Investor Presentaiton
118
FINANCIAL CAPITAL
2021 INTEGRATED ANNUAL REPORT
New brands in M. Dias Branco portfolio
VERTICAL
INTEGRATION
The Company produces
most part of its two main
raw materials used for the
production of its products. In
2021, 99.7% of all wheat flour
and all vegetable shortening
used in the production process
were manufactured in-house
(98.5% and 99.3% in 2020,
respectively).
GROSS PROFIT
In 2021 versus 2020, gross profit
in nominal amounts decreased
7.5% and gross margin retracted
4.6 pp, from 32.8% in 2020
to 28.2% in 2021. The drop
reflects the rise in raw material
prices in dollars, the 14.3%
drop in volumes sold and the
depreciation of Brazilian real
against the dollar.
OPERATING
EXPENSES
Comparing 2021 versus 2020,
operating expenses showed
8.0% growht in absolute
terms. However, selling and
administrative expenses
decreased 7.1% and 4.6%
respectively, with lower
representation on net revenue,
evidencing the effectiveness
of the gains from Multiplique
project and short-term
initiatives presented in early
2021.
Additionally, we recorded a
favorable non-recurrent result of
R$ 87.5 million (R$ 73.4 million
Wheat flour
Shortening
0.3%
0.7%
FRONTERA
FRONTERA
0.3%
1.5%
99.7%
99.3%
99.7%
98.5%
2021
2020
2021
2020
Own Production
External Source
Gros Profit (R$ million)
and Gross Margin (%)
32.8%
28.2%
2,381.0
2,202.0
28.6%
31.4%
26.8% 27.8%
26.2%
685.5
549.8
566.7
487.2
400.0
Gross Profit
Gross Margin
4Q20 1Q21 2Q21 3Q21 4Q21
2020 2021
Operating Expenses (R$ million)
2021
% NR
2020
% NR
HA%
Sales*
1,400.9
17.9% 1,508.6
20.8%
General and
Administrative
Donations
242.8
3.1% 254.4
3.5%
Tax
27.1 0.3%
30.8 0.4%
22.2 0.3%
32.0 0.4%
22.1%
-3.8%
Depreciation and
amortization
Other oper. exp./
(rev.)
102.4
1.3%
83.1 1.1%
23.2%
HA -%
NR
-7.1% -2.9 p.p.
-4.6% -0.4 p.p.
O p.p.
O p.p.
0.2 p.p.
10.3
Total
1,793.7
-0.1% (239.4) -3.3%
23.0% 1,660.9
22.9%
8.0%
-95.7% -3.4 p.p.
0.1 p.p.
*Salaries and benefits, freight and other marketing, sales force and logistics expenses.
Note: In the Statement of Profit or Loss, depreciation and amortization expenses were
included in the respective selling and administrative expenses, and tax expenses were
added to other net expenses (revenues). For more information, see Note 29 of the
financial statements for the year ended December 31, 2021.
of income with extemporaneous
tax credits, R$ 9.9 million with
adjustment of the acquisition
value of Piraquê, and R$ 4.2
million with other recoveries)
and R$ 47.9 million of non-
recurring expenses (R$ 41.5
million with restructuring,
R$ 3.5 million with covid-19
expenses and R$ 2.9 million with
Latinex).
In 2020, R$ 348.5 million in
revenue from extemporaneous
tax credits and R$ 44.4 million
in non-recurring expenses were
recognized, influencing the
change between 2020 and 2021.
TAX INCENTIVES
(ICMS)
GRI 201-4
Tax incentives (ICMS) are
transferred to the result in
compliance with CPC 07 and
IAS 20- Government Subsidies.
Most of them are calculated
based on the amount of ICMS
computed in the production
cost, and allocated in the Fiscal
Year Income Statement, below
the cost of goods sold. In 2021,
the amount recognized by the
FIT FOOL
FIT FOOD
FIT FOOD
VEGGIE CHIPS
VEGGIE CHIPS
yrrells Tyrrells
salt &
MAPLE
SYRUP
Company was R$ 436 million (R$
391.8 million in 2020).
As of March 2021, the Company
was also entitled to Fundopem
(Fundo Operação Empresa do
Estado do Rio Grande do Sul), a
partnership instrument aimed
at promoting the social and
economic development of the
State of Rio Grande do Sul. Thus,
in 2021, the amount of R$ 5.8
million was recognized in other
operating income.
FINANCIAL RESULT
In 2021, the Company recorded
a negative financial result in
Financial Results (R$ million)
FX Variation
Islack truffle
the amount of R$ 19.8 million,
versus a positive result of R$ 81
million in 2020.
The change was mainly
influenced by the increase in
financial expenses with interest
and inflation adjustment on
debentures issued in 1Q21, in
addition to the drop in financial
revenues with the lower inflation
adjustment on extemporaneous
credits, in contrast to the
increase in income from
financial investments, as a result
of the hike
in CDI.
2021
2020
HA%
Financial revenues
166.4
182.3
-8.7%
Financial expenses
(186.1)
(92.5)
n/a
(52.4)
(168.6)
-68.9%
Losses / gains on derivatives
63.7
172.7
-63.1%
Changes in fair value of financial
(11.4)
(12.9)
-11.6%
instruments
Total
19.8%
81.0
-124.4%View entire presentation