SÃO PAULO–(BUSINESS WIRE)–Vasta Platform Limited (NASDAQ: VSTA) – “Vasta” or the “Company” announces today its financial and operating results for the third quarter of 2023 (3Q23) ended September 30, 2023. Financial results are expressed in Brazilian Reais and are presented in accordance with International Financial Reporting Standards (IFRS).
HIGHLIGHTS
- Vasta’s accumulated subscription revenue during the 2023 sales cycle (from 4Q22 to 3Q23) totaled R$1,207 million, a 18% increase compared to the previous year (or 22%, excluding textbook subscription products (PAR)). In the third quarter, subscription revenue totaled R$194 million, a 15% increase compared to the previous year (or 20%, excluding PAR).
- In the 2023 sales cycle (4Q22 and 3Q23) net revenue increased 24% to R$1,437 million, mostly due to the conversion of 2023 ACV into revenue and due to the performance of the Non-subscription products and B2G. In the third quarter, net revenue totaled R$258 million, a 36.7% increase compared to the previous year.
- Starting in 2023, Vasta started to offer its products and services to the Brazilian public sector (B2G). Our broad portfolio of core content solutions, digital platform, and complementary products together with customized learning solutions tested over decades by the private sector are now available to the K-12 public schools. With the B2G sector, we generated R$40.7 million in revenues in the third quarter of 2023 and R$ 81.2 million in revenues in the 2023 sales cycle.
- In the 2023 sales cycle Adjusted EBITDA grew by 23%, reaching R$411 million. EBITDA margin remained stable compared to the same period in the previous year, with a slight decrease of 40 bps, from 29.0% to 28.6%, mainly due to higher inventory cost caused by rising inflation on paper and production cost and a provision for doubtful accounts (PDA) made in the 4Q22 in connection with a large retailer that entered into bankruptcy proceeding in Brazil. Those increases were offset by operating efficiency gains, cost savings and better mix due to subscription products growth.
- Adjusted Net Profit in the 2023 sales cycle totaled R$36 million, an 83% increase compared to Adjusted Net Profit of R$20 million for the 2022 sales cycle.
- In the 2023 sales cycle, Free cash flow (FCF) totaled R$145 million, a 167% increase from R$55 million in the 2022 sales cycle. In 3Q23 FCF totaled R$58 million, a 242% increase from R$17 million in 3Q22. The last twelve-month (LTM) FCF/Adjusted EBITDA conversion rate improved from 16% (4Q21-3Q22) to 35% (4Q22-3Q23) as a result of company growth and constant efficiency pursuance.
MESSAGE FROM MANAGEMENT
In the third quarter, we concluded the 2023 sales cycle (4Q22 to 3Q23) and subscription revenue has reached R$1,207 million, a 18% increase over the 2022 sales cycle (from 4Q21 to 3Q22) or 22%, excluding textbook subscription products (PAR). Our ACV conversion was 98.1% for 2023, in comparison to an ACV conversion of 102.4% for 2022. For context, in the dynamic landscape of ACV-to-Revenue conversion, fluctuations around 2p.p. in either direction are considered normal by us. Such fluctuations are usually driven by slight differences in number of students per school and product mix.
In the 2023 sales cycle, our net revenue grew 24%, to R$1,437 million. Notably, our Complementary Solutions continues to stand out as the highest growth rate among our business segments, with a 42% increase in the current cycle compared to the 2022 sales cycle.
Moreover, the company’s cash flow generation was one of the main highlights of the 2023 sales cycle. In the 2023 sales cycle, FCF totaled R$145 million an 167% increase from R$55 million in the 2022 sales cycle. In 3Q23 Free cash flow (FCF) totaled R$58 million, a 242% increase from R$17 million in 3Q22. The last twelve-month (LTM) FCF/Adjusted EBITDA conversion rate improved from 16% (4Q21-3Q22) to 35% (4Q22-3Q23). This progress is the result of our company’s growth and commitment to operational efficiency.
