PRESS RELEASE - Amazon S3€¦ · In Sandals International, positive impact of R$7.5 million mainly from the IFRS 16 adoption. The Company’s EBITDA in 1Q19 totaled R$134.4 million,

PRESS RELEASE

1Q19

RESULTS CONFERENCE CALL

May 13, 2019 | Monday

This conference call will be simultaneously broadcasted via webcast over the internet. Access: https://ri.alpargatas.com.br/

PORTUGUESE 08:00 am (EDT) / 09:00 am (BRT)

Phones: +55 (11) 3193-1001

+55 (11) 2820-4001

Code: ALPARGATAS

ENGLISH 09:30 am (EDT) / 10:30 am (BRT)

Phones: +55 (11) 3193-1001 +1 646 828-8246

Code: ALPARGATAS

2

Highlights of the quarter

Alpargatas’ revenue grows 9% and reaches R$940 million in the first quarter All Company’s business posted higher net revenue in Brazil and Havaianas international operations were up

16.1% from January to March on a year-on-year basis

Net revenue: Alpargatas closed the first quarter of 2019

with net revenue of R$940.2 million, a 9% increase in the

company’s managerial focus – excluding Topper and

Textile operations in Argentina, which are going through

corporate restructuring.

The Company recorded growth in all its business in Brazil

(Havaianas Brazil, Mizuno and Osklen), in addition to

expanding Havaianas international operations – up 16.1%

on a year-on-year basis. Havaianas’ good international

performance enhances the Company’s global strategy,

particularly in the APAC (Asia and Pacific) and EMEA

(Europe, Middle East and Africa) regions. Strategic

partnerships, such as Pull & Bear and apparel expansion,

are key to create brand desirability combined with the online sales growth and the expansion of touch points in Asia were

significant for the results.

Same store sales (SSS) in Brazil reached a two-digit growth, evidencing the strengthening

of our direct sales strategy and the wide acceptance of a greater value added mix.

The first quarter of 2019 was also marked by the successful Havaianas summer collection,

and the launch of Osklen new collection and Mizuno’s Urban casual line. Therefore, Sandals and Osklen have increased

their share in total business.

Gross Profit (excluding Topper and Textile operations in Argentina): Up 8% in 1Q19, driven by the higher share of Sandals

International in result, despite the higher cost of rubber compared to 1Q18, which was mostly mitigated by gains of

productivity and management of costs.

Recurring EBITDA: Consolidated recurring EBITDA, excluding Topper and Textile operations in Argentina, rose by 7%. The

EBITDA margin was basically flat (-30 basis points) on a year-on-year basis, as a result from the efficient SG&A

management.

3

Highlights of the quarter

Executive Digital Channels Office Set Up: On February 1, 2019, the Company brought in

Fernanda Romano as the Executive Digital Channels Officer, reporting to Alpargatas’s CEO. Ms.

Romano has a bachelor’s degree in Business Administration with major in Public Administration

from FGV. Co-founder of the Malagueta Group, co-founder of Coletivo WeLove, and a member of

Creative Social, she has worked for agencies such as the Havas Group, DM9DDB, Lowe, and Naked

Communications. She was also short-listed by AdAge as one of the 100 most influential women in

world communication in 2012. Ms. Romano has resided in Brazil, Spain, England and currently

lives in the U.S., always working as a Creation Officer in marketing and advertising for top clients

such as Kellog’s, Nestlé, De Beers, Cadbury, Reckitt Benckinser, Itaú, Ambev, and the Baumgart

Group in the retail segment.

Osklen’s New CEO: Leandro Medeiros took over as Osken’s CEO as from March 18, 2019,

reporting to the Company’s CEO. Mr. Medeiros has a bachelor's degree in Business Administration

from UFRJ, a Master’s degree in Retail from Coppead UFRJ, and has specialized in Strategic

Marketing and Communications from Kellogg School of Management. With a career spanning

over 20 years, he has held strategic positions in renowned companies such as Nestlé, Diageo,

Reckitt Benckiser, and AB Inbev in a number of countries, among them Germany, Spain, the United

Kingdom, and Singapore, in addition to Brazil. He has wide experience in building up international

brands, communication, innovation, sales, trade marketing and P&L management in both mature

and emerging markets.

