UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of March, 2018
Commission File Number 001-38055
NETSHOES
(CAYMAN) LIMITED
(Exact name of registrant as specified in its charter)
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The Cayman Islands
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98-1007784
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(State of incorporation or organization)
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(I.R.S. Employer Identification No.)
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Rua Vergueiro 961, Liberdade
01504-001 São Paulo, São Paulo, Brazil
+55 11 3028-3528
(Address, including zip code, and telephone number, including area code, of registrants principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ☐ No ☒
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ☐ No ☒
Netshoes Limited Announces Full Year Invoiced Orders growth of 20%,
FY-2017
GMV growth of 17% or 11% in
4Q-2017
and
FY-2017
Net Sales growth of 9% or 2% in
4Q-2017
year-over-year
São Paulo, Brazil March 28, 2018 Netshoes (Cayman) Ltd. (NYSE:NETS) (Netshoes), Latin
Americas leading online retailer of sporting and lifestyle goods, today reported consolidated financial results for the three and twelve-month periods ending December 31, 2017. The results are stated in Brazilian Reais (R$)
and prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standards Board.
Fourth Quarter and Full Year 2017 Key Highlights:
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Registered Members up 22% year-over-year 2017, reaching 22.2 million members of which 30% were active customers in 2017
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Invoiced Orders up 16% year-over-year in
4Q-2017
and 20% in
FY-2017
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Number of mobile transactions up 71% year-over-year in
FY-2017,
accounting for 51% of total transactions in
4Q-2017
and 46% for
FY-2017
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Total B2C GMV increased 18% year-over-year in
4Q-2017
and 19% in
FY-2017
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Total Consolidated GMV increased 11% year-over-year in
4Q-2017
and 17% for
FY-2017
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Marketplace accounted for 10% of total GMV in
4Q-2017
and 8% for
FY-
2017 (+421% year-over-year)
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EBITDA Brazil increased 68% year-over-year in
FY-2017,
or 194% excluding
non-recurring
effects
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Positive operating cash flow of R$123.8 million in
4Q-2017,
up from R$77,7 million in
4Q-2016,
and R$24.8 million for
FY-2017,
with effective use of factoring arrangements.
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Message form the Founder and CEO, Marcio
Kumruian:
2017 was an important year to focus the company on the core
business-to-consumer
(B2C) operation. The successful IPO enabled the company to strengthen its cash position and capital structure.
The positive metrics achieved by the company during 2017 did not completely translate into improved financial results, as the adverse results from our
business-to-business
(B2B) operation impacted our overall profitability. In
4Q-2017
B2B operation accounted for returns of R$
20.7 million as well as R$7.2 million in provision expenses. In
FY-2017
the B2B negative impact on our operating results amounted to R$29.8 million with an inventory balance of
R$118 million at year end.
Against a challenging backdrop, GMV from our B2C operation in
FY-2017
increased
21.2% on an FX neutral basis, reaching R$2.5 billion. The growth of our private label and marketplace operations more than compensated for an unfavorable taxation and consumption environment in Brazil, contributing to the stabilization of our
gross margin when compared to 2016. Our EBITDA and net margins, excluding B2B, improved with operating leverage.
We continue to invest in technology that
drives a
best-in-class
experience for our customers while at the same time we are streamlining our operations. I am happy to report that in February 2018 we completed
the implementation of an integrated IT sales platform and now all websites that we operate are running on a more robust, agile and fast paced platform.
We recently strengthened our management bench with the addition of seasoned executives bringing solid industry experience to our key growth initiatives.
Looking ahead, we expect more consistent financial performance as our strategic initiatives mature and as we intensively focus on bring our B2B and
international operations back on track to profitability.
1
Operating and Financial Metrics Highlights
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Change%
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Change%
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Operating Data
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4Q-2016
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4Q-2017
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YoY
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YoY FX
Neutral
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FY-2016
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FY-2017
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YoY
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YoY FX
Neutral
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Registered Members (in thousands)
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18,281
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22,231
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21.6
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%
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18,281
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22,231
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21.6
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%
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Active Customers (in thousands)
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5,562
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6,669
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19.9
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%
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5,562
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6,669
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19.9
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%
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Orders Placed by Repeat Customers %
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74.7
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%
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80.2
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%
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+5.5p.p.
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74.5
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%
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77.2
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%
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+2.7p.p.
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Invoiced Orders (in thousands)
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3,495
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4,069
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16.4
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%
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10,268
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12,325
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20.0
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%
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Orders Placed from Mobile Device %
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37.1
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%
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51.0
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%
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+13.9p.p.
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32.2
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%
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46.1
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%
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+13.9p.p.
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Average Basket Size (in R$)
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196.4
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198.3
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0.9
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%
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1.9
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%
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206.6
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203.1
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-1.7
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%
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1.0
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%
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GMV (in millions of R$)
(1)
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734.0
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812.2
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10.7
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%
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11.7
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%
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2,202.4
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2,583.5
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17.3
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%
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19.5
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%
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GMVB2C (in millions of R$)
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686.5
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806.8
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17.5
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%
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18.6
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%
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2,104.8
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2,503.0
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18.9
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%
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21.2
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%
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Marketplace GMV (as % of total GMV)
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3.4
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%
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9.6
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%
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+6.2p.p.
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1.7
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%
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7.7
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%
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+6.0p.p.
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Change%
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Change%
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Financial Data
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4Q-2016
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4Q-2017
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YoY
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YoY FX
Neutral
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FY-2016
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FY-2017
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YoY
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YoY FX
Neutral
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(In R$ Millions, except percentage data)
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Net Sales
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575.8
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586.8
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1.9
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%
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2.9
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%
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1,739.5
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1,889.0
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8.6
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%
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10.6
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%
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Net SalesBrazil
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526.2
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533.5
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1.4
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%
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1,554.4
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1,693.5
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8.9
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%
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Net SalesInternational
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49.6
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53.4
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7.6
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%
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18.9
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%
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185.1
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195.5
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5.6
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%
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24.6
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%
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Net SalesB2C
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544.0
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604.2
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11.1
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%
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12.1
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%
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1,673.7
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1,879.6
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12.3
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%
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14.4
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%
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Gross Margin %
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28.9
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%
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29.3
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%
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+0.4p.p.
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31.7
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%
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31.6
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%
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-0.0p.p.
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EBITDA Margin %
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1.2
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%
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-2.9
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%
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-4.1p.p.
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-2.5
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%
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-2.3
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%
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+0.2p.p.
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(1)
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For a reconciliation of net sales to GMV, see page 10 below.
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Overview of Fourth Quarter and Full Year
2017 Results
Operating Metrics
Registered
members increased 21.6% year-over-year to 22.2 million in
4Q-2017,
while active customers increased 19.9%
year-over-year
to
6.7 million. During the quarter, invoiced orders from repeat customers reached 80.2% of total orders, a 5.5 p.p. increase year-over-year.
The
Company continued migration of consumer purchasing habits to mobile devices, with 51.0% of total orders placed from mobile devices in
4Q-2017,
a 13.9 p.p. increase over
4Q-2016.
The Companys business is organized into two segments: (1) Brazil, which consists of the B2C
operations of Netshoes (sporting goods), Zattini (fashion) and the
business-to-business
(B2B) operation of, mainly, supplements, and (2) International, which
consists of Argentina and Mexico B2C operations.
Total Consolidated GMV in
4Q-2017
increased 10.7% year-over-year
(+18.6% excluding the B2B operation, on an FX neutral basis) to R$812.2 million, mainly driven by the 16.4% Year-over-year increase in the number of invoiced orders, partially offset by the lower B2B sales. GMV for
FY-2017
increased 17.3% year-over-year (+21.2% excluding the B2B operation, on an FX neutral basis) to R$2,583.5 million.
During
4Q-2017,
the Company continued to gain traction in its strategy to drive growth in Netshoes Brazil which
recorded above sector average growth for the fourth consecutive quarter, with 16.0% year-over-year GMV growth. GMV growth for
FY-2017
was 15.1%.
