Cover
Cover | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Addresses [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2021 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-39928 |
Entity Registrant Name | Sendas Distributor S.A. |
Entity Central Index Key | 0001834048 |
Entity Incorporation, State or Country Code | D5 |
Entity Address, Address Line One | Avenida Ayrton Senna, No. 6,000 |
Entity Address, Address Line Two | Lote 2, Pal 48959, Anexo A |
Entity Address, Address Line Three | Jacarepaguá |
Entity Address, City or Town | Rio de Janeiro |
Entity Address, Country | BR |
Entity Address, Postal Zip Code | 22775-005 |
Title of 12(b) Security | Common Shares, without par value |
Trading Symbol | ASAI |
Security Exchange Name | NYSE |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 1,346,674,477 |
ICFR Auditor Attestation Flag | true |
Auditor Firm ID | 1448 |
Auditor Name | ERNST & YOUNG |
Auditor Location | São Paulo, Brazil |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | Avenida Ayrton Senna, No. 6,000 |
Entity Address, Address Line Two | Lote 2, Pal 48959, Anexo A |
Entity Address, Address Line Three | Jacarepaguá |
Entity Address, City or Town | Rio de Janeiro |
Entity Address, Country | BR |
Entity Address, Postal Zip Code | 22775-005 |
City Area Code | 55 |
Local Phone Number | 11 3411 5042 |
Contact Personnel Name | Daniela Sabbag Papa |
Contact Personnel Email Address | ri.assai@assai.com.br |
Statement of Operations and Com
Statement of Operations and Comprehensive Income - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Profit or loss [abstract] | |||
Net operating revenue | R$ 41898 | R$ 36043 | R$ 28082 |
Cost of sales | (34,753) | (30,129) | (23,349) |
Gross profit | 7,145 | 5,914 | 4,733 |
Operating expenses, net | |||
Selling expenses | (3,334) | (2,811) | (2,273) |
General and administrative expenses | (588) | (435) | (352) |
Depreciation and amortization | (638) | (503) | (395) |
Share of profit of associates | 47 | ||
Other operating expenses, net | (53) | (97) | (11) |
Operating profit | 2,579 | 2,068 | 1,702 |
Financial revenues | 188 | 343 | 236 |
Financial expenses | (918) | (786) | (436) |
Net financial result | (730) | (443) | (200) |
Income before income taxes from continuing operations | 1,849 | 1,625 | 1,502 |
Income tax and social contribution | (239) | (436) | (426) |
Net income from continuing operations | 1,610 | 1,189 | 1,076 |
Discontinued operations | |||
Net income (loss) from discontinued operations, net of taxes | 367 | (16) | |
Net income for the year | 1,610 | 1,556 | 1,060 |
Items that may be subsequently reclassified to the statement of operations | |||
Fair value of expected credit loss | (1) | ||
Exchange rate differences on translation of foreign investments | 358 | 220 | |
Cash flow hedge | 5 | ||
Other comprehensive income for the year | (1) | 358 | 225 |
Total comprehensive income for the year | 1,609 | 1,914 | 1,285 |
Net income for the year attributable to: | |||
Controlling shareholders | 1,610 | 1,398 | 1,047 |
Non-controlling shareholders | 158 | 13 | |
Net income for the year attributable to: | 1,610 | 1,556 | 1,060 |
Total comprehensive income attributable to: | |||
Controlling shareholders | 1,609 | 1,165 | 1,209 |
Non-controlling shareholders | R$ 749 | R$ 76 | |
Basic earnings per share for continuing operations attributable to controlling shareholders (in Reais - R$) | R$ 1.19802 | R$ 0.88731 | R$ 0.83411 |
Basic earnings per share attributable to controlling shareholders (in Reais - R$) | 1.19802 | 1.04328 | 0.81163 |
Diluted earnings per share for continuing operations attributable to controlling shareholders (in Reais - R$) | 1.18852 | 0.88731 | 0.83411 |
Diluted earnings per share attributable to controlling shareholders (in Reais - R$) | R$ 1.18852 | R$ 1.04328 | R$ 0.81163 |
Balance Sheet
Balance Sheet - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | R$ 2550 | R$ 3532 |
Trade receivables | 265 | 182 |
Inventories | 4,380 | 3,739 |
Recoverable taxes | 876 | 768 |
Derivative financial instruments | 4 | 57 |
Dividends receivable | 16 | |
Other accounts receivable | 59 | 34 |
Other current assets | 72 | 37 |
Current assets other than non-current assets or disposal groups classified as held for sale | 8,222 | 8,349 |
Assets held for sale | 550 | |
Total current assets | 8,772 | 8,349 |
Non-current assets | ||
Recoverable taxes | 770 | 866 |
Deferred income tax and social contribution | 45 | |
Derivative financial instruments | 28 | 11 |
Related parties | 114 | 178 |
Restricted deposits for legal proceedings | 119 | 134 |
Other non-current assets | 10 | 1 |
Investments | 789 | 769 |
Property, plant and equipment | 10,320 | 7,476 |
Intangible assets | 1,887 | 1,037 |
Total non-current assets | 14,082 | 10,472 |
Total assets | 22,854 | 18,821 |
Current liabilities | ||
Trade payables, net | 5,942 | 5,058 |
Borrowings and financing | 433 | 280 |
Debentures and promissory notes | 180 | 1,840 |
Payroll and related taxes | 425 | 371 |
Lease liabilities | 244 | 172 |
Related parties | 368 | 41 |
Taxes payable | 158 | 104 |
Income tax and social contribution payable | 424 | |
Deferred revenues | 356 | 227 |
Dividends payable | 168 | 85 |
Other current liabilities | 370 | 184 |
Total current liabilities | 8,644 | 8,786 |
Non-current liabilities | ||
Borrowings and financing | 1,154 | 952 |
Debentures and promissory notes | 6,266 | 4,759 |
Deferred income tax and social contribution | 82 | |
Provision for legal proceedings | 205 | 282 |
Lease liabilities | 3,807 | 2,604 |
Deferred revenues | 1 | |
Other non-current liabilities | 12 | 8 |
Total non-current liabilities | 11,444 | 8,688 |
Shareholders´ equity | ||
Capital stock | 788 | 761 |
Capital reserve | 18 | 4 |
Profit reserve | 1,961 | 582 |
Other comprehensive income | (1) | |
Total shareholders’ equity | 2,766 | 1,347 |
Total liabilities and shareholders´ equity | R$ 22854 | R$ 18821 |
Statements of Changes in Shareh
Statements of Changes in Shareholders Equity - BRL (R$) R$ in Millions | Issued capital [member] | Capital Reserves [Member] | Profit Reserve Legal Reserve [Member] | Profit Reserve Legal Retention [Member] | Retained earnings [member] | Accumulated other comprehensive income [member] | Parent Equity Attributed To Controlling Shareholders [Member] | Non-controlling interests [member] | Total | Tax Incentive Reserve [Member] |
As of December 31, 2020 at Dec. 31, 2018 | R$ 2351 | R$ 16 | R$ 125 | R$ 1717 | R$ 117 | R$ 4092 | R$ 4092 | |||
Other comprehensive income | ||||||||||
Net income for the year | 1,047 | 1,047 | 13 | 1,060 | ||||||
Cash flow hedge | 5 | 5 | 5 | |||||||
Foreign exchange rate variation of foreign investments | 157 | 157 | 63 | 220 | ||||||
Comprehensive income for the year | 1,047 | 162 | 1,209 | 76 | 1,285 | |||||
Non-cash capital contribution | 67 | 67 | 67 | |||||||
Capital contribution (note 22.1) | 2,003 | 2,003 | 2,003 | |||||||
Stock options granted | 2 | 2 | 2 | |||||||
Interest own capital (note 22.2) | (247) | (247) | (247) | |||||||
Interim dividends | (50) | (50) | (37) | (87) | ||||||
Hyperinflationary economy effect | 22 | 22 | 7 | 29 | ||||||
Legal reserve (note 22.3) | 52 | (52) | ||||||||
Reserve for profit retention | 878 | (878) | ||||||||
Non- controlling interests | 2,557 | 2,557 | ||||||||
Fair value of expected credit loss | ||||||||||
Tax incentive reserve (note 22.4) | ||||||||||
As of December 31, 2021 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 | ||||||
Comprehensive income for the year | 1,398 | 1,712 | 3,110 | 764 | 3,874 | |||||
Non-cash capital contribution | 369 | 369 | 369 | |||||||
Capital contribution (note 22.1) | 650 | 650 | 650 | |||||||
Stock options granted | 5 | 5 | 5 | |||||||
Interest own capital (note 22.2) | (310) | (310) | (310) | |||||||
Hyperinflationary economy effect | 5 | 5 | ||||||||
Legal reserve (note 22.3) | 5 | (5) | ||||||||
Reserve for profit retention | 1,393 | (1,393) | ||||||||
Equity on other comprehensive income | 1,945 | 1,945 | 15 | 1,960 | ||||||
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) | ||||||||
Others | (11) | (11) | ||||||||
Dividends (note 22.2) | (85) | (85) | (143) | (228) | ||||||
Fair value of expected credit loss | ||||||||||
Tax incentive reserve (note 22.4) | ||||||||||
As of December 31, 2021 at Dec. 31, 2020 | 761 | 4 | 152 | 430 | 1,347 | 1,347 | ||||
Other comprehensive income | ||||||||||
Net income for the year | 1,610 | 1,610 | 1,610 | |||||||
Comprehensive income for the year | 1,610 | (1) | 1,609 | |||||||
Capital contribution (note 22.1) | 27 | 27 | ||||||||
Stock options granted | 14 | 14 | ||||||||
Interest own capital (note 22.2) | (63) | (63) | ||||||||
Legal reserve (note 22.3) | 5 | (5) | ||||||||
Reserve for profit retention | 1,095 | (1,095) | ||||||||
Dividends (note 22.2) | (168) | (168) | ||||||||
Fair value of expected credit loss | (1) | (1) | (1) | |||||||
Tax incentive reserve (note 22.4) | (430) | (279) | 709 | 709 | ||||||
As of December 31, 2021 at Dec. 31, 2021 | R$ 788 | R$ 18 | R$ 157 | R$ 1095 | R$ 1 | R$ 2766 | R$ 2766 | R$ 709 |
Statements of Cash Flows
Statements of Cash Flows - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Profit from continued operation | R$ 1610 | R$ 1189 | R$ 1076 |
Profit (loss) from discontinued operation | 367 | (16) | |
Net income for the year | 1,610 | 1,556 | 1,060 |
Adjustment to reconcile net income for the year to net cash flows | |||
Deferred income tax and social contribution | (127) | (372) | 162 |
(Gain) loss on disposal of property, plant and equipment and leasing write-off | 12 | (71) | 1 |
Depreciation and amortization | 687 | 1,372 | 484 |
Financial changes | 911 | 785 | 431 |
Share of (profit) loss of associate | (47) | (27) | 5 |
(Reversal of) provision for legal proceedings | (48) | 77 | 19 |
Provision write-off assets | 24 | ||
Provision for stock option | 14 | 5 | 2 |
Provision for allowance for inventory losses and damages | 302 | 13 | 5 |
Allowance for doubtful accounts | 2 | 51 | |
Adjustments to reconcile profit (loss) | 3,292 | 3,555 | 2,167 |
Variations in operating assets and liabilities | |||
Trade receivables | (85) | (155) | 21 |
Inventories | (943) | (1,029) | (153) |
Recoverable taxes | (12) | (46) | (326) |
Restricted deposits for legal proceedings | 15 | (14) | (1) |
Other assets | (69) | (10) | (106) |
Trade payables, net | 884 | 877 | 1,671 |
Payroll and related taxes | 54 | 121 | 36 |
Related parties | 391 | (54) | (17) |
Provision for legal proceedings | (49) | (41) | (22) |
Taxes and social contributions payable | 4 | 556 | 69 |
Deferred revenue | 128 | (107) | (153) |
Dividends received | 11 | ||
Other liabilities | 25 | (88) | 104 |
Income tax and social contribution, paid | (374) | (67) | (131) |
Cash flows from (used in) operations | (20) | (57) | 992 |
Net cash generated by operating activities | 3,272 | 3,498 | 3,159 |
Cash flow investment activities | |||
Capital contribution in associates | (31) | ||
Purchase of property, plant and equipment | (2,231) | (1,562) | (1,357) |
Purchase of intangible assets | (854) | (82) | (52) |
Proceeds from the sale of property, plant and equipment | 212 | 604 | 362 |
Acquisition of subsidiaries, net of cash acquired | 3,311 | ||
Purchase of investment property | (15) | (12) | |
Purchase of assets held for sale (note 29) | (403) | ||
Subsidiary spin-off (note 1.3.1) | 3,687 | ||
Net cash from corporate reorganization | (14) | ||
Net cash used in investment activities | (3,276) | (4,787) | (4,370) |
Cash flow financing activities | |||
Capital contribution | 27 | 650 | 2,003 |
Proceeds from borrowings and financing | 6,090 | 2,852 | 9,395 |
Payment of borrowings and financing | (6,479) | (3,052) | (6,124) |
Dividends and interest on equity paid | (148) | (489) | (299) |
Payment of lease liabilities | (468) | (756) | (267) |
Transaction with non-controlling interest | 2 | 7 | |
Net cash (used in) generated by financing activities | (978) | (793) | 4,715 |
Net (decrease) increase in cash and cash equivalents | (982) | (2,082) | 3,504 |
Exchange rate variation on cash and cash equivalents | 588 | 111 | |
Cash and cash equivalents at the beginning of the year | 3,532 | 5,026 | 1,411 |
Cash and cash equivalents at the end of the year | R$ 2550 | R$ 3532 | R$ 5026 |
Corporate information
Corporate information | 12 Months Ended |
Dec. 31, 2021 | |
Corporate Information | |
Corporate information | 1 Corporate information Sendas Distribuidora S.A. ("Sendas Distribuidora" or the “Company”) is a publicly listed company under the Novo Mercado segment of B3 S.A. - Brasil, Bolsa, Balcão (B3), under the ticker symbol "ASAI3" and on the New York Stock Exchange (NYSE), under the ticker symbol "ASAI". 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, 2021, the Company operated 212 stores and 14 Distribution Centers in 23 states and in the 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. On December 31, 2020, the Company transferred Almacenes Éxito S.A. (“Éxito”) control in its entirety to GPA as part of spin-off transaction (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 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 13. 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 31. 1.2 Listing of Sendas Distribuidora The Transaction contemplated the listing of the Company’s common shares on the B3 and the Company’s American Depositary Shares (“ADSs”) on the 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 85 71 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). · 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 12); 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. · 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 · GPA contributed intercompany receivables to Company for an amount of R$ 140 million · GPA contributed R$ 500 million 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 recognized 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 1.3.1 Derecognition of Éxito subsidiary 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 13. 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 note 31. 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. Schedule of derecognition of exito subsidiary 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 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 payable 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 revenues 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 proceedings 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 26,944 1.4 Sale and Leaseback Transaction On July 19, 2021, the Company entered into the “Private Instrument of Commitment of Real Estate Investment, Commitment of Purchase and Sale of Real Estate and Incorporation of Real Right of Surface, Under Suspensive Conditions and Other Covenants” (the “Instrument”) with an investment fund managed by BRL Trust Distribuidora de Títulos e Valores Mobiliários S.A. and managed by TRX Gestora de Recursos Ltda. The purpose of the Instrument is the sale, development and lease of five properties of the Company located in the States of São Paulo, Rio de Janeiro and Rondônia. The transaction includes the sale of five properties, over which construction and real estate development project should be carried out. The total sales price to be received by the Company is R$364. The sales price and cost amount of the construction of the properties will be the basis for defining the final amount of the properties' monthly rents. The assets transferred to "assets held for sale" was in amount of R$349 (see note 14.3). The Company concluded the sale of three of these properties during 2021 in a total amount of R$209. The amount of R$192 was partially received, and the remaining balance of R$17 will be received upon completion of the work in progress in 2022. As of December 31, 2021, the balance of assets held for sale referring to the two remaining properties was R$147 (see note 29). In relation to the two properties, the amount of $68 was received in advance. However, as the conditions precedent to close the sale were not fulfilled, this amount was recorded as deferred revenues (see note 20). 1.5 Conversion of Extra Hiper stores into Assaí stores On October 14, 2021, the Board of Directors of the Company and GPA approved a transaction involving the conversion of Extra Hiper stores, operated by GPA, into cash & carry stores which will be operated by the Company under the ASSAÍ brand (“Extra Transaction”). On December 16, 2021, the Company and GPA signed the “Agreement for Onerous Assignment of Exploration Rights of Commercial Points and Other Agreements” (the “Agreement”), governing the transfer to the Company the exploitation rights of up to 70 commercial points located in several states in Brazil and the Federal District (17 properties owned by GPA and 53 properties owned by third parties), currently operated by GPA for a total amount of up to R$3,973, to be paid by the Company, in installments between December 2021 and January 2024, adjusted by CDI + 1.2% per year, which may also involve the acquisition by the Company of some store equipment. The closing of the Extra Transaction is subject to the fulfillment of certain conditions, including, but not limited to, obtaining the consent of the property owners and demobilization of the stores by GPA. The deadline to complete the assignment of all commercial points to the Company is May 31, 2022, and this transaction is not subject to the approval by the antitrust authorities. On December 29, 2021, following the completion of the necessary conditions precedent, the Company and GPA signed an agreement for the purchase and sale of 20 commercial rights (6 properties owned by GPA and 14 properties owned by third parties) and property, plant and equipment (lands and buildings) of 6 properties owned by GPA in the total amount of R$1,201, located in the states of Paraná, São Paulo, Rio de Janeiro, Minas Gerais, Bahia, Pernambuco and the Federal District, (see notes 11.1 and 15). At the same date the Company paid the amount of R$1,000 to GPA related to these acquisitions. The 6 properties owned by GPA are classified as held for sale, for an amount of R$403 (see note 29). Contemporaneously, on February 25, 2022, GPA and the Company sold the 17 owned properties (11 owned by GPA and 6 properties acquired by the Company) with a total sale price of up to R$1,200, to a real estate fund ("Fund") with the intervention and guarantee of the Company. On March 31, 2022, the Company concluded the assignment of the exploration rights of 60 properties (20 properties as of December 31, 2021 and 40 properties in the period ended March 31, 2022). The expectation for completion of the other 10 properties is by the end of May 2022. The Company incurred expenses with legal fees, appraisal reports and due diligence, related to the operation, and these expenses were recorded in “Other operating income and expenses” in the statement of operations (see note 25). 1.6 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 the recovery of store assets and intangible assets on December 31, 2021, and no significant reductions were seen in revenues, and in other items of the statement of operations 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 14.1). 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, 2021. The discount rate applied to cash flow projections is 10.40% on December 31, 2021 (9.80% on December 31, 2020), and the cash flows to exceed three years are extrapolated, applying a growth rate of 6.60% on December 31, 2021 (4.62% on December 31, 2020). 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 25 – 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. The Company will continue to monitor and evaluate the impacts of the pandemic and make the necessary disclosures. 1.7 Going concern analysis The management has assessed the Company’s ability to continue operating in a foreseeable future and concluded that Company has ability to maintain its operations and systems working regularly, even in the face of the pandemic COVID-19 (see note 1.6). Therefore, the management is not aware of any material uncertainty that could indicates significant doubts about its ability to continue operating. The financial statements has been prepared based on the assumption of business continuity. 1.8 Possible impacts of the military conflict between Russia and Ukraine Our business could be adversely affected by unstable economic and political conditions and geopolitical conflicts, such as the conflict between Russia and Ukraine. While we do not have any customer or direct supplier relationships in either country at this time, the current military conflict, and related sanctions, as well as export/import controls or actions that may be initiated by nations including Brazil and other potential uncertainties could adversely affect our business and/or our supply chain, business partners or customers, and could cause changes in our customers buying patterns and interrupt our ability to supply products. Inflation, energy and commodities costs may fluctuate as a result the conflict between Russia and Ukraine and related economic sanctions. These fluctuations may result in an increase in our transportation costs for distribution, utility costs for our retail stores and costs to purchase products from our suppliers. A continual rise in energy and commodities costs could adversely affect consumer spending and demand for our products and increase our operating costs, both of which could have a material adverse effect on our results of operations, financial condition and cash flows. While the precise effect of the ongoing military conflict and global economies remains uncertain, they have already resulted in significant volatility in financial markets, as well as in an increase in energy and commodity prices globally. In the event geopolitical tensions fail to abate or deteriorate further, additional governmental sanctions may be enacted adversely impacting the global economy, its banking and monetary systems, markets or customers for our products. As of December 31, 2021, we did not operate in these countries. The Company will continue to monitor the ongoing status and developments of the conflict and its potential impacts over its operations. No relevant accounting impact was identified until the date of authorization for issuance of these financial statements. |
Basis of preparation
Basis of preparation | 12 Months Ended |
Dec. 31, 2021 | |
Basis of preparation | 2 Basis of preparation The financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The financial statements have been prepared on a historical cost basis except for (i) certain financial instruments; and (ii) assets and liabilities arising from business combinations measured at their fair values, when applicable. 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 financial statements are presented in millions of Brazilian Reais (R$), which is the functional currency of the Company. The financial statements have been prepared on a going concern basis. The financial statements for the fiscal year ended December 31, 2021, 2020 and 2019 were approved by the Board of Directors on May 2, 2022. 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 Distribuidora consolidates all its subsidiary and reports non-controlling interests in a separate line item in shareholders’ equity and statements of operations (see note 31). As of December 31, 2021, there were no consolidated subsidiaries. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
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 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 balance sheet 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; · there is no unconditional right to defer the settlement of the liability for at least twelve months after; or · 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 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. 3.4 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 recognized at cost. 3.5 Tax incentive reserve Tax incentive reserve is recognized when there is reasonable assurance that the entity will comply with all conditions established and related to the grant and that the grant will be received. When the benefit relates to an expense item, it is recognized as revenue over the period of the benefit systematically in relation to the respective expenses for whose benefit it is intended to offset. When the benefit relates to an asset, it is recognized as deferred revenue in liabilities and on a systematic and rational basis over the useful life of the asset. 3.6 Discontinued operation 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 31). 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 22.2). 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, 2021 was R$ 406 549 116 |
Restated of earnings per share
Restated of earnings per share | 12 Months Ended |
Dec. 31, 2021 | |
Restated Of Earnings Per Share | |
Restated of earnings per share | 4 Restated of earnings per share The earnings per share for the year ended on December 31, 2020 and 2019 has been restated due to the one-to-five share split on August 11, 2021, in accordance with IAS 33 – Earnings per share. See note 27. |
Adoption of new procedures, ame
Adoption of new procedures, amendments to and interpretations of existing standards issued by the IASB and published standards effective from 2019 | 12 Months Ended |
Dec. 31, 2021 | |
Adoption of new procedures, amendments to and interpretations of existing standards issued by the IASB and published standards effective from 2019 | 5 Adoption of new procedures, amendments to and interpretations of existing standards issued by the IASB and published standards effective from 2019 5.1 Amendments to IFRSs and new interpretations of mandatory application starting at 2021, 2020 and 2019 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. The Company adopted IFRS 16 using the full retrospective method of adoption, with the date of application of January 1, 2019, with retrospective effect from January 1, 2017 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. 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 IAS 39, IFRS 7 and IFRS 9: 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 IFRS 16: 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 (*) 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, except by the impacts of IFRS 16 - Leases. 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. Schedule of new standards, amendments and interpretations issued but not yet effective Accounting pronouncement Description Effective for annual periods beginning on or after Amendments to IAS1: Classification of liabilities as current and non-current and disclosure of accounting policies 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. - The amendments are to help entities disclose accounting policies that are more useful by replacing the requirement for disclosure of significant accounting policies for material accounting policies. 01/01/2023 Amendments to IAS8: Definition of accounting estimates Introduce the definition of 'accounting estimate'. The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and correction of errors. In addition, they clarify how entities use measurement and input techniques to develop accounting estimates. 01/01/2023 It is not expected that the adoption of these standards will result in significant impacts on the 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 financial statements. |
Significant accounting judgment
Significant accounting judgments, estimates, and assumptions | 12 Months Ended |
Dec. 31, 2021 | |
Significant accounting judgments, estimates, and assumptions | 6 Significant accounting judgments, estimates, and assumptions The preparation of the 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 financial statements, as disclosed in the following notes to these financial statements: • Impairment: Notes 8.3,14.1, 15.1 and 15.2. • Inventories: inventory allowance: Note 9. • Recoverable taxes: Expected realization of tax credits: Note 10. • Business combination: estimates of fair value of assets and liabilities acquired in a business combination and resulting goodwill: Note 13. • Fair value of derivatives and other financial instruments: Measurement of fair value of derivatives: Note 17.10. • Provision for legal proceedings: Record of provision for claims with likelihood assessed as probable loss, estimated with a certain degree of reasonability: Note 18. • Leasing operations: determination of the lease term, and incremental interest rate: Note 19. • Income tax and social contribution: Provisions based on reasonable estimates: Note 21. • Share-based payments: Estimate of fair value of operations based on a valuation model: Note 22.5. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2021 | |
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. Schedule of cash and cash equivalents As of December 31, 2021 2020 Cash and bank accounts – Brazil 74 64 Cash and bank accounts – Abroad (*) 25 29 Financial investments – Brazil (**) 2,451 3,439 2,550 3,532 (*) As of December 31, 2021, the Company had funds held abroad, being R$25 in US Dollars (R$ 24 5 (**) As of December 31, 2021, the financial investments correspond to repurchase and resale agreements, with a weighted average interest rate of 109.64% of CDI – Interbank Deposit Certificate (Weighted average interest rate 96.96 |
Trade receivables
Trade receivables | 12 Months Ended |
Dec. 31, 2021 | |
Trade Receivables | |