New Human Resources Officer: Beginning April 1, 2019, José Roberto Daniello has taken over as

Human Resources Officer, reporting to Alpargatas' CEO. Mr. Daniello is a chemical engineer, holds

two MBAs, and is a certified Brewmaster. He has developed his career at AB InBev for over 23

years, where he worked at the Supply Chain, Sales, Solutions and People departments and had the

opportunity to work in 10 different countries holding strategic positions in Human Resources,

including the global leadership of the Talent and Development departments. Mr. Daniello was a

member of the team that redesigned ABI with a growth focus, and took part in the people

integration process at SABMiller. Beforehand he worked as the VP of People for operations in

India, Southeast Asia and at the Global Training Center of that company.

Capital Increase and Bonus Shares: Also on March 20, 2019, the proposed capital increase of the

Company’s capital stock by R$851,502,769.03 was approved, by using the amount allocated to the

Fiscal Incentive Reserve from 2008 to 2015 (partial), with the issue of 117,612,445 new shares, of

which 60,402,138 are common and 57,210,307 are preferred shares, including treasury shares.

Bonus shares was carried out at the proportion of 25 shares for each lot of 100 shares held on

March 20, 2019, and the cost assigned to bonus shares was R$7.239904 per share.

4

Consolidated performance of the 1st quarter of 2019

R$ million 1Q19 1Q18 Δ (%)

Net Revenue 940.2 902.1 4.2%

Brazil 611.0 572.9 6.7%

Sandals International 208.0 179.2 16.1%

Argentina 121.2 150.0 -19.2%

Gross Profit 426.4 408.8 4.3%

Gross margin 45.4% 45.3% +0.1 pp

Brazil 268.3 263.8 1.7%

Gross margin 43.9% 46.1% -2.2 pp



Argentina 16.5 28.6 -42.4%

Gross margin 13.6% 19.0% -5.4 pp

EBITDA 134.4 169.1 -20.5%

EBITDA margin 14.3% 18.7% -4.4 pp

Brazil 86.9 81.1 7.1%

Margin 14.2% 14.2% 0 pp


Margin 24.2% 23.4% +0.8 pp

Argentina -2.8 46.0 n/a

Margin n/a 30.6% n/a

Non-recurring charges -2.3 39.8 n/a

Recurring EBITDA 136.7 129.3 5.8%

Recurring EBITDA margin 14.5% 14.3% +0.2 pp

Recurring Brazil 84.6 82.6 2.5%

Recurring margin 13.9% 14.4% -0.5 pp

Recurring Sandals International 42.8 36.8 16.4%

Recurring margin 20.6% 20.5% +0.1 pp

Recurring Argentina 9.4 9.9 -5.0%

Recurring margin 7.7% 6.6% +1.1 pp

Consolidated Net Income 43.5 112.9 -61.5%

Net margin 4.6% 12.5% -7.9 pp

5

Net Revenue

Net revenue increased 4.2% in 1Q19 on a year-on-year basis, driven by the growth of all business in Brazil

(Havaianas Brazil, Mizuno, Osklen) and by the 16.1% increase in Havaianas international operations (driven by

the appreciation of the US dollar and euro against the Brazilian real), even if we consider the negative impact

of foreign exchange variation/monetary adjustment in Argentina.

As established by IAS 29 (Financial Reporting in Hyperinflationary Economies), as from July 2018 Argentina has

been considered a highly-inflationary economy. Therefore, financial statements were restated by changing the

overall purchasing power of the currency by applying a general price index.

Gross Profit

Consolidated gross profit in 1Q19 was up 4.3%, with gross margin going up 11 basis points, as a result of the

management of the Company’s costs and the increased share of Sandals International in result, despite the

higher costs of rubber compared to 1Q18.

