.7 Additions to property, plant and equipment for cash flow presentation purpose are as follows: 2020 2019 2018 Additions 2,788 1,997 1,187 Leases (1,241 ) (685 ) (210 ) Capitalized interest (12 ) (11 ) (12 ) Financing of property, plant and equipment – Additions (i) (1,437 ) (1,217 ) (921 ) Financing of property, plant and equipment – Payments (ii) 1,464 1,273 863 Total 1,562 1,357 907 (i) Additions relate to the acquisition of operating assets, purchase of land and buildings to expansion activities, building of new stores, improvements of existing distribution centers and stores and investments in equipment and information technology. (ii) The additions to property, plant and equipment above are presented to reconcile the acquisitions during the year with the amounts presented in the statement of cash flows net of items that did not impact cash flow. 16.8 Other information On December 31, 2020 the Company recorded in the cost of sales and services the amount of R$34 (R$29 on December 31, 2019 and R$10 on December 31, 2018), relating to the depreciation of machinery, building and facilities of distribution centers. |
17 Intangible Assets
17 Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets and goodwill [abstract] | |
Intangible Assets | 17 Intangible Assets Intangible assets acquired separately are measured at cost upon initial recognition, less amortization, and eventual impairment losses, if any. Internally generated intangible assets, excluding capitalized software development costs, are recognized as expenses when incurred. Intangible assets mainly consist of software acquired from third parties and software developed for internal use and commercial rights (stores rights of use), customer list and brands. Intangible assets with definite useful lives are amortized using the straight-line method. The amortization period and method are reviewed, at least, at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimate. Software development costs recognized as assets are amortized over their defined useful life (5 to 10 years). The weighted average rate is 12.27%, and amortization starts when they become operational. Intangible assets with indefinite useful lives are not amortized but tested for impairment at the end of each reporting period or whenever there are indications that their carrying amount may be impaired either individually or at the level of the cash-generating unit. The assessment is reviewed annually to determine whether the indefinite life assumption remains appropriate. Otherwise, the useful life is changed prospectively from indefinite to definite. When applicable, gains or losses arising from the derecognition of an intangible asset are measured as the difference between the net proceeds from the sale of the asset and its carrying amount, any gain or loss is recognized in the statement of poperations in the year the asset is derecognized. As of December 31, 2019 Additions Amortizations Write-off Conversion adjustment to reporting currency Transfers Discontinued operation As of December 31, 2020 Goodwill 785 — — — 38 1 (208 ) 616 Softwares 135 72 (40 ) (1 ) 20 — (115 ) 71 Commercial rights 314 6 (8 ) — (1 ) — — 311 Tradename 3,054 — — — 713 — (3,728 ) 39 4,288 78 (48 ) (1 ) 770 1 (4,051 ) 1,037 As of December 31, 2017 Additions Amortizations Transfer (*) As of December 31, 2018 Additions Business combination Amortizations Exchange rate changes As of December, 31, 2019 Goodwill 618 — -2 — 616 — 165 — 4 785 Software 51 17 (10 ) 3 61 28 60 (15 ) 1 135 Commercial rights 41 24 — 232 297 24 1 (8 ) — 314 Tradename 39 — — — 39 — 2,949 — 66 3,054 749 41 (12 ) 235 1,013 52 3,175 (23 ) 71 4,288 17.1 Impairment test of intangible assets with an indefinite useful life, including goodwill The impairment test of intangible assets uses the same practices described in note 16.1. On December 31, 2020, the Company revised the plan used to assess impairment for Cash Generating Units (CGUs)in Brazil. The recoverable amount is determined by means of a calculation based on the value in use, based on cash projections from financial budgets, which were reviewed and approved by Management for the next three years, considering the premises updated for December 31, 2020. The discount rate applied to cash flow projections is 9.8% on December 31, 2020 (8.4% on December 31, 2019), and cash flows that exceed the three years period are extrapolated using a growth rate of 4.6% on December 31, 2020 (4.8% on December 31, 2019). As a result of this analysis, there was no need to record a provision for impairment of these assets. See considerations regarding the effects of the COVID-19 pandemic in note 1.4. 17.2 Commercial rights Commercial rights are the right to operate stores, which refers to the rights acquired or allocated in business combinations. According to the Management’s understanding, commercial rights are considered recoverable, either through the expected cash flows of the related store or the sale to third parties. Commercial rights with a defined useful life are tested using the same assumptions for the Company's impairment test, following the term of use of these assets. |
18 Trade payables, net
18 Trade payables, net | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other payables [abstract] | |
Trade payables, net | 18 Trade payables, net As of December 31, Notes 2020 2019 Product suppliers 5,450 9,607 Service providers 96 573 Bonuses from suppliers 18.2 (488 ) (410 ) Total 5,058 9,770 18.1 Agreements among suppliers, the Company, and banks The Company entered into certain agreements with financial institutions in order to allow suppliers to use the Company's lines of credit, and to anticipate receivables arising from the sale of goods and services. These transactions were assessed by management that determined that they have commercial characteristics, since there are no changes to the original terms of the receivables in relation to price and / or terms, including financial charges. The anticipation is also solely at the suppliers’ discretion. The Company also has commercial transactions increasing payment terms, as part of its commercial activities, without financial charges. 18.2 Bonuses from suppliers These include bonuses and discounts from suppliers. These amounts are defined in agreements and include amounts referring to discounts by volume of purchases, joint marketing programs, freight reimbursements, and other similar programs. Settlement occurs by offsetting payable to suppliers, according to conditions foreseen in the supply agreements. |
19 Financial instruments
19 Financial instruments | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
Financial instruments | 19 Financial instruments Financial assets are recognized when the Company assumes contractual rights of receiving cash or other financial assets of agreements to which it is a party. Financial assets are derecognized when the rights to receive cash linked to the financial asset expire or risks and benefits were substantially transferred to third parties. Assets and liabilities are recognized when rights and/or obligations are retained by the Company. Financial liabilities are recognized when the Company assume contractual liabilities for settlement in cash or assumption of third-party obligations through a contract to which it is a party. The financial liabilities are initially recognized at fair value and derecognized when settled, extinguished, or expired. Purchases or sales of financial assets requiring delivery of assets within a term defined by regulation or agreement in the market (negotiations under normal conditions) are recognized on the trade date, i.e., on the date the Company undertakes to buy or sell the asset. 19.1 Classification and measurement of financial assets and liabilities Pursuant to IFRS 9, on initial recognition, a financial asset is classified as measured: at amortized cost, at fair value through other comprehensive income or at fair value through income. The classification of financial assets pursuant to IFRS 9 is usually based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Embedded derivatives in which the main contract is a financial asset within the scope of the standard are never split. Instead, the hybrid financial instrument is assessed for classification as a whole. A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as measured at fair value through income: • it is maintained in a business model whose objective is to keep financial assets to receive contractual cash flows; and • its contractual terms generate, on specific dates, cash flows related to the payment of principal and interest on the outstanding principal amount. A debt instrument is measured at fair value through other comprehensive income, if it meets both of the following conditions and is not designated as measured at fair value through income: • it is maintained in a business model whose objective is achieved both by receipt of contractual cash flows and sale of financial assets; and • its contractual terms generate, on specific dates, cash flows related to the payment of principal and interest on the outstanding principal amount. At the initial recognition of an investment in an equity instrument that is not held for trading, the Company may irrevocably opt to report subsequent alterations in the fair value of investment under other comprehensive income. This option is made on each individual investment. All financial assets not classified as measured at amortized cost or at fair value through other comprehensive income, as described above, are classified as fair value through income. This includes all derivative financial assets. At initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost, at fair value through other comprehensive income or fair value through income if this significantly eliminates or reduces an accounting mismatch that otherwise would arise (option of fair value available in IFRS 9). A financial asset (unless these are trade receivables without a significant financing component which is firstly measured by the price of the transaction) is initially measured by fair value, accrued, for an item not measured at fair value through income of transaction costs which are directly attributable to its acquisition. • Financial assets measured at fair value through income • Financial assets at amortized cost • Financial assets at fair value through other comprehensive income 19.2 Derecognition of financial assets and liabilities A financial asset (or, where applicable, part of a financial asset or part of a group of similar financial assets) is derecognized when: • The rights of cash flows receivables expire; and • The Company transfers its rights to receive cash flows from an asset or assume an obligation of fully paying the cash flows received to a third party, under the terms of a transfer agreement; and (a) the Company substantially transferred all the risks and benefits related to the asset; or (b) the Company neither transferred nor substantially retained all the risks and benefits relating to the asset, but transferred its control. When the Company assigns its rights to receive cash flows from an asset or enters into a transfer agreement without having substantially transferred or retained all of the risks and benefits relating to the asset nor transferred the asset control, the asset is maintained and the related liability is recognized. The asset transferred and related liability are measured to reflect the rights and obligations retained by the Company. A financial liability is derecognized when the liability underlying obligation is settled, canceled, or expired. When a financial liability is replaced by another of the same creditor, through substantially different terms, or terms of an existing liability are substantially modified, this replacement or modification is treated as the derecognition of original liability and recognition of a new liability, and the difference between respective carrying amounts is recognized in the statement of operations. 19.3 Offset of financial instruments The financial assets and liabilities are offset and reported net in consolidated financial statements, if, and only if, amounts recognized can be offset and with the intention of settlement on a net basis, or realize assets and settle liabilities, simultaneously. 19.4 Derivative financial instruments The Company uses derivative financial instruments to limit the exposure to variation unrelated to the local market, such as interest rate swaps and exchange rate variation swaps. These derivative financial instruments are initially recognized at fair value on the date on which the derivative contract is executed and subsequently re-measured at fair value at the end of the reporting period. Derivatives are recorded as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Gains or losses resulting from changes in the fair value of derivatives are directly recorded in the statement of operations. At the inception of a hedge relationship, the Company formally designates and documents the hedge relationship to which it intends to apply hedge accounting and its objective and risk management strategy for contracting the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the Company will assess the effectiveness of the changes in the hedging instrument’s fair value in offsetting the exposure to changes in the fair value of the hedged item or cash flow attributable to the hedged risk. These hedges are expected to be highly effective in offsetting changes in the fair value or cash flow and are assessed on an ongoing basis to determine if they have been highly effective throughout the periods for which they were designated. The following are recognized as fair value hedges: • The change in the fair value of a derivative financial instrument classified as fair value hedging is recognized as financial result. The change in the fair value of the hedged item is recorded as a part of the carrying amount of the hedged item and is recognized in the statement of operations; and • In order to calculate the fair value, debts and swaps are measured through rates available in the financial market and projected up to their maturity date. The discount rate used in the calculation by the interpolation method for borrowings denominated in foreign currency is developed through CDI curves, free coupon and DI, indexes disclosed by the B3, whereas for borrowings denominated in Reais, the Company uses the DI curve, an index published by the CETIP (Securities Custodial and Clearing Center) and calculated through the exponential interpolation method. The Company uses financial instruments only to hedge identified, risks limited to 100% of the value of these risks. Derivative instruments transactions are exclusively used to reducing the exposure to the risk of changes in interest rates and foreign currency fluctuation and maintaining a balanced capital structure 19.5 Cash flow hedge Derivative instruments are recorded as cash flow hedge, using the following principles: • The effective portion of the gain or loss on the hedge instrument is recognized directly in shareholders’ equity in other comprehensive income. In case the hedge relationship no longer meets the hedging ratio but the objective of management risk remains unchanged, the Company should “rebalance” the hedge ratio to meet the eligibility criteria. • Any remaining gain or loss on the hedge instrument (including arising from the "rebalancing" of the hedge ratio) is ineffective, and therefore should be recognized in profit or loss. • Amounts recorded in other comprehensive income are immediately transferred to the statement of operations together with the hedged transaction by affecting the statement of operations, for example, when the hedge financial income or expense is recognized or when a forecast sale occurs. When the hedged item is the cost of a non-financial asset or liability, the amounts recorded in equity are transferred to the initial carrying amount of the non-financial asset or liability. • The Company should prospectively discontinue hedge accounting only when the hedge relationship no longer meets the qualification criteria (after taking into account any rebalancing of the hedge relationship). • If the expected transaction or firm commitment is no longer expected, amounts previously recognized in shareholders’ equity are transferred to the statement of operations. If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover, or if its hedge classification is revoked, gains or losses previously recognized in comprehensive income remain deferred in equity in other comprehensive income until the expected transaction or firm commitment affect the profit or loss. 19.6 Impairment of financial assets IFRS 9 replaces the “incurred loss” model of IAS 39 with an expected loan loss model. The new impairment loss model applies to financial assets measured at amortized cost, contractual assets, and debt instruments measured at fair value through other comprehensive income but does not apply to investments in equity instruments (shares) or financial assets measured at fair value through income. Pursuant to IFRS 9, provisions for losses are measured at one of the following bases: • Loan losses expected for 12 months (general model): these are loan losses resulting from possible default events within 12 months after the end of the reporting period, and subsequently, in case of a deterioration of credit risk for the entire life of the instrument. • Loan losses expected for entire life (simplified model): these are loan losses resulting from all possible default events over the expected life of a financial instrument. • Practical expedient: these are loan losses expected and consistent with reasonable and sustainable information available, at the end of the reporting period on past events, current conditions, and estimates of future economic conditions that allow verifying probable future loss based on the historical loan loss occurred in accordance with instruments maturity. The Company measures provisions for trade receivable losses and other receivables and contractual assets through an amount corresponding to the loan loss expected for the entire life, and for trade receivables, whose receivables portfolio is fragmented, rents receivable, the practical expedient is applied by adopting a matrix of losses for each maturity level. When determining whether the credit risk of a financial asset significantly increased from initial recognition, and when estimating the expected loan losses, the Company considers reasonable and sustainable information which is relevant and available without cost or excessive effort. This includes qualitative and quantitative information and analyses, based on the Company’s historical experience, the assessment of credit, and considering projection information. The Company assumes that the credit risk in a financial asset significantly increased if it is more than 90 days overdue. The Company considers a financial asset in default when: • it is unlikely that the debtor will fully pay its loan obligations to the Company, without resorting to collateral (if any); or • the financial asset is more than 90 days overdue. The Company determines the credit risk of a debt instrument by analyzing the payment history, financial, and current macroeconomic conditions of counterparty and assessment of rating agencies, where applicable, thereby evaluating each instrument, individually. The maximum period considered in the estimate of expected receivable loss is the maximum contractual period during which the Company is exposed to the credit risk. • Measurement of expected loan losses Expected loan losses are discounted by the effective interest rate of a financial asset. • Financial assets with credit recovery problems • Reporting of impairment loss For financial instruments measured at fair value through other comprehensive income, the provision for losses is recognized in other comprehensive income, instead of reducing the asset’s carrying amount. Impairment losses related to trade receivables and other receivables, including contractual assets, are reported separately in the statement of operations and other comprehensive income. Losses of recoverable amounts from other financial assets are stated under "selling expenses”. • Trade receivables and contractual assets Positions within each group were segmented based on common characteristics of credit risk, such as: • Level of credit risk and loss history for wholesale clients and property lease; and • Status of default risk and loss history for credit card companies and other clients The main financial instruments and their carrying amounts, by category, are as follows: Carrying amounts Notes 2020 2019 Financial assets Amortized cost Related parties - assets 12 178 97 Accounts receivable and other accounts receivable 8 and 9 117 686 Other assets 51 Fair value through income Cash and cash equivalents 7 3,532 5,026 Financial instruments - fair value hedge- long position 19 68 40 Other assets 2 Fair value through other comprehensive income Accounts receivable with credit card companies and sales tickets 8 99 48 Other assets 0 — 19 Financial liabilities Other financial liabilities - amortized cost Related parties - liabilities 12 (41 ) (152 ) Trade payables 18 (5,058 ) (9,770 ) Financing through acquisition of assets (34 ) (101 ) Borrowings and financing 19.13 (897 ) (843 ) Debentures 19.13 (6,599 ) (7,883 ) Lease liabilities 21.2 (2,776 ) (3,751 ) Fair value through income Borrowings and financing, including derivatives 19.13 (335 ) (84 ) Financial instruments - Fair value hedge - short position — (11 ) Financial instruments on suppliers - Fair value hedge – Short — (8 ) Grupo Disco put option 19.10 — (466 ) Net exposure (11,746 ) (17,100 ) The fair value of other financial instruments detailed in table above approximates the carrying amount based on the existing terms and conditions. The financial instruments measured at amortized cost, the related fair values of which differ from the carrying amounts, are disclosed in note 19.10. 19.7 Considerations on risk factors that may affect the businesses of the Company 19.7.1 Credit Risk · Cash equivalents: In order to minimize credit risks, the Company adopts investments policies at financial institutions approved by the Company’s Financial Committee, also taking into consideration monetary limits and financial institution evaluations, which are regularly updated. · Trade receivables: Credit risk related to trade receivables is minimized by the fact that a large portion of sales are paid with credit cards, and the Company sells these receivables to banks and credit card companies, aiming to strengthen working capital. The sales of receivables result in derecognition of the accounts receivable due to the transfer of the credit risk, benefits and control of such assets. Additionally, regarding the trade receivables collected in installments, the Company monitor the risk through the credit concession and by periodic analysis of the provision for losses. The Company also has counterparty risk related to derivative instruments, which is mitigated by the Company carrying out transactions, according to policies approved by governance boards. There are no amounts receivable that are individually, higher than 5% of accounts receivable or sales, respectively. 19.7.2 Interest rate risk The Company obtains borrowings and financing with major financial institutions for cash needs for investments. As a result, the Company is mainly exposed to relevant interest rates fluctuation risk, especially in view of derivatives liabilities (foreign currency exposure hedge) and CDI Indexed debts. The balance of cash and cash equivalents, indexed to CDI, partially offsets the interest rate risk. 19.7.3 Foreign currency exchange rate risk The Company is exposed to exchange rate fluctuations, which may increase outstanding balances of foreign currency-denominated borrowings. The Company uses derivatives, such as swaps, aiming to mitigate the foreign currency exchange rate risk, converting the cost of debt into domestic currency and interest rates. 19.7.4 Capital risk management The main objective of the Company’s capital management is to ensure that the Company maintains its credit rating and a well-balanced equity ratio, in order to support businesses and maximize shareholder value. The Company manages the capital structure and makes adjustments taking into account changes in the economic conditions. The Company’s capital structure is as follows: As of December 31, 2020 2019 Borrowings and financing (7,831 ) (8,821 ) (-) Cash and cash equivalents 3,532 5,026 (-) Derivative financial instruments 68 40 Net debt (4,231 ) (3,755 ) Shareholders´ equity (1,347 ) (9,701 ) % Net debt over shareholders´ equity 314 % 39 % 19.7.5 Liquidity risk management The Company manages liquidity risk through the daily analysis of cash flows and maturities of financial assets and liabilities. The table below summarizes the aging profile of the Company’s financial liabilities as of December 31, 2020. Less than 1 year 1 to 5 years More than 5 years Total Borrowings and financing 318 1,037 18 1,373 Debentures 2,018 5,392 — 7,410 Derivative financial instruments (61 ) (11 ) (2 ) (74 ) Lease liabilities 423 1,918 2,913 5,254 Trade payable 5,058 — — 5,058 Total 7,756 8,336 2,929 19,021 The table above was prepared considering the undiscounted cash flows of financial assets and liabilities based on the earliest date the Company may be required to make a payment or be eligible to receive a payment. To the extent that interest rates are floating, the non-discounted amount is obtained based on interest rate curves in the six months ended on December 31, 2020. Therefore, certain balances are not consistent with the balances reported in the balance sheets. 19.8 Derivative financial instruments Swap transactions are designated as fair value hedges, with the objective to hedge the exposure to changes in foreign exchange rates and fixed interest rates (U.S. dollars), converting the debt into domestic interest rates and currency. On December 31, 2020, the notional amount of these contracts was R$407 (R$106 on December 31, 2019). These transactions are usually contracted under the same term of amounts and carried out with a financial institution of the same economic group, observing the limits set by Management. According to the Company’s treasury policies, swaps cannot be contracted with restrictions (“caps”), margins, as well as return clauses, double index, flexible options or any other types of transactions different from traditional “swap” and “forwards” transactions to hedge against debts. The Company’s internal controls were designed to ensure that transactions executed conform to the treasury policy. The Company calculates the effectiveness of hedge transactions at the inception date and on a continuing basis. Hedge transactions contracted in the year ended December 31, 2020 were effective in relation to the covered risk. For derivative transactions that qualify as hedge accounting, the debt which is the hedged item, is also adjusted at fair value. Notional value Fair value 2020 2019 2020 2019 Swap with hedge accounting Hedge purpose (debt) 301 750 335 84 Long position Fixed rate 301 95 11 84 USD + Fixed 106 655 57 — Short position (407 ) (698 ) — (73 ) Net hedge position — 52 68 11 Realized and unrealized gains and losses on these contracts during the year ended December 31, 2020, are recorded as financial income or expenses and the balance receivable at fair value is R$68 (R$11 as of December 31, 2019). Assets are recorded as “financial instruments” and liabilities as “borrowings and financing”. The effects of the fair value hedge recorded in the statement of operations for the year ended December 31, 2020, resulted in a gain of R$68, recorded under debt of cost, note 28 (gain of R$30 as of December 31, 2019 and gain of R$69 as of December 31, 2018). 19.8.1 Fair values of derivative financial instruments Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. Fair values are calculated using projected the future cash flow, using the CDI curves and discounting to present value, using CDI market rates for swap both disclosed by the B3. The fair value of exchange coupon swaps versus CDI rate was determined based on market exchange rates effective at the date of the financial statements and projected based on the currency coupon curves. In order to calculate the coupon of foreign currency indexed-positions, the straight-line convention - 360 consecutive days was adopted and to calculate the coupon of CDI indexed-positions, the exponential convention - 252 business days was adopted. 19.9 Sensitivity analysis of financial instruments According to Management’s assessment, the most probable scenario is what the market has been estimating through market curves (currency and interest rates) of the B3, on the maturity dates of each transaction. Therefore, in the probable scenario (I) there is no impact on the fair value of financial instruments. For scenarios (II) and (III), for the exclusive effect, a deterioration from 25% to 50% was taken into account, respectively, on risk variables, up to one year of financial instruments. For a probable scenario, the weighted exchange rate was R$5.64 on the due date, and the interest rate weighted was 1.96% per year. In the case of derivative financial instruments (aiming at hedging the financial debt), changes in scenarios are accompanied by respective hedges, indicating that the effects are not significant. The Company disclosed the net exposure of derivative financial instruments, each of the scenarios mentioned above in the sensitivity analysis as follows: Market projections Transactions Risk Balance at 2020 Scenario (I) Scenario (II) Scenario (III) Borrowings and Financing CDI + 3.58 per year (910 ) (937 ) (944 ) (951 ) Fixed rate swap contract (short position) CDI + 0.04 per year (62 ) (176 ) (179 ) (182 ) Foreign exchange swap contract (short position) CDI +0.59 per year (206 ) (210 ) (212 ) (214 ) Debentures CDI + 2.07 per year (6,573 ) (6,763 ) (6,811 ) (6,858 ) Total net effect (loss) (7,751 ) (8,086 ) (8,146 ) (8,205 ) Cash equivalents 96.96% of CDI 3,532 3,611 3,630 3,650 Net exposure (loss): (4,219 ) (4,475 ) (4,516 ) (4,555 ) Net effect (loss): (256 ) (297 ) (336 ) 19.10 Fair value measurement The Company discloses the fair value of financial instruments measured at fair value and of financial instruments measured at amortized cost, the fair value of which differ from the carrying amount, in accordance with IFRS13, which refer to the requirements of measurement and disclosure. The fair value hierarchy levels are defined below: Level 1: Quoted (unadjusted) market prices in active markets for assets or liabilities. Level 2: Valuation techniques for which the lowest level inputs that is significant to the fair value measurement is directly or indirectly observable. Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. The data used in fair value models are obtained, whenever possible, from observable markets or from information in comparable transactions in the market, the benchmarking of the fair value of similar financial instruments, the analysis of discounted cash flows or other valuation models. Judgment is used in the determination of assumptions in relation to liquidity risk, credit risk and volatility. Changes in assumptions may affect the reported fair value of financial instruments. In the case of financial instruments not actively negotiated, the fair value is based on valuation techniques defined by the Company and compatible with usual market practices. These techniques include the use of recent market operations between independent parties, the benchmarking of similar financial instruments’ fair value, the analysis of discounted cash flows, or other valuation models. The fair values of cash and cash equivalents, trade receivables and trade payables approximate their carrying amounts. The table below sets forth the fair value hierarchy of financial assets and liabilities measured at fair value of financial instruments measured at amortized cost, for which the fair value has been disclosed in the consolidated financial statements: Carrying amount Fair value 2020 2019 2020 2019 Level (*) Trade receivables with credit cards 99 48 99 48 2 Swaps of annual rates between currencies 57 — 57 — 2 Interest rate swaps 11 40 11 10 2 Loans and financing (fair value) (335 ) (95 ) (335 ) (84 ) 2 Loans and financing (amortized cost) (7,496 ) (8,726 ) (6,529 ) (8,056 ) 2 Grupo Disco put option (*) — (466 ) — (466 ) 3 (7,664 ) (9,199 ) (6,697 ) (8,548 ) (*) Non-controlling shareholders of Group Disco del Uruguay S.A., Éxito’s subsidiary have an exercisable put option based on a formula that uses data such as net income, EBITDA - earnings before interest, taxes, depreciation and amortization - and net debt, in addition to fixed amounts determined in the contract and the exchange variation applicable for conversion to the functional currency. This put option is presented in “Acquisition of non-controlling interest”. There was no change between the fair value measurements hierarchy levels during the year ended December 31, 2020. Cross-currency and interest rate swaps and borrowings and financing are classified in level 2 since the fair value of such financial instruments was determined based on readily observable inputs, such as expected interest rate and current and future foreign exchange rate. 19.11 Position of operations with derivative financial instruments The Company has derivative contracts with the following financial institutions: Itaú BBA, Bradesco, Banco Tokyo, Scotiabank, Credit Agricole Corporate, Banco de Bogotá, BBVA, BNP, BBVA, Davivenda, Bancolombia, HSBC, and Corficolombia. The outstanding derivative financial instruments are presented in the table below: As of December 31, Description Risk Notional (millions) Due date 2020 2019 Debt USD – BRL US$ 50 2021 57 — Currency swaps registered at the Clearing House for the Custody and Financial Settlement of Securities - CETIP Interest rate swaps registered at CETIP Fixed rate x CDI R$ 54 2027 5 5 Fixed rate x CDI R$ 52 2027 6 5 Derivatives - Fair value hedge - Brazil 68 10 Debt USD – COP — 2020 — 20 USD – COP US$ 2 2022 — 1 Interest rate - COP COP 49,950 2020 — (1 ) Interest rate - COP COP 383,235 2021 — (1 ) Suppliers USD – COP USD 24 2020 — (8 ) Derivatives - Éxito Group — 11 19.12 19.13 As of December 31, Weighted average rate 2020 2019 Current Debentures and promissory notes Debentures CDI + 2.44 per year 1,864 1,189 Borrowing costs (24 ) (33 ) 1,840 1,156 Borrowing and financing in domestic currency BNDES 3.72% per year — 7 Working capital TR + 9.80% 12 14 Working capital CDI + 1.97 per year 9 — Borrowing costs (5 ) (3 ) Total domestic currency 16 18 In foreign currency Working capital USD + 2.35% per year 264 287 Swap contracts CDI +0.59 per year (57 ) — Swap contracts IBR 3M+3.7% — (18 ) Total foreign currency 207 269 Total current 2,063 1,443 As of December 31, Weighted average rate 2020 2019 Non-current Debentures and promissory notes Debentures CDI + 2.44 per year 4,780 6,773 Borrowing costs (21 ) (46 ) 4,759 6,727 Borrowings and financing domestic currency BNDES 4.31% per year — 16 Working capital TR + 9.80% 60 70 Working capital CDI + 1.97 per year 901 500 Swap contracts CDI + 0.04 per year (11 ) (10 ) Borrowing costs (9 ) (10 ) Total domestic currency 941 566 In foreign currency Working capital IBR 3M+3.7% — 46 Borrowing costs — (1 ) Total foreign currency — 45 Total non-current 5,700 7,338 Total 7,763 8,781 Current assets 57 29 Non-current assets 11 11 Current liabilities 2,120 1,472 Non-current liabilities 5,711 7,349 19.14 Rollforward Amounts Balance as of January 1, 2018 471 Additions 417 Accrued interest 30 Swap contracts (50 ) Mark-to-Market 10 Exchange rate and monetary variation 63 Interest amortization (24 ) Principal amortization (175 ) Swap amortization (7 ) IFRS 16 - related adjustment (9 ) Balance as of December 31, 2018 726 Funding - working capital 9,395 Interest provision 246 Swap contracts (16 ) Mark-to-market (46 ) Exchange rate and monetary variation (29 ) Borrowing costs 21 Interest amortization (116 ) Principal amortization (6,102 ) Swap amortization 95 Swap amortization 4,527 Conversion adjustment to reporting currency 80 Balance as of December 31, 2019 8,781 Funding - working capital 2,852 Interest provision 486 Swap contracts (60 ) Mark-to-market 12 Exchange rate and monetary variation 57 Debt modification impact 71 Borrowing costs 42 Interest amortization (549 ) Principal amortization (2,543 ) Swap amortization 13 Conversion adjustment to reporting currency 172 Discontinued operations (1,571 ) Balance as of December 31, 2020 7,763 19.15 Schedule of non-current maturities Maturity Amounts From 1 to 2 years 2,484 From 2 to 3 years 2,790 From 3 to 4 years 224 From 4 to 5 years 224 More than 5 years 8 Total 5,730 Borrowing Cost (30 ) Total 5,700 19.16 Debentures and promissory notes Data As of December 31, Type Issue amount Outstanding Debentures (units) Issuance Maturity Annual financial charges Unit price (in Reais) 2020 2019 First Issue of Promissory Notes - 1st series non-preemptive right 50 1 7/4/2019 7/3/2020 CDI + 0.72% per year — — 52 First Issue of Promissory Notes - 2nd series non-preemptive right 50 1 7/4/2019 7/5/2021 CDI + 0.72% per year 52,998,286 53 52 First Issue of Promissory Notes - 3rd series non-preemptive right 50 1 7/4/2019 7/4/2022 CDI + 0.72% per year 52,998,286 53 52 First Issue of Promissory Notes - 4th series non-preemptive right 250 5 7/4/2019 7/4/2023 CDI + 0.72% per year 52,998,286 267 258 First Issue of Promissory Notes - 5th series non-preemptive right 200 4 7/4/2019 7/4/2024 CDI + 0.72% per year 52,998,286 214 206 First Issue of Promissory Notes - 6th series non-preemptive right 200 4 7/4/2019 7/4/2025 CDI + 0.72% per year 52,998,286 213 206 First Issue of Debentures- 1st series non-preemptive right 2,000 200,000 9/4/2019 8/20/2020 CDI + 1.60% per year — — 1,001 First Issue of Debentures - 2nd series non-preemptive right 2,000 200,000 9/4/2019 8/20/2021 CDI + 1.74% per year 876 1,762 2,044 First Issue of Debentures - 3rd series non-preemptive right 2,000 200,000 9/4/2019 8/20/2022 CDI + 1.95% per year 1,004 2,033 2,045 First Issue of Debentures - 4th series non-preemptive right 2,000 200,000 9/4/2019 8/20/2023 CDI + 2.20% per year 1,005 2,049 2,046 Borrowing Cost (45 ) (79 ) 6,599 7,883 Current liabilities 1,840 1,156 Non-current liabilities 4,759 6,727 The Company issues debentures to strengthen its working capital, ma |
20 Provision for legal proceedi
20 Provision for legal proceedings | 12 Months Ended |
Dec. 31, 2020 | |
Provision For Legal Proceedings | |
Provision for legal proceedings | 20 Provision for legal proceeding Provisions are recognized when the Company has a present obligation (legal or not formalized) as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation, and the obligation can be reliably estimated. The expense related to any provision is recognized in statement of operations for the year, net of any reimbursement. In case of attorney’s fees in favorable court decisions, the Company’s policy is to record a provision when fees are incurred, upon final judgment on lawsuits, as well as disclose in the notes the estimated amounts involved in lawsuits in progress. In order to assess the outcome’s probability the Company considers available evidence, the hierarchy of laws, prior court decisions in similar cases and their legal significance, as well as the legal counsel’s opinion. The provision for legal proceedings is estimated by the Company and supported by its legal counsel, for an amount considered sufficient to cover probable losses. Tax claims Social security and labor Civil Total Balance as of December 31, 2019 221 75 53 349 Additions 27 42 79 148 Reversals (9 ) (43 ) (19 ) (71 ) Payments (1 ) (5 ) (35 ) (41 ) Monetary correction 1 8 3 12 Conversion adjustment to reporting currency 18 2 4 24 Discontinued operation (88 ) (16 ) (35 ) (139 ) Balance as of December 31, 2020 169 63 50 282 - Tax claims Social security and labor Civil Total Balance as of December 31, 2018 147 53 36 236 Additions 16 12 13 41 Reversals (10 ) (8 ) (4 ) (22 ) Payments (13 ) (2 ) (7 ) (22 ) Monetary correction 3 7 1 11 Business combinations 76 13 14 103 Exchange rate changes 2 — — 2 Balance as of December 31, 2019 221 75 53 349 Tax claims Social security and labor Civil Total Balance as of December 31, 2017 199 52 33 284 Additions 2 8 10 20 Reversals (49 ) (11 ) (6 ) (66 ) Payments — (2 ) (4 ) (6 ) Monetary correction (5 ) 6 3 4 Balance as of December 31, 2018 147 53 36 236 20.1 Tax claims Tax claims are subject by law to the monthly monetary correction, which refers to an adjustment to the provision based on indexing rates adopted by each tax jurisdiction. Both interest rates charges and fines, where applicable, were calculated and provisioned with respect to unpaid amounts. The main tax claims provisioned are as follows: The Company has other tax claims, which according to its legal counsels’ analysis, were provisioned, namely: (i) discussions on the non-application of Prevention Accident Factor (FAP); (ii) discussions with State tax authorities on ICMS tax rate calculated in electricity bills; (iii) staple basket; and (iv) other matters. The provisioned amount on December 31, 2020, for these matters is R$169 (R$221 on December 31, 2019). 20.2 Social security and labor The Company is a party to various labor proceedings, especially due to dismissals in the regular course of business. On December 31, 2020, the Company recorded a provision of R$63 (R$75 on December 31, 2019), referring to a potential risk of loss relating to labor claims. Management, with the assistance of its legal counsels, assesses these claims and recording provisions for losses when reasonably estimated, considering previous experiences in relation to amounts claimed. 20.3 Civil The Company is party to civil proceedings (indemnifications, collections, among others) at in different procedural phases and various central courts. Management records provisions in amounts considered sufficient to cover unfavorable court decisions when its internal and external legal counsel assess the losses to be probable. Among these proceedings, we highlight the following: The Company is party to various lawsuits requesting the renewal of rental agreements and the review of the current rent paid. The Company records a provisions for the difference between the amount originally paid by stores and the amounts claimed by the adverse party in the lawsuit when internal and external legal counsels consider the probability of changing the lease amount paid by the entity. On December 31, 2020, the provision for these lawsuits amounted to R$23 (R$28 on December 31, 2019), for which there are no judicial deposits for legal proceeding. The Company is party to certain lawsuits relating to the fines applied by inspection bodies of direct and indirect administration of the federal government, states, and municipalities, including consumer defense bodies (PROCONs, INMETRO, and local governments). The Company, assisted by its legal counsel, assesses these claims recording provisions for probable cash disbursements, according to the probability of loss. On December 31, 2020, the provision for these lawsuits is R$5 (R$8 on December 31, 2019). The Company’s total civil and regulatory claims on December 31, 2020, is R$50 (R$53 on December 31, 2019). 20.4 Possible contingent liabilities The Company is party to other litigations for which the probability of loss was deemed by its legal counsel to be possible, but not probable, therefore, not accrued, totaling an updated amount of R$2,408 on December 31, 2020 (R$2,353 on December 31, 2019). Accordingly, no provisions were recorded in connection with these proceedings, which are mainly related to: IRPJ (corporate income tax), IRRF (withholding income tax), CSLL (social contribution on net income) – The Company received several tax assessment notices relating to tax offsetting proceedings, goodwill disallowance, disagreements regarding payments and overpayments, fines due to non-compliance with ancillary obligation, among other less relevant issues. The amount involved corresponds to R$446 on December 31, 2020 (R$457 on December 31, 2019). COFINS, PIS (federal taxes on gross revenues) – The Company has been questioned about discrepancies in payments and overpayments; fine due to non-compliance with ancillary obligation, disallowance of COFINS and PIS credits, among other issues. These proceedings are pending judgment at the administrative and judicial levels. The amount involved in these tax assessments is R$632 as of December 31, 2020 (R$666 on December 31, 2019). Regarding the IPI assessments, there was a judgment in August 2020 in the STF that decided against taxpayers, However, in the analysis of the specific cases by our legal advisors, we consider that the risk of loss remained as possible. ICMS (State VAT) – The Company received tax assessment notices from State tax authorities in connection with credits from purchases from suppliers acquisitions considered unqualified by the registry of the State Revenue Service, among others matters. These tax assessments amount to R$1,235 on December 31, 2020 (R$1,157 on December 31, 2019). These proceedings are pending final judgment at the administrative and judicial levels. ISS (services tax), IPTU (urban property tax), Fees and other – The Company has received tax assessments relating to discrepancies in payments of IPTU, fines due to non-compliance with ancillary obligations, ISS – refund of advertising expenses and various fees, totaling R$13 on December 31, 2020 (R$13 on December 31, 2019). These proceedings are pending judgment at the administrative and judicial levels. INSS (national institute of social security) – The Company was assessed due to the levy of payroll charges over benefits granted to its employees, among other issues, with possible losses of R$21 on December 31, 2020 (R$21 on December 31, 2019). Proceedings have been discussed in the administrative and judicial levels. On August 28, 2020, the STF, in general repercussion, recognized the incidence of social security contributions on the constitutional third of vacations as constitutional. The Company has been monitoring the development of these issues, and together with its legal advisors, concluded that the elements so far do not require a provision to be made. Other litigation– These proceedings refer to real estate lawsuits in which the Company claims the renewal of lease agreements and rents according to market prices. These lawsuits involve proceedings litigated in civil court, and special civil court, as well as administrative proceedings filed by inspection bodies, such as the consumer defense body (PROCONs), the National Institute of Metrology, Standardization and Industrial Quality– INMETRO, the National Agency of Sanitary Surveillance - ANVISA, among others, totaling R$24 on December 31, 2020 (R$20 on December 31, 2019). The Company engages external legal counsel to represent it in the tax assessments, whose fees are contingent on the final outcome of the lawsuits. Percentages may vary according to qualitative and quantitative factors of each proceeding, on December 31, 2020, the estimated amount, in case of success of all lawsuits, was approximately R$17 (R$19 on December 31, 2019). 20.5 Guarantees Lawsuits Real properties Letter of guarantees Total Tax 18 290 308 Labor — 101 101 Civil and others — 21 21 Total 18 412 430 The cost of guarantees is approximately 0.45% per year of the amount of the lawsuits and is recorded as a financial expense. 20.6 Deduction of ICMS from the calculation basis of PIS and COFINS Since the adoption of the non-cumulative regime to calculate PIS and COFINS, the Company has claimed the right to deduct ICMS taxes from the calculation basis of PIS and COFINS. On March 15, 2017, the Supreme Court ruled that the ICMS should be excluded from the calculation basis of PIS and COFINS. Since such decision, the proceedings have been brought forward by our legal advisors without any change in management's judgment, but without the final decision on the appeal filed by the Attorney General. The Company and its legal counsel believe that decision on this appeal will limit the right of the lawsuit filed by the Company. However, the elements of the proceedings are still pending decision and do not allow the recognition of assets related to the credits to be raised since the filing of the lawsuit in 2003. The Company expects a potential credit amount of R$ 117. 20.7 Inspections Pursuant to prevailing tax laws, municipal, federal, state taxes and social security contributions are under scrutiny at periods varying between 5 and 30 years. 20.8 Restricted deposits for legal proceedings The Company is challenging the payment of certain taxes, contributions, and labor liabilities and made judicial deposits in the corresponding amounts, as well as escrow deposits related to the provision for legal proceeding. The Company recorded amounts referring to judicial deposits in its assets as follows. As of December 31, Lawsuits 2020 2019 Tax 64 69 Labor 67 43 Civil and others 3 9 Total 134 121 |
21 Leases
21 Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | 21 Leases 21.1 Lease obligations When entering into a contract, the Company assesses whether the contract is, or contains a lease. The contract is or contains a lease if it transfers the right to control the use of the identified assets for a specified period in exchange for consideration. The Company leases equipment and commercial spaces, including stores and distribution centers, under cancellable and non-cancellable lease agreements. The terms of the contracts vary substantially between 5 and 20 years. The Company as lessors The Company evaluates its lease agreements in order to identify lease terms for a right to use, using the exemptions provided for contracts with a term of less than twelve months and an individual asset value below US$ 5,000 (five thousand dollars). The contracts are then recorded, when the lease begins, as a Lease Liability against Right of Use (Notes 16 and 17), both at the present value of minimum lease payments, using the interest rate implicit in the contract, if this can be used, or an incremental borrowing rate considering loans obtained by the Company. The lease term used in the measurement corresponds to the term that the lessee is reasonably certain of exercising the option to extend the lease or not exercise the option to terminate the lease. Subsequently, payments made are segregated between financial charges and reduction of the lease liability, in order to obtain a constant interest rate on the liability balance. Financial charges are recognized as financial expense for the period. Right-of-use assets are amortized over the lease term. Capitalizations for improvements and renovations carried out in stores are amortized over their estimated useful life or the expected term of use of the assets, limited if there is evidence that the lease will not be extended. Variable rents are recognized as expenses in the years in which they are incurred. The Company as lessor Leases in which the Company does not substantially transfer all the risks and benefits of ownership of the asset are classified as operating leases. The initial direct initial costs of negotiating operating leases are added to the book value of the leased asset and recognized over the term of the contractual, on the same basis as rental income. Variable rentals are recognized as income in the years in which they are earned. 21.2 Minimum future payments and potential right of PIS and COFINS Leasing agreements totaled R$ 2,776 on December 31, 2020 (R$ 3,751 on December 31, 2019). The minimum future payments as leases, by leases term and with the fair value of minimum lease payments, are as follows: As of December 31, 2020 2019 Financial lease liabilities - minimum payments Less than 1 year 172 404 1 to 5 years 866 1,323 More than 5 years 1,738 2,024 Present value of financial lease agreements 2,776 3,751 Future financing charges 2,478 2,347 Gross amount of financial lease agreements 5,254 6,098 PIS and COFINS embedded in the present value of lease agreements 169 115 PIS and COFINS embedded in the gross value of lease agreements 319 214 Lease liabilities interest expense is stated in note 28. The incremental interest rate of the Company on the signing date of the agreement was 9.72% in the fiscal year ended December 31, 2020 (10.73% on December 31, 2019). The average term of the contracts considered is 11.6 years. The Company no longer has international operations as of December 31, 2020, due to the corporate reorganization described in note 1.3. 21.3 Lease obligation rollforward Amounts As of January 1, 2018 1,009 Funding – Lease 210 Remeasurement 52 Interest provision 124 Amortizations (216) Exchange rate and monetary variation 1 As of December 31, 2018 1,180 Funding – Lease 682 Remeasurement 138 Interest provision 170 Amortizations (267) Write-off due to early termination of agreement (1) Company acquisition 1,817 Conversion currency adjustment 32 As of December 31, 2019 3,751 Funding – Lease 1,240 Remeasurement 621 Interest provision 415 Exchange rate and monetary variation 1 Amortizations (756) Write-off due to early termination of agreement (518) Transfer to parent company 9 Conversion currency adjustment 433 Discontinued operation (2,416) Corporate restructuring (4) As of December 31, 2020 2,776 Current 172 Non-current 2,604 21.4 Lease expense on variable rents, low-value, and short-term assets As of December 31, 2020 2019 Expenses (revenues) for the period: Variables (0.5% e 1.6% of sales) 16 19 Subleases (*) 22 20 (*) Refers mainly to revenue from lease agreements receivable from commercial galleries. |
22 Deferred revenues
22 Deferred revenues | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Revenues | |
Deferred revenues | 22 Deferred revenues Deferred revenues are recognized by the Company as a liability due to anticipation of amounts received from business partners. These are recognized in the statement of operations in the periods when the services are rendered to these business partners. As of December 31, 2020 2019 Rental of spaces in stores 186 132 Checkstand 29 20 Gift card 2 95 Revenue with credit card operators — 15 Deferred revenues - Éxito Group — 8 Others 11 9 Total 228 279 Current 227 277 Non-current 1 2 The Company received in advance amounts referring to the rental of backlight panels, supplier product exhibition modules, or check stands, rental of POS displays, and front-fee anticipation with credit card operators. |
23 Income tax and social contri
23 Income tax and social contribution | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax And Social Contribution Abstract | |
Income tax and social contribution | 23 Income tax and social contribution Current income tax and social contribution Current income tax and social contribution assets and liabilities are measured by the amount expected to be refunded or paid to the tax authorities. The tax rates and laws adopted to calculate tax are those effective or substantially effective, at the balance sheet dates. Income taxes in Brazil consist of Corporate Income Tax (“IRPJ”) and Social Contribution on Net Income (“CSLL”), calculated based on taxable income, at the statutory rates set forth in the legislation in force: 15% on taxable income plus an additional 10% on annual taxable income exceeding R$ 240,000 for IRPJ, and 9% for CSLL. Deferred income tax and social contribution Deferred income tax and social contribution are generated by temporary differences, at the end of the reporting periods, between the tax bases of assets and liabilities, carrying amounts and all unused tax losses, to the extent it is probable that taxable income will occur from which temporary differences and unused tax losses can be deducted; except when deferred income tax and social contribution referring to the deductible temporary difference results from the initial recognition of an asset or liability in an operation which is not a business combination and, at the moment of operation, neither affects the accounting profit nor the tax income or loss. With respect to deductible temporary differences associated with investments in subsidiaries, deferred income tax, and social contribution are recognized only if temporary differences can be reversed in the foreseeable future and taxable income will be available from which temporary differences can be used. The carrying amount of deferred income tax and social contribution assets is reviewed at the end of each reporting period and reduced since it is no longer probable that taxable income will be sufficient to allow the use of total or part of deferred income tax and social contribution. Non-recognized deferred income tax and social contribution assets are re-assessed at the end of the reporting period and again recognized, since it is probable that future taxable income will allow the recovery of these assets. Accumulated loss carryforwards from deferred income tax and social contribution do not expire no limitation period, but their utilization, as provided for by laws, is restricted to 30% of taxable income of each year for Brazilian legal entities, and refer to their subsidiaries which have tax planning to use these balances. Deferred taxes relating to items directly recognized in shareholders’ equity are also recognized in shareholders’ equity, and not in the statement of operations. Deferred income tax and social contribution assets and liabilities are offset if there is any legal or contractual right to offset the tax assets against the income tax liabilities, and deferred assets refer to the same taxpayer entity and the same tax authority. Due to the nature and complexity of the Company’s businesses, differences between effective results and assumptions adopted or future alterations of these assumptions may result in future adjustments to tax revenue and expenses already recorded. The Company set up provisions, based on reasonable estimates for taxes due. The value of these provisions is based on several factors, such as the experience of previous inspections and different interpretation of tax regulation by taxpayer entity and related tax authority. These different interpretations can refer to a wide variety of issues, depending on the conditions in force at the home of the respective entity. 23.1 Reconciliation of income tax and social contribution expense For the year ended December 31, 2020 2019 2018 Restated Earnings before income tax and social contribution 1,625 1,502 1,553 Expense of income tax and social contribution (553 ) (511 ) (528 ) Adjustments to reflect the effective rate Tax fines (1 ) (2 ) (1 ) Share of profit 105 84 39 Tax benefits 29 — — Other permanent differences (16 ) 3 13 Effective income tax (436 ) (426 ) (477 ) Income tax and social contribution for the year Current (704 ) (293 ) (302 ) Deferred 268 (133 ) (175 ) Income tax and social contribution expenses (436 ) (426 ) (477 ) Effective rate 26.8 % 28.4 % 30.7 % 23.2 Breakdown of deferred income tax and social contribution Key components of deferred income tax and social contribution in the balance sheets are the following: As of December 31, 2020 2019 Assets Liabilities Net Assets Liabilities Net Deferred income tax and social contribution Tax losses — — — 253 — 253 Provision for legal proceedings 81 — 81 106 — 106 Exchange rate variation 26 — 26 31 — 31 Goodwill tax amortization — (315 ) (315 ) — (480 ) (480 ) Mark-to-market adjustment — (2 ) (2 ) — (3 ) (3 ) Property, plant and equipment, intangible and investment properties 20 — 20 — (1,217 ) (1,217 ) Unrealized gains with tax credits — (60 ) (60 ) — (130 ) (130 ) Cash flow hedge — (20 ) (20 ) — (78 ) (78 ) Lease net of right of use 131 — 131 105 — 105 Presumed tax on equity – Éxito Group — — — 192 — 192 Others 57 — 57 30 — 30 Gross deferred income tax and social contribution assets (liabilities) 315 (397 ) (82 ) 717 (1,908 ) (1,191 ) Compensation (315 ) 315 — (717 ) 717 — Net deferred income tax and social contribution assets (liabilities) — (82 ) (82 ) — (1,191 ) (1,191 ) Management has assessed the future realization of deferred tax assets, considering the projections of future taxable income. This assessment was based on information from the strategic planning report previously approved by the Board of Directors of Sendas Distribuidora. The Company estimates the recovery of the deferred tax assets as of December 31, 2020 as follows: Years Amounts Up to one year 69 From 2 years 246 315 23.3 Rollforward For the year ended December 31, 2020 2019 2018 At the beginning of the year (1,191 ) (265 ) (136 ) Benefits (expenses) in the year 372 (162 ) (175 ) Corporate reorganization 45 — — Deconsolidation 883 — — Purchase partnership — (747 ) — Conversion currency adjustment — (18 ) — Exchange variation (193 ) — — IFRS 16 – related adjustment — — 46 Other 2 1 — At the end of the year (82 ) (1,191 ) (265 ) |
24 Shareholders' equity
24 Shareholders' equity | 12 Months Ended |
Dec. 31, 2020 | |
Statement of changes in equity [abstract] | |