Trade receivables | 8 Trade receivables Trade receivables are initially recorded at the transaction amount, which corresponds to the sales price, and are subsequently measured as follows: (i) fair value through other comprehensive income, in the case of receivables from credit card companies and (ii) amortized cost, for other customer portfolio. The Company estimates a provision for expected credit losses, which is based on a quantitative and qualitative analysis, the track record of effective losses in the last 24 months, the credit assessment, and considering assumptions 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 balance of trade receivables is disclosed net of the provision for expected losses in the balance sheet. Trade receivables are considered bad debt and, therefore, written-off from the accounts receivable portfolio, when no payment is received after 180 days of their maturity date. At the end of each reporting period, the Company assesses whether assets or groups of financial assets were impaired. Schedule of trade receivables As of December 31, Notes 2021 2020 Credit card companies 8.1 75 62 Credit card companies with related parties 11.1 24 17 Sales ticket and payment slips 8.2 118 77 Trade receivables with related parties 11.1 31 10 Trade receivables with suppliers/payment slips 23 20 271 186 Provision for expected credit losses 8.3 (6 ) (4 ) 265 182 Set forth below the breakdown of trade receivables by their gross amount by maturity period: Overdue Total Due Less than Less than Less than > 90 days 2021 271 269 1 — — 1 2020 186 181 2 — — 3 8.1 Credit card companies The Company, through its 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 Sales ticket and payment slips Refers to amounts arising from transactions through receipts: (i) tickets and meal vouchers R$56 (R$36 on December 31, 2020); and (ii) payment slips R$62 (R$41 on December 31, 2020). 8.3 Provision for expected credit losses For the year ended December 31, 2021 2020 2019 At the beginning of the year (4 ) (32 ) (4 ) Additions (15 ) (56 ) — Reversals 13 5 — Write off trade receivables — 42 — Discontinued operations — 43 — Foreign currency translation adjustment — (6 ) — Business combination — — (28 ) At the end of the year (6 ) (4 ) (32 ) |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventories | 9 Inventories Inventories are carried at average cost, including the storage and handling costs, to the extent these costs are necessary to bring inventories to their sale condition at stores, less bonuses received from suppliers or net realizable value, whichever is lower. Net realizable value is the selling price in the ordinary course of business, less the estimated costs necessary to make the sale. Inventories are adjusted by an allowance for losses and damages, which is periodically reviewed and evaluated as appropriate. Bonuses received from suppliers are measured and recognized based upon executed contracts and agreements and recorded as cost of sales when the corresponding inventories are sold. Unrealized bonuses are presented as reducing the inventories at each balance sheet date. Schedule of inventories As of December 31, Notes 2021 2020 Stores 3,955 3,416 Distribution centers 878 818 Commercial agreements 9.1 (416 ) (444 ) Allowance for loss on inventory obsolescence and damages 9.2 (37 ) (51 ) 4,380 3,739 9.1 Commercial agreements The Company records rebates from vendors and the storage costs in the statement of operations as the inventories that gave rise to the bonuses and the stored costs are realized. On December 31, 2021, the amount of unrealized bonus, as a reduction of inventory balance, totaled R$ 416 444 9.2 Allowance for loss on inventory (obsolescence and damages) For the year ended December 31, 2021 2020 2019 At the beginning of the year (51 ) (61 ) (34 ) Additions (315 ) (16 ) (5 ) Reversals 13 3 — Discontinued operations — 28 — Foreign currency translation adjustment — (5 ) — Business combinations — — (22 ) Write-offs 316 — — At the end of the year (37 ) (51 ) (61 ) |
Recoverable taxes
Recoverable taxes | 12 Months Ended |
Dec. 31, 2021 | |
Recoverable Taxes | |
Recoverable taxes | 10 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 2021 2020 State tax credits – ICMS 10.1 1,153 1,311 Social Integration Program and Contribution for Social Security Financing - PIS/COFINS 10.2 370 141 Social Security Contribution - INSS 10.3 54 36 Income tax and social contribution 10.4 61 144 Others 8 2 Total 1,646 1,634 Current 876 768 Non-current 770 866 10.1 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. As of December 31, 2021, 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 402 From 1 to 2 years 263 From 2 to 3 years 277 From 3 to 4 years 84 From 4 to 5 years 32 More than 5 years 95 Total 1,153 10.2 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. On May 13, 2021, the STF judged the Declaration Embargoes in relation to the amount to be excluded from the calculation basis of the contributions, which should only be the ICMS paid, or if the entire ICMS, as shown in the respective invoices. The STF decided to modulate the effects of the decision, providing that taxpayers who distributed lawsuits before March 15, 2017 or who had administrative proceedings in progress before that same date, would be have right to take advantage of the past period. As the decision was rendered in a process with recognized general repercussions, the understanding reached is binding on all judges and courts. The Company filed a lawsuit on October 31, 2013, having obtained a favorable decision and a final and unappealable decision on July 16, 2021, thus allowing the recognition of the credit for the period covered by the lawsuit. In 2021, in line with the final decision, the Company processed the calculation in accordance with the rules defined by the STF and definitively recorded its right in the amount of R$ 216 175 41 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. 10.3 STF Judgment– INSS 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 11 10.4 Recoverable Income Tax and Social Contribution On September 27, 2021, the STF unanimously recognized the unconstitutionality of the offer to the taxation of Corporate Income Tax (IRPJ) and, to the Social Contribution on Net Income (CSLL), on the SELIC rate received by the taxpayer in the repetition of undue payment tax. Based on this decision, the Company analyzed the comprehensive judicial period from 2013 to 2021, carrying out a survey of monetary adjustments that were offered to taxation by adding the calculation basis at the time. On December 31, 2021, the Company recorded the amount of R$85, of which: i) R$ 53 28 4 |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2021 | |
Related Parties | 11 Related Parties 11.1 Balances and related party transactions Assets balance Liabilities balance Clients Other assets Suppliers Other liabilities 2021 2020 2021 2020 2021 2020 2021 2020 Controlling shareholder Wilkes Participações S.A. (i) — — — — — — 2 — Euris (ii) — — — — — — 1 — Casino Guichard Perrachon (iii) 13 10 — — — — — — 13 10 — — — — 3 — Other related parties GPA (iv) 18 — 100 168 8 — 365 41 Compre Bem — — — — — — — — Greenyellow (v) — — — — — — — — Joint venture Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento (“FIC”) (vi) 24 17 14 10 14 11 — — 42 17 114 178 22 11 365 41 Total 55 27 114 178 22 11 368 41 Transactions Purchases Revenue (Expenses) 2021 2020 2019 2021 2020 2019 Controlling shareholder Wilkes Participações S.A. (i) — — — (6 ) — — Euris (ii) — — — (1 ) — — Casino Guichard Perrachon (iii) — — — (35 ) (19 ) 2 — — — (42 ) (19 ) 2 Other related parties GPA (iv) — — 1 (137 ) (183 ) (162 ) Compre Bem — 1 13 (1 ) 3 (3 ) Greenyellow (v) — — — (26 ) (47 ) 1 Puntos Colombia — — — — (114 ) (13 ) Tuya — — — — 24 21 Others — — — — (2 ) (3 ) Joint venture Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento (“FIC”) (vi) — — — 15 — — — 1 14 (149 ) (319 ) (159 ) Total — 1 14 (191 ) (338 ) (157 ) The related-party transactions are carried out according to prices, terms and conditions agreed upon the parties and are measured substantially at market value, namely: (i) Wilkes Participações S.A.: reimbursement of personnel expenses, equipment rental and maintenance. (ii) Euris: reimbursement of expenses according to cost sharing contracts (expenses with personnel, expatriates, maintenance, marketing and rent). (iii) Casino: (i) 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; (ii) Agency Agreement: entered into 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. (iv) GPA: (i) Separation Agreement: entered into between the Company and GPA on December 14, 2020, in which the companies undertake to indemnify each other for events that may arise as a result of the corporate reorganization (see note 1.3); and (ii) Agreement for Onerous Assignment of Exploration Rights of Commercial Points and Other Agreements: entered into between the Company and GPA on December 16, 2021 for the acquisition of commercial rights. On December 31, 2021, the Company recorded and intercompany liability for an amount of R$201 referring to the acquisition of 20 commercial points (see note 1.5). (v) Greenyellow: agreement with the Company to set the rules for the lease and maintenance of photovoltaic system equipment by Greenyellow at ASSAÍ stores; and 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. 11.2 Management compensation Expenses related to the statutory executive board compensation recorded in the Company’s statement of operations is as follows Base salary (i) Variable compensation (i) Stock option plan Total 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 Board of director 25,533 — — — — — 7,111 — — 32,644 — — Executive officers 20,241 12,963 15,360 14,485 7,027 8,421 7,632 4,877 5,684 42,358 24,867 29,465 Fiscal council 331 — — — — — — — — 331 — — 46,105 12,963 15,360 14,485 7,027 8,421 14,743 4,877 5,684 75,333 24,867 29,465 (i) Short-term benefit. The stock option plan refers to the Company’s executives holding GPA shares. The 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. |
Investment in joint venture
Investment in joint venture | 12 Months Ended |
Dec. 31, 2021 | |
Investment In Joint Venture | |
Investment in joint venture | 12 Investment in joint venture The carrying amount of the investment is adjusted to recognize 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: Schedule of company joint venture Participation in investments - % 2021 2020 Group Company Country Company Financeira Itaú CBD S.A Bellamar Empreendimento e Participação S.A Brazil 50.00 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 initially 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 Breakdown Amount As of December 31, 2019 320 Equity accounting 27 Capital Increase 51 Equity on other comprehensive income 82 Discontinued operations (note 1) (480 ) Corporate restructuring (note 1) 769 As of December 31, 2020 769 Amount As of December 31, 2020 769 Share of profit of associates 47 Dividends received (11 ) Dividends receivable (16 ) As of December 31, 2021 789 12.1 Allocation of the acquisition price In the first half 2021, the Company concluded the allocation of the acquisition value corresponding to the 17.88% participation in FIC of R$769. FIC's identifiable assets and liabilities are demonstrated in the table below. Assets acquired and liabilities assumed The fair value of FIC's identifiable assets and liabilities on December 31, 2020 (acquisition date) are demonstrated as follows: Schedule of Identifiable Assets and Liabilities Assets Cash and cash equivalents 29 Marketable securities 22 Credit operations 6,213 Other credits 98 Other receivables 3 Other credits, non-current 265 Property, plant and equipment and intangible assets 2,170 Investments 47 8,847 Liabilities Deposits (790 ) Interfinancial relations (2,457 ) Other liabilities (2,256 ) (5,503 ) Total fair value of identifiable net assets 3,344 Company's participation 17.88 % Fair value of investment acquired 599 Acquisition price 769 Fair value of investment acquired (599 ) Goodwill 170 |
Business combination
Business combination | 12 Months Ended |
Dec. 31, 2021 | |
Business combination | 13. 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. 13.1 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 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 21.68 The transaction also involved the acquisition by Casino of Éxito’s indirect equity interest in GPA at the price of R$ 113 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. On November 27, 2019, the OPA was concluded and Sendas became the controlling shareholder of Éxito holding a 96.57 7,780 1,161 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 had 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 71 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 Cash consideration transferred gross 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 Exito, 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 Assets recognised as of acquisition date 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 LiabilitiesRecognisedAsOfAcquisitionDate 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 Schedule of goodwiill identified 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. The acquisition related cost was R$ 124 On December 31, 2020 Éxito was distributed to GPA, under the Transaction and it is presented as discontinued operation in the financial statements (see note 1.3). |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, plant and equipment | 14 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. Schedule of property and equipment Asset Category Average annual depreciation rate in % Buildings 2.78 Leasehold improvements 4.28 Machinery and equipment 12.05 Facilities 6.94 Furniture and appliances 11.36 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 2021 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. 14.1 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 asset’s 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, 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 15.1. 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. 14.2 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 amounts 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 6.60% in 2021 (5.62% in 2020) for period exceeding the next five years and a discount rate of 10.40% in 2021(9.80% in 2020) 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, 2021 and 2020 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. 14.3 Property, plant and equipment rollforward Schedule of property and equipment rollforward As of December 31, 2020 Additions Lease modification Write-off Depreciation Transfer and others (i) As of December 31, 2021 Land 481 207 — (2 ) — (116 ) 570 Buildings 609 258 — (4 ) (15 ) (192 ) 656 Improvements 2,598 1,161 — (1 ) (182 ) 20 3,596 Equipment 635 307 — (1 ) (128 ) 15 828 Facilities 269 118 — (1 ) (25 ) 1 362 Furnitures and appliances 340 110 — (2 ) (53 ) 21 416 Constructions in progress 78 266 — — — (109 ) 235 Others 37 6 — — (14 ) 8 37 Subtotal 5,047 2,433 — (11 ) (417 ) (352 ) 6,700 Lease - right of use: Buildings 2,423 885 628 (92 ) (244 ) 4 3,604 Equipment 6 16 — — (5 ) (1 ) 16 Subtotal 2,429 901 628 (92 ) (249 ) 3 3,620 Total 7,476 3,334 628 (103 ) (666 ) (349 ) 10,320 (i) In 2021, presents the transfer between fixed assets to “assets held for sale”, in amount of R$349 (see note 1.4). As of December 31, 2019 Additions Lease modification Write-off Depreciation Transfer and others (ii) 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 ) 7,476 (ii) In 2020, presents: (a) the capital contribution through GPA’s real state in the amount of R$223; and (b) the transfer of fixed assets to “assets held for sale” in amount of R$380. As of December 31, 2018 Additions Additions from business acquired Lease modification Write-off Depreciation Transfer and others Currency translation adjustment As of December 31, 2019 Land 348 76 2,277 — — — 25 40 2,766 Buildings 583 231 2,935 — — (25 ) 56 49 3,829 Improvements 1,733 553 334 — (302 ) (123 ) 12 — 2,207 Equipment 416 232 672 — (20 ) (93 ) 25 10 1,242 Facilities 221 66 64 — (1 ) (20 ) 2 (2 ) 330 Furnitures and appliances 226 81 300 — (8 ) (40 ) 36 6 601 Constructions in progress 39 69 154 — (3 ) — (122 ) 3 140 Others 29 4 6 — — (11 ) 14 — 42 Subtotal 3,595 1,312 6,742 — (334 ) (312 ) 48 106 11,157 Lease - right of use: Buildings 1,053 670 1,727 138 (28 ) (140 ) (3 ) 32 3,449 Equipment 7 15 25 — — (5 ) (1 ) 2 43 Land — — 3 — — — — — 3 Subtotal 1,060 685 1,755 138 (28 ) (145 ) (4 ) 34 3,495 Total 4,655 1,997 8,497 138 (362 ) (457 ) 44 140 14,652 14.4 Breakdown Schedule of property plant breakdown As of December 31, 2021 2020 Historical cost Accumulated depreciation Net amount Historical cost Accumulated depreciation Net amount Land 570 — 570 481 — 481 Buildings 767 (111 ) 656 704 (95 ) 609 Improvements 4,387 (791 ) 3,596 3,203 (605 ) 2,598 Equipment 1,373 (545 ) 828 1,061 (426 ) 635 Facilities 472 (110 ) 362 354 (85 ) 269 Furnitures and appliances 635 (219 ) 416 513 (173 ) 340 Construction in progress 235 — 235 78 — 78 Others 115 (78 ) 37 101 (64 ) 37 8,554 (1,854 ) 6,700 6,495 (1,448 ) 5,047 Finance lease — — Buildings 4,566 (962 ) 3,604 3,205 (782 ) 2,423 Equipment 61 (45 ) 16 47 (41 ) 6 4,627 (1,007 ) 3,620 3,252 (823 ) 2,429 Total Property, plant and equipment 13,181 (2,861 ) 10,320 9,747 (2,271 ) 7,476 14.5 Capitalized borrowing costs Capitalized borrowing costs for the year ended December 31, 2021 were R$ 38 12 11 117.70 150.67 136.11 Schedule of additions to property and equipment for cash flow presentation 14.6 Additions to property, plant and equipment for cash flow presentation purpose are as follows: 2021 2020 2019 Additions 3,334 2,788 1,997 Leases (901 ) (1,241 ) (685 ) Capitalized interest (38 ) (12 ) (11 ) Financing of property, plant and equipment – Additions (2,284 ) (1,437 ) (1,217 ) Financing of property, plant and equipment – Payments 2,120 1,464 1,273 Total 2,231 1,562 1,357 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. 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. 14.7 Other information On December 31, 2021, the Company recorded in the cost of sales and services the amount of R$ 49 34 29 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets | 15 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 10 13.22 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. Intangible assets other than goodwill with indefinite useful live include tradenames and commercial rights. 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 operations in the year the asset is derecognized. Schedule of intangible assets As of December 31, 2020 Additions Amortizations Write-off Transfers As of December 31, 2021 Goodwill 618 — — — — 618 Softwares 70 21 (14 ) (1 ) (1 ) 75 Commercial rights (i) 310 833 (7 ) — — 1,136 Tradename 39 — — — — 39 Subtotal 1,037 854 (21 ) (1 ) 1 1,868 — 18 — — 1 19 Subtotal — 18 — — 1 19 1,037 872 (21 ) (1 ) — 1,887 (i) Includes commercial rights related to 20 commercial points sold by GPA to the Company as a result of the Transaction for an amount of R$798 (see note 1.5). As of December 31, 2019 Additions Amortizations Write-off Conversion adjustment to reporting currency Transfers Discontinued operation As of December 31, 2020 Goodwill 787 — — — 38 1 (208 ) 618 Softwares 134 72 (40 ) (1 ) 20 — (115 ) 70 Commercial rights 313 6 (8 ) — (1 ) — — 310 Tradename 3,054 — — — 713 — (3,728 ) 39 4,288 78 (48 ) (1 ) 770 1 (4,051 ) 1,037 As of December 31, 2018 Additions Business combination Amortizations Exchange rate changes As of December 31, 2019 Goodwill 618 — 165 — 4 787 Software 60 28 60 (15 ) 1 134 Commercial rights 296 24 1 (8 ) — 313 Tradename 39 — 2,949 — 66 3,054 1,013 52 3,175 (23 ) 71 4,288 As of December 31, 2021 2020 Historical cost Accumulated amortization Net amount Historical cost Accumulated amortization Net amount Goodwill 871 (253 ) 618 1,741 (1,123 ) 618 Softwares 133 (58 ) 75 126 (56 ) 70 Commercial rights 1,160 (24 ) 1,136 327 (17 ) 310 Tradename 39 0 39 39 0 39 2,203 (335 ) 1,868 2,233 (1,196 ) 1,037 Lease - right of use: Assets and rights 28 (9 ) 19 — — — Total of intangible assets 2,231 (344 ) 1,887 2,233 (1,196 ) 1,037 15.1 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 14.1. On December 31, 2021, the Company revised the business plan used to assess impairment for Cash Generating Units (CGUs) in Brazil. The Company calculated 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 assumptions updated as of December 31, 2021. The discount rate applied to cash flow projections was 10.40% on December 31, 2021 (9.80% on December 31, 2020), and cash flows that exceed the three years period are extrapolated using a growth rate of 6.60% on December 31, 2021 (4.57% on December 31, 2020) 15.2 Commercial rights Commercial rights are the right to operate stores. As of December 31, 2021, management concluded that commercial rights are recoverable, either through the expected cash flows of the related store or the sale to third parties. Commercial rights with a define useful life are tested for impairment using the same assumptions for the Company's impairment test (see note 14.2), following the lease agreement terms. 15.3 Additions to intangible assets for cash flow presentation purpose are as follows Schedule of additions to intangible assets 2021 2020 Additions 872 25 Other (18 ) — Total 854 25 |
Trade payables, net
Trade payables, net | 12 Months Ended |
Dec. 31, 2021 | |
Trade payables, net | 16 Trade payables, net Schedule of trade payables, net As of December 31, Notes 2021 2020 Product suppliers 16.1 6,422 5,450 Service providers 74 85 Service providers - related parties 11.1 22 11 Bonuses from suppliers 16.2 (576 ) (488 ) Total 5,942 5,058 16.1 Agreements among suppliers, the Company, and banks The Company entered into certain agreements with financial institutions in order to anticipate the payment of their receivables from the Company arising from the sale of goods and services. These transactions are considered to have a commercial characteristic, since there are no changes to the original terms of the accounts payables of the Company in relation to amount and / or terms, including financial charges. The anticipation is also solely at the suppliers’ discretion. 16.2 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. |
Financial instruments
Financial instruments | 12 Months Ended |
Dec. 31, 2021 | |
Financial instruments | 17 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. 17.1 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 The measurement of financial liabilities depends on their classification, as described below: • Financial liabilities at fair value through income: • Financial liabilities at amortized cost: 17.2 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. 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. 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. 17.3 Offset of financial instruments The financial assets and liabilities are offset and reported net in 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. 17.4 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. 17.5 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 statement of operations. · 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 statement of operations. 17.6 Impairment of financial assets The 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: Schedule of financial instruments and their carrying amounts Carrying amounts Notes 2021 2020 Financial assets Amortized cost Related parties - assets 11.1 114 178 Accounts receivable and other accounts receivable 169 117 Fair value through income Cash and cash equivalents 7 2,550 3,532 Financial instruments - fair value hedge- long position 17.12.1 32 68 Fair value through other comprehensive income Accounts receivable with credit card companies and sales tickets 155 99 Financial liabilities Other financial liabilities - amortized cost Related parties - liabilities 11.1 (368 ) (41 ) Trade payables 16 (5,942 ) (5,058 ) Financing through acquisition of assets (197 ) (34 ) Borrowings and financing 17.12.1 (1,210 ) (897 ) Debentures 17.13 (6,446 ) (6,599 ) Lease liabilities 19.2 (4,051 ) (2,776 ) Fair value through income Borrowings and financing, including derivatives 17.12.1 (341 ) (335 ) Financial instruments - Fair value hedge - short position 17.12.1 (36 ) — Net exposure (15,571 ) (11,746 ) 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 17.10. 17.7 Considerations on risk factors that may affect the businesses of the Company 17.7.1 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. 17.7.2 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. 17.7.3 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. 17.7.4 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: Schedule of capital structure As of December 31, 2021 2020 Borrowings, financing and debentures (8,033 ) (7,831 ) (-) Cash and cash equivalents 2,550 3,532 (-) Derivative financial instruments 32 68 Net debt (5,451 ) (4,231 ) Shareholders´ equity 2,766 1,347 % Net debt over shareholders´ equity 197 % 314 % 17.7.5 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, 2021. Schedule of aging profile of financial liabilities Less than 1 year 1 to 5 years More than 5 years Total Borrowings and financing 529 1,347 9 1,885 Debentures 399 7,343 3,035 10,777 Derivative financial instruments (73 ) (284 ) 288 (69 ) Lease liabilities 628 2,868 4,597 8,093 Trade payable 5,942 — — 5,942 Total 7,425 11,274 7,929 26,628 The table above was prepared considering the undiscounted cash flows of financial 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, 2021. Therefore, certain balances are not consistent with the balances reported in the balance sheets. 17.8 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, 2021, the notional amount of these contracts was R$1,888 (R$309 on December 31, 2020). 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, 2021 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. Schedule of hedge position Notional value Fair value 2021 2020 2021 2020 Swap with hedge accounting Hedge purpose (debt) 1,888 309 1,869 335 Long position Fixed rate 106 106 60 72 USD + Fixed 282 203 281 263 Hedge - CRI 1,500 — 1,528 — Short position (1,888 ) (309 ) (1,873 ) (267 ) Net hedge position — — (4 ) 68 Realized and unrealized gains and losses on these contracts during the year ended December 31, 2021, are recorded as financial revenues or expenses and the balance payable at fair value is R$4 (balance receivable of R$68 as of December 31, 2020). 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, 2021, resulted in a loss of R$4, recorded under debt of cost, note 26 (gain of R$68 as of December 31, 2020 and gain of R$30 as of December 31, 2019). 17.8.1 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. 17.9 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$6.17 on the due date, and the interest rate weighted was 11.40% 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: Schedule of net exposure of derivative financial instruments Market projections Transactions Notes Risk(CDI Increase) Carrying Amount Balance at 2021 Scenario (I) Scenario (II) Scenario (III) Borrowings and financing 17.12.1 CDI + 1.94% per year 1,551 (1,499 ) 155 118 82 Fixed rate swap contract (short position) 17.12.1 TR + 9.80% per year (32 ) (58 ) (53 ) (64 ) (69 ) Foreign exchange swap contract (short position) 17.12.1 CDI + 1.25% per year 36 (291 ) (58 ) (49 ) (63 ) Debentures 17.12.1 CDI + 1.48% per year 6,446 (6,523 ) (1,163 ) (1,378 ) (1,593 ) Total net effect (loss) 8,001 (8,371 ) (1,119 ) (1,373 ) (1,643 ) 17.10 Fair value measurement The Company discloses the fair value of financial instruments and other assets and liabilities measured or disclosed at fair value in accordance with IFRS 13. 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 is 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 financial statements: Schedule of fair value hierarchy of financial assets and liabilities Carrying amount Fair value 2021 2020 2021 2020 Level Trade receivables with credit cards 155 99 155 99 2 Swaps of annual rates between currencies (11 ) 57 (11 ) 57 2 Interest rate swaps 4 11 4 11 2 Interest rate swaps - CRI 3 — 3 — 2 Borrowings and financing (fair value) (341 ) (335 ) (341 ) (335 ) 2 Borrowings and financing (amortized cost) (7,656 ) (7,496 ) (7,372 ) (6,529 ) 2 (7,846 ) (7,664 ) (7,562 ) (6,697 ) There was no change between the fair value measurements hierarchy levels during the year ended December 31, 2021. Cross-currency and interest rate swaps and borrowings and financing are classified as 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. 17.11 Position of operations with derivative financial instruments The Company has derivative contracts with the following financial institutions: Itaú BBA, Scotiabank and BR Partners. The outstanding derivative financial instruments are presented in the table below: Schedule of consolidated position of outstanding derivative transactions As of December 31, Description Risk Notional (millions) Due date 2021 2020 Debt USD – BRL US$ 50 2021 — 57 USD – BRL US$ 50 2023 (11 ) — Debt CRI – BRL R$ 1,500 2028 and 2031 3 — Interest rate swaps registered at CETIP Fixed rate x CDI R$ 54 2027 2 5 Fixed rate x CDI R$ 52 2027 2 6 Derivatives - Fair value hedge – Brazil (4 ) 68 17.12 Borrowings and financing 17.12.1 Debt breakdown Schedule of debt weighted average As of December 31, Weighted average rate 2021 2020 Current Debentures and promissory notes Debentures and promissory notes CDI + 1.53% per year 194 1,864 Borrowing costs (14 ) (24 ) Total debentures and promissory notes 180 1,840 Borrowings and financing in domestic currency Working capital TR + 9.80% 14 12 Working capital CDI + 2.33% per year 419 9 Borrowing costs (4 ) (5 ) Total domestic currency 429 16 In foreign currency Working capital CDI + 1.25% per year 1 264 Total foreign currency 1 264 Total of borrowings and financing 430 280 Derivative financial instruments Swap contracts CDI + 0.86% per year (4 ) (57 ) Swap contracts CDI + 1.35% per year 3 — Total derivative financial instruments (1 ) (57 ) Total current 609 2,063 As of December 31, Weighted average rate 2021 2020 Non-current Debentures and promissory notes Debentures and promissory notes CDI + 1.48% per year 6,329 4,780 Borrowing costs (63 ) (21 ) Total debentures and promissory notes 6,266 4,759 Borrowings and financing in domestic currency Working capital TR + 9.80% 47 60 Working capital CDI + 1.74% per year 800 901 Borrowing costs (5 ) (9 ) Total domestic currency 842 952 In foreign currency Working capital CDI + 1.25% per year 279 — Total foreign currency 279 — Total of borrowings and financing 1,121 952 Derivative financial instruments Swap contracts CDI + 0.03% per year (28 ) (11 ) Swap contracts CDI + 1.35% per year 33 — Total derivative financial instruments 5 (11 ) Total non-current 7,392 5,700 Total 8,001 7,763 Current assets 4 57 Non-current assets 28 11 Current liabilities 613 2,120 Non-current liabilities 7,420 5,711 17.12.2 Rollforward Schedule of rollforward of financial instruments Amounts Balance as January 1, 2019 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 Funding - working capital 6,090 Interest provision 559 Swap contracts 39 Mark-to-market 31 Exchange rate and monetary variation 5 Debt modification impact (71 ) Borrowing costs 64 Interest amortization (406 ) Principal amortization (6,075 ) Swap amortization 2 Balance as of December 31, 2021 8,001 17.12.3 Schedule of non-current maturities Schedule of noncurrent maturities Maturity Amounts From 1 to 2 years 1,648 From 2 to 3 years 3,602 From 3 to 4 years 802 From 4 to 5 years 572 More than 5 years 836 Total 7,460 Borrowing Cost (68 ) Total 7,392 17.13 Debentures and promissory notes Schedule of debentures and promissory notes Date As of December 31, Type Issue amount Outstanding Debentures (units) Issuance Maturity Annual financial charges Unit price (in Reais) 2021 2020 First Issue of Promissory Notes – 2 nd non-preemptive right 50 1 7/4/2019 7/5/2021 CDI + 0.72% per year 52,998,286 — 53 First Issue of Promissory Notes – 3 rd non-preemptive right 50 1 7/4/2019 7/4/2022 CDI + 0.72% per year 56,087,744 57 53 First Issue of Promissory Notes – 4 th non-preemptive right 250 5 7/4/2019 7/4/2023 CDI + 0.72% per year 56,087,744 281 267 First Issue of Promissory Notes – 5 th non-preemptive right 200 4 7/4/2019 7/4/2024 CDI + 0.72% per year 56,087,744 225 214 First Issue of Promissory Notes – 6 th non-preemptive right 200 4 7/4/2019 7/4/2025 CDI + 0.72% per year 56,087,744 225 213 First Issue of Debentures – 2 nd non-preemptive right 2,000 200,000 9/4/2019 8/20/2021 CDI + 2.34% per year 876 — 1,762 First Issue of Debentures – 3 rd non-preemptive right 2,000 200,000 9/4/2019 8/20/2022 CDI + 2.65% per year 1,009 — 2,033 First Issue of Debentures – 4 th non-preemptive right 2,000 200,000 9/4/2019 8/20/2023 CDI + 3.00% per year 1,005 — 2,049 Second Issue of Debentures – 1 st non-preemptive right 940,000 940,000 6/1/2021 5/20/2026 CDI + 1.70% per year 1,011 951 — Second Issue of Debentures – 2 nd non-preemptive right 660,000 660,000 6/1/2021 5/22/2028 CDI + 1.95% per year 1,012 6 |