The normalization of the company’s profitability was another highlight of the 2023 sales cycle. Adjusted EBITDA was R$39 million in 3Q23 compared to R$23 million in the same quarter of the previous year and in the 2023 sales cycle Adjusted EBITDA grew by 23%, reaching R$411 million. Despite the higher inventory costs in 2023, caused by rising global inflation and production costs, combined with the provision for doubtful accounts (PDA) made in the 4Q22 in connection with the bankruptcy proceedings of a large retailer in Brazil, such cost increases were offset by operating efficiency gains, other cost savings and a better mix owing to subscription products growth, which led to a stable EBITDA margin compared to the same period in the previous year, with a slight decrease of 40 bps, from 29.0% to 28.6%.
During the year, we have announced that Vasta made a significant stride by extending its product and service offerings to the Brazilian public sector (B2G). Our diverse portfolio, which includes core content solutions, a digital platform, and complementary products, along with proven custom learning solutions previously tested in the private sector, are now accessible to K-12 public schools. With the B2G sector, we generated R$40.7 million in revenues in the third quarter of 2023 and R$ 81.2 million in revenues in the 2023 sales cycle. This expansion into the public sector marks a momentous opportunity for Vasta, allowing us to contribute to advance education in Brazil while creating new revenue streams. We are excited about the possibilities this development presents and are committed to delivering high-quality educational solutions that meet the unique needs of the public sector.
In relation to the bottom line, Adjusted Net Profit in the 2023 sales cycle totaled R$36 million, an increase of 83% compared to the 2022 sales cycle when Adjusted Net Profit totaled R$20 million. We remain focused on optimizing our operations and pursuing strategic opportunities to enhance our financial performance. Our commitment to delivering value to our customers and shareholders remains unwavering.
Finally, since 2022, we have dedicated a section of our earnings release for Environmental, Social and Governance (ESG) matters, including a panel of key indicators that has been updated on a quarterly basis, reinforcing our commitment to the highest ESG standards.
OPERATING PERFORMANCE
Student base – subscription models
|
|
|
2023 |
|
2022 |
|
% Y/Y |
|
2021 |
|
% Y/Y |
|
Partner schools – Core content |
5,032 |
|
5,274 |
|
(4.6%) |
|
4,508 |
|
17.0% |
|
|
Partner schools – Complementary solutions |
1,383 |
|
1,304 |
|
6.1% |
|
1,114 |
|
17.1% |
|
|
Students – Core content |
1,539,024 |
|
1,589,224 |
|
(3.2%) |
|
1,335,152 |
|
19.0% |
|
|
Students – Complementary content |
453,552 |
|
372,559 |
|
21.7% |
|
307,941 |
|
21.0% |
|
|
Note: Students enrolled in partner schools |
||||||||||
In the 2023 sales cycle, Vasta served nearly 1.5 million students with core content solutions. Aligned with the company´s strategy to focus on improving our client base in 2023 through a more diversified mix of schools and growth in premium education systems (Anglo, PH and Fibonacci), brands with a higher average ticket, lower defaults, greater adoption of complementary solutions and longer-term relationships. On the other hand, the reduction of our client base was concentrated on the low-end segment and PAR (paper-based), which have higher number of students on average, and a lower margin. Average ticket price of schools that remain in our client base in 2023 is 11% higher than that of schools that are no longer our clients.
The partners-school base that uses our complementary solutions increased by 79 new schools, growing 6% in the number of students served compared to the previous cycle.