Shareholders' equity | 24 Shareholders’ equity 24.1 Capital stock and stock rights The Company’s capital stock on December 31, 2020 is R$ 761 (R$ 4,421 on December 31, 2019), represented by 268 million registered common shares, (258 million on December 31, 2019), all non-par and registered shares. According to the Company's bylaws, the Company’s authorized share capital may be increased up to 400 million common shares. As a result of the Company's spin-off described in note 1.3, the Company’s capital stock on December 31, 2020 was reduced by the amount of R$ 4,673. The Extraordinary Shareholders’ Meeting held on March 31, 2020 approved: (i) the payment of capital through 3 real estate properties in the amount of R$ 57, by issuing 87 million new registered, common shares, with no par value; and (ii) the capital increase by capitalizing the Advance for Future Capital Increase - AFAC in the amount of R$ 150, without issuing new shares. The Extraordinary Shareholders’ Meeting held on September 30, 2020, approved: (i) the payment of capital through 4 real estate properties in the amount of R$ 121, by issuing 42 million new registered common shares, with no par value. The Extraordinary Shareholders’ Meeting held on December 12, 2020, approved the capital increase with certain assets in the amount of R$146. The Extraordinary Shareholders’ Meeting, held on December 31, 2020, approved: (i) the full payment of capital through 2 real estate properties in the amount of R$ 45; (ii) capital increase in cash in the amount of R$ 500; and (iii) capital increase through the capitalization of credits held by GPA in the amount of R$ 140, by issuing 19 million new registered common shares, with no par value. 24.2 Distribution of dividends and interest on equity The Extraordinary Shareholders’ Meeting held on September 29, 2020 approved the interim payment of interest on equity, in the gross amount of R$ 310, over which the withholding income tax was deducted in the amount of R$ 46, corresponding to the net amount of R$ 264. The Extraordinary Shareholders’ Meeting held on February 11, 2019 approved the payment of interim dividends, referring to a part of income verified from July 1 to September 30, 2018, in the amount of R$ 50. The Extraordinary Shareholders’ Meeting held on December 26, 2019 approved the payment of interest on equity, in the gross amount of R$ 247, over which the withholding income tax was deducted in the amount of R$ 37, corresponding to the net amount of R$ 210. Management proposed dividends to be distributed, considering the anticipation of interest on equity to its shareholders, calculated as follows: For the year ended December 31, 2020 2019 2018 Net income for the year 1,398 1,047 1,076 % Legal reserve 5 % 5 % 5 % Legal reserve for the year 5 52 55 Minimum mandatory dividends - 25% 349 1 1 Interest on capital paid intermediaries 264 247 115 Minimum mandatory dividends paid in the form of interest on shareholder´s equity 85 1 1 Shareholders are entitled to receive a mandatory minimum annual dividend equivalent to 25% on December 31, 2020 (1% on December 31, 2019 and 2018) of the net income for each fiscal year, adjusted in accordance with the law, offsetting in annual dividends interest on own capital and dividends distributed in the year. The net profits or losses will be allocated by the shareholders, and their distribution, if any, will be made in the proportion established by them at the time. 24.3 Legal reserve Legal reserve: this is recorded by appropriating 5% of the net income of each fiscal year, observing the 20% limit of capital. 24.4 Compensation plan Prior to the spin-off described in note 1.3, the Company’s compensation plan was managed by GPA’s Board of Directors, which has assigned to the Human Resources and the Compensation Committee the responsibility to grant the options and act as an advisory in managing the Compensation Plan (the "Committee"). Members of the Committee meet to decide on the grant of options and Compensation Plan series or whenever necessary. Each series of the option granted are assigned the letter “B”, followed by a number. For the year ended December 31, 2020, the B5 and B6 Series of the Compensation Plan were granted. Options granted to a participant vest on a period of 36 (thirty-six) months from the date of grant ("grace period"), except with formal authorization by the GPA, and may only be exercised in the period beginning on the first day of the 37th (thirty-seventh) month from the date of grant, through the 42nd (forty-second) month from the date of grant ("exercise period"). The participants may exercise their total purchase options or in part, in one or more times, if for each year, the option exercise term is submitted during the exercise period. The exercise price of each stock option granted under the Compensation Plan should corresponds to R$0.01 (one cent) (“exercise price”). The exercise price shall be fully paid in domestic currency, through check or wire transfer available to GPA’s bank account, by the tenth (10th) day preceding the acquisition date of the shares. The participant are precluded for a period of 180 (one hundred and eight) days from the date of the share, directly or indirectly sell, assign, exchange, dispose of, transfer, grant to the capital of another company, grant option, or also, execute any act or agreement to result, or that may result in the direct or indirect, costly or free, all or any of the shares acquired by the exercise of the purchase option under the option plan. The Company withholds any applicable tax under Brazilian tax laws, less the number of shares delivered to the participant amount equivalent to taxes withheld. 24.5 Stock option plan Prior to the spin-off described in note 1.3, the Company’s stock option plan was managed by GPA’s Board of Directors, which has assigned to the Human Resources and the Compensation Committee the responsibility to grant options and to provide advice in managing the Stock Option Plan (the "Committee"). Committee members meet when options under the Option Plan are granted, and, when necessary, to make decisions in relation to the Stock Option Plan. Each series of options granted receive the letter "C" followed by a number. For the year ended December 31, 2020, the series C5 and C6 of the Option Plan were granted. For each series of options grant within the scope of the stock option plan, the exercise price of each stock option shall correspond to 80% of the average closing price of the GPA preferred shares traded over the last twenty (20) trading sessions of the B3, before the call notice for the Committee’s meeting to resolve on the grant of options of that series (“exercise price”). Options granted to a participant vest in a period of 36 (thirty-six) months from the grant date ("grace period"), and may only be exercised in the period beginning on the first day of the 37th (thirty-seventh) month as from the grant date, and ends on the last day of the 42nd (forty-second) month as of the grant date ("exercise period"), provided the exceptions included in the Compensation Plan. Participants may exercise the options in full or in part, in one or more times, by the formalization of the exercise. The options exercise price shall be paid in full in local currency by check or wire transfer available to the bank account held by the GPA, provided that the payment deadline will always be the tenth (10th) day preceding the date to acquire the shares. 24.6 Information on the stock option plans - GPA GPA created two stock option plans for preferred shares in 2020, series B6 and C6. According to the terms of the plans, including B6 and C6 series, each option offers to the beneficiary the right to acquire a preferred share. Both plans, contemplate a vesting period of 36 months from the date the Board of Directors approved the issuance of the series. The plans will be exercisable in until 6 months after the end of the vesting period. In order to exercise the options, the beneficiary must remain employee of the Company through the exercise date. The series are different in the exercise price of the options and in the existence or not of a restriction of selling after vesting. According to the plans, the options granted in each of the series may represent maximum 0.7% of the total shares issued by the GPA. On December 31, 2020, GPA had 239,000 preferred shares held in treasury, which could back the options granted by the Plan, and GPA’s preferred stock price at the B3 was R$75.05 per share. The table below sets forth the dilutive effect if all options granted were exercised: 2020 2019 Number of shares 268,352 267,997 Balance of effective stock options granted in force 1,468 2,153 Maximum percentage of dilution 0.55 % 0.80 % The fair value of each option granted is estimated on the grant date, by using the options pricing model “Black & Scholes” taking into account the following assumptions for the series B5 and C5: (a) expectation of dividends of 0.41%, (b) expectation of volatility of nearly 36.52% and (c) the weighted average interest rate without risk of 9.29%. The fair value of each option granted is estimated at the grant date using the option pricing model Black & Scholes, taking into account the following assumptions for the B6 and C6 series: (a) dividend expectation of 0.67%, (b) volatility expectation of nearly 32.74% and (c) the weighted average interest rate of 7.32%. The expectation of remaining average life of the series outstanding on December 31, 2020 is 0.88 year (1.50 year at December 31, 2019). The weighted average fair value of options granted on December 31, 2020 was R$58.78 (R$56.41 at December 31, 2019). Shares Weighted average exercise price Weighted average remaining term At December 31, 2018 Granted in the year 1,378 30.91 Canceled in the year (229 ) 38.64 Exercised in the year (697 ) 31.96 Expired in the year (236 ) 68.62 Open at year end 2,755 26.03 1.37 Total exercised on December 31, 2018 2,755 26.03 1.37 At December 31, 2019 Granted in the year 765 30.55 — Canceled in the year (126 ) 31.75 Exercised in the year (1,080 ) 21.55 — Expired in the year (161 ) 16.74 Open at year end 2,153 30.25 1.50 Total exercised on December 31, 2019 2,153 30.25 1.50 At December 31, 2020 Canceled in the year (70 ) 42.59 — Exercised in the year (489 ) 23.93 Expired in the year (126 ) 42.44 — Open at year end 1,468 30.71 0.88 Total exercised on December 31, 2020 1,468 30.71 0.88 The amounts recorded in the statement of operations, for the year ended on December 31, 2020, were R$5 (R$2 on December 31, 2019 and R$ 8 on December 31, 2018). 24.7 Share swap ratio and criteria for its calculation On December 31, 2020, the Company approved the stock option plan (Sendas Stock Option Plan) and the share-based compensation plan (Sendas Share-Based Compensation Plan). The Company’s spin-off described in note 1.3 did not involve a swap ratio, since the merger of spun-off assets did not result in a capital increase or issue of shares by GPA. In GPA’s spin-off described in note 1.3, shares issued by the Company and owned by GPA were directly delivered to GPA’s shareholders at the percentage equivalent to their interest in GPA’s capital stock, i.e., one share issued by the Company for each share issued by GPA. Following the spin-off of GPA and the Company on December 31, 2020, statutory officers remained entitled to GPA’s shares and options grant to which they are beneficiaries, under the terms of the GPA Stock Option Plan and GPA Share-Based Compensation Plan described above, already recognized in the Company’s results. 24.8 Other comprehensive income Exchange rate variation of foreign investment As part of the derecognition process of the subsidiary Éxito, from the Company's financial statements on December 31, 2020, as described in note 1.3, the foreign exchange variation of investment abroad recorded in “Other comprehensive income” in the amount of R$ 1,888 was also eliminated. According to IAS21 - The Effects of Changes in Interest Rates, the Company recorded in the income for the year the amount of R$ 171 corresponding to the 9.07% portion that represents the assets received through the exchange of assets with GPA. The remaining balance was recognized in equity. The cumulative effect of gains and losses from exchange rate variations when translating assets, liabilities, and results in Colombian pesos into Reais, corresponding to the Company’s investment in Éxito. |
25 Net operating revenue
25 Net operating revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue [abstract] | |
Net operating revenue | 25 Net operating revenue IFRS15 establishes a comprehensive framework to determine when and for how much revenue form contracts with customers should be recognized. Revenue a) Sale of goods Revenues from the sale of goods are recognized when control of the goods is transferred to the customer, usually when delivered in the store, and at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods. No revenue is recognized if collection is uncertain. b) Revenue from services rendered Since the Company sells mobile phone credits recharge at its stores, revenues earned are stated on a net basis and recognized in the statement of operations when it is probable that economic benefits will flow to the Company subsidiary, and their amounts can be reliably measured. For the year ended December 31, 2020 2019 2018 Restated Gross operating revenue Goods 39,436 30,487 25,075 Services rendered and others 100 87 17 39,536 30,574 25,092 (-) Revenue deductions Returns and sales cancellation (73 ) (57 ) (49 ) Taxes (3,420 ) (2,435 ) (2,026 ) (3,493 ) (2,492 ) (2,075 ) Net operating revenue 36,043 28,082 23,017 |
26 Expenses by nature
26 Expenses by nature | 12 Months Ended |
Dec. 31, 2020 | |
Expenses by nature [abstract] | |
Expenses by nature | 26 Expenses by nature Cost of sales The cost of goods sold comprises the acquisition cost of inventory net of discounts and considerations received from suppliers and logistics costs. Commercial agreement received from suppliers is measured based on contracts and agreements signed between the parties. The cost of sales includes the cost of logistics operations managed or outsourced by the Company, comprising the storage costs, handling and freight incurred until good is available for sale. Transportation costs are included in the acquisition costs. Selling expenses Selling expenses consists of all stores expenses, such as payroll, marketing, occupation, maintenance, and expenses related to credit card companies, among others. Marketing expenses refer to advertising campaigns. The Company’s principal means of communication are: radio, television, newspapers, and magazines, and the amounts of its commercial agreement are recognized in the statement of operations upon realization. General and administrative expenses General and administrative expenses correspond to indirect expenses and the cost of corporate units, including procurement and supplies, information technology, and financial activities. For the year ended December 31, 2020 2019 2018 Restated Cost of inventories (29,641 ) (22,929 ) (18,412 ) Personnel expenses (2,135 ) (1,691 ) (1,376 ) Outsourced services (224 ) (198 ) (152 ) Selling expenses (511 ) (408 ) (331 ) Functional expenses (600 ) (546 ) (615 ) Other expenses (264 ) (202 ) (142 ) (33,375 ) (25,974 ) (21,028 ) Cost of sales (30,129 ) (23,349 ) (18,845 ) Selling expenses (2,811 ) (2,273 ) (1,908 ) General and administrative expenses (435 ) (352 ) (275 ) (33,375 ) (25,974 ) (21,028 ) |
27 Other operating expenses, ne
27 Other operating expenses, net | 12 Months Ended |
Dec. 31, 2020 | |
Other Operating Expenses Net | |
Other operating expenses, net | 27 Other operating expenses, net Other operating revenue and expenses correspond to the effects of significant or non-recurring events during the fiscal year not classified into the definition of other items of the statement of operations. For the year ended December 31, 2020 2019 2018 Restated Result with property, plant and equipment (*) ( 42 ) 5 (39 ) Reversal (provision) for legal proceedings (18 ) (53 ) 40 Restructuring expenses ( 71 ) 37 — Covid-19 spending on prevention (**) ( 134 ) — — Indemnity assets 168 — Other — — (4 ) Total (97 ) (11 ) (3 ) (*) The result from fixed assets was mainly impacted by the Sale and Leaseback operations described in note 1.5, whose gain totaled R$52, which was offset by the losses of write off incurred in the year. (**) The expenses incurred as a result of the COVID-19 pandemic refer to the purchase of items of individual protection and adequacy of the stores, expenses with overtime, expenses with internal and external communication, incremental expenses with transportation and cleaning and hygiene service. See note no. 1.4 |
28 Net financial result
28 Net financial result | 12 Months Ended |
Dec. 31, 2020 | |
Net Financial Result | |
Net financial result | 28 Net financial result Financial revenue includes income generated by cash and cash equivalents, court deposits, and gains relating to the measurement of derivatives by fair value. Interest income is recorded for all financial assets measured by amortized cost, adopting the effective interest rate, which corresponds to the discount rate of payments or future cash receivables over the estimated useful life of financial instrument – or shorter period, where applicable – to the net carrying amount of financial asset or liability. Financial expenses substantially include all expenses generated by net debt and cost of sales of receivables during the fiscal year, the losses relating to the measurement of derivatives by fair value, the losses with sales of financial assets, financial charges over litigations, taxes, and interest expenses over financial leasing, as well as adjustments referring to discounts. For the year ended December 31, 2020 2019 2018 Restated Financial expenses Cost of debt (474 ) (247 ) (43 ) Cost and discount of receivables (31 ) (34 ) (40 ) Monetary restatement (liabilities) (11 ) (8 ) (1 ) Interest on leasing liabilities (219 ) (138 ) (113 ) Other financial expenses (51 ) (9 ) (7 ) Total Financial Expenses (786 ) (436 ) (204 ) Financial revenues Cash and cash equivalents profitability 39 57 4 Monetary restatement (assets) 299 175 80 Other financial revenues 5 4 — Total Financial Revenues 343 236 84 Total (443 ) (200 ) (120 ) |
29 Earnings per share
29 Earnings per share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Earnings per share | 29 Earnings per share The Company calculates earnings per share by dividing the net income, referring to each class of share, by total outstanding common shares during the fiscal year. At the extraordinary general shareholders´ meeting held on October 5, 2020, Sendas’ shareholders voted to approve the reverse stock split of 3,269,992,034 (three billion, two hundred and sixty-nine million, nine hundred and ninety-two thousand and thirty-four) common shares, with no par value issued by Sendas Distribuidora, in the proportion of 12.1854776946393 to 1 (one) (the “Reverse Stock Split”). Immediately following the Reverse Stock Split, capital stock of Sendas Distribuidora was represented by 268,351,567 (two hundred and sixty-eight million, three hundred and fifty-one thousand, five hundred and sixty-seven) common shares, with no par value. The table below sets forth the net income available to holders of common shares and the weighted average number of common shares outstanding used to calculate basic and diluted earnings per share in each reporting exercise: For the year ended December 31, 2020 2019 2018 Restated Basic and diluted number: Allocated basic earnings and not distributed- Continued operation 1,189 1,076 1,076 Allocated basic earnings and not distributed- Discontinued operation 209 (29 ) — Net income allocated available to common shareholders 1,398 1,047 1,076 Basic and diluted denominator (millions of shares) Weighted average of the number of shares 268 258 173 Basic and diluted earnings per million shares (R$) - Continued operations 4.43657 4.17054 6.21186 Basic and diluted earnings per million shares (R$) - Attributable to controlling shareholders 5 21642 4.05814 6.21186 |
30 Non-cash transactions
30 Non-cash transactions | 12 Months Ended |
Dec. 31, 2020 | |
Non Cash Transactions | |
Non-cash transactions | 30 Non-cash transactions The Company had transactions that did not represent cash disbursements, therefore, these were not reported in the Statement of Cash Flows, as follows: • Company’s capital increase with property, plant and equipment, in note 16; • Purchase of property, plant and equipment not yet paid, in note 16.6; and • Purchase of intangible assets not yet paid, in note 17.3. |
31 Insurance coverage
31 Insurance coverage | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of reconciliation of changes in insurance contracts by remaining coverage and incurred claims [abstract] | |
Insurance coverage | 31 Insurance coverage Insurance coverage amounts are contracted on a centralized basis to GPA, and costs are transferred to the Company. On December 31, 2020, the Company’s global insurance coverage is summarized as follows: Insured property Risks covered Amount of coverage 12/31/2020 12/31/2019 Assets and Stock Named risks 11,042 9,333 Profit Lost profit 5,416 4,675 Automobiles and others (*) Losses and damages 57 54 (*) This amount does not include hull insurance, which is 100% insured by the Economic Research Foundation Institute – FIPE table. Also, GPA has specific insurance policies for civil and directors and officer’s liability, protection and fraud risk (Crime) and damage protection risk and cyber liability (Cyber), in the amount of R$315. |
32 Segment information
32 Segment information | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of operating segments [abstract] | |
Segment information | 32 Segment information . The Company is involved in the operation of retail stores located in 20 Brazilian states and the Federal District. Operating segments are disclosed consistently with the internal report submitted to the main operating decision-maker, identified as the Chief Executive Officer. The chief operating decision-maker allocates resources and evaluates performance by reviewing results and other segment-related information. The Company deems irrelevant the disclosure of information on sales per product category, given that similar products are sold based on each business’ strategies and each segment has its own management controls. Therefore, we consider unfeasible any grouping of products for disclosure. Before the Transaction, the Company operated in two operating segments: Cash & Carry, it includes the “ASSAÍ” brand and Éxito Group. As of December 31, 2020, the Company operated in a single segment. |
33 Discontinued operation
33 Discontinued operation | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of analysis of single amount of discontinued operations [abstract] | |
Discontinued operation | 33 Discontinued operation At the Extraordinary Shareholders’ meeting held on December 31, 2020, shareholders of the Company and GPA approved the corporate restructuring proposal which consisted of the full spin-off of Éxito to GPA. Éxito is a Colombian company operating in Colombia under the banners of Éxito, Carulla, Super Inter, Surtimax, and Surtimayorista supermarkets and hypermarkets, in Argentina, under the Libertad banner, and in Uruguay under Disco and Devoto banners. Also, Éxito operates shopping malls in Colombia under the Viva banner. On December 31, 2020, Éxito’s results were classified as a discontinued operation, as one single line item. See below the detailed statement of operation of Éxito and condensed statement of cash flows: As of December 31, Statement of operations 2020 2019 Discontinued operation Net operating revenue 22,034 2,151 Cost of sales (16,526 ) (1,542 ) Gross profit 5,508 609 Expenses, net Selling expenses (2,973 ) (510 ) General and administrative expenses (848 ) 188 Depreciation and amortization (729 ) (59 ) Share of profit and loss of associates 27 (5 ) Other operating expenses, net (217 ) (33 ) (4,740 ) (419 ) Operating profit 768 190 Net financial result (340 ) (55 ) Income before income taxes discontinued operation 428 135 Income tax and social contribution (60 ) (43 ) Net income discontinued operation 368 92 Discontinued operation Net income for the year discontinued operation (1 ) — Net income for the year 367 92 As of December 31, Other comprehensive income: 2020 2019 Net income for the year 367 92 Items that may be subsequently reclassified to statement of operations Exchange rate variation of foreign Investments (415 ) (165 ) Benefit plan (1 ) — Cash flow rate (1 ) 3 Other comprehensive results 3 — Comprehensive income for the year (47 ) (70 ) As of December 31, Net cash flow: 2020 2019 Operational activities 1,349 1,343 Investment activities (4,075 ) 5,970 Financing activities (1,012 ) (4,274 ) Exchange rate variation on cash and cash equivalents 587 111 Net cash generated (3,151 ) 3,150 As of December 31, Earnings per share: 2020 2019 Diluted and Basic, discontinued operation 0.8214 0.2054 As of December 31, Discontinued operation segment: 2020 2019 Net sales 22,034 2,151 Gross profit 5,508 609 Depreciation and amortization (729 ) (59 ) Share of profit and loss of associate 27 (5 ) Operating profit 768 190 Net financial result (340 ) (55 ) Income (loss) before income taxes 428 135 Income taxes and social contribution (60 ) (43 ) Profit continued operation 368 92 Loss (income) discontinued operation (1 ) — Net income for the year 367 92 Current assets 8,014 6,560 Non-current assets 18,930 5,805 Current liabilities 9,729 7,209 Non-current liabilities 3,620 2,553 Shareholder´s equity 13,595 2,603 The operations of the Éxito Group were treated as a separate segment on December 31, 2019 and due to the discontinuity of its operations in the financial statements of December 31, 2020, the Company now operates in a single segment, as described in note 1.3 |
34 Subsequent events
34 Subsequent events | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of non-adjusting events after reporting period [abstract] | |
Subsequent events | 34 Subsequent events 34.1 Approval of second issuance of debentures On April 22, 2021, the board of directors approved the second issuance of non-convertible, unsecured debentures in up to two series, in an aggregate amount of up to R$1,200. These debentures will be offered in Brazil with restricted placement efforts in accordance with Brazilian law. The proceeds of this issuance of debentures will be used for general corporate purposes, including to reinforce our cash position. The debentures of the first series will accrue interest at a rate of CDI + 1.70% per annum, payable semi-annually through maturity, which will be five years from their issuance date. The principal amount of the debentures of the first series will be payable in two equal installments, one in 2025 and one at maturity. The debentures of the second series will accrue interest at a rate of CDI + 1.95% per annum, payable semi-annually through maturity, which will be seven years from their issuance date. The principal amount of the debentures of the second series will be payable in two equal installments, one in 2027 and one at maturity. The allocation of principal between the first and second series will be determined upon the conclusion of the book building process. This annual report does not constitute an offer to sell our second issuance of non-convertible, unsecured debentures. Offers and sales of our debentures will take place in accordance with Brazilian law pursuant to offering materials to be distributed in Brazil. 34.2 Approval of dividend distribution At the general shareholders’ meeting held on April 28, 2021, our shareholders voted to approve the minimum mandatory dividend in the aggregate amount of R$348.4 million, calculated in accordance with Brazilian Corporate Law and our bylaws, with respect to the fiscal year ended December 31, 2020. This amount corresponds to R$1.29846211682919 per common share. Of the total amount, R$263.5 million was paid on November 27, 2020 as interest on shareholders’ equity, and R$84.9 million will be payable as follows: (1) on June 7, 2021, to holders of common shares on April 28, 2021; and (2) on June 14, 2021, to holders of ADSs on April 30, 2021. The residual amount payable corresponds to R$0.31654126223623 per common share. |
3 Significant accounting poli_2
3 Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Significant Accounting Policies | |
Foreign currency transactions | 3.1 Foreign currency transactions Foreign currency transactions are initially recognized at the exchange rate of the corresponding currencies at the date the transactions qualify for recognition. Assets and liabilities denominated in foreign currencies are translated into Brazilian Reais, using the spot exchange rate at the end of each reporting period. Gains or losses on changes in exchange rate variations are recognized as financial income or expense. |
Classification of assets and liabilities as current and non-current | 3.2 Classification of assets and liabilities as current and non-current The Company presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: expected to be realized or intended to be sold or consumed within twelve months from the end of the reporting periods held primarily for the purpose of trading expected to be realized within twelve months after the reporting period or cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as non-current. A liability is current when it is: expected to be settled within twelve months from the end of the reporting periods held primarily for the purpose of trading due to be settled within twelve months after the reporting period or there is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period are classified as current liabilities. All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as “non-current” and presented net when appropriate in accordance with the provisions of IAS 12. |
Foreign operation | 3.3 Foreign operation For each entity, the Company determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. On consolidation, the financial statements of foreign operations are translated into Brazilian Reais, as follows: Assets and liabilities, including goodwill, are translated into Brazilian Reais at the exchange rate prevailing at the reporting date. The statements of operation are translated into Brazilian Reais using the average rate for the period except when significant fluctuations in the exchange rate occurs, in which case, the rate at the transaction date is used. Equity accounts are maintained at the historical balance in Reais. The exchange rate differences arising from the translation are recognized in other comprehensive income. When a foreign operation is disposed of, the component of other comprehensive income related to that particular foreign operation is reclassified to profit or loss. |
Hyperinflation | 3.4 Hyperinflation Starting from September 2018, Argentina has been considered a hyperinflationary economy. As per IAS 29 – Financial Reporting in Hyperinflationary Economies, the non-monetary assets and liabilities, equity items and the statement of operation of the indirect subsidiary Libertad, headquartered in Argentina, a direct subsidiary of Éxito, whose functional currency is the Argentinean peso, are being adjusted so that amounts are reported in the monetary measurement unit at the end of the reporting period. This unit considers the effects measured by the Consumer Price Index in Argentina starting January 1, 2017 and Argentina’s Domestic Retail Price Index up to December 31, 2016. Consequently, as required by IAS 29, the operating results of the indirect subsidiary Libertad must be considered as highly inflationary starting from September 1, 2018 (start of the period in which a hyperinflationary scenario was identified). |
Transactions between entities under common control | 3.5 Transactions between entities under common control IFRS does not provide specific guidance to account for transactions between entities under common control. The Company accounts for transactions between entities under common control with the purpose of a corporate reorganization, without economic substance, at historical cost with any resulting effect recorded in shareholders’ equity. Business combinations with economic substance are recorded following the provisions of IFRS 3, Business Combinations. |
Discontinued operations | 3.6 Discontinued operations A discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale, and: i) represents a separate major line of business or geographical area of operations; ii) is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or iii) is a subsidiary acquired exclusively with a view to resale. Discontinued operations are excluded from the results of continuing operations, being presented as a single amount in the result after taxes from discontinued operations in the statement of operations, See note 33. All other notes to the financial statements include amounts for continuing operations, unless otherwise mentioned. |
Dividends | 3.7 Dividends The distribution of dividends to the Company’s shareholders is recognized as a liability at the end of the year, based on the minimum mandatory dividends prescribed in the bylaws. Any amount exceeding this minimum is recorded only on the date on which such additional dividends are approved by the Company’s shareholders, see note 24.2. |
Cash flow, interest payments | 3.8 Cash flow, interest payments The interest payments on borrowing and finance settled by the Company are being disclosed in the financing activities and is included with payments on related borrowing and finance, and lease payment. The total of interest payment on December 31, 2020 was R$ 549 (R$ 116 on December 31, 2019 and R$ 24 on December 31, 2018). |
1 Corporate information (Tables
1 Corporate information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Corporate Information | |
Schedule of derecognition of exito subsidiary | The following is Éxito’s balance sheets as of December 31, 2020, which were derecognized in the Company’s consolidated balance sheet as a result of the Transaction described above. Upon the derecognition Éxito, which was the Company’s only subsidiary, the Company no longer presents consolidated financial statements. Notes As of December 31, 2020 (Transaction date) Current assets Cash and cash equivalents 3,687 Trade receivables 384 Other accounts receivables 220 Inventories 2,993 Recoverable taxes 570 Other current assets 130 7,984 Assets held for sale 30 Total current assets 8,014 Non-current assets Related parties 82 Restricted deposits for legal proceeding 3 Other non-current assets 171 Investments 13 480 Investment properties 15 3,639 Property, plant and equipment 16.2 10,504 Intangible assets 17 4,051 Total non-current assets 18,930 Total assets 26,944 Current liabilities Trade payable 6,449 Borrowings and financing 19.14 1,051 Payroll and related taxes 375 Lease liabilities 21.3 377 Related parties 77 Taxes and social contributions payable 288 Acquisition of non-controlling interest 636 Deferred revenues 200 Dividends payable 40 Other current liabilities 236 Total current liabilities 9,729 Non-current liabilities Borrowings and financing 19.14 520 Deferred income tax and social contribution 883 Provision for legal proceeding 20 139 Lease liabilities 21.3 2,039 Other non-current liabilities 39 Total non-current liabilities 3,620 Shareholders´ equity Total shareholders´ equity 13,595 Total Liabilities and Shareholders´ equity 26,944 |
5 Adoption of new procedures,_2
5 Adoption of new procedures, amendments to and interpretations of existing standards issued (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax And Social Contribution | |
