EX-99.1 2 tm2315946d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

EARNINGS RELEASE 1Q23

 

RESPONSE SEGMENT

 

 

INCOME STATEMENT
R$ million		   1Q23   1Q22   Var.    4Q22   Var. 
GROSS REVENUE   627.1    350.4    79.0%   667.8    -6.1%
DEDUCTIONS   -30.9    -28.4    8.8%   -35.5    -13.0%
NET REVENUE   596.3    321.9    85.2%   632.3    -5.7%
COSTS OF SERVICES PROVIDED   -452.1    -229.0    97.4%   -454.2    -0.5%
GROSS PROFIT   144.1    92.9    55.1%   178.1    -19.1%
GROSS MARGIN   24.2%   28.9%   -4.7 p.p.    28.2%   -4.0 p.p. 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES   -5.1    -7.6    -32.9%   -5.1    0.0%

 

GROSS REVENUE

 

COMPOSITION
OF GROSS REVENUE
R$ million		  1Q21   2Q21   3Q21   4Q21   1Q22   2Q22   3Q22   4Q22   1Q23 
RESPONSE                                             
GROSS REVENUE   161.6    215.2    262.4    281.5    350.4    363.3    431.8    667.8    627.1 
Brazil   59.5    70.1    82.2    77.1    112.5    122.8    159.4    202.5    208.7 
International   102.0    145.1    180.2    204.4    237.9    240.6    272.4    465.3    418.4 
Latam (ex Brazil)   35.8    36.9    47.7    50.1    57.9    58.7    44.1    50.3    55.8 
Europe   23.3    42.4    50.1    48.1    47.8    50.5    51.8    64.7    56.1 
North America   42.9    65.8    82.4    106.2    132.2    131.3    176.5    350.3    306.5 

 

·Gross revenue reached R$627 million in 1Q23, 79.0% higher than 1Q22 and 6.1% lower than 4Q22. Our operations had revenue variations as expected. Witt O’Brien’s contributed R$111 million to the result. Therefore, the gross income of Response ex-WOB would have been practically flat QoQ.

 

Below we describe the revenue behavior of the different lines of business by geographic region.

 

BRAZIL

 

COMPOSITION OF GROSS REVENUE
R$ million		  1Q23   1Q22   Chg.
1Q23 x1Q22		   4Q22   Chg.
1Q23 X4Q22		 
RESPONSE                         
GROSS REVENUES   627.1    350.4    79.0%   667.8    -6.1%
Brazil   208.7    112.5    85.5%   202.5    3.1%
Subscriptions Brazil   38.2    33.7    13.4%   37.0    3.2%
Services Brazil   170.5    78.8    116.4%   165.5    3.0%

 

 

 

 

Attended Services     1Q22  2Q22  3Q22  4Q22  1Q23  Chg.
1Q23 x1Q22		 
Brazil  Gross Revenue (BRL Million)  78.8   89.0   123.5   165.5   170.5   116.5%
  Number of Services Provided  1,754   1,853   2,435   2,594   2,727   55.5%
   Average Ticket (BRL Thousand)  44.9   48.1   50.7   63.8   62.5   39.3%

 

·Gross Revenue in Brazil grew in all comparisons, mainly driven by the increase in more complex services and the result of investments for growth in the acquired companies.
·The average ticket rose YoY, and QoQ remained stable, reflecting the strategy of bringing new services and creating a complementary portfolio.