Selling Expenses

Selling expenses, including expenses on freight, advertising, marketing, commissions, royalties and licenses,

totaled R$253.2 million in 1Q19. This amount accounted for 26.9% of net revenue, or 22 basis points, basically

stable on a year-on-year basis. This 22 basis-point increase was mainly driven by the better management of

marketing expenses in 1Q19.

General and Administrative Expenses

G&A expenses totaled R$59.0 million in the first quarter of 2019, or 6.3% of net revenue, an annual increase of

22 basis points, basically stable from 1Q18.


Net Revenue 940.2 902.1 4.2%


Gross Profit 426.4 408.7 4.3%


6

EBITDA

Consolidated Recurring EBITDA for 1Q19 increased 5.8%, with the margin up 22 basis points from the same

period of 2018.

There was a R$15.7 million positive impact in 1Q19 from the adoption of IFRS 16 according to which leases are

now recognized in the lessee’s balance sheet, with a liability being recorded for future payments, and an asset

for the right to use, thus generating amortization and financial expenses, which in turn increased EBITDA.

Main non-recurring items for the first quarter were, as follows:

In Brazil, the net impact of R$2.4 million with positive effects arising from the revenue from the sale of

the Botas 7 Léguas business and the adoption of IFRS 16, and negative effects from advisory services

expenses;

In Argentina, the negative impact of R$12.2 million from inflation adjustments;

In Sandals International, positive impact of R$7.5 million mainly from the IFRS 16 adoption.

The Company’s EBITDA in 1Q19 totaled R$134.4 million, down 20.5% year-on-year. However, in 1Q18 assets in

Argentina were sold, bringing in a positive impact of R$45.6 million in that quarter.

IFRS 16



Recurring EBITDA margin 14.5% 14.3% +0.2 pp


(=) Consolidated Net Income 43.5 112.9 -61.5%

Income tax and social contribution taxes 23.8 17.0 40.3%

Financial Result 25.0 14.1 76.4%

Depreciation and amortization 26.5 25.1 5.5%

IFRS16 amortization 15.7 - n/a

(=) EBITDA 134.4 169.1 -20.5%


Other non recurring revenues (expenses) -2.3 39.8 n/a

Brazil 2.4 -1.5 n/a

Argentina -12.2 36.1 n/a

International 7.5 5.2 45.1%

R$ thousand

1Q19

reported

IFRS16

Adjustment

1Q19

Proforma

Net revenue from sales 940,227 940,227

Cost of goods sold -513,802 -320 -514,122

Selling, admnistrative and general expenses -312,202 -2,349 -314,551

Other operating income, net -21,971 -21,971

Financial results -24,964 5,282 -19,682

Income tax and social contribution -23,810 -213 -24,023

Net income 43,478 2,400 45,878

EBITDA 134,449 -15,714 118,735

7

Net Income

Net income for the first quarter of 2019 totaled R$43.5 million, with a 4.6% net margin. The most significant

variations in the consolidated net income for 1Q19 were as follows:

- R$34.5 million in EBITDA, mainly due to the positive effects of IFRS 16 adoption and the negative

effects of the sale of the head office building and the recovery of taxes in Argentina

+ R$21.5 million related to inflation adjustment in Argentina on financial result;

- R$27.2 million in financial result and exchange variation (ex-IFRS16 financial expense of R$ 5,3

million);

- R$2.6 million from the IFRS 16 adoption, as explained above.


Consolidated Net Income

(Continuing Operations)43.5 112.9 -61.5%

Net margin 4.6% 12.5% -7.9 pp

8

CAPEX In the first three months of 2019, consolidated investments in the support/expansion of Alpargatas’ operations

(CAPEX) totaled R$13.7 million. Out of this amount, R$7.6 million were invested in the operations

support/maintenance, whereas R$6.1 million were allocated to expand retail operations and production

efficiency gain and supply chain projects.

