SÃO PAULO–(BUSINESS WIRE)–Vasta Platform Limited (NASDAQ: VSTA) – “Vasta” or the “Company” announces today its financial and operating results for the second quarter of 2023 (2Q23) ended June 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 cycle to date (from 4Q22 to 2Q23) totaled R$1,012 million, a 18.5% increase compared to the previous year (or 22.4%, excluding textbook subscription products (PAR)). In the second quarter, subscription revenue totaled R$211 million, a 21.5% increase compared to the previous year (or 24.5%, excluding PAR).
-
In the 2023 cycle to date (4Q22 and 2Q23) net revenue increased 21.7% to R$1,179 million, mostly due to the conversion of 2023 ACV into revenue. In the second quarter, net revenue totaled R$271 million, a 43% increase mostly due to the performance of the Non-subscription products and B2G.
-
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. In the second quarter of 2023 we generated R$40.5 million in revenues with the B2G sector.
-
In the 2023 cycle to date Adjusted EBITDA grew 19% reaching R$372 million. EBITDA margin remained stable compared to the same period in the previous year, with a slight decrease of 70 bps from 32.3% to 31.6% 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 cycle to date totaled R$66 million, a 6% increase compared to Adjusted Net Profit of R$62 million for the 2022 cycle.
-
In the 2023 cycle to date, Free cash flow (FCF) totaled R$87 million, a 132% increase from R$37 million in the 2022 cycle. In 2Q23 FCF totaled R$94 million, a 8.4% decrease from R$103 million in 2Q22. The last twelve-month (LTM) FCF/Adjusted EBITDA conversion rate improved from 11% (3Q21-2Q22) to 26% (3Q22-2Q23) as a result of company growth and constant efficiency pursuance.
- Start-Anglo had the first contracts signed. Start-Anglo marked our entrance in the bilingual franchise business, responding to an increasingly strong demand of families and students for academic excellence (powered by Anglo content), bilingual education, and innovation. We expect the first operations to be launched in 2024.
MESSAGE FROM MANAGEMENT
As we approach the end of the current cycle, our accumulated subscription revenue during the 2023 cycle to date has reached R$1,012 million, representing a 18.5% increase compared to the previous year (or 22.4% when excluding PAR). This growth is aligned with the 20% growth projected by our 2023 ACV, indicating that Vasta has truly evolved into a robust platform with consistent and recurring revenue.
Moreover, in the 2023 cycle to date (from 4Q22 to 2Q23), our net revenue grown by 22%, to R$1,179 million. Notably, our Complementary Solutions segment continues to stand out as the highest growth rate among our business segments, with a 45% increase in the current cycle compared to the same period in the previous year.
In 2023, 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.
During the second quarter of 2023, we generated R$40.5 million in revenue from the B2G sector. This expansion into the public sector marks a momentous opportunity for Vasta, allowing us to contribute to the advancement of 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. By leveraging our expertise and innovative resources, we aim to make a positive impact on the education landscape and further strengthen Vasta’s position as a prominent player in the market.
In the 2023 cycle to date, our Adjusted EBITDA grew by 19%, reaching R$372 million. The EBITDA margin remained stable compared to the same period in the previous year, with a slight decline from 32.3% to 31.6%. This decrease can be attributed mainly to provisions for doubtful accounts (PDA) made in 4Q22, in connection with a large retailer that entered bankruptcy proceedings in Brazil and higher inventory costs due to rising inflation on paper and production costs. Despite these challenges, we were able to offset these increases through gains in operating efficiency, cost savings, and an improved product mix driven by the growth of our subscription products.
Our cash flow generation continues to normalize. In the 2023 cycle to date, our free cash flow reached R$87 million, a 132% increase from the R$37 million recorded in the 2022 cycle. It is worth noting that our last twelve-month (LTM) free cash flow to Adjusted EBITDA conversion rate has risen from 11% (3Q21-2Q22) to 26% (3Q22-2Q23). This notable progress is a direct outcome of our company’s growth and unwavering commitment to operational efficiency.
In relation to the bottom line, Adjusted Net Profit in the 2023 cycle to date totaled R$66 million, an increase of 6% compared to the same period in the 2022 cycle. 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.