Provision for legal proceedings
Provision for legal proceedings | 12 Months Ended |
Dec. 31, 2021 | |
Provision for legal proceedings | 18 Provision for legal proceedings 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. The Company's policy is to record attorney’s fees upon success. In the explanatory notes, the amounts involved are disclosed for cases not yet concluded and with a possible chance of success. 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, 2020 169 64 49 282 Additions 39 44 8 91 Reversals (106 ) (23 ) (10 ) (139 ) Payments — (21 ) (28 ) (49 ) Monetary correction 7 5 8 20 Balance as of December 31, 2021 109 69 27 205 Restricted deposits for legal proceedings (65 ) (45 ) (2 ) (112 ) Net provision of judicial deposits 44 24 25 93 ( 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 ) (15 ) (36 ) (139 ) Balance as of December 31, 2020 169 64 49 282 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 18.1 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, 2021, for these matters is R$ 109 169 18.2 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, 2021, the Company recorded a provision of R$ 69 64 18.3 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, 2021, the provision for these lawsuits amounted to R$ 21 23 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, 2021, the provision for these lawsuits is R$ 6 5 The Company’s total civil, regulatory and property claims on December 31, 2021, is R$ 27 49 18.4 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$ 2,346 2,408 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$ 478 466 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$ 609 632 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$ 1,128 1,235 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 13 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$ 56 21 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$ 47 24 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, 2021, the estimated amount, in case of success of all lawsuits, was approximately R$ 15 17 18.5 Guarantees The Company presented bank guarantees and insurance guarantees to judicial process related a civil, tax and labor nature, described below: Schedule of guarantees Lawsuits Letter of guarantees Tax 630 Labor 98 Civil and others 223 Total 951 The cost of guarantees is approximately 0.32 18.6 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 STF ruled that the ICMS should be excluded from the calculation basis of PIS and COFINS. In May 2021, the STF judged the Declaration Embargoes in relation to the amount to be excluded from the PIS and COFINS calculation basis, which should only be the ICMS paid, or if the entire ICMS, as shown in the respective invoices. The STF issued a favorable decision to the taxpayers, concluding that the entire ICMS should be excluded from the PIS and COFINS calculation basis. Since such decision on March 15, 2017, the procedural progress has been as anticipated by our legal advisors without any change in management's judgment. In 2021, in line with the final decision, the Company processed the calculation in accordance with the rules defined by the STF and definitively recorded its right in the amount of R$ 216 175 41 18.7 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. 18.8 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 proceedings. The Company recorded amounts referring to judicial deposits in its assets as follows: Schedule of judicial deposits As of December 31, Lawsuits 2021 2020 Tax 65 64 Labor 50 67 Civil and others 4 3 Total 119 134 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | 19 Leases 19.1 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 a lessee The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets, which are recognized as an expense on a straight-line basis over the lease term. The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. At the commencement of the lease, the Company records a lease liability (see notes 14 and 15). The lease liability is calculated based on the present value of minimum lease payments, using the incremental borrowing rate, except when the interest rate implicit in the lease is readily determinable. 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. 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. The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any lease modification of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets, lease improvements and renovations carried out in stores are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives. 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. 19.2 Minimum future payments Lease liabilities totaled R$ 4,051 2,776 As of December 31, 2021 2020 Lease liabilities - minimum payments Less than 1 year 244 172 1 to 5 years 1,231 866 More than 5 years 2,576 1,738 Present value of lease liabilities 4,051 2,776 Future financing charges 4,042 2,478 Future lease payments 8,093 5,254 PIS and COFINS embedded in the present value of lease agreements 246 169 PIS and COFINS embedded in the gross value of lease agreements 492 319 Lease liabilities interest expense is stated in note 26. The incremental borrowing used to calculate lease liabilities was 10.53 9.72 19.3 Lease liability rollforward Amounts As of December 31, 2018 1,180 Addition – Lease 682 Lease modification 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 Addition – Lease 1,240 Lease modification 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 Addition – Lease 919 Lease modification 628 Interest provision 302 Amortizations (468 ) Write-off due to early termination of agreement (106 ) As of December 31, 2021 4,051 Current liabilities 244 Non-current liabilities 3,807 19.4 Lease expense on variable rents, low-value, and short-term assets As of December 31, 2021 2020 2019 (Expenses) revenues for the year: Variables (1% of sales) (6 ) (16 ) (19 ) Subleases (*) 31 22 20 (*) Refers mainly to revenue from lease agreements receivable from commercial galleries. |
Deferred revenues
Deferred revenues | 12 Months Ended |
Dec. 31, 2021 | |
Deferred revenues | 20 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. Schedule of liabilities related to assets held to sale As of December 31, Notes 2021 2020 Sale and Leaseback 1.4 68 — Rental of spaces in stores (i) 233 186 Checkstand (ii) 41 29 Gift card and others 2 2 Marketing 12 11 Total 356 228 Current 356 227 Non-current — 1 (i) Rental of backlight panels. (ii) Supplier product exhibition modules, or check stands, rental of POS displays, and front-fee anticipation with credit card operators. |
Income tax and social contribut
Income tax and social contribution | 12 Months Ended |
Dec. 31, 2021 | |
Income tax and social contribution | 21 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 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 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. 21.1 Reconciliation of income tax and social contribution expense For the year ended December 31, 2021 2020 2019 Earnings before income tax and social contribution 1,849 1,625 1,502 Expense of income tax and social contribution (629 ) (553 ) (511 ) Adjustments to reflect the effective rate Tax fines (1 ) (1 ) (2 ) Share of profits 16 105 84 Interest on Equity 22 — — ICMS subsidy - tax incentives (i) 241 — — Interest Selic credits (ii) 81 — — Credits of monetary corrections 11 — — Tax benefits 22 29 — Other permanent differences (2 ) (16 ) 3 Effective income tax (239 ) (436 ) (426 ) Income tax and social contribution for the year Current (366 ) (704 ) (293 ) Deferred 127 268 (133 ) Income tax and social contribution expenses (239 ) (436 ) (426 ) Effective rate 12,9 % 26.8 % 28.4 % (i) The Company has tax benefits that are characterized as investment subsidies as provided for in Complementary Law n° 160/17 and Law n°. 12,973/14. At the year ended December 31, 2021, the Company excluded the IRPJ and CSLL calculation bases from the amount constituted in the tax incentive reserve (see note 22.4). (ii) The credit refers to the decision general repercussion of STF which understood that the SELIC interest arising from the repetition of undue payment, have the nature of emergent damage. Therefore, there is no incidence of IRPJ and CSLL on the interest portion. 21.2 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, 2021 2020 Assets Liabilities Net Assets Liabilities Net Deferred income tax and social contribution Tax losses 167 — 167 — — — Provision for legal proceedings 59 — 59 81 — 81 Exchange rate variation — (7 ) (7 ) 26 — 26 Goodwill tax amortization — (317 ) (317 ) — (315 ) (315 ) Fair value adjustment 1 — 1 — (2 ) (2 ) Property, plant and equipment, intangible and investment properties 33 — 33 37 — 37 Unrealized gains with tax credits — (28 ) (28 ) — (60 ) (60 ) Cash flow hedge — (26 ) (26 ) — (20 ) (20 ) Lease net of right of use 150 — 150 131 — 131 Modification debt effects - IFRS 9 — — — 24 — 24 Others 13 — 13 16 — 16 Gross deferred income tax and social contribution assets (liabilities) 423 (378 ) 45 315 (397 ) (82 ) Compensation (378 ) 378 — (315 ) 315 — Net deferred income tax and social contribution assets (liabilities), net 45 — 45 — (82 ) (82 ) 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, 2021 as follows: Years Amounts Up to 1 year 26 From 1 year to 2 years 225 From 4 years to 5 years 5 More than 5 years 167 423 21.3 Rollforward Schedule of changes in deferred income tax and social contribution For the year ended December 31, 2021 2020 2019 At the beginning of the year (82 ) (1,191 ) (265 ) Benefits (expenses) in the year 127 372 (162 ) Corporate reorganization — 45 — Deconsolidation — 883 — Purchase partnership — — (747 ) Conversion currency adjustment — — (18 ) Exchange variation — (193 ) — Others — 2 1 At the end of the year 45 (82 ) (1,191 ) |
Shareholders_ equity
Shareholders’ equity | 12 Months Ended |
Dec. 31, 2021 | |
Shareholders’ equity | 22 Shareholders’ equity 22.1Capital stock and stock rights The Company’s capital stock on December 31, 2021 is R$ 788 761 1,346,674,477 1,341,757,835 On June 1, 2021 the Board of Directors approved a capital increase of R$18, corresponding to the issuance of 2,720 thousand common shares (or 544 thousand common shares considering the share split described below). On July 27, 2021 the Board of Directors approved a capital increase of R$8, corresponding to the issuance of 2,020 thousand common shares (or 404 thousand common shares considering the share split described below). On August 11, 2021, an Extraordinary Shareholders’ Meeting approved a one-to-five share split, whereby the Company’s 269,299,859 common shares were divided into 1,346,499,295 common shares, with no change in the Company’s total capital stock value. On December 7, 2021 the Board of Directors approved a capital increase of R$1, corresponding to the issuance of 175 thousand common shares. The Company's shareholding structure is shown as follows: For the year ended December 31, 2021 2020 Number of shares Participation Number of shares with split effect Participation Controlling shareholders 557,857,105 41.42 1,341,757,835 100.00 Outstanding shares 788,817,372 58.58 - - Total 1,346,674,477 100.00 1,341,757,835 100.00 22.2 Distribution of dividends and interest on equity 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, 2021 2020 2019 Net income for the year 1,610 1,398 1,047 Tax incentive reserve 709 — — % Legal reserve 5 % 5 % 5 % Legal reserve for the year 5 5 52 Minimum mandatory dividends - 25% 224 349 1 Interest on capital paid intermediaries (i) 56 264 247 Minimum mandatory dividends paid in the form of interest on shareholder´s equity 168 85 1 (i) At a meeting of the Board of Directors held on September 30, 2021, the advance payment of interest on equity in the gross amount of R$63 was approved, pursuant to which the withholding tax was deducted in the amount of R$7, corresponding to the net amount of R$56. Shareholders are entitled to receive a mandatory minimum annual dividend equivalent to 25% 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. 22.3Profit reserve Legal reserve: this is recorded by appropriating 5% of the net income of each fiscal year, observing the 20% limit of capital. On December 31, 2021, the amount was R$157 (R$152 on December 31, 2020). The legal reserve in the amount of R$5 on December 31, 2021 (R$5 on December 31, 2020) was constituted respecting the limit of 20% of the Company's capital stock, as established by article 193 of Law No. 6,404/76. Profit reserve For the year ended December 31, 2021 2020 Net income for the year 1,610 1,398 Tax incentive reserve 709 — Base for legal reserve 901 1,398 % Legal reserve 5 % 5 % Legal reserve for the year 5 5 22.4 Tax incentive reserve According to the legal basis mentioned in note 21.1, tax incentives granted by the States for a considered investment, deductible for the assessment of income tax and social contribution. Thus, at the end of December 31, 2021, the Company allocated the amount of R$709 to the tax incentive reserve. As provided for in article 30 of Law 12,973/14, the tax incentive reserve may be used to absorb losses, provided that the other profit reserves have already been fully absorbed, with the exception of the legal reserve, or for an increase in capital. Within the same legal provision, the tax incentive reserve and legal reserve are not part of the calculation basis for the minimum mandatory dividend, and the Company must subject it to taxation, in case of distribution. 22.5 Share-based payment 22.5.1 Recognized Options Granted The expenses associated to the Company’s executives’ share-based payments in accordance with IFRS 2 – Share-based payment, are recognized "Stock options granted". The Company's employees and executives of entities of their economic group may receive payment based on shares, when employees provide services in exchange for equity instruments (“transactions settled with shares”). The Company measures the transaction costs of employees eligible for share based compensation, based on the fair value of equity instruments on the grant date. Estimating the fair value of share-based payment transactions requires a definition of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires a definition of the most appropriate information for the valuation model, including the stock option life expectancy, volatility and dividend return, as well as the preparation of corresponding assumptions. The cost of operations settled with shares is recognized as an expense for the year, together with a corresponding increase in shareholders' equity, during the year in which the performance and / or service provision conditions are met. Accumulated expenses recognized in relation to equity instruments on each base date, up to the acquisition date, reflect the extent to which the acquisition period has expired and the best estimate of the Company of the number of equity instruments that will be acquired. The expense or reversal of expenses for each year represents the movement in accumulated expenses recognized at the beginning and end of the year. Expenses related to services that have not completed their acquisition period are not recognized, except in the case of operations settled with shares in which the acquisition depends on a market condition or non-acquisition of rights, which are treated as acquired, regardless of whether the market condition or non-acquisition of rights is satisfied or not, provided that all other performance and / or service provision conditions are met. When an equity instrument is modified, the minimum expense recognized is the expense that would have been incurred if the terms had not been modified. An additional expense is recognized in the event of a change the total fair value of the share-based payment transaction or that otherwise benefits the employee, as measured on the date of the change. In case of cancellation of an equity instrument, it is treated as if it were fully acquired on the date of cancellation, and any expenses not yet recognized, referring to the premium, are recognized immediately in the income for the year. This includes any premium whose conditions of non-acquisition under the control of the Company or the employee are not met. However, if the canceled plan is replaced by a new plan and substitute grants are generated, on the date it is granted, the canceled grant and the new plan will be treated as if they were a modification of the original grant, as described in the previous paragraph. All cancellations for transactions settled with shares are treated in the same way. The dilutive effect of outstanding options is reflected as an additional dilution of shares in the calculation of diluted earnings per share. The following describes the stock option plan on December 31, 2021. Company's compensation plan The Company's compensation plan ("Compensation Plan") is managed by Company’s Board of Directors, which delegated to the Human Resources Committee the responsibility to grant options and advise on the management of the Compensation Plan. Members of the Human Resources Committee meet to grant options from the Compensation Plan series and whenever there are questions raised regarding the compensation plan. Each series of options granted are assigned the letter "B" followed by a number. For the year ended December 31, 2021, B8 series options were in effect. Options granted to a participant will not be exercisable for a period of 36 (thirty six) months from the date of grant ("grace period"), except with formal authorization by the Company, and may only be exercised in the period beginning on the first day of the 37th (thirty-seventh) month from the date of grant, and ends on the last day of 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 correspond to R$0.01 ("exercise price"). The exercise price of the options shall be paid in full in local currency by check or wire transfer available to the bank account held by the Company, in the tenth (10th) day preceding the date of acquisition of the shares. The Company withholds any applicable tax under Brazilian tax law, less the number of shares delivered to the participant amount equivalent to taxes withheld. Company's option plan The Company's option plan ("Option Plan") is managed by the Company’s Board of Directors, which delegated to the Human Resources Committee the responsibility to grant options and advise on the management of the Option Plan. Members of the Human Resources Committee meet to grant options from the Option Plan series and whenever there are questions raised regarding the Option Plan. Each series of options granted receive the letter “C” followed by a number. For the year ended December 31, 2021, the C8 series options granted were in effect. For each series of stock options granted under the Option Plan, the exercise price of each stock option shall be equivalent to 80% of the closing price of the average of the Company's common shares traded in the prior twenty (20) days on the B3 prior to the date of the Human Resources Committee meeting that decides upon the granting of the options of that series ("exercise price"). Options granted to a participant shall be exercisable for a period of 36 (thirty six) months from the date of grant ("grace period"), and may only be exercised in the period beginning on the first day of the 37th (thirty-seventh) months 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. The participant may exercise their options in full or in part, in one or more times, if for each year the option exercise agreement is submitted during the exercise period. The exercise price of the options shall be paid in full in local currency by check or wire transfer available to the bank account held by the Company, provided that the payment deadline will always be the tenth (10th) day preceding the date to acquire the shares. Information relating to the Company's option plan and compensation plan is summarized below: Schedule of option plan and compensation plan As of December 31, 2021 Number of shares (in thousands) Granted series Grant date 1st exercise date Strike price on the grant date (in reais) Grantees Cancelled Current B8 5/31/2021 6/01/2024 0.01 363 (29) 334 C8 5/31/2021 6/01/2024 13.39 363 (29) 334 726 (58) 668 22.5.2 Consolidated information of Company's share-based payment plans According to the terms of the plans, each option offers its beneficiary the right to buy a share of the Company. In both plans, the grace period is 36 months, always measured from the date on which the Board of Directors approved the issuance of the respective series of options. The stock options may be exercised by their beneficiaries within 6 months after the end of the grace period of the respective grant date. To exercise their options, beneficiaries of the plans must be employees of the Company. The plans differ solely by exercise price of the options and in the existence or not of a restriction period for the sale of the shares acquired in the exercise of the option. According to the plans, the options granted in each of the series may represent maximum 2% of the total shares issued by the Company. The table below shows the maximum percentage of dilution to which current shareholders eventually being subject to in the event that all options granted are exercised until December 31, 2021: Schedule of dilutive effect on options granted For the year ended December 31,2021 (in thousands) Number of shares 1,346,674 Balance of effective stock options granted 668 Maximum percentage of dilution 0,05 % 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 B8 and C8 series: (a) expectation of dividends of 1.28%; (b) expectation of volatility nearly 37.96%; (c) the weighted average interest rate without risk of 7.66% and (d) exit rate of approximately 8.00%. The expectation of remaining average life of the series outstanding at December 31, 2021 is 29 months. The weighted average fair value of options granted at December 31, 2021 was R$17.21 and R$7.69 (B8 and C8, respectively). Schedule of weighted average fair value of options granted Shares Weighted average of exercise price (R$) Weighted average of remaining contractual term At December 31, 2020 - - - At December 31, 2021 Granted in the year 726 6,70 Cancelled in the year (58 ) 6,70 Outstanding at year end 668 6,70 2,42 Total to be exercised at December 31, 2021 668 6,70 2,42 The amount recorded for the year ended December 31, 2021 were R$2 (there is no amount recorded on December 31, 2020). 22.5.3 GPA's share - based payment plans Prior to the Company's spin-off from GPA, certain Company executives received compensation in the form of GPA stock options. As of December 31, 2021 Number of shares (in thousands) Granted series Grant date 1st exercise date Strike price on the grant date (in reais) Grantees Exercised Cancelled Outstanding Current B5 5/31/2018 5/31/2021 0.01 2,970 (2,640 ) (245 ) (85 ) — C5 5/31/2018 5/31/2021 47.19 2,970 (2,410 ) (300 ) (260 ) — B6 5/31/2019 5/31/2022 0.01 2,310 (645 ) (165 ) — 1,500 C6 5/31/2019 5/31/2022 53.23 1,795 (610 ) (210 ) — 975 B7 1/31/2021 5/31/2023 0.01 3,365 (515 ) (115 ) — 2,735 C7 1/31/2021 5/31/2023 38.58 2,485 (520 ) (115 ) — 1,850 15,895 (7,340 ) (1,150 ) (345 ) 7,060 According to the terms of the plans, each option offers its beneficiary the right to buy a share of the Company. In both plans, the grace period is 36 months, always measured from the date on which the Board of Directors approved the issuance of the respective series of options. The stock options may be exercised by their beneficiaries within 6 months after the end of the grace period of the respective grant date. To exercise their options, beneficiaries of the plans must be employees of the Company. The plans differ solely by the exercise price of the options and in the existence or not of a restriction period for the sale of the shares acquired in the exercise of the option. 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 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 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 B7 and C7 series: (a) dividend expectation of 1.61%, (b) volatility expectation of nearly 37.09% and (c) the weighted average interest rate of 5.47%. The expectation of remaining average life of the series outstanding at December 31, 2021 is 1.06 year (0.88 year at December 31, 2020). The weighted average fair value of options granted at December 31, 2021 was R$54.59 (R$58.78 at December 31, 2020). The movement of shares above refers to GPA shares and after the Company's spin-off, during the year of 2021, certain Company executives received compensation in GPA options shares until the date of exercise showed above. If the GPA plan for the Company's executives is thus extinguished, these plans will be recorded as an expense. The movement in the number of options granted, the weighted average of the exercise price and the weighted average of the remaining term are presented in the table below: Shares (in thousands) Weighted average exercise price (R$) Weighted average remaining term 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 Outstanding at year end 1,468 30.71 Total exercised on December 31, 2020 1,468 30.71 0.88 Total exercised on December 31, 2020 considering split effect (note 22.1) 7,340 6.14 0.88 At December 31, 2021 Granted in the year 6,125 16.86 — Canceled in the year (270 ) 22.36 — Exercised in the year (5,785 ) 22.76 — Expired in the year (350 ) 35.30 — Outstanding at year end 7,060 17.45 1.06 Total to be exercised at December 31, 2021 7,060 17.45 1.06 |
Net operating revenue
Net operating revenue | 12 Months Ended |
Dec. 31, 2021 | |
Net Operating Revenue | |
Net operating revenue | 23 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 at their fair value when control over the products is transferred to the customer, the Company no longer has control or responsibility for the goods sold and the economic benefits generated for the Company are probable, which occurs substantially upon delivery of products to customers in stores, when the Company's performance obligation is satisfied. Revenues are not recognized if their realization 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, and their amounts can be reliably measured. Schedule of net operating revenue For the year ended December 31, 2021 2020 2019 Gross operating revenue Goods 45,550 39,436 30,487 Services rendered and others 111 100 87 Gross operating revenue 45,661 39,536 30,574 (-) Revenue deductions Returns and sales cancellation (76 ) (73 ) (57 ) Taxes (3,687 ) (3,420 ) (2,435 ) Revenue deductions (3,763 ) (3,493 ) (2,492 ) Net operating revenue 41,898 36,043 28,082 |
Expenses by nature
Expenses by nature | 12 Months Ended |
Dec. 31, 2021 | |
Expenses by nature | 24 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. Schedule of expenses by nature For the year ended December 31, 2021 2020 2019 Inventory cost (34,163 ) (29,641 ) (22,929 ) Personnel expenses (2,512 ) (2,135 ) (1,691 ) Outsourced services (251 ) (224 ) (198 ) Selling expenses (646 ) (511 ) (408 ) Functional expenses (664 ) (600 ) (546 ) Other expenses (439 ) (264 ) (202 ) (38,675 ) (33,375 ) (25,974 ) Cost of sales (34,753 ) (30,129 ) (23,349 ) Selling expenses (3,334 ) (2,811 ) (2,273 ) General and administrative expenses (588 ) (435 ) (352 ) (38,675 ) (33,375 ) (25,974 ) |
Other operating expenses, net
Other operating expenses, net | 12 Months Ended |
Dec. 31, 2021 | |
Other operating expenses, net | 25 Other operating expenses, net Other operating revenue and expenses correspond to the effects of significant or unusual events during the fiscal year not classified into the definition of other items of the statement of operations. Schedule of other operating expenses, net For the year ended December 31, 2021 2020 2019 Result with property, plant and equipment 12 (42 ) 5 Reversal (provision) for legal proceedings 9 (18 ) (53 ) Restructuring expenses and others (i) (74 ) (71 ) 37 Covid-19 spending on prevention — (134 ) — Indemnity assets — 168 — Total (53 ) (97 ) (11 ) (i) Refers primarily to expenses with the spin-off and acquisition of Extra Hiper stores with payments of legal fees, property appraisal and due diligence. |
Net financial result
Net financial result | 12 Months Ended |
Dec. 31, 2021 | |