 

LATAM

 

COMPOSITION OF GROSS REVENUE
R$ million		  1Q23   1Q22   Chg.
1Q23 x1Q22		   4Q22   Chg.
1Q23 X4Q22		 
RESPONSE                         
GROSS REVENUES   627.1    350.4    79.0%   667.8    -6.1%
International   418.4    237.9    75.9%   465.3    -10.1%
Latam (ex-Brazil)   55.8    57.9    -3.6%   50.3    10.9%
Subscriptions Latam   36.1    31.2    15.7%   35.5    1.7%
Services Latam   19.7    26.7    -26.2%   14.8    33.1%

 

Attended Services     1Q22  2Q22  3Q22  4Q22  1Q23  Chg.
1Q23 x1Q22		 
Latam (Ex Brazil)  Gross Revenue (BRL Million)  26.7   24.3   9.6   14.8   19.7   -26.0%
  Number of Services Served  89   82   80   104   95   6.7%
   Average Ticket (BRL Thousand)  299.6   296.4   119.6   142.3   207.6   -30.7%

 

·Latam gross revenue had a positive exchange rate impact between 4Q22 vs. 1Q23, due to the 11% devaluation of the Real against the Chilean Peso. Chile represents most of the Latam segment.
·In Latin America, we had a YoY retraction due to the strong revenue comparison base, arising from an oil spill response in the region during 1Q22 and 2Q22.
·The oscillation of the average ticket reflects changes in the complexity of emergencies.

 

EUROPE

 

COMPOSITION OF GROSS REVENUE
R$ million		  1Q23   1Q22   Chg.
1Q23 x1Q22		   4Q22   Chg.
1Q23 X4Q22		 
RESPONSE                         
GROSS REVENUES   627.1    350.4    79.0%   667.8    -6.1%
International   418.4    237.9    75.9%   465.3    -10.1%
Europe   56.1    47.8    17.4%   64.7    -13.3%
Subscriptions Europe   4.8    3.6    33.3%   4.7    2.1%
Services Europe   51.3    44.2    16.1%   60.0    -14.5%

 

Attended Services     1Q22  2Q22  3Q22  4Q22  1Q23  Chg.
1Q23 x1Q22		 
Europe  Gross Revenue (BRL Million)  44.2   46.7   48.1   60.0   51.3   16.1%
  Number of Services Served  5,681   5,874   5,922   5,974   5,947   4.7%
   Average Ticket (BRL Thousand)  7.8   8.0   8.1   10.0   8.6   10.9%

 

·Gross revenue increased in comparison to 1Q22 due to the start of price recovery and a marginal increase in the number of contracts. In local currency, revenues grew even more than in Reais, as the real appreciated by around 10% and 5% against Pound and Euro, respectively.
·Services Gross Revenues in 1Q23 was lower QoQ due to the large maritime occurrence in the region in 4Q22.

 

 

 

 

NORTH AMERICA

 

COMPOSITION OF GROSS REVENUE
R$ million		  1Q23   1Q22   Chg.
1Q23 x1Q22		   4Q22   Chg.
1Q23 X4Q22		 
RESPONSE                         
GROSS REVENUES   627.1    350.4    79.0%   667.8    -6.1% 
International   418.4    237.9    75.9%   465.3    -10.1% 
North America   306.5    132.2    131.8%   350.3    -12.5% 
Subscriptions North America   0.0    0.0    NM   0.0    NM 
Witt O’Brien’s   111.2    0.0    NM   168.4    NM 
Services North America   306.5    132.2    131.8%   350.3    -12.5% 

  

Attended Services     1Q22  2Q22  3Q22  4Q22  1Q23  Chg.
1Q23 x1Q22		 
North America  Gross Revenue (BRL Million)  132.2   131.3   176.5   350.3   306.5   131.8% 
  Number of Services Served  2,556   2,597   2,991   3,117   3,228   26.3% 
   Average Ticket (BRL Thousand)  51.7   50.6   59.0   112.4   95.0   83.6% 

 

·North America ex-WOB operations continue their growth trajectory. Disregarding Witt O’Brien’s revenue, in the North American region growth was 7.8% 1Q23 vs. 4Q22.
·The decrease in quarterly revenue compared to the previous quarter is due to the natural volatility of WOB's business.
·The long-term thesis of capturing a larger share of the emergency market with government funding in the US continues. We have already seen some large WOB contract sales with Ambipar Response in the corporate and government customer market.