Net Financial Position On March 31, 2019, Alpargatas recorded a positive net financial position of R$20.3 million, arising from a cash

balance of R$601.4 million (operating cash generation totaled R$237.2 million in the 12-month period ended

March 2019) and indebtedness of R$581.0 million, as follows:

R$360.7 million (62% of total) due in the short term, of which R$146.2 million in local currency. Short-

term foreign currency debt amounted to R$214.5 million, of which R$35.1 million with swaps for

Brazilian Reais, aimed mainly at financing working capital for foreign subsidiaries. It is worth

mentioning that the Company’s cash balance of R$119.5 million is in foreign currency;

R$220.3 million (38% of total) due in the long term, with total amount in local currency.

9

Performance by business for the first quarter of 2019

Brazil

Operational performance:

Sandals Brazil: The volume of Havaianas in Brazil increased by 3.2% in 1Q19 (Havaianas Sandals/Dupé +3.2% and

expansion of Havaianas Brand + 0.4%), driven by the performance of the direct distribution channel. Compared to 1Q18,

net revenue increased due to a richer mix of channels and also by the price rise in 2Q18 in connection with the launch of

the new sandals collection. In 1Q19, the direct consumer channels, rose by 14.1% in Havaianas mono-brand stores on the

basis of same store sales (SSS) concept.

Sporting Goods - Mizuno: The 14.7% decrease in the sports footwear volume was driven by the sales of out-of-line

products falling compared to 1Q18. The Company focused on profitability, with increased volume of top-level products,

which led to higher one-digit net revenue in1Q19 on a year-on-year basis. Revenue from regional clients posted a two-

digit growth in the same period. It is worth mentioning that Mizuno ecommerce is already the best store in terms of

revenue, as compared to the physical outlet stores. The Mizuno outlet store opened in Fortaleza is also a highlight.

Osklen: Net revenue increased 23.3% in 1Q19 on a year-on-year basis. Highlights: (i) the new collection was brought

forward; (ii) the same store concept (SSS) increased for the 7th

consecutive quarter, with this growth at 16.7% year-on-year.

Gross Profit and Gross Margin: In Brazil, gross profit rose 1.7% in the quarter; however, margin fell by 220 basis points, as

a result of the higher cost of rubber year-on-year.

Recurring EBITDA: Main non-recurring items for the first quarter totaled R$ +2.4 million in Brazil, with positive effects

arising from revenue from sales of the Botas 7 Léguas business and the IFRS 16 adoption, and negative effects arising from

advisory services expenses.

(unit) 1Q19 1Q18 Δ

Number of stores 537 526 11

Havaianas 447 435 12

Franchises 441 431 10

Own 6 4 2

Osklen 75 79 -4

Franchises Brazil 19 22 -3

Own Brazil 53 53 0

Franchises overseas 1 1 0

Own overseas 2 3 -1

Mizuno 4 1 3

Outlets 11 11 0

(thousand pairs/pieces) 1Q19 1Q18 Δ (%)

Total volume 50,517 49,231 2.6%

Havaianas + Dupé 48,911 47,391 3.2%

Havaianas brand extension 282 281 0.4%

Footwear (sports & professional) 417 488 -14.7%

Others 262 500 -47.7%

Apparel (sport) 270 230 17.6%

Osklen (footwear, apparel & accessories) 376 342 9.9%

(R$ million) 1Q19 1Q18 Δ (%)

Net Revenue 611.0 572.9 6.7%

Gross Profit 268.3 263.8 1.7%

Gross Margin (%) 43.9% 46.1% -2.2 pp

EBITDA 86.9 81.1 7.1%

Margin EBITDA (%) 14.2% 14.2% 0 pp


Recurring margin (%) 13.9% 14.4% -0.5 pp

10

Sandals International

Operational performance: Foreign markets increased by 2.2% in volume in 1Q19, mainly driven by increased sales in

the EMEA and APAC regions.

EMEA (Europe and Middle East): Net revenue grew in terms of local currency in the quarter, in spite of this being a

seasonally weak quarter. It also recorded expansion in the markets served through Distributors (+17%) and ecommerce

(41%). In direct markets, noteworthy was the above-expected performance in the United Kingdom, where clients stockpiled

due to Brexit-related uncertainties.