Net financial result | 26 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. Schedule of net financial result For the year ended December 31, 2021 2020 2019 Financial revenues Cash and cash equivalents interest 87 39 57 Monetary correction (assets) 93 299 175 Other financial revenues 8 5 4 Total financial revenues 188 343 236 Financial expenses Cost of debt (543 ) (474 ) (247 ) Cost and discount of receivables (51 ) (31 ) (34 ) Monetary correction (liabilities) (13 ) (11 ) (8 ) Interest on leasing liabilities (292 ) (219 ) (138 ) Other financial expenses (19 ) (51 ) (9 ) Total financial expenses (918 ) (786 ) (436 ) Total (730 ) (443 ) (200 ) |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings per share | 27 Earnings per share The Company calculates earnings per share by dividing the net income attributable to controlling shareholders, referring to each class of share, by the weighted average of the number of common shares during the fiscal year. Diluted earnings per share are calculated by dividing the net income attributed to holders of common shares (after adjusting for interest on preferred shares and on convertible securities, in both cases net of taxes) by the weighted average amount of common shares available during the year plus the weighted average number of common shares that would be issued upon conversion of all potential diluted common shares into common shares. On August 11, 2021, an Extraordinary Shareholders' Meeting approved a one-to-five share split, whereby the Company’s 269,299,859 1,346,499,295 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 year: Schedule of earnings per share For the year ended December 31, 2021 Basic number: Allocated basic earnings and not distributed 1,610 Net income allocated available to common shareholders 1,610 Basic denominator (millions of shares) Weighted average of the number of shares 1,344 Basic earnings per million shares (R$) 1.19802 For the year ended December 31, 2021 Diluted number: Allocated diluted earnings and not distributed 1,610 Net income allocated available to common shareholders 1,610 Diluted denominator (millions of shares) Weighted average of the number of shares 1,344 Stock options plan 11 Diluted weighted average of shares 1,355 Diluted earnings per million shares (R$) 1.18852 2020 Originally presented Split effect Restated Basic and diluted number: Allocated basic earnings and not distributed- Continued operation 1,189 — 1,189 Allocated basic earnings and not distributed – Discontinued operation 209 — 209 Net income allocated available to common shareholders 1,398 — 1,398 Basic and diluted denominator (millions of shares) Weighted average of the number of shares 268 1,072 1,340 Basic and diluted earnings per million shares (R$) - Continued operations 4.43657 0.88731 Basic and diluted earnings per million shares (R$) – Attributable to controlling shareholders 5.21642 1.04328 2019 Originally presented Split effect Restated Basic and diluted number: Allocated basic earnings and not distributed- Continued operation 1,076 — 1,076 Allocated basic earnings and not distributed- Discontinued operation (29 ) — (29 ) Net income allocated available to common shareholders 1,047 — 1,047 Basic and diluted denominator (millions of shares) Weighted average of the number of shares 258 1,032 1,290 Basic and diluted earnings per million shares (R$) - Continued operations 4.17054 0.83411 Basic and diluted earnings per million shares (R$) – Attributable to controlling shareholders 4.05814 0.81163 |
Non-cash transactions
Non-cash transactions | 12 Months Ended |
Dec. 31, 2021 | |
Non-cash Transactions | |
Non-cash transactions | 28 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 14; • Purchase of property, plant and equipment and intangible assets not yet paid, in notes 14.6 and 11.1; and • Provision for dividends receivable in note 12. |
Assets held for sale
Assets held for sale | 12 Months Ended |
Dec. 31, 2021 | |
Assets held for sale | 29 Assets held for sale Non-current assets and groups of assets are classified as held for sale if the carrying amount will be recovered through a sale transaction, rather than continued use. This condition is considered to be met only when the asset is available for immediate sale in its present condition, subject only to terms that are customary for sales of such assets and their sale is highly probable. Management must be committed to effecting the sale, and the estimated time for the sale to be completed must be within one year. Non-current assets classified as held for sale are measured at the lower of carrying amount and market value less cost of sale. Schedule of assets held for sale For the year ended December 31,2021 Sale and leaseback (i) 147 Extra Hiper stores (ii) 403 Total 550 (i) Refers to the two properties as detailed in note 1.4. (ii) For the property, plant and equipment acquired from the 6 properties owned by GPA, the Company expects to complete the sale of these assets to a certain real estate fund (see notes 1.5 and 32.2). After the sale is completed, the Company will enter into a lease agreement with the real estate fund to operate the commercial points. |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2021 | |
Segment information | 30 Segment information The Company is involved in the operation of retail stores located in 23 Brazilian states and the Federal District 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 and 2021 the Company operated in a single segment. Geographic distribution of stores Our stores are located throughout 23 Brazilian states and the Federal District. We operate mainly in the Southeast region of Brazil, in states of São Paulo, Rio de Janeiro and Minas Gerais. The Southeast region accounted for 56.6% and 56.3% of our net operating revenue for the years ended December 31, 2021 and 2020, respectively, while the other Brazilian regions (North, Northeast, Midwest and South), in the aggregate, accounted for 43.4% and 43.7% of our net operating revenue for the years ended December 31, 2021 and 2020, respectively. |
Discontinued operation
Discontinued operation | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued operation | 31 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: Schedule of discontinued operation 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 (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 (used) 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 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. |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent events | 32 Subsequent events 32.1 Funding of the fourth issue of debentures On January 7, 2022 funds were raised in relation to the fourth issue of non-convertible debentures, in a single series, in the amount of R$ 2,000 CDI + 1.75% paid semi-annually until maturity. The principal amount will be paid in two equal installments, in 2026 and in 2027 32.2 Extra Hiper Stores On January 10, 2022, the Company paid R$850 to GPA in connection with the commercial rights of Extra Hiper stores (see note 1.5). On January 31, 2022, the Company and GPA completed the transfer of the ownership agreement for 35 properties (11 properties owned by GPA and 24 properties owned by third parties), located in the Southeast, Midwest, North and Northeast regions country, with this transfer, the Company owns 55 of the 70 properties involved in the transaction and expects to complete the transfer process of the 15 remaining properties by the end of the first quarter of 2022. On February 25, 2022, the Board of Directors of the Company and GPA approved the definitive agreements with the real estate investment fund Barzel Properties (“Fund”), for the disposal of up to 17 properties owned by GPA to the Fund, for the amount of approximately R$ 1.2 billion 32.3 Funding of commercial paper On February 10, 2022, the Company raised funds through the 1st issue of Commercial Paper Notes, in a single series, in the amount of R$ 750 CDI + 1.70% paid semi-annually until maturity. The principal amount will be settled in a single installment at the end of the three-year contract (2025) 32.4 Capital increase due to exercise of stock options On February 21, 2022, our board of directors approved an issuance of 239,755 new Sendas common shares due to the exercise of stock options granted to certain employees under the terms of our share-based compensation plans. This issuance of Sendas common shares increased our total outstanding common shares to 1,346,914,232 common shares and our total capital stock by R$1, from R$788 to R$789. These shares were issued on March 8, 2022. The new Sendas common shares issued have the same characteristics and conditions and enjoy the same rights, benefits and advantages of existing Sendas common shares. 32.5 Funding of the fifth issuance of debentures On April 5, 2022, the Company raised funds through the 5 th 32.6 Approval of dividend distribution At the annual general shareholders’ meeting held on April 28, 2022, our shareholders voted to approve the minimum mandatory dividend in the aggregate amount of R$224, calculated in accordance with Brazilian Corporate Law and our bylaws, with respect to the fiscal year ended December 31, 2021. This amount excludes the tax incentive reserve related to the recognition of tax credits for investment subsidy in the total amount of R$709. Of the total dividend amount, R$56 was paid on October 16, 2021 as interest on shareholders’ equity. The remaining amount of R$168, corresponding to R$0.125038407679398 per common share is expected to be paid by June 28, 2022, which is 60 days from the annual general shareholders’ meeting. Holders of Sendas ADSs will receive the dividend distribution to which they are entitled through the Sendas Depositary. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 balance sheet 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; · there is no unconditional right to defer the settlement of the liability for at least twelve months after; or · 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. |
Transactions between entities under common control | 3.3 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. |
Joint Venture | 3.4 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 recognized at cost. |
Tax incentive reserve | 3.5 Tax incentive reserve Tax incentive reserve is recognized when there is reasonable assurance that the entity will comply with all conditions established and related to the grant and that the grant will be received. When the benefit relates to an expense item, it is recognized as revenue over the period of the benefit systematically in relation to the respective expenses for whose benefit it is intended to offset. When the benefit relates to an asset, it is recognized as deferred revenue in liabilities and on a systematic and rational basis over the useful life of the asset. |
Discontinued operation | 3.6 Discontinued operation 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 31). 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 22.2). |
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, 2021 was R$ 406 549 116 |
Corporate information (Tables)
Corporate information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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. Schedule of derecognition of exito subsidiary 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 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 payable 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 revenues 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 proceedings 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 26,944 |
Adoption of new procedures, a_2
Adoption of new procedures, amendments to and interpretations of existing standards issued by the IASB and published standards effective from 2019 (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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: | 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. The Company adopted IFRS 16 using the full retrospective method of adoption, with the date of application of January 1, 2019, with retrospective effect from January 1, 2017 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. 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 IAS 39, IFRS 7 and IFRS 9: 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 IFRS 16: 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 (*) Applicable for acquisitions concluded after January 1, 2020. |
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. Schedule of new standards, amendments and interpretations issued but not yet effective Accounting pronouncement Description Effective for annual periods beginning on or after Amendments to IAS1: Classification of liabilities as current and non-current and disclosure of accounting policies 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. - The amendments are to help entities disclose accounting policies that are more useful by replacing the requirement for disclosure of significant accounting policies for material accounting policies. 01/01/2023 Amendments to IAS8: Definition of accounting estimates Introduce the definition of 'accounting estimate'. The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and correction of errors. In addition, they clarify how entities use measurement and input techniques to develop accounting estimates. 01/01/2023 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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. Schedule of cash and cash equivalents As of December 31, 2021 2020 Cash and bank accounts – Brazil 74 64 Cash and bank accounts – Abroad (*) 25 29 Financial investments – Brazil (**) 2,451 3,439 2,550 3,532 (*) As of December 31, 2021, the Company had funds held abroad, being R$25 in US Dollars (R$ 24 5 (**) As of December 31, 2021, the financial investments correspond to repurchase and resale agreements, with a weighted average interest rate of 109.64% of CDI – Interbank Deposit Certificate (Weighted average interest rate 96.96 |
Trade receivables (Tables)
Trade receivables (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Trade Receivables | |
Schedule of trade receivables | Schedule of trade receivables As of December 31, Notes 2021 2020 Credit card companies 8.1 75 62 Credit card companies with related parties 11.1 24 17 Sales ticket and payment slips 8.2 118 77 Trade receivables with related parties 11.1 31 10 Trade receivables with suppliers/payment slips 23 20 271 186 Provision for expected credit losses 8.3 (6 ) (4 ) 265 182 |
Set forth below the breakdown of trade receivables by their gross amount by maturity period: | Set forth below the breakdown of trade receivables by their gross amount by maturity period: Overdue Total Due Less than Less than Less than > 90 days 2021 271 269 1 — — 1 2020 186 181 2 — — 3 |
Provision for expected credit losses | 8.3 Provision for expected credit losses For the year ended December 31, 2021 2020 2019 At the beginning of the year (4 ) (32 ) (4 ) Additions (15 ) (56 ) — Reversals 13 5 — Write off trade receivables — 42 — Discontinued operations — 43 — Foreign currency translation adjustment — (6 ) — Business combination — — (28 ) At the end of the year (6 ) (4 ) (32 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of inventories | Schedule of inventories As of December 31, Notes 2021 2020 Stores 3,955 3,416 Distribution centers 878 818 Commercial agreements 9.1 (416 ) (444 ) Allowance for loss on inventory obsolescence and damages 9.2 (37 ) (51 ) 4,380 3,739 |
Allowance for loss on inventory (obsolescence and damages) | 9.2 Allowance for loss on inventory (obsolescence and damages) For the year ended December 31, 2021 2020 2019 At the beginning of the year (51 ) (61 ) (34 ) Additions (315 ) (16 ) (5 ) Reversals 13 3 — Discontinued operations — 28 — Foreign currency translation adjustment — (5 ) — Business combinations — — (22 ) Write-offs 316 — — At the end of the year (37 ) (51 ) (61 ) |
Recoverable taxes (Tables)
Recoverable taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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. | 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 2021 2020 State tax credits – ICMS 10.1 1,153 1,311 Social Integration Program and Contribution for Social Security Financing - PIS/COFINS 10.2 370 141 Social Security Contribution - INSS 10.3 54 36 Income tax and social contribution 10.4 61 144 Others 8 2 Total 1,646 1,634 Current 876 768 Non-current 770 866 |
As of December 31, 2021, 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. | 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. As of December 31, 2021, 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 402 From 1 to 2 years 263 From 2 to 3 years 277 From 3 to 4 years 84 From 4 to 5 years 32 More than 5 years 95 Total 1,153 |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Balances and related party transactions | 11.1 Balances and related party transactions Assets balance Liabilities balance Clients Other assets Suppliers Other liabilities 2021 2020 2021 2020 2021 2020 2021 2020 Controlling shareholder Wilkes Participações S.A. (i) — — — — — — 2 — Euris (ii) — — — — — — 1 — Casino Guichard Perrachon (iii) 13 10 — — — — — — 13 10 — — — — 3 — Other related parties GPA (iv) 18 — 100 168 8 — 365 41 Compre Bem — — — — — — — — Greenyellow (v) — — — — — — — — Joint venture Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento (“FIC”) (vi) 24 17 14 10 14 11 — — 42 17 114 178 22 11 365 41 Total 55 27 114 178 22 11 368 41 Transactions Purchases Revenue (Expenses) 2021 2020 2019 2021 2020 2019 Controlling shareholder Wilkes Participações S.A. (i) — — — (6 ) — — Euris (ii) — — — (1 ) — — Casino Guichard Perrachon (iii) — — — (35 ) (19 ) 2 — — — (42 ) (19 ) 2 Other related parties GPA (iv) — — 1 (137 ) (183 ) (162 ) Compre Bem — 1 13 (1 ) 3 (3 ) Greenyellow (v) — — — (26 ) (47 ) 1 Puntos Colombia — — — — (114 ) (13 ) Tuya — — — — 24 21 Others — — — — (2 ) (3 ) Joint venture Financeira Itaú CBD S.A. Crédito, Financiamento e Investimento (“FIC”) (vi) — — — 15 — — — 1 14 (149 ) (319 ) (159 ) Total — 1 14 (191 ) (338 ) (157 ) The related-party transactions are carried out according to prices, terms and conditions agreed upon the parties and are measured substantially at market value, namely: (i) Wilkes Participações S.A.: reimbursement of personnel expenses, equipment rental and maintenance. (ii) Euris: reimbursement of expenses according to cost sharing contracts (expenses with personnel, expatriates, maintenance, marketing and rent). (iii) Casino: (i) 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; (ii) Agency Agreement: entered into 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. (iv) GPA: (i) Separation Agreement: entered into between the Company and GPA on December 14, 2020, in which the companies undertake to indemnify each other for events that may arise as a result of the corporate reorganization (see note 1.3); and (ii) Agreement for Onerous Assignment of Exploration Rights of Commercial Points and Other Agreements: entered into between the Company and GPA on December 16, 2021 for the acquisition of commercial rights. On December 31, 2021, the Company recorded and intercompany liability for an amount of R$201 referring to the acquisition of 20 commercial points (see note 1.5). (v) Greenyellow: agreement with the Company to set the rules for the lease and maintenance of photovoltaic system equipment by Greenyellow at ASSAÍ stores; and 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. |
Expenses related to the statutory executive board compensation recorded in the Company’s statement of operations is as follows | Expenses related to the statutory executive board compensation recorded in the Company’s statement of operations is as follows Base salary (i) Variable compensation (i) Stock option plan Total 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 Board of director 25,533 — — — — — 7,111 — — 32,644 — — Executive officers 20,241 12,963 15,360 14,485 7,027 8,421 7,632 4,877 5,684 42,358 24,867 29,465 Fiscal council 331 — — — — — — — — 331 — — 46,105 12,963 15,360 14,485 7,027 8,421 14,743 4,877 5,684 75,333 24,867 29,465 |
Investment in joint venture (Ta
Investment in joint venture (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investment In Joint Venture | |
Schedule of company joint venture | The details of the Company's joint venture are shown below: Schedule of company joint venture Participation in investments - % 2021 2020 Group Company Country Company Financeira Itaú CBD S.A Bellamar Empreendimento e Participação S.A Brazil 50.00 50.00 |
The Company initially 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 Company initially 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 Breakdown Amount As of December 31, 2019 320 Equity accounting 27 Capital Increase 51 Equity on other comprehensive income 82 Discontinued operations (note 1) (480 ) Corporate restructuring (note 1) 769 As of December 31, 2020 769 Amount As of December 31, 2020 769 Share of profit of associates 47 Dividends received (11 ) Dividends receivable (16 ) As of December 31, 2021 789 |
Schedule of Identifiable Assets and Liabilities | The fair value of FIC's identifiable assets and liabilities on December 31, 2020 (acquisition date) are demonstrated as follows: Schedule of Identifiable Assets and Liabilities Assets Cash and cash equivalents 29 Marketable securities 22 Credit operations 6,213 Other credits 98 Other receivables 3 Other credits, non-current 265 Property, plant and equipment and intangible assets 2,170 Investments 47 8,847 Liabilities Deposits (790 ) Interfinancial relations (2,457 ) Other liabilities (2,256 ) (5,503 ) Total fair value of identifiable net assets 3,344 Company's participation 17.88 % Fair value of investment acquired 599 Acquisition price 769 Fair value of investment acquired (599 ) Goodwill 170 |
Business combination (Tables)
Business combination (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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: | 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 Cash consideration transferred gross 9,413 Dividends received related to 2018 (42 ) Total cash consideration transferred 9,371 |
The fair value of identifiable assets acquired and liabilities assumed from Exito, on the acquisition date, are as follows: | The fair value of identifiable assets acquired and liabilities assumed from Exito, 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 Assets recognised as of acquisition date 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 LiabilitiesRecognisedAsOfAcquisitionDate 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. |
Schedule of goodwiill identified | The Company recorded a residual goodwill of R$ 165 Schedule of goodwiill identified 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 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of property and equipment | Schedule of property and equipment Asset Category Average annual depreciation rate in % Buildings 2.78 Leasehold improvements 4.28 Machinery and equipment 12.05 Facilities 6.94 Furniture and appliances 11.36 |
Schedule of property and equipment rollforward | Schedule of property and equipment rollforward As of December 31, 2020 Additions Lease modification Write-off Depreciation Transfer and others (i) As of December 31, 2021 Land 481 207 — (2 ) — (116 ) 570 Buildings 609 258 — (4 ) (15 ) (192 ) 656 Improvements 2,598 1,161 — (1 ) (182 ) 20 3,596 Equipment 635 307 — (1 ) (128 ) 15 828 Facilities 269 118 — (1 ) (25 ) 1 362 Furnitures and appliances 340 110 — (2 ) (53 ) 21 416 Constructions in progress 78 266 — — — (109 ) 235 Others 37 6 — — (14 ) 8 37 Subtotal 5,047 2,433 — (11 ) (417 ) (352 ) 6,700 Lease - right of use: Buildings 2,423 885 628 (92 ) (244 ) 4 3,604 Equipment 6 16 — — (5 ) (1 ) 16 Subtotal 2,429 901 628 (92 ) (249 ) 3 3,620 Total 7,476 3,334 628 (103 ) (666 ) (349 ) 10,320 (i) In 2021, presents the transfer between fixed assets to “assets held for sale”, in amount of R$349 (see note 1.4). As of December 31, 2019 Additions Lease modification Write-off Depreciation Transfer and others (ii) 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 ) 7,476 (ii) In 2020, presents: (a) the capital contribution through GPA’s real state in the amount of R$223; and (b) the transfer of fixed assets to “assets held for sale” in amount of R$380. As of December 31, 2018 Additions Additions from business acquired Lease modification 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 |
Schedule of property plant breakdown | Schedule of property plant breakdown As of December 31, 2021 2020 Historical cost Accumulated depreciation Net amount Historical cost Accumulated depreciation Net amount Land 570 — 570 481 — 481 Buildings 767 (111 ) 656 704 (95 ) 609 Improvements 4,387 (791 ) 3,596 3,203 (605 ) 2,598 Equipment 1,373 (545 ) 828 1,061 (426 ) 635 Facilities 472 (110 ) 362 354 (85 ) 269 Furnitures and appliances 635 (219 ) 416 513 (173 ) 340 Construction in progress 235 — 235 78 — 78 Others 115 (78 ) 37 101 (64 ) 37 8,554 (1,854 ) 6,700 6,495 (1,448 ) 5,047 Finance lease — — Buildings 4,566 (962 ) 3,604 3,205 (782 ) 2,423 Equipment 61 (45 ) 16 47 (41 ) 6 4,627 (1,007 ) 3,620 3,252 (823 ) 2,429 Total Property, plant and equipment 13,181 (2,861 ) 10,320 9,747 (2,271 ) 7,476 |
Schedule of additions to property and equipment for cash flow presentation | Schedule of additions to property and equipment for cash flow presentation 14.6 Additions to property, plant and equipment for cash flow presentation purpose are as follows: 2021 2020 2019 Additions 3,334 2,788 1,997 Leases (901 ) (1,241 ) (685 ) Capitalized interest (38 ) (12 ) (11 ) Financing of property, plant and equipment – Additions (2,284 ) (1,437 ) (1,217 ) Financing of property, plant and equipment – Payments 2,120 1,464 1,273 Total 2,231 1,562 1,357 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 operations in the year the asset is derecognized. Schedule of intangible assets As of December 31, 2020 Additions Amortizations Write-off Transfers As of December 31, 2021 Goodwill 618 — — — — 618 Softwares 70 21 (14 ) (1 ) (1 ) 75 Commercial rights (i) 310 833 (7 ) — — 1,136 Tradename 39 — — — — 39 Subtotal 1,037 854 (21 ) (1 ) 1 1,868 — 18 — — 1 19 Subtotal — 18 — — 1 19 1,037 872 (21 ) (1 ) — 1,887 (i) Includes commercial rights related to 20 commercial points sold by GPA to the Company as a result of the Transaction for an amount of R$798 (see note 1.5). As of December 31, 2019 Additions Amortizations Write-off Conversion adjustment to reporting currency Transfers Discontinued operation As of December 31, 2020 Goodwill 787 — — — 38 1 (208 ) 618 Softwares 134 72 (40 ) (1 ) 20 — (115 ) 70 Commercial rights 313 6 (8 ) — (1 ) — — 310 Tradename 3,054 — — — 713 — (3,728 ) 39 4,288 78 (48 ) (1 ) 770 1 (4,051 ) 1,037 As of December 31, 2018 Additions Business combination Amortizations Exchange rate changes As of December 31, 2019 Goodwill 618 — 165 — 4 787 Software 60 28 60 (15 ) 1 134 Commercial rights 296 24 1 (8 ) — 313 Tradename 39 — 2,949 — 66 3,054 1,013 52 3,175 (23 ) 71 4,288 As of December 31, 2021 2020 Historical cost Accumulated amortization Net amount Historical cost Accumulated amortization Net amount Goodwill 871 (253 ) 618 1,741 (1,123 ) 618 Softwares 133 (58 ) 75 126 (56 ) 70 Commercial rights 1,160 (24 ) 1,136 327 (17 ) 310 Tradename 39 0 39 39 0 39 2,203 (335 ) 1,868 2,233 (1,196 ) 1,037 Lease - right of use: Assets and rights 28 (9 ) 19 — — — Total of intangible assets 2,231 (344 ) 1,887 2,233 (1,196 ) 1,037 |
Schedule of additions to intangible assets | Schedule of additions to intangible assets 2021 2020 Additions 872 25 Other (18 ) — Total 854 25 |
Trade payables, net (Tables)
Trade payables, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of trade payables, net | Schedule of trade payables, net As of December 31, Notes 2021 2020 Product suppliers 16.1 6,422 5,450 Service providers 74 85 Service providers - related parties 11.1 22 11 Bonuses from suppliers 16.2 (576 ) (488 ) Total 5,942 5,058 |
Financial instruments (Tables)
Financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of financial instruments and their carrying amounts | The main financial instruments and their carrying amounts, by category, are as follows: Schedule of financial instruments and their carrying amounts Carrying amounts Notes 2021 2020 Financial assets Amortized cost Related parties - assets 11.1 114 178 Accounts receivable and other accounts receivable 169 117 Fair value through income Cash and cash equivalents 7 2,550 3,532 Financial instruments - fair value hedge- long position 17.12.1 32 68 Fair value through other comprehensive income Accounts receivable with credit card companies and sales tickets 155 99 Financial liabilities Other financial liabilities - amortized cost Related parties - liabilities 11.1 (368 ) (41 ) Trade payables 16 (5,942 ) (5,058 ) Financing through acquisition of assets (197 ) (34 ) Borrowings and financing 17.12.1 (1,210 ) (897 ) Debentures 17.13 (6,446 ) (6,599 ) Lease liabilities 19.2 (4,051 ) (2,776 ) Fair value through income Borrowings and financing, including derivatives 17.12.1 (341 ) (335 ) Financial instruments - Fair value hedge - short position 17.12.1 (36 ) — Net exposure (15,571 ) (11,746 ) |
Schedule of capital structure | The Company’s capital structure is as follows: Schedule of capital structure As of December 31, 2021 2020 Borrowings, financing and debentures (8,033 ) (7,831 ) (-) Cash and cash equivalents 2,550 3,532 (-) Derivative financial instruments 32 68 Net debt (5,451 ) (4,231 ) Shareholders´ equity 2,766 1,347 % Net debt over shareholders´ equity 197 % 314 % |
Schedule of aging profile of financial liabilities | The table below summarizes the aging profile of the Company’s financial liabilities as of December 31, 2021. Schedule of aging profile of financial liabilities Less than 1 year 1 to 5 years More than 5 years Total Borrowings and financing 529 1,347 9 1,885 Debentures 399 7,343 3,035 10,777 Derivative financial instruments (73 ) (284 ) 288 (69 ) Lease liabilities 628 2,868 4,597 8,093 Trade payable 5,942 — — 5,942 Total 7,425 11,274 7,929 26,628 |
Schedule of hedge position | Schedule of hedge position Notional value Fair value 2021 2020 2021 2020 Swap with hedge accounting Hedge purpose (debt) 1,888 309 1,869 335 Long position Fixed rate 106 106 60 72 USD + Fixed 282 203 281 263 Hedge - CRI 1,500 — 1,528 — Short position (1,888 ) (309 ) (1,873 ) (267 ) Net hedge position — — (4 ) 68 |
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: Schedule of net exposure of derivative financial instruments Market projections Transactions Notes Risk(CDI Increase) Carrying Amount Balance at 2021 Scenario (I) Scenario (II) Scenario (III) Borrowings and financing 17.12.1 CDI + 1.94% per year 1,551 (1,499 ) 155 118 82 Fixed rate swap contract (short position) 17.12.1 TR + 9.80% per year (32 ) (58 ) (53 ) (64 ) (69 ) Foreign exchange swap contract (short position) 17.12.1 CDI + 1.25% per year 36 (291 ) (58 ) (49 ) (63 ) Debentures 17.12.1 CDI + 1.48% per year 6,446 (6,523 ) (1,163 ) (1,378 ) (1,593 ) Total net effect (loss) 8,001 (8,371 ) (1,119 ) (1,373 ) (1,643 ) |