Zattinis fashion and beauty category continues to increase its addressable market through the addition of new categories. GMV increased 35.9%
year-over-year in
4Q-2107
and 63.0% year-over-year in
FY-2017.
Management believes there is potential to accelerate growth with the changes applied to working
capital management, Zattinis team leaders, and the new features from the IT platform.
2
Marketplace is an important portion of the Brazilian business in Netshoes and Zattinis operations. As of
December 31, 2017, the Companys total qualified vendor base was comprised of 733 qualified third-party B2C vendors, an increase of 159% year-over-year. In
FY-2017,
Marketplace GMV amounted to
R$199.6 million, reaching 7.7% of consolidated GMV, an increase of 421.4% year-over-year.
The Companys private label collection brands and
licensing products continue to grow as a proportion of our GMV, reflecting increased sales of the existing portfolio and new licensed products. Sales of products in these categories in
4Q-2017
represented
12.1% of GMV in Brazil (11.6% of consolidated GMV) representing a 1.5 p.p. increase year-over-year and positively contributing to gross margin due to the increase in its share of GMV and its higher category margin when compared to 2016. For
FY-2017,
these categories represented 11.5% in Brazil (10.7% of consolidated GMV). Management sees an exciting opportunity to further develop the assortment of private label products as we further evaluate its
potential in fashion in 2018.
GMV for the B2B operation amounted to R$5.4 million in
4Q-2017
(0.7% of total
Consolidated GMV), a 88.6% decrease from the same period last year as a result of the corrective actions taken during the last quarters with respect to these operations. In
FY-2017,
GMV from the B2B operation
amounted to R$80.5 million (3.1% of total Consolidated GMV), a 17.5% decrease year-over-year.
The Company keeps a rigorous focus on customer
satisfaction ratings, enabling Netshoes to maintain one of the
best-in-class
NPS scores for its marketplace operation.
Revenue
Consolidated net sales were R$586.8 million
in
4Q-2017,
a 1.9% increase year-over-year and up 12.1% year-over-year on the B2C operation, on an FX neutral basis. In
4Q-2017,
R$20.7 million of additional B2B
returns were recorded, reflecting the Companys ongoing corrective actions to mitigate credit risk with clients while setting the foundation for higher margin in future sales through this channel. In
FY-2017,
net sales amounted to R$1,889.0 million, a 8.6% increase year-over-year (+14.4% on the B2C operation, on an FX neutral basis).
In
4Q-2017,
net sales for Brazil increased 1.4% year-over-year to R$533.5 million (+11.4% year-over-year on the
B2C operation). Net sales for
FY-2017
amounted to R$1,693.5 million, up 8.9% year-over-year (+13.1% year-over-year on the B2C operation).
The environment for the International operations is still challenging, particularly in Mexico, where competition from brick and mortar players is strong and
internet penetration in retail is low. Reported net sales for the International operation in
4Q-2017
was R$53.4 million, a 7.6% increase year-over-year on an as reported basis and up 18.9% year-over-year
on an FX neutral basis, mainly supported by strong growth in Argentina, negatively impacted by FX devaluation. In
FY-2017,
net sales for the international operation were R$195.5 million, up 5.6%
Year-over-year (+24.6% year-over-year on an FX neutral basis). For 2018, Management is focused in improving the operations profitability at a lower revenue pace of growth.
Gross Profit
Gross profit in
4Q-2017
increased by 3.4% to R$171.8 million, with gross margin of 29.3%, a 0.4 p.p. margin increase compared to 28.9% gross margin in
4Q-2016.
The effects of a still
pressured consumption environment and unfavorable changes in the
e-commerce
taxation regime in Brazil (since 2016) were more than offset by the higher mix of sales derived from marketplace and private label
products, amongst other initiatives to maximize product margin. In
4Q-2017
a provision for inventory allowances for slow moving was recorded, negatively impacting gross profit and margin during the quarter in
R$5.2 million and 0.9 p.p. respectively. Additionally, gross profit was impacted by R$3.3 million as a result of the returns related to the B2B operation. Gross profit for
FY-2017
increased 8.5% to
R$597.6 million with a 31.6% gross margin, flat when compared to
FY-2016.
For
FY-2017,
the effects of the provision and returns described above net of the positive
effect related to VAT taxes recorded in
1Q-2017
(1)
amounted to negative R$1.3 million.
3
Operating Expenses
Adjusted operating expenses in
4Q-2017
increased 18.4% year-over-year to R$188.6 million. As a percentage of net
sales, adjusted operating expenses were 32.1%, compared to 27.7% in
4Q-2016.
Operating leverage in
4Q-2017
was affected by the provision recorded for bad debt allowances
in the amount of R$2.0 million. In
FY-2017,
adjusted operating expenses increased 7.8% year-over-year to R$640.9 million and represented 33.9% of net sales, a 0.3 p.p. reduction over the 34.2% of net
sales recorded in
FY-2016.
Expenses with provisions for the B2B operation in second half 2017 negatively impacted the
FY-2017
adjusted operating expenses in
R$16.8 million.
Adjusted selling and marketing expenses in
4Q-2017
amounted to R$153.3 million,
representing 26.1% of net sales compared to 21.4% of net sales in
4Q-2016.
This increase was mainly attributed to (i) higher marketing investments and credit card fees as a result of the fast development
of the marketplace initiative; (ii) an increase in sales commissions as percentage of revenues due to higher sales recorded in our partner stores; and (iii) R$2.0 million of an additional provision for bad debt allowances. In
FY-2017,
adjusted selling and marketing expenses amounted to R$504.9 million and represented 26.7% of net sales, compared to 25.1% of net sales in
FY-2016.
The total
negative impact from the provisions for bad debt allowances in
FY-2017
was R$16.8 million.
Adjusted general
and administrative expenses were R$31.7 million in
4Q-2017,
5.4% of net sales compared to R$31.9 million and 5.5% of net sales in
4Q-2016.
For
FY-2017,
adjusted general and administrative expenses were 16.8% lower year-over-year to R$125.6 million, representing 6.7% of net sales, a 2.0 p.p. improvement over
FY-2016.
The
FY-2017
adjusted general and administrative expenses were positively impacted by an R$12.9 million
effect
(2)
related to the Companys stock option plan recorded in
1Q-2017.
EBITDA & Net Income
Consolidated EBITDA loss in
4Q-2017
was R$16.8 million compared to positive R$6.9 million in
4Q-2016.
Consolidated EBITDA margin was negative 2.9%, compared to positive 1.2% in
4Q-2017.
During the quarter, consolidated EBITDA was negatively impacted by the record of R$7.2 million in provisions and R$3.3 million related to returns from the B2B operation. EBITDA loss for FY2017 was
R$43.3 million compared to R$43.9 million loss in
FY-2016,
with negative EBITDA margin of 2.3% and 2.5% respectively.
Non-recurring
effects
(
1
)(
2
)
, the provisions and returns with respect to B2B operation amounted to R$6.8 million in
FY-2017.
EBITDA for our Brazilian operation in
4Q-2017
was negative R$1.5 million compared to positive R$20.7 million
in
4Q-2016,
with EBITDA margin of
-0.3%
and 3.9% respectively. During the quarter EBITDA was negatively impacted by R$7.2 million in provisions and
R$3.3 million related to returns from the B2B operation. EBITDA Brazil for
FY-2017
was R$9.1 million, compared to R$5.4 million in
FY-2016.
EBITDA margin
increased 0.2 p.p. year-over-year to 0.5% in
FY-2017,
from 0.3% EBITDA margin in the
FY-2016.
Non-recurring
effects
(1)(2)
, the recorded provisions and returns with respect to our B2B operation amounted to R$6.8 million in
FY-2017.
EBITDA loss for the International operations in
4Q-2017
was R$12.4 million, compared to R$11.9 million in
4Q-2016.