North America: In 1Q19, a low season period in this region, revenue in local currency fell mainly due to the large accounts

channel and lower volume in off-price channels, which was partially offset by the increase in e-commerce.

LATAM (Latin America) & Africa: The Latin America operation in 1Q19 was impacted by the increase in the Colombia

operation and by the decision to reduce volume in less profitable channels (Paraguay).

APAC (Asia Pacific): The 78.7% increase in net revenue year-on-year was mainly driven by a better sell-out in the

Philippines, South Korea and Japan operations.

Net revenue: Net revenue in Reais of the Sandals International business was up 16.1% year-on-year, driven by a higher

volume of sales and boosted by the appreciation of the US dollar and euro in the period, in spite of the fall in US-dollar

revenue in the LATAM region.

Gross Profit and Gross Margin: Gross margin increased in 1Q19 driven by a higher market share of more profitable

regions in the total Sandals International business.

EBITDA and EBITDA Margin: The 1Q19 result was boosted by the exchange variation in the period and by the effects of

the IFRS 16 adoption, even with the expenses on new international structures incurred.

(unit) 1Q19 1Q18 Δ

Number of Havaianas stores 204 195 9

Franchises 152 151 1

Own 52 44 8

(thousand pairs/pieces) 1Q19 1Q18 Δ (%)

Total volume 7,471 7,310 2.2%

Havaianas + Dupé 7,336 7,137 2.8%

Havaianas brand extension 135 174 -22.4%

(R$ million) 1Q19 1Q18 Δ (%)

Net Revenue 208.0 179.2 16.1%

Variation in local currency

EMEA - euro 7.1%

EUA - dollar -9.5%

LATAM - dollar -19.6%

APAC - dollar 78.7%

Gross Profit 141.7 116.4 21.7%

Gross Margin (%) 68.1% 65.0% +3.1 pp

EBITDA 50.4 42.0 19.9%

Margin EBITDA (%) 24.2% 23.4% +0.8 pp


Recurring margin (%) 20.6% 20.5% +0.1 pp

11

Argentina

Operational performance:

Sporting goods + Retail: In spite of the fall in volume, the adjustments carried out in 3Q18 and 4Q18 led to efficiency

gains through control of costs and expenses. Price adjustments to products sold also partially offset the fall in volume.

Textile: In 1Q19 volume fell by 23.1% driven by a sharp market slump caused by lower consumption, which was escalated

by the increased imports of apparel goods. Retailers/ clothing manufacturers remain in crisis, with some companies filing

for reorganization. The competition environment was highly fierce in terms of prices and business conditions in view of a

depressed market.

(unit) 1Q19 1Q18 Δ

Number of stores 26 25 1

Topper Argentina 10 10 0

Outlets 16 15 1

(thousand pairs/pieces) 1Q19 1Q18 Δ

Total volume 3,518 4,458 -21.1%

Footwear 1,091 1,428 -23.6%

Apparel 444 450 -1.3%

Textile (km) 1,983 2,579 -23.1%

(R$ million) 1Q19 1Q18 Δ (%)

Net Revenue 121.2 150.0 -19.2%

Gross Profit 16.5 28.6 -42.4%

Gross Margin (%) 13.6% 19.0% -5.4 pp

EBITDA -2.8 46.0 n/a

Margin EBITDA (%) n/a 30.6% n/a

Recurring EBITDA 9.4 9.9 -5.0%

Recurring margin (%) 7.7% 6.6% +1.1 pp

12

Independent Auditors In accordance with CVM Instruction 381/03, Alpargatas S.A. informs that, in the period from January to March 2019, in

addition to the audit of the individual and consolidated financial statements of the Company and its subsidiaries, it

contracted out the following services to KPMG Auditores Independentes:

• Identification of potential impacts from the IFRS 16 adoption.

For this service, fees of approximately R$0.1 million were disbursed. The provision of services did not represent conflicts of

interest, as it is permitted by the regulatory body and, consequently, did not affect the independence and objectivity

required for the performance of the audit work.