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 financial statements: Schedule of fair value hierarchy of financial assets and liabilities Carrying amount Fair value 2021 2020 2021 2020 Level Trade receivables with credit cards 155 99 155 99 2 Swaps of annual rates between currencies (11 ) 57 (11 ) 57 2 Interest rate swaps 4 11 4 11 2 Interest rate swaps - CRI 3 — 3 — 2 Borrowings and financing (fair value) (341 ) (335 ) (341 ) (335 ) 2 Borrowings and financing (amortized cost) (7,656 ) (7,496 ) (7,372 ) (6,529 ) 2 (7,846 ) (7,664 ) (7,562 ) (6,697 ) |
Schedule of consolidated position of outstanding derivative transactions | The outstanding derivative financial instruments are presented in the table below: Schedule of consolidated position of outstanding derivative transactions As of December 31, Description Risk Notional (millions) Due date 2021 2020 Debt USD – BRL US$ 50 2021 — 57 USD – BRL US$ 50 2023 (11 ) — Debt CRI – BRL R$ 1,500 2028 and 2031 3 — Interest rate swaps registered at CETIP Fixed rate x CDI R$ 54 2027 2 5 Fixed rate x CDI R$ 52 2027 2 6 Derivatives - Fair value hedge – Brazil (4 ) 68 |
Schedule of debt weighted average | Schedule of debt weighted average As of December 31, Weighted average rate 2021 2020 Current Debentures and promissory notes Debentures and promissory notes CDI + 1.53% per year 194 1,864 Borrowing costs (14 ) (24 ) Total debentures and promissory notes 180 1,840 Borrowings and financing in domestic currency Working capital TR + 9.80% 14 12 Working capital CDI + 2.33% per year 419 9 Borrowing costs (4 ) (5 ) Total domestic currency 429 16 In foreign currency Working capital CDI + 1.25% per year 1 264 Total foreign currency 1 264 Total of borrowings and financing 430 280 Derivative financial instruments Swap contracts CDI + 0.86% per year (4 ) (57 ) Swap contracts CDI + 1.35% per year 3 — Total derivative financial instruments (1 ) (57 ) Total current 609 2,063 As of December 31, Weighted average rate 2021 2020 Non-current Debentures and promissory notes Debentures and promissory notes CDI + 1.48% per year 6,329 4,780 Borrowing costs (63 ) (21 ) Total debentures and promissory notes 6,266 4,759 Borrowings and financing in domestic currency Working capital TR + 9.80% 47 60 Working capital CDI + 1.74% per year 800 901 Borrowing costs (5 ) (9 ) Total domestic currency 842 952 In foreign currency Working capital CDI + 1.25% per year 279 — Total foreign currency 279 — Total of borrowings and financing 1,121 952 Derivative financial instruments Swap contracts CDI + 0.03% per year (28 ) (11 ) Swap contracts CDI + 1.35% per year 33 — Total derivative financial instruments 5 (11 ) Total non-current 7,392 5,700 Total 8,001 7,763 Current assets 4 57 Non-current assets 28 11 Current liabilities 613 2,120 Non-current liabilities 7,420 5,711 |
Schedule of rollforward of financial instruments | Schedule of rollforward of financial instruments Amounts Balance as January 1, 2019 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 Funding - working capital 6,090 Interest provision 559 Swap contracts 39 Mark-to-market 31 Exchange rate and monetary variation 5 Debt modification impact (71 ) Borrowing costs 64 Interest amortization (406 ) Principal amortization (6,075 ) Swap amortization 2 Balance as of December 31, 2021 8,001 |
Schedule of noncurrent maturities | Schedule of noncurrent maturities Maturity Amounts From 1 to 2 years 1,648 From 2 to 3 years 3,602 From 3 to 4 years 802 From 4 to 5 years 572 More than 5 years 836 Total 7,460 Borrowing Cost (68 ) Total 7,392 |
Schedule of debentures and promissory notes | Schedule of debentures and promissory notes Date As of December 31, Type Issue amount Outstanding Debentures (units) Issuance Maturity Annual financial charges Unit price (in Reais) 2021 2020 First Issue of Promissory Notes – 2 nd non-preemptive right 50 1 7/4/2019 7/5/2021 CDI + 0.72% per year 52,998,286 — 53 First Issue of Promissory Notes – 3 rd non-preemptive right 50 1 7/4/2019 7/4/2022 CDI + 0.72% per year 56,087,744 57 53 First Issue of Promissory Notes – 4 th non-preemptive right 250 5 7/4/2019 7/4/2023 CDI + 0.72% per year 56,087,744 281 267 First Issue of Promissory Notes – 5 th non-preemptive right 200 4 7/4/2019 7/4/2024 CDI + 0.72% per year 56,087,744 225 214 First Issue of Promissory Notes – 6 th non-preemptive right 200 4 7/4/2019 7/4/2025 CDI + 0.72% per year 56,087,744 225 213 First Issue of Debentures – 2 nd non-preemptive right 2,000 200,000 9/4/2019 8/20/2021 CDI + 2.34% per year 876 — 1,762 First Issue of Debentures – 3 rd non-preemptive right 2,000 200,000 9/4/2019 8/20/2022 CDI + 2.65% per year 1,009 — 2,033 First Issue of Debentures – 4 th non-preemptive right 2,000 200,000 9/4/2019 8/20/2023 CDI + 3.00% per year 1,005 — 2,049 Second Issue of Debentures – 1 st non-preemptive right 940,000 940,000 6/1/2021 5/20/2026 CDI + 1.70% per year 1,011 951 — Second Issue of Debentures – 2 nd non-preemptive right 660,000 660,000 6/1/2021 5/22/2028 CDI + 1.95% per year 1,012 668 — Second Issue of Promissory Notes – 1 st non-preemptive right 1,250,000 940,000 8/27/2021 8/27/2024 CDI + 1.47% per year 1,368 1,285 — Second Issue of Promissory Notes – 2 nd non-preemptive right 1,250,000 940,000 8/27/2021 2/27/2025 CDI + 1.53% per year 1,368 1,286 — Third Issue of Debentures – 1 st non-preemptive right 982,526 982,526 10/15/2021 10/16/2028 IPCA + 5.15% per year 1,030 1,012 — Third Issue of Debentures – 2 nd non-preemptive right 517,474 517,474 10/15/2021 10/15/2031 IPCA + 5.27% per year 1,031 533 — Borrowing Cost (77 ) (45 ) 6,446 6,599 Current liabilities 180 1,840 Non-current liabilities 6,266 4,759 |
Provision for legal proceedin_2
Provision for legal proceedings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 | 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, 2020 169 64 49 282 Additions 39 44 8 91 Reversals (106 ) (23 ) (10 ) (139 ) Payments — (21 ) (28 ) (49 ) Monetary correction 7 5 8 20 Balance as of December 31, 2021 109 69 27 205 Restricted deposits for legal proceedings (65 ) (45 ) (2 ) (112 ) Net provision of judicial deposits 44 24 25 93 ( 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 ) (15 ) (36 ) (139 ) Balance as of December 31, 2020 169 64 49 282 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 |
Schedule of guarantees | Schedule of guarantees Lawsuits Letter of guarantees Tax 630 Labor 98 Civil and others 223 Total 951 |
Schedule of judicial deposits | Schedule of judicial deposits As of December 31, Lawsuits 2021 2020 Tax 65 64 Labor 50 67 Civil and others 4 3 Total 119 134 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Minimum future payments | 19.2 Minimum future payments Lease liabilities totaled R$ 4,051 2,776 As of December 31, 2021 2020 Lease liabilities - minimum payments Less than 1 year 244 172 1 to 5 years 1,231 866 More than 5 years 2,576 1,738 Present value of lease liabilities 4,051 2,776 Future financing charges 4,042 2,478 Future lease payments 8,093 5,254 PIS and COFINS embedded in the present value of lease agreements 246 169 PIS and COFINS embedded in the gross value of lease agreements 492 319 |
Lease liability rollforward | 19.3 Lease liability rollforward Amounts As of December 31, 2018 1,180 Addition – Lease 682 Lease modification 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 Addition – Lease 1,240 Lease modification 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 Addition – Lease 919 Lease modification 628 Interest provision 302 Amortizations (468 ) Write-off due to early termination of agreement (106 ) As of December 31, 2021 4,051 Current liabilities 244 Non-current liabilities 3,807 |
Lease expense on variable rents, low-value, and short-term assets | 19.4 Lease expense on variable rents, low-value, and short-term assets As of December 31, 2021 2020 2019 (Expenses) revenues for the year: Variables (1% of sales) (6 ) (16 ) (19 ) Subleases (*) 31 22 20 (*) Refers mainly to revenue from lease agreements receivable from commercial galleries. |
Deferred revenues (Tables)
Deferred revenues (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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. Schedule of liabilities related to assets held to sale As of December 31, Notes 2021 2020 Sale and Leaseback 1.4 68 — Rental of spaces in stores (i) 233 186 Checkstand (ii) 41 29 Gift card and others 2 2 Marketing 12 11 Total 356 228 Current 356 227 Non-current — 1 (i) Rental of backlight panels. (ii) Supplier product exhibition modules, or check stands, rental of POS displays, and front-fee anticipation with credit card operators. |
Income tax and social contrib_2
Income tax and social contribution (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Reconciliation of income tax and social contribution expense | 21.1 Reconciliation of income tax and social contribution expense For the year ended December 31, 2021 2020 2019 Earnings before income tax and social contribution 1,849 1,625 1,502 Expense of income tax and social contribution (629 ) (553 ) (511 ) Adjustments to reflect the effective rate Tax fines (1 ) (1 ) (2 ) Share of profits 16 105 84 Interest on Equity 22 — — ICMS subsidy - tax incentives (i) 241 — — Interest Selic credits (ii) 81 — — Credits of monetary corrections 11 — — Tax benefits 22 29 — Other permanent differences (2 ) (16 ) 3 Effective income tax (239 ) (436 ) (426 ) Income tax and social contribution for the year Current (366 ) (704 ) (293 ) Deferred 127 268 (133 ) Income tax and social contribution expenses (239 ) (436 ) (426 ) Effective rate 12,9 % 26.8 % 28.4 % (i) The Company has tax benefits that are characterized as investment subsidies as provided for in Complementary Law n° 160/17 and Law n°. 12,973/14. At the year ended December 31, 2021, the Company excluded the IRPJ and CSLL calculation bases from the amount constituted in the tax incentive reserve (see note 22.4). (ii) The credit refers to the decision general repercussion of STF which understood that the SELIC interest arising from the repetition of undue payment, have the nature of emergent damage. Therefore, there is no incidence of IRPJ and CSLL on the interest portion. |
Key components of deferred income tax and social contribution in the balance sheets are the following: | Key components of deferred income tax and social contribution in the balance sheets are the following: As of December 31, 2021 2020 Assets Liabilities Net Assets Liabilities Net Deferred income tax and social contribution Tax losses 167 — 167 — — — Provision for legal proceedings 59 — 59 81 — 81 Exchange rate variation — (7 ) (7 ) 26 — 26 Goodwill tax amortization — (317 ) (317 ) — (315 ) (315 ) Fair value adjustment 1 — 1 — (2 ) (2 ) Property, plant and equipment, intangible and investment properties 33 — 33 37 — 37 Unrealized gains with tax credits — (28 ) (28 ) — (60 ) (60 ) Cash flow hedge — (26 ) (26 ) — (20 ) (20 ) Lease net of right of use 150 — 150 131 — 131 Modification debt effects - IFRS 9 — — — 24 — 24 Others 13 — 13 16 — 16 Gross deferred income tax and social contribution assets (liabilities) 423 (378 ) 45 315 (397 ) (82 ) Compensation (378 ) 378 — (315 ) 315 — Net deferred income tax and social contribution assets (liabilities), net 45 — 45 — (82 ) (82 ) |
The Company estimates the recovery of the deferred tax assets as of December 31, 2021 as follows: | The Company estimates the recovery of the deferred tax assets as of December 31, 2021 as follows: Years Amounts Up to 1 year 26 From 1 year to 2 years 225 From 4 years to 5 years 5 More than 5 years 167 423 |
Schedule of changes in deferred income tax and social contribution | Schedule of changes in deferred income tax and social contribution For the year ended December 31, 2021 2020 2019 At the beginning of the year (82 ) (1,191 ) (265 ) Benefits (expenses) in the year 127 372 (162 ) Corporate reorganization — 45 — Deconsolidation — 883 — Purchase partnership — — (747 ) Conversion currency adjustment — — (18 ) Exchange variation — (193 ) — Others — 2 1 At the end of the year 45 (82 ) (1,191 ) |
Shareholders_ equity (Tables)
Shareholders’ equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
The Company's shareholding structure is shown as follows: | The Company's shareholding structure is shown as follows: For the year ended December 31, 2021 2020 Number of shares Participation Number of shares with split effect Participation Controlling shareholders 557,857,105 41.42 1,341,757,835 100.00 Outstanding shares 788,817,372 58.58 - - Total 1,346,674,477 100.00 1,341,757,835 100.00 |
Management proposed dividends to be distributed, considering the anticipation of interest on equity to its shareholders, calculated as follows: | 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, 2021 2020 2019 Net income for the year 1,610 1,398 1,047 Tax incentive reserve 709 — — % Legal reserve 5 % 5 % 5 % Legal reserve for the year 5 5 52 Minimum mandatory dividends - 25% 224 349 1 Interest on capital paid intermediaries (i) 56 264 247 Minimum mandatory dividends paid in the form of interest on shareholder´s equity 168 85 1 (i) At a meeting of the Board of Directors held on September 30, 2021, the advance payment of interest on equity in the gross amount of R$63 was approved, pursuant to which the withholding tax was deducted in the amount of R$7, corresponding to the net amount of R$56. |
Profit reserve | Profit reserve For the year ended December 31, 2021 2020 Net income for the year 1,610 1,398 Tax incentive reserve 709 — Base for legal reserve 901 1,398 % Legal reserve 5 % 5 % Legal reserve for the year 5 5 |
Schedule of option plan and compensation plan | Information relating to the Company's option plan and compensation plan is summarized below: Schedule of option plan and compensation plan As of December 31, 2021 Number of shares (in thousands) Granted series Grant date 1st exercise date Strike price on the grant date (in reais) Grantees Cancelled Current B8 5/31/2021 6/01/2024 0.01 363 (29) 334 C8 5/31/2021 6/01/2024 13.39 363 (29) 334 726 (58) 668 |
Schedule of dilutive effect on options granted | The table below shows the maximum percentage of dilution to which current shareholders eventually being subject to in the event that all options granted are exercised until December 31, 2021: Schedule of dilutive effect on options granted For the year ended December 31,2021 (in thousands) Number of shares 1,346,674 Balance of effective stock options granted 668 Maximum percentage of dilution 0,05 % |
Schedule of weighted average fair value of options granted | The expectation of remaining average life of the series outstanding at December 31, 2021 is 29 months. The weighted average fair value of options granted at December 31, 2021 was R$17.21 and R$7.69 (B8 and C8, respectively). Schedule of weighted average fair value of options granted Shares Weighted average of exercise price (R$) Weighted average of remaining contractual term At December 31, 2020 - - - At December 31, 2021 Granted in the year 726 6,70 Cancelled in the year (58 ) 6,70 Outstanding at year end 668 6,70 2,42 Total to be exercised at December 31, 2021 668 6,70 2,42 |
Prior to the Company's spin-off from GPA, certain Company executives received compensation in the form of GPA stock options. | Prior to the Company's spin-off from GPA, certain Company executives received compensation in the form of GPA stock options. As of December 31, 2021 Number of shares (in thousands) Granted series Grant date 1st exercise date Strike price on the grant date (in reais) Grantees Exercised Cancelled Outstanding Current B5 5/31/2018 5/31/2021 0.01 2,970 (2,640 ) (245 ) (85 ) — C5 5/31/2018 5/31/2021 47.19 2,970 (2,410 ) (300 ) (260 ) — B6 5/31/2019 5/31/2022 0.01 2,310 (645 ) (165 ) — 1,500 C6 5/31/2019 5/31/2022 53.23 1,795 (610 ) (210 ) — 975 B7 1/31/2021 5/31/2023 0.01 3,365 (515 ) (115 ) — 2,735 C7 1/31/2021 5/31/2023 38.58 2,485 (520 ) (115 ) — 1,850 15,895 (7,340 ) (1,150 ) (345 ) 7,060 |
The movement in the number of options granted, the weighted average of the exercise price and the weighted average of the remaining term are presented in the table below: | The movement in the number of options granted, the weighted average of the exercise price and the weighted average of the remaining term are presented in the table below: Shares (in thousands) Weighted average exercise price (R$) Weighted average remaining term 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 Outstanding at year end 1,468 30.71 Total exercised on December 31, 2020 1,468 30.71 0.88 Total exercised on December 31, 2020 considering split effect (note 22.1) 7,340 6.14 0.88 At December 31, 2021 Granted in the year 6,125 16.86 — Canceled in the year (270 ) 22.36 — Exercised in the year (5,785 ) 22.76 — Expired in the year (350 ) 35.30 — Outstanding at year end 7,060 17.45 1.06 Total to be exercised at December 31, 2021 7,060 17.45 1.06 |
Net operating revenue (Tables)
Net operating revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Net Operating Revenue | |
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, and their amounts can be reliably measured. Schedule of net operating revenue For the year ended December 31, 2021 2020 2019 Gross operating revenue Goods 45,550 39,436 30,487 Services rendered and others 111 100 87 Gross operating revenue 45,661 39,536 30,574 (-) Revenue deductions Returns and sales cancellation (76 ) (73 ) (57 ) Taxes (3,687 ) (3,420 ) (2,435 ) Revenue deductions (3,763 ) (3,493 ) (2,492 ) Net operating revenue 41,898 36,043 28,082 |
Expenses by nature (Tables)
Expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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. Schedule of expenses by nature For the year ended December 31, 2021 2020 2019 Inventory cost (34,163 ) (29,641 ) (22,929 ) Personnel expenses (2,512 ) (2,135 ) (1,691 ) Outsourced services (251 ) (224 ) (198 ) Selling expenses (646 ) (511 ) (408 ) Functional expenses (664 ) (600 ) (546 ) Other expenses (439 ) (264 ) (202 ) (38,675 ) (33,375 ) (25,974 ) Cost of sales (34,753 ) (30,129 ) (23,349 ) Selling expenses (3,334 ) (2,811 ) (2,273 ) General and administrative expenses (588 ) (435 ) (352 ) (38,675 ) (33,375 ) (25,974 ) |
Other operating expenses, net (
Other operating expenses, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of other operating expenses, net | Other operating revenue and expenses correspond to the effects of significant or unusual events during the fiscal year not classified into the definition of other items of the statement of operations. Schedule of other operating expenses, net For the year ended December 31, 2021 2020 2019 Result with property, plant and equipment 12 (42 ) 5 Reversal (provision) for legal proceedings 9 (18 ) (53 ) Restructuring expenses and others (i) (74 ) (71 ) 37 Covid-19 spending on prevention — (134 ) — Indemnity assets — 168 — Total (53 ) (97 ) (11 ) (i) Refers primarily to expenses with the spin-off and acquisition of Extra Hiper stores with payments of legal fees, property appraisal and due diligence. |
Net financial result (Tables)
Net financial result (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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. Schedule of net financial result For the year ended December 31, 2021 2020 2019 Financial revenues Cash and cash equivalents interest 87 39 57 Monetary correction (assets) 93 299 175 Other financial revenues 8 5 4 Total financial revenues 188 343 236 Financial expenses Cost of debt (543 ) (474 ) (247 ) Cost and discount of receivables (51 ) (31 ) (34 ) Monetary correction (liabilities) (13 ) (11 ) (8 ) Interest on leasing liabilities (292 ) (219 ) (138 ) Other financial expenses (19 ) (51 ) (9 ) Total financial expenses (918 ) (786 ) (436 ) Total (730 ) (443 ) (200 ) |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of earnings per share | 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 year: Schedule of earnings per share For the year ended December 31, 2021 Basic number: Allocated basic earnings and not distributed 1,610 Net income allocated available to common shareholders 1,610 Basic denominator (millions of shares) Weighted average of the number of shares 1,344 Basic earnings per million shares (R$) 1.19802 For the year ended December 31, 2021 Diluted number: Allocated diluted earnings and not distributed 1,610 Net income allocated available to common shareholders 1,610 Diluted denominator (millions of shares) Weighted average of the number of shares 1,344 Stock options plan 11 Diluted weighted average of shares 1,355 Diluted earnings per million shares (R$) 1.18852 2020 Originally presented Split effect Restated Basic and diluted number: Allocated basic earnings and not distributed- Continued operation 1,189 — 1,189 Allocated basic earnings and not distributed – Discontinued operation 209 — 209 Net income allocated available to common shareholders 1,398 — 1,398 Basic and diluted denominator (millions of shares) Weighted average of the number of shares 268 1,072 1,340 Basic and diluted earnings per million shares (R$) - Continued operations 4.43657 0.88731 Basic and diluted earnings per million shares (R$) – Attributable to controlling shareholders 5.21642 1.04328 2019 Originally presented Split effect Restated Basic and diluted number: Allocated basic earnings and not distributed- Continued operation 1,076 — 1,076 Allocated basic earnings and not distributed- Discontinued operation (29 ) — (29 ) Net income allocated available to common shareholders 1,047 — 1,047 Basic and diluted denominator (millions of shares) Weighted average of the number of shares 258 1,032 1,290 Basic and diluted earnings per million shares (R$) - Continued operations 4.17054 0.83411 Basic and diluted earnings per million shares (R$) – Attributable to controlling shareholders 4.05814 0.81163 |
Assets held for sale (Tables)
Assets held for sale (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of assets held for sale | Non-current assets classified as held for sale are measured at the lower of carrying amount and market value less cost of sale. Schedule of assets held for sale For the year ended December 31,2021 Sale and leaseback (i) 147 Extra Hiper stores (ii) 403 Total 550 (i) Refers to the two properties as detailed in note 1.4. (ii) For the property, plant and equipment acquired from the 6 properties owned by GPA, the Company expects to complete the sale of these assets to a certain real estate fund (see notes 1.5 and 32.2). After the sale is completed, the Company will enter into a lease agreement with the real estate fund to operate the commercial points. |
Discontinued operation (Tables)
Discontinued operation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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: Schedule of discontinued operation 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 (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 (used) 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 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 |
Schedule of derecognition of ex
Schedule of derecognition of exito subsidiary (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | R$ 29 | R$ 3687 |
Trade receivables | 384 | |
Other accounts receivables | 220 | |
Inventories | 2,993 | |
Recoverable taxes | 570 | |
Other current assets | 130 | |
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 payable | 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 revenues | 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 proceedings | 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 |
Corporate information (Details
Corporate information (Details Narrative) | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
CorporateInformationLineItems [Line Items] | |
Renegotiated debt amount | R$ 6644000000 |
Renegotiated debt percent on gross debt | 85.00% |
Cost of debt | R$ 71000000 |
Companhia Brasileira De Distribuicao [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). |
[custom:DescriptionOfCorporateRestructuringSpinOff1] | 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$769 million (see note 12); and |
[custom:DescriptionOfExchangeTransaction] | the Company distributed to GPA the remaining shares of Éxito held by the Company (corresponding to 87.80% of the total outstanding shares of Éxito). |
Residual value assets | R$ 45000000 |
[custom:IntercompanyReceivables] | 140,000,000 |
Cash | 500,000,000 |
[custom:RelatedPartyTransactionAmount] | R$ 127 |
Significant accounting polici_3
Significant accounting policies (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest payment | R$ 406 | R$ 549 | R$ 116 |
The Company applied amendments
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: (Details) | 12 Months Ended |
Dec. 31, 2021 | |
I F R S Sixteen [Member] | |
IfrsStatementLineItems [Line Items] | |
Description | 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. |
Effective Date | January 1, 2019, with retrospective effect from January 1, 2017 |
I F R S Twenty Three [Member] | |
IfrsStatementLineItems [Line Items] | |
Description | The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty. |
Effective Date | 01/01/2019 |
I F R S Three [Member] | |
IfrsStatementLineItems [Line Items] | |
Description | 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. |
Effective Date | 01/01/2020 |
Ias One [Member] | |
IfrsStatementLineItems [Line Items] | |
Description | 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. |
Effective Date | 01/01/2020 |
I F R S Thirty Nine I F R S Seven I F R S Nine [Member] | |
IfrsStatementLineItems [Line Items] | |
Description | 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. |
Effective Date | 01/01/2020 |
[custom:DescriptionOfIFRS1] | 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. |
Conceptual Framework [Member] | |
IfrsStatementLineItems [Line Items] | |
Description | Concepts and guidelines on presentation and disclosure, measurement bases, financial report objectives and useful information. |
Effective Date | 01/01/2020 |
Schedule of new standards, amen
Schedule of new standards, amendments and interpretations issued but not yet effective (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Ammendments To I A S 1 [Member] | |
IfrsStatementLineItems [Line Items] | |
[custom:DescriptionOfIFRS] | 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. |
[custom:EffectiveDate] | 01/01/2023 |
Ammendments To I A S 8 [Member] | |
IfrsStatementLineItems [Line Items] | |
[custom:DescriptionOfIFRS] | Introduce the definition of 'accounting estimate'. The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and correction of errors. In addition, they clarify how entities use measurement and input techniques to develop accounting estimates. |
[custom:EffectiveDate] | 01/01/2023 |
Schedule of cash and cash equiv
Schedule of cash and cash equivalents (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 27, 2019 | |
IfrsStatementLineItems [Line Items] | |||||
Cash and cash equivalents | R$ 2550 | R$ 3532 | |||
Acquisition consideration | R$ 9371 | R$ 9371 | |||
UNITED STATES | Exito [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Acquisition consideration | 24 | ||||
COLOMBIA | Exito [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Acquisition consideration | 5 | ||||
Cash and bank accounts [member] | Brazil [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Cash and cash equivalents | 74 | 64 | |||
Cash and bank accounts [member] | Abroad [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Cash and cash equivalents | [1] | 25 | 29 | ||
financial investments [member] | Brazil [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Cash and cash equivalents | [2] | R$ 2451 | R$ 3439 | ||
[1] | As of December 31, 2021, the Company had funds held abroad, being R$25 in US Dollars (R$ 24 5 | ||||
[2] | As of December 31, 2021, the financial investments correspond to repurchase and resale agreements, with a weighted average interest rate of 109.64% of CDI – Interbank Deposit Certificate (Weighted average interest rate 96.96 |
Schedule of trade receivables (
Schedule of trade receivables (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Trade receivables, current | R$ 265 | R$ 182 |
Credit Card Companies [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables, current | 75 | 62 |
Credit Card Companies Related Parties [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables, current | 24 | 17 |
Sales Ticket And Others [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables, current | 118 | 77 |
Trade Receivable With Rrelated Parties [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables, current | 31 | 10 |
Trade Receivable With Suppliers Slips [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables, current | 23 | 20 |
Total Trade Receivables [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables, current | 271 | 186 |
Provision For Expected Credit Losses [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade receivables, current | R$ 6 | R$ 4 |
Set forth below the breakdown o
Set forth below the breakdown of trade receivables by their gross amount by maturity period: (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Trade account receivables gross | R$ 271 | R$ 186 |
Current [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade account receivables gross | 269 | 181 |
Not later than one month [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade account receivables gross | 1 | 2 |
Later than three months [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade account receivables gross | R$ 1 | R$ 3 |
Provision for expected credit l
Provision for expected credit losses (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Trade Receivables | |||
At the beginning of the year | R$ 4 | R$ 32 | R$ 4 |
Additions | (15) | (56) | |
Reversals | 13 | 5 | |
Write off trade receivables | 42 | ||
Discontinued operations | 43 | ||
Foreign currency translation adjustment | (6) | ||
Business combination | (28) | ||
At the end of the year | R$ 6 | R$ 4 | R$ 32 |
Trade receivables (Details Narr
Trade receivables (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
Trade Receivables | |
[custom:EffectiveLossPeriodOfPortfolios] | 24 months |
Schedule of inventories (Detail
Schedule of inventories (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Inventories, net | R$ 4380 | R$ 3739 |
Stores [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Inventories, net | 3,955 | 3,416 |
Distribution Centers [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Inventories, net | 878 | 818 |
Commercial Agreements [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Inventories, net | (416) | (444) |
Allowance For Loss On Inventory Obsolescence And Damages [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Inventories, net | R$ 37 | R$ 51 |