FINANCIAL PERFORMANCE
Net revenue
|
Values in R$ ‘000 |
3Q23 |
|
3Q22 |
|
% Y/Y |
|
2023 sales cycle |
|
2022 sales cycle |
|
% Y/Y |
|
|
Subscription |
194,841 |
|
169,609 |
|
14.9% |
|
1,207,155 |
|
1,024,051 |
|
17.9% |
|
|
Subscription ex-PAR |
184,278 |
|
153,574 |
|
20.0% |
|
1,095,141 |
|
897,986 |
|
22.0% |
|
|
Traditional learning systems |
|
180,044 |
|
148,843 |
|
21.0% |
|
937,344 |
|
787,217 |
|
19.1% |
|
Complementary solutions |
|
4,234 |
|
4,731 |
|
(10.5%) |
|
157,797 |
|
110,769 |
|
42.46% |
|
PAR |
10,563 |
|
16,035 |
|
(34.1%) |
|
112,014 |
|
126,065 |
|
(11.1%) |
|
|
B2G |
40,747 |
|
– |
|
0.0% |
|
81,199 |
|
– |
|
0.0% |
|
|
Non-subscription |
|
22,346 |
|
19,115 |
|
16.9% |
|
148,829 |
|
133,469 |
|
11.5% |
|
Total net revenue |
257,933 |
|
188,724 |
|
36.7% |
|
1,437,183 |
|
1,157,520 |
|
24.2% |
|
|
% ACV |
|
15.8% |
|
17.0% |
|
(1.1 p.p.) |
|
98.1% |
|
102.4% |
|
(4.3 p.p.) |
|
% Subscription |
|
75.5% |
|
89.9% |
|
(14.3 p.p.) |
|
84.0% |
|
88.5% |
|
(4.5 p.p.) |
|
Note: n.m.: not meaningful |
||||||||||||
In the 2023 sales cycle, net revenue increased 24.2% to R$1,437 million, mostly due to the conversion of 2023 ACV into revenue and due to the performance of the Non-subscription products and B2G. In the third quarter, net revenue totaled R$258 million, a 36.7% increase compared to the prior year. In the third quarter of 2023 we generated R$40.7 million in revenues with the B2G sector.
In the third quarter, we concluded the 2023 sales cycle (4Q22 to 3Q23) and Vasta’s accumulated subscription revenue during the 2023 sales cycle totaled R$1,207 million, a 18% increase compared to the previous year (or 22%, excluding textbook subscription products (PAR)).
Our ACV conversion was 98.1% for 2023, in comparison to an ACV conversion of 102.4% for 2022. For context, in the dynamic landscape of ACV-to-Revenue conversion, fluctuations around 2p.p. in either direction are considered normal by us. Such fluctuations are usually driven by slight differences in number of students per school and product mix. In the third quarter, subscription revenue totaled R$194 million, a 15% increase compared to the previous year (or 20%, excluding PAR).
EBITDA
|
Values in R$ ‘000 |
3Q23 |
|
3Q22 |
|
% Y/Y |
|
2023 sales cycle |
|
2022 sales cycle |
|
% Y/Y |
|
|
Net revenue |
|
257,933 |
|
188,724 |
|
36.7% |
|
1,437,183 |
|
1,157,521 |
|
24.2% |
|
Cost of goods sold and services |
|
(101,161) |
|
(91,855) |
|
10.1% |
|
(547,541) |
|
(436,977) |
|
25.3% |
|
General and administrative expenses |
|
(124,500) |
|
(98,511) |
|
26.4% |
|
(489,760) |
|
(477,809) |
|
2.5% |
|
Commercial expenses |
|
(63,044) |
|
(48,917) |
|
28.9% |
|
(229,173) |
|
(189,238) |
|
21.1% |
|
Other operating (expenses) income |
|
7,534 |
|
1,301 |
|
479.1% |
|
(16,874) |
|
6,293 |
|
(368.1%) |
|
Share of loss equity-accounted investees |
|
(2,878) |
|
(2,150) |
|
33.9% |
|
(7,894) |
|
(2,150) |
|
267.2% |
|
Impairment losses on trade receivables |
|
(15,369) |
|
(4,692) |
|
227.6% |
|
(55,550) |
|
(27,859) |
|
99.4% |
|
Profit before financial income and taxes |
|
(41,485) |
|
(56,100) |
|
(26.1%) |
|
90,391 |
|
29,782 |
|
203.5% |