Representation of the Executive Board In accordance with Article 25, paragraph 1, item 5 of CVM Instruction No. 480/09, the Executive Board hereby represents,

to the best of its knowledge, that it has reviewed, discussed and agreed with the accounting information of Alpargatas S.A.

for the period from January to March 2019 and with the independent auditor’s review report on the individual and

consolidated financial statements.

Audit Committee Alpargatas’ Audit Committee has a fundamental role in managing the Company, contributing to ensure the stockholders’

trust by overseeing internal controls, monitoring risks, and following up the entire information preparation and reporting

process.

São Paulo, May 10, 2019

Board of Directors

Investor Relations

Julian Garrido Del Val Neto

Carlos Augusto Biehl

Felipe Lucas Fontes

Fernanda Yuri Shiraishi

Contact information

Email: [email protected]

Phone: +55 11 4569-7397

13

CONSOLIDATED BALANCE SHEET

(in thousands of Brazilian reais)

2019 2018 2019 2018

CURRENT ASSETS CURRENT LIABILITIES

Cash and banks 131,409 118,250 Suppliers 353,458 369,146

Tempory cash investment 458,779 591,695 Loans and financing 360,714 257,292

590,189 709,945 Leasing liabilities 55,972 -

Debt reestructuring agreements 1,675 3,051

Payroll and related charges 129,621 152,480

Trade accounts receivable (net of provisions) 902,773 813,235 Reserve for contingencies 10,921 16,214

Provision for doubtful receivables (55,757) (54,299) Provision for income and

847,016 758,936 social contribuition taxes 15,821 15,273

Taxes payable 31,529 13,084

Interest on capital and

Inventories 739,341 749,371 dividends payable 3,517 135,179

Other receivables 33,133 28,317 Other payable liabilities 131,522 101,924

Prepaid expenses 25,869 39,018 1,094,750 1,063,643

Recoverable taxes 75,556 65,587

873,899 882,293 LONG-TERM LIABILITIES

Loans and financing 220,331 341,378

Leasing liabilities 271,412 -

Debt reestructuring agreements 6,791 12,938

TOTAL CURRENT ASSETS 2,311,104 2,351,174 Provision for income and social contribuition taxes 69,597 51,328

Reserve for contingencies 20,115 40,038

Other payable 26,242 27,667

614,488 473,349

LONG-TERM ASSETS

SHAREHOLDERS' EQUITYTrade accounts receivable 2,600 - Capital 1,500,000 648,497

Tempory cash investment 11,204 - Capital reserves 174,509 172,799

Recoverable taxes 199,081 30,776 Treasury shares (64,248) (64,248)

Deferred income and social contribuition taxes 86,325 115,891 Profit reserves 902,106 1,554,717

Escrow deposits 44,700 23,937 Equity assessment (89,002) (151,698)

Other receivables 17,751 51,269 Equity of controlled shareholders 2,423,365 2,160,067

361,661 221,873

Minority interest 76,272 76,250

Investments 2,326 2,245 2,499,637 2,236,317

Property, plant and equipment 762,131 709,389

Asset right of use 324,778 -

Intangible assets 446,875 488,628

1,536,110 1,200,262

TOTAL NON-CURRENT ASSETS 1,897,771 1,422,135

TOTAL ASSETS 4,208,875 3,773,309 TOTAL LIABILITIES 4,208,875 3,773,309

Book value

per share (R$) 4.19 4.66

ASSETS LIABILITIES

14

CONSOLIDATED INCOME STATEMENT

(in thousands of Brazilian Reais)

1T19 ΔV(%) 1T18 ΔV(%) ΔH(%)