EBITDA margin was negative 23.3% in
4Q-2017,
improving 0.7 p.p. over
4Q-2016.
EBITDA International loss for
FY-2017
was R$41.6 million
(-21.3%
EBITDA margin) compared to a loss of R$41.0 million
(-22.2%
EBITDA margin) in
FY-2016.
Consolidated net loss was R$49.7 million in
4Q-2017,
with
negative 8.5% net margin, compared to net loss of R$26.3 million with negative 4.6% net margin in
4Q-2016.
In
FY-2017,
net loss was R$170.3 million with
negative 9.0% net margin, compared to R$151.9 million and negative 8.7% net margin in FY2016, a 0.3 p.p. year-over-year margin decrease. FY2017
non-recurring
effects, provisions and the adjustment
mentioned above amounted to R$15.0 million.
1
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R$10.1 million
non-recurring
positive effect on cost of sales relative to VAT tax credits registered in
1Q-2017.
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2
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R$12.9 million
non-recurring
positive effect under personnel expenses related to adjustments in the Companys stock option plan registered in
1Q-2017.
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4
Financial and Operating Performance
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Change%
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Change%
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Consolidated P&L (In R$ Millions)
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4Q-2016
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4Q-2017
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YoY
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FX
Neutral
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FY-2016
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FY-2017
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YoY
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FX
Neutral
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GMV¹
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734.0
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812.2
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10.7
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%
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11.7
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%
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2,202.4
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2,583.5
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|
|
|
17.3
|
%
|
|
|
19.5
|
%
|
Net SalesBrazil
|
|
|
526.2
|
|
|
|
533.5
|
|
|
|
1.4
|
%
|
|
|
|
|
|
|
1,554.4
|
|
|
|
1,693.5
|
|
|
|
8.9
|
%
|
|
|
|
|
Net SalesInternational
|
|
|
49.6
|
|
|
|
53.4
|
|
|
|
7.6
|
%
|
|
|
18.9
|
%
|
|
|
185.1
|
|
|
|
195.5
|
|
|
|
5.6
|
%
|
|
|
24.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
575.8
|
|
|
|
586.8
|
|
|
|
1.9
|
%
|
|
|
2.9
|
%
|
|
|
1,739.5
|
|
|
|
1,889.0
|
|
|
|
8.6
|
%
|
|
|
10.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales
|
|
|
(409.6
|
)
|
|
|
(415.0
|
)
|
|
|
1.3
|
%
|
|
|
|
|
|
|
(1,188.7
|
)
|
|
|
(1,291.4
|
)
|
|
|
8.6
|
%
|
|
|
|
|
Gross Profit
|
|
|
166.2
|
|
|
|
171.8
|
|
|
|
3.4
|
%
|
|
|
|
|
|
|
550.8
|
|
|
|
597.6
|
|
|
|
8.5
|
%
|
|
|
|
|
% Gross Margin
|
|
|
28.9
|
%
|
|
|
29.3
|
%
|
|
|
0.4p.p.
|
|
|
|
|
|
|
|
31.7
|
%
|
|
|
31.6
|
%
|
|
|
-0.0p.p.
|
|
|
|
|
|
Adjusted Operating Expenses
|
|
|
(159.3
|
)
|
|
|
(188.6
|
)
|
|
|
18.4
|
%
|
|
|
|
|
|
|
(594.7
|
)
|
|
|
(640.9
|
)
|
|
|
7.8
|
%
|
|
|
|
|
% of Sales
|
|
|
(27.7
|
)%
|
|
|
(32.1
|
)%
|
|
|
4.5p.p.
|
|
|
|
|
|
|
|
(34.2
|
)%
|
|
|
(33.9
|
)%
|
|
|
-0.3p.p.
|
|
|
|
|
|
Adjusted Selling & Mkt. Expenses²
|
|
|
(123.0
|
)
|
|
|
(153.3
|
)
|
|
|
24.6
|
%
|
|
|
|
|
|
|
(436.1
|
)
|
|
|
(504.9
|
)
|
|
|
15.8
|
%
|
|
|
|
|
% of Sales
|
|
|
(21.4
|
)%
|
|
|
(26.1
|
)%
|
|
|
4.8p.p.
|
|
|
|
|
|
|
|
(25.1
|
)%
|
|
|
(26.7
|
)%
|
|
|
1.7p.p.
|
|
|
|
|
|
Adjusted General & Adm. Expenses²
|
|
|
(31.9
|
)
|
|
|
(31.7
|
)
|
|
|
(0.7
|
)%
|
|
|
|
|
|
|
(151.0
|
)
|
|
|
(125.6
|
)
|
|
|
(16.8
|
)%
|
|
|
|
|
% of Sales
|
|
|
(5.5
|
)%
|
|
|
(5.4
|
)%
|
|
|
-0.1p.p.
|
|
|
|
|
|
|
|
(8.7
|
)%
|
|
|
(6.7
|
)%
|
|
|
-2.0p.p.
|
|
|
|
|
|
Other Operating Expenses
|
|
|
(1.2
|
)
|
|
|
(0.7
|
)
|
|
|
(39.3
|
)%
|
|
|
|
|
|
|
(5.3
|
)
|
|
|
(3.9
|
)
|
|
|
(25.1
|
)%
|
|
|
|
|
% of Sales
|
|
|
(0.2
|
)%
|
|
|
(0.1
|
)%
|
|
|
-0.1p.p.
|
|
|
|
|
|
|
|
(0.3
|
)%
|
|
|
(0.2
|
)%
|
|
|
-0.1p.p.
|
|
|
|
|
|
Certain Other Net Financial Result
|
|
|
(3.2
|
)
|
|
|
(2.9
|
)
|
|
|
(9.3
|
)%
|
|
|
|
|
|
|
(2.4
|
)
|
|
|
(6.4
|
)
|
|
|
171.4
|
%
|
|
|
|
|
% of Sales
|
|
|
(0.6
|
)%
|
|
|
(0.5
|
)%
|
|
|
-0.1p.p.
|
|
|
|
|
|
|
|
(0.1
|
)%
|
|
|
(0.3
|
)%
|
|
|
0.2p.p.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
6.9
|
|
|
|
(16.8
|
)
|
|
|
(345.4
|
)%
|
|
|
|
|
|
|
(43.9
|
)
|
|
|
(43.3
|
)
|
|
|
1.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Sales
|
|
|
1.2
|
%
|
|
|
(2.9
|
)%
|
|
|
-4.1p.p.
|
|
|
|
|
|
|
|
(2.5
|
)%
|
|
|
(2.3
|
)%
|
|
|
0.2p.p.
|
|
|
|
|
|
Amortization and Depreciation
|
|
|
(7.9
|
)
|
|
|
(8.8
|
)
|
|
|
11.4
|
%
|
|
|
|
|
|
|
(31.2
|
)
|
|
|
(31.8
|
)
|
|
|
2.0
|
%
|
|
|
|
|
% of Sales
|
|
|
(1.4
|
)%
|
|
|
(1.5
|
)%
|
|
|
0.1p.p.
|
|
|
|
|
|
|
|
(1.8
|
)%
|
|
|
(1.7
|
)%
|
|
|
-0.1p.p.
|
|
|
|
|
|
Net Adjusted Financial Result³
|
|
|
(25.2
|
)
|
|
|
(24.1
|
)
|
|
|
(4.7
|
)%
|
|
|
|
|
|
|
(76.8
|
)
|
|
|
(95.2
|
)
|
|
|
24.0
|
%
|
|
|
|
|
% of Sales
|
|
|
(4.4
|
)%
|
|
|
(4.1
|
)%
|
|
|
-0.3p.p.
|
|
|
|
|
|
|
|
(4.4
|
)%
|
|
|
(5.0
|
)%
|
|
|
0.6p.p.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Before Income Tax
|
|
|
(26.3
|
)
|
|
|
(49.7
|
)
|
|
|
(88.9
|
)%
|
|
|
|
|
|
|
(151.9
|
)
|
|
|
(170.3
|
)
|
|
|
(12.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Sales
|
|
|
(4.6
|
)%
|
|
|
(8.5
|
)%
|
|
|
-3.9p.p.