Schedule of new standards adopted | The Company applied amendments and new interpretations to IFRS as issued by IASB, which were effective for accounting periods beginning on or after January 1, 2019. The main new standards adopted are the following: Statement Description Effective date IFRS 16 – Leases (“IFRS16”) IFRS 16 supersedes IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases-Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognize most leases on the balance sheet. Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors will continue to classify leases as either operating or finance leases using similar principles as in IAS 17. Therefore, IFRS 16 does not have an impact for leases where the Company is the lessor. See Note 5.1.1 for the impact. 01/01/2019 IFRIC 23 - Uncertainty over Income Tax treatment (“IFRIC23”) The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty. that affects the application of IAS 12 Income Taxes. It does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. See Note 5.1.2 for the impact. 01/01/2019 Amendments to IFRS 3 – Business Combinations (*) They clarify that to be considered a business, an integrated set of activities and assets must include, at a minimum, an input of resources and a substantive process that, together, contribute significantly to the ability to generate output of resources. 01/01/2020 IAS 1: Definition of material omission Aligns the definition of omission in all standards defining what information is material if its omission, distortion or obscuration can reasonably influence decisions that the main users of the general purpose financial statements make based on these financial statements, which provide financial information about a specific report of the entity. 01/01/2020 Amendments to IAS39, IFRS7 and IFRS9: Reference Interest Rate Reform The amendments to Pronouncements IAS 39, IFRS 7 and IFRS 9 provide exemptions that apply to all protection relationships directly affected by the reference interest rate reform. A protective relationship is directly affected if the reform raises uncertainties about the period or the value of cash flows based on the reference interest rate of the hedge object item or hedge instrument. 01/01/2020 Review of Conceptual Frameword Concepts and guidelines on presentation and disclosure, measurement bases, financial report objectives and useful information. 01/01/2020 Benefits provided to lessees in connection with the COVID-19 pandemic As a practical expedient, the lessee may choose not to assess whether a Covid-19 Related Benefit Granted to Lessee under a Lease Agreement is a modification of the lease. The Company does not use this practical expedient. 01/01/2020 (Published on 07/07/2020) (*) Applicable for acquisitions concluded after January 1, 2020. |
Schedule of consolidated financial statements | The adjustments arising from adoption of IFRS 16 for each period presented in the consolidated financial statements are detailed as follows: As of January 1, 2017 Balance sheet Originally apresented IFRS 16 Effects After IFRS 16 Other accounts receivable 164 (13 ) 151 Total current assets 2,447 (13 ) 2,434 Other accounts receivable 226 (25 ) 201 Deferred income tax and social contribution — 36 36 Property and equipment, net 2,111 675 2,786 Total noncurrent assets 3,299 686 3,985 Total assets 5,746 673 6,419 Borrowings and financing 2,160 (4 ) 2,156 Leasing liabilities — 54 54 Total current liabilities 2,959 50 3,009 Leasing liabilities — 693 693 Total noncurrent liabilities 458 693 1,151 Total liabilities 3,417 743 4,160 Total shareholders' equity 2,329 (70 ) 2,259 Total liabilities and shareholders' equity 5,746 673 6,419 Balance sheet As of January 1, 2018 Originally presented IFRS 16 Effects After IFRS 16 Other accounts receivable 42 (15 ) 27 Total current assets 3,107 (15 ) 3,092 Other accounts receivable 229 (36 ) 193 Deferred income tax and social contribution 1 46 47 Property and equipment, net 2,825 900 3,725 Total noncurrent assets 4,229 910 5,139 Total assets 7,336 895 8,231 Borrowings and financing 27 (5 ) 22 Lease liabilities — 65 65 Other current liabilities 72 (6 ) 66 Total current liabilities 3,327 54 3,381 Borrowings and financing 460 (9 ) 451 Lease liabilities — 944 944 Total noncurrent liabilities 891 935 1,826 Total liabilities 4,218 989 5,207 Total shareholders’ equity 3,118 (94 ) 3,024 Total liabilities and shareholders’ equity 7,336 895 8,231 Balance sheet As of December 31, 2018 Originally presented Effects IFRS 16 After IFRS 16 Other accounts receivable 64 (30 ) 34 Total current assets 4,228 (30 ) 4,198 Other accounts receivable 43 (43 ) — Property and equipment, net 3,603 1,052 4,655 Total noncurrent assets 5,726 1,009 6,735 Total assets 9,954 979 10,933 Borrowings and financing 680 (4 ) 676 Lease liabilities — 81 81 Taxes and social contributions payable 127 1 128 Other current liabilities 143 (18 ) 125 Total current liabilities 5,065 60 5,125 Borrowings and financing 107 (5 ) 102 Deferred income tax and social contribution 323 (58 ) 265 Lease liabilities — 1,099 1,099 Total noncurrent liabilities 680 1,036 1,716 Total liabilities 5,745 1,096 6,841 Total shareholders' equity 4,209 (117 ) 4,092 Total liabilities and shareholders' equity 9,954 979 10,933 Statement of operations For the year ended December 31, 2018 Originally presented IFRS 16 Effects After IFRS 16 Gross Profit 4,172 — 4,172 Expenses, net Selling expenses (2,057 ) 149 (1,908 ) General and administrative expenses (278 ) 3 (275 ) Depreciation and amortization (234 ) (79 ) (313 ) Other operating expenses, net (8 ) 5 (3 ) Operating profit before financial result 1,595 78 1,673 Net financial result (7 ) (113 ) (120 ) Earnings before income tax and social contribution 1,588 (35 ) 1,553 Income tax and social contribution (489 ) 12 (477 ) Net income for the period 1,099 (23 ) 1,076 Statement of cash flows For the year ended December 31, 2018 Originally presented IFRS 16 Effects After IFRS 16 Net income for the year 1,099 (23 ) 1,076 Deferred income tax and social contribution 188 (13 ) 175 Loss on disposal of property and equipment 39 11 50 Depreciation and amortization 244 97 341 Interest and monetary variation 47 124 171 Gain on leasing liability write-off — (15 ) (15 ) Other assets (67 ) 22 (45 ) Other liabilities 71 (8 ) 63 Payment of borrowings and financing (206 ) 5 (201 ) Leasing liabilities payments — (200 ) (200 ) |
Schedule of new standards, amendments and interpretations issued but not yet effective | The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company has not yet adopted these new and amended standards and interpretations. Accounting pronouncement Description Effective for annual periods beginning on or after Amendments to IAS1: Classification of liabilities as current and non-current Specify the requirements for classifying the liability as current or non-current. The amendments clarify: which means a right to postpone liquidation; that the right to postpone must exist on the base date of the report; that this classification is not affected by the likelihood that an entity will exercise its right to postpone; and that only if a derivative embedded in a convertible liability is itself an equity instrument would the terms of a liability not affect its classification. 01/01/2023 |
7 Cash and cash equivalents (Ta
7 Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents [abstract] | |
Schedule of cash and cash equivalents | Cash and cash equivalents comprise the bank accounts, short-term, highly liquid investments, immediately convertible into known cash amounts, and subject to an insignificant risk of change in value, with intention and possibility to be redeemed in the short term, within 90 days, as of the date of investment. As of December 31, 2020 2019 Cash and bank accounts – Brazil 64 67 Cash and bank accounts – Abroad (*) 29 3,024 Financial investments – Brazil (**) 3,439 1,810 Financial investments – Abroad (***) — 125 3,532 5,026 (*) (i) On December 31, 2020, the Company had funds held abroad, being R$24 in US dollars and R$5 in Colombian pesos; (ii) On December 31, 2019, the balance refers to funds from the Éxito Group, being R$73 in Argentina, R$254 in Uruguay and R$2,697 in Colombia. (**) On December 31, 2020, the financial investments correspond to the repurchase and resale agreements, yielded by the weighted average of 96.96% of CDI – Interbank Deposit Certificate (87.71% of CDI on December 31, 2019) and redeemable within terms less than 90 days, as of the date of investment, without losing income. (***) Refers to funds invested abroad, of which R$20 are denominated in Argentinian pesos, R$4 are denominated in Uruguayan pesos and R$101 are denominated in Colombian pesos. |
8 Trade receivables (Tables)
8 Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade Receivables | |
Schedule of trade receivables | Trade receivables are considered bad debt and, therefore, written-off from the accounts receivable portfolio, when payment is not made after 180 days of the maturity date. At the end of each reporting period, the Company assesses whether assets or groups of financial assets were impaired. As of December 31, Notes 2020 2019 Credit card companies 8.1 62 17 Credit card companies with related parties 12.1 17 10 Sales ticket and others 77 383 Trade receivables with related parties 12.1 10 21 Trade receivables with suppliers/slips 20 92 Allowance for doubtful accounts 8.2 (4 ) (32 ) 182 491 |
Schedule of allowance for doubtful accounts | 8.2 Allowance for doubtful accounts For the year ended December 31, 2020 2019 2018 At the beginning of the year (32 ) (4 ) (1 ) Additions/reversals recorded in the year (51 ) - (3 ) Decrease trade receivables 42 - - Discontinued operations 43 - - Foreign currency translation adjustment (6 ) - - Business combination - (28 ) - At the end of the year (4 ) (32 ) (4 ) |
Schedule of breakdown of trade receivable by maturity period | Set forth below the breakdown of trade receivable by their gross amount by maturity period: Overdue Total Due Less than Less than Less than > 90 days 2020 186 181 2 — — 3 2019 523 407 59 14 4 39 2018 141 127 2 — 12 — |
9 Other accounts receivable (Ta
9 Other accounts receivable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Receivables | |
Schedule of other accounts receivable | 9 Other accounts receivable As of December 31, Notes 2020 2019 Rental receivables – commercial galleries 6 71 Sales of real estate properties 9.1 22 101 Others accounts receivable – Éxito Group — 61 Others 6 10 34 243 Current 34 206 Non-current — 37 |
10 Inventories (Tables)
10 Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories Abstract | |
Schedule of inventories | Unrealized bonuses are presented as reducing the inventories at each balance sheet date. As of December 31, Notes 2020 2019 Stores 3,416 2,402 Distribution centers 10.1 374 404 Inventories - Éxito Group — 2,255 Real estate inventories - Éxito Group — 190 Allowance for losses on inventory obsolescence and damages 10.2 (51 ) (61 ) 3,739 5,190 |
Schedule of allowance for losses on inventory obsolescence and damage | 10.2 Allowance for loss on inventory obsolescence and damages For the year ended December 31, 2020 2019 2018 At the beginning of the year (61 ) (34 ) (37 ) Additions (13 ) (5 ) — Discontinued operations 28 — — Foreign currency translation adjustment (5 ) — — Business combinations — (22 ) — Write-offs — — 3 At the end of the year (51 ) (61 ) (34 ) |
11 Recoverable taxes (Tables)
11 Recoverable taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Recoverable Taxes | |
Schedule of recoverable taxes | The estimate of future recoverability of these tax credits is made based on growth projections, operational matters and the consumption of the credits in the operation. As of December 31, Notes 2020 2019 State tax credits – ICMS 11.1 1,311 1,189 Social Integration Program and Contribution for Social Security Financing - PIS/COFINS 141 353 Social Security Contribution - INSS 11.3 36 27 Income tax and social contribution 144 410 Other 2 25 Other recoverable taxes - Éxito Group — 77 Total 1,634 2,081 Current 768 1,119 Non-current 866 962 |
Schedule of ICMS balance to be recovered | For the financial statements as of December 31, 2020, the Company's management has monitoring controls over adherence to the annually established plan, reassessing and including new elements that contribute to the realization of the ICMS balance to be recovered, as shown in the table below. Year Amounts In 1 year 470 From 1 to 2 years 343 From 2 to 3 years 349 From 3 to 4 years 86 From 4 to 5 years 14 More than 5 years 49 Total 1,311 |
12 Related parties (Tables)
12 Related parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related party transactions [abstract] | |
Schedule of related party balances and transactions | 12.1 Balances and related party transactions Assets balance Liabilities balance Clients Other assets Suppliers Other liabilities 2020 2019 2020 2019 2020 2019 2020 2019 Controlling shareholder GPA — 13 168 2 — 1 41 90 Casino 10 5 — 5 — — — — 10 18 168 7 — 1 41 90 Other related parties Novasoc Comercial Ltda. — — — 4 — — — 4 Compre Bem — 2 — 11 — — — — Greenyellow — — — 10 — — — 15 Puntos Colombia — — — 29 — — — 43 Tuya — — — 26 — — — — Others — 1 — — — — — — Joint venture Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento (“FIC”) 17 10 10 10 11 16 — — 17 13 10 90 11 16 — 62 Total 27 31 178 97 11 17 41 152 Transactions Purchases Revenue (Expenses) 2020 2019 2018 2020 2019 2018 Controlling shareholder GPA — 1 7 (183 ) (162 ) (110 ) — 1 7 (183 ) (162 ) (110 ) Other related parties Compre Bem 1 13 — 3 (3 ) — Puntos Colombia — — — (114 ) (13 ) — Tuya — — — 24 21 — Greenyellow — — — (47 ) 1 — Grupo Casino — — — (19 ) 2 — Others — — — (2 ) (3 ) — 1 13 — (155 ) 5 — Total 1 14 7 (338 ) (157 ) (110 ) |
Schedule of compensation | Expenses referring to the statutory executive board compensation recorded in the Company’s statement of operations in the years ended December 31, 2020, 2019 and 2018 as follows: Base salary Variable compensation Stock options plan Total 2020 13 7 5 25 2019 15 8 6 29 2018 9 10 5 24 |
13 Investments in joint venture
13 Investments in joint venture (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments In Joint Venture | |
Schedule of company joint venture | The details of the Company's joint venture are shown below: Participation in investments - % 2020 Group Company Country Company Financeira Itaú CBD S.A. Bellamar Empreendimento e Participação S.A. Brazil 50.00 |
Schedule of summarized financial statements of joint ventures | The summarized financial statements are as follows: Bellamar 2020 Total actions– in millions 162 Percentage interest in company 50.00% Current assets 22 Non-current assets 370 Total assets 392 Bellamar 2020 Current liabilities - Non-current liabilities - Shareholders´ equity 392 Total non-current liabilities 392 Income Statements Income - Operating profit 118 Net income for the year 118 |
14. Business combination (Table
14. Business combination (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum rental payment on termination | |
Schedule of consideration transferred in the acquisition | The cash consideration has been adjusted for the dividends received related to the year of 2018 and the effect of the cash flow hedge entered into to hedge the exposure on changes in foreign exchange rates, as shown below: As of December 31, 2019 Cash consideration 9,268 Cash flow hedge effect 145 9,413 Dividends received related to 2018 (42 ) Total cash consideration transferred 9,371 |
Scheduld of fair values of identifiable assets acquired and liabilities assumed | The fair value of identifiable assets acquired and liabilities assumed from Éxito, on the acquisition date, are as follows: Fair value as of November 27, 2019 Assets Cash and cash equivalentes 6,062 Trade receivables, net 416 Inventories, net 2,765 Recoverable taxes 477 Other current assets 349 Deferred income tax and social contribution 1,353 Related parties 137 Other noncurrent assets 111 Investments in associates 316 Investment properties 2,972 Property and equipment, net 8,496 Intangible assets, net 3,009 26,463 Liabilities Payroll and related taxes 283 Trade payables, net 4,545 Taxes and contributions payable 219 Borrowings and financing 2,546 Lease liabilities 277 Other current liabilities 998 Noncurrent borrowings and financing 2,060 Deferred income tax and social contribution 2,100 Provisions for legal proceedings 103 Noncurrent –lease liabilities 1,540 Other noncurrent liabilities 28 14,699 Net assets 11,764 (-) Attribute to non-controlling interest (2,558 ) Net assets 9,206 |
Schedule of goodwill identified | The Company recorded a residual goodwill of R$165; which has been determined as follows: Fair value of net assets acquired 11,764 (-) Fair value of non-controlling interest (2,558 ) 9,206 Total consideration transferred for the acquisition of Éxito Group 9,371 Goodwill resulting from acquisition of Éxito Group 165 |
15 Investment Properties (Table
15 Investment Properties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investment property [abstract] | |
Schedule of fair value of investment properties | The fair value of investment properties is measured based on the third parties’ valuation. As of December 31, 2019 Impairm- ent Addit- ions Depreci- ation Currency translation adjustment Transf- ers Discontin- ued operation As of December 31, 2020 Land 656 (10 ) — — 149 (32 ) (763 ) — Buildings 2,385 (10 ) 6 (62 ) 555 (16 ) (2,858 ) — Construction in progress 10 — 8 — 3 (3 ) (18 ) — Total 3,051 (20 ) 14 (62 ) 707 (51 ) (3,639 ) — As of December 31, 2018 Additions Depreciation Business combinations Currency translation adjustment Transfers As of December 31, 2019 Land — 2 — 643 11 — 656 Buildings — 10 (4 ) 2,320 44 15 2,385 Construction In Progress — — — 10 — — 10 Total — 12 (4 ) 2,973 55 15 3,051 As of December 31, 2019 Historical cost Accumulated depreciation Residual value Land 656 — 656 Buildings 2,400 (15 ) 2,385 Construction in progress 10 — 10 Total 3,066 (15 ) 3,051 |
Schedule of net result generated by investment properties | During December 2019, the net result generated by investment properties owned by Éxito Group are as follows: As of December 31, 2019 Lease Revenue 31 Operating expenses related to investment properties that generate revenues (4 ) Operating expenses related to investment properties that do not generate revenues (12 ) Net revenue generated by investment properties 15 |
16 Property, plant and equipm_2
16 Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment [abstract] | |
Schedule of property and equipment | All other repair and maintenance costs are recognized in the statement of operations for the year as incurred. Asset Category Average annual depreciation rate in % Buildings 2.47 Leasehold improvements 4.15 Machinery and equipment 11.91 Facilities 6.81 Furniture and appliances 11.42 |
Schedule of property and equipment rollforward | 16.3 Property, plant and equipment rollforward As of December 31, 2019 Additions Remeasurement Write-off Depreciation Transfer and others Conversion adjustment to reporting currency Corporate restructuring (Note 1.3) Discontinued operation As of December 31, 2020 Land 2,766 61 — (32 ) — (70 ) 541 146 (2,931 ) 481 Buildings 3,829 78 — (85 ) (121 ) (139 ) 704 — (3,657 ) 609 Improvements 2,207 694 — (71 ) (189 ) 293 70 (4 ) (402 ) 2,598 Equipment 1,242 227 — (28 ) (260 ) 84 151 (1 ) (780 ) 635 Facilities 330 58 — (6 ) (32 ) (16 ) 8 — (73 ) 269 Furnitures and appliances 601 78 — (15 ) (128 ) 58 66 — (320 ) 340 Constructions in progress 140 344 — (7 ) — (318 ) 18 — (99 ) 78 Others 42 8 — — (16 ) 12 — (2 ) (7 ) 37 Subtotal 11,157 1,548 — (244 ) (746 ) (96 ) 1,558 139 (8,269 ) 5,047 Lease - right of use: Buildings 3,449 1,217 628 (588 ) (501 ) 2 403 (4 ) (2,183 ) 2,423 Equipment 43 23 (7 ) (1 ) (15 ) 3 9 — (49 ) 6 Land 3 — — — — — — — (3 ) — Subtotal 3,495 1,240 621 (589 ) (516 ) 5 412 (4 ) (2,235 ) 2,429 Total 14,652 2,788 621 (833 ) (1,262 ) (91 ) 1,970 135 (10,504 ) 7,47 As of December 31, 2018 Additions Purchase Partnership Remeasurement Write-off Depreciation Transfer and others Currency translation adjustment As of December 31, 2019 Land 348 76 2,277 — — — 25 40 2,766 Buildings 583 231 2,935 — — (25 ) 56 49 3,829 Improvements 1,733 553 334 — (302 ) (123 ) 12 — 2,207 Equipment 416 232 672 — (20 ) (93 ) 25 10 1,242 Facilities 221 66 64 — (1 ) (20 ) 2 (2 ) 330 Furnitures and appliances 226 81 300 — (8 ) (40 ) 36 6 601 Constructions in progress 39 69 154 — (3 ) — (122 ) 3 140 Others 29 4 6 — — (11 ) 14 — 42 Subtotal 3,595 1,312 6,742 — (334 ) (312 ) 48 106 11,157 Lease - right of use: Buildings 1,053 670 1,727 138 (28 ) (140 ) (3 ) 32 3,449 Equipment 7 15 25 — — (5 ) (1 ) 2 43 Land — — 3 — — — — — 3 Subtotal 1,060 685 1,755 138 (28 ) (145 ) (4 ) 34 3,495 Total 4,655 1,997 8,497 138 (362 ) (457 ) 44 140 14,652 As of January 1, 2018 Additions Remeasurement Write-off Depreciation Transfers and others (*) As of December 31, 2018 Land 261 45 — — — 42 348 Buildings 437 170 — (3 ) (13 ) (8 ) 583 Improvements 1,346 421 — (30 ) (95 ) 91 1,733 Equipment 351 142 — (8 ) (69 ) — 416 Facilities 178 57 — (3 ) (15 ) 4 221 Furniture and appliances 169 79 — (5 ) (26 ) 9 226 Constructions in progress 43 52 — (12 ) — (44 ) 39 Others 28 11 — — (10 ) — 29 Subtotal 2,813 977 — (61 ) (228 ) 94 3,595 Lease – right of use: Buildings 901 210 52 (13 ) (97 ) — 1,053 Equipment 11 — — — (4 ) — 7 Subtotal 912 210 52 (13 ) (101 ) — 1,060 Total 3,725 1,187 52 (74 ) (329 ) 94 4,655 |
Schedule of property plant breakdown | 16.4 Breakdown As of December 31, 2020 2019 Historical cost Accumulated depreciation Net amount Historical cost Accumulated depreciation Net amount Land 481 — 481 2,766 — 2,766 Buildings 704 (95 ) 609 4,034 (205 ) 3,829 Improvements 3,203 (605 ) 2,598 3,023 (816 ) 2,207 Equipment 1,061 (426 ) 635 2,326 (1,084 ) 1,242 Facilities 354 (85 ) 269 477 (147 ) 330 Furniture and appliances 513 (173 ) 340 1,163 (562 ) 601 Construction in progress 78 — 78 140 — 140 Others 101 (64 ) 37 110 (68 ) 42 6,495 (1,448 ) 5,047 14,039 (2,882 ) 11,157 Finance lease — — Buildings 3,205 (782 ) 2,423 4,198 (749 ) 3,449 Equipment 47 (41 ) 6 92 (49 ) 43 Land — — — 6 (3 ) 3 3,252 (823 ) 2,429 4,296 (801 ) 3,495 Total Property plant and equipment 9,747 (2,271 ) 7,476 18,335 (3,683 ) 14,652 |
Schedule of additions to property and equipment for cash flow presentation | 16.7 Additions to property, plant and equipment for cash flow presentation purpose are as follows: 2020 2019 2018 Additions 2,788 1,997 1,187 Leases (1,241 ) (685 ) (210 ) Capitalized interest (12 ) (11 ) (12 ) Financing of property, plant and equipment – Additions (i) (1,437 ) (1,217 ) (921 ) Financing of property, plant and equipment – Payments (ii) 1,464 1,273 863 Total 1,562 1,357 907 (i) Additions relate to the acquisition of operating assets, purchase of land and buildings to expansion activities, building of new stores, improvements of existing distribution centers and stores and investments in equipment and information technology. (ii) The additions to property, plant and equipment above are presented to reconcile the acquisitions during the year with the amounts presented in the statement of cash flows net of items that did not impact cash flow. |
17 Intangible Assets (Tables)
17 Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets and goodwill [abstract] | |
Schedule of intangible assets | When applicable, gains or losses arising from the derecognition of an intangible asset are measured as the difference between the net proceeds from the sale of the asset and its carrying amount, any gain or loss is recognized in the statement of poperations in the year the asset is derecognized. As of December 31, 2019 Additions Amortizations Write-off Conversion adjustment to reporting currency Transfers Discontinued operation As of December 31, 2020 Goodwill 785 — — — 38 1 (208 ) 616 Softwares 135 72 (40 ) (1 ) 20 — (115 ) 71 Commercial rights 314 6 (8 ) — (1 ) — — 311 Tradename 3,054 — — — 713 — (3,728 ) 39 4,288 78 (48 ) (1 ) 770 1 (4,051 ) 1,037 As of December 31, 2017 Additions Amortizations Transfer (*) As of December 31, 2018 Additions Business combination Amortizations Exchange rate changes As of December, 31, 2019 Goodwill 618 — -2 — 616 — 165 — 4 785 Software 51 17 (10 ) 3 61 28 60 (15 ) 1 135 Commercial rights 41 24 — 232 297 24 1 (8 ) — 314 Tradename 39 — — — 39 — 2,949 — 66 3,054 749 41 (12 ) 235 1,013 52 3,175 (23 ) 71 4,288 |
18 Trade payables,net (Tables)
18 Trade payables,net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade and other payables [abstract] | |
Schedule of trade payables, net | As of December 31, Notes 2020 2019 Product suppliers 5,450 9,607 Service providers 96 573 Bonuses from suppliers 18.2 (488 ) (410 ) Total 5,058 9,770 |
19 Financial instruments (Table
19 Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about financial instruments [abstract] | |
Schedule of financial instruments and their carrying amounts | The main financial instruments and their carrying amounts, by category, are as follows: Carrying amounts Notes 2020 2019 Financial assets Amortized cost Related parties - assets 12 178 97 Accounts receivable and other accounts receivable 8 and 9 117 686 Other assets 51 Fair value through income Cash and cash equivalents 7 3,532 5,026 Financial instruments - fair value hedge- long position 19 68 40 Other assets 2 Fair value through other comprehensive income Accounts receivable with credit card companies and sales tickets 8 99 48 Other assets 0 — 19 Financial liabilities Other financial liabilities - amortized cost Related parties - liabilities 12 (41 ) (152 ) Trade payables 18 (5,058 ) (9,770 ) Financing through acquisition of assets (34 ) (101 ) Borrowings and financing 19.13 (897 ) (843 ) Debentures 19.13 (6,599 ) (7,883 ) Lease liabilities 21.2 (2,776 ) (3,751 ) Fair value through income Borrowings and financing, including derivatives 19.13 (335 ) (84 ) Financial instruments - Fair value hedge - short position — (11 ) Financial instruments on suppliers - Fair value hedge – Short — (8 ) Grupo Disco put option 19.10 — (466 ) Net exposure (11,746 ) (17,100 ) |
Schedule of capital structure | The Company’s capital structure is as follows: As of December 31, 2020 2019 Borrowings and financing (7,831 ) (8,821 ) (-) Cash and cash equivalents 3,532 5,026 (-) Derivative financial instruments 68 40 Net debt (4,231 ) (3,755 ) Shareholders´ equity (1,347 ) (9,701 ) % Net debt over shareholders´ equity 314 % 39 % |
Schedule of aging profile of financial liabilities | The table below summarizes the aging profile of the Company’s financial liabilities as of December 31, 2020. Less than 1 year 1 to 5 years More than 5 years Total Borrowings and financing 318 1,037 18 1,373 Debentures 2,018 5,392 — 7,410 Derivative financial instruments (61 ) (11 ) (2 ) (74 ) Lease liabilities 423 1,918 2,913 5,254 Trade payable 5,058 — — 5,058 Total 7,756 8,336 2,929 19,021 |
Schedule of hedge position | For derivative transactions that qualify as hedge accounting, the debt which is the hedged item, is also adjusted at fair value. Notional value Fair value 2020 2019 2020 2019 Swap with hedge accounting Hedge purpose (debt) 301 750 335 84 Long positions Fixed rate 301 95 11 84 USD + Fixed 106 655 57 — Short positions (407 ) (698 ) — (73 ) Net hedge position — 52 68 11 |
Schedule of net exposure of derivative financial instruments | The Company disclosed the net exposure of derivative financial instruments, each of the scenarios mentioned above in the sensitivity analysis as follows: Market projections Transactions Risk Balance at 2020 Scenario (I) Scenario (II) Scenario (III) Borrowings and Financing CDI + 3.58 per year (910 ) (937 ) (944 ) (951 ) Fixed rate swap contract (short position) CDI + 0.04 per year (62 ) (176 ) (179 ) (182 ) Foreign exchange swap contract (short position) CDI +0.59 per year (206 ) (210 ) (212 ) (214 ) Debentures CDI + 2.07 per year (6,573 ) (6,763 ) (6,811 ) (6,858 ) Total net effect (loss) (7,751 ) (8,086 ) (8,146 ) (8,205 ) Cash equivalents 96.96% of CDI 3,532 3,611 3,630 3,650 Net exposure (loss): (4,219 ) (4,475 ) (4,516 ) (4,555 ) Net effect (loss): (256 ) (297 ) (336) |
Schedule of fair value hierarchy of financial assets and liabilities | The table below sets forth the fair value hierarchy of financial assets and liabilities measured at fair value of financial instruments measured at amortized cost, for which the fair value has been disclosed in the consolidated financial statements: Carrying amount Fair value 2020 2019 2020 2019 Level (*) Trade receivables with credit cards 99 48 99 48 2 Swaps of annual rates between currencies 57 — 57 — 2 Interest rate swaps 11 40 11 10 2 Loans and financing (fair value) (335 ) (95 ) (335 ) (84 ) 2 Loans and financing (amortized cost) (7,496 ) (8,726 ) (6,529 ) (8,056 ) 2 Grupo Disco put option (*) — (466 ) — (466 ) 3 (7,664 ) (9,199 ) (6,697 ) (8,548 ) (*) Non-controlling shareholders of Group Disco del Uruguay S.A., Éxito’s subsidiary have an exercisable put option based on a formula that uses data such as net income, EBITDA - earnings before interest, taxes, depreciation and amortization - and net debt, in addition to fixed amounts determined in the contract and the exchange variation applicable for conversion to the functional currency. This put option is presented in “Acquisition of non-controlling interest”. |
Schedule of consolidated position of outstanding derivative transactions | The outstanding derivative financial instruments are presented in the table below: As of December 31, Description Risk Notional (millions) Due date 2020 2019 Debt USD – BRL US$ 50 2021 57 — Currency swaps registered at the Clearing House for the Custody and Financial Settlement of Securities - CETIP Interest rate swaps registered at CETIP Fixed rate x CDI R$ 54 2027 5 5 Fixed rate x CDI R$ 52 2027 6 5 Derivatives - Fair value hedge - Brazil 68 10 Debt USD – COP — 2020 — 20 USD – COP US$ 2 2022 — 1 Interest rate - COP COP 49,950 2020 — (1 ) Interest rate - COP COP 383,235 2021 — (1 ) Suppliers USD – COP USD 24 2020 — (8 ) Derivatives - Éxito Group — 11 |
Schedule of debt weighted average | As of December 31, Weighted average rate 2020 2019 Current Debentures and promissory notes Debentures CDI + 2.44 per year 1,864 1,189 Borrowing costs (24 ) (33 ) 1,840 1,156 Borrowing and financing in domestic currency BNDES 3.72% per year — 7 Working capital TR + 9.80% 12 14 Working capital CDI + 1.97 per year 9 — Borrowing costs (5 ) (3 ) Total domestic currency 16 18 In foreign currency Working capital USD + 2.35% per year 264 287 Swap contracts CDI +0.59 per year (57 ) — Swap contracts IBR 3M+3.7% — (18 ) Total foreign currency 207 269 Total current 2,063 1,443 As of December 31, Weighted average rate 2020 2019 Non-current Debentures and promissory notes Debentures CDI + 2.44 per year 4,780 6,773 Borrowing costs (21 ) (46 ) 4,759 6,727 Borrowings and financing domestic currency BNDES 4.31% per year — 16 Working capital TR + 9.80% 60 70 Working capital CDI + 1.97 per year 901 500 Swap contracts CDI + 0.04 per year (11 ) (10 ) Borrowing costs (9 ) (10 ) Total domestic currency 941 566 In foreign currency Working capital IBR 3M+3.7% — 46 Borrowing costs — (1 ) Total foreign currency — 45 Total non-current 5,700 7,338 Total 7,763 8,781 Current assets 57 29 Non-current assets 11 11 Current liabilities 2,120 1,472 Non-current liabilities 5,711 7,349 |
Schedule of rollforward of financial instruments | Amounts Balance as of January 1, 2018 471 Additions 417 Accrued interest 30 Swap contracts (50 ) Mark-to-Market 10 Exchange rate and monetary variation 63 Interest amortization (24 ) Principal amortization (175 ) Swap amortization (7 ) IFRS 16 - related adjustment (9 ) Balance as of December 31, 2018 726 Funding - working capital 9,395 Interest provision 246 Swap contracts (16 ) Mark-to-market (46 ) Exchange rate and monetary variation (29 ) Borrowing costs 21 Interest amortization (116 ) Principal amortization (6,102 ) Swap amortization 95 Swap amortization 4,527 Conversion adjustment to reporting currency 80 Balance as of December 31, 2019 8,781 Funding - working capital 2,852 Interest provision 486 Swap contracts (60 ) Mark-to-market 12 Exchange rate and monetary variation 57 Debt modification impact 71 Borrowing costs 42 Interest amortization (549 ) Principal amortization (2,543 ) Swap amortization 13 Conversion adjustment to reporting currency 172 Discontinued operations (1,571 ) Balance as of December 31, 2020 7,763 |
Schedule of noncurrent maturities | Maturity Amounts From 1 to 2 years 2,484 From 2 to 3 years 2,790 From 3 to 4 years 224 From 4 to 5 years 224 More than 5 years 8 Total 5,730 Borrowing Cost (30 ) Total 5,700 |
Schedule of debentures and promissory notes | Data As of December 31, Type Issue amount Outstanding Debentures (units) Issuance Maturity Annual financial charges Unit price (in Reais) 2020 2019 First Issue of Promissory Notes - 1st series non-preemptive right 50 1 7/4/2019 7/3/2020 CDI + 0.72% per year — — 52 First Issue of Promissory Notes - 2nd series non-preemptive right 50 1 7/4/2019 7/5/2021 CDI + 0.72% per year 52,998,286 53 52 First Issue of Promissory Notes - 3rd series non-preemptive right 50 1 7/4/2019 7/4/2022 CDI + 0.72% per year 52,998,286 53 52 First Issue of Promissory Notes - 4th series non-preemptive right 250 5 7/4/2019 7/4/2023 CDI + 0.72% per year 52,998,286 267 258 First Issue of Promissory Notes - 5th series non-preemptive right 200 4 7/4/2019 7/4/2024 CDI + 0.72% per year 52,998,286 214 206 First Issue of Promissory Notes - 6th series non-preemptive right 200 4 7/4/2019 7/4/2025 CDI + 0.72% per year 52,998,286 213 206 First Issue of Debentures- 1st series non-preemptive right 2,000 200,000 9/4/2019 8/20/2020 CDI + 1.60% per year — — 1,001 First Issue of Debentures - 2nd series non-preemptive right 2,000 200,000 9/4/2019 8/20/2021 CDI + 1.74% per year 876 1,762 2,044 First Issue of Debentures - 3rd series non-preemptive right 2,000 200,000 9/4/2019 8/20/2022 CDI + 1.95% per year 1,004 2,033 2,045 First Issue of Debentures - 4th series non-preemptive right 2,000 200,000 9/4/2019 8/20/2023 CDI + 2.20% per year 1,005 2,049 2,046 Borrowing Cost (45 ) (79 ) 6,599 7,883 Current liabilities 1,840 1,156 Non-current liabilities 4,759 6,727 |