With the launch of Start-Anglo, representing our entry into the bilingual franchise business, we look forward to meeting the growing demand of families and students for academic excellence, bilingual education, and innovation, powered by Anglo’s renowned content. The first contracts have already been signed and we are preparing to launch its first operations, scheduled to take place in 2024. Through Start-Anglo, we aim to deliver exceptional educational experiences, providing access to high-quality bilingual education and innovative teaching methodologies that will benefit students and their families. This strategic expansion aligns with our commitment to offering diverse and impactful educational solutions, and we believe that Start-Anglo will contribute significantly to our mission of enriching learning journeys and promoting educational advancement.
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 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.
Our 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 |
2Q23 |
|
2Q22 |
|
% Y/Y |
|
2023 cycle |
|
2022 cycle |
|
% Y/Y |
|
|
Subscription |
211,154 |
|
173,818 |
|
21.5% |
|
1,012,315 |
|
854,442 |
|
18.5% |
|
|
Subscription ex-PAR |
207,636 |
|
166,815 |
|
24.5% |
|
910,863 |
|
744,412 |
|
22.4% |
|
|
Traditional learning systems |
|
203,157 |
|
164,075 |
|
23.8% |
|
757,300 |
|
638,374 |
|
18.6% |
|
Complementary solutions |
|
4,479 |
|
2,740 |
|
63.5% |
|
153,563 |
|
106,038 |
|
44.8% |
|
PAR |
3,517 |
|
7,003 |
|
(49.8%) |
|
101,451 |
|
110,030 |
|
(7.8%) |
|
|
Non-subscription |
19,790 |
|
16,137 |
|
22.6% |
|
126,483 |
|
114,354 |
|
10.6% |
|
|
B2G |
|
40,453 |
|
– |
|
n.m. |
|
40,453 |
|
– |
|
n.m. |
|
Total net revenue |
271,396 |
|
189,956 |
|
42.9% |
|
1,179,250 |
|
968,796 |
|
21.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% ACV |
|
17.2% |
|
17.4% |
|
(0.2 p.p.) |
|
82.3% |
|
83.4% |
|
(1.1 p.p.) |
|
% Subscription |
|
77.8% |
|
91.5% |
|
(13.7 p.p.) |
|
85.8% |
|
88.2% |
|
(2.4 p.p.) |
|
Note: n.m.: not meaningful |
In the 2023 cycle to date, net revenue increased 21.7% to R$1,179 million, mostly due to the conversion of 2023 ACV into revenue. In the second quarter, net revenue totaled R$271 million, a 42.9% increase. In the second quarter of 2023 we generated R$40 million in revenues with the B2G sector.
Vasta’s accumulated subscription revenue during the 2023 cycle to date (from 4Q22 to 2Q22) totaled R$1,012 million, a 18.5% increase compared to the previous year (or 22.4%, excluding PAR). In the second quarter, subscription revenue increased 21.5% (or 24.5%, excluding PAR). As we approach the end of the 2023 cycle (3Q23), we expect subscription revenue growth to converge to 20% implied by our 2023 ACV guidance.
EBITDA
|
Values in R$ ‘000 |
2Q23 |
|
2Q22 |
|
% Y/Y |
|
2023 cycle |
|
2022 cycle |
|
% Y/Y |
|
|
Net revenue |
|
271,396 |
|
189,956 |
|
42.9% |
|
1,179,250 |
|
968,796 |
|
21.7% |
|
Cost of goods sold and services |
|
(119,177) |
|
(79,966) |
|
49.0% |
|
(446,380) |
|
(345,121) |
|
29.3% |
|
General and administrative expenses |
|
(118,091) |
|
(127,139) |
|
(7.1%) |
|
(365,260) |
|
(379,298) |
|
(3.7%) |
|
Commercial expenses |
|
(64,863) |
|
(46,988) |
|
38.0% |
|
(166,129) |
|
(140,321) |
|
18.4% |
|
Other operating (expenses) income |