|
(+) Depreciation and amortization |
|
70,587 |
|
66,953 |
|
5.4% |
|
275,791 |
|
260,498 |
|
5.9% |
|
EBITDA |
|
29,102 |
|
10,853 |
|
168.1% |
|
366,182 |
|
290,280 |
|
26.1% |
|
EBITDA Margin |
|
11.3% |
|
5.8% |
|
5.5 p.p. |
|
25.5% |
|
25.1% |
|
0.4 p.p. |
|
(+) Layoff related to internal restructuring |
|
115 |
|
869 |
|
(86.8%) |
|
1,297 |
|
12,126 |
|
(89.3%) |
|
(+) Share-based compensation plan |
|
9,755 |
|
11,172 |
|
(12.7%) |
|
20,369 |
|
33,376 |
|
(39.0%) |
|
(+) M&A adjusting expenses |
|
– |
|
– |
|
n.m. |
|
23,562 |
|
– |
|
n.m. |
|
Adjusted EBITDA |
38,972 |
|
22,894 |
|
70.2% |
|
411,411 |
|
335,782 |
|
22.5% |
|
|
Adjusted EBITDA Margin |
15.1% |
|
12.1% |
|
3.0 p.p. |
|
28.6% |
|
29.0% |
|
(0.4 p.p.) |
|
|
Note: n.m.: not meaningful |
||||||||||||
In the 2023 sales cycle Adjusted EBITDA grew by 23%, reaching R$411 million. EBITDA margin remained stable compared to the same period in the previous year, with a slight decrease of 40 bps, from 29.0% to 28.6%, mainly due to higher inventory cost caused by rising inflation and production costs, combined with the provision for doubtful accounts (PDA) made in the 4Q22 in connection with the bankruptcy proceedings of a large retailer in Brazil. Those increases were offset by operating efficiency gains, cost savings and better mix due to subscription products growth.
In 2Q22, Vasta acquired a 45% minority stake in Educbank Gestão de Pagamentos Educacionais S.A. (“Educbank”), which registered a loss in equity-accounted investees in the amount of R$7.9 million in the 2023 sales cycle, mainly due to the performance of our equity-accounted investee in its early stage of operation.
The M&A adjusting expenses in the 2023 sales cycle were impacted by the one-off effect of a price adjustment calculation based on earn-outs and net debt.
|
(%) Net Revenue |
3Q23 |
|
3Q22 |
|
Y/Y (p.p.) |
|
2023 sales cycle |
|
2022 sales cycle |
|
Y/Y (p.p.) |
|
|
Gross margin |
|
60.8% |
|
51.3% |
|
9.5 p.p. |
|
61.9% |
|
62.2% |
|
(0.3 p.p.) |
|
Adjusted cash G&A expenses(1) |
|
(15.3%) |
|
(10.8%) |
|
(4.5 p.p.) |
|
(13.5%) |
|
(14.5%) |
|
1.0 p.p. |
|
Commercial expenses |
|
(24.4%) |
|
(25.9%) |
|
1.5 p.p. |
|
(15.9%) |
|
(16.3%) |
|
0.4 p.p. |
|
Impairment on trade receivables |
|
(6.0%) |
|
(2.5%) |
|
(3.5 p.p.) |
|
(3.9%) |
|
(2.4%) |
|
(1.5 p.p.) |
|
Adjusted EBITDA margin |
|
15.1% |
|
12.1% |
|
3.0 p.p. |
|
28.6% |
|
29.0% |
|
(0.4 p.p.) |
|
(1) Sum of general and administrative expenses, other operating income and profit (loss) of equity-accounted investees, less: depreciation and amortization, layoffs related to internal restructuring, share-based compensation plan and M&A one-off adjusting expenses. |
||||||||||||
In proportion to net revenue, gross margin dropped 30 bps in the 2023 sales cycle (from 62.2% to 61.9%) mainly due to higher inventory cost caused by rising inflation on paper and production costs while Adjusted cash G&A expenses and Commercial expenses reduced by 100 bps and 40 bps respectively, due to gains in operating efficiency, workforce optimization, cost savings and a sales mix that benefited from the growth of subscription products.