|
|
|
|
|
|
|
|
(8.7
|
)%
|
|
|
(9.0
|
)%
|
|
|
-0.3p.p.
|
|
|
|
|
|
Current Income Tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
|
(26.3
|
)
|
|
|
(49.7
|
)
|
|
|
(88.9
|
)%
|
|
|
|
|
|
|
(151.9
|
)
|
|
|
(170.3
|
)
|
|
|
(12.1
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Sales
|
|
|
(4.6
|
)%
|
|
|
(8.5
|
)%
|
|
|
-3.9p.p.
|
|
|
|
|
|
|
|
(8.7
|
)%
|
|
|
(9.0
|
)%
|
|
|
-0.3p.p.
|
|
|
|
|
|
(1)
|
For a reconciliation of net sales to GMV, see page 10 below.
|
(2)
|
For a reconciliation of Marketing and Selling expenses to Adjusted Marketing and Selling Expenses and General and Administrative Expenses to Adjusted General and Administrative Expenses, see page 12 below.
|
(3)
|
For a reconciliation of financial income (expense) to Net Adjusted Financial Result, see page 11 below.
|
5
Balance Sheet and Cash Flow
Cash and cash equivalent at December 31, 2017 were R$396,0 million, compared to R$111,3 million at December 31, 2016, reflecting net
proceeds from the
2Q-2017
Initial Public Offering as well as R$ 138.5 million in cash flow consumption during 2017.
The Company generated positive net cash flow from operating activities of R$123.8 million in
4Q-2017
versus
R$77.7 million in
4Q-2016.
For the twelve months ended December 31, 2017 net cash provided by operating activities was R$ 24.8 million versus a use of cash of R$ 20.9 million for the twelve
months ended December 31, 2016. Excluding the contribution from factoring of receivables, operating cash flow in the quarter improved by R$28.9 million year-over-year and by R$79.3 million year-over-year in
FY-2017.
Cash used in investing activities amounted to R$14.2 million in
4Q-2017
and R$49.0 million in
FY-2017.
These investments were mainly related to the development of the Companys Information Technology infrastructure and the
regular maintenance of the Companys distribution centers.
Cash used in financing activities amounted to R$29.0 million in
4Q-2017
and was mainly related to interest payments on the Companys financial debt. In
FY-2017
financial activities provided R$302.1 million derived from the funds
raised in the April 2017 IPO and new contracted financial debt, net of payment of principal and interests on the Companys total financial debt.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow Statement (In R$ Millions)
|
|
4Q-2016
|
|
|
4Q-2017
|
|
|
FY-2016
|
|
|
FY-2017
|
|
Net loss
|
|
|
(26.3
|
)
|
|
|
(49.7
|
)
|
|
|
(151.9
|
)
|
|
|
(170.3
|
)
|
Depreciation and amortization
|
|
|
8.9
|
|
|
|
8.8
|
|
|
|
31.2
|
|
|
|
31.8
|
|
Interest expense, net
|
|
|
22.1
|
|
|
|
27.3
|
|
|
|
92.4
|
|
|
|
112.8
|
|
Others
|
|
|
(5.4
|
)
|
|
|
12.1
|
|
|
|
5.0
|
|
|
|
27.5
|
|
Adjusted Net Loss
|
|
|
(0.7
|
)
|
|
|
(1.4
|
)
|
|
|
(23.3
|
)
|
|
|
1.7
|
|
Trade accounts receivable
|
|
|
(70.2
|
)
|
|
|
(38.0
|
)
|
|
|
67.9
|
|
|
|
74.5
|
|
Inventories
|
|
|
43.3
|
|
|
|
(18.3
|
)
|
|
|
(77.2
|
)
|
|
|
(114.1
|
)
|
Trade accounts payable / Reverse Factoring
|
|
|
76.5
|
|
|
|
173.2
|
|
|
|
102.7
|
|
|
|
155.4
|
|
Changes in Working Capital
|
|
|
49.7
|
|
|
|
116.8
|
|
|
|
93.4
|
|
|
|
115.7
|
|
Restricted Cash
|
|
|
(2.0
|
)
|
|
|
(4.4
|
)
|
|
|
(0.0
|
)
|
|
|
2.5
|
|
Recoverable taxes
|
|
|
(9.9
|
)
|
|
|
(3.7
|
)
|
|
|
(56.5
|
)
|
|
|
(52.7
|
)
|
Judicial deposits
|
|
|
(12.1
|
)
|
|
|
(4.4
|
)
|
|
|
(39.9
|
)
|
|
|
(35.1
|
)
|
Accrued expenses
|
|
|
52.9
|
|
|
|
27.7
|
|
|
|
29.5
|
|
|
|
(1.9
|
)
|
Others
|
|
|
(0.1
|
)
|
|
|
(6.8
|
)
|
|
|
(23.9
|
)
|
|
|
(5.4
|
)
|
Total Changes in Assets and Liabilities
|
|
|
28.7
|
|
|
|
8.4
|
|
|
|
(90.9
|
)
|
|
|
(92.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by (Used In) Operating Activities
|
|
|
77.7
|
|
|
|
123.8
|
|
|
|
(20.9
|
)
|
|
|
24.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capex
|
|
|
(12.5
|
)
|
|
|
(14.0
|
)
|
|
|
(72.3
|
)
|
|
|
(57.3
|
)
|
Interest received on installment sales
|
|
|
5.4
|
|
|
|
1.0
|
|
|
|
7.0
|
|
|
|
2.1
|
|
Restricted cash
|
|
|
5.7
|
|
|
|
(1.2
|
)
|
|
|
0.8
|
|
|
|
6.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by (Used in) Investing Activities
|
|
|
(1.3
|
)
|
|
|
(14.2
|
)
|
|
|
(64.6
|
)
|
|
|
(49.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds / Payment of debt
|
|
|
(10.9
|
)
|
|
|
(1.5
|
)
|
|
|
60.1
|
|
|
|
(10.5
|
)
|
Payments of interest
|
|
|
(24.5
|
)
|
|
|
(27.2
|
)
|
|
|
(107.3
|
)
|
|
|
(110.6
|
)
|
Proceeds from issuance of common stock
|
|
|
0.0
|
|
|
|
(0.2
|
)
|
|
|
0.0
|
|
|
|
423.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by (Used in) Financing Activities
|
|
|
(35.3
|
)
|
|
|
(29.0
|
)
|
|
|
(47.2
|
)
|
|
|
302.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(2.0
|
)
|
|
|
1.4
|
|
|
|
(5.1
|
)
|
|
|
6.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Cash and Cash Equivalents
|
|
|
39.0
|
|
|
|
82.0
|
|
|
|
(137.8
|
)
|
|
|
284.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
72.3
|
|
|
|
313.9
|
|
|
|
249.1
|
|
|
|
111.3
|
|
Cash and cash equivalents, end of period
|
|
|
111.3
|
|
|
|
396.0
|
|
|
|
111.3
|
|
|
|
396.0
|
|
6
In
4Q-2017,
the Companys Net working capital cycle was 7 days,
a 27 days reduction over
4Q-2016.
Trade accounts receivable cycle was reduced by 20 days
year-over-year
to 18 days in
4Q-2017
mainly due to an increase in the factoring of credit card receivables when compared to last
year (as further discussed below) and to a lesser extent the increase in the minimum amount for installment payments.
Inventory cycle increased
23 days when compared to
4Q-2016
mainly impacted by the corrective actions taken in the B2B business. The inventory cycle of the B2C operation was 108 days in
4Q-2017,
15 days lower when compared to 123 days in
4Q-2016
and 9 days lower than the 117 days recorded in
3Q-2017,
putting the Company closer to achieving the target of 90 to 100 days by the end of 2018.