20 Provision for legal procee_2
20 Provision for legal proceedings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Provision For Legal Proceedings | |
Schedule of provision for contingencies | The provision for legal proceeding is estimated by the Company and supported by its legal counsel, for an amount considered sufficient to cover probable losses. Tax claims Social security and labor Civil Total Balance as of December 31, 2019 221 75 53 349 Additions 27 42 79 148 Reversals (9 ) (43 ) (19 ) (71 ) Payments (1 ) (5 ) (35 ) (41 ) Monetary correction 1 8 3 12 Conversion adjustment to reporting currency 18 2 4 24 Discontinued operation (88 ) (16 ) (35 ) (139 ) Balance as of December 31, 2020 169 63 50 282 - Tax claims Social security and labor Civil Total Balance as of December 31, 2018 147 53 36 236 Additions 16 12 13 41 Reversals (10 ) (8 ) (4 ) (22 ) Payments (13 ) (2 ) (7 ) (22 ) Monetary correction 3 7 1 11 Business combinations 76 13 14 103 Exchange rate changes 2 — — 2 Balance as of December 31, 2019 221 75 53 349 Tax claims Social security and labor Civil Total Balance as of December 31, 2017 199 52 33 284 Additions 2 8 10 20 Reversals (49 ) (11 ) (6 ) (66 ) Payments — (2 ) (4 ) (6 ) Monetary correction (5 ) 6 3 4 Balance as of December 31, 2018 147 53 36 236 |
Schedule of guarantees | Lawsuits Real properties Letter of guarantees Total Tax 18 290 308 Labor — 101 101 Civil and others — 21 21 Total 18 412 430 |
Schedule of judicial deposits | The Company recorded amounts referring to judicial deposits in its assets as follows. As of December 31, Lawsuits 2020 2019 Tax 64 69 Labor 67 43 Civil and others 3 9 Total 134 121 |
21 Leases (Tables)
21 Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Schedule of minimum rental payment | The minimum future payments as leases, by leases term and with the fair value of minimum lease payments, are as follows: As of December 31, 2020 2019 Financial lease liabilities - minimum payments Less than 1 year 172 404 1 to 5 years 866 1,323 More than 5 years 1,738 2,024 Present value of financial lease agreements 2,776 3,751 Future financing charges 2,478 2,347 Gross amount of financial lease agreements 5,254 6,098 PIS and COFINS embedded in the present value of lease agreements 169 115 PIS and COFINS embedded in the gross value of lease agreements 319 214 |
Schedule of lease obligation rollforward | Amounts As of January 1, 2018 1,009 Funding – Lease 210 Remeasurement 52 Interest provision 124 Amortizations (216) Exchange rate and monetary variation 1 As of December 31, 2018 1,180 Funding – Lease 682 Remeasurement 138 Interest provision 170 Amortizations (267) Write-off due to early termination of agreement (1) Company acquisition 1,817 Conversion currency adjustment 32 As of December 31, 2019 3,751 Funding – Lease 1,240 Remeasurement 621 Interest provision 415 Exchange rate and monetary variation 1 Amortizations (756) Write-off due to early termination of agreement (518) Transfer to parent company 9 Conversion currency adjustment 433 Discontinued operation (2,416) Corporate restructuring (4) As of December 31, 2020 2,776 Current 172 Non-current 2,604 |
Schedule of lease expense | As of December 31, 2020 2019 Expenses (revenues) for the period: Variables (0.5% e 1.6% of sales) 16 19 Subleases (*) 22 20 (*) Refers mainly to revenue from lease agreements receivable from commercial galleries. |
22 Deferred revenue (Tables)
22 Deferred revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deferred Revenues | |
Schedule of liabilities related to assets held to sale | Deferred revenues are recognized by the Company as a liability due to anticipation of amounts received from business partners. These are recognized in the statement of operations in the periods when the services are rendered to these business partners. As of December 31, 2020 2019 Rental of spaces in stores 186 132 Checkstand 29 20 Gift card 2 95 Revenue with credit card operators — 15 Deferred revenues - Éxito Group — 8 Others 11 9 Total 228 279 Current 227 277 Non-current 1 2 |
23 Income tax and social cont_2
23 Income tax and social contribution (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax And Social Contribution Abstract | |
Schedule of reconciliation of income and social contribution tax expense | For the year ended December 31, 2020 2019 2018 Restated Earnings before income tax and social contribution 1,625 1,502 1,553 Expense of income tax and social contribution (553 ) (511 ) (528 ) Adjustments to reflect the effective rate Tax fines (1 ) (2 ) (1 ) Share of profit 105 84 39 Tax benefits 29 — — Other permanent differences (16 ) 3 13 Effective income tax (436 ) (426 ) (477 ) Income tax and social contribution for the year Current (704 ) (293 ) (302 ) Deferred 268 (133 ) (175 ) Income tax and social contribution expenses (436 ) (426 ) (477 ) Effective rate 26.8 % 28.4 % 30.7 % |
Schedule of breakdown of deferred income tax and social contribution | Key components of deferred income tax and social contribution in the balance sheets are the following: As of December 31, 2020 2019 Assets Liabilities Net Assets Liabilities Net Deferred income tax and social contribution Tax losses — — — 253 — 253 Provision for legal proceedings 81 — 81 106 — 106 Exchange rate variation 26 — 26 31 — 31 Goodwill tax amortization — (315 ) (315 ) — (480 ) (480 ) Mark-to-market adjustment — (2 ) (2 ) — (3 ) (3 ) Property, plant and equipment, intangible and investment properties 20 — 20 — (1,217 ) (1,217 ) Unrealized gains with tax credits — (60 ) (60 ) — (130 ) (130 ) Cash flow hedge — (20 ) (20 ) — (78 ) (78 ) Lease net of right of use 131 — 131 105 — 105 Presumed tax on equity – Éxito Group — — — 192 — 192 Others 57 — 57 30 — 30 Gross deferred income tax and social contribution assets (liabilities) 315 (397 ) (82 ) 717 (1,908 ) (1,191 ) Compensation (315 ) 315 — (717 ) 717 — Net deferred income tax and social contribution assets (liabilities) — (82 ) (82 ) — (1,191 ) (1,191 ) |
Schedule of recovery of deferred tax assets | The Company estimates the recovery of the deferred tax assets as of December 31, 2020 as follows: Years Amounts Up to one year 69 From 2 years 246 315 |
Schedule of changes in deferred income tax and social contribution | For the year ended December 31, 2020 2019 2018 At the beginning of the year (1,191 ) (265 ) (136 ) Benefits (expenses) in the year 372 (162 ) (175 ) Corporate reorganization 45 — — Deconsolidation 883 — — Purchase partnership — (747 ) — Conversion currency adjustment — (18 ) — Exchange variation (193 ) — — IFRS 16 – related adjustment — — 46 Other 2 1 — At the end of the year (82 ) (1,191 ) (265 ) |
24 Shareholders' equity (Tables
24 Shareholders' equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement of changes in equity [abstract] | |
Schedule of dividends proposed | Management proposed dividends to be distributed, considering the anticipation of interest on equity to its shareholders, calculated as follows: For the year ended December 31, 2020 2019 2018 Net income for the year 1,398 1,047 1,076 % Legal reserve 5 % 5 % 5 % Legal reserve for the year 5 52 55 Minimum mandatory dividends - 25% 349 1 1 Interest on capital paid intermediaries 264 247 115 Minimum mandatory dividends paid in the form of interest on shareholder´s equity 85 1 1 |
Schedule of dilutive effect on options granted | The table below sets forth the dilutive effect if all options granted were exercised: 2020 2019 Number of shares 268,352 267,997 Balance of effective stock options granted in force 1,468 2,153 Maximum percentage of dilution 0.55 % 0.80 % |
Schedule of weighted average fair value of options granted | The weighted average fair value of options granted on December 31, 2020 was R$58.78 (R$56.41 at December 31, 2019). Shares Weighted average exercise price Weighted average remaining term At December 31, 2018 Granted in the year 1,378 30.91 Canceled in the year (229 ) 38.64 Exercised in the year (697 ) 31.96 Expired in the year (236 ) 68.62 Open at year end 2,755 26.03 1.37 Total exercised on December 31, 2018 2,755 26.03 1.37 At December 31, 2019 Granted in the year 765 30.55 — Canceled in the year (126 ) 31.75 Exercised in the year (1,080 ) 21.55 — Expired in the year (161 ) 16.74 Open at year end 2,153 30.25 1.50 Total exercised on December 31, 2019 2,153 30.25 1.50 At December 31, 2020 Canceled in the year (70 ) 42.59 — Exercised in the year (489 ) 23.93 Expired in the year (126 ) 42.44 — Open at year end 1,468 30.71 0.88 Total exercised on December 31, 2020 1,468 30.71 0.88 |
25 Net operating revenue (Table
25 Net operating revenue (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue [abstract] | |
Schedule of net operating revenue | Since the Company sells mobile phone credits recharge at its stores, revenues earned are stated on a net basis and recognized in the statement of operations when it is probable that economic benefits will flow to the Company subsidiary, and their amounts can be reliably measured. For the year ended December 31, 2020 2019 2018 Restated Gross operating revenue Goods 39,436 30,487 25,075 Services rendered and others 100 87 17 39,536 30,574 25,092 (-) Revenue deductions Returns and sales cancellation (73 ) (57 ) (49 ) Taxes (3,420 ) (2,435 ) (2,026 ) (3,493 ) (2,492 ) (2,075 ) Net operating revenue 36,043 28,082 23,017 |
26 Expenses by nature (Tables)
26 Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Expenses by nature [abstract] | |
Schedule of expenses by nature | General and administrative expenses correspond to indirect expenses and the cost of corporate units, including procurement and supplies, information technology, and financial activities. For the year ended December 31, 2020 2019 2018 Restated Cost of inventories (29,641 ) (22,929 ) (18,412 ) Personnel expenses (2,135 ) (1,691 ) (1,376 ) Outsourced services (224 ) (198 ) (152 ) Selling expenses (511 ) (408 ) (331 ) Functional expenses (600 ) (546 ) (615 ) Other expenses (264 ) (202 ) (142 ) (33,375 ) (25,974 ) (21,028 ) Cost of sales (30,129 ) (23,349 ) (18,845 ) Selling expenses (2,811 ) (2,273 ) (1,908 ) General and administrative expenses (435 ) (352 ) (275 ) (33,375 ) (25,974 ) (21,028) |
27 Other operating expenses, _2
27 Other operating expenses, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Operating Expenses Net | |
Schedule of other operating expenses, net | Other operating revenue and expenses correspond to the effects of significant or non-recurring events during the fiscal year not classified into the definition of other items of the statement of operations. For the year ended December 31, 2020 2019 2018 Restated Result with property, plant and equipment (*) ( 42 ) 5 (39 ) Reversal (provision) for legal proceedings (18 ) (53 ) 40 Restructuring expenses ( 71 ) 37 — Covid-19 spending on prevention (**) ( 134 ) — — Indemnity assets 168 — Other — — (4 ) Total (97 ) (11 ) (3 ) (*) The result from fixed assets was mainly impacted by the Sale and Leaseback operations described in note 1.5, whose gain totaled R$52, which was offset by the losses of write off incurred in the year. (**) The expenses incurred as a result of the COVID-19 pandemic refer to the purchase of items of individual protection and adequacy of the stores, expenses with overtime, expenses with internal and external communication, incremental expenses with transportation and cleaning and hygiene service. See note no. 1.4 |
28 Net financial result (Tables
28 Net financial result (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Net Financial Result Tables Abstract | |
Schedule of net financial result | Financial expenses substantially include all expenses generated by net debt and cost of sales of receivables during the fiscal year, the losses relating to the measurement of derivatives by fair value, the losses with sales of financial assets, financial charges over litigations, taxes, and interest expenses over financial leasing, as well as adjustments referring to discounts. For the year ended December 31, 2020 2019 2018 Restated Financial expenses Cost of debt (474 ) (247 ) (43 ) Cost and discount of receivables (31 ) (34 ) (40 ) Monetary restatement (liabilities) (11 ) (8 ) (1 ) Interest on leasing liabilities (219 ) (138 ) (113 ) Other financial expenses (51 ) (9 ) (7 ) Total Financial Expenses (786 ) (436 ) (204 ) Financial revenues Cash and cash equivalents profitability 39 57 4 Monetary restatement (assets) 299 175 80 Other financial revenues 5 4 — Total Financial Revenues 343 236 84 Total (443 ) (200 ) (120 ) |
29 Earnings per share (Tables)
29 Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share [abstract] | |
Schedule of earnings per share | The table below presents the determination of net income available to holders of common shares and the weighted average number of common shares outstanding used to calculate basic and diluted earnings per share in each reporting exercise: For the year ended December 31, 2020 2019 2018 Restated Basic and diluted number: Allocated basic earnings and not distributed- Continued operation 1,189 1,076 1,076 Allocated basic earnings and not distributed- Discontinued operation 209 (29 ) — Net income allocated available to common shareholders 1,398 1,047 1,076 Basic and diluted denominator (millions of shares) Weighted average of the number of shares 268 258 173 Basic and diluted earnings per million shares (R$) Continued operations 4.43657 4.17054 6.21186 Basic and diluted earnings per million shares (R$) - Attributable to controlling shareholders 5.21642 4.05814 6.21186 |
31 Insurance coverage (Tables)
31 Insurance coverage (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of reconciliation of changes in insurance contracts by remaining coverage and incurred claims [abstract] | |
Schedule of insurance coverage | On December 31, 2020, the Company’s global insurance coverage is summarized as follows: Insured property Risks covered Amount of coverage 12/31/2020 12/31/2019 Assets and Stock Named risks 11,042 9,333 Profit Lost profit 5,416 4,675 Automobiles and others (*) Losses and damages 57 54 (*) This amount does not include hull insurance, which is 100% insured by the Economic Research Foundation Institute – FIPE table. |
33. Discontinued operation (Tab
33. Discontinued operation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of analysis of single amount of discontinued operations [abstract] | |
Schedule of discontinued operation | On December 31, 2020, Éxito’s results were classified as a discontinued operation, as one single line item. See below the detailed statement of operation of Éxito and condensed statement of cash flows: As of December 31, Statement of operations 2020 2019 Discontinued operation Net operating revenue 22,034 2,151 Cost of sales (16,526 ) (1,542 ) Gross profit 5,508 609 Expenses, net Selling expenses (2,973 ) (510 ) General and administrative expenses (848 ) 188 Depreciation and amortization (729 ) (59 ) Share of profit and loss of associates 27 (5 ) Other operating expenses, net (217 ) (33 ) (4,740 ) (419 ) Operating profit 768 190 Net financial result (340 ) (55 ) Income before income taxes discontinued operation 428 135 Income tax and social contribution (60 ) (43 ) Net income discontinued operation 368 92 Discontinued operation Net income for the year discontinued operation (1 ) — Net income for the year 367 92 As of December 31, Other comprehensive income: 2020 2019 Net income for the year 367 92 Items that may be subsequently reclassified to statement of operations Exchange rate variation of foreign Investments (415 ) (165 ) Benefit plan (1 ) — Cash flow rate (1 ) 3 Other comprehensive results 3 — Comprehensive income for the year (47 ) (70 ) As of December 31, Net cash flow: 2020 2019 Operational activities 1,349 1,343 Investment activities (4,075 ) 5,970 Financing activities (1,012 ) (4,274 ) Exchange rate variation on cash and cash equivalents 587 111 Net cash generated (3,151 ) 3,150 As of December 31, Earnings per share: 2020 2019 Diluted and Basic, discontinued operation 0.8214 0.2054 As of December 31, Discontinued operation segment: 2020 2019 Net sales 22,034 2,151 Gross profit 5,508 609 Depreciation and amortization (729 ) (59 ) Share of profit and loss of associate 27 (5 ) Operating profit 768 190 Net financial result (340 ) (55 ) Income (loss) before income taxes 428 135 Income taxes and social contribution (60 ) (43 ) Profit continued operation 368 92 Loss (income) discontinued operation (1 ) — Net income for the year 367 92 Current assets 8,014 6,560 Non-current assets 18,930 5,805 Current liabilities 9,729 7,209 Non-current liabilities 3,620 2,553 Shareholder´s equity 13,595 2,603 |
1 Corporate information (Detail
1 Corporate information (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 11, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | |||||
Cash and cash equivalents | R$ 3532 | R$ 5026 | |||
Trade receivables | 182 | 491 | |||
Other accounts receivables | 34 | 206 | |||
Inventories | 3,739 | 5,190 | |||
Recoverable taxes | 768 | 1,119 | |||
Other current assets | 37 | 169 | |||
Assets held for sale | 8,349 | 12,230 | |||
Total current assets | 8,349 | 12,282 | |||
Non-current assets | |||||
Related parties | 178 | 97 | |||
Restricted deposits for legal proceedings | 134 | 121 | |||
Other non-current assets | 1 | 84 | |||
Investments | 769 | 320 | |||
Investment properties | 3,051 | ||||
Property, plant and equipment | 7,476 | 14,652 | R$ 4655 | R$ 3725 | |
Intangible assets | 1,037 | 4,288 | R$ 1013 | 749 | |
Total non-current assets | 10,472 | 23,623 | |||
Total assets | 18,821 | 35,905 | |||
Current liabilities | |||||
Trade payables, net | 5,058 | 9,770 | |||
Borrowings and financing | 280 | 316 | |||
Payroll and related taxes | 371 | 572 | |||
Lease liabilities | 172 | 404 | |||
Related parties | 41 | 152 | |||
Taxes and social contributions payable | 104 | 327 | |||
Acquisition of non-controlling interest | 466 | ||||
Deferred revenue | 227 | 277 | |||
Dividends payable | 85 | 11 | R$ 50 | ||
Total current liabilities | 8,786 | 13,930 | |||
Non-current liabilities | |||||
Borrowings and financing | 952 | 622 | |||
Deferred income tax and social contribution | 82 | 1,191 | |||
Provision for legal proceeding | 282 | 349 | |||
Lease liabilities | 2,604 | 3,347 | |||
Other non-current liabilities | 8 | 36 | |||
Total non-current liabilities | 8,688 | 12,274 | |||
Shareholders' equity | |||||
Total shareholders' equity | 1,347 | 9,701 | R$ 3024 | ||
Total liabilities and shareholders' equity | 18,821 | R$ 35905 | |||
Almacenes Exito S.A. [Member] | |||||
Current assets | |||||
Cash and cash equivalents | 3,687 | ||||
Trade receivables | 384 | ||||
Other accounts receivables | 220 | ||||
Inventories | 2,993 | ||||
Recoverable taxes | 570 | ||||
Other current assets | 130 | ||||
Current assets before assets held for sale | 7,984 | ||||
Assets held for sale | 30 | ||||
Total current assets | 8,014 | ||||
Non-current assets | |||||
Related parties | 82 | ||||
Restricted deposits for legal proceedings | 3 | ||||
Other non-current assets | 171 | ||||
Investments | 480 | ||||
Investment properties | 3,639 | ||||
Property, plant and equipment | 10,504 | ||||
Intangible assets | 4,051 | ||||
Total non-current assets | 18,930 | ||||
Total assets | 26,944 | ||||
Current liabilities | |||||
Trade payables, net | 6,449 | ||||
Borrowings and financing | 1,051 | ||||
Payroll and related taxes | 375 | ||||
Lease liabilities | 377 | ||||
Related parties | 77 | ||||
Taxes and social contributions payable | 288 | ||||
Acquisition of non-controlling interest | 636 | ||||
Deferred revenue | 200 | ||||
Dividends payable | 40 | ||||
Other current liabilities | 236 | ||||
Total current liabilities | 9,729 | ||||
Non-current liabilities | |||||
Borrowings and financing | 520 | ||||
Deferred income tax and social contribution | 883 | ||||
Provision for legal proceeding | 139 | ||||
Lease liabilities | 2,039 | ||||
Other non-current liabilities | 39 | ||||
Total non-current liabilities | 3,620 | ||||
Shareholders' equity | |||||
Total shareholders' equity | 13,595 | ||||
Total liabilities and shareholders' equity | R$ 26944 |
1 Corporate information (Deta_2
1 Corporate information (Details Narrative) R$ in Millions | Jul. 22, 2020BRL (R$)Number | Jun. 29, 2020BRL (R$)Number | May 29, 2020BRL (R$)Number | Mar. 05, 2020BRL (R$)Number | Dec. 31, 2020BRL (R$)Number | Dec. 31, 2019 |
CorporateInformationLineItems [Line Items] | ||||||
Number of stores | Number | 184 | |||||
Number of distribution centers | Number | 12 | |||||
Number of states and federal district | Number | 22 | |||||
Renegotiated debt amount | R$ 6644 | |||||
Renegotiated debt percent on gross debt | 85.00% | |||||
Cost of debt | R$ 71 | |||||
Discount rate applied to cash flow projections | 9.80% | 8.40% | ||||
Growth rate used to extrapolate cash flow projections | 4.60% | 4.80% | ||||
Number of properties sold | Number | 4 | 4 | 4 | 13 | ||
Sales of property | R$ 131 | R$ 206 | R$ 175 | R$ 532 | ||
Number of non-relevant properties sold | Number | 1 | |||||
Lease agreements [member] | ||||||
CorporateInformationLineItems [Line Items] | ||||||
Matuty terms | 15 years | |||||
TRX fund [member] | ||||||
CorporateInformationLineItems [Line Items] | ||||||
Number of properties sold | Number | 12 | |||||
Sales of property | R$ 513 | |||||
Companhia Brasileira de Distribuicao ("GPA") [member] | ||||||
CorporateInformationLineItems [Line Items] | ||||||
Description of corporate restructuring | GPA were transferred to the Company in exchange for an equivalent value of the shares of Éxito held by the Company (corresponding to 9.07% of the total outstanding shares of Éxito). | |||||
Description of exchange transaction | The Company distributed to GPA the remaining shares of Éxito held by the Company (corresponding to 87.80% of the total outstanding shares of Éxito). The Company distributed certain assets to CBD in the net amount of R$20 million. | |||||
Residual value assets | R$ 45 | |||||
Intercompany receivables | 140 | |||||
Cash | 500 | |||||
Transaction amount | R$ 127 | |||||
Companhia Brasileira de Distribuicao ("GPA") [member] | Bellamar Empreendimentos e Participacoes Ltda. ("Bellamar") [member] | ||||||
CorporateInformationLineItems [Line Items] | ||||||
Description of corporate restructuring | 50% of the shares of Bellamar Empreendimentos e Participações Ltda. (“Bellamar”), a holding company that holds an investment in 35.76% of the shares of Financeira Itaú CBD S.A. – Crédito, Financiamento e Investimento (“FIC”), in the amount of R$769 million, see note 14.1; and five parcels of real estate (the “Real Estate Assets”), in the aggregate amount of R$146 million |
3 Significant accounting poli_3
3 Significant accounting policies (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Significant Accounting Policies Details Narrative Abstract | |||
Interest payment | R$ 549 | R$ 116 | R$ 24 |
5 Adoption of new procedures,_3
5 Adoption of new procedures, amendments to and interpretations (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of initial application of standards or interpretations [line items] | |||||
Other accounts receivable | R$ 34 | R$ 206 | |||
Total current assets | 8,349 | 12,282 | |||
Other accounts receivable | 37 | ||||
Property and equipment, net | 7,476 | 14,652 | R$ 4655 | R$ 3725 | |
Total noncurrent assets | 10,472 | 23,623 | |||
Total assets | 18,821 | 35,905 | |||
Borrowings and financing | 7,763 | 8,781 | |||
Leasing liabilities | 172 | 404 | |||
Taxes and social contributions payable | 424 | ||||
Other current liabilities | 184 | 479 | |||
Total current liabilities | 8,786 | 13,930 | |||
Borrowings and financing | 952 | 622 | |||
Leasing liabilities | 2,604 | 3,347 | |||
Total noncurrent liabilities | 8,688 | 12,274 | |||
Total shareholders' equity | 1,347 | 9,701 | 3,024 | ||
Total liabilities and shareholders' equity | R$ 18821 | R$ 35905 | |||
Originally presented [member] | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Other accounts receivable | 64 | 42 | R$ 164 | ||
Total current assets | 4,228 | 3,107 | 2,447 | ||
Other accounts receivable | 43 | 229 | 226 | ||
Deferred income tax and social contribution | 1 | ||||
Property and equipment, net | 3,603 | 2,825 | 2,111 | ||
Total noncurrent assets | 5,726 | 4,229 | 3,299 | ||
Total assets | 9,954 | 7,336 | 5,746 | ||
Borrowings and financing | 680 | 27 | 2,160 | ||
Leasing liabilities | |||||
Taxes and social contributions payable | 127 | ||||
Other current liabilities | 143 | 72 | |||
Total current liabilities | 5,065 | 3,327 | 2,959 | ||
Borrowings and financing | 107 | 460 | |||
Deferred income tax and social contribution | 323 | ||||
Leasing liabilities | |||||
Total noncurrent liabilities | 680 | 891 | 458 | ||
Total liabilities | 5,745 | 4,218 | 3,417 | ||
Total shareholders' equity | 4,209 | 3,118 | 2,329 | ||
Total liabilities and shareholders' equity | 9,954 | 7,336 | 5,746 | ||
IFRS 16 Effects [member] | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Other accounts receivable | (30) | (15) | (13) | ||
Total current assets | (30) | (15) | (13) | ||
Other accounts receivable | (43) | (36) | (25) | ||
Deferred income tax and social contribution | 46 | 36 | |||
Property and equipment, net | 1,052 | 900 | 675 | ||
Total noncurrent assets | 1,009 | 910 | 686 | ||
Total assets | 979 | 895 | 673 | ||
Borrowings and financing | (4) | (5) | (4) | ||
Leasing liabilities | 81 | 65 | 54 | ||
Taxes and social contributions payable | 1 | ||||
Other current liabilities | (18) | (6) | |||
Total current liabilities | 60 | 54 | 50 | ||
Borrowings and financing | (5) | (9) | |||
Deferred income tax and social contribution | (58) | ||||
Leasing liabilities | 1,099 | 944 | 693 | ||
Total noncurrent liabilities | 1,036 | 935 | 693 | ||
Total liabilities | 1,096 | 989 | 743 | ||
Total shareholders' equity | (117) | (94) | (70) | ||
Total liabilities and shareholders' equity | 979 | 895 | 673 | ||
After IFRS 16 [member] | |||||
Disclosure of initial application of standards or interpretations [line items] | |||||
Other accounts receivable | 34 | 27 | 151 | ||
Total current assets | 4,198 | 3,092 | 2,434 | ||
Other accounts receivable | 193 | 201 | |||
Deferred income tax and social contribution | 47 | 36 | |||
Property and equipment, net | 4,655 | 3,725 | 2,786 | ||
Total noncurrent assets | 6,735 | 5,139 | 3,985 | ||
Total assets | 10,933 | 8,231 | 6,419 | ||
Borrowings and financing | 676 | 22 | 2,156 | ||
Leasing liabilities | 81 | 65 | 54 | ||
Taxes and social contributions payable | 128 | ||||
Other current liabilities | 125 | 66 | |||
Total current liabilities | 5,125 | 3,381 | 3,009 | ||
Borrowings and financing | 102 | 451 | |||
Deferred income tax and social contribution | 265 | ||||
Leasing liabilities | 1,099 | 944 | 693 | ||
Total noncurrent liabilities | 1,716 | 1,826 | 1,151 | ||
Total liabilities | 6,841 | 5,207 | 4,160 | ||
Total shareholders' equity | 4,092 | 3,024 | 2,259 | ||
Total liabilities and shareholders' equity | R$ 10933 | R$ 8231 | R$ 6419 |
5 Adoption of new procedures,_4
5 Adoption of new procedures, amendments to and interpretations (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of initial application of standards or interpretations [line items] | |||
Gross Profit | R$ 5914 | R$ 4733 | R$ 4172 |
Expenses, net | |||
Selling expenses | 2,811 | 2,273 | 1,908 |
General and administrative expenses | 435 | 352 | 275 |
Depreciation and amortization | 503 | 395 | 313 |
Other operating expenses, net | (97) | (11) | (3) |
Operating profit before financial result | 2,068 | 1,702 | 1,673 |
Net financial result | (443) | (200) | (120) |
Earnings before income tax and social contribution | 1,625 | 1,502 | 1,553 |
Income tax and social contribution | 436 | 426 | 477 |
Net income for the period | 1,189 | 1,076 | 1,076 |
Deferred income tax and social contribution | (268) | 133 | 175 |
Interest and monetary variation | 12 | 11 | 4 |
Payment of borrowings and financing | 3,052 | 6,124 | 201 |
Leasing liabilities payments | R$ 756 | R$ 267 | 200 |
Originally presented [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Gross Profit | 4,172 | ||
Expenses, net | |||
Selling expenses | (2,057) | ||
General and administrative expenses | (278) | ||
Depreciation and amortization | (234) | ||
Other operating expenses, net | (8) | ||
Operating profit before financial result | 1,595 | ||
Net financial result | (7) | ||
Earnings before income tax and social contribution | 1,588 | ||
Income tax and social contribution | (489) | ||
Net income for the period | 1,099 | ||
Deferred income tax and social contribution | 188 | ||
Loss on disposal of property and equipment | 39 | ||
Depreciation and amortization | 244 | ||
Interest and monetary variation | 47 | ||
Gain on leasing liability write-off | |||
Other assets | (67) | ||
Other liabilities | 71 | ||
Payment of borrowings and financing | (206) | ||
Leasing liabilities payments | |||
IFRS 16 Effects [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Gross Profit | |||
Expenses, net | |||
Selling expenses | 149 | ||
General and administrative expenses | 3 | ||
Depreciation and amortization | (79) | ||
Other operating expenses, net | 5 | ||
Operating profit before financial result | 78 | ||
Net financial result | (113) | ||
Earnings before income tax and social contribution | (35) | ||
Income tax and social contribution | 12 | ||
Net income for the period | (23) | ||
Deferred income tax and social contribution | (13) | ||
Loss on disposal of property and equipment | 11 | ||
Depreciation and amortization | 97 | ||
Interest and monetary variation | 124 | ||
Gain on leasing liability write-off | (15) | ||
Other assets | 22 | ||
Other liabilities | (8) | ||
Payment of borrowings and financing | 5 | ||
Leasing liabilities payments | (200) | ||
After IFRS 16 [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Gross Profit | 4,172 | ||
Expenses, net | |||
Selling expenses | (1,908) | ||
General and administrative expenses | (275) | ||
Depreciation and amortization | (313) | ||
Other operating expenses, net | (3) | ||
Operating profit before financial result | 1,673 | ||
Net financial result | (120) | ||
Earnings before income tax and social contribution | 1,553 | ||
Income tax and social contribution | (477) | ||
Net income for the period | 1,076 | ||
Deferred income tax and social contribution | 175 | ||
Loss on disposal of property and equipment | 50 | ||
Depreciation and amortization | 341 | ||
Interest and monetary variation | 171 | ||
Gain on leasing liability write-off | (15) | ||
Other assets | (45) | ||
Other liabilities | 63 | ||
Payment of borrowings and financing | (201) | ||
Leasing liabilities payments | R$ 200 |
7 Cash and cash equivalents (De
7 Cash and cash equivalents (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
CashAndCashEquivalentLineItems [Line Items] | |||
Cash and cash equivalents | R$ 3532 | R$ 5026 | |
Cash and bank accounts [member] | Brazil [member] | |||
CashAndCashEquivalentLineItems [Line Items] | |||
Cash and cash equivalents | 64 | 67 | |
Cash and bank accounts [member] | Abroad [member] | |||
CashAndCashEquivalentLineItems [Line Items] | |||
Cash and cash equivalents | [1] | 29 | 3,024 |
financial investments [member] | Brazil [member] | |||
CashAndCashEquivalentLineItems [Line Items] | |||
Cash and cash equivalents | [2] | 3,439 | 1,810 |
financial investments [member] | Abroad [member] | |||
CashAndCashEquivalentLineItems [Line Items] | |||
Cash and cash equivalents | [3] | R$ 125 | |
[1] | On December 31, 2020, the Company has funds held abroad, being R$24 in US dollars and R$5 in Colombian pesos; (ii) On December 31, 2019, the balance refers to funds from the Exito Group, being R$73 in Argentina, R$254 in Uruguay and R$2,697 in Colombian. | ||
[2] | On December 31, 2020, the financial investments correspond to the repurchase and resale agreements, yielded by the weighted average of 96.96% of CDI - Interbank Deposit Certificate (87.71% of CDI on December 31, 2019) and redeemable within terms less than 90 days, as of the date of investment, without losing income. | ||
[3] | Refers to funds invested abroad, of which R$20 are denominated in Argentinian pesos, R$4 are denominated in Uruguayan pesos and R$101 are denominated in Colombia pesos. |
7 Cash and cash equivalents (_2