Net Sales 940,227 100.0% 902,084 100.0% 4.2%

Cost of sales (513,802) -54.6% (493,249) -54.7% 4.2%

Gross Profit 426,425 408,835 4.3%

gross margin 45.4% 45.3%

Operating Income (Expenses) (334,172) -35.5% (264,829) -29.4% 26.2%

Selling (253,153) -26.9% (244,397) -27.1% 3.6%

General and administrative (53,942) -5.7% (49,891) -5.5% 8.1%

Management fees (5,107) -0.5% (4,927) -0.5% 3.6%

Amortization of intangible charges (8,239) -0.9% (8,011) -0.9% 2.8%

Other operating Income (expenses), net (13,731) -1.5% 42,396 4.7% -132.4%

EBIT - Operating Results 92,253 144,006 -35.9%

operating margin 9.8% 16.0%

Financial Result (2,616) -0.3% (8,932) -1.0% -70.7%

Exchange variation (23,601) -2.5% (5,449) -0.6% 333.1%

Hedge operations 1,251 0.1% 232 0.0% 438.8%

Operating Income 67,287 7.2% 129,857 14.4% -48.2%

Income and social contribution taxes (23,810) -2.5% (16,976) -1.9% n/a

Consolidated net income 43,477 4.6% 112,880 12.5% -61.5%

Net Income from controlling shareholder 53,083 5.6% 114,072 12.6% -53.5%

Minority Interest (9,605) -1.0% (1,192) -0.1% 705.8%

EBITDA - R$ million 134.4 169.1 -20.5%

EBITDA margin 14.3% 18.7%

15

STATEMENT OF CASH FLOWS

(in thousands of Brazilian Reais)

CASH FLOW FROM OPERATING ACTIVITIES 3/31/2019 03/31/2018*

Cash from operating activities 131,043 159,597

Net income for the period 43,478 112,880

Depreciation and amortization 26,483 24,820

Income (loss) from disposal/write-off of property, plant and equips. 1,851 2,350

Interest and Monetary and foreign exchange variation 6,560 9,399

Provisions for tax, civil contingencies and labor claims 6,709 5,212

Provisions for income tax and social contribution 13,220 1,365

Deferred income and social contribuition taxes 10,590 (6,184)

Allowance (reversal of) for doubtful accounts (444) 6,274

Provision for (reversal of) inventory losses 882 3,713

Unrealized gains/losses on derivative transactions (1,252) (232)

Stock option plan granted 1,710 -

Correction of legal deposits 729 -

Provision for success fees (469) -

IFRS 16 taxes 5,282 -

IFRS 16 depreciation of right of use 15,714 -

Changes in assets and liabilities (13,190) (2,023)

Trade accounts receivable 108,929 135,243

Inventories (29,344) (63,064)

Prepaid expenses (3,495) (27,783)

Taxes recoverable 6,525 2,394

Trade accounts payable (77,974) (12,866)

Taxes payable (6,431) (15,438)

Payroll and social charges (16,851) 22,345

Payment of income and social contribuition taxes (2,235) (91)

Operations with derivatives 1,382 (265)

Amortization of loans and financing (9,219) (9,371)

Contingencies (2,445) (5,459)

Other 17,968 (27,668)

NET CASH - OPERATING ACTIVITIES 117,853 157,574

CASH FLOW FROM INVESTING ACTIVITIES

Acquisition of property, plant and equipment and intangible assets (14,599) (9,804)

Short-term investments (136,750) (47,401)

Redemption of Financial Investments 29,129 113,986

NET CASH - INVESTING ACTIVITIES (122,220) 56,781

CASH FLOW FROM FINANCING ACTIVITIES

Loans and financing raised 171,427 52,662

Amortization loans and financing - Principal (197,701) (191,471)

Payment of dividends and interest on equity (18) (4,917)

Amortization through debt restructuring of subsidiary (233) (4,581)

Leasing payment (13,101) -

Leasing taxes payment (5,282) -

NET CASH - FINANCING ACTIVITIES (44,908) (148,307)

Exchange gains (losses) on cash and cash equivalents (3,300) 554

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (52,575) 66,602

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 518,782 629,238

CASH AND CASH EQUIVALENTS AT END OF PERIOD 466,207 695,840

Documents

PRESS RELEASE - Amazon S3€¦ · In Sandals International, positive impact of R$7.5 million mainly from the IFRS 16 adoption. The Company’s EBITDA in 1Q19 totaled R$134.4 million,