Allowance for loss on inventory
Allowance for loss on inventory (obsolescence and damages) (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
At the beginning of the year | R$ 51 | R$ 61 | R$ 34 |
Additions | (315) | (16) | (5) |
Reversals | 13 | 3 | |
Discontinued operations | 28 | ||
Foreign currency translation adjustment | (5) | ||
Business combinations | (22) | ||
Write-offs | 316 | ||
At the end of the year | R$ 37 | R$ 51 | R$ 61 |
Inventories (Details Narrative)
Inventories (Details Narrative) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Inventories, net | R$ 4380 | R$ 3739 |
Unrealized Commercial Agreements [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Inventories, net | R$ 416 | R$ 444 |
The estimate of future recovera
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. (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Recoverable taxes | R$ 1646 | R$ 1634 |
Recoverable taxes, current | 876 | 768 |
Recoverable taxes, non-current | 770 | 866 |
State tax credits - ICMS [member] | ||
IfrsStatementLineItems [Line Items] | ||
Recoverable taxes | 1,153 | 1,311 |
Social integration program (PIS) and contribution for social security financing (COFINS) [member] | ||
IfrsStatementLineItems [Line Items] | ||
Recoverable taxes | 370 | 141 |
Social security contribution (INSS) [member] | ||
IfrsStatementLineItems [Line Items] | ||
Recoverable taxes | 54 | 36 |
Income tax and social contribution [member] | ||
IfrsStatementLineItems [Line Items] | ||
Recoverable taxes | 61 | 144 |
Other [member] | ||
IfrsStatementLineItems [Line Items] | ||
Recoverable taxes | R$ 8 | R$ 2 |
As of December 31, 2021, the Co
As of December 31, 2021, 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 (Details) R$ in Millions | Dec. 31, 2021BRL (R$) |
IfrsStatementLineItems [Line Items] | |
Future realization of recoverable taxes | R$ 1153 |
In One Year [Member] | |
IfrsStatementLineItems [Line Items] | |
Future realization of recoverable taxes | 402 |
From One To Two Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Future realization of recoverable taxes | 263 |
From Two To Three Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Future realization of recoverable taxes | 277 |
From Three To Four Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Future realization of recoverable taxes | 84 |
From Four To Five Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Future realization of recoverable taxes | 32 |
More Than Five Years [Member] | |
IfrsStatementLineItems [Line Items] | |
Future realization of recoverable taxes | R$ 95 |
Recoverable taxes (Details Narr
Recoverable taxes (Details Narrative) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Recoverable Taxes | ||
Credits recorded in the amount | R$ 216 | R$ 175 |
Credits recorded in the amount | 41 | |
[custom:CreditsRecordedInAmount321-0] | R$ 11 | |
Credits recorded in the amount | 11 | |
Credits recorded in the amount | 53 | |
Credits recorded in the amount | 28 | |
Credits recorded in the amount | R$ 4 |
Balances and related party tran
Balances and related party transactions (Details) - BRL (R$) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
[custom:Assets123-0] | R$ 114000000 | ||
[custom:Assets12-0] | 368,000,000 | R$ 41000000 | |
[custom:Assets1-0] | 26,944,000,000 | ||
[custom:Assets1211-0] | 55,000,000 | ||
[custom:Assets57-0] | 27,000,000 | ||
[custom:Assets121-0] | 178,000,000 | ||
[custom:Assets1233-0] | 22,000,000 | ||
[custom:Assets1222-0] | 11,000,000 | ||
Purchases of goods, related party transactions | 1,000,000 | R$ 14000000 | |
Revenue from sale of goods, related party transactions | (191,000,000) | (338,000,000) | (157,000,000) |
Controlling Shareholder [member] | |||
IfrsStatementLineItems [Line Items] | |||
Purchases of goods, related party transactions | |||
Revenue from sale of goods, related party transactions | (42,000,000) | (19,000,000) | 2,000,000 |
Controlling Shareholder [member] | Suppliers [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Controlling Shareholder [member] | Other Liabilities 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 2,000,000 | ||
Controlling Shareholder 1 [Member] | Suppliers [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Controlling Shareholder 1 [Member] | Other Liabilities 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 1,000,000 | ||
Controlling Shareholder 2 [Member] | Suppliers [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Controlling Shareholder 3 [Member] | Suppliers [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Controlling Shareholder 3 [Member] | Other Liabilities 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 3,000,000 | ||
GPA [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Purchases of goods, related party transactions | 1,000,000 | ||
Revenue from sale of goods, related party transactions | (137,000,000) | (183,000,000) | (162,000,000) |
Compre Bem [member] | |||
IfrsStatementLineItems [Line Items] | |||
Purchases of goods, related party transactions | 1,000,000 | 13,000,000 | |
Revenue from sale of goods, related party transactions | (1,000,000) | 3,000,000 | (3,000,000) |
Greenyellow [member] | |||
IfrsStatementLineItems [Line Items] | |||
Purchases of goods, related party transactions | |||
Revenue from sale of goods, related party transactions | (26,000,000) | (47,000,000) | 1,000,000 |
Joint Venture [member] | |||
IfrsStatementLineItems [Line Items] | |||
Purchases of goods, related party transactions | |||
Revenue from sale of goods, related party transactions | 15,000,000 | ||
Wilkes Participacoes S A [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Purchases of goods, related party transactions | |||
Revenue from sale of goods, related party transactions | (6,000,000) | ||
Euris [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Purchases of goods, related party transactions | |||
Revenue from sale of goods, related party transactions | (1,000,000) | ||
Casino Guichard Perracho [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Purchases of goods, related party transactions | |||
Revenue from sale of goods, related party transactions | (35,000,000) | (19,000,000) | 2,000,000 |
Puntos Colombia [member] | |||
IfrsStatementLineItems [Line Items] | |||
Purchases of goods, related party transactions | |||
Revenue from sale of goods, related party transactions | (114,000,000) | (13,000,000) | |
Tuya [member] | |||
IfrsStatementLineItems [Line Items] | |||
Purchases of goods, related party transactions | |||
Revenue from sale of goods, related party transactions | 24,000,000 | 21,000,000 | |
Other related parties [member] | |||
IfrsStatementLineItems [Line Items] | |||
Purchases of goods, related party transactions | |||
Revenue from sale of goods, related party transactions | (2,000,000) | (3,000,000) | |
Total Other Related Parties 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Purchases of goods, related party transactions | 1,000,000 | 14,000,000 | |
Revenue from sale of goods, related party transactions | (149,000,000) | (319,000,000) | R$ 159000000 |
Clients [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 42,000,000 | 11,000,000 | |
[custom:Assets12-0] | 17,000,000 | ||
Clients [member] | Controlling Shareholder [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Clients [member] | Controlling Shareholder 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Clients [member] | Controlling Shareholder 2 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 13,000,000 | 10,000,000 | |
Clients [member] | Controlling Shareholder 3 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 13,000,000 | 10,000,000 | |
Clients [member] | GPA [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 18,000,000 | ||
Clients [member] | Compre Bem [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Clients [member] | Greenyellow [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Clients [member] | Joint Venture [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 24,000,000 | 11,000,000 | |
[custom:Assets111-0] | 17,000,000 | ||
Other assets [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 365,000,000 | 178,000,000 | |
[custom:Assets1-0] | 114,000,000 | 41,000,000 | |
Other assets [member] | Controlling Shareholder [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Other assets [member] | Controlling Shareholder 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Other assets [member] | Controlling Shareholder 2 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Other assets [member] | Controlling Shareholder 3 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Other assets [member] | GPA [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 100,000,000 | 168,000,000 | |
Other assets [member] | Compre Bem [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Other assets [member] | Greenyellow [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Other assets [member] | Financeira Itau CBD S.A. Credito, Financiamento e Investimento ("FIC") [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 14,000,000 | 10,000,000 | |
Suppliers [Member] | GPA [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 8,000,000 | ||
Suppliers [Member] | Compre Bem [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Suppliers [Member] | Greenyellow [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Suppliers [Member] | Joint Venture [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 22,000,000 | ||
[custom:Assets123-0] | 14,000,000 | ||
Other Liabilities 1 [Member] | GPA [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | 365,000,000 | 41,000,000 | |
Other Liabilities 1 [Member] | Compre Bem [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Other Liabilities 1 [Member] | Greenyellow [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets | |||
Other Liabilities 1 [Member] | Financeira Itau CBD S.A. Credito, Financiamento e Investimento ("FIC") [member] | |||
IfrsStatementLineItems [Line Items] | |||
Assets |
Expenses related to the statuto
Expenses related to the statutory executive board compensation recorded in the Company’s statement of operations is as follows (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Base salary | R$ 46105 | R$ 12963 | R$ 15360 |
Variable compensation | 14,485 | 7,027 | 8,421 |
Stock options plan | 14,743 | 4,877 | 5,684 |
Total | 75,333 | 24,867 | 29,465 |
Key management personnel of entity or parent [member] | |||
IfrsStatementLineItems [Line Items] | |||
Base salary | 25,533 | ||
Variable compensation | |||
Stock options plan | 7,111 | ||
Total | 32,644 | ||
Key Management Personnel Of Entity Or Parent 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Base salary | 20,241 | 12,963 | 15,360 |
Variable compensation | 14,485 | 7,027 | 8,421 |
Stock options plan | 7,632 | 4,877 | 5,684 |
Total | 42,358 | 24,867 | 29,465 |
Key Management Personnel Of Entity Or Parent 2 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Base salary | 331 | ||
Variable compensation | |||
Stock options plan | |||
Total | R$ 331 |
Schedule of company joint ventu
Schedule of company joint venture (Details) - Joint ventures [member] | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [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% | 50.00% |
The Company initially accounted
The Company initially accounted for the investment in Bellamar at its fair value of R$769 which included the investment in FIC also at fair value. The fair value of investment in FIC was determined by an independent appraisal (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investment In Joint Venture | |||
As of December 31, 2019 | R$ 769 | R$ 320 | |
Equity accounting | 27 | ||
Capital Increase | 51 | ||
Equity on other comprehensive income | 82 | ||
Discontinued operations | (480) | ||
Corporate restructuring | 769 | ||
[custom:InvestmentAtFairValue-2] | 789 | 769 | R$ 320 |
Share of profit of associates | 47 | ||
Dividends received | (11) | ||
Dividends receivable | R$ 16 |
Schedule of Identifiable Assets
Schedule of Identifiable Assets and Liabilities (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and cash equivalents | R$ 29 | R$ 3687 |
Marketable securities | 22 | |
Credit operations | 6,213 | |
Other credits | 98 | |
Other receivables | 3 | |
Other credits, non-current | 265 | |
Property, plant and equipment and intangible assets | 2,170 | |
Investments | 47 | |
Liabilities | ||
Deposits | (790) | |
Interfinancial relations | (2,457) | |
Other liabilities | (2,256) | |
Total fair value of identifiable net assets | 3,344 | |
Fair value of investment acquired | 599 | |
Acquisition price | 769 | |
Fair value of investment acquired | (599) | |
Goodwill | R$ 170 |
The cash consideration has been
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: (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Nov. 27, 2019 |
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 |
The fair value of identifiable
The fair value of identifiable assets acquired and liabilities assumed from Exito, on the acquisition date, are as follows: (Details) R$ in Millions | Nov. 27, 2019BRL (R$) |
Liabilities | |
Net assets | R$ 9206 |
Exito Group [member] | |
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 |
Assets recognised as of acquisition date | 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 |
LiabilitiesRecognisedAsOfAcquisitionDate | 14,699 |
Net assets | 11,764 |
(-) Attribute to non-controlling interest | (2,558) |
Net assets | R$ 9206 |
Schedule of goodwiill identifie
Schedule of goodwiill identified (Details) - BRL (R$) R$ in Millions | Dec. 31, 2019 | Nov. 27, 2019 |
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 Éxito Group | R$ 9371 | 9,371 |
Goodwill resulting from acquisition of Éxito Group | R$ 165 |
Schedule of property and equipm
Schedule of property and equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings [member] | |
IfrsStatementLineItems [Line Items] | |
Average annual depreciation rate in % | 2.78% |
Leasehold improvements [member] | |
IfrsStatementLineItems [Line Items] | |
Average annual depreciation rate in % | 4.28% |
Machinery and equipment [member] | |
IfrsStatementLineItems [Line Items] | |
Average annual depreciation rate in % | 12.05% |
Facilities [member] | |
IfrsStatementLineItems [Line Items] | |
Average annual depreciation rate in % | 6.94% |
Furniture and appliances [member] | |
IfrsStatementLineItems [Line Items] | |
Average annual depreciation rate in % | 11.36% |
Schedule of property and equi_2
Schedule of property and equipment rollforward (Details) - BRL (R$) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Property and equipment, beginning | R$ 7476000000 | R$ 14652000000 | R$ 4655000000 |
Additions | 3,334,000,000 | 2,788,000,000 | 1,997,000,000 |
Write-offs | (103,000,000) | (833,000,000) | (362,000,000) |
Depreciation | (666,000,000) | (1,262,000,000) | (457,000,000) |
Transfers and others | (349,000,000) | (91,000,000) | 44,000,000 |
Property and equipment, ending | 10,320,000,000 | 7,476,000,000 | 14,652,000,000 |
Lease modification | 628,000,000 | 621,000,000 | 138,000,000 |
Currency translation adjustment | 1,970,000,000 | 140,000,000 | |
Corporate restructuring | 135,000,000 | ||
Discontinued operation | (10,504,000,000) | ||
Additions from business acquired | 8,497,000,000 | ||
[custom:PropertyPlantAndEquipment1-1] | 10,504,000,000 | ||
ConversionAdjustmentToReportingCurrency1 | 24,000,000 | ||
[custom:PropertyPlantAndEquipment1-2] | 10,504,000,000 | ||
Lease [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, beginning | 2,429,000,000 | 3,495,000,000 | 1,060,000,000 |
Additions | 901,000,000 | 1,240,000,000 | 685,000,000 |
Write-offs | (92,000,000) | (589,000,000) | (28,000,000) |
Depreciation | (249,000,000) | (516,000,000) | (145,000,000) |
Transfers and others | 3,000,000 | 5,000,000 | (4,000,000) |
Property and equipment, ending | 3,620,000,000 | 2,429,000,000 | 3,495,000,000 |
Lease modification | 628,000,000 | 621,000,000 | 138,000,000 |
Currency translation adjustment | 412,000,000 | 34,000,000 | |
Corporate restructuring | (4,000,000) | ||
Discontinued operation | (2,235,000,000) | ||
Additions from business acquired | 1,755,000,000 | ||
Land [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, beginning | 481,000,000 | 2,766,000,000 | 348,000,000 |
Additions | 207,000,000 | 61,000,000 | 76,000,000 |
Write-offs | (2,000,000) | (32,000,000) | |
Depreciation | |||
Transfers and others | (116,000,000) | (70,000,000) | 25,000,000 |
Property and equipment, ending | 570,000,000 | 481,000,000 | 2,766,000,000 |
Currency translation adjustment | 541,000,000 | 40,000,000 | |
Corporate restructuring | 146,000,000 | ||
Discontinued operation | (2,931,000,000) | ||
Additions from business acquired | 2,277,000,000 | ||
[custom:AdditionsOtherThanThroughBusinessCombinationsPropertyPlantAndEquipment12] | 1,312,000,000 | ||
Land [member] | Lease [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, beginning | 3,000,000 | ||
Property and equipment, ending | 3,000,000 | ||
Discontinued operation | (3,000,000) | ||
Additions from business acquired | 3,000,000 | ||
Buildings [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, beginning | 609,000,000 | 3,829,000,000 | 583,000,000 |
Additions | 258,000,000 | 78,000,000 | 231,000,000 |
Write-offs | (4,000,000) | (85,000,000) | |
Depreciation | (15,000,000) | (121,000,000) | (25,000,000) |
Transfers and others | (192,000,000) | (139,000,000) | 56,000,000 |
Property and equipment, ending | 656,000,000 | 609,000,000 | 3,829,000,000 |
Currency translation adjustment | 704,000,000 | 49,000,000 | |
Discontinued operation | (3,657,000,000) | ||
Additions from business acquired | 2,935,000,000 | ||
Buildings [member] | Lease [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, beginning | 2,423,000,000 | 3,449,000,000 | 1,053,000,000 |
Additions | 885,000,000 | 1,217,000,000 | 670,000,000 |
Write-offs | (92,000,000) | (588,000,000) | (28,000,000) |
Depreciation | (244,000,000) | (501,000,000) | (140,000,000) |
Transfers and others | 4,000,000 | 2,000,000 | (3,000,000) |
Property and equipment, ending | 3,604,000,000 | 2,423,000,000 | 3,449,000,000 |
Lease modification | 628,000,000 | 628,000,000 | 138,000,000 |
Currency translation adjustment | 403,000,000 | 32,000,000 | |
Corporate restructuring | (4,000,000) | ||
Discontinued operation | (2,183,000,000) | ||
Additions from business acquired | 1,727,000,000 | ||
Leasehold improvements [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, beginning | 2,598,000,000 | 2,207,000,000 | 1,733,000,000 |
Additions | 1,161,000,000 | 694,000,000 | 553,000,000 |
Write-offs | (1,000,000) | (71,000,000) | (302,000,000) |
Depreciation | (182,000,000) | (189,000,000) | (123,000,000) |
Transfers and others | 20,000,000 | 293,000,000 | 12,000,000 |
Property and equipment, ending | 3,596,000,000 | 2,598,000,000 | 2,207,000,000 |
Currency translation adjustment | 70,000,000 | ||
Corporate restructuring | (4,000,000) | ||
Discontinued operation | (402,000,000) | ||
Additions from business acquired | 334,000,000 | ||
Equipment 1 [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, beginning | 635,000,000 | 1,242,000,000 | 416,000,000 |
Additions | 307,000,000 | 227,000,000 | 232,000,000 |
Write-offs | (1,000,000) | (28,000,000) | (20,000,000) |
Depreciation | (128,000,000) | (260,000,000) | (93,000,000) |
Transfers and others | 15,000,000 | 84,000,000 | 25,000,000 |
Property and equipment, ending | 828,000,000 | 635,000,000 | 1,242,000,000 |
Currency translation adjustment | 151,000,000 | 10,000,000 | |
Corporate restructuring | (1,000,000) | ||
Discontinued operation | (780,000,000) | ||
Additions from business acquired | 672,000,000 | ||
Equipment 1 [Member] | Lease [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, beginning | 6,000,000 | 43,000,000 | 7,000,000 |
Additions | 16,000,000 | 23,000,000 | 15,000,000 |
Write-offs | (1,000,000) | ||
Depreciation | (5,000,000) | (15,000,000) | (5,000,000) |
Transfers and others | (1,000,000) | 3,000,000 | (1,000,000) |
Property and equipment, ending | 16,000,000 | 6,000,000 | 43,000,000 |
Lease modification | (7,000,000) | ||
Currency translation adjustment | 9,000,000 | 2,000,000 | |
Discontinued operation | (49,000,000) | ||
Additions from business acquired | 25,000,000 | ||
Facilities [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, beginning | 269,000,000 | 330,000,000 | 221,000,000 |
Additions | 118,000,000 | 58,000,000 | 66,000,000 |
Write-offs | (1,000,000) | (6,000,000) | (1,000,000) |
Depreciation | (25,000,000) | (32,000,000) | (20,000,000) |
Transfers and others | 1,000,000 | (16,000,000) | 2,000,000 |
Property and equipment, ending | 362,000,000 | 269,000,000 | 330,000,000 |
Currency translation adjustment | 8,000,000 | (2,000,000) | |
Discontinued operation | (73,000,000) | ||
Additions from business acquired | 64,000,000 | ||
Fixtures and fittings [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, beginning | 340,000,000 | 601,000,000 | 226,000,000 |
Additions | 110,000,000 | 78,000,000 | 81,000,000 |
Write-offs | (2,000,000) | (15,000,000) | (8,000,000) |
Depreciation | (53,000,000) | (128,000,000) | (40,000,000) |
Transfers and others | 21,000,000 | 58,000,000 | 36,000,000 |
Property and equipment, ending | 416,000,000 | 340,000,000 | 601,000,000 |
Currency translation adjustment | 66,000,000 | 6,000,000 | |
Discontinued operation | (320,000,000) | ||
Additions from business acquired | 300,000,000 | ||
Construction in progress [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, beginning | 78,000,000 | 140,000,000 | 39,000,000 |
Additions | 266,000,000 | 344,000,000 | 69,000,000 |
Write-offs | (7,000,000) | (3,000,000) | |
Transfers and others | (109,000,000) | (318,000,000) | (122,000,000) |
Property and equipment, ending | 235,000,000 | 78,000,000 | 140,000,000 |
Currency translation adjustment | 18,000,000 | 3,000,000 | |
Discontinued operation | (99,000,000) | ||
Additions from business acquired | 154,000,000 | ||
Other [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, beginning | 37,000,000 | 42,000,000 | 29,000,000 |
Additions | 6,000,000 | 8,000,000 | 4,000,000 |
Depreciation | (14,000,000) | (16,000,000) | (11,000,000) |
Transfers and others | 8,000,000 | 12,000,000 | 14,000,000 |
Property and equipment, ending | 37,000,000 | 37,000,000 | 42,000,000 |
Corporate restructuring | (2,000,000) | ||
Discontinued operation | (7,000,000) | ||
Additions from business acquired | 6,000,000 | ||
Property, plant and equipment not subject to operating leases [member] | |||
IfrsStatementLineItems [Line Items] | |||
Property and equipment, beginning | 5,047,000,000 | 11,157,000,000 | |
Additions | 2,433,000,000 | 1,548,000,000 | |
Write-offs | (11,000,000) | (244,000,000) | |
Depreciation | (417,000,000) | (746,000,000) | |
Transfers and others | (352,000,000) | (96,000,000) | |
Property and equipment, ending | R$ 6700000000 | 5,047,000,000 | 11,157,000,000 |
Currency translation adjustment | 1,558,000,000 | ||
Corporate restructuring | 139,000,000 | ||
Discontinued operation | (8,269,000,000) | ||
Additions from business acquired | 6,742,000,000 | ||
[custom:PropertyPlantAndEquipment1-1] | R$ 11157000000 | 3,595,000,000 | |
[custom:WritedownsReversalsOfPropertyPlantAndEquipment1] | (334,000,000) | ||
[custom:DepreciationPropertyPlantAndEquipment1] | (312,000,000) | ||
[custom:IncreaseDecreaseThroughTransfersPropertyPlantAndEquipment1] | 48,000,000 | ||
ConversionAdjustmentToReportingCurrency1 | 106,000,000 | ||
[custom:PropertyPlantAndEquipment1-2] | R$ 11157000000 |
Schedule of property plant brea
Schedule of property plant breakdown (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, cost | R$ 13181 | R$ 9747 | ||
Property and equipment, net | 10,320 | 7,476 | R$ 14652 | R$ 4655 |
Property and equipment, accumulated depreciation | (2,861) | (2,271) | ||
Lease [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, cost | 4,627 | 3,252 | ||
Property and equipment, net | 3,620 | 2,429 | 3,495 | 1,060 |
Property and equipment, accumulated depreciation | (1,007) | (823) | ||
Land [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, cost | 570 | 481 | ||
Property and equipment, net | 570 | 481 | 2,766 | 348 |
Land [member] | Lease [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, net | 3 | |||
Buildings [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, cost | 767 | 704 | ||
Property and equipment, net | 656 | 609 | 3,829 | 583 |
Property and equipment, accumulated depreciation | (111) | (95) | ||
Buildings [member] | Lease [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, cost | 4,566 | 3,205 | ||
Property and equipment, net | 3,604 | 2,423 | 3,449 | 1,053 |
Property and equipment, accumulated depreciation | (962) | (782) | ||
Leasehold improvements [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, cost | 4,387 | 3,203 | ||
Property and equipment, net | 3,596 | 2,598 | 2,207 | 1,733 |
Property and equipment, accumulated depreciation | (791) | (605) | ||
Equipment 1 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, cost | 1,373 | 1,061 | ||
Property and equipment, net | 828 | 635 | 1,242 | 416 |
Property and equipment, accumulated depreciation | (545) | (426) | ||
Equipment 1 [Member] | Lease [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, net | 16 | 6 | 43 | 7 |
Facilities [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, cost | 472 | 354 | ||
Property and equipment, net | 362 | 269 | 330 | 221 |
Property and equipment, accumulated depreciation | (110) | (85) | ||
Fixtures and fittings [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, cost | 635 | 513 | ||
Property and equipment, net | 416 | 340 | 601 | 226 |
Property and equipment, accumulated depreciation | (219) | (173) | ||
Construction in progress [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, cost | 235 | 78 | ||
Property and equipment, net | 235 | 78 | 140 | 39 |
Other [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, cost | 115 | 101 | ||
Property and equipment, net | 37 | 37 | 42 | R$ 29 |
Property and equipment, accumulated depreciation | (78) | (64) | ||
Property, plant and equipment not subject to operating leases [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, cost | 8,554 | 6,495 | ||
Property and equipment, net | 6,700 | 5,047 | R$ 11157 | |
Property and equipment, accumulated depreciation | (1,854) | (1,448) | ||
Equipment | Lease [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Property and equipment, cost | 61 | 47 | ||
Property and equipment, net | 16 | 6 | ||
Property and equipment, accumulated depreciation | R$ 45 | R$ 41 |
Business combination (Details N
Business combination (Details Narrative) - Exito Group [member] - BRL (R$) R$ / shares in Units, R$ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Nov. 27, 2019 | Sep. 12, 2019 | Jul. 23, 2019 | Jun. 26, 2019 | |
IfrsStatementLineItems [Line Items] | |||||
Percentage of equity interest | 9657.00% | 10000.00% | 5530.00% | ||
Share price | R$ 21.68 | ||||
Indirect equity interest per shares | R$ 113 | ||||
Net sales revenue | R$ 2150 | ||||
Net income | 71 | ||||
Acquisition related cost | 124 | ||||
Colombia, Pesos | |||||
IfrsStatementLineItems [Line Items] | |||||
Cash payment | R$ 7780 | ||||
United States of America, Dollars | |||||
IfrsStatementLineItems [Line Items] | |||||
Net of debt | R$ 1161 |
Schedule of additions to proper
Schedule of additions to property and equipment for cash flow presentation (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Additions | R$ 3334 | R$ 2788 | R$ 1997 |
Leases | (901) | (1,241) | (685) |
Capitalized interest | (38) | (12) | (11) |
Financing of property, plant and equipment – Additions | 2,284 | 1,437 | 1,217 |
Financing of property, plant and equipment – Payments | 2,120 | 1,464 | 1,273 |
Total | R$ 2231 | R$ 1562 | R$ 1357 |
Property, plant and equipment_2
Property, plant and equipment (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Capitalized borrowing costs | R$ 38 | R$ 12 | R$ 11 |
Borrowing costs eligible for capitalization rate | 11770.00% | 150.67% | 136.11% |
Cost of goods and services sold | R$ 49 | R$ 34 | R$ 29 |
Schedule of intangible assets (
Schedule of intangible assets (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||||
IfrsStatementLineItems [Line Items] | ||||||
Intangible assets, beginning | R$ 1037 | R$ 4288 | R$ 1013 | |||
Additions | 872 | 78 | 52 | |||
Amortization | (21) | (48) | (23) | |||
Write off | (1) | (1) | ||||
Transfers | 1 | |||||
Intangible assets, ending | 1,887 | 1,037 | 4,288 | |||
[custom:IntangibleAssetsAndGoodwill2-1] | 1,037 | |||||
[custom:AdditionsOtherThanThroughBusinessCombinationsIntangibleAssetsOtherThanGoodwil2l] | 854 | |||||
[custom:AmortisationIntangibleAssetsOtherThanGoodwill2] | (21) | |||||
[custom:DisposalsAndRetirementsIntangibleAssetsOtherThanGoodwill2] | (1) | |||||
[custom:IncreaseDecreaseThroughTransfersIntangibleAssetsAndGoodwill2] | 1 | |||||
[custom:IntangibleAssetsAndGoodwill2-2] | 1,868 | 1,037 | ||||
[custom:IntangibleAssetsAndGoodwill1-1] | 0 | |||||
[custom:AdditionsOtherThanThroughBusinessCombinationsIntangibleAssetsOtherThanGoodwill1] | 18 | |||||
[custom:AmortisationIntangibleAssetsOtherThanGoodwill1] | 0 | |||||
[custom:DisposalsAndRetirementsIntangibleAssetsOtherThanGoodwill1] | 0 | |||||
[custom:IncreaseDecreaseThroughTransfersIntangibleAssetsAndGoodwill1] | 1 | |||||
[custom:IntangibleAssetsAndGoodwill1-2] | 19 | 0 | ||||
Conversion adjustment to reporting currency | 770 | 71 | ||||
Discontinued operation | (4,051) | |||||
Acquisitions through business combinations, intangible assets other than goodwill | 3,175 | |||||
Historical cost | 2,231 | 2,233 | ||||
Accumulated amortization | (344) | (1,196) | ||||
Net amount | 1,887 | 1,037 | ||||
[custom:HistoricalCost1-0] | 2,203 | 2,233 | ||||
[custom:AccumulatedAmortization1-0] | (335) | (1,196) | ||||
[custom:NetAmount1-0] | 1,868 | 1,037 | ||||
Goodwill [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Intangible assets, beginning | 618 | 787 | 618 | |||
Additions | 0 | |||||
Amortization | 0 | |||||
Write off | 0 | |||||
Transfers | 0 | 1 | ||||
Intangible assets, ending | 618 | 618 | 787 | |||
Conversion adjustment to reporting currency | 38 | |||||
Discontinued operation | (208) | |||||
Acquisitions through business combinations, intangible assets other than goodwill | 165 | |||||
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 4 | |||||
Historical cost | 871 | 1,741 | ||||
Accumulated amortization | (253) | (1,123) | ||||