Trade accounts
payable cycle increased 31 days to 156 days, reflecting new reverse-factoring credit line opportunities, extended payment terms with no net financial impact, and corrective actions taken in the B2B business. Trade accounts payable
cycle during the next quarters should stabilize between 110 and 120 days, due to business seasonality.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Working Capital Cycle
|
|
3Q-2016
|
|
|
4Q-2016
|
|
|
3Q-2017
|
|
|
4Q-2017
|
|
|
|
(In days)
|
|
Trade Accounts Receivable
|
|
|
26
|
|
|
|
38
|
|
|
|
13
|
|
|
|
18
|
|
Inventories
|
|
|
144
|
|
|
|
121
|
|
|
|
141
|
|
|
|
144
|
|
Trade Accounts Payable / Reverse Factoring
|
|
|
107
|
|
|
|
125
|
|
|
|
110
|
|
|
|
156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Conversion Cycle
|
|
|
63
|
|
|
|
34
|
|
|
|
44
|
|
|
|
7
|
|
In
4Q-2017
net cash position was R$144.4 million, compared to net debt of
R$232.9 million in
4Q-2016.
The improvement was mainly due to the funds raised in the April 2017 IPO.
In
4Q-2017,
there were no material changes in the Companys total debt when compared to
3Q-2017
as R$24.1 million of the existing debt was amortized following regular
payment schedule and R$25.8 million was received as part of the first tranche (out of three) of a subsidized R$79.7 million credit line with FINEP (a Brazilian
state-owned
institution dedicated to
fostering the countrys development in science, technology and innovation), to be amortized over nine years. The increase of R$87.7 million in the Companys total cash position (including restricted cash) was a result of the strong
operating cash flow generated during the period.
|
|
|
|
|
|
|
|
|
|
|
|
|
INDEBTEDNESS
|
|
4Q-2016
|
|
|
3Q-2017
|
|
|
4Q-2017
|
|
|
|
(In R$ Millions)
|
|
Working Capital
|
|
|
263.7
|
|
|
|
191.5
|
|
|
|
175.0
|
|
Short-term
|
|
|
36.4
|
|
|
|
67.3
|
|
|
|
68.3
|
|
Long-term
|
|
|
227.2
|
|
|
|
124.2
|
|
|
|
106.7
|
|
Debenture
|
|
|
122.3
|
|
|
|
93.7
|
|
|
|
84.2
|
|
Short-term
|
|
|
38.6
|
|
|
|
38.0
|
|
|
|
37.7
|
|
Long-term
|
|
|
83.6
|
|
|
|
55.8
|
|
|
|
46.5
|
|
Other
|
|
|
1.4
|
|
|
|
1.5
|
|
|
|
26.7
|
|
Short-term
|
|
|
0.9
|
|
|
|
1.5
|
|
|
|
0.5
|
|
Long-term
|
|
|
0.5
|
|
|
|
(0.0
|
)
|
|
|
26.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL DEBT (R$)
|
|
|
387.4
|
|
|
|
286.7
|
|
|
|
286.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term (%)
|
|
|
20
|
%
|
|
|
37
|
%
|
|
|
37
|
%
|
Long-term (%)
|
|
|
80
|
%
|
|
|
63
|
%
|
|
|
63
|
%
|
(-) Total Cash
|
|
|
(154.5
|
)
|
|
|
(342.7
|
)
|
|
|
(430.4
|
)
|
Cash and Cash Equivalents
|
|
|
(111.3
|
)
|
|
|
(313.9
|
)
|
|
|
(396.0
|
)
|
Restricted Cash
|
|
|
(43.2
|
)
|
|
|
(28.8
|
)
|
|
|
(34.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET DEBT (R$)
|
|
|
232.9
|
|
|
|
(56.0
|
)
|
|
|
(144.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7
Other News Subsequent Events
New Chief Financial Officer (CFO): In February 2018, as previously announced, Mr. Alexandre Olivieri joined Netshoes as the new CFO with the mandate to
ensure the Company maintains a high level of corporate governance, builds a skilled team, implements processes and controls and executes its mid and
long-term
strategies in order to achieve sustainable growth.
Mr. Olivieri brings to Netshoes many years of financial experience, including as CFO, at a diverse group of consumer related companies, such as Grupo São Francisco, a Brazilian healthcare company, Fastshop, Hypermarcas and ELOG
Logística. Other key skillsets include marketing, supply chain and strategic planning at Braskem and
Coca-Cola
FEMSA, respectively. He began his career as senior associate at McKinsey & Co.
Mr. Olivieri holds an industrial engineering degree from the University of São Paulo (
Universidade de São Paulo
), and a post-graduate degree in finance from Fundação Getúlio Vargas. Mr. Olivieri
also holds an MBA from Bocconi School of Management.
4Q-2017
&
FY-2017
Earnings Conference Call
A conference call with live webcast will be held tomorrow, March 29,
2018 at 8:30 am (Eastern Time).
Investors and other interested participants can access the call by dialing
1-877-883-0383
in the U.S. and
1-412-902-6506
internationally. The passcode for the conference line is 1949511. An archived webcast will be available on our IR website. For more information visit: http://investor.netshoes.com.
About Netshoes
Founded in 2000, Netshoes is the
leading sports and lifestyle online retailer in Latin America and one of the largest online retailers in the region, with operations in Brazil, Argentina, and Mexico. Through the websites Netshoes, Zattini and Shoestock, as well as through
partner-branded store sites the Company manages, it offers customers a wide selection of products and services for sports, fashion and beauty.
Core to
the Companys success has been a relentless focus on delivering a superior customer experience. As one of the first companies in Latin America to provide online retail offerings, Netshoes benefits from its early mover advantage, which has
allowed the Company to capture significant market share and achieve a leadership position in a large and expanding addressable market. For more information, visit: http://investor.netshoes.com
Investor Relations Contact
Otavio Lyra, Investor
Relations Officer
São Paulo, Brazil
Phone: +55
11
3028-3528
Email: ir@netshoes.com
http://investor.netshoes.com
8
Forward-Looking
Statements
This press release, prepared by Netshoes (Cayman) Limited (the Company), contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange of 1934, as amended. Statements contained herein that are not clearly historical in nature, including statements about the Companys
strategies and business plans, are forward-looking, and the words anticipate, believe, continues, expect, estimate, intend, strategy, project and similar
expressions and future or conditional verbs such as will, would, should, could, might, can, may, or similar expressions are generally intended to identify
forward-looking statements. The Company may also make forward-looking statements in its periodic reports filed with the U.S. Securities and Exchange Commission (the SEC), in press releases and other written materials and in oral
statements made by its officers and directors. These forward-looking statements speak only as of the date they are made and are based on the Companys current plans and expectations and are subject to a number of known and unknown uncertainties
and risks, many of which are beyond the Companys control. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Companys
goals and strategies; Companys future business development; Companys ability to maintain sufficient working capital, the continued growth of eCommerce in Latin America, the Companys ability to predict and react to changes in
consumer demand or shopping patterns, Companys ability to retain or increase engagement of consumers, Companys ability to maintain or grow its net sales or business, general economic and political conditions in the countries where it
operates. Further information regarding these and other risks is included in the Companys filings with the SEC. As a consequence, current plans, anticipated actions and future financial position and results of operations may differ
significantly from those expressed in any forward-looking statements in this announcement. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented as there is no guarantee that expected
events, trends or results will actually occur. We undertake no obligation to update any forward-looking statements, whether as a result of new information or future events or for any other reason.
This press release may also contain estimates and other information concerning our industry that are based on industry publications, surveys and forecasts.
This information involves a number of assumptions and limitations, and have not independently verified the accuracy or completeness of the information.
Non-IFRS
Financial Measures
The Company presents
non-IFRS
measures when it believes that the additional information is useful and meaningful to
investors.