  

NET REVENUE

 

R$ million  1Q23   1Q22   Chg.   4Q22   Chg. 
Gross Revenues   627.1    350.4    79.0%    667.8    -6.1% 
Deductions   -30.9    -28.4    8.8%    -35.5    -13.0% 
Net Revenues   596.3    321.9    85.2%    632.3    -5.7% 

 

·The variation in net revenue accompanied the evolution of gross revenue by geography, and the revenue deductions for each region. There was no significant change in the tax structure of each market, with deductions in the Brazilian market being greater than in the international market.

  

COST OF PRODUCTS/SERVICES (CASH)

 

R$ million  1Q23   1Q22   Chg.   4Q22   Chg. 
COST OF SERVICES                         
Personnel   237.6    118.0    101.4%    271.5    -12.5% 
Third parties   88.8    46.8    89.7%    69.0    28.7% 
Maintenance   19.8    6.6    198.6%    27.8    -28.7% 
Travel   17.2    4.6    273.7%    17.2    -0.3% 
Freight   1.5    1.1    27.4%    13.4    -89.2% 
Rentals   10.7    9.6    11.3%    8.6    24.7% 
Fuel   12.6    12.2    3.4%    7.5    68.7% 
Materiais   7.9    3.3    144.1%    5.2    51.9% 
Telecomunications   3.7    0.7    467.2%    4.2    -12.1% 
Marketing   3.1    0.5    485.7%    4.1    -24.6% 
Taxes   10.8    9.3    16.1%    -1.3    NM 
Others   38.4    16.3    135.9%    27.0    42.2% 
TOTAL   452.1    229.0    97.4%    454.2    -0.5% 

 

 

 

 

R$ million  1Q21   2Q21   3Q21   4Q21   1Q22   2Q22   3Q22   4Q22   1Q23 
COST OF SERVICES                                             
Net Revenue   144.3    190.3    233.4    255.6    321.9    332.6    398.1    632.3    596.3 
Personnel   57.5    73.0    91.3    96.4    118.0    120.2    137.7    271.5    237.6 
Third parties   13.4    19.8    28.8    27.7    46.8    49.5    45.1    69.0    88.8 
Maintenance   5.0    8.6    4.5    6.2    6.6    8.1    15.5    27.8    19.8 
Travel   2.2    2.4    3.8    4.3    4.6    4.6    6.7    17.2    17.2 
Freight   0.4    0.6    0.8    0.9    1.1    1.2    1.3    13.4    1.5 
Rentals   5.1    7.3    7.2    7.1    9.6    9.5    3.3    8.6    10.7 
Fuel   3.7    5.4    6.6    9.0    12.2    18.7    19.8    7.5    12.6 
Materiais   1.4    2.3    3.2    3.5    3.3    3.5    10.4    5.2    7.9 
Telecomunications   0.4    0.4    0.5    0.7    0.7    0.6    1.0    4.2    3.7 
Marketing   0.7    0.9    0.3    1.5    0.5    0.7    5.5    4.1    3.1 
Taxes   0.7    2.1    3.6    3.7    9.3    6.2    5.9    -1.3    10.8 
Others   6.8    9.2    9.0    14.4    16.3    20.8    30.5    27.0    38.4 
Total   97.5    132.1    159.4    175.3    229.0    243.6    282.8    454.2    452.1 

  

Percentage of Net Revenue

 