Net amount | 618 | 618 | ||||
Computer software [member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Intangible assets, beginning | 70 | 134 | 60 | |||
Additions | 21 | 72 | 28 | |||
Amortization | (14) | [1] | (40) | (15) | ||
Write off | (1) | [1] | (1) | |||
Transfers | [1] | (1) | ||||
Intangible assets, ending | 75 | [1] | 70 | 134 | ||
Conversion adjustment to reporting currency | 20 | |||||
Discontinued operation | (115) | |||||
Acquisitions through business combinations, intangible assets other than goodwill | 60 | |||||
Increase (decrease) through net exchange differences, intangible assets other than goodwill | 1 | |||||
Historical cost | 133 | 126 | ||||
Accumulated amortization | (58) | (56) | ||||
Net amount | 75 | 70 | ||||
Commercial Rightsl [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Intangible assets, beginning | 310 | [1] | 313 | 296 | ||
Additions | 833 | [1] | 6 | 24 | ||
Amortization | (7) | [1] | (8) | (8) | ||
Write off | [1] | 0 | ||||
Transfers | [1] | 0 | ||||
Intangible assets, ending | 1,136 | [1] | 310 | [1] | 313 | |
Conversion adjustment to reporting currency | (1) | |||||
Acquisitions through business combinations, intangible assets other than goodwill | 1 | |||||
Historical cost | 1,160 | 327 | ||||
Accumulated amortization | (24) | (17) | ||||
Net amount | 1,136 | 310 | ||||
Tradename [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Intangible assets, beginning | 39 | 3,054 | 39 | |||
Additions | ||||||
Amortization | 0 | |||||
Write off | 0 | |||||
Transfers | 0 | |||||
Intangible assets, ending | 39 | 39 | 3,054 | |||
Conversion adjustment to reporting currency | 713 | |||||
Discontinued operation | (3,728) | |||||
Acquisitions through business combinations, intangible assets other than goodwill | 2,949 | |||||
Increase (decrease) through net exchange differences, intangible assets other than goodwill | R$ 66 | |||||
Historical cost | 39 | 39 | ||||
Accumulated amortization | 0 | 0 | ||||
Net amount | 39 | 39 | ||||
Assets And Rights [Member] | ||||||
IfrsStatementLineItems [Line Items] | ||||||
Intangible assets, beginning | 0 | |||||
Additions | 18 | |||||
Amortization | 0 | |||||
Write off | 0 | |||||
Transfers | 1 | |||||
Intangible assets, ending | 19 | R$ 0 | ||||
Historical cost | 28 | |||||
Accumulated amortization | (9) | |||||
Net amount | R$ 19 | |||||
[1] | Includes commercial rights related to 20 commercial points sold by GPA to the Company as a result of the Transaction for an amount of R$798 (see note 1.5). |
Schedule of additions to intang
Schedule of additions to intangible assets (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Additions | R$ 872 | R$ 25 |
Other | (18) | |
Total | R$ 854 | R$ 25 |
Schedule of trade payables, net
Schedule of trade payables, net (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Trade payables | R$ 5942 | R$ 5058 |
Product suppliers [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade payables | 6,422 | 5,450 |
Service suppliers [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade payables | 74 | 85 |
Service Suppliers Related Parties [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade payables | 22 | 11 |
Bonuses from suppliers [member] | ||
IfrsStatementLineItems [Line Items] | ||
Trade payables | R$ 576 | R$ 488 |
Schedule of financial instrumen
Schedule of financial instruments and their carrying amounts (Details) - BRL (R$) | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Net exposure | R$ 15571000000 | R$ 11746000000 |
Financial assets - Amortized cost [member] | Related Parties - Assets [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets | 114,000,000 | 178,000,000 |
Financial assets - Amortized cost [member] | Accounts receivable and other accounts receivable [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets | 169,000,000 | 117,000,000 |
Fair value through income [member] | Borrowings and financing, including derivatives [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial liabilities | (341,000,000) | (335,000,000) |
Fair value through income [member] | Financial instruments - Fair value hedge - short position [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial liabilities | (36,000,000) | |
Fair value through income [member] | Cash and cash equivalents [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets | 2,550,000,000 | 3,532,000,000 |
Fair value through income [member] | Financial instruments - fair value hedge- long position [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets | 32,000,000 | 68,000,000 |
Fair value through other comprehensive income [member] | Accounts receivable with credit card companies and sales tickets [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial assets | 155,000,000 | 99,000,000 |
Financial liabilities - Other financial liabilities - amortized cost [member] | Related Parties - Liabilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial liabilities | (368,000,000) | (41,000,000) |
Financial liabilities - Other financial liabilities - amortized cost [member] | Trade Payables [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial liabilities | (5,942,000,000) | (5,058,000,000) |
Financial liabilities - Other financial liabilities - amortized cost [member] | Financing through acquisition of assets [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial liabilities | (197,000,000) | (34,000,000) |
Financial liabilities - Other financial liabilities - amortized cost [member] | Borrowings and Financing [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial liabilities | (1,210,000,000) | (897,000,000) |
Financial liabilities - Other financial liabilities - amortized cost [member] | Debentures [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial liabilities | (6,446,000,000) | (6,599,000,000) |
Financial liabilities - Other financial liabilities - amortized cost [member] | Lease liabilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
Financial liabilities | R$ 4051000000 | R$ 2776000000 |
Schedule of capital structure (
Schedule of capital structure (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Borrowings, financing and debentures | R$ 8033 | R$ 7831 | ||
(-) Cash and cash equivalents | 2,550 | 3,532 | ||
(-) Derivative financial instruments | 32 | 68 | ||
Net debt | (5,451) | (4,231) | ||
Shareholders´ equity | R$ 2766 | R$ 1347 | R$ 9701 | R$ 4092 |
% Net debt over shareholders´ equity | 19700.00% | 31400.00% |
Schedule of aging profile of fi
Schedule of aging profile of financial liabilities (Details) - Liquidity risk [member] - BRL (R$) | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | R$ 26628000000 | |
Borrowings and Financing [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 1,885,000,000 | |
First Issue of Promissory Notes - 1st series [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 10,777,000,000 | |
Derivative Financial Instruments [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | (69,000,000) | |
Lease liabilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 8,093,000,000 | |
Trade Payables [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 5,942,000,000 | |
Not later than one month [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 7,425,000,000 | |
Not later than one month [member] | Borrowings and Financing [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 529,000,000 | |
Not later than one month [member] | First Issue of Promissory Notes - 1st series [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 399,000,000 | |
Not later than one month [member] | Derivative Financial Instruments [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | (73,000,000) | |
Not later than one month [member] | Lease liabilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | R$ 628000000 | |
Not later than one month [member] | Trade Payables [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 5,942,000,000 | |
Later than one year and not later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 11,274,000,000 | |
Later than one year and not later than five years [member] | Borrowings and Financing [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 1,347,000,000 | |
Later than one year and not later than five years [member] | First Issue of Promissory Notes - 1st series [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 7,343,000,000 | |
Later than one year and not later than five years [member] | Derivative Financial Instruments [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | (284,000,000) | |
Later than one year and not later than five years [member] | Lease liabilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 2,868,000,000 | |
Later than one year and not later than five years [member] | Trade Payables [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | ||
Later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 7,929,000,000 | |
Later than five years [member] | Borrowings and Financing [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 9,000,000 | |
Later than five years [member] | First Issue of Promissory Notes - 1st series [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 3,035,000,000 | |
Later than five years [member] | Derivative Financial Instruments [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 288,000,000 | |
Later than five years [member] | Lease liabilities [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow | 4,597,000,000 | |
Later than five years [member] | Trade Payables [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total financial liabilities under undiscounted cash flow |
Schedule of hedge position (Det
Schedule of hedge position (Details) - BRL (R$) | Feb. 10, 2022 | Jan. 07, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||||
Notional value | R$ 750 | R$ 2000 | ||
Swap with hedge accounting [member] | Cash flow hedges [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Notional value | R$ 1888000000 | R$ 309000000 | ||
Fair value | 1,869,000,000 | 335,000,000 | ||
Long position [member] | Fixed rate [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Notional value | 106,000,000 | 106,000,000 | ||
Fair value | 60,000,000 | 72,000,000 | ||
Long position [member] | USD + Fixed [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Notional value | 282,000,000 | 203,000,000 | ||
Fair value | 281,000,000 | 263,000,000 | ||
Long position [member] | Hedge C R I [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Notional value | 1,500,000,000 | |||
Fair value | 1,528,000,000 | |||
Short position [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Notional value | (1,888,000,000) | (309,000,000) | ||
Fair value | (1,873,000,000) | (267,000,000) | ||
Net hedge position [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Notional value | ||||
Fair value | R$ 4000000 | R$ 68000000 |
Schedule of net exposure of der
Schedule of net exposure of derivative financial instruments (Details) R$ in Millions | 12 Months Ended |
Dec. 31, 2021BRL (R$) | |
Borrowings and Financing [member] | |
IfrsStatementLineItems [Line Items] | |
Financial risk (CDI variation) | CDI + 1.94% per year |
Carrying amount | R$ 1551 |
Financial Baseline | (1,499) |
Financial projected scenario 1 | 155 |
Financial projected scenario 2 | 118 |
Financial projected scenario 3 | R$ 82 |
Fixed rate swap contract (short position) [member] | |
IfrsStatementLineItems [Line Items] | |
Financial risk (CDI variation) | TR + 9.80% per year |
Carrying amount | R$ 32 |
Financial Baseline | (58) |
Financial projected scenario 1 | (53) |
Financial projected scenario 2 | (64) |
Financial projected scenario 3 | R$ 69 |
Foreign exchange swap contract (short position) [member] | |
IfrsStatementLineItems [Line Items] | |
Financial risk (CDI variation) | CDI + 1.25% per year |
Carrying amount | R$ 36 |
Financial Baseline | (291) |
Financial projected scenario 1 | (58) |
Financial projected scenario 2 | (49) |
Financial projected scenario 3 | R$ 63 |
Debentures [member] | |
IfrsStatementLineItems [Line Items] | |
Financial risk (CDI variation) | CDI + 1.48% per year |
Carrying amount | R$ 6446 |
Financial Baseline | (6,523) |
Financial projected scenario 1 | (1,163) |
Financial projected scenario 2 | (1,378) |
Financial projected scenario 3 | (1,593) |
Total net effect (loss) [member] | |
IfrsStatementLineItems [Line Items] | |
Carrying amount | 8,001 |
Financial Baseline | (8,371) |
Financial projected scenario 1 | (1,119) |
Financial projected scenario 2 | (1,373) |
Financial projected scenario 3 | R$ 1643 |
Schedule of fair value hierarch
Schedule of fair value hierarchy of financial assets and liabilities (Details) - BRL (R$) | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Carrying amount | R$ 7846000000 | R$ 7664000000 |
Fair value | (7,562,000,000) | (6,697,000,000) |
Trade receivables with credit cards [member] | Level 2 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Carrying amount | 155,000,000 | 99,000,000 |
Fair value | 155,000,000 | 99,000,000 |
Swaps of annual rates between currencies [member] | Level 2 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Carrying amount | (11,000,000) | 57,000,000 |
Fair value | (11,000,000) | 57,000,000 |
Interest rate swaps [member] | Level 2 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Carrying amount | 4,000,000 | 11,000,000 |
Fair value | 4,000,000 | 11,000,000 |
Interest Rate Swap 2 [Member] | Level 2 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Carrying amount | 3,000,000 | |
Fair value | 3,000,000 | |
Loans and financing (fair value) [member] | Level 2 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Carrying amount | (341,000,000) | (335,000,000) |
Fair value | (341,000,000) | (335,000,000) |
Loans and financing (amortized cost) [member] | Level 2 of fair value hierarchy [member] | ||
IfrsStatementLineItems [Line Items] | ||
Carrying amount | (7,656,000,000) | (7,496,000,000) |
Fair value | R$ 7372000000 | R$ 6529000000 |
Schedule of consolidated positi
Schedule of consolidated position of outstanding derivative transactions (Details) - BRL (R$) | 12 Months Ended | |||
Dec. 31, 2021 | Feb. 10, 2022 | Jan. 07, 2022 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||||
Outstanding derivative financial instruments | R$ 750 | R$ 2000 | ||
Derivatives [member] | USD - BRL [member] | Not later than one year [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Notional value | US$ 50 | |||
Outstanding derivative financial instruments | R$ 57000000 | |||
Derivatives [member] | USD - BRL [member] | Twenty Twenty Three [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Notional value | US$ 50 | |||
Outstanding derivative financial instruments | R$ 11000000 | |||
Derivatives [member] | C R I B R L [Member] | Twenty Twenty Eight And Twenty Thirty One [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Notional value | R$ 1,500 | |||
Outstanding derivative financial instruments | R$ 3000000 | |||
Derivatives [member] | Interest rate swaps registered at CETIP - Fixed x CDI [member] | 2027 [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Notional value | R$ 54 | |||
Outstanding derivative financial instruments | R$ 2000000 | 5,000,000 | ||
Derivatives [member] | Interest rate swaps registered at CETIP - Fixed rate x CDI [member] | 2027 [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Notional value | R$ 52 | |||
Outstanding derivative financial instruments | R$ 2000000 | 6,000,000 | ||
Derivatives [member] | Derivatives - Fair value hedge - Brazil [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Outstanding derivative financial instruments | R$ 4000000 | R$ 68000000 |
Schedule of debt weighted avera
Schedule of debt weighted average (Details) - BRL (R$) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Total current | R$ 609000000 | R$ 2063000000 |
Total non-current | 7,392,000,000 | 5,700,000,000 |
Total | 8,001,000,000 | 7,763,000,000 |
Current assets | 4,000,000 | 57,000,000 |
Non-current assets | 28,000,000 | 11,000,000 |
Current liabilities | 613,000,000 | 2,120,000,000 |
Non-current liabilities | R$ 7420000000 | 5,711,000,000 |
Debentures and promissory notes - Debentures [member] | ||
IfrsStatementLineItems [Line Items] | ||
Weighted average rate | CDI + 1.53% per year | |
Total current | R$ 194000000 | 1,864,000,000 |
[custom:WeightedAverageRateOnBorrowingAndFinancingNonCurrent] | CDI + 1.48% per year | |
Total non-current | R$ 6329000000 | 4,780,000,000 |
Debentures and promissory notes- Borrowing costs [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total current | (14,000,000) | (24,000,000) |
Total non-current | (63,000,000) | (21,000,000) |
Debentures and promissory notes [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total current | 180,000,000 | 1,840,000,000 |
Total non-current | R$ 6266000000 | 4,759,000,000 |
Borrowing and financing in domestic currency - BNDES [member] | ||
IfrsStatementLineItems [Line Items] | ||
Weighted average rate | TR + 9.80% | |
[custom:WeightedAverageRateOnBorrowingAndFinancingNonCurrent] | TR + 9.80% | |
Borrowing and financing denominated in domestic currency - Working capital [member] | ||
IfrsStatementLineItems [Line Items] | ||
Weighted average rate | CDI + 2.33% per year | |
Total current | R$ 14000000 | 12,000,000 |
[custom:WeightedAverageRateOnBorrowingAndFinancingNonCurrent] | CDI + 1.74% per year | |
Total non-current | R$ 47000000 | 60,000,000 |
BorrowingAndFinancingDenominatedInDomesticCurrency3Member | ||
IfrsStatementLineItems [Line Items] | ||
Total current | 419,000,000 | 9,000,000 |
Total non-current | 800,000,000 | 901,000,000 |
Borrowing and financing denominated in domestic currency - Borrowing costs [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total current | (4,000,000) | (5,000,000) |
Total non-current | (5,000,000) | (9,000,000) |
Total domestic currency [member] | ||
IfrsStatementLineItems [Line Items] | ||
Total current | 429,000,000 | 16,000,000 |
Total non-current | R$ 842000000 | 952,000,000 |
In foreign currency - Working capital [member] | ||
IfrsStatementLineItems [Line Items] | ||
Weighted average rate | CDI + 1.25% per year | |
Total current | R$ 1000000 | 264,000,000 |
[custom:WeightedAverageRateOnBorrowingAndFinancingNonCurrent] | CDI + 1.25% per year | |
Total non-current | R$ 279000000 | |
Total Foreign Currency [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total current | 1,000,000 | 264,000,000 |
Total non-current | 279,000,000 | |
Total Of Borrowings And Financing [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total current | 430,000,000 | 280,000,000 |
Total non-current | R$ 1121000000 | 952,000,000 |
In foreign currency - Swap contracts [member] | ||
IfrsStatementLineItems [Line Items] | ||
Weighted average rate | CDI + 0.86% per year | |
Total current | R$ 4000000 | (57,000,000) |
[custom:WeightedAverageRateOnBorrowingAndFinancingNonCurrent] | CDI + 0.03% per year | |
Total non-current | R$ 28000000 | (11,000,000) |
In Foreign Currency Swap Contracts 1 [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Weighted average rate | CDI + 1.35% per year | |
Total current | R$ 3000000 | |
[custom:WeightedAverageRateOnBorrowingAndFinancingNonCurrent] | CDI + 1.35% per year | |
Total non-current | R$ 33000000 | |
Total Derivative Financial Instruments [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Total current | (1,000,000) | (57,000,000) |
Total non-current | R$ 5000000 | R$ 11000000 |
Schedule of rollforward of fina
Schedule of rollforward of financial instruments (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Borrowings and financing, beginning | R$ 6599 | R$ 8781 | R$ 726 |
Funding - working capital | 6,090 | 2,852 | 9,395 |
Interest provision | 559 | 486 | 246 |
Swap contracts | 39 | (60) | (16) |
Mark-to-market | 31 | 12 | (46) |
Exchange rate and monetary variation | 5 | 57 | (29) |
Borrowing costs | 64 | 42 | 21 |
Interest amortization | (406) | (549) | (116) |
Principal amortization | (6,075) | (2,543) | (6,102) |
Swap amortization | 2 | 13 | 95 |
Derivative swap amortization | 4,527 | ||
Conversion adjustment to reporting currency | 172 | 80 | |
Debt modification impact | (71) | 71 | |
Discontinued operations | (1,571) | ||
Borrowings and financing, ending | R$ 6446 | R$ 6599 | R$ 8781 |
Schedule of noncurrent maturiti
Schedule of noncurrent maturities (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Schedule of noncurrent maturities | R$ 7460 | |
Borrowing Cost | (68) | |
Total noncurrent | 1,154 | R$ 952 |
Later than one year and not later than two years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Schedule of noncurrent maturities | 1,648 | |
Later than two years and not later than three years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Schedule of noncurrent maturities | 3,602 | |
Later than three years and not later than four years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Schedule of noncurrent maturities | 802 | |
Later than four years and not later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Schedule of noncurrent maturities | 572 | |
Later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Schedule of noncurrent maturities | R$ 836 |
Schedule of debentures and prom
Schedule of debentures and promissory notes (Details) - BRL (R$) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
IfrsStatementLineItems [Line Items] | ||||
Borrowings and financing, total | R$ 6446000000 | R$ 6599000000 | R$ 8781000000 | R$ 726000000 |
Borrowing costs | (77,000,000) | (45,000,000) | ||
Borrowings and financing, current liabilities | 180,000,000 | 1,840,000,000 | ||
Borrowings and financing, noncurrent liabilities | R$ 6266000000 | 4,759,000,000 | ||
First Issue of Promissory Notes - 1st series [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 50000000 | |||
Outstanding debentures | R$ 1000000 | |||
Issuance date | Jul. 4, 2019 | |||
Maturity date | Jul. 5, 2021 | |||
Annual financial charges | CDI + 0.72% per year | |||
Unit price | R$ 52998286000000 | |||
Borrowings and financing, total | 53,000,000 | |||
First Issue of Promissory Notes 2nd series [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 50000000 | |||
Outstanding debentures | R$ 1000000 | |||
Issuance date | Jul. 4, 2019 | |||
Maturity date | Jul. 4, 2022 | |||
Annual financial charges | CDI + 0.72% per year | |||
Unit price | R$ 56087744000000 | |||
Borrowings and financing, total | R$ 57000000 | 53,000,000 | ||
Debentures and promissory notes [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 250000000 | |||
Outstanding debentures | R$ 5000000 | |||
Issuance date | Jul. 4, 2019 | |||
Maturity date | Jul. 4, 2023 | |||
Annual financial charges | CDI + 0.72% per year | |||
Unit price | R$ 56087744000000 | |||
Borrowings and financing, total | R$ 281000000 | 267,000,000 | ||
First issue of promissory notes - 4th series [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 200000000 | |||
Outstanding debentures | R$ 4000000 | |||
Issuance date | Jul. 4, 2019 | |||
Maturity date | Jul. 4, 2024 | |||
Annual financial charges | CDI + 0.72% per year | |||
Unit price | R$ 56087744000000 | |||
Borrowings and financing, total | R$ 225000000 | 214,000,000 | ||
First Issue of Promissory Notes - 5th series [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 200000000 | |||
Outstanding debentures | R$ 4000000 | |||
Issuance date | Jul. 4, 2019 | |||
Maturity date | Jul. 4, 2025 | |||
Annual financial charges | CDI + 0.72% per year | |||
Unit price | R$ 56087744000000 | |||
Borrowings and financing, total | R$ 225000000 | 213,000,000 | ||
First Issue of Promissory Notes - 6th series [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 2000000000 | |||
Outstanding debentures | R$ 200000000000 | |||
Issuance date | Sep. 4, 2019 | |||
Maturity date | Aug. 20, 2021 | |||
Annual financial charges | CDI + 2.34% per year | |||
Unit price | R$ 876000000 | |||
Borrowings and financing, total | 1,762,000,000 | |||
First Issue of Debentures- 1st series [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 2000000000 | |||
Outstanding debentures | R$ 200000000000 | |||
Issuance date | Sep. 4, 2019 | |||
Maturity date | Aug. 20, 2022 | |||
Annual financial charges | CDI + 2.65% per year | |||
Unit price | R$ 1009000000 | |||
Borrowings and financing, total | 2,033,000,000 | |||
First Issue of Debentures - 2nd series [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 2000000000 | |||
Outstanding debentures | R$ 200000000000 | |||
Issuance date | Sep. 4, 2019 | |||
Maturity date | Aug. 20, 2023 | |||
Annual financial charges | CDI + 3.00% per year | |||
Unit price | R$ 1005000000 | |||
Borrowings and financing, total | 2,049,000,000 | |||
First Issue of Debentures - 3rd series [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 940000000000 | |||
Outstanding debentures | R$ 940000000000 | |||
Issuance date | Jun. 1, 2021 | |||
Maturity date | May 20, 2026 | |||
Annual financial charges | CDI + 1.70% per year | |||
Unit price | R$ 1011000000 | |||
Borrowings and financing, total | R$ 951000000 | |||
First Issue of Debentures - 4th series [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 660000000000 | |||
Outstanding debentures | R$ 660000000000 | |||
Issuance date | Jun. 1, 2021 | |||
Maturity date | May 22, 2028 | |||
Annual financial charges | CDI + 1.95% per year | |||
Unit price | R$ 1012000000 | |||
Borrowings and financing, total | R$ 668000000 | |||
Debentures And Promissory Notes 10 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 1250000000000 | |||
Outstanding debentures | R$ 940000000000 | |||
Issuance date | Aug. 27, 2021 | |||
Maturity date | Aug. 27, 2024 | |||
Annual financial charges | CDI + 1.47% per year | |||
Unit price | R$ 1368000000 | |||
Borrowings and financing, total | R$ 1285000000 | |||
Debentures And Promissory Notes 11 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 1250000000000 | |||
Outstanding debentures | R$ 940000000000 | |||
Issuance date | Aug. 27, 2021 | |||
Maturity date | Feb. 27, 2025 | |||
Annual financial charges | CDI + 1.53% per year | |||
Unit price | R$ 1368000000 | |||
Borrowings and financing, total | R$ 1286000000 | |||
Debentures And Promissory Notes 12 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 982526000000 | |||
Outstanding debentures | R$ 982526000000 | |||
Issuance date | Oct. 15, 2021 | |||
Maturity date | Oct. 16, 2028 | |||
Annual financial charges | IPCA + 5.15% per year | |||
Unit price | R$ 1030000000 | |||
Borrowings and financing, total | R$ 1012000000 | |||
Debentures And Promissory Notes 13 [Member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Type | non-preemptive right | |||
Issue amount | R$ 517474000000 | |||
Outstanding debentures | R$ 517474000000 | |||
Issuance date | Oct. 15, 2021 | |||
Maturity date | Oct. 15, 2031 | |||
Annual financial charges | IPCA + 5.27% per year | |||
Unit price | R$ 1031000000 | |||
Borrowings and financing, total | R$ 533000000 |
The provision for legal proceed
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 (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Balance as of December 31, 2018 | R$ 282 | R$ 349 | R$ 236 |
Additions | 91 | 148 | 41 |
Reversals | (139) | (71) | (22) |
Payments | (49) | (41) | (22) |
Monetary correction | 20 | 12 | 11 |
Balance as of December 31, 2019 | 205 | 282 | 349 |
Restricted deposits for legal proceedings | (112) | ||
Net provision of judicial deposits | 93 | ||
Conversion adjustment to reporting currency | 24 | ||
Discontinued operation | (139) | ||
Business combinations | 103 | ||
Exchange rate changes | 2 | ||
Tax Claims [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance as of December 31, 2018 | 169 | 221 | 147 |
Additions | 39 | 27 | 16 |
Reversals | (106) | (9) | (10) |
Payments | (1) | (13) | |
Monetary correction | 7 | 1 | 3 |
Balance as of December 31, 2019 | 109 | 169 | 221 |
Restricted deposits for legal proceedings | (65) | ||
Net provision of judicial deposits | 44 | ||
Conversion adjustment to reporting currency | 18 | ||
Discontinued operation | (88) | ||
Business combinations | 76 | ||
Exchange rate changes | 2 | ||
Social Security And Labor [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance as of December 31, 2018 | 64 | 75 | 53 |
Additions | 44 | 42 | 12 |
Reversals | (23) | (43) | (8) |
Payments | (21) | (5) | (2) |
Monetary correction | 5 | 8 | 7 |
Balance as of December 31, 2019 | 69 | 64 | 75 |
Restricted deposits for legal proceedings | (45) | ||
Net provision of judicial deposits | 24 | ||
Conversion adjustment to reporting currency | 2 | ||
Discontinued operation | (15) | ||
Business combinations | 13 | ||
Exchange rate changes | |||
Civil And Regulatory [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Balance as of December 31, 2018 | 49 | 53 | 36 |
Additions | 8 | 79 | 13 |
Reversals | (10) | (19) | (4) |
Payments | (28) | (35) | (7) |
Monetary correction | 8 | 3 | 1 |
Balance as of December 31, 2019 | 27 | 49 | 53 |
Restricted deposits for legal proceedings | (2) | ||
Net provision of judicial deposits | R$ 25 | ||
Conversion adjustment to reporting currency | 4 | ||
Discontinued operation | R$ 36 | ||
Business combinations | 14 | ||
Exchange rate changes |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) - Computer software [member] | 12 Months Ended |
Dec. 31, 2021 | |
IfrsStatementLineItems [Line Items] | |
Amortization rate | 13.22% |
Description of discount and growth rate | The discount rate applied to cash flow projections was 10.40% on December 31, 2021 (9.80% on December 31, 2020), and cash flows that exceed the three years period are extrapolated using a growth rate of 6.60% on December 31, 2021 (4.57% on December 31, 2020) |
Bottom of range [member] | |
IfrsStatementLineItems [Line Items] | |
Useful life (in years) | 5 years |
Top of range [member] | |
IfrsStatementLineItems [Line Items] | |
Useful life (in years) | 10 years |
Schedule of guarantees (Details
Schedule of guarantees (Details) R$ in Millions | Dec. 31, 2021BRL (R$) |
IfrsStatementLineItems [Line Items] | |
Guarantees | R$ 951 |
Tax Claims [Member] | |
IfrsStatementLineItems [Line Items] | |
Guarantees | 630 |
Labor [member] | |
IfrsStatementLineItems [Line Items] | |
Guarantees | 98 |
Civil and others [member] | |
IfrsStatementLineItems [Line Items] | |
Guarantees | R$ 223 |
Schedule of judicial deposits (
Schedule of judicial deposits (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Judicial deposits | R$ 119 | R$ 134 |
Restricted deposits for legal proceedings [member] | Tax Claims [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Judicial deposits | 65 | 64 |
Restricted deposits for legal proceedings [member] | Labor [member] | ||
