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Financial and Operational Historical Data
 
Modeling Guide

Gross Revenue

The main activity of Camil is the processing, distribution and sales of rice, beans, sugar and canned fish. In addition, the Company also process, distribute and sell other grains, including peas, chickpeas, lentils, soybeans, yellow and white hominy, popcorn and soy protein. In a non-representative matter, the Company also generates electricity from rice husk, as well as sells rice oil, olive oils and provides irrigation, storage and drying services for grains.

The historical data of the Company’s gross volumes and prices of rice, beans, sugar and canned fish can be found in the spreadsheets at the beginning of this section.

The Company conducts its operations and reports its results in two segments: (i) Brazilian Food Products Segment: includes the operations carried out by the units established in Brazil, in grain, fish, sugar and other revenues; and (ii) International Food Products Segment: includes the operations carried out by the units established in Uruguay, Chile and Peru in the grain segment. In the Brazilian Food Segment, a substantial part of the sales is from the Brazilian domestic market, while in the International Food Segment, a large part of the sales comes from exports through our Uruguayan subsidiary Saman.

Taxes on sales and returns and rebates

The ICMS is a state sale tax and is levied on our gross sales revenue at rates ranging from 0.0% to 20% according to the type of product and the State in which the product is sold. In the last two fiscal years ended February 28, 2021 and February 29, 2020, sales taxes accounted for 14% of gross revenues.

Returns consist of the products that we sell to our customers and returns in case of low quality or after the validity expiration. The rebates consist of the discounts we grant, on a case-by-case basis, only to our customers, according to negotiations that are normally based on the volume of products sold, and quality and longevity of the relationship with each client. In the last two fiscal years ended February 28, 2021 and February 29, 2020, discards and rebates accounted for approximately 7% of gross revenue.

Net Revenues

The net price history by segment can also be found in the spreadsheets for modeling net revenue. In view of the net operating revenue, the Company depends mainly on activities carried out in Brazil, with the Company’s dependence on activities carried out abroad being lower.

In recent fiscal years, revenues from sales in the Brazilian Food Segment represented approximately 70% of net sales and services revenue, while revenues from sales in the International Food Segment represented approximately 30% of net sales and services revenue.

Below is a breakdown of the dynamics by category:

Brazilian Food Products Segment:

Grains

In recent fiscal years, the volume of grains in Brazil represented approximately 40% of the total. The Company’s main grain brands, in terms of volume, include Camil and some combat brands with regional relevance, such as Namorado (from December 2018, with the conclusion of the acquisition of SLC Alimentos), Pop, Príncipe, Carreteiro and Tche.

  • Rice

In recent fiscal years, the volume of rice in Brazil represented approximately 35% of the total.

The rice harvest takes place once a year, between the months of February and May, according to the agricultural calendar shown below. The Company processes a variety of different types of rice to attract a greater number of consumers and has a long-term relationship with rice suppliers with daily purchases at market prices, allocating commodity price risks throughout the year to producers.

 

  • Beans

In recent fiscal years, the volume of beans represented approximately 5% of the total.

The beans have three crops a year, which are harvested in March, August and November. The first harvest is known as the water harvest due to the high rate of rainfall. The planting of this crop in the Center-South region goes from August to December and in the Northeast, from October to February. The second is called the dry season, with planting carried out from December to March. The third, in turn, is the irrigated crop, as it refers to the crop of irrigated beans, with planting being concentrated in the Center-West and Southeast regions, from April to June.

  • Other grains

Among the other grains sold, the Company has special grains, rice crackers, ready to use products and other high added value products. The special grains are composed of peas, chickpeas, lentils, corn, soy and hominy. These products, despite having a very positive margin, are not representative in revenues, due to its volatility of supply. The rice cookie is the product with the highest growth in revenue in the Company, being produced in two plants.

The ready to use products consist on processed foods and divided into convenience products and preserves. Among the foods of the convenience line, the Company produces 5 types of beans (Carioca, Black, White, Frosty and Cowpea). The soy protein line is only sold and distributed by the Camil brand. The Company has a strategic partner and does not operate in the production stage.

  • Sugar

In recent fiscal years, the volume of sugar represented approximately 25% of the total.

Sugar is supplied through a long-term supply contract with pre-agreed volumes and market prices with a strategic supplier. The União brand is also present in the segments of organic sugar, sucralose sweetener, special sugar for cooking, dough for cakes, among others.

  • Canned fish

In recent fiscal years, the volume of fish represented approximately 2% of the total.

The Company has canned fish processing strategically located in Navegantes, Santa Catarina. Additionally, the Company produces sauces and pâtés derived from tuna and sardines for sale. The supply of fish for sale in the local market is done by a fragmented supplier base and supplemented by imports. The Company’s main fish brands are “Coqueiro” (main brand) and “Pescador” (value pricing brand).