Reported provisions for doubtful accounts (PDA) grew 150 bps between the compared sales cycles. This increase in PDA is impacted due to the provisioning of 100% of accounts receivable from a large Brazilian retail company undergoing bankruptcy proceedings, in the amount of R$9 million in the 2023 sales cycle. Furthermore, this change in PDA is also influenced by the credit landscape, primarily among schools outside the premium brands segment. This has demanded a conservative approach to risk management and credit allocation, aligning our financial strategy with the prevailing market conditions and potential credit challenges. All factors considered, the participation of PDA in relation to Vasta’s Net Revenue increased to 3.9% in the 2023 sales cycle compared to 2.4% in 2022 sales cycle.
Finance Results
|
Values in R$ ‘000 |
|
3Q23 |
|
3Q22 |
|
% Y/Y |
|
2023 sales cycle |
|
2022 sales cycle |
|
% Y/Y |
|
Finance income |
19,511 |
|
19,174 |
|
1.8% |
|
85,831 |
|
70,186 |
|
22.3% |
|
|
Finance costs |
(74,966) |
|
(68,426) |
|
9.6% |
|
(307,569) |
|
(247,300) |
|
24.4% |
|
|
Total |
|
(55,455) |
|
(49,252) |
|
12.6% |
|
(221,738) |
|
(177,114) |
|
25.2% |
In the third quarter of 2023, finance income totaled R$19.5 million, compared to R$19.2 million in 3Q22, representing a slight increase of 1.8% mainly due to interest on accounts receivable partially offset by lower interest on market securities. During the 2023 sales cycle, finance income has increased by 22% to R$85 million, mainly due to the impact of higher interest rates on financial investments and marketable securities. Additionally, finance income in the 2023 sales cycle includes a gain of R$10 million recorded in 4Q22, resulting from the reversal of interest on tax contingencies.
Finance costs increased by 9.6% (quarter-on-quarter) in 3Q23, amounting to R$75 million. In the 2023 sales cycle, finance costs have risen by 24.4% to reach R$307.6 million. This increase is driven by higher interest rates applicable to bonds and financings, accounts payable on business combinations, and provisions for tax, civil, and labor losses.
Net profit (loss)
|
Values in R$ ‘000 |
|
3Q23 |
|
3Q22 |
|
% Y/Y |
|
2023 sales cycle |
|
2022 sales cycle |
|
% Y/Y |
|
Net (loss) profit |
(62,111) |
|
(75,994) |
|
(18.3%) |
|
(67,053) |
|
(110,684) |
|
(39.4%) |
|
|
(+) Layoffs related to internal restructuring |
115 |
|
869 |
|
(86.8%) |
|
1,297 |
|
12,126 |
|
(89.3%) |
|
|
(+) Share-based compensation plan |
|
9,755 |
|
11,172 |
|
(12.7%) |
|
20,369 |
|
33,376 |
|
(39.0%) |
|
(+) Amortization of intangible assets(1) |
38,940 |
|
38,778 |
|
0.4% |
|
156,313 |
|
152,205 |
|
2.7% |
|
|
(-) Income tax contingencies reversal |
|
– |
|
– |
|
n.m. |
|
(29,715) |
|
– |
|
n.m. |
|
(+) M&A adjusting expenses |
|
– |
|
– |
|
n.m. |
|
23,562 |
|
– |
|
n.m. |
|
(-) Tax shield(2) |
(16,595) |
|
(17,278) |
|
(4.0%) |
|
(68,524) |
|
(67,220) |
|
1.9% |
|
|
Adjusted net (loss) profit |
(29,896) |
|
(42,454) |
|
(29.6%) |
|
36,249 |
|
19,803 |
|
83.0% |
|
|
Adjusted net margin |
(11.6%) |
|
(22.5%) |
|
10.9 p.p. |
|
2.5% |
|
1.7% |
|
0.8 p.p. |
|
|
Note: n.m.: not meaningful; (1) From business combinations. (2) Tax shield (34%) generated by the expenses that are being deducted as net (loss) profit adjustments. |
||||||||||||
In the third quarter of 2023, adjusted net loss totaled R$29 million, a 29.6% increase compared to adjusted net loss of R$42 million in 3Q22. As for the 2023 sales cycle, adjusted net profit totaled R$36 million, reflecting an 83% increase from an adjusted net profit of R$19 million in the 2022 sales cycle.