IfrsStatementLineItems [Line Items] | ||
Judicial deposits | 50 | 67 |
Restricted deposits for legal proceedings [member] | Civil and others [member] | ||
IfrsStatementLineItems [Line Items] | ||
Judicial deposits | R$ 4 | R$ 3 |
Provision for legal proceedin_3
Provision for legal proceedings (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [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. | |
Tax contingent liability [member] | ||
IfrsStatementLineItems [Line Items] | ||
Provision for lawsuits | R$ 15 | R$ 17 |
Contingent liabilities possible losses amount | 2,346 | 2,408 |
Contingent liabilities assessments prior amount | 478 | 466 |
Contingent liabilities tax proceedings | 609 | 632 |
Contingent liabilities tax assessments amount | 1,128 | 1,235 |
Advertising expenses and various fees | 13 | 13 |
Contingent liabilities estimate possible losses amount | 56 | 21 |
Other litigation | R$ 47 | 24 |
Guarantees [member] | ||
IfrsStatementLineItems [Line Items] | ||
Percentage for cost of letter of guarantees | 0.32% | |
Civil and other [member] | ||
IfrsStatementLineItems [Line Items] | ||
Provision for lawsuits | R$ 6 | 5 |
Provision for contingencies remaining amount | 27 | 49 |
PIS/COFINS [member] | ||
IfrsStatementLineItems [Line Items] | ||
Potential credit amount | 216 | |
Revenue net | 175 | |
Financial result arising from monetary correction | 41 | |
Tax Claims [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Provision for contingencies accrued amount | 109 | 169 |
Social Security And Labor [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Provision for contingencies accrued amount | 69 | 64 |
Civil | ||
IfrsStatementLineItems [Line Items] | ||
Restricted deposits for legal proceeding | R$ 21 | R$ 23 |
Minimum future payments (Detail
Minimum future payments (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Present value of finance lease agreements | R$ 4051 | R$ 2776 |
Future financing charges | 4,042 | 2,478 |
Gross amount of financial lease agreements | 8,093 | 5,254 |
PIS and COFINS embedded in the present value of lease agreements | 246 | 169 |
PIS and COFINS embedded in the gross value of lease agreements | 492 | 319 |
Later than one year [member] | ||
IfrsStatementLineItems [Line Items] | ||
Present value of finance lease agreements | 244 | 172 |
Later than one year and not later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Present value of finance lease agreements | 1,231 | 866 |
Later than five years [member] | ||
IfrsStatementLineItems [Line Items] | ||
Present value of finance lease agreements | R$ 2576 | R$ 1738 |
Lease liability rollforward (De
Lease liability rollforward (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Balance as of beginnning | R$ 2776 | R$ 3751 | R$ 1180 |
Addition - Lease | 919 | 1,240 | 682 |
Lease modification | 628 | 621 | 138 |
Interest provision | 302 | 415 | 170 |
Amortizations | (468) | (756) | (267) |
Write-off due to early termination of agreement | (106) | (518) | (1) |
Company acquisition | 1,817 | ||
Conversion currency adjustment | 433 | 32 | |
Exchange rate and monetary variation | 1 | ||
Transfer to parent company | 9 | ||
Discontinued operation | (2,416) | ||
Corporate restructuring | (4) | ||
Balance as of end | 4,051 | 2,776 | R$ 3751 |
Current | 244 | 172 | |
Non-current | R$ 3807 | R$ 2604 |
Lease expense on variable rents
Lease expense on variable rents, low-value, and short-term assets (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Variables (0.5% e 1.6% of sales) [member] | |||
IfrsStatementLineItems [Line Items] | |||
Expenses (revenues) for the period: | R$ 6 | R$ 16 | R$ 19 |
Subleases [member] | |||
IfrsStatementLineItems [Line Items] | |||
Expenses (revenues) for the period: | R$ 31 | R$ 22 | R$ 20 |
Schedule of liabilities related
Schedule of liabilities related to assets held to sale (Details) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | |
Sale and Leaseback | R$ 68 | ||
Rental of spaces in stores | [1] | 233 | 186 |
Checkstand | [2] | 41 | 29 |
Gift card and others | 2 | 2 | |
Marketing | 12 | 11 | |
Total | 356 | 228 | |
Current | 356 | 227 | |
Non-current | R$ 1 | ||
[1] | Rental of backlight panels. | ||
[2] | Supplier product exhibition modules, or check stands, rental of POS displays, and front-fee anticipation with credit card operators. |
Leases (Details Narrative)
Leases (Details Narrative) - BRL (R$) R$ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases terms of contracts | The terms of the contracts vary substantially between 5 and 20 years. | |
Leasing agreements | R$ 4051 | R$ 2776 |
Incremental interest rate | 10.53% | 9.72% |
Reconciliation of income tax an
Reconciliation of income tax and social contribution expense (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Earnings before income tax and social contribution | R$ 1849 | R$ 1625 | R$ 1502 | |
Expense of income tax and social contribution | 629 | 553 | 511 | |
Adjustments to reflect the effective rate | ||||
Tax fines | 1 | 1 | 2 | |
Share of profits | (16) | (105) | (84) | |
Interest on Equity | 22 | |||
ICMS subsidy - tax incentives | [1] | 241 | ||
Interest Selic credits | [2] | 81 | ||
Credits of monetary corrections | 11 | |||
Tax benefits | (22) | (29) | ||
Other permanent differences | (2) | (16) | 3 | |
Effective income tax | (239) | (436) | (426) | |
Income tax and social contribution for the year | ||||
Current | 366 | 704 | 293 | |
Deferred | (127) | (268) | 133 | |
Income tax and social contribution expenses | R$ 239 | R$ 436 | R$ 426 | |
Effective rate | 12.09% | 26.80% | 28.40% | |
[1] | The Company has tax benefits that are characterized as investment subsidies as provided for in Complementary Law n° 160/17 and Law n°. 12,973/14. At the year ended December 31, 2021, the Company excluded the IRPJ and CSLL calculation bases from the amount constituted in the tax incentive reserve (see note 22.4). | |||
[2] | The credit refers to the decision general repercussion of STF which understood that the SELIC interest arising from the repetition of undue payment, have the nature of emergent damage. Therefore, there is no incidence of IRPJ and CSLL on the interest portion. |
Key components of deferred inco
Key components of deferred income tax and social contribution in the balance sheets are the following: (Details) - BRL (R$) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
IfrsStatementLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | R$ 45000000 | ||
Deferred income tax and social contribution, liabilities | (82,000,000) | ||
Deferred income tax and social contribution, net | 45,000,000 | (82,000,000) | R$ 1191000000 |
Tax losses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 167,000,000 | ||
Deferred income tax and social contribution, liabilities | |||
Deferred income tax and social contribution, net | 167,000,000 | ||
Provision for legal proceedings [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 59,000,000 | 81,000,000 | |
Deferred income tax and social contribution, liabilities | |||
Deferred income tax and social contribution, net | 59,000,000 | 81,000,000 | |
Exchange rate variation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 26,000,000 | ||
Deferred income tax and social contribution, liabilities | (7,000,000) | ||
Deferred income tax and social contribution, net | (7,000,000) | 26,000,000 | |
Goodwill tax amortization [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | |||
Deferred income tax and social contribution, liabilities | (317,000,000) | (315,000,000) | |
Deferred income tax and social contribution, net | (317,000,000) | (315,000,000) | |
Mark-to-market adjustment [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 1,000,000 | ||
Deferred income tax and social contribution, liabilities | (2,000,000) | ||
Deferred income tax and social contribution, net | 1,000,000 | (2,000,000) | |
Property, plant and equipment, intangible and investment properties [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 33,000,000 | 37,000,000 | |
Deferred income tax and social contribution, liabilities | |||
Deferred income tax and social contribution, net | 33,000,000 | 37,000,000 | |
Unrealized gains with tax credits [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | |||
Deferred income tax and social contribution, liabilities | (28,000,000) | (60,000,000) | |
Deferred income tax and social contribution, net | (28,000,000) | (60,000,000) | |
Cash flow hedge [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | |||
Deferred income tax and social contribution, liabilities | (26,000,000) | (20,000,000) | |
Deferred income tax and social contribution, net | (26,000,000) | (20,000,000) | |
Lease net of right of use [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 150,000,000 | 131,000,000 | |
Deferred income tax and social contribution, liabilities | |||
Deferred income tax and social contribution, net | 150,000,000 | 131,000,000 | |
Presumed tax on equity - exito group [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 24,000,000 | ||
Deferred income tax and social contribution, liabilities | |||
Deferred income tax and social contribution, net | 24,000,000 | ||
Others [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 13,000,000 | 16,000,000 | |
Deferred income tax and social contribution, liabilities | |||
Deferred income tax and social contribution, net | 13,000,000 | 16,000,000 | |
Gross deferred income tax and social contribution assets (liabilities) [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | 423,000,000 | 315,000,000 | |
Deferred income tax and social contribution, liabilities | (378,000,000) | (397,000,000) | |
Deferred income tax and social contribution, net | 45,000,000 | (82,000,000) | |
Compensation [member] | |||
IfrsStatementLineItems [Line Items] | |||
Deferred income tax and social contribution, assets | (378,000,000) | (315,000,000) | |
Deferred income tax and social contribution, liabilities | 378,000,000 | 315,000,000 | |
Deferred income tax and social contribution, net |
The Company estimates the recov
The Company estimates the recovery of the deferred tax assets as of December 31, 2021 as follows: (Details) R$ in Millions | Dec. 31, 2021BRL (R$) |
IfrsStatementLineItems [Line Items] | |
Recovery of deferred tax assets | R$ 423 |
Not later than one year [member] | |
IfrsStatementLineItems [Line Items] | |
Recovery of deferred tax assets | 26 |
Later than one year and not later than two years [member] | |
IfrsStatementLineItems [Line Items] | |
Recovery of deferred tax assets | 225 |
Later than three years and not later than five years [member] | |
IfrsStatementLineItems [Line Items] | |
Recovery of deferred tax assets | 5 |
Later than five years [member] | |
IfrsStatementLineItems [Line Items] | |
Recovery of deferred tax assets | R$ 167 |
Schedule of changes in deferred
Schedule of changes in deferred income tax and social contribution (Details) - BRL (R$) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
At the beginning of the period | R$ 82000000 | R$ 1191000000 | R$ 265000000 |
Benefits (expenses) in the year | 127,000,000 | 372,000,000 | (162,000,000) |
Corporate reorganization | 45,000,000 | ||
Deconsolidation | 883,000,000 | ||
Purchase partnership | (747,000,000) | ||
Conversion currency adjustment | (18,000,000) | ||
Exchange variation | (193,000,000) | ||
Other | 2,000,000 | 1,000,000 | |
At the end of the period | R$ 45000000 | R$ 82000000 | R$ 1191000000 |
Income tax and social contrib_3
Income tax and social contribution (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
Description of income taxes calculated based on taxable income | 15% on taxable income plus an additional 10% on annual taxable income exceeding R$ 240 for IRPJ, and 9% for CSLL. |
Taxable income percentage | 3000.00% |
The Company's shareholding stru
The Company's shareholding structure is shown as follows: (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
IfrsStatementLineItems [Line Items] | ||
Number of shares | 1,346,674,477 | 1,341,757,835 |
Participation | 100.00% | 100.00% |
Controlling Shareholder [member] | ||
IfrsStatementLineItems [Line Items] | ||
Participation | 41.42% | 100.00% |
Controlling Shareholders [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of shares | 557,857,105 | 1,341,757,835 |
Outstanding Shares [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of shares | 788,817,372 | |
Participation | 58.58% |
Management proposed dividends t
Management proposed dividends to be distributed, considering the anticipation of interest on equity to its shareholders, calculated as follows: (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Net income for the year | R$ 1610 | R$ 1398 | R$ 1047 | |
Tax incentive reserve | R$ 709 | |||
% Legal reserve | 5.00% | 5.00% | 5.00% | |
Legal reserve for the year | R$ 5 | R$ 5 | R$ 52 | |
Minimum mandatory dividends - 25% | 224 | 349 | 1 | |
Interest on capital paid intermediaries | [1] | 56 | 264 | 247 |
Minimum mandatory dividends paid in the form of interest on shareholder´s equity | R$ 168 | R$ 85 | R$ 1 | |
[1] | At a meeting of the Board of Directors held on September 30, 2021, the advance payment of interest on equity in the gross amount of R$63 was approved, pursuant to which the withholding tax was deducted in the amount of R$7, corresponding to the net amount of R$56. |
Profit reserve (Details)
Profit reserve (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income for the year | R$ 1610 | R$ 1398 | R$ 1047 |
Tax incentive reserve | 709 | ||
Base for legal reserve | 901 | 1,398 | |
Legal reserve for the year | R$ 5 | R$ 5 | R$ 52 |
Schedule of option plan and com
Schedule of option plan and compensation plan (Details) | Dec. 31, 2021R$ / sharesshares |
Granted series | B8 |
Grant date | May 31, 2021 |
Exercise date | Jun. 1, 2024 |
Strike price | R$ / shares | R$ 0.01 |
Grantees | 363,000 |
Cancelled | (29,000) |
Current | 334,000 |
Granted series | C8 |
Grant date | May 31, 2021 |
Exercise date | Jun. 1, 2024 |
Strike price | R$ / shares | R$ 13.39 |
Grantees | 363,000 |
Cancelled | (29,000) |
Current | 334,000 |
Total grantees | 726,000 |
Total cancelled | (58,000) |
Total current | 668,000 |
Schedule of dilutive effect on
Schedule of dilutive effect on options granted (Details) | 12 Months Ended |
Dec. 31, 2021shares | |
Number of shares | 1,346,674,000 |
Balance of effective stock options granted | 668,000 |
Maximum percentage of dilution | 0.05% |
Schedule of weighted average fa
Schedule of weighted average fair value of options granted (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2021sharesR$ / shares | Dec. 31, 2019R$ / shares | |
Granted in the year | shares | 726 | |
Granted in the year | R$ / shares | R$ 6.70 | |
Cancelled in the year | shares | (58) | |
Cancelled in the year | R$ / shares | R$ 6.70 | |
Outstanding at year end | shares | 668 | |
Outstanding at year end | R$ / shares | R$ 6.70 | |
Outstanding at year end (In Years) | 2 years 4 months | |
Total exercised on December 31, 2021 | shares | 668 | |
Total exercised on December 31, 2021 | R$ / shares | R$ 6.70 | |
Total exercised on December 31, 2021 | 2 years 4 months |
Prior to the Company's spin-off
Prior to the Company's spin-off from GPA, certain Company executives received compensation in the form of GPA stock options. (Details) | Dec. 31, 2021R$ / sharesshares |
Granted series compensation | B5 |
Grant date | May 31, 2018 |
Exercised date | May 31, 2021 |
Strike price | R$ / shares | R$ 0.01 |
Share grantees compensation | 2,970,000 |
Shares excersied compensation | (2,640,000) |
Shares cancelled compensation | (245,000) |
Shares outstanding compensation | (85,000) |
Shares current compensation | |
Granted series compensation | C5 |
Grant date | May 31, 2018 |
Exercised date | May 31, 2021 |
Strike price | R$ / shares | R$ 47.19 |
Share grantees compensation | 2,970,000 |
Shares excersied compensation | (2,410,000) |
Shares cancelled compensation | (300,000) |
Shares outstanding compensation | (260,000) |
Shares current compensation | |
Granted series compensation | B6 |
Grant date | May 31, 2019 |
Exercised date | May 31, 2022 |
Strike price | R$ / shares | R$ 0.01 |
Share grantees compensation | 2,310,000 |
Shares excersied compensation | (645,000) |
Shares cancelled compensation | (165,000) |
Shares outstanding compensation | |
Shares current compensation | 1,500,000 |
Granted series compensation | C6 |
Grant date | May 31, 2019 |
Exercised date | May 31, 2022 |
Strike price | R$ / shares | R$ 53.23 |
Share grantees compensation | 1,795,000 |
Shares excersied compensation | (610,000) |
Shares cancelled compensation | (210,000) |
Shares outstanding compensation | |
Shares current compensation | 975,000 |
Granted series compensation | B7 |
Grant date | Jan. 31, 2021 |
Exercised date | May 31, 2023 |
Strike price | R$ / shares | R$ 0.01 |
Share grantees compensation | 3,365,000 |
Shares excersied compensation | (515,000) |
Shares cancelled compensation | (115,000) |
Shares outstanding compensation | |
Shares current compensation | 2,735,000 |
Granted series compensation | C7 |
Grant date | Jan. 31, 2021 |
Exercised date | May 31, 2023 |
Strike price | R$ / shares | R$ 38.58 |
Share grantees compensation | 2,485,000 |
Shares excersied compensation | (520,000) |
Shares cancelled compensation | (115,000) |
Shares outstanding compensation | |
Shares current compensation | 1,850,000 |
[custom:TotalShareGranteesCompensation-0] | 15,895,000 |
Total shares excersied compensation | (7,340,000) |
Total shares cancelled compensation | (1,150,000) |
Total shares outstanding compensation | (345,000) |
[custom:TotalSharesCurrentCompensation-0] | 7,060,000 |
The movement in the number of o
The movement in the number of options granted, the weighted average of the exercise price and the weighted average of the remaining term are presented in the table below: (Details) Number in Millions | 12 Months Ended | |
Dec. 31, 2021NumberR$ / shares | Dec. 31, 2020NumberR$ / shares | |
Number of share options exercisable in share-based payment arrangement | Number | 7,340 | 2,153 |
Weighted average exercise price of share options exercisable in share-based payment arrangement | R$ / shares | R$ 6.14 | R$ 30.25 |
Number of share options forfeited in share-based payment arrangement | Number | (270) | (70) |
Weighted average exercise price of share options forfeited in share-based payment arrangement | R$ / shares | R$ 22.36 | R$ 42.59 |
Number of share options exercised in share-based payment arrangement | Number | (5,785) | (489) |
Weighted average exercise price of share options exercised in share-based payment arrangement | R$ / shares | R$ 22.76 | R$ 23.93 |
Number of share options expired in share-based payment arrangement | Number | (350) | (126) |
Weighted average exercise price of share options expired in share-based payment arrangement | R$ / shares | R$ 35.30 | R$ 42.44 |
Number of share options outstanding in share-based payment arrangement | Number | 7,060 | 1,468 |
Weighted average exercise price of share options outstanding in share-based payment arrangement | R$ / shares | R$ 17.45 | R$ 30.71 |
Total exercised on December 31, 2020 | Number | 1,468 | |
Total exercised on December 31, 2020 | R$ / shares | R$ 30.71 | |
Number of share options exercisable in share-based payment arrangement | Number | 7,060 | 7,340 |
Weighted average exercise price of share options exercisable in share-based payment arrangement | R$ / shares | R$ 17.45 | R$ 6.14 |
Number of share options granted in share-based payment arrangement | Number | 6,125 | |
Weighted average exercise price of share options granted in share-based payment arrangement | R$ / shares | R$ 16.86 |
Shareholders_ equity (Details N
Shareholders’ equity (Details Narrative) - BRL (R$) R$ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
IfrsStatementLineItems [Line Items] | ||
Issued capital | R$ 788 | R$ 761 |
Companhia Brasileira De Distribuicao [Member] | ||
IfrsStatementLineItems [Line Items] | ||
Number of shares issued | 1,346,674,477 | 1,341,757,835 |
Schedule of net operating reven
Schedule of net operating revenue (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Gross operating revenue | |||
Goods | R$ 45550 | R$ 39436 | R$ 30487 |
Services rendered and others | 111 | 100 | 87 |
Gross operating revenue | 45,661 | 39,536 | 30,574 |
(-) Revenue deductions | |||
Returns and sales cancellation | (76) | (73) | (57) |
Taxes | (3,687) | (3,420) | (2,435) |
Revenue deductions | (3,763) | (3,493) | (2,492) |
Net operating revenue | R$ 41898 | R$ 36043 | R$ 28082 |
Schedule of expenses by nature
Schedule of expenses by nature (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Operating expense | R$ 38675 | R$ 33375 | R$ 25974 |
Cost of sales | (34,753) | (30,129) | (23,349) |
Selling expenses | (3,334) | (2,811) | (2,273) |
General and administrative expenses | (588) | (435) | (352) |
Cost of inventories [member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating expense | (34,163) | (29,641) | (22,929) |
Personnel expenses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating expense | (2,512) | (2,135) | (1,691) |
Outsourced services [member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating expense | (251) | (224) | (198) |
Selling expenses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating expense | (646) | (511) | (408) |
Functional expenses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating expense | (664) | (600) | (546) |
Other expenses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Operating expense | R$ 439 | R$ 264 | R$ 202 |
Schedule of other operating exp
Schedule of other operating expenses, net (Details) - BRL (R$) R$ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Result with property, plant and equipment | R$ 12 | R$ 42 | R$ 5 | |
Reversal (provision) for legal proceedings | 9 | (18) | (53) | |
Restructuring expenses and others | [1] | (74) | (71) | 37 |
Covid-19 spending on prevention | (134) | |||
Indemnity assets | 168 | |||
Total | R$ 53 | R$ 97 | R$ 11 | |
[1] | Refers primarily to expenses with the spin-off and acquisition of Extra Hiper stores with payments of legal fees, property appraisal and due diligence. |
Schedule of net financial resul
Schedule of net financial result (Details) - BRL (R$) R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
IfrsStatementLineItems [Line Items] | |||
Total financial expenses | R$ 918 | R$ 786 | R$ 436 |
Total financial revenues | 188 | 343 | 236 |
Net financial result | (730) | (443) | (200) |
Cost of debt [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total financial expenses | (543) | (474) | (247) |
Cost and discount of receivables [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total financial expenses | (51) | (31) | (34) |
Monetary restatement (liabilities) [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total financial expenses | (13) | (11) | (8) |
Interest on leasing liabilities [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total financial expenses | (292) | (219) | (138) |
Other financial expenses [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total financial expenses | (19) | (51) | (9) |
Cash and cash equivalents profitability [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total financial expenses | 87 | 39 | 57 |
Monetary restatement (assets) [member] | |||
IfrsStatementLineItems [Line Items] | |||
Total financial expenses | 93 | 299 | 175 |
Other Financial Revenues [Member] | |||
IfrsStatementLineItems [Line Items] | |||
Total financial expenses | R$ 8 | R$ 5 | R$ 4 |
Schedule of earnings per share
Schedule of earnings per share (Details) - BRL (R$) R$ / shares in Units, shares in Millions, R$ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic number: | |||
Allocated basic earnings and not distributed- Continued operation | R$ 1610 | ||
Net income allocated available to common shareholders | R$ 1610 | R$ 1398 | R$ 1047 |
Basic denominator (millions of shares) | |||
Weighted average of the number of shares | 1,344 | ||
Basic earnings per million shares (R$) | R$ 1.19802 | ||
Diluted number: | |||
Allocated diluted earnings and not distributed | R$ 1610 | ||
Diluted denominator (millions of shares) | |||
Weighted average of the number of shares | 1,344 | ||
Stock options plan | 11 | ||
Diluted weighted average of shares | 1,355 | ||
Diluted earnings per million shares (R$) | R$ 1.18852 | ||
Net income allocated available to common shareholders | R$ 1610 | 1,398 | 1,047 |
Originally Presented [Member] | |||
Basic number: | |||
Allocated basic earnings and not distributed- Continued operation | 1,189 | 1,076 | |
Net income allocated available to common shareholders | R$ 1398 | R$ 1047 | |
Diluted denominator (millions of shares) | |||
Weighted average of the number of shares | 268 | 258 | |
Allocated basic earnings and not distributed- Discontinued operation | R$ 209 | R$ 29 | |
Net income allocated available to common shareholders | R$ 1398 | R$ 1047 | |
Basic and diluted earnings per million shares (R$) - Attributable to controlling shareholders | R$ 4.43657 | R$ 4.17054 | |
Basic and diluted earnings per million shares (R$) - Attributable to controlling shareholders | R$ 5.21642 | R$ 4.05814 | |
Restated One [Member] | |||
Basic number: | |||
Allocated basic earnings and not distributed- Continued operation | R$ 1189 | R$ 1076 | |
Net income allocated available to common shareholders | R$ 1398 | R$ 1047 | |
Diluted denominator (millions of shares) | |||
Weighted average of the number of shares | 1,340 | 1,290 | |
Allocated basic earnings and not distributed- Discontinued operation | R$ 209 | R$ 29 | |
Net income allocated available to common shareholders | R$ 1398 | R$ 1047 | |
Basic and diluted earnings per million shares (R$) - Attributable to controlling shareholders | R$ 0.88731 | R$ 0.83411 | |
Basic and diluted earnings per million shares (R$) - Attributable to controlling shareholders | R$ 1.04328 | R$ 0.81163 | |
Split Effect [Member] | |||
Diluted denominator (millions of shares) | |||
Weighted average of the number of shares | 1,072 | 1,032 |
Schedule of assets held for sal
Schedule of assets held for sale (Details) R$ in Millions | 12 Months Ended | |
Dec. 31, 2021BRL (R$) | ||
Sale and leaseback | R$ 147 | [1] |
Extra Hiper stores | 403 | [2] |
Total | R$ 550 | |
[1] | Refers to the two properties as detailed in note 1.4. | |
[2] | For the property, plant and equipment acquired from the 6 properties owned by GPA, the Company expects to complete the sale of these assets to a certain real estate fund (see notes 1.5 and 32.2). After the sale is completed, the Company will enter into a lease agreement with the real estate fund to operate the commercial points. |
Earnings per share (Details Nar
Earnings per share (Details Narrative) | Aug. 11, 2021shares |
Common Shares Reverse Stock split | 269,299,859 |
Capital stock | 1,346,499,295 |
Segment information (Details Na
Segment information (Details Narrative) | 12 Months Ended |
Dec. 31, 2021 | |
Description of operation of retail stores | The Company is involved in the operation of retail stores located in 23 Brazilian states and the Federal District |
Schedule of discontinued operat
Schedule of discontinued operation (Details) - BRL (R$) R$ / shares in Units, R$ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
IfrsStatementLineItems [Line Items] | ||||
Net operating revenue | R$ 41898 | R$ 36043 | R$ 28082 | |
Cost of sales | 34,753 | 30,129 | 23,349 | |
Gross profit | 7,145 | 5,914 | 4,733 | |
Selling expenses | 3,334 | 2,811 | 2,273 | |
General and administrative expenses | 588 | 435 | 352 | |
Other operating expenses, net | (53) | (97) | (11) | |
Operating expenses | (38,675) | (33,375) | (25,974) | |
Operating profit | 2,579 | 2,068 | 1,702 | |
Net financial result | (730) | (443) | (200) | |
Income before income taxes | 1,849 | 1,625 | 1,502 | |
Exchange differences on translation of foreign investments | 358 | 220 | ||
Cash flow hedge | 5 | |||
Other comprehensive income for the year | (1) | 358 | 225 | |
Total comprehensive income for the year | 3,874 | 1,285 | ||
Operational activities | 3,272 | 3,498 | 3,159 | |
Investment activities | (3,276) | (4,787) | (4,370) | |
Financing activities | (978) | (793) | 4,715 | |
Exchange rate variation on cash and cash equivalents | 588 | 111 | ||
Depreciation and amortization | 638 | 503 | 395 | |
Income tax and social contribution | 239 | 436 | 426 | |
Current assets | 8,772 | 8,349 | ||
Non current assets | 14,082 | 10,472 | ||
Current liabilities | 8,644 | 8,786 | ||
Non-current liabilities | 11,444 | 8,688 | ||
Shareholders' equity | R$ 2766 | 1,347 | 9,701 | R$ 4092 |
Discontinued operations [member] | ||||
IfrsStatementLineItems [Line Items] | ||||
Net operating revenue | 22,034 | 2,151 | ||
Cost of sales | (16,526) | (1,542) | ||
Gross profit | 5,508 | 609 | ||
Selling expenses | (2,973) | (510) | ||
General and administrative expenses | (848) | 188 | ||
Depreciation and amortization | (729) | (59) | ||
Share of profit and loss of associate | 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 | ||
Net income operation discontinued | (1) | |||
Net income accounting year | 367 | 92 | ||
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 | (47) | (70) | ||
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 | ||
Diluted and Basic, discontinued operation | R$ 0.8214 | R$ 0.2054 | ||
Depreciation and amortization | R$ 729 | R$ 59 | ||
Income tax and social contribution | (60) | (43) | ||
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 |
Subsequent events (Details Narr
Subsequent events (Details Narrative) - BRL (R$) | Feb. 11, 2022 | Jan. 10, 2022 | Jan. 07, 2022 | Feb. 25, 2022 | Feb. 10, 2022 |
IfrsStatementLineItems [Line Items] | |||||
Total amount | R$ 2000 | R$ 750 | |||
Events After Reporting Periods [member] | Board of Directors [member] | Non-convertible, unsecured debentures - second series [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Interest rate | CDI + 1.75% | ||||
Description of debt payment | paid semi-annually until maturity. The principal amount will be settled in a single installment at the end of the three-year contract (2025) | ||||
Events After Reporting Periods [member] | Board of Directors [member] | Non-convertible, unsecured debentures [member] | |||||
IfrsStatementLineItems [Line Items] | |||||
Total amount | R$ 1200000000 | ||||
Interest rate | CDI + 1.70% | ||||
Description of debt payment | paid semi-annually until maturity. The principal amount will be paid in two equal installments, in 2026 and in 2027 |