  • Pasta

In 2021, Camil completed the acquisition of Santa Amália. Leader in the pasta segment in Minas Gerais, Santa Amália joined the Camil Alimentos brand portfolio at the end of 2021, introducing the Company to the pasta category in Brazil. The 2022 fiscal year (which ends in February 2023) will be the first full fiscal year to record category volumes and results for the Camil group.

  • Coffee

In 2021, Camil announced its entry into the roasted and ground coffee market in Brazil, with the Café Bom Dia and Seleto brands (value pricing brands) and the launch of coffee with the highly renowned União brand. The launch and start of the coffee operation took place at the end of March 2022, with production strategically located in Varginha (MG). The 2022 fiscal year (which ends in February 2023) will be the first full fiscal year to record category volumes and results for the Camil group.

International Food Products Segment

  • Uruguay

In the last fiscal years ended, the volume from Uruguay represented approximately 25% of the total. Saman, the Uruguayan leader in rice exports, in addition to rice sells rice biscuits, sweet and savory, having in its portfolio vegetable oil and by-products such as rice bran and broken rice. In 2022, the Company began the strategy of diversifying categories for international operations, with the entry into the healthy products market in Uruguay.

  • Chile

In Chile, in the last fiscal years ended, the volume represented approximately 4% of the total. With the Tucapel and Banquete brands, the Chilean operation is geared towards serving the local market. Tucapel works with different types of products in addition to the flagship, rice. Among them, vegetables (beans, peas, chickpeas and lentils), risottos and rice crackers.

  • Peru

In the last fiscal years ended, the volume from Peru represented 4% of the total. In Peru, the Company is present with Costeño, through the sale of several products, the main ones being white and special rice.

  • Equador

In 2021, Camil announced its entry into Ecuador, leading the sales category of aged rice in the country with the Rico Arroz brand by the company Dajahu. The 2022 fiscal year (which ends in February 2023) will be the first full fiscal year to record category volumes and results for the Camil group.

Cost of Sales and Services

The main inputs used in the production process of the Company and its subsidiaries are agricultural commodities, whose prices fluctuate due to public policies for agricultural promotion, seasonality of crops and weather effects. Our costs of sales and services therefore comprise primarily the cost of raw materials, which consist of paddy rice, beans, sugar, fish, wheat, coffee and packaging and auxiliary materials. Our cost of raw materials is the most representative cost of our cost of sales and services, representing approximately 85% of our costs of sales and services.

In recent fiscal years, cost of sales and services accounted for approximately 75-80% of net revenue for the periods.

Operating Expenses

Our operating expenses include selling, general and administrative expenses, equity in subsidiaries and other operating expenses.

Our selling expenses consist of freight, marketing and other expenses directly related to the sale of our products, largely concentrating our variable expenses. In the last fiscal years, selling expenses represented around 10% of net revenue for the period.

Our general and administrative expenses basically refer to personnel expenses, travel, fees and other general and administrative expenses, largely concentrating our fixed expenses. In the last fiscal years, general and administrative expenses represented approximately 5% of net revenue for the period.

EBITDA

EBITDA and EBITDA Margin are financial indicators used to evaluate the results of companies without the influence of their capital structure, tax effects, other accounting impacts without a direct reflection on the company’s cash flow, and other items that are unusual or not arising from its main operations. We understand that it is the appropriate measure for the correct understanding of the Company’s financial condition and performance. In recent years, between February 2011 and February 2020, Camil’s EBITDA margin as a percentage of net sales and services revenue ranged between at least 8.2% and at most 11.7%, representing a revenue CAGR of 14.8%, even facing the period of economic slowdown and high inflation in that period.

Financial Results

The main financial expenses are interest on indebtedness and exchange variation on commercial transactions in other currencies. The main financial income is income from financial investments.

Income Tax and Social Contribution

In Brazil, taxation on revenue encompasses income tax and social contribution. The provision on income tax (IRPJ) and social contribution (CSLL) is related to the taxable income of the fiscal years, with tax rates for IRPJ at 25% and CSLL at 9% on the taxable income. In Uruguay, the tax rate is at 25%. In Chile, 27%. In Argentina, 35%. In Peru, 29.5%. In Brazil, these results are taxed according to the MP 2.159-70/2001 and Law no. 12.973/14.

Company’s tax rate is impacted in some years by virtue of exclusions regarding the acknowledgment of grant-in-aid of ICMS and payment of Interest on Own Capital, a measure commenced in December 2017.


Updated at 07/25/2022 at 01:44 pm