The gain related to the reversal of tax contingencies was recorded in 4Q22 impacting corporate tax and finance results. On the other hand, the M&A adjusting expenses occurred in 2Q23 was adjusted as it relates to a one-off effect of a price adjustment calculation based on earn-outs and net debt.
Accounts receivable and PDA
|
Values in R$ ‘000 |
3Q23 |
|
3Q22 |
|
% Y/Y |
|
2Q23 |
|
% Q/Q |
|
|
Gross accounts receivable |
545,972 |
|
378,587 |
|
44.2% |
|
632,151 |
|
(13.6%) |
|
|
Provision for doubtful accounts (PDA) |
(73,390) |
|
(49,250) |
|
49.0% |
|
(64,870) |
|
13.1% |
|
|
Coverage index |
|
13.4% |
|
13.0% |
|
0.4 p.p. |
|
10.3% |
|
3.2 p.p. |
|
Net accounts receivable |
|
472,582 |
|
329,337 |
|
43.5% |
|
567,281 |
|
(16.7%) |
|
Average days of accounts receivable(1) |
118 |
|
102 |
|
16 |
|
149 |
|
(31) |
|
|
(1) Balance of net accounts receivable divided by the last-twelve-month net revenue, multiplied by 360. |
||||||||||
The average payment term of Vasta’s accounts receivable portfolio was 118 days in the 3Q23 which represents 31 days lower than the second quarter of 2023 and 16 days higher than the third quarter of the previous year.
Free cash flow
|
Values in R$ ‘000 |
|
3Q23 |
|
3Q22 |
|
% Y/Y |
|
2023 sales cycle |
|
2022 sales cycle |
|
% Y/Y |
|
Cash from operating activities(1) |
102,532 |
|
61,814 |
|
65.9% |
|
330,989 |
|
247,762 |
|
33.6% |
|
|
(-) Income tax and social contribution paid |
(279) |
|
(1,247) |
|
(77.6%) |
|
(5,361) |
|
(2,736) |
|
95.9% |
|
|
(-) Payment of provision for tax, civil and labor losses |
|
(508) |
|
52 |
|
(1077%) |
|
(1,302) |
|
(1,421) |
|
(8.3%) |
|
(-) Interest lease liabilities paid |
|
(3,050) |
|
(3,655) |
|
(16.6%) |
|
(14,264) |
|
(13,941) |
|
2.3% |
|
(-) Acquisition of property, plant, and equipment |
(8,899) |
|
(2,374) |
|
274.9% |
|
(28,788) |
|
(62,060) |
|
(53.6%) |
|
|
(-) Additions of intangible assets |
(22,913) |
|
(30,892) |
|
(25.8%) |
|
(106,696) |
|
(85,934) |
|
24.2% |
|
|
(-) Lease liabilities paid |
(8,623) |
|
(6,682) |
|
29.0% |
|
(29,135) |
|
(27,099) |
|
7.5% |
|
|
Free cash flow (FCF) |
|
58,260 |
|
17,016 |
|
242.4% |
|
145,444 |
|
54,573 |
|
166.5% |
|
FCF/Adjusted EBITDA |
149.5% |
|
74.3% |
|
75.2 p.p. |
|
35.4% |
|
16.3% |
|
19.1 p.p. |
|
|
LTM FCF/Adjusted EBITDA |
|
35.4% |
|
16.3% |
|
19.1 p.p. |
|
35.4% |
|
16.3% |
|
19.1 p.p. |
|
(1) Net (loss) profit less non-cash items less and changes in working capital. Note: n.m.: not meaningful |
||||||||||||
In the 2023 sales cycle, FCF totaled R$145 million an 167% increase from R$55 million in the 2022 sales cycle. In 3Q23 Free cash flow (FCF) totaled R$58 million, a 242% increase from R$17 million in 3Q22. The last twelve-month (LTM) FCF/Adjusted EBITDA conversion rate improved from 16% (4Q21-3Q22) to 35% (4Q22-3Q23).