|
(23,481) |
|
707 |
|
(3421.2%) |
|
(24,408) |
|
4,993 |
|
(588.8%) |
|
Share of loss equity-accounted investees |
|
(2,126) |
|
– |
|
0.0% |
|
(5,016) |
|
– |
|
0.0% |
|
Impairment losses on trade receivables |
|
(1,028) |
|
(3,543) |
|
(71.0%) |
|
(40,181) |
|
(23,167) |
|
73.4% |
|
Profit before financial income and taxes |
|
(57,370) |
|
(66,973) |
|
(14.3%) |
|
131,876 |
|
85,883 |
|
53.6% |
|
(+) Depreciation and amortization |
|
66,532 |
|
67,606 |
|
(1.6%) |
|
205,204 |
|
193,557 |
|
6.0% |
|
EBITDA |
|
9,162 |
|
633 |
|
1347.4% |
|
337,080 |
|
279,440 |
|
20.6% |
|
EBITDA Margin |
|
3.4% |
|
0.3% |
|
3.0 p.p. |
|
28.6% |
|
28.8% |
|
(0.3 p.p.) |
|
(+) Layoff related to internal restructuring |
|
87 |
|
387 |
|
(77.5%) |
|
1,182 |
|
11,257 |
|
(89.5%) |
|
(+) Share-based compensation plan |
|
7,841 |
|
10,181 |
|
(23.0%) |
|
10,614 |
|
22,204 |
|
(52.2%) |
|
(+) M&A adjusting expenses |
|
23,562 |
|
– |
|
0.0% |
|
23,562 |
|
– |
|
0.0% |
|
Adjusted EBITDA |
40,653 |
|
11,201 |
|
262.9% |
|
372,439 |
|
312,901 |
|
19.0% |
|
|
Adjusted EBITDA Margin |
15.0% |
|
5.9% |
|
9.1 p.p. |
|
31.6% |
|
32.3% |
|
(0.7 p.p.) |
|
|
Note: n.m.: not meaningful |
In the 2023 cycle to date Adjusted EBITDA grew 19% to R$372 million. EBITDA margin remained stable compared to the same period in the previous year, with a slight decrease from 32.3% to 31.6% mainly due to provision for doubtful accounts (PDA) made in 4Q22, in connection with a large retailer that entered bankruptcy proceedings in Brazil and higher inventory cost caused by rising inflation on paper and production cost. Those increases were offset by gains in operating efficiency, 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$5.0 million in the 2023 cycle to date, mainly due to the performance of our equity-accounted investee in its early stage of operation.
The M&A adjusting expenses were impacted by the one-off effect of a price adjustment calculation based on earn-outs and net debt.
|
(%) Net Revenue |
2Q23 |
|
2Q22 |
|
Y/Y (p.p.) |
|
2023 cycle |
|
2022 cycle |
|
Y/Y (p.p.) |
|
|
Gross margin |
|
56.1% |
|
57.9% |
|
(1.8 p.p.) |
|
62.1% |
|
64.4% |
|
(2.2 p.p.) |
|
Adjusted cash G&A expenses(1) |
|
(16.8%) |
|
(25.4%) |
|
8.6 p.p. |
|
(13.1%) |
|
(15.2%) |
|
2.1 p.p. |
|
Commercial expenses |
|
(23.9%) |
|
(24.7%) |
|
0.8 p.p. |
|
(14.1%) |
|
(14.5%) |
|
0.4 p.p. |
|
Impairment on trade receivables |
|
(0.4%) |
|
(1.9%) |
|
1.5 p.p. |
|
(3.4%) |
|
(2.4%) |
|
(1.0 p.p.) |
|
Adjusted EBITDA margin |
|
15.0% |
|
5.9% |
|
9.1 p.p. |
|
31.6% |
|
32.3% |
|
(0.7 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 220 bps in the cycle to date (from 64.4% to 62.1%) 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 210 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 100 bps between the compared commercial cycles. This increase in PDA was due to the provisioning of 100% of accounts receivable from a large Brazilian retail company undergoing bankruptcy proceedings, in the amount of R$15.0 million in the 4Q22 which amount was revised down by R$5.9 million in 2Q23. Excluding this factor, the participation of PDA in relation to Vasta’s Net Revenue remained stable (2.6% in the 2023 commercial cycle to date compared to 2.4% in 2022 commercial cycle to date).