Non-IFRS
financial measures do not have any standardized meaning and are therefore unlikely to be comparable to similar measures presented by other companies. The presentation of
non-IFRS
financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with International Financial Reporting Standards
(IFRS), as issued by the International Accounting Standards Board.
This press release includes unaudited
non-IFRS
financial measures, including GMV, Adjusted Selling and Marketing Expenses, Adjusted General and Administrative Expenses, Net Adjusted Financial Result, Certain Other Net Financial Result, Adjusted
Operating Expenses, EBITDA, EBITDA Margin, EBITDA Brazil and EBITDA International.
(1): GMV is defined as the sum of net sales, returns, GMV
from marketplace and net sales taxes, less marketplace and NCard activation commission fees;
(2) Adjusted Selling and Marketing Expenses is
defined as selling and marketing expenses less amortization and depreciation expenses;
(3) Adjusted General and Administrative Expenses is
defined as general and administrative expenses less amortization and depreciation expenses;
9
(4) Net Adjusted Financial Result is defined as the sum of financial income and financial expenses
less Certain Other Net Financial Result;
(5) Certain Other Net Financial Result is defined as the sum of foreign exchange
gains/losses, derivative financial instruments gains/losses, bank charges and other financial income/expenses;
(6) Adjusted Operating
Expenses is defined as operating expenses (selling and marketing, general and administrative and other operating expenses) less amortization and depreciation expenses, plus Certain Other Net Financial Result;
(7) EBITDA is defined as net income/loss, plus net adjusted financial result, plus income tax, plus depreciation and amortization expenses;
(8) EBITDA Brazil is defined as net income/loss, plus net adjusted financial result, plus income tax, plus depreciation and amortization expenses;
(9) EBITDA International is defined as net income/loss, plus net adjusted financial result, plus income tax, plus depreciation and
amortization expenses;
(10) EBITDA Margin is defined as EBITDA divided by net sales for the relevant period, expressed as a percentage.
The following table shows the reconciliation for GMV, as described above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GMVReconciliation
|
|
4Q-2016
|
|
|
4Q-2017
|
|
|
FY-2016
|
|
|
FY-2017
|
|
|
|
(In R$ Millions)
|
|
Net sales
|
|
|
575.8
|
|
|
|
586.8
|
|
|
|
1,739.5
|
|
|
|
1,889.0
|
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales taxes, net
|
|
|
91.8
|
|
|
|
104.5
|
|
|
|
291.6
|
|
|
|
336.4
|
|
Returns
|
|
|
47.6
|
|
|
|
57.8
|
|
|
|
142.4
|
|
|
|
199.4
|
|
Marketplace commission fees
|
|
|
(5.6
|
)
|
|
|
(14.1
|
)
|
|
|
(9.1
|
)
|
|
|
(38.9
|
)
|
NCard activation commission fees
|
|
|
(0.2
|
)
|
|
|
(0.7
|
)
|
|
|
(0.4
|
)
|
|
|
(2.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-Total:
|
|
|
709.3
|
|
|
|
734.2
|
|
|
|
2,164.1
|
|
|
|
2,383.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GMV from marketplace
|
|
|
24.6
|
|
|
|
78.0
|
|
|
|
38.3
|
|
|
|
199.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GMV
|
|
|
734.0
|
|
|
|
812.2
|
|
|
|
2,202.4
|
|
|
|
2,583.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10
The following table shows the reconciliation for Net Adjusted Financial Result and Certain Other Net Financial
Result as described above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Adjusted Financial Result Reconciliation
|
|
4Q-2016
|
|
|
4Q-2017
|
|
|
FY-2016
|
|
|
FY-2017
|
|
|
|
(In R$ Millions)
|
|
Financial Income
|
|
|
7.3
|
|
|
|
5.6
|
|
|
|
28.4
|
|
|
|
30.1
|
|
Financial Expenses
|
|
|
(35.7
|
)
|
|
|
(32.5
|
)
|
|
|
(107.6
|
)
|
|
|
(131.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Financial Result
|
|
|
(28.4
|
)
|
|
|
(27.0
|
)
|
|
|
(79.2
|
)
|
|
|
(101.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtract Certain Other Net Financial Result:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certain Other Financial Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange gain
|
|
|
0.8
|
|
|
|
(0.3
|
)
|
|
|
(2.1
|
)
|
|
|
(1.9
|
)
|
Derivative financial instruments gain
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
(0.8
|
)
|
Other Financial Income
|
|
|
(0.2
|
)
|
|
|
(0.0
|
)
|
|
|
(0.9
|
)
|
|
|
(0.6
|
)
|
Certain Other Financial Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange loss
|
|
|
0.0
|
|
|
|
1.5
|
|
|
|
0.0
|
|
|
|
2.3
|
|
Derivative financial instruments loss
|
|
|
1.2
|
|
|
|
0.0
|
|
|
|
1.2
|
|
|
|
0.0
|
|
Bank charges
|
|
|
1.1
|
|
|
|
1.6
|
|
|
|
3.0
|
|
|
|
6.5
|
|
Other Financial Expenses
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
1.1
|
|
|
|
0.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Adjusted Financial Result
|
|
|
(25.2
|
)
|
|
|
(24.1
|
)
|
|
|
(76.8
|
)
|
|
|
(95.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1)
Net Financial Result:
consists of
Interest income/expenses, Imputed interest on installment sales, Imputed
interest on credit purchases, Debt issuance costs, Foreign exchange gains/loss, Derivative financial instruments gains/loss, Bank charges and Other financial income/expenses.
The following table shows the reconciliation for EBITDA, EBITDA Margin, EBITDA Brazil and EBITDA International as described above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
(1)
EBITDA Reconciliation
|
|
4Q-2016
|
|
|
4Q-2017
|
|
|
FY-2016
|
|
|
FY-2017
|
|
|
|
(In R$ Millions)
|
|
Net loss
|
|
|
(26.3
|
)
|
|
|
(49.7
|
)
|
|
|
(151.9
|
)
|
|
|
(170.3
|
)
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
Net Adjusted Financial Result
|
|
|
25.2
|
|
|
|
24.1
|
|
|
|
76.8
|
|
|
|
95.2
|
|
Amortization and Depreciation
|
|
|
7.9
|
|
|
|
8.8
|
|
|
|
31.2
|
|
|
|
31.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
6.9
|
|
|
|
(16.8
|
)
|
|
|
(43.9
|
)
|
|
|
(43.3
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
575.8
|
|
|
|
586.8
|
|
|
|
1,739.5
|
|
|
|
1,889.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Margin %
|
|
|
1.2
|
%
|
|
|
-2.9
|
%
|
|
|
-2.5
|
%
|
|
|