7 Cash and cash equivalents (Details Narrative) - Exito [member] - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
financial investments [member] | Interbank deposit certificate ("CDI") [member] | ||
CashAndCashEquivalentLineItems [Line Items] | ||
Weighted average interest rate | 96.96% | 87.71% |
ARGENTINA | ||
CashAndCashEquivalentLineItems [Line Items] | ||
Acquisition consideration | R$ 73 | |
COLOMBIA | ||
CashAndCashEquivalentLineItems [Line Items] | ||
Acquisition consideration | R$ 5 | 2,697 |
Funds invested abroad | 101 | |
URUGUAY | ||
CashAndCashEquivalentLineItems [Line Items] | ||
Acquisition consideration | R$ 254 | |
Funds invested abroad | 4 | |
UNITED STATES | ||
CashAndCashEquivalentLineItems [Line Items] | ||
Acquisition consideration | 24 | |
ARGENTINA | ||
CashAndCashEquivalentLineItems [Line Items] | ||
Funds invested abroad | R$ 20 |
8 Trade receivables (Details)
8 Trade receivables (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
TradeReceivablesLineItems [Line Items] | ||
Trade receivables, current | R$ 182 | R$ 491 |
Credit card companies [member] | ||
TradeReceivablesLineItems [Line Items] | ||
Trade receivables, net | 62 | 17 |
Credit card companies with related parties [member] | ||
TradeReceivablesLineItems [Line Items] | ||
Trade receivables, net | 17 | 10 |
Sales ticket and others [member] | ||
TradeReceivablesLineItems [Line Items] | ||
Trade receivables, net | 77 | 383 |
Trade receivables with related parties [member] | ||
TradeReceivablesLineItems [Line Items] | ||
Trade receivables, net | 10 | 21 |
Trade receivables with suppliers/slips [member] | ||
TradeReceivablesLineItems [Line Items] | ||
Trade receivables, net | 20 | 92 |
Allowance for doubtful accounts [member] | ||
TradeReceivablesLineItems [Line Items] | ||
Trade receivables, net | R$ 4 | R$ 32 |
8 Trade receivables (Details 1)
8 Trade receivables (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Trade Receivables | |||
At the beginning of the year | R$ 32 | R$ 4 | R$ 1 |
Additions/reversals recorded in the year | (51) | (3) | |
Decrease trade receivables | 42 | ||
Discontinued operations | 43 | ||
Foreign currency translation adjustment | (6) | ||
Business combination | (28) | ||
At the end of the year | R$ 4 | R$ 32 | R$ 4 |
8 Trade receivable (Details 2)
8 Trade receivable (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
TradeReceivablesLineItems [Line Items] | |||
Trade account receivables gross | R$ 186 | R$ 523 | R$ 141 |
Overdue receivables not yet due [member] | |||
TradeReceivablesLineItems [Line Items] | |||
Trade account receivables gross | 181 | 407 | 127 |
Less than 30 days [member | |||
TradeReceivablesLineItems [Line Items] | |||
Trade account receivables gross | 2 | 59 | 2 |
Less than 60 days [member] | |||
TradeReceivablesLineItems [Line Items] | |||
Trade account receivables gross | 14 | ||
Less than 90 days [member] | |||
TradeReceivablesLineItems [Line Items] | |||
Trade account receivables gross | 4 | 12 | |
Overdue receivables more than 90 days [member] | |||
TradeReceivablesLineItems [Line Items] | |||
Trade account receivables gross | R$ 3 | R$ 39 |
8 Trade receivable (Details Nar
8 Trade receivable (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Trade Receivables | |
Effective loss period of portfolios | 24 months |
9 Other accounts receivable (De
9 Other accounts receivable (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of fair value measurement of assets [line items] | ||
Other receivable | R$ 34 | R$ 243 |
Other receivables, current | 34 | 206 |
Other receivables, non-current | 37 | |
Rental receivables - commercial galleries [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Other receivable | 6 | 71 |
Sales of real estate properties [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Other receivable | 22 | 101 |
Others accounts receivable - exito group [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Other receivable | 61 | |
Others [member] | ||
Disclosure of fair value measurement of assets [line items] | ||
Other receivable | R$ 6 | R$ 10 |
9 Other accounts receivables (D
9 Other accounts receivables (Details Narrative) R$ in Millions | 1 Months Ended | 12 Months Ended | |||
Mar. 01, 2021BRL (R$) | Dec. 31, 2020BRL (R$) | Dec. 31, 2019 | Jun. 22, 2020Number | Dec. 13, 2019Number | |
OtherReceivablesLineItems [Line Items] | |||||
Percentage of receivable | 26.00% | 71.00% | |||
Sale and leaseback agreement [member] | |||||
OtherReceivablesLineItems [Line Items] | |||||
Proceeds from sale real estate properties | R$ 449 | ||||
Number of stores | Number | 9 | 9 | |||
Maturity year | 2021 | ||||
Maturity term | 20 years | ||||
Sale and leaseback agreement [member] | Subsequent [member] | |||||
OtherReceivablesLineItems [Line Items] | |||||
Proceeds from sale real estate properties | R$ 22 |
10 Inventories (Details)
10 Inventories (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
InventoriesLineItems [Line Items] | ||
Inventories, net | R$ 3739 | R$ 5190 |
Inventories exito group [member] | ||
InventoriesLineItems [Line Items] | ||
Inventories, net | 2,255 | |
Stores [member] | ||
InventoriesLineItems [Line Items] | ||
Inventories, net | 3,416 | 2,402 |
Distribution centers [member] | ||
InventoriesLineItems [Line Items] | ||
Inventories, net | 374 | 404 |
Real estate inventories - exito group [member] | ||
InventoriesLineItems [Line Items] | ||
Inventories, net | 190 | |
Allowance for losses on inventory obsolescence and damages [member] | ||
InventoriesLineItems [Line Items] | ||
Inventories, net | R$ 51 | R$ 61 |
10 Inventories (Details 1)
10 Inventories (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventories Abstract | |||
At the beginning of the year | R$ 61 | R$ 34 | R$ 37 |
Additions | (13) | (5) | |
Discontinued operations | 28 | ||
Foreign currency translation adjustment | (5) | ||
Business combinations | (22) | ||
Write-offs | 3 | ||
At the end of the year | R$ 51 | R$ 61 | R$ 34 |
10 Inventories (Details Narrati
10 Inventories (Details Narrative) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
InventoriesLineItems [Line Items] | ||
Inventories, net | R$ 3739 | R$ 5190 |
Unrealized commercial agreements [member] | ||
InventoriesLineItems [Line Items] | ||
Inventories, net | R$ 444 | R$ 254 |
11 Recoverable taxes (Details)
11 Recoverable taxes (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
RecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | R$ 1634 | R$ 2081 |
Recoverable taxes, current | 768 | 1,119 |
Recoverable taxes, non-current | 866 | 962 |
State tax credits - ICMS [member] | ||
RecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | 1,311 | 1,189 |
Social integration program (PIS) and contribution for social security financing (COFINS) [member] | ||
RecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | 141 | 353 |
Social security contribution (INSS) [member] | ||
RecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | 36 | 27 |
Income tax and social contribution [member] | ||
RecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | 144 | 410 |
Other [member] | ||
RecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | 2 | 25 |
Other recoverable taxes - exito group [member] | ||
RecoverableTaxesLineItems [Line Items] | ||
Recoverable taxes | R$ 77 |
11 Recoverable taxes (Details 1
11 Recoverable taxes (Details 1) R$ in Millions | Dec. 31, 2020BRL (R$) |
RecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | R$ 1311 |
In 1 year [Member] | |
RecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 470 |
From 1 to 2 years [member] | |
RecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 343 |
From 2 to 3 years [member] | |
RecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 349 |
From 3 to 4 years [member] | |
RecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 86 |
From 4 to 5 years [member] | |
RecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | 14 |
More than 5 years [member] | |
RecoverableTaxesLineItems [Line Items] | |
Future realization of recoverable taxes | R$ 49 |
11 Recoverable taxes (Details N
11 Recoverable taxes (Details Narrative) R$ in Millions | Dec. 31, 2020BRL (R$) |
Recoverable Taxes | |
Credits recorded in the amount | R$ 11 |
12 Related Parties (Details)
12 Related Parties (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of transactions between related parties [line items] | ||
Assets balance | R$ 18821 | R$ 35905 |
Suppliers [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | 11 | 17 |
Other liabilities [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | 41 | 152 |
GPA [Member] | Suppliers [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | 1 | |
GPA [Member] | Other liabilities [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | 41 | 90 |
Casino [member] | Suppliers [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | ||
Casino [member] | Other liabilities [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | ||
Controlling Shareholder [member] | Suppliers [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | 1 | |
Controlling Shareholder [member] | Other liabilities [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | 41 | 90 |
Novasoc Comercial Ltda. [member] | Suppliers [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | ||
Novasoc Comercial Ltda. [member] | Other liabilities [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | 4 | |
Compre Bem [member] | Suppliers [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | ||
Compre Bem [member] | Other liabilities [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | ||
Greenyellow [member] | Suppliers [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | ||
Greenyellow [member] | Other liabilities [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | 15 | |
Puntos Colombia [member] | Suppliers [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | ||
Puntos Colombia [member] | Other liabilities [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | 43 | |
Tuya [member] | Suppliers [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | ||
Tuya [member] | Other liabilities [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | ||
Others [member] | Suppliers [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | ||
Others [member] | Other liabilities [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | ||
Financeira Itau CBD S.A. Credito, Financiamento e Investimento ("FIC") [member] | Suppliers [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | 11 | 16 |
Financeira Itau CBD S.A. Credito, Financiamento e Investimento ("FIC") [member] | Other liabilities [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | ||
Joint Venture [member] | Suppliers [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | 11 | 16 |
Joint Venture [member] | Other liabilities [member] | ||
Disclosure of transactions between related parties [line items] | ||
Liabilities balance | 62 | |
Clients [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 27 | 31 |
Clients [member] | GPA [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 13 | |
Clients [member] | Casino [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 10 | 5 |
Clients [member] | Controlling Shareholder [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 10 | 18 |
Clients [member] | Novasoc Comercial Ltda. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | ||
Clients [member] | Compre Bem [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 2 | |
Clients [member] | Greenyellow [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | ||
Clients [member] | Puntos Colombia [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | ||
Clients [member] | Tuya [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | ||
Clients [member] | Others [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 1 | |
Clients [member] | Financeira Itau CBD S.A. Credito, Financiamento e Investimento ("FIC") [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 17 | 10 |
Clients [member] | Joint Venture [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 17 | 13 |
Other assets [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 178 | 97 |
Other assets [member] | GPA [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 168 | 2 |
Other assets [member] | Casino [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 5 | |
Other assets [member] | Controlling Shareholder [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 168 | 7 |
Other assets [member] | Novasoc Comercial Ltda. [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 4 | |
Other assets [member] | Compre Bem [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 11 | |
Other assets [member] | Greenyellow [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 10 | |
Other assets [member] | Puntos Colombia [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 29 | |
Other assets [member] | Tuya [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 26 | |
Other assets [member] | Others [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | ||
Other assets [member] | Financeira Itau CBD S.A. Credito, Financiamento e Investimento ("FIC") [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | 10 | 10 |
Other assets [member] | Joint Venture [member] | ||
Disclosure of transactions between related parties [line items] | ||
Assets balance | R$ 10 | R$ 90 |
12 Related Parties (Details 1)
12 Related Parties (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [line items] | |||
Purchases of goods, related party transactions | R$ 1 | R$ 14 | R$ 7 |
Revenue from sale of goods, related party transactions | (338) | (157) | (110) |
GPA [Member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods, related party transactions | 1 | 7 | |
Revenue from sale of goods, related party transactions | (183) | (162) | (110) |
Controlling Shareholder [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods, related party transactions | 1 | 7 | |
Revenue from sale of goods, related party transactions | (183) | (162) | (110) |
Compre Bem [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods, related party transactions | 1 | 13 | |
Revenue from sale of goods, related party transactions | 3 | (3) | |
Puntos Colombia [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods, related party transactions | |||
Revenue from sale of goods, related party transactions | (114) | (13) | |
Tuya [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods, related party transactions | |||
Revenue from sale of goods, related party transactions | 24 | 21 | |
Greenyellow [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods, related party transactions | |||
Revenue from sale of goods, related party transactions | (47) | 1 | |
Grupo Casino [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods, related party transactions | |||
Revenue from sale of goods, related party transactions | (19) | 2 | |
Others [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods, related party transactions | |||
Revenue from sale of goods, related party transactions | (2) | (3) | |
Other related parties [member] | |||
Disclosure of transactions between related parties [line items] | |||
Purchases of goods, related party transactions | 1 | 13 | |
Revenue from sale of goods, related party transactions | R$ 155 | R$ 5 |
12 Related Parties (Details 2)
12 Related Parties (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related party transactions [abstract] | |||
Base salary | R$ 13 | R$ 15 | R$ 9 |
Variable compensation | 7 | 8 | 10 |
Stock options plan | 5 | 6 | 5 |
Total | R$ 25 | R$ 29 | R$ 24 |
13 Investments in joint ventu_2
13 Investments in joint venture (Details) - Bellamar Empreendimento e Participacao S.A [member] | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of joint ventures [line items] | |
Group joint venture | Financeira Itaú CBD S.A. |
Name of joint venture | Bellamar Empreendimento e Participação S.A. |
Name of country | Brazil |
Participation in investments | 50.00% |
13 Investments in joint ventu_3
13 Investments in joint venture (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
InvestmentsLineItems [Line Items] | ||||
Current assets | R$ 8349 | R$ 12282 | ||
Non-current assets | 10,472 | 23,623 | ||
Total assets | 18,821 | 35,905 | ||
Current liabilities | 8,786 | 13,930 | ||
Non-current liabilities | 8,688 | 12,274 | ||
Shareholders' equity | 1,347 | 9,701 | R$ 3024 | |
Total non-current liabilities | 18,821 | 35,905 | ||
Income Statements | ||||
Income | 36,043 | 28,082 | R$ 23017 | |
Operating profit | 1,189 | 1,076 | 1,076 | |
Net income for the year | 1,556 | R$ 1060 | R$ 1076 | |
Bellamar Empreendimento e Participacao S.A [member] | ||||
InvestmentsLineItems [Line Items] | ||||
Total actions - in millions | R$ 162 | |||
Percentage interest in company | 50.00% | |||
Current assets | R$ 22 | |||
Non-current assets | 370 | |||
Total assets | 392 | |||
Current liabilities | ||||
Non-current liabilities | ||||
Shareholders' equity | 392 | |||
Total non-current liabilities | 392 | |||
Income Statements | ||||
Income | ||||
Operating profit | 118 | |||
Net income for the year | 118 | |||
Financeira Itau CBD S.A. [member] | ||||
InvestmentsLineItems [Line Items] | ||||
Total actions - in millions | R$ 352 | |||
Percentage interest in company | 17.88% | |||
Current assets | R$ 6737 | |||
Non-current assets | 52 | |||
Total assets | 6,789 | |||
Current liabilities | 5,610 | |||
Non-current liabilities | 22 | |||
Shareholders' equity | 1,157 | |||
Total non-current liabilities | 6,789 | |||
Income Statements | ||||
Income | 989 | |||
Operating profit | 555 | |||
Net income for the year | R$ 329 |
13 Investments in joint ventu_4
13 Investments in joint venture (Details Narrative) R$ in Millions | Feb. 05, 2021BRL (R$) | Dec. 31, 2020BRL (R$) |
Financeira Itau CBD S.A. [member] | ||
InvestmentsLineItems [Line Items] | ||
Percentage of capital stock | 35.76% | |
Percentage of interest in joint venture | 17.88% | |
Financeira Itau CBD S.A. [member] | Subsequent [member] | ||
InvestmentsLineItems [Line Items] | ||
Percentage of allocation of acquisition value | 0.1788 | |
Allocation of the acquisition value | R$ 769 | |
Bellamar Empreendimento e Participacao S.A [member] | ||
InvestmentsLineItems [Line Items] | ||
Percentage of interest in joint venture | 50.00% | |
Percentage of receives for fair value of shares | 50.00% | |
Fair value of shares in swap of assets process | R$ 769 |
14 Business combination (Detail
14 Business combination (Details) - Exito Group - Colombia [member] - BRL (R$) R$ in Millions | Dec. 31, 2019 | Nov. 27, 2019 |
Disclosure of detailed information about business combination [line items] | ||
Cash consideration | R$ 9268 | |
Cash flow hedge effect | 145 | |
Cash consideration transferred gross | 9,413 | |
Dividends received related to 2018 | (42) | |
Total cash consideration transferred | R$ 9371 | R$ 9371 |
14 Business combination (Deta_2
14 Business combination (Details 1) - Exito Group - Colombia [member] R$ in Millions | Nov. 27, 2019BRL (R$) |
Assets | |
Cash and cash equivalentes | R$ 6062 |
Trade receivables, net | 416 |
Inventories, net | 2,765 |
Recoverable taxes | 477 |
Other current assets | 349 |
Deferred income tax and social contribution | 1,353 |
Related parties | 137 |
Other noncurrent assets | 111 |
Investments in associates | 316 |
Investment properties | 2,972 |
Property and equipment, net | 8,496 |
Intangible assets, net | 3,009 |
Total Assets | 26,463 |
Liabilities | |
Payroll and related taxes | 283 |
Trade payables, net | 4,545 |
Taxes and contributions payable | 219 |
Borrowings and financing | 2,546 |
Lease liabilities | 277 |
Other current liabilities | 998 |
Noncurrent borrowings and financing | 2,060 |
Deferred income tax and social contribution | 2,100 |
Provisions for legal proceedings | 103 |
Noncurrent -lease liabilities | 1,540 |
Other noncurrent liabilities | 28 |
Total Liabilities | 14,699 |
Net assets | 11,764 |
(-) Attribute to non-controlling interest | (2,558) |
Net assets | R$ 9206 |
14 Business combination (Deta_3
14 Business combination (Details 2) - Exito Group - Colombia [member] - BRL (R$) R$ in Millions | Dec. 31, 2019 | Nov. 27, 2019 |
Disclosure of detailed information about business combination [line items] | ||
Fair value of net assets acquired | R$ 11764 | |
(-) Fair value of non-controlling interest | (2,558) | |
Net assets | 9,206 | |
Total consideration transferred for the acquisition of Exito Group | R$ 9371 | 9,371 |
Goodwill resulting from acquisition of Exito Group | R$ 165 |
14 Business combinationl (Detai
14 Business combinationl (Details Narrative) - BRL (R$) R$ / shares in Units, R$ in Millions | Jan. 02, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Nov. 27, 2019 | Sep. 12, 2019 | Jul. 23, 2019 | Jun. 26, 2019 |
Disclosure of detailed information about business combination [line items] | |||||||
Equity interest | R$ 769 | ||||||
Percentage of equity interest | 17.88% | ||||||
Exito Group [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Percentage of equity interest | 96.57% | 100.00% | 55.30% | ||||
Share price | R$ 21.68 | ||||||
Indirect equity interest per shares | R$ 113 | ||||||
Cash payment | R$ 9500 | ||||||
Net of debt | 4,900 | ||||||
Net sales revenue | R$ 18388 | 2,150 | |||||
Net income | R$ 178 | 71 | |||||
Goodwill resulting from acquisition of Exito Group | R$ 165 | ||||||
Acquisition related cost | 124 | ||||||
Exito Group [member] | Colombia, Pesos | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Share price | R$ 18000 | ||||||
Cash payment | R$ 7780000 | ||||||
Exito Group [member] | USD | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Net of debt | R$ 1161 |
15 Investment Properties (Detai
15 Investment Properties (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about investment property [line items] | ||
Fair value of investment properties at beginning | R$ 3051 | |
Impairment | (20) | |
Additions | 14 | 12 |
Depreciation | (62) | (4) |
Business combinations | 2,973 | |
Currency translation adjustment | 707 | 55 |
Transfers | (51) | 15 |
Discontinued operation | (3,639) | |
Fair value of investment properties at ending | 3,051 | |
Land [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Fair value of investment properties at beginning | 656 | |
Impairment | (10) | |
Additions | 2 | |
Depreciation | ||
Business combinations | 643 | |
Currency translation adjustment | 149 | 11 |
Transfers | (32) | |
Discontinued operation | (763) | |
Fair value of investment properties at ending | 656 | |
Buildings [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Fair value of investment properties at beginning | 2,385 | |
Impairment | (10) | |
Additions | 6 | 10 |
Depreciation | (62) | (4) |
Business combinations | 2,320 | |
Currency translation adjustment | 555 | 44 |
Transfers | (16) | 15 |
Discontinued operation | (2,858) | |
Fair value of investment properties at ending | 2,385 | |
Construction in progress [member] | ||
Disclosure of detailed information about investment property [line items] | ||
Fair value of investment properties at beginning | 10 | |
Impairment | ||
Additions | 8 | |
Depreciation | ||
Business combinations | 10 | |
Currency translation adjustment | 3 | |
Transfers | (3) | |
Discontinued operation | (18) | |
Fair value of investment properties at ending | R$ 10 |
15 Investment Properties (Det_2
15 Investment Properties (Details 1) R$ in Millions | Dec. 31, 2020BRL (R$) |
Disclosure of detailed information about investment property [line items] | |
Historical cost | R$ 3066 |
Accumulated depreciation | (15) |
Residual value | 3,051 |
Land [member] | |
Disclosure of detailed information about investment property [line items] | |
Historical cost | 656 |
Accumulated depreciation | |
Residual value | 656 |
Buildings [member] | |
Disclosure of detailed information about investment property [line items] | |
Historical cost | 2,400 |
Accumulated depreciation | (15) |
Residual value | 2,385 |
Construction in progress [member] | |
Disclosure of detailed information about investment property [line items] | |
Historical cost | 10 |
Accumulated depreciation | |
Residual value | R$ 10 |
15 Investment Properties (Det_3
15 Investment Properties (Details 2) - Almacenes Exito S.A. [Member] R$ in Millions | 12 Months Ended |
Dec. 31, 2019BRL (R$) | |
Disclosure of detailed information about business combination [line items] | |
Lease Revenue | R$ 31 |
Operating expenses related to investment properties that generate revenues | (4) |
Operating expenses related to investment properties that do not generate revenues | (12) |
Net revenue generated by investment properties | R$ 15 |
15 Investment Properties (Det_4
15 Investment Properties (Details Narrative) R$ in Millions | Dec. 31, 2019BRL (R$) |
Almacenes Exito S.A. [Member] | |
Disclosure of detailed information about business combination [line items] | |
Fair value of investment properties | R$ 3051 |
16 Property, plant and equipm_3
16 Property, plant and equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average annual depreciation rate in % | 2.47% |
Improvements [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average annual depreciation rate in % | 4.15% |
Machinery and equipment [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average annual depreciation rate in % | 11.91% |
Facilities [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average annual depreciation rate in % | 6.81% |
Furniture and appliances [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Average annual depreciation rate in % | 11.42% |
16 Property, plant and equipm_4
16 Property, plant and equipment (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | R$ 14652 | R$ 4655 | R$ 3725 |
Additions | 2,788 | 1,997 | 1,187 |
Remeasurement | 621 | 138 | 52 |
Purchase Partnership | 8,497 | ||
Write-offs | (833) | (362) | (74) |
Depreciation | (1,262) | (457) | (329) |
Transfers and others | (91) | 44 | 94 |
Currency translation adjustment | 1,970 | 140 | |
Corporate restructuring | 135 | ||
Discontinued operation | (10,504) | ||
Property and equipment, ending | 7,476 | 14,652 | 4,655 |
Lease [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 3,495 | 1,060 | 912 |
Additions | 1,240 | 685 | 210 |
Remeasurement | 621 | 138 | 52 |
Purchase Partnership | 1,755 | ||
Write-offs | (589) | (28) | (13) |
Depreciation | (516) | (145) | (101) |
Transfers and others | 5 | (4) | |
Currency translation adjustment | 412 | 34 | |
Corporate restructuring | (4) | ||
Discontinued operation | (2,235) | ||
Property and equipment, ending | 2,429 | 3,495 | 1,060 |
Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 2,766 | 348 | 261 |
Additions | 61 | 76 | 45 |
Remeasurement | |||
Purchase Partnership | 2,277 | ||
Write-offs | (32) | ||
Depreciation | |||
Transfers and others | (70) | 25 | 42 |
Currency translation adjustment | 541 | 40 | |
Corporate restructuring | 146 | ||
Discontinued operation | (2,931) | ||
Property and equipment, ending | 481 | 2,766 | 348 |
Land [member] | Lease [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 3 | ||
Additions | |||
Remeasurement | |||
Purchase Partnership | 3 | ||
Write-offs | |||
Depreciation | |||
Transfers and others | |||
Currency translation adjustment | |||
Corporate restructuring | |||
Discontinued operation | (3) | ||
Property and equipment, ending | 3 | ||
Buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 3,829 | 583 | 437 |
Additions | 78 | 231 | 170 |
Remeasurement | |||
Purchase Partnership | 2,935 | ||
Write-offs | (85) | (3) | |
Depreciation | (121) | (25) | (13) |
Transfers and others | (139) | 56 | (8) |
Currency translation adjustment | 704 | 49 | |
Corporate restructuring | |||
Discontinued operation | (3,657) | ||
Property and equipment, ending | 609 | 3,829 | 583 |
Buildings [member] | Lease [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 3,449 | 1,053 | 901 |
Additions | 1,217 | 670 | 210 |
Remeasurement | 628 | 138 | 52 |
Purchase Partnership | 1,727 | ||
Write-offs | (588) | (28) | (13) |
Depreciation | (501) | (140) | (97) |
Transfers and others | 2 | (3) | |
Currency translation adjustment | 403 | 32 | |
Corporate restructuring | (4) | ||
Discontinued operation | (2,183) | ||
Property and equipment, ending | 2,423 | 3,449 | 1,053 |
Improvements [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 2,207 | 1,733 | 1,346 |
Additions | 694 | 553 | 421 |
Remeasurement | |||
Purchase Partnership | 334 | ||
Write-offs | (71) | (302) | (30) |
Depreciation | (189) | (123) | (95) |
Transfers and others | 293 | 12 | 91 |
Currency translation adjustment | 70 | ||
Corporate restructuring | (4) | ||
Discontinued operation | (402) | ||
Property and equipment, ending | 2,598 | 2,207 | 1,733 |
Equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 1,242 | 416 | 351 |
Additions | 227 | 232 | 142 |
Remeasurement | |||
Purchase Partnership | 672 | ||
Write-offs | (28) | (20) | (8) |
Depreciation | (260) | (93) | (69) |
Transfers and others | 84 | 25 | |
Currency translation adjustment | 151 | 10 | |
Corporate restructuring | (1) | ||
Discontinued operation | (780) | ||
Property and equipment, ending | 635 | 1,242 | 416 |
Facilities [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 330 | 221 | 178 |
Additions | 58 | 66 | 57 |
Remeasurement | |||
Purchase Partnership | 64 | ||
Write-offs | (6) | (1) | (3) |
Depreciation | (32) | (20) | (15) |
Transfers and others | (16) | 2 | 4 |
Currency translation adjustment | 8 | (2) | |
Corporate restructuring | |||
Discontinued operation | (73) | ||
Property and equipment, ending | 269 | 330 | 221 |
Furniture and appliances [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 601 | 226 | 169 |
Additions | 78 | 81 | 79 |
Remeasurement | |||
Purchase Partnership | 300 | ||
Write-offs | (15) | (8) | (5) |
Depreciation | (128) | (40) | (26) |
Transfers and others | 58 | 36 | 9 |
Currency translation adjustment | 66 | 6 | |
Corporate restructuring | |||
Discontinued operation | (320) | ||
Property and equipment, ending | 340 | 601 | 226 |
Construction In Progress [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 140 | 39 | 43 |
Additions | 344 | 69 | 52 |
Remeasurement | |||
Purchase Partnership | 154 | ||
Write-offs | (7) | (3) | (12) |
Depreciation | |||
Transfers and others | (318) | (122) | (44) |
Currency translation adjustment | 18 | 3 | |
Corporate restructuring | |||
Discontinued operation | (99) | ||
Property and equipment, ending | 78 | 140 | 39 |
Other [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 42 | 29 | 28 |
Additions | 8 | 4 | 11 |
Remeasurement | |||
Purchase Partnership | 6 | ||
Write-offs | |||
Depreciation | (16) | (11) | (10) |
Transfers and others | 12 | 14 | |
Currency translation adjustment | |||
Corporate restructuring | (2) | ||
Discontinued operation | (7) | ||
Property and equipment, ending | 37 | 42 | 29 |
Total Property and Equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 11,157 | 3,595 | 2,813 |
Additions | 1,548 | 1,312 | 977 |
Remeasurement | |||
Purchase Partnership | 6,742 | ||
Write-offs | (244) | (334) | (61) |
Depreciation | (746) | (312) | (228) |
Transfers and others | (96) | 48 | 94 |
Currency translation adjustment | 1,558 | 106 | |
Corporate restructuring | 139 | ||
Discontinued operation | (8,269) | ||
Property and equipment, ending | 5,047 | 11,157 | 3,595 |
Equipment [member] | Lease [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property and equipment, beginning | 43 | 7 | 11 |
Additions | 23 | 15 | |
Remeasurement | (7) | ||
Purchase Partnership | 25 | ||
Write-offs | (1) | ||
Depreciation | (15) | (5) | (4) |
Transfers and others | 3 | (1) | |
Currency translation adjustment | 9 | 2 | |
Corporate restructuring | |||
Discontinued operation | (49) | ||
Property and equipment, ending | R$ 6 | R$ 43 | R$ 7 |
16 Property, plant and equipm_5
16 Property, plant and equipment (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment, cost | R$ 9747 | R$ 18335 | ||
Property and equipment, accumulated depreciation | (2,271) | (3,683) | ||
Property and equipment, net | 7,476 | 14,652 | R$ 4655 | R$ 3725 |
Lease [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment, cost | 3,252 | 4,296 | ||
Property and equipment, accumulated depreciation | (823) | (801) | ||
Property and equipment, net | 2,429 | 3,495 | 1,060 | 912 |
Land [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment, cost | 481 | 2,766 | ||
Property and equipment, accumulated depreciation | ||||
Property and equipment, net | 481 | 2,766 | 348 | 261 |
Land [member] | Lease [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment, cost | 6 | |||
Property and equipment, accumulated depreciation | (3) | |||
Property and equipment, net | 3 | |||
Buildings [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment, cost | 704 | 4,034 | ||
Property and equipment, accumulated depreciation | (95) | (205) | ||