Finance Results
|
Values in R$ ‘000 |
|
2Q23 |
|
2Q22 |
|
% Y/Y |
|
2023 cycle |
|
2022 cycle |
|
% Y/Y |
|
Finance income |
17,470 |
|
21,896 |
|
(20.2%) |
|
66,320 |
|
51,012 |
|
30.0% |
|
|
Finance costs |
(82,754) |
|
(69,902) |
|
18.4% |
|
(232,603) |
|
(178,874) |
|
30.0% |
|
|
Total |
|
(65,284) |
|
(48,006) |
|
36.0% |
|
(166,283) |
|
(127,862) |
|
30.0% |
In the second quarter of 2023, finance income totaled R$17 million, compared to R$22 million in 2Q22, representing a decrease of 20.2%. This decrease was mostly attributed to lower position in relation to marketable securities resulting from the partial amortization of the debt arising from our business combination. During the 2023 cycle to date, finance income has increased by 30% to R$66 million, mainly due to the impact of higher interest rates on financial investments and marketable securities. Additionally, finance income in the 2023 cycle to date includes a gain of R$10 million recorded in 4Q22, resulting from the reversal of tax contingencies interest.
Finance costs increased by 18.4% (quarter-on-quarter) in 2Q23, amounting to R$82.7 million. In the 2023 cycle to date, finance costs have risen by 30% to reach R$232.6 million. This increase is driven by higher interest rates applicable to bonds and financings, accounts payable on business combinations, and provisions for tax, civil, and labor losses.
Net profit (loss)
|
Values in R$ ‘000 |
|
2Q23 |
|
2Q22 |
|
% Y/Y |
|
2023 cycle |
|
2022 cycle |
|
% Y/Y |
|
Net (loss) profit |
(78,611) |
|
(74,661) |
|
5.3% |
|
(4,943) |
|
(34,690) |
|
(85.8%) |
|
|
(+) Layoffs related to internal restructuring |
87 |
|
387 |
|
(77.5%) |
|
1,182 |
|
11,257 |
|
(89.5%) |
|
|
(+) Share-based compensation plan |
|
7,841 |
|
10,181 |
|
(23.0%) |
|
10,614 |
|
22,204 |
|
(52.2%) |
|
(+) Amortization of intangible assets(1) |
39,072 |
|
38,778 |
|
0.8% |
|
117,373 |
|
113,427 |
|
3.5% |
|
|
(-) Income tax contingencies reversal |
|
– |
|
– |
|
0.0% |
|
(29,715) |
|
– |
|
0.0% |
|
(+) M&A adjusting expenses |
|
23,562 |
|
– |
|
0.0% |
|
23,562 |
|
– |
|
0.0% |
|
(-) Tax shield(2) |
(23,991) |
|
(16,778) |
|
43.0% |
|
(51,929) |
|
(49,942) |
|
4.0% |
|
|
Adjusted net (loss) profit |
(32,040) |
|
(42,093) |
|
(23.9%) |
|
66,145 |
|
62,256 |
|
6.2% |
|
|
Adjusted net margin |
(11.8%) |
|
(22.2%) |
|
10.4 p.p. |
|
5.6% |
|
6.4% |
|
(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 second quarter of 2023, adjusted net loss totaled R$32 million, a 24% increase compared to adjusted net loss of R$42 million in 2Q22. As for the 2023 cycle to date, adjusted net profit totaled R$66 million, reflecting a 6% increase from an adjusted net profit of R$62 million in the 2022 cycle.
The gain related to the reversal of tax contingencies was recorded in 4Q22 impacting corporate tax and finance results. On the other hand, the M&A adjusting expenses occurred in 2Q23 was adjusted as it relates to a one-off effect of a price adjustment calculation based on earn-outs and net debt.
Accounts receivable and PDA
|
Values in R$ ‘000 |
2Q23 |
|
2Q22 |
|
% Y/Y |
|
1Q23 |
|
% Q/Q |
|
|
Gross accounts receivable |
632,151 |
|
477,282 |
|
32.4% |
|
784,681 |
|
(19.4%) |
|
|
Provision for doubtful accounts (PDA) |
(64,870) |
|
(50,098) |
|
29.5% |
|
(72,253) |
|
(10.2%) |
|
|
Coverage index |
|
10.3% |
|
10.5% |
|
(0.2 p.p.) |
|
9.2% |
|
1.1 p.p. |
|
Net accounts receivable |
|
567,281 |
|
427,184 |
|
32.8% |
|
712,428 |
|
(20.4%) |
|
Average days of accounts receivable(1) |
149 |
|
140 |
|
9 |
|
199 |
|
(50) |
|
|
(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 149 days in the 2Q23 which represents 50 days lower than the first quarter of 2023 and 9 days higher than the second quarter of the previous year.