Financial leverage
|
Values in R$ ‘000 |
|
3Q23 |
|
2Q23 |
|
1Q23 |
|
4Q22 |
|
3Q22 |
|
Financial debt |
|
765,350 |
|
846,443 |
|
815,927 |
|
842,996 |
|
811,612 |
|
Accounts payable from business combinations |
|
601,171 |
|
591,620 |
|
599,713 |
|
625,277 |
|
647,466 |
|
Total debt |
|
1,366,521 |
|
1,438,063 |
|
1,415,640 |
|
1,468,273 |
|
1,459,078 |
|
Cash and cash equivalents |
|
106,757 |
|
38,268 |
|
42,680 |
|
45,765 |
|
44,343 |
|
Marketable securities |
|
261,264 |
|
385,002 |
|
331,110 |
|
380,516 |
|
433,803 |
|
Net debt |
|
998,500 |
|
1,014,793 |
|
1,041,850 |
|
1,041,992 |
|
980,932 |
|
Net debt/LTM adjusted EBITDA(1) |
|
2.43 |
|
2.57 |
|
2.85 |
|
2.78 |
|
2.92 |
|
(1) LTM adjusted EBITDA includes Eleva. Eleva’s LTM adjusted EBITDA prior to November 2021 may not reflect Vasta’s accounting standards. |
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As of the end of 3Q23, Vasta recorded net debt in the amount of R$998 million, a reduction of R$16 million to the net debt position of 2Q23. The positive cash flow generated in the period helped surpass the negative impacts of interest rates and payments relating to our share buyback program. The net debt/LTM adjusted EBITDA of 2.43x as of 3Q23 is 0.14x lower than 2Q23 and 0.49x lower than 3Q22.
In comparison to 3Q22, the net debt position increased by R$18 million, due to the impact of higher interest rates and investments made in the minority-stake acquisitions of Educbank (in July 2022) both of which were partially offset our positive cash flow generated in the period.
ESG
Sustainability Report
In the third quarter, Vasta released its sustainability report for the year 2022. This report, which is the company’s second, was prepared in accordance with international standards for reports of this category and showcases the implementation of our corporate strategy, challenges, and achievements, while also reaffirming our commitment to transparency and sustainability. These include the publication of its first Greenhouse Gas Inventory, the company’s adherence to the UN Global Compact, the dedication of 3,216 thousand hours to the Corporate Volunteer Program, the SOMOS Afro program, an affirmative internship program, and the fact that 29% of the seats on the Board of Directors are occupied by women. The report complies with the Global Reporting Initiative (GRI) 2021 version and also considers other standards recognized in Brazil and abroad, such as the Sustainability Accounting Standards Board (SASB) guidelines for the education sector, the guidelines of the IBC Stakeholder Capitalism Metrics from the World Economic Forum, and the principles of the International Integrated Reporting Council (IIRC).