-2.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Consolidated EBITDA includes Corporate/Holding expenses not included in EBITDA Brazil and EBITDA International.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Brazil Reconciliation
|
|
4Q-2016
|
|
|
4Q-2017
|
|
|
FY-2016
|
|
|
FY-2017
|
|
|
|
(In R$ Millions)
|
|
Net loss
|
|
|
(9.7
|
)
|
|
|
(30.6
|
)
|
|
|
(88.2
|
)
|
|
|
(102.4
|
)
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
Net Adjusted Financial Result
|
|
|
23.3
|
|
|
|
21.5
|
|
|
|
65.9
|
|
|
|
84.0
|
|
Amortization and Depreciation
|
|
|
7.0
|
|
|
|
7.6
|
|
|
|
27.8
|
|
|
|
27.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
20.7
|
|
|
|
(1.5
|
)
|
|
|
5.4
|
|
|
|
9.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
526.2
|
|
|
|
533.5
|
|
|
|
1,554.4
|
|
|
|
1,693.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Margin %
|
|
|
3.9
|
%
|
|
|
-0.3
|
%
|
|
|
0.3
|
%
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA International Reconciliation
|
|
4Q-2016
|
|
|
4Q-2017
|
|
|
FY-2016
|
|
|
FY-2017
|
|
|
|
(In R$ Millions)
|
|
Net loss
|
|
|
(15.4
|
)
|
|
|
(15.3
|
)
|
|
|
(53.3
|
)
|
|
|
(51.8
|
)
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
|
|
0.0
|
|
Net Adjusted Financial Result
|
|
|
3.2
|
|
|
|
2.6
|
|
|
|
11.0
|
|
|
|
9.3
|
|
Amortization and Depreciation
|
|
|
0.3
|
|
|
|
0.2
|
|
|
|
1.3
|
|
|
|
1.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
(11.9
|
)
|
|
|
(12.4
|
)
|
|
|
(41.0
|
)
|
|
|
(41.6
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
49.6
|
|
|
|
53.4
|
|
|
|
185.1
|
|
|
|
195.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Margin %
|
|
-24.0%
|
|
|
-23.3%
|
|
|
-22.2%
|
|
|
-21.3%
|
|
The following table shows the reconciliation for Adjusted Operating Expenses, as described above:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Expenses Reconciliation
|
|
4Q-2016
|
|
|
4Q-2017
|
|
|
FY-2016
|
|
|
FY-2017
|
|
|
|
(In R$ Millions)
|
|
Selling and Marketing Expenses
|
|
|
(124.9
|
)
|
|
|
(154.5
|
)
|
|
|
(443.7
|
)
|
|
|
(509.2
|
)
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization and Depreciation
|
|
|
1.9
|
|
|
|
1.2
|
|
|
|
7.6
|
|
|
|
4.3
|
|
Adjusted Selling and Marketing Expenses
|
|
|
(123.0
|
)
|
|
|
(153.3
|
)
|
|
|
(436.1
|
)
|
|
|
(504.9
|
)
|
General and Administrative Expenses
|
|
|
(37.9
|
)
|
|
|
(39.3
|
)
|
|
|
(174.6
|
)
|
|
|
(153.1
|
)
|
Add (subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization and Depreciation
|
|
|
6.0
|
|
|
|
7.7
|
|
|
|
23.6
|
|
|
|
27.5
|
|
Adjusted General and Administrative Expenses
|
|
|
(31.9
|
)
|
|
|
(31.6
|
)
|
|
|
(151.0
|
)
|
|
|
(125.6
|
)
|
Other Operating Expenses
|
|
|
(1.2
|
)
|
|
|
(0.7
|
)
|
|
|
(5.3
|
)
|
|
|
(3.9
|
)
|
Certain Other Net Financial Result
|
|
|
(3.2
|
)
|
|
|
(2.9
|
)
|
|
|
(2.4
|
)
|
|
|
(6.4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Expenses
|
|
|
(159.3
|
)
|
|
|
(188.6
|
)
|
|
|
(594.7
|
)
|
|
|
(640.87
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table shows a summary of the described impacts on EBITDA and Net Loss in 2017:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMPACT ON EBITDA
|
|
P&L line
|
|
|
1Q17
|
|
|
2Q17
|
|
|
3Q17
|
|
|
4Q17
|
|
|
FY17
|
|
|
|
|
|
|
(R$ millions)
|
|
B2B Returns
|
|
|
|
|
|
|
|
|
|
|
(2.1
|
)
|
|
|
(2.5
|
)
|
|
|
(3.3
|
)
|
|
|
(7.9
|
)
|
VAT Taxes
|
|
|
COGS
|
|
|
|
10.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1
|
|
B2B Inventory allowances for slow moving
|
|
|
COGS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5.2
|
)
|
|
|
(5.2
|
)
|
B2B bad debt allowances
|
|
|
Selling Expenses
|
|
|
|
|
|
|
|
|
|
|
|
(14.7
|
)
|
|
|
(2.0
|
)
|
|
|
(16.8
|
)
|
SOP
|
|
|
G&A
|
|
|
|
12.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL IMPACT ON EBITDA
|
|
|
|
|
|
|
23.0
|
|
|
|
(2.1
|
)
|
|
|
(17.2
|
)
|
|
|
(10.5
|
)
|
|
|
(6.8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMPACT ON NET LOSS
|
|
|
P&L line
|
|
|
|
1Q17
|
|
|
|
2Q17
|
|
|
|
3Q17
|
|
|
|
4Q17
|
|
|
|
FY17
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impacts on EBITDA
|
|
|
EBITDA
|
|
|
|
23.0
|
|
|
|
(2.1
|
)
|
|
|
(17.2
|
)
|
|
|
(10.5
|
)
|
|
|
(6.8
|
)
|
APV calculation adjustments
|
|
|
Financial Result
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8.2
|
)
|
|
|
(8.2
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL IMPACT ON NET LOSS
|
|
|
|
|
|
|
23.0
|
|
|
|
(2.1
|
)
|
|
|
(17.2
|
)
|
|
|
(18.7
|
)
|
|
|
(15.0
|
)
|
12
Certain Definitions:
Registered members
Is the sum of all people that have
completed the registration form in all the Companys websites.
Active customers
Are customers who made purchases online with the Company during the preceding twelve months as of the relevant dates.
Repeat customers
Are the sum of orders placed by
customers who have previously purchased from the Company during the preceding twelve months as of the relevant dates.
Invoiced orders
Are the total number of orders invoiced to active customers during the relevant period (online and offline sales).
Orders placed from mobile devices
The sum of total
orders placed by active customers through the Companys mobile site and applications as a percentage of total orders placed by active customers for the relevant period.
Average basket size
Is the sum of invoiced order value
in connection with a product sale (online and offline), including shipping fees and taxes, divided by the number of total invoiced orders for the relevant period. Excludes B2B and NCard operations.
Gross merchandise volume (GMV)
Is the sum of
net sales, returns, GMV from marketplace and net sales taxes. Excludes marketplace and NCard activation commission fees.
Net Working Capital Cycle
Is the sum of the balances of (a) Trade accounts receivable and (b) Inventories, less (c) the balance of Trade accounts payable, plus
the balance of (d) Reverse factoring.
Partner-branded stores
All partner-branded online stores that the Company manages.
Foreign Exchange Neutral (FX Neutral)
Growth
rate shown on constant local currency basis, in order to demonstrate what the results would have been had exchange rates in Mexico and Argentina remained constant during the period comparison.