Free cash flow
|
Values in R$ ‘000 |
|
2Q23 |
|
2Q22 |
|
% Y/Y |
|
2023 cycle |
|
2022 cycle |
|
% Y/Y |
|
Cash from operating activities(1) |
127,546 |
|
146,466 |
|
(12.9%) |
|
228,457 |
|
185,948 |
|
22.9% |
|
|
(-) Income tax and social contribution paid |
(334) |
|
(966) |
|
(65.4%) |
|
(5,082) |
|
(1,489) |
|
241.3% |
|
|
(-) Payment of provision for tax, civil and labor losses |
|
(549) |
|
(1,180) |
|
(53.5%) |
|
(794) |
|
(1,473) |
|
(46.1%) |
|
(-) Interest lease liabilities paid |
|
(3,418) |
|
(3,408) |
|
0.3% |
|
(11,214) |
|
(10,286) |
|
9.0% |
|
(-) Acquisition of property, plant, and equipment |
(4,092) |
|
(13,793) |
|
(70.3%) |
|
(19,889) |
|
(59,686) |
|
(66.7%) |
|
|
(-) Additions of intangible assets |
(21,376) |
|
(16,211) |
|
31.9% |
|
(83,783) |
|
(55,042) |
|
52.2% |
|
|
(-) Lease liabilities paid |
(3,584) |
|
(8,073) |
|
(55.6%) |
|
(20,512) |
|
(20,417) |
|
0.5% |
|
|
Free cash flow (FCF) |
|
94,193 |
|
102,835 |
|
(8.4%) |
|
87,184 |
|
37,557 |
|
132.1% |
|
FCF/Adjusted EBITDA |
231.7% |
|
918.1% |
|
(686 p.p.) |
|
23.4% |
|
12.0% |
|
11.4 p.p. |
|
|
LTM FCF/Adjusted EBITDA |
|
26.4% |
|
10.9% |
|
15.4 p.p. |
|
26.4% |
|
10.9% |
|
15.4 p.p. |
|
(1) Net (loss) profit less non-cash items less and changes in working capital. Note: n.m.: not meaningful |
||||||||||||
In the 2023 cycle to date, FCF totaled R$87 million an 132% increase from R$37 million in the 2022 cycle. In 2Q23 Free cash flow (FCF) totaled R$94 million, a 8.4% decrease from R$103 million in 2Q22. The last twelve-month (LTM) FCF/Adjusted EBITDA conversion rate improved from 11% (3Q21-2Q22) to 26% (3Q22-2Q23).
Financial leverage
|
Values in R$ ‘000 |
|
2Q23 |
|
1Q23 |
|
4Q22 |
|
3Q22 |
|
2Q22 |
|
Financial debt |
|
846,443 |
|
815,927 |
|
842,996 |
|
811,612 |
|
844,778 |
|
Accounts payable from business combinations |
|
591,620 |
|
599,713 |
|
625,277 |
|
647,466 |
|
585,503 |
|
Total debt |
|
1,438,063 |
|
1,415,640 |
|
1,468,273 |
|
1,459,078 |
|
1,430,281 |
|
Cash and cash equivalents |
|
38,268 |
|
42,680 |
|
45,765 |
|
44,343 |
|
147,762 |
|
Marketable securities |
|
385,002 |
|
331,110 |
|
380,516 |
|
433,803 |
|
417,770 |
|
Net debt |
|
1,014,793 |
|
1,041,850 |
|
1,041,992 |
|
980,932 |
|
864,749 |
|
Net debt/LTM adjusted EBITDA(1) |
|
2.57 |
|
2.85 |
|
2.78 |
|
2.92 |
|
3.04 |
|
(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 2Q23, Vasta recorded net debt in the amount of R$1,015 million, a reduction of R$27 million to the net debt position of 1Q23. The positive cash flow generated in the period helped surpass the negative impacts of interest rates. The net debt/LTM adjusted EBITDA of 2.57x as of 2Q23 is 0.28x lower than 1Q23 and 0.47x lower than 2Q22.
In comparison to 2Q22, the net debt position increased by R$150 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
Since 2Q22, Vasta reports updates about its ESG standards, including a panel of key ESG indicators, in line with the topics identified in the materiality process. Annual consolidated data is available in Vasta’s Sustainability Report, which can be found here.
Check below the main highlights of ESG in the second quarter of 2023.