Property and equipment, net | 609 | 3,829 | 583 | 437 |
Buildings [member] | Lease [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment, cost | 3,205 | 4,198 | ||
Property and equipment, accumulated depreciation | (782) | (749) | ||
Property and equipment, net | 2,423 | 3,449 | 1,053 | 901 |
Improvements [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment, cost | 3,203 | 3,023 | ||
Property and equipment, accumulated depreciation | (605) | (816) | ||
Property and equipment, net | 2,598 | 2,207 | 1,733 | 1,346 |
Equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment, cost | 1,061 | 2,326 | ||
Property and equipment, accumulated depreciation | (426) | (1,084) | ||
Property and equipment, net | 635 | 1,242 | 416 | 351 |
Facilities [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment, cost | 354 | 477 | ||
Property and equipment, accumulated depreciation | (85) | (147) | ||
Property and equipment, net | 269 | 330 | 221 | 178 |
Furniture and appliances [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment, cost | 513 | 1,163 | ||
Property and equipment, accumulated depreciation | (173) | (562) | ||
Property and equipment, net | 340 | 601 | 226 | 169 |
Construction in progress [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment, cost | 78 | 140 | ||
Property and equipment, accumulated depreciation | ||||
Property and equipment, net | 78 | 140 | 39 | 43 |
Total Property and Equipment [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment, cost | 6,495 | 14,039 | ||
Property and equipment, accumulated depreciation | (1,448) | (2,882) | ||
Property and equipment, net | 5,047 | 11,157 | 3,595 | 2,813 |
Equipment [member] | Lease [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment, cost | 47 | 92 | ||
Property and equipment, accumulated depreciation | (41) | (49) | ||
Property and equipment, net | 6 | 43 | 7 | 11 |
Other [member] | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment, cost | 101 | 110 | ||
Property and equipment, accumulated depreciation | (64) | (68) | ||
Property and equipment, net | R$ 37 | R$ 42 | R$ 29 | R$ 28 |
16 Property, plant and equipm_6
16 Property, plant and equipment (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Property, plant and equipment [abstract] | ||||
Additions | R$ 2788 | R$ 1997 | R$ 1187 | |
Leases | (1,241) | (685) | (210) | |
Capitalized interest | (12) | (11) | (12) | |
Financing of property, plant and equipment - Additions | [1] | (1,437) | (1,217) | (921) |
Financing of property, plant and equipment - Payments | [2] | 1,464 | 1,273 | 863 |
Total | R$ 1562 | R$ 1357 | R$ 907 | |
[1] | Additions relate to the acquisition of operating assets, purchase of land and buildings to expansion activities, building of new stores, improvements of existing distribution centers and stores and investments in equipment and information technology. | |||
[2] | The additions to property, plant and equipment above are presented to reconcile the acquisitions during the year with the amounts presented in the statement of cash flows net of items that did not impact cash flow. |
16 Property, plant and equipm_7
16 Property, plant and equipment (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, plant and equipment [abstract] | |||
Capitalized borrowing costs | R$ 12 | R$ 11 | R$ 12 |
Borrowing costs eligible for capitalization rate | 150.67% | 136.11% | 101.78% |
Cost of goods and services sold | R$ 34 | R$ 29 | R$ 10 |
Description of recovery test of stores operating assets | • Step 1: the carrying amount of properties in rented stores was compared to a sales multiple (35%) representing transactions between retail companies. Stores for which the multiple of sales was lower than their carrying amount and owned stores, a more detailed test is made, as described in Step 2 below. • Step 2: The Company considered the highest value between: a) the discounted cash flows of stores using sales growth average of 5.6% in 2020 (4.5% in 2019) for period exceeding the next five years and a discount rate of 9.8% in 2020 (8.7% in 2019) and; b) appraisal reports drawn up by independent experts for own stores. |
17 Intangible Assets (Details)
17 Intangible Assets (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, beginning | R$ 4288 | R$ 1013 | R$ 749 |
Additions | 78 | 52 | 41 |
Business combination | 3,175 | ||
Amortization | (48) | (23) | (12) |
Write-off | (1) | ||
Conversion adjustment to reporting currency | 770 | 3,175 | |
Exchange rate changes | 71 | ||
Transfers | 1 | 235 | |
Discontinued operation | (4,051) | ||
Intangible assets, ending | 1,037 | 4,288 | 1,013 |
Goodwill [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, beginning | 785 | 616 | 618 |
Additions | |||
Business combination | 165 | ||
Amortization | (2) | ||
Write-off | |||
Conversion adjustment to reporting currency | 38 | ||
Exchange rate changes | 4 | ||
Transfers | 1 | ||
Discontinued operation | (208) | ||
Intangible assets, ending | 616 | 785 | 616 |
Software [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, beginning | 135 | 61 | 51 |
Additions | 72 | 28 | 17 |
Business combination | 60 | ||
Amortization | (40) | (15) | (10) |
Write-off | (1) | ||
Conversion adjustment to reporting currency | 20 | ||
Exchange rate changes | 1 | ||
Transfers | 3 | ||
Discontinued operation | (115) | ||
Intangible assets, ending | 71 | 135 | 61 |
Commercial rights [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, beginning | 314 | 297 | 41 |
Additions | 6 | 24 | 24 |
Business combination | 1 | ||
Amortization | (8) | (8) | |
Conversion adjustment to reporting currency | (1) | ||
Transfers | 232 | ||
Intangible assets, ending | 311 | 314 | 297 |
Tradename [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets, beginning | 3,054 | 39 | 39 |
Additions | |||
Business combination | 2,949 | ||
Conversion adjustment to reporting currency | 713 | ||
Exchange rate changes | 66 | ||
Discontinued operation | (3,728) | ||
Intangible assets, ending | R$ 39 | R$ 3054 | R$ 39 |
17 Intangible Assets (Details N
17 Intangible Assets (Details Narrative) - Software [member] | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [line items] | |
Amortization rate | 12.27% |
Description of discount and growth rate | The discount rate applied to cash flow projections is 9.8% on December 31, 2020 (8.4% on December 31, 2019), and cash flows that exceed the three years period are extrapolated using a growth rate of 4.6% on December 31, 2020 (4.8% on December 31, 2019). |
Bottom of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life (in years) | 5 years |
Top of range [member] | |
Disclosure of detailed information about intangible assets [line items] | |
Useful life (in years) | 10 years |
18 Trade payables, net (Details
18 Trade payables, net (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
TradeAndOtherPayablesLineItems [Line Items] | ||
Trade payables | R$ 5058 | R$ 9770 |
Product suppliers [member] | ||
TradeAndOtherPayablesLineItems [Line Items] | ||
Trade payables | 5,450 | 9,607 |
Service suppliers [member] | ||
TradeAndOtherPayablesLineItems [Line Items] | ||
Trade payables | 96 | 573 |
Bonuses from suppliers [member] | ||
TradeAndOtherPayablesLineItems [Line Items] | ||
Trade payables | R$ 488 | R$ 410 |
19 Financial instruments (Detai
19 Financial instruments (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Net exposure | R$ 11746 | R$ 17100 |
Financial assets - Amortized cost [member] | Related Parties - Assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 178 | 97 |
Financial assets - Amortized cost [member] | Accounts receivable and other accounts receivable [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 117 | 686 |
Financial assets - Amortized cost [member] | Other assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 51 | |
Fair value through income [member] | Borrowings and financing, including derivatives [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (335) | (84) |
Fair value through income [member] | Financial instruments - Fair value hedge - short position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (11) | |
Fair value through income [member] | Financial instruments on suppliers - Fair value hedge - Short [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (8) | |
Fair value through income [member] | Grupo Disco put option [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (466) | |
Fair value through income [member] | Cash and cash equivalents [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 3,532 | 5,026 |
Fair value through income [member] | Financial instruments - fair value hedge- long position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 68 | 40 |
Fair value through income [member] | Others Assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2 | |
Fair value through other comprehensive income [member] | Others Assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 19 | |
Fair value through other comprehensive income [member] | Accounts receivable with credit card companies and sales tickets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 99 | 48 |
Financial liabilities - Other financial liabilities - amortized cost [member] | Related Parties - Liabilities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (41) | (152) |
Financial liabilities - Other financial liabilities - amortized cost [member] | Trade Payables [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (5,058) | (9,770) |
Financial liabilities - Other financial liabilities - amortized cost [member] | Financing through acquisition of assets [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (34) | (101) |
Financial liabilities - Other financial liabilities - amortized cost [member] | Borrowings and Financing [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (897) | (843) |
Financial liabilities - Other financial liabilities - amortized cost [member] | Debentures [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | (6,599) | (7,883) |
Financial liabilities - Other financial liabilities - amortized cost [member] | Lease Liabilities [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial liabilities | R$ 2776 | R$ 3751 |
19 Financial instruments (Det_2
19 Financial instruments (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [abstract] | |||
Borrowings and financing | R$ 7831 | R$ 8821 | |
Cash and cash equivalents | 3,532 | 5,026 | |
Derivative financial instruments | 68 | 40 | |
Net debt | (4,231) | (3,755) | |
Shareholders' equity | R$ 1347 | R$ 9701 | R$ 3024 |
% Net debt over shareholders' equity | 314.00% | 39.00% |
19 Financial instruments (Det_3
19 Financial instruments (Details 2) - Liquidity Risk [member] R$ in Millions | Dec. 31, 2020BRL (R$) |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | R$ 19021 |
Borrowings and Financing [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 1,373 |
Debentures [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 7,410 |
Derivative Financial Instruments [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | (74) |
Lease Liabilities [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 5,254 |
Trade Payables [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 5,058 |
Less than 1 year [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 7,756 |
Less than 1 year [member] | Borrowings and Financing [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 318 |
Less than 1 year [member] | Debentures [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 2,018 |
Less than 1 year [member] | Derivative Financial Instruments [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | (61) |
Less than 1 year [member] | Lease Liabilities [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 423 |
Less than 1 year [member] | Trade Payables [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 5,058 |
1 to 5 years [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 8,336 |
1 to 5 years [member] | Borrowings and Financing [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 1,037 |
1 to 5 years [member] | Debentures [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 5,392 |
1 to 5 years [member] | Derivative Financial Instruments [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | (11) |
1 to 5 years [member] | Lease Liabilities [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 1,918 |
1 to 5 years [member] | Trade Payables [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | |
More than 5 years [Member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 2,929 |
More than 5 years [Member] | Borrowings and Financing [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 18 |
More than 5 years [Member] | Debentures [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | |
More than 5 years [Member] | Derivative Financial Instruments [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | (2) |
More than 5 years [Member] | Lease Liabilities [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow | 2,913 |
More than 5 years [Member] | Trade Payables [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Total financial liabilities under undiscounted cash flow |
19 Financial instruments (Det_4
19 Financial instruments (Details 3) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | R$ 407 | R$ 106 |
Swap with hedge accounting [member] | Hedge purpose (debt) [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | 301 | 750 |
Fair value | 335 | 84 |
Long position [member] | Fixed rate [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | 301 | 95 |
Fair value | 11 | 84 |
Long position [member] | USD + Fixed [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | 106 | 655 |
Fair value | 57 | |
Short position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | (407) | (698) |
Fair value | (73) | |
Net hedge position [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional value | 52 | |
Fair value | R$ 68 | R$ 11 |
19 Financial instruments (Det_5
19 Financial instruments (Details 4) R$ in Millions | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Borrowings and Financing [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial risk (CDI variation) | CDI + 3.58 per year |
Financial Baseline | R$ 910 |
Financial projected scenario 1 | (937) |
Financial projected scenario 2 | (944) |
Financial projected scenario 3 | R$ 951 |
Fixed rate swap contract (short position) [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial risk (CDI variation) | CDI + 0.04 per year |
Financial Baseline | R$ 62 |
Financial projected scenario 1 | (176) |
Financial projected scenario 2 | (179) |
Financial projected scenario 3 | R$ 182 |
Foreign exchange swap contract (short position) [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial risk (CDI variation) | CDI +0.59 per year |
Financial Baseline | R$ 206 |
Financial projected scenario 1 | (210) |
Financial projected scenario 2 | (212) |
Financial projected scenario 3 | R$ 214 |
Debentures [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial risk (CDI variation) | CDI + 2.07 per year |
Financial Baseline | R$ 6573 |
Financial projected scenario 1 | (6,763) |
Financial projected scenario 2 | (6,811) |
Financial projected scenario 3 | (6,858) |
Total net effect (loss) [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial Baseline | (7,751) |
Financial projected scenario 1 | (8,086) |
Financial projected scenario 2 | (8,146) |
Financial projected scenario 3 | R$ 8205 |
Cash Equivalents [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial risk (CDI variation) | 96.96% of CDI |
Financial Baseline | R$ 3532 |
Financial projected scenario 1 | 3,611 |
Financial projected scenario 2 | 3,630 |
Financial projected scenario 3 | 3,650 |
Net exposure (loss) [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial Baseline | (4,219) |
Financial projected scenario 1 | (4,475) |
Financial projected scenario 2 | (4,516) |
Financial projected scenario 3 | (4,555) |
Net effect (loss) [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Financial projected scenario 1 | 256 |
Financial projected scenario 2 | (297) |
Financial projected scenario 3 | R$ 336 |
19 Financial instruments (Det_6
19 Financial instruments (Details 5) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | R$ 7664 | R$ 9199 |
Fair value | (6,697) | (8,548) |
Trade receivables with credit cards [member] | Level 2 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | 99 | 48 |
Fair value | 99 | 48 |
Swaps of annual rates between currencies [member] | Level 2 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | 57 | |
Fair value | 57 | |
Interest rate swaps [member] | Level 2 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | 11 | 40 |
Fair value | 11 | 10 |
Loans and financing (fair value) [member] | Level 2 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | (335) | (95) |
Fair value | (335) | (84) |
Loans and financing (amortized cost) [member] | Level 2 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | (7,496) | (8,726) |
Fair value | (6,529) | (8,056) |
Grupo Disco put option [member] | Level 2 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying amount | (466) | |
Fair value | R$ 466 |
19 Financial instruments (Det_7
19 Financial instruments (Details 6) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | ||
Outstanding derivative financial instruments | R$ 407 | R$ 106 |
USD - COP [member] | Exito Group [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Outstanding derivative financial instruments | 11 | |
Derivatives [member] | USD - BRL [member] | 2021 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Outstanding derivative financial instruments | R$ 57 | |
Notional value | US$ 50 | |
Derivatives [member] | Interest rate swaps registered at CETIP - Fixed x CDI [member] | 2027 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Outstanding derivative financial instruments | R$ 5 | 5 |
Notional value | R$ 54 | |
Derivatives [member] | Interest rate swaps registered at CETIP - Fixed rate x CDI [member] | 2027 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Outstanding derivative financial instruments | R$ 6 | 5 |
Notional value | R$ 52 | |
Derivatives [member] | Derivatives - Fair value hedge - Brazil [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Outstanding derivative financial instruments | R$ 68 | 10 |
Derivatives [member] | USD - COP [member] | 2020 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Outstanding derivative financial instruments | 20 | |
Derivatives [member] | USD - COP [member] | From 1 to 2 years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Outstanding derivative financial instruments | 1 | |
Notional value | US$ 2 | |
Derivatives [member] | Interest rate - COP [member] | 2020 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Outstanding derivative financial instruments | (1) | |
Notional value | COP 49,950 | |
Derivatives [member] | Interest rate - COP [member] | From 1 to 2 years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Outstanding derivative financial instruments | (1) | |
Notional value | COP 383,235 | |
Derivatives [member] | Interest rate - COP [member] | 2021 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Outstanding derivative financial instruments | ||
Derivatives [member] | Suppliers - USD - COP [member] | 2020 [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Outstanding derivative financial instruments | R$ 8 |
19 Financial instruments (Det_8
19 Financial instruments (Details 7) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | ||
Total current | R$ 2063 | R$ 1443 |
Total non-current | 5,700 | 7,338 |
Total | 7,763 | 8,781 |
Current assets | 57 | 29 |
Non-current assets | 11 | 11 |
Current liabilities | 2,120 | 1,472 |
Non-current liabilities | 5,711 | 7,349 |
Debentures and promissory notes - Debentures [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current | 1,864 | 1,189 |
Total non-current | R$ 4780 | 6,773 |
Weighted average rate | CDI + 2.44 per year | |
Debentures and promissory notes- Borrowing costs [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current | R$ 24 | (33) |
Total non-current | (21) | (46) |
Debentures and promissory notes [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current | 1,840 | 1,156 |
Total non-current | 4,759 | 6,727 |
Borrowing and financing in domestic currency - BNDES [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current | ||
Total non-current | 7 | |
Weighted average rate | 3.72% per year | |
Borrowing and financing denominated in domestic currency - Working capital [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current | R$ 12 | 14 |
Total non-current | R$ 60 | 70 |
Weighted average rate | TR + 9.80% | |
Borrowing and financing denominated in domestic currency - Working capital [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current | R$ 9 | |
Total non-current | R$ 901 | 500 |
Weighted average rate | CDI + 1.97 per year | |
Borrowing and financing denominated in domestic currency -Swap contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total non-current | R$ 11 | (10) |
Weighted average rate | CDI + 0.04 per year | |
Borrowing and financing denominated in domestic currency - Borrowing costs [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current | R$ 5 | (3) |
Total non-current | (9) | (10) |
Total domestic currency [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current | 16 | 18 |
Total non-current | 941 | 566 |
In foreign currency - Working capital [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current | 264 | 287 |
Total non-current | 46 | |
Weighted average rate | USD + 2.35% per year | |
In foreign currency - Borrowing cost [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total non-current | (1) | |
In foreign currency - Swap contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current | R$ 57 | |
Weighted average rate | CDI +0.59 per year | |
In foreign currency - Swap contracts [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current | (18) | |
Weighted average rate | IBR 3M+3.7% | |
Total foreign currency [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total current | R$ 207 | 269 |
Total non-current | 45 | |
Borrowing and financing denominated in domestic currency - BNDES [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total non-current | R$ 16 | |
Weighted average rate | 4.31% per year |
19 Financial instruments (Det_9
19 Financial instruments (Details 8) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments [abstract] | |||
Borrowings and financing, beginning | R$ 8781 | R$ 726 | R$ 471 |
Funding - working capital | 2,852 | 9,395 | |
Interest provision | 486 | 246 | |
Additions | 417 | ||
Accrued interest | 30 | ||
Swap contracts | (60) | (16) | (50) |
Mark-to-market | 12 | (46) | 10 |
Exchange rate and monetary variation | 57 | (29) | 63 |
Debt modification impact | 71 | ||
Borrowing costs | 42 | 21 | |
Interest amortization | (549) | (116) | (24) |
Principal amortization | (2,543) | (6,102) | (175) |
Swap amortization | 13 | 95 | (7) |
Derivative swap amortization | 4,527 | ||
Conversion adjustment to reporting currency | 172 | 80 | |
Discontinued operations | (1,571) | ||
Adjustment related to IFRS 16 | (9) | ||
Borrowings and financing, ending | R$ 7763 | R$ 8781 | R$ 726 |
19 Financial instruments (De_10
19 Financial instruments (Details 9) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about financial instruments [line items] | ||
Schedule of noncurrent maturities | R$ 5730 | |
Borrowing Cost | (30) | |
Total noncurrent | 952 | R$ 622 |
From 1 to 2 years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Schedule of noncurrent maturities | 2,484 | |
From 2 to 3 years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Schedule of noncurrent maturities | 2,790 | |
From 3 to 4 years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Schedule of noncurrent maturities | 224 | |
From 4 to 5 years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Schedule of noncurrent maturities | 224 | |
More than 5 years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Schedule of noncurrent maturities | R$ 8 |
19 Financial instruments (De_11
19 Financial instruments (Details 10) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||||
Borrowing costs | R$ 45 | R$ 79 | ||
Borrowings and financing, total | 7,763 | 8,781 | R$ 726 | R$ 471 |
Borrowings and financing, current liabilities | 1,840 | 1,156 | ||
Borrowings and financing, noncurrent liabilities | R$ 4759 | 6,727 | ||
First Issue of Promissory Notes - 1st series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 50 | |||
Outstanding debentures | R$ 1 | |||
Issuance date | Jul. 4, 2019 | |||
Maturity date | Jul. 3, 2020 | |||
Annual financial charges | CDI + 0.72% per year | |||
Unit price | ||||
Borrowings and financing, total | 52 | |||
First Issue of Promissory Notes 2nd series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 50 | |||
Outstanding debentures | R$ 1 | |||
Issuance date | Jul. 4, 2019 | |||
Maturity date | Jul. 5, 2021 | |||
Annual financial charges | CDI + 0.72% per year | |||
Unit price | R$ 52998286 | |||
Borrowings and financing, total | R$ 53 | 52 | ||
First Issue of Promissory Notes - 3rd series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 50 | |||
Outstanding debentures | R$ 1 | |||
Issuance date | Jul. 4, 2019 | |||
Maturity date | Jul. 4, 2022 | |||
Annual financial charges | CDI + 0.72% per year | |||
Unit price | R$ 52998286 | |||
Borrowings and financing, total | R$ 53 | 52 | ||
First issue of promissory notes - 4th series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 250 | |||
Outstanding debentures | R$ 5 | |||
Issuance date | Jul. 4, 2019 | |||
Maturity date | Jul. 4, 2023 | |||
Annual financial charges | CDI + 0.72% per year | |||
Unit price | R$ 52998286 | |||
Borrowings and financing, total | R$ 267 | 258 | ||
First Issue of Promissory Notes - 5th series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 200 | |||
Outstanding debentures | R$ 4 | |||
Issuance date | Jul. 4, 2019 | |||
Maturity date | Jul. 4, 2024 | |||
Annual financial charges | CDI + 0.72% per year | |||
Unit price | R$ 52998286 | |||
Borrowings and financing, total | R$ 214 | 206 | ||
First Issue of Promissory Notes - 6th series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 200 | |||
Outstanding debentures | R$ 4 | |||
Issuance date | Jul. 4, 2019 | |||
Maturity date | Jul. 4, 2025 | |||
Annual financial charges | CDI + 0.72% per year | |||
Unit price | R$ 52998286 | |||
Borrowings and financing, total | R$ 213 | 206 | ||
First Issue of Debentures- 1st series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 2000 | |||
Outstanding debentures | R$ 200000 | |||
Issuance date | Sep. 4, 2019 | |||
Maturity date | Aug. 20, 2020 | |||
Annual financial charges | CDI + 1.60% per year | |||
Unit price | ||||
Borrowings and financing, total | 1,001 | |||
First Issue of Debentures - 2nd series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 2000 | |||
Outstanding debentures | R$ 200000 | |||
Issuance date | Sep. 4, 2019 | |||
Maturity date | Aug. 20, 2021 | |||
Annual financial charges | CDI + 1.74% per year | |||
Unit price | R$ 876 | |||
Borrowings and financing, total | R$ 1762 | 2,044 | ||
First Issue of Debentures - 3rd series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 2000 | |||
Outstanding debentures | R$ 200000 | |||
Issuance date | Sep. 4, 2019 | |||
Maturity date | Aug. 20, 2022 | |||
Annual financial charges | CDI + 1.95% per year | |||
Unit price | R$ 1004 | |||
Borrowings and financing, total | R$ 2033 | 2,045 | ||
First Issue of Debentures - 4th series [member] | ||||
Disclosure of detailed information about borrowings [line items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 2000 | |||
Outstanding debentures | R$ 200000 | |||
Issuance date | Sep. 4, 2019 | |||
Maturity date | Aug. 20, 2023 | |||
Annual financial charges | CDI + 2.20% per year | |||
Unit price | R$ 1005 | |||
Borrowings and financing, total | R$ 2049 | R$ 2046 |
19 Financial instruments (De_12
19 Financial instruments (Details Narrative) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020BRL (R$)Number | Dec. 31, 2019BRL (R$) | Dec. 31, 2018BRL (R$) | Sep. 30, 2019BRL (R$) | |
Disclosure of detailed information about financial instruments [line items] | ||||
Notional value | R$ 407 | R$ 106 | ||
Fair value receivable | 68 | 11 | ||
Fair value hedge gain | R$ 68 | 30 | R$ 69 | |
Weighted exchange rate | Number | 5.64 | |||
weighted interest rate | 1.96% | |||
Nominal value | R$ 1840 | R$ 1156 | ||
Annual weighted average rate | 9.72% | 10.73% | ||
Description of financial covenants | In connection with the debentures and promissory notes issued and part of loan operations denominated in foreign currencies, the Company is required to maintain certain financial ratios. These ratios are calculated quarterly based on the Company’s consolidated financial statements drawn up in accordance with the accounting practices adopted in Brazil, as follows: (i) consolidated net debt / equity less than or equal to 4.5 not exceeding equity; and (ii) consolidated net debt/EBITDA ratio should be lower than or equal to 3.0. On December 31, 2020, the Company was compliant with these ratios. | |||
CDI [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Annual weighted average rate | 2.76% | 5.96% | ||
Bottom of range [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Percentage of deterioration | 25.00% | |||
Top of range [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Percentage of deterioration | 50.00% | |||
1st issue of promissory notes in 6 series [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Nominal value | R$ 800 | |||
1st issue of promissory notes in 6 series [member] | Bottom of range [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Nominal value | 50 | |||
1st issue of promissory notes in 6 series [member] | Top of range [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Nominal value | R$ 250 | |||
1st issue of non-convertible debentures [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Nominal value | R$ 8000 | |||
1st issue of non-convertible debentures [member] | Exito [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Nominal value | R$ 2000 | |||
1st issue of non-convertible debentures [member] | Bottom of range [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Maturity term | 1 year | |||
1st issue of non-convertible debentures [member] | Top of range [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Maturity term | 4 years |
20 Provision for legal procee_3
20 Provision for legal proceedings (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of other provisions [line items] | |||
Provision for contingencies, beginning | R$ 349 | R$ 236 | R$ 284 |
Additions | 148 | 41 | 20 |
Reversals | (71) | (22) | (66) |
Payments | (41) | (22) | (6) |
Monetary correction | 12 | 11 | 4 |
Conversion adjustment to reporting currency | 24 | ||
Business combinations | 103 | ||
Discontinued operation | (139) | ||
Exchange rate changes | 2 | ||
Provision for contingencies, ending | 282 | 349 | 236 |
Tax [member] | |||
Disclosure of other provisions [line items] | |||
Provision for contingencies, beginning | 221 | 147 | 199 |
Additions | 27 | 16 | 2 |
Reversals | (9) | (10) | (49) |
Payments | (1) | (13) | |
Monetary correction | 1 | 3 | (5) |
Conversion adjustment to reporting currency | 18 | ||
Business combinations | 76 | ||
Discontinued operation | (88) | ||
Exchange rate changes | 2 | ||
Provision for contingencies, ending | 169 | 221 | 147 |
Social security and labor [member] | |||
Disclosure of other provisions [line items] | |||
Provision for contingencies, beginning | 75 | 53 | 52 |
Additions | 42 | 12 | 8 |
Reversals | (43) | (8) | (11) |
Payments | (5) | (2) | (2) |
Monetary correction | 8 | 7 | 6 |
Conversion adjustment to reporting currency | 2 | ||
Business combinations | 13 | ||
Discontinued operation | (16) | ||
Exchange rate changes | |||
Provision for contingencies, ending | 63 | 75 | 53 |
Civil [member] | |||
Disclosure of other provisions [line items] | |||
Provision for contingencies, beginning | 53 | 36 | 33 |
Additions | 79 | 13 | 10 |
Reversals | (19) | (4) | (6) |
Payments | (35) | (7) | (4) |
Monetary correction | 3 | 1 | 3 |
Conversion adjustment to reporting currency | 4 | ||
Business combinations | 14 | ||
Discontinued operation | (35) | ||
Exchange rate changes | |||
Provision for contingencies, ending | R$ 50 | R$ 53 | R$ 36 |
20 Provision for legal procee_4
20 Provision for legal proceedings (Details 1) R$ in Millions | Dec. 31, 2020BRL (R$) |
ProvisionForContingenciesLineItems [Line Items] | |
Guarantees | R$ 430 |
Tax [member] | |
ProvisionForContingenciesLineItems [Line Items] | |
Guarantees | 308 |
Labor [member] | |