The document is available at: https://ir.vastaplatform.com/esg/
In line with the topics identified in the materiality process, every quarter we present Vasta’s most material indicators:
Key Indicators
ENVIRONMENT
|
Water withdrawal2 |
||||||||
|
SDGs |
GRI |
Disclosure |
Unit |
3Q2023 |
3Q20223 |
% Y/Y |
2Q2023 |
% Q/Q |
|
3, 11, 12 |
303-3 |
Total water withdrawal |
m³ |
5,290 |
3,565 |
48% |
4,654 |
13.7% |
|
Municipal water supply1 |
% |
100% |
4% |
96 p.p. |
100% |
0 p.p. |
||
|
Groundwater |
% |
0% |
96% |
(96 p.p.) |
0% |
0 p.p. |
||
|
Energy consumption within the organization2 |
||||||||
|
SDGs |
GRI |
Disclosure |
Unit |
3Q2023 |
3Q20223 |
% Y/Y |
2Q2023 |
% Q/Q |
|
12, 13 |
302-1 |
Total energy consumption |
GJ |
1,845 |
1,523 |
21% |
2,909 |
-36.6% |
|
Energy from renewable sources2 |
% |
59% |
98% |
(39 p.p.) |
62% |
(3 p.p.) |
||
The decrease in groundwater consumption is due to the closure of our Distribution Center’s well located in São José dos Campos, prompted by possible contamination from adjacent land which housed a factory. In the third quarter, the operations of the Anglo Tamandaré unit were closed in view of the inauguration of the Anglo Paulista unit, which was under construction during the first semester. The building features modernized facilities and provides greater mobility for the students.
SOCIAL
|
Diversity in workforce by employee category |
||||||||
|
SDGs |
GRI |
Disclosure |
Unit |
3Q2023 |
3Q2022 |
% Y/Y |
2Q2023 |
% Q/Q |
|
5 |
405-1 |
C-level – Women |
% |
29% |
25% |
4 p.p. |
29% |
0 p.p. |
|
C-level – Men |
% |
71% |
75% |
(4 p.p.) |
71% |
0 p.p. |
||
|
C-level- total4 |
no. |
7 |
4 |
75% |
7 |
0.0% |
||
|
Leadership (≥ managers) – Women |
% |
45% |
48% |
(3 p.p.) |
47% |
(2 p.p.) |
||
|
Total – Leadership (≥ managers) – Men |
% |
55% |
52% |
3 p.p. |
53% |
2 p.p. |
||
|
Leadership (≥ managers) 5 – total |
no. |
144 |
134 |
7% |
139 |
3.6% |
||
|
Academic staff – Women |
% |
18% |
20% |
(2 p.p.) |
18% |
0 p.p. |
||
|
Academic staff – Men |
% |
83% |
80% |
3 p.p. |
82% |
1 p.p. |
||
|
Academic staff 6 – total |
no. |
80 |
84 |
-5% |
82 |
-2.4% |
||
|
Administrative/Operational – Women |
% |
55% |
57% |
(2 p.p.) |
56% |
(1 p.p.) |
||
|
Administrative/Operational – Male |
% |
45% |
43% |
2 p.p. |
44% |
1 p.p. |
||
|
Administrative/Operational 7 – total |
no. |
1,564 |
1,539 |
2% |
1,524 |
2.6% |
||
|
Employees – Women |
% |
53% |
54% |
(1 p.p.) |
53% |
0 p.p. |
||
|
Employees – Men |
% |
47% |
46% |
1 p.p. |
47% |
0 p.p. |
||
|
Employees – total |
no. |
1,795 |
1,761 |
2% |
1,752 |
2.5% |
||
|
Social impact* 8 |
||||||
|
SDGs |
GRI |
Disclosure |
Unit |
1S2023 |
1S2022 |
2S2022 |
|
4, 10 |
– |
Scholars of the Somos Futuro Program |
no. |
236 |
371 |
247 |
|
* Indicators presented progressively, referring to the total accumulated since the beginning of the year, which is why we are not presenting the variations compared to previous semesters. |
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Contacts
Investor Relations
[email protected]