R$ million  1Q21   2Q21   3Q21   4Q21   1Q22   2Q22   3Q22   4Q22   1Q23 
COST OF SERVICES                                             
Net Revenue   144.3    190.3    233.4    255.6    321.9    332.6    398.1    632.3    596.3 
Personnel   39.9%    38.3%    39.1%    37.7%    36.7%    36.1%    34.6%    42.9%    39.9% 
Third parties   9.3%    10.4%    12.4%    10.9%    14.5%    14.9%    11.3%    10.9%    14.9% 
Maintenance   3.5%    4.5%    1.9%    2.4%    2.1%    2.4%    3.9%    4.4%    3.3% 
Travel   1.5%    1.3%    1.6%    1.7%    1.4%    1.4%    1.7%    2.7%    2.9% 
Freight   0.3%    0.3%    0.3%    0.3%    0.4%    0.3%    0.3%    2.1%    0.2% 
Rentals   3.6%    3.9%    3.1%    2.8%    3.0%    2.9%    0.8%    1.4%    1.8% 
Fuel   2.6%    2.8%    2.8%    3.5%    3.8%    5.6%    5.0%    1.2%    2.1% 
Materiais   0.9%    1.2%    1.3%    1.4%    1.0%    1.1%    2.6%    0.8%    1.3% 
Telecomunications   0.3%    0.2%    0.2%    0.3%    0.2%    0.2%    0.3%    0.7%    0.6% 
Marketing   0.5%    0.5%    0.1%    0.6%    0.2%    0.2%    1.4%    0.6%    0.5% 
Taxes   0.5%    1.1%    1.5%    1.4%    2.9%    1.9%    1.5%    -0.2%    1.8% 
Others   4.7%    4.8%    3.9%    5.6%    5.1%    6.2%    7.7%    4.3%    6.4% 
Total   67.6%    69.4%    68.3%    68.6%    71.1%    73.2%    71.0%    71.8%    75.8% 
Gross Margin   32.4%    30.6%    31.7%    31.4%    28.9%    26.8%    29.0%    28.2%    24.2% 

 

Costs increased by 97.4% compared to 1Q22 and decreased by 0.5% compared to 4Q22. Four components have historically represented the bulk of our costs:

 

·Personnel: monitored the growth in revenues and the effect of the acquisition of Witt O'Brien's, which has a higher cost of personnel due to the nature of highly specialized consultancy work.
·Third parties: the increase in the cost of third parties is due to the mix of operations, due to the greater use of third parties, occasionally, in North America in cases attended that required local service capacity greater than the availability of one of the Response operations.
·Maintenance: has accompanied the increase in operational assets.
·Fuel and freight: after increasing considerably over the past two years, freight and fuel prices have been gradually decreasing. The incorporation of WOB reduces the representativeness of these costs in relation to revenue, given its consulting business model.

 

 

 

 

GROSS PROFIT

 

 

 

·Gross profit grew over 1Q22. Gross margin for 1Q23 reached 24.2%, a result 4.7 pp. and 4.0 pp. lower than that registered in 1Q22 and 4Q22, respectively. The reduction in gross margin is related to the acquisition of WOB in the consolidated numbers, as it has a structurally lower margin level, and the increase in the mix of industrial services, which represent a larger fraction of North America.

 

CAPEX RESPONSE

 

In 1Q23, the addition of Fixed Assets was R$69.0 million. In Response, we invested in Brazil in vessels and helicopters adapted to emergencies, and in North America, in trucks and equipment to support growth in this market.

 

Additions to Fixed Assets
R$ million		  1Q21   2Q21   3Q21   4Q21   1Q22   2Q22   3Q22   4Q22   1Q23 
(+) Brazil   13.4    16.4    32.5    7.1    49.9    8.9    52.3    37.9    43.8 
(+) LATAM ( ex-Brazil )   3.0    0.7    2.0    2.1    0.0    1.9    0.7    4.0    1.1 
(+) Europe   0.6    0.1    2.6    2.8    3.2    0.5    2.4    2.1    1.8 
(+) North America   1.6    3.7    9.2    0.9    11.8    14.7    14.4    28.5    22.2 
Total   18.6    20.8    46.2    12.9    64.8    26.1    69.9    72.5    69.0 

 

Capex  Capex (R$ Million) 
Expansion   37.9 
Response Brazil   25.6 
Response Latam (Ex. Brazil)   0.6 
Response Europe   0.3 
Response North America   11.5 
Maintenance   31.1 
Response Brazil   18.3 
Response Latam (Ex. Brazil)   0.5 
Response Europe   1.6 
Response North America   10.7