ProvisionForContingenciesLineItems [Line Items] | |
Guarantees | 101 |
Civil and others [member] | |
ProvisionForContingenciesLineItems [Line Items] | |
Guarantees | 21 |
Real properties [member] | |
ProvisionForContingenciesLineItems [Line Items] | |
Guarantees | 18 |
Real properties [member] | Tax [member] | |
ProvisionForContingenciesLineItems [Line Items] | |
Guarantees | 18 |
Real properties [member] | Labor [member] | |
ProvisionForContingenciesLineItems [Line Items] | |
Guarantees | |
Real properties [member] | Civil and others [member] | |
ProvisionForContingenciesLineItems [Line Items] | |
Guarantees | |
Letter of guarantees [Member] | |
ProvisionForContingenciesLineItems [Line Items] | |
Guarantees | 412 |
Letter of guarantees [Member] | Tax [member] | |
ProvisionForContingenciesLineItems [Line Items] | |
Guarantees | 290 |
Letter of guarantees [Member] | Labor [member] | |
ProvisionForContingenciesLineItems [Line Items] | |
Guarantees | 101 |
Letter of guarantees [Member] | Civil and others [member] | |
ProvisionForContingenciesLineItems [Line Items] | |
Guarantees | R$ 21 |
20 Provision for legal procee_5
20 Provision for legal proceedings (Details 2) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of other provisions [line items] | ||
Judicial deposits | R$ 134 | R$ 121 |
Restricted deposits for legal proceedings [member] | ||
Disclosure of other provisions [line items] | ||
Judicial deposits | 134 | 121 |
Restricted deposits for legal proceedings [member] | Tax [member] | ||
Disclosure of other provisions [line items] | ||
Judicial deposits | 64 | 69 |
Restricted deposits for legal proceedings [member] | Labor [member] | ||
Disclosure of other provisions [line items] | ||
Judicial deposits | 67 | 43 |
Restricted deposits for legal proceedings [member] | Civil and others [member] | ||
Disclosure of other provisions [line items] | ||
Judicial deposits | R$ 3 | R$ 9 |
20 Provision for legal procee_6
20 Provision for legal proceedings (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of other provisions [line items] | ||
Description of tax scrutiny period | Pursuant to prevailing tax laws, municipal, federal, state taxes and social security contributions are under scrutiny at periods varying between 5 and 30 years. | |
Civil [member] | ||
Disclosure of other provisions [line items] | ||
Restricted deposits for legal proceeding | R$ 23 | R$ 28 |
Social security and labor [member] | ||
Disclosure of other provisions [line items] | ||
Provision for contingencies accrued amount | 63 | 75 |
Tax [member] | ||
Disclosure of other provisions [line items] | ||
Provision for contingencies accrued amount | 169 | 221 |
Tax contingent liability [member] | ||
Disclosure of other provisions [line items] | ||
Other litigation | 24 | 20 |
Provision for lawsuits | 17 | 19 |
Contingent liabilities possible losses amount | 2,408 | 2,353 |
Contingent liabilities assessments prior amount | 446 | 457 |
Contingent liabilities tax proceedings | 632 | 666 |
Contingent liabilities tax assessments amount | 1,235 | 1,157 |
Advertising expenses and various fees | 13 | 13 |
Contingent liabilities estimate possible losses amount | R$ 21 | 21 |
Guarantees [Member] | ||
Disclosure of other provisions [line items] | ||
Percentage for cost of letter of guarantees | 0.45% | |
PIS/COFINS [member] | ||
Disclosure of other provisions [line items] | ||
Potential credit amount | R$ 117 | |
Civil and other [member] | ||
Disclosure of other provisions [line items] | ||
Provision for lawsuits | 5 | 8 |
Provision for contingencies remaining amount | R$ 50 | R$ 53 |
21 Leases (Details)
21 Leases (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial lease liabilities - minimum payments | ||
Present value of finance lease agreements | R$ 2776 | R$ 3751 |
Future financing charges | 2,478 | 2,347 |
Gross amount of financial lease agreements | 5,254 | 6,098 |
PIS and COFINS embedded in the present value of lease agreements | 169 | 115 |
PIS and COFINS embedded in the gross value of lease agreements | 319 | 214 |
Less than 1 year [Member] | ||
Financial lease liabilities - minimum payments | ||
Present value of finance lease agreements | 172 | 404 |
1 to 5 years [Member] | ||
Financial lease liabilities - minimum payments | ||
Present value of finance lease agreements | 866 | 1,323 |
More than 5 years [member] | ||
Financial lease liabilities - minimum payments | ||
Present value of finance lease agreements | R$ 1738 | R$ 2024 |
21 Leases (Details 1)
21 Leases (Details 1) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases | |||
Balance as of beginnning | R$ 3751 | R$ 1180 | R$ 1009 |
Funding - Lease | 1,240 | 682 | 210 |
Remeasurement | 621 | 138 | 52 |
Interest provision | 415 | 170 | 124 |
Exchange rate and monetary variation | 1 | 1 | |
Amortizations | (756) | (267) | (216) |
Write-off due to early termination of agreement | (518) | (1) | |
Company acquisition | 1,817 | ||
Transfer to parent company | 9 | ||
Conversion currency adjustment | 433 | 32 | |
Discontinued operation | (2,416) | ||
Corporate restructuring | (4) | ||
Balance as of end | 2,776 | 3,751 | R$ 1180 |
Current | 172 | 404 | |
Non-current | R$ 2604 | R$ 3347 |
21 Leases (Details 2)
21 Leases (Details 2) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Variables (0.5% e 1.6% of sales) [member] | |||
ArrangementsInvolvingLegalFormOfLeasesAxisLineItems [Line Items] | |||
Expenses (revenues) for the period: | R$ 16 | R$ 19 | |
Subleases [member] | |||
ArrangementsInvolvingLegalFormOfLeasesAxisLineItems [Line Items] | |||
Expenses (revenues) for the period: | [1] | R$ 22 | R$ 20 |
[1] | Refers mainly to revenue from lease agreements receivable from commercial galleries. |
21 Leases (Details Narrative)
21 Leases (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of fair value measurement of liabilities [line items] | ||
Leases terms of contracts | The terms of the contracts vary substantially between 5 and 20 years. | |
Description of lease terms for a right to use | using the exemptions provided for contracts with a term of less than twelve months and an individual asset value below US$ 5,000 (five thousand dollars). | |
Leasing agreements | R$ 2776 | R$ 3751 |
Incremental interest rate | 9.72% | 10.73% |
International subsidiaries [member] | ||
Disclosure of fair value measurement of liabilities [line items] | ||
Contractual Term | 11 years 7 months 6 days |
22 Deferred revenues (Details)
22 Deferred revenues (Details) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Revenues | ||
Rental of spaces in stores | R$ 186 | R$ 132 |
Checkstand | 29 | 20 |
Gift card | 2 | 95 |
Revenue with credit card operators | 15 | |
Deferred revenues - Exito Group | 8 | |
Others | 11 | 9 |
Total | 228 | 279 |
Current | 227 | 277 |
Non-current | R$ 1 | R$ 2 |
23 Income tax and social cont_3
23 Income tax and social contribution (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax And Social Contribution Abstract | |||
Earnings before income tax and social contribution | R$ 1625 | R$ 1502 | R$ 1553 |
Expense of income tax and social contribution | (553) | (511) | (528) |
Adjustments to reflect the effective rate | |||
Tax fines | (1) | (2) | (1) |
Share of profit | 105 | 84 | 39 |
Tax benefits | 29 | ||
Other permanent differences | (16) | 3 | 13 |
Effective income tax | (436) | (426) | (477) |
Income tax and social contribution for the year | |||
Current | (704) | (293) | (302) |
Deferred | 268 | (133) | (175) |
Income tax and social contribution expenses | R$ 436 | R$ 426 | R$ 477 |
Effective rate | 26.80% | 28.40% | 30.70% |
23 Income tax and social cont_4
23 Income tax and social contribution (Details 1) - BRL (R$) R$ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | |||
Deferred income tax and social contribution, liabilities | (82) | (1,191) | |
Deferred income tax and social contribution, net | (82) | (1,191) | R$ 265 |
Tax losses [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 253 | ||
Deferred income tax and social contribution, liabilities | |||
Deferred income tax and social contribution, net | 253 | ||
Provision for legal proceedings [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 81 | 106 | |
Deferred income tax and social contribution, liabilities | |||
Deferred income tax and social contribution, net | 81 | 106 | |
Exchange rate variation [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 26 | 31 | |
Deferred income tax and social contribution, liabilities | |||
Deferred income tax and social contribution, net | 26 | 31 | |
Goodwill tax amortization [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | |||
Deferred income tax and social contribution, liabilities | (315) | (480) | |
Deferred income tax and social contribution, net | (315) | (480) | |
Mark-to-market adjustment [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | |||
Deferred income tax and social contribution, liabilities | (2) | (3) | |
Deferred income tax and social contribution, net | (2) | (3) | |
Property, plant and equipment, intangible and investment properties [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 20 | ||
Deferred income tax and social contribution, liabilities | (1,217) | ||
Deferred income tax and social contribution, net | 20 | (1,217) | |
Unrealized gains with tax credits [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | |||
Deferred income tax and social contribution, liabilities | (60) | (130) | |
Deferred income tax and social contribution, net | (60) | (130) | |
Cash flow hedge [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | |||
Deferred income tax and social contribution, liabilities | (20) | (78) | |
Deferred income tax and social contribution, net | (20) | (78) | |
Lease net of right of use [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 131 | 105 | |
Deferred income tax and social contribution, liabilities | |||
Deferred income tax and social contribution, net | 131 | 105 | |
Presumed tax on equity - exito group [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 192 | ||
Deferred income tax and social contribution, liabilities | |||
Deferred income tax and social contribution, net | 192 | ||
Others [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 57 | 30 | |
Deferred income tax and social contribution, liabilities | |||
Deferred income tax and social contribution, net | 57 | 30 | |
Gross deferred income tax and social contribution assets (liabilities) [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 315 | 717 | |
Deferred income tax and social contribution, liabilities | (397) | (1,908) | |
Deferred income tax and social contribution, net | (82) | (1,191) | |
Compensation [member] | |||
IncomeTaxAndSocialContributionLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | (315) | (717) | |
Deferred income tax and social contribution, liabilities | 315 | 717 | |
Deferred income tax and social contribution, net |
23 Income tax and social cont_5
23 Income tax and social contribution (Details 2) R$ in Millions | Dec. 31, 2020BRL (R$) |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Recovery of deferred tax assets | R$ 315 |
Up to one year [member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Recovery of deferred tax assets | 69 |
From 1 to 2 years [member] | |
IncomeTaxAndSocialContributionLineItems [Line Items] | |
Recovery of deferred tax assets | R$ 246 |
23 Income tax and social cont_6
23 Income tax and social contribution (Details 3) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax And Social Contribution Abstract | |||
At the beginning of the period | R$ 1191 | R$ 265 | R$ 136 |
Benefits (expenses) in the year | 372 | (162) | (175) |
Corporate reorganization | 45 | ||
Deconsolidation | 883 | ||
Purchase partnership | (747) | ||
Conversion currency adjustment | (18) | ||
Exchange variation | (193) | ||
IFRS 16 - related adjustment | 46 | ||
Other | 2 | 1 | |
At the end of the period | R$ 82 | R$ 1191 | R$ 265 |
23 Income tax and social cont_7
23 Income tax and social contribution (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax And Social Contribution Abstract | |
Description of income taxes calculated based on taxable income | 15% on taxable income plus an additional 10% on annual taxable income exceeding R$ 240,000 for IRPJ, and 9% for CSLL. |
Taxable income percentage | 30.00% |
24 Shareholders' equity (Detail
24 Shareholders' equity (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of changes in equity [abstract] | |||
Net income for the year | R$ 1398 | R$ 1047 | R$ 1076 |
% Legal reserve | 5.00% | 5.00% | 5.00% |
Legal reserve for the year | R$ 5 | R$ 52 | R$ 55 |
Minimum mandatory dividends - 25% | 349 | 1 | 1 |
Interest on capital paid intermediaries | 264 | 247 | 115 |
Minimum mandatory dividends paid in the form of interest on shareholder's equity | R$ 85 | R$ 1 | R$ 1 |
24 Shareholders' equity (Deta_2
24 Shareholders' equity (Details 1) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of changes in equity [abstract] | ||
Number of shares | 268,352 | 267,997 |
Balance of effective stock options granted in force | 1,468 | 2,153 |
Maximum percentage of dilution | 0.55% | 0.80% |
24 Shareholders' equity (Deta_3
24 Shareholders' equity (Details 2) | 12 Months Ended | ||
Dec. 31, 2020NumberR$ / shares | Dec. 31, 2019NumberR$ / shares | Dec. 31, 2018NumberR$ / shares | |
Shares | |||
Granted in the year | Number | (70) | 765 | 1,378 |
Canceled in the year | Number | (126) | (229) | |
Exercised in the year | Number | (489) | (1,080) | (697) |
Expired in the year | Number | (126) | (161) | (236) |
Open at year end | Number | 1,468 | 2,153 | 2,755 |
Total exercised on December 31, 2018 | Number | 1,468 | 2,153 | 2,755 |
Weighted average exercise price | |||
Granted in the year | R$ / shares | R$ 42.59 | R$ 30.55 | R$ 30.91 |
Canceled in the year | R$ / shares | 31.75 | 38.64 | |
Exercised in the year | R$ / shares | 23.93 | 21.55 | 31.96 |
Expired in the year | R$ / shares | 42.44 | 16.74 | 68.62 |
Open at year end | R$ / shares | 30.71 | 30.25 | 26.03 |
Total exercised on December 31, 2019 | R$ / shares | R$ 30.71 | R$ 30.25 | R$ 26.03 |
Weighted average remaining term | |||
Open at year end | 10 months 17 days | 1 year 6 months | 1 year 4 months 13 days |
Total exercised on December 31, 2019 | 10 months 17 days | 1 year 6 months | 1 year 4 months 13 days |
24 Shareholders' equity (Deta_4
24 Shareholders' equity (Details Narrative) R$ / shares in Units, R$ in Millions | Dec. 31, 2020BRL (R$)NumberR$ / sharesshares | Dec. 12, 2020BRL (R$) | Sep. 30, 2020BRL (R$)Numbershares | Sep. 29, 2020BRL (R$) | Mar. 31, 2020BRL (R$)Numbershares | Dec. 26, 2019BRL (R$) | Dec. 31, 2020BRL (R$)R$ / sharesshares | Dec. 31, 2019BRL (R$)R$ / sharesshares | Dec. 31, 2018BRL (R$) | Feb. 11, 2019BRL (R$) |
Issued capital | R$ 761 | R$ 761 | R$ 4421 | |||||||
Number of shares issued | shares | 42,000,000 | 87,000,000 | 258,000,000 | |||||||
Number of real estate properties | Number | 2 | 4 | 3 | |||||||
Real estate properties value | R$ 45 | R$ 121 | R$ 57 | |||||||
Capital stock increase amount | 500 | R$ 146 | R$ 150 | 4,673 | ||||||
Payment of interest on equity, gross | R$ 310 | R$ 247 | ||||||||
Payment of interest on equity, tax | 46 | 37 | ||||||||
Payment of interest on equity, net | R$ 264 | R$ 210 | ||||||||
Dividend payable | R$ 85 | R$ 85 | R$ 11 | R$ 50 | ||||||
Dividend percenatge | 25.00% | 1.00% | 1.00% | |||||||
Legal reserve description | This is recorded by appropriating 5% of the net income of each fiscal year, observing the 20% limit of capital. | |||||||||
Expectation of remaining average life | 10 months 17 days | 1 year 6 months | ||||||||
Weighted average share price | R$ / shares | R$ 58.78 | R$ 56.41 | ||||||||
Amounts recorded in the statement of operations | R$ 5 | R$ 2 | R$ 8 | |||||||
Foreign exchange variation of investment | 1,888 | |||||||||
Effects of Changes in Interest Rates | R$ 171 | |||||||||
Top of range [member] | ||||||||||
Authorized share capital increased | shares | 400,000,000 | 400,000,000 | ||||||||
Compensation plan [member] | ||||||||||
Description of vesting requirement | Options granted to a participant vest on a period of 36 (thirty-six) months from the date of grant (""grace period""), except with formal authorization by the GPA, and may only be exercised in the period beginning on the first day of the 37th (thirty-seventh) month from the date of grant, through the 42nd (forty-second) month from the date of grant (""exercise period""). | |||||||||
Exercise price per share | R$ / shares | R$ 0.01 | |||||||||
Precluded period | 180 days | |||||||||
Stock option plan [member] | ||||||||||
Description of vesting requirement | Options granted to a participant vest in a period of 36 (thirty-six) months from the grant date (""grace period""), and may only be exercised in the period beginning on the first day of the 37th (thirty-seventh) month as from the grant date, and ends on the last day of the 42nd (forty-second) month as of the grant date (""exercise period""), provided the exceptions included in the Compensation Plan. | |||||||||
Description of series of options | For each series of options grant within the scope of the stock option plan, the exercise price of each stock option shall correspond to 80% of the average closing price of the GPA preferred shares traded over the last twenty (20) trading sessions of the B3, before the call notice for the Committee’s meeting to resolve on the grant of options of that series (“exercise price”). | |||||||||
Companhia Brasileira de Distribuicao ("GPA") [member] | ||||||||||
Number of shares issued | shares | 19,000,000 | 19,000,000 | ||||||||
Capital stock increase amount | R$ 140 | |||||||||
Companhia Brasileira de Distribuicao ("GPA") [member] | Stock option plan [member] | ||||||||||
Description of vesting requirement | On both plans, there is a vesting period of 36 months from the date the Board of Directors approved the issuance of the series. The plans will be exercisable in until 6 months after the end of the vesting period. | |||||||||
Percenatge of total shares issued | 0.70% | |||||||||
Companhia Brasileira de Distribuicao ("GPA") [member] | Stock option plan [member] | GPA [Member] | ||||||||||
Preferred shares held in treasury | shares | 239,000 | |||||||||
Shares issued price per share | R$ / shares | R$ 75.05 | R$ 75.05 | ||||||||
Companhia Brasileira de Distribuicao ("GPA") [member] | B5 and C5 series [member] | ||||||||||
Description of option pricing model | Black & Scholes | |||||||||
Expectation of dividends | 0.41% | |||||||||
Expectation of volatility | 36.52% | |||||||||
Weighted average interest rate without risk | 9.29% | |||||||||
Companhia Brasileira de Distribuicao ("GPA") [member] | B6 and C6 series [member] | ||||||||||
Description of option pricing model | Black & Scholes | |||||||||
Expectation of dividends | 0.67% | |||||||||
Expectation of volatility | 32.74% | |||||||||
Weighted average interest rate without risk | 7.32% |
25 Net operating revenue (Detai
25 Net operating revenue (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue [abstract] | |||
Goods | R$ 39436 | R$ 30487 | R$ 25075 |
Services rendered and others | 100 | 87 | 17 |
Gross operating revenue | 39,536 | 30,574 | 25,092 |
Returns and sales cancellation | (73) | (57) | (49) |
Taxes | (3,420) | (2,435) | (2,026) |
Revenue deductions | (3,493) | (2,492) | (2,075) |
Net operating revenue | R$ 36043 | R$ 28082 | R$ 23017 |
26 Expenses by nature (Details
26 Expenses by nature (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
ExpenseByNatureLineItems [Line Items] | |||
Cost of sales | R$ 30129 | R$ 23349 | R$ 18845 |
Selling expenses | (2,811) | (2,273) | (1,908) |
General and administrative expenses | 435 | 352 | 275 |
Operating expense | (33,375) | (25,974) | (21,028) |
Cost of inventories [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Operating expense | (29,641) | (22,929) | (18,412) |
Personnel expenses [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Operating expense | (2,135) | (1,691) | (1,376) |
Outsourced services [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Operating expense | (224) | (198) | (152) |
Selling expenses [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Operating expense | (511) | (408) | (331) |
Functional expenses [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Operating expense | (600) | (546) | (615) |
Other expenses [member] | |||
ExpenseByNatureLineItems [Line Items] | |||
Operating expense | R$ 264 | R$ 202 | R$ 142 |
27 Other operating expenses, _3
27 Other operating expenses, net (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Other Operating Expenses Net | ||||
Result with property, plant and equipment | [1] | R$ 42 | R$ 5 | R$ 39 |
Reversal (provision) for legal proceedings | (18) | (53) | 40 | |
Restructuring expenses | (71) | 37 | ||
Covid-19 spending on prevention | [2] | (134) | ||
Indemnity assets | 168 | |||
Other | (4) | |||
Total | R$ 97 | R$ 11 | R$ 3 | |
[1] | The result from fixed assets was mainly impacted by the Sale and Leaseback operations described in note 1.5, whose gain totaled R$52, which was offset by the losses of write off incurred in the year. | |||
[2] | The expenses incurred as a result of the COVID-19 pandemic refer to the purchase of items of individual protection and adequacy of the stores, expenses with overtime, expenses with internal and external communication, incremental expenses with transportation and cleaning and hygiene service. See note no. 1.4 |
27 Other operating expenses, _4
27 Other operating expenses, net (Details Narrative) R$ in Millions | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Other Operating Expenses Net | |
Sale and leaseback operations gain | R$ 52 |
28 Net financial result (Detail
28 Net financial result (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
DisclosureOfFinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | R$ 786 | R$ 436 | R$ 204 |
Total financial revenues | 343 | 236 | 84 |
Net financial result | (443) | (200) | (120) |
Cash and cash equivalents profitability [member] | |||
DisclosureOfFinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | 39 | 57 | 4 |
Monetary restatement (assets) [member] | |||
DisclosureOfFinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | 299 | 175 | 80 |
Other financial revenues [member] | |||
DisclosureOfFinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | 5 | 4 | |
Cost of debt [member] | |||
DisclosureOfFinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | (474) | (247) | (43) |
Cost and discount of receivables [member] | |||
DisclosureOfFinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | (31) | (34) | (40) |
Monetary restatement (liabilities) [member] | |||
DisclosureOfFinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | (11) | (8) | (1) |
Interest on leasing liabilities [member] | |||
DisclosureOfFinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | (219) | (138) | (113) |
Other financial expenses [member] | |||
DisclosureOfFinancialIncomeExpensesNetLineItems [Line Items] | |||
Total financial expenses | R$ 51 | R$ 9 | R$ 7 |
29 Earnings per share (Details)
29 Earnings per share (Details) - BRL (R$) R$ / shares in Units, R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Basic and diluted number: | |||
Allocated basic earnings and not distributed- Continued operation | R$ 1189 | R$ 1076 | R$ 1076 |
Allocated basic earnings and not distributed- Discontinued operation | 209 | (29) | |
Net income allocated available to common shareholders | R$ 1398 | R$ 1047 | R$ 1076 |
Basic and diluted denominator (millions of shares) | |||
Weighted average of the number of shares | 268 | 258 | 173 |
Basic and diluted earnings per million shares (R$) - Continued operations | R$ 4.43657 | R$ 4.17054 | R$ 6.21186 |
Basic and diluted earnings per million shares (R$) - Attributable to controlling shareholders | R$ 5.21642 | R$ 4.05814 | R$ 6.21186 |
29 Earnings per share (Details
29 Earnings per share (Details Narrative) | 1 Months Ended |
Oct. 31, 2020R$ / sharesshares | |
Earnings per share [abstract] | |
Common Shares Reverse Stock split | 3,269,992,034 |
Common Share No Par Value | R$ / shares | |
Reverse Stock Split Proportion Ratio | 12.1854776946393 to 1 |
Capital stock | 268,351,567 |
Capital Share No Par Value |
31 Insurance coverage (Details)
31 Insurance coverage (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Assets and stock [member] | |||
Disclosure of reconciliation of changes in insurance contracts by remaining coverage and incurred claims [line items] | |||
Amount of coverage | R$ 11042 | R$ 9333 | |
Profit [member] | |||
Disclosure of reconciliation of changes in insurance contracts by remaining coverage and incurred claims [line items] | |||
Amount of coverage | 5,416 | 4,675 | |
Automobiles and others [member] | |||
Disclosure of reconciliation of changes in insurance contracts by remaining coverage and incurred claims [line items] | |||
Amount of coverage | [1] | R$ 57 | R$ 54 |
[1] | This amount does not include hull insurance, which is 100% insured by the Economic Research Foundation Institute - FIPE table. |
31 Insurance coverage (Details
31 Insurance coverage (Details Narrative) R$ in Millions | 12 Months Ended |
Dec. 31, 2020BRL (R$) | |
Disclosure of reconciliation of changes in insurance contracts by remaining coverage and incurred claims [abstract] | |
Damage protection risk and cyber liability | R$ 315 |
32 Segment information (Details
32 Segment information (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of operating segments [abstract] | |||
Description of operation of retail stores | The Company is involved in the operation of retail stores located in 20 Brazilian states and the Federal District. | ||
Net operating revenue | R$ 36043 | R$ 28082 | R$ 23017 |
33 Discontinued operation (Deta
33 Discontinued operation (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Net operating revenue | R$ 36043 | R$ 28082 | R$ 23017 |
Cost of sales | (30,129) | (23,349) | (18,845) |
Gross profit | 5,914 | 4,733 | 4,172 |
Operating expenses, net | |||
Selling expenses | (2,811) | (2,273) | (1,908) |
General and administrative expenses | 435 | 352 | 275 |
Other operating expenses, net | (97) | (11) | (3) |
Operating expenses | (33,375) | (25,974) | (21,028) |
Operating profit | 2,068 | 1,702 | 1,673 |
Net financial result | (443) | (200) | (120) |
Income before income taxes | 1,625 | 1,502 | 1,553 |
Other comprehensive income | |||
Net income for the year | 1,556 | 1,060 | 1,076 |
Items that may be subsequently reclassified into the statement of operations | |||
Exchange differences on translation of foreign investments | 358 | 220 | |
Cash flow hedge | 5 | ||
Other comprehensive income for the year | 358 | 225 | |
Total comprehensive income for the year | 1,914 | 1,285 | R$ 1076 |
Discontinued operations [member] | |||
Disclosure of analysis of single amount of discontinued operations [line items] | |||
Net operating revenue | 22,034 | 2,151 | |
Cost of sales | (16,526) | (1,542) | |
Gross profit | 5,508 | 609 | |
Operating expenses, net | |||
Selling expenses | (2,973) | (510) | |
General and administrative expenses | (848) | 188 | |
Depreciation and amortization | (729) | (59) | |
Share of profit and loss of associates | 27 | (5) | |
Other operating expenses, net | (217) | (33) | |
Operating expenses | (4,740) | (419) | |
Operating profit | 768 | 190 | |
Net financial result | (340) | (55) | |
Income before income taxes | 428 | 135 | |
Income tax and social contribution | (60) | (43) | |
Net income operation discontinued | 368 | 92 | |
Discontinued operation | |||
Net income operation discontinued | (1) | ||
Net income accounting year | 367 | 92 | |
Other comprehensive income | |||
Net income for the year | 367 | 92 | |
Items that may be subsequently reclassified into the statement of operations | |||
Exchange differences on translation of foreign investments | (415) | (165) | |
Benefit plan | (1) | ||
Cash flow hedge | (1) | 3 | |
Other comprehensive income for the year | 3 | ||
Total comprehensive income for the year | R$ 47 | R$ 70 |
33 Discontinued operation (De_2
33 Discontinued operation (Details 1) - BRL (R$) R$ / shares in Units, R$ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of analysis of single amount of discontinued operations [line items] | ||||
Operational activities | R$ 3498 | R$ 3159 | R$ 1545 | |
Investment activities | (4,787) | (4,370) | (926) | |
Financing activities | (793) | 4,715 | (99) | |
Exchange rate variation on cash and cash equivalents | R$ 588 | R$ 111 | ||
Earnings per share: | ||||
Diluted and Basic, discontinued operation | R$ 5.21642 | R$ 4.05814 | R$ 6.21186 | |
Net operating revenue | R$ 36043 | R$ 28082 | R$ 23017 | |
Gross profit | 5,914 | 4,733 | 4,172 | |
Depreciation and amortization | (503) | (395) | (313) | |
Operating profit | 2,068 | 1,702 | 1,673 | |
Net financial result | (443) | (200) | (120) | |
Income before income taxes | 1,625 | 1,502 | 1,553 | |
Income tax and social contribution | (436) | (426) | (477) | |
Profit continued operation | 1,556 | 1,060 | R$ 1076 | |
Current assets | 8,349 | 12,282 | ||
Non-current assets | 10,472 | 23,623 | ||
Current liabilities | 8,786 | 13,930 | ||
Non-current liabilities | 8,688 | 12,274 | ||
Shareholders' equity | 1,347 | 9,701 | R$ 3024 | |
Discontinued operations [member] | ||||
Disclosure of analysis of single amount of discontinued operations [line items] | ||||
Operational activities | 1,349 | 1,343 | ||
Investment activities | (4,075) | 5,970 | ||
Financing activities | (1,012) | (4,274) | ||
Exchange rate variation on cash and cash equivalents | 587 | 111 | ||
Net cash generated | R$ 3151 | R$ 3150 | ||
Earnings per share: | ||||
Diluted and Basic, discontinued operation | R$ 0.8214 | R$ 0.2054 | ||
Net operating revenue | R$ 22034 | R$ 2151 | ||
Gross profit | 5,508 | 609 | ||
Depreciation and amortization | (729) | (59) | ||
Share of profit and loss of associate | 27 | (5) | ||
Operating profit | 768 | 190 | ||
Net financial result | (340) | (55) | ||
Income before income taxes | 428 | 135 | ||
Income tax and social contribution | (60) | (43) | ||
Profit continued operation | 367 | 92 | ||
Loss (income) discontinued operation | (1) | |||
Net income for the year | 367 | 92 | ||
Current assets | 8,014 | 6,560 | ||
Non-current assets | 18,930 | 5,805 | ||
Current liabilities | 9,729 | 7,209 | ||
Non-current liabilities | 3,620 | 2,553 | ||
Shareholders' equity | R$ 13595 | R$ 2603 |
34 Subsequent events (Details N
34 Subsequent events (Details Narrative) - BRL (R$) R$ in Millions | Apr. 28, 2021 | Apr. 22, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of non-adjusting events after reporting period [line items] | ||||
Total amount | R$ 407 | R$ 106 | ||
Events After Reporting Periods [member] | Board of Directors [member] | Non-convertible, unsecured debentures [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Total amount | R$ 1200 | |||
Interest rate | CDI + 1.70% per annum | |||
Description of debt payment | Payable semi-annually through maturity, which will be five years from their issuance date. | |||
Events After Reporting Periods [member] | Board of Directors [member] | Non-convertible, unsecured debentures - first series [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Description of debt payment | Payable in two equal installments, one in 2025 and one at maturity. | |||
Events After Reporting Periods [member] | Board of Directors [member] | Non-convertible, unsecured debentures - second series [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Interest rate | CDI + 1.95% per annum | |||
Description of debt payment | Payable semi-annually through maturity, which will be seven years from their issuance date. The principal amount of the debentures of the second series will be payable in two equal installments, one in 2027 and one at maturity. | |||
Events After Reporting Periods [member] | General Shareholders Meeting [member] | ||||
Disclosure of non-adjusting events after reporting period [line items] | ||||
Description of general shareholders' meeting | At the general shareholders' meeting held on April 28, 2021, our shareholders voted to approve the minimum mandatory dividend in the aggregate amount of R$348.4 million, calculated in accordance with Brazilian Corporate Law and our bylaws, with respect to the fiscal year ended December 31, 2020. This amount corresponds to R$1.29846211682919 per common share. Of the total amount, R$263.5 million was paid on November 27, 2020 as interest on shareholders' equity, and R$84.9 million will be payable as follows: (1) on June 7, 2021, to holders of common shares on April 28, 2021; and (2) on June 14, 2021, to holders of ADSs on April 30, 2021. The residual amount payable corresponds to R$0.31654126223623 per common share. |