Educator Grade 10 Award
In 2023, the SOMOS Institute took on the organization of the Educator Grade 10 Award, which is the largest and most important in Basic Education in Brazil. In its 25th edition, the Award recognizes and values teachers and school administrators from Early Childhood Education to High School in both public and private schools across the country. With the Somos Institute’s participation, the award incorporates a perspective on the United Nations’ Sustainable Development Goals.
Key Indicators
ENVIRONMENT
|
SDGs |
GRI |
Water withdrawn by source2 (m³) |
Unit |
2Q22 |
1Q23 |
2Q23 |
|
3, 11 and 12 |
303-3 |
Total water withdrawal |
m³ |
2,861 |
2,866 |
4,654 |
|
Municipal water supply |
% |
93% |
67% |
100% |
||
|
Groundwater |
% |
7% |
33% |
0% |
||
|
SDGs |
GRI |
Internal energy consumption |
Unit |
2Q22 |
1Q23 |
2Q23 |
|
12 and 13 |
302-1 |
Total energy consumed |
GJ |
1,348 |
3,087 |
2.909 |
|
Percentage of energy from renewable sources3 |
% |
97% |
68% |
62% |
The decrease in groundwater consumption is related to the closure of the well at our Distribution Center, located in São José dos Campos. This was motivated by a possible contamination from a neighboring property that previously housed a factory. Concurrently, due to migration, there was a delay in meter readings, and as a result, the consumption figure for the quarter will need adjustment in the 3Q2023 report.
During this period, construction began on the Anglo Paulista unit, which will be the new location for the Anglo Course starting in the second semester. The building features modern facilities and offers increased mobility for students. Due to the transfer, both units, Anglo Tamandaré and Anglo Paulista, were considered for reporting water indicators during the quarter.
SOCIAL
|
SDGs |
GRI |
Diversity in the work force by functional category |
Unit |
2Q22 |
1Q23 |
2Q23 |
|
5 |
405-1 |
C-level – Women |
% of people |
20% |
40% |
40% |
|
C-level – Men |
% of people |
80% |
60% |
60% |
||
|
Total – C-level4 |
No. of people |
5 |
5 |
5 |
||
|
Leaders – Women (≥ management level) |
% of people |
47% |
45% |
47% |
||
|
Leaders – Men (≥ management level) |
% of people |
53% |
55% |
53% |
||
|
Total – Leaders (≥ management level)5 |
No. of people |
131 |
138 |
139 |
||
|
Academic faculty – Women |
% of people |
31% |
21% |
18% |
||
|
Academic faculty – Men |
% of people |
69% |
79% |
82% |
||
|
Total – Academic faculty6 |
No. of people |
100 |
85 |
82 |
||
|
Coordinators and Administrative – Women |
% of people |
57% |
56% |
56% |
||
|
Coordinators and Administrative – Men |
% of people |
43% |
44% |
44% |
||
|
Total – Coordinators and Administrative7 |
No. of people |
1,521 |
1.476 |
1,524 |
||
|
Total – Women |
% of people |
54% |
53% |
53% |
||
|
Total – Men |
% of people |
46% |
47% |
47% |
||
|
Total – Employees |
No. of people |
1,757 |
1.704 |
1.752 |
||
|
SDGs |
GRI |
Indirect economic impact |
Unit |
2Q22 |
1Q23 |
2Q23 |
|
4, 10 |
– |
Scholarship holders in Somos Futuro program |
nº |
371 |
247 |
236 |
|
SDGs |
GRI |
Occupational Health and Safety |
Unit |
2Q22 |
1Q23 |
2Q23 |
|
30 |
403-5, 403-9 |
% of units covered by the Environmental Risk Prevention Program |
% |
100% |
100% |
100% |
|
Total employees trained in health and safety8 |
No. of people |
110 |
543 |
729 |
||
|
Average number of hours training in health and safety per participant9 |
No. |
4.4 |
1,6 |
1,3 |
||
|
Injury frequency |
rate |
3.75 |
3,17 |
1,88 |
||
|
Employees – High-consequence injuries |
No. |
ND |
ND |
0 |
||
|
Employees – Recordable injuries rate12 |
rate |
0.94 |
1,06 |
0,94 |
||
|
Employees – Fatality rate13 |
rate |
0.00 |
0,00 |
0,00 |
Diversity
As of the end of the second quarter of 2023, our total headcount was 1,752.
Contacts
Investor Relations
[email protected]