13
NETSHOES (CAYMAN) LIMITED AND SUBSIDIARIES
Consolidated Statements of Financial Position
December 31,
2016 and 2017
(
Reais
and Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31,
|
|
Assets
|
|
2016
|
|
|
2017
|
|
|
2017
|
|
Current assets:
|
|
|
BRL
|
|
|
|
BRL
|
|
|
|
USD
|
|
Cash and cash equivalents
|
|
|
R$111,304
|
|
|
|
R$395,962
|
|
|
|
US$119,698
|
|
Restricted cash
|
|
|
21,946
|
|
|
|
19,397
|
|
|
|
5,864
|
|
Trade accounts receivables, net
|
|
|
213,994
|
|
|
|
113,168
|
|
|
|
34,210
|
|
Inventories, net
|
|
|
352,011
|
|
|
|
456,632
|
|
|
|
138,039
|
|
Recoverable taxes
|
|
|
66,329
|
|
|
|
80,047
|
|
|
|
24,198
|
|
Other current assets
|
|
|
59,127
|
|
|
|
48,352
|
|
|
|
14,616
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
824,710
|
|
|
|
1,113,558
|
|
|
|
336,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted cash
|
|
|
21,254
|
|
|
|
15,048
|
|
|
|
4,549
|
|
Judicial deposits
|
|
|
71,817
|
|
|
|
106,914
|
|
|
|
32,320
|
|
Recoverable taxes
|
|
|
33,178
|
|
|
|
70,765
|
|
|
|
21,392
|
|
Other assets
|
|
|
950
|
|
|
|
1,950
|
|
|
|
589
|
|
Due from related parties
|
|
|
17
|
|
|
|
12
|
|
|
|
4
|
|
Property and equipment, net
|
|
|
74,202
|
|
|
|
73,039
|
|
|
|
22,080
|
|
Intangible assets, net
|
|
|
87,593
|
|
|
|
115,839
|
|
|
|
35,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-current
assets
|
|
|
289,011
|
|
|
|
383,567
|
|
|
|
115,952
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
1,113,722
|
|
|
|
1,497,125
|
|
|
|
452,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14
NETSHOES (CAYMAN) LIMITED AND SUBSIDIARIES
Consolidated Statements of Financial Position
December 31,
2016 and 2017
(
Reais
and Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31,
|
|
Liabilities and Shareholders Equity
|
|
2016
|
|
|
2017
|
|
|
2017
|
|
Current liabilities:
|
|
|
BRL
|
|
|
|
BRL
|
|
|
|
USD
|
|
Trade accounts payable
|
|
|
R$335,430
|
|
|
|
R$365,835
|
|
|
|
US$110,591
|
|
Reverse factoring
|
|
|
27,867
|
|
|
|
148,928
|
|
|
|
45,021
|
|
Current portion of long-term debt
|
|
|
75,956
|
|
|
|
106,577
|
|
|
|
32,218
|
|
Derivative financial liabilities
|
|
|
186
|
|
|
|
|
|
|
|
|
|
Taxes and contributions payable
|
|
|
15,249
|
|
|
|
19,875
|
|
|
|
6,008
|
|
Deferred revenue
|
|
|
6,628
|
|
|
|
3,732
|
|
|
|
1,128
|
|
Accrued expenses
|
|
|
122,048
|
|
|
|
120,366
|
|
|
|
36,386
|
|
Other current liabilities
|
|
|
33,331
|
|
|
|
31,017
|
|
|
|
9,376
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
616,695
|
|
|
|
796,330
|
|
|
|
240,728
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, net of current portion
|
|
|
311,426
|
|
|
|
179,394
|
|
|
|
54,230
|
|
Provision for labor, civil and tax risks
|
|
|
5,177
|
|
|
|
12,523
|
|
|
|
3,786
|
|
Share-based payment
|
|
|
30,139
|
|
|
|
|
|
|
|
|
|
Deferred revenue
|
|
|
26,247
|
|
|
|
25,502
|
|
|
|
7,709
|
|
Other
non-current
liabilities
|
|
|
13
|
|
|
|
27
|
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-current
liabilities
|
|
|
373,002
|
|
|
|
217,446
|
|
|
|
65,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
989,697
|
|
|
|
1,013,776
|
|
|
|
306,461
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
141
|
|
|
|
244
|
|
|
|
74
|
|
Additional-paid in capital
|
|
|
821,988
|
|
|
|
1,345,507
|
|
|
|
406,743
|
|
Treasury shares
|
|
|
(1,533
|
)
|
|
|
(1,533
|
)
|
|
|
(463
|
)
|
Accumulated other comprehensive loss
|
|
|
(19,577
|
)
|
|
|
(13,664
|
)
|
|
|
(4,131
|
)
|
Accumulated losses
|
|
|
(677,379
|
)
|
|
|
(847,125
|
)
|
|
|
(256,084
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to owners of the parent
|
|
|
123,640
|
|
|
|
483,429
|
|
|
|
146,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable to
non-controlling
interests
|
|
|
385
|
|
|
|
(80
|
)
|
|
|
(24
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders equity
|
|
|
124,025
|
|
|
|
483,349
|
|
|
|
146,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders equity
|
|
|
1,113,722
|
|
|
|
1,497,125
|
|
|
|
452,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15
NETSHOES (CAYMAN) LIMITED AND SUBSIDIARIES
Consolidated Statements of Profit or Loss
For the years ended
December 31, 2016 and 2017
(
Reais
and Dollars in thousands, except loss per share)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31,
|
|
|
|
2016
|
|
|
2017
|
|
|
2017
|
|
|
|
BRL
|
|
|
BRL
|
|
|
USD
|
|
Net Sales
|
|
|
R$1,739,540
|
|
|
|
1,889,006
|
|
|
|
571,041
|
|
Cost of sales
|
|
|
(1,188,744
|
)
|
|
|
(1,291,427
|
)
|
|
|
(390,395
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit
|
|
|
550,796
|
|
|
|
597,579
|
|
|
|
180,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing expenses
|
|
|
(443,692
|
)
|
|
|
(509,208
|
)
|
|
|
(153,932
|
)
|
General and administrative expenses
|
|
|
(174,564
|
)
|
|
|
(153,136
|
)
|
|
|
(46,293
|
)
|
Other operating expenses, net
|
|
|
(5,252
|
)
|
|
|
(3,933
|
)
|
|
|
(1,189
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
(623,508
|
)
|
|
|
(666,277
|
)
|
|
|
(201,413
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(72,712
|
)
|
|
|
(68,698
|
)
|
|
|
(20,767
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial income
|
|
|
28,366
|
|
|
|
30,131
|
|
|
|
9,109
|
|
Financial expenses
|
|
|
(107,550
|
)
|
|
|
(131,776
|
)
|
|
|
(39,836
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income tax
|
|
|
(151,896
|
)
|
|
|
(170,343
|
)
|
|
|
(51,495
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
|
|
|
|
|
|
|
(2
|
)
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
|
(151,896
|
)
|
|
|
(170,345
|
)
|
|
|
(51,496
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the Parent
|
|
|
(151,074
|
)
|
|
|
(169,746
|
)
|
|
|
(51,315
|
)
|
Non-controlling
interests
|
|
|
(822
|
)
|
|
|
(599
|
)
|
|
|
(181
|
)
|
Loss per share attributable to owners of the Parent
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
|
|
(7.05
|
)
|
|
|
(5.95
|
)
|
|
|
(1.80
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16
NETSHOES (CAYMAN) LIMITED AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the years ended
December 31, 2016 and 2017
(
Reais
and Dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years ended December 31,
|
|
|
|
2016
|
|
|
2017
|
|
|
2017
|
|
|
|
BRL
|
|
|
BRL
|
|
|
USD
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
R$
|
(151,896
|
)
|
|
R$
|
(170,345
|
)
|
|
US$
|
(51,495
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for doubtful accounts
|
|
|
1,167
|
|
|
|
25,443
|
|
|
|
7,691
|
|
Depreciation and amortization
|
|
|
31,173
|
|
|
|
31,820
|
|
|
|
9,619
|
|
Loss on disposal of property and equipment, and intangible assets
|
|
|
901
|
|
|
|
199
|
|
|
|
60
|
|
Share-based payment
|
|
|
930
|
|
|
|
(13,860
|
)
|
|
|
(4,190
|
)
|
Provision for contingent liabilities
|
|
|
1,247
|
|
|
|
10,111
|
|
|
|
3,057
|
|
Interest expense, net
|
|
|
92,436
|
|
|
|
112,757
|
|
|
|
34,086
|
|
Provision for inventory losses
|
|
|
849
|
|
|
|
5,382
|
|
|
|
1,627
|
|
Other
|
|
|
(134
|
)
|
|
|
181
|
|
|
|
55
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restricted cash
|
|
|
(8
|
)
|
|
|
2,549
|
|
|
|
771
|
|
Derivative financial instruments
|
|
|
148
|
|
|
|
|
|
|
|
|
|
Trade accounts receivable
|
|
|
67,887
|
|
|
|
74,450
|
|
|
|
22,506
|
|
Inventories
|
|
|
(77,195
|
)
|
|
|
(114,082
|
)
|
|
|
(34,487
|
)
|
Recoverable taxes
|
|
|
(56,502
|
)
|
|
|
(52,714
|
)
|
|
|
(15,935
|
)
|
Judicial deposits
|
|
|
(39,940
|
)
|
|
|
(35,097
|
)
|
|
|
(10,610
|
)
|
Other assets
|
|
|
(21,109
|
)
|
|
|
4,426
|
|
|
|
1,336
|
|
Increase (decrease) in:
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial instruments
|
|
|
(209
|
)
|
|
|
(186
|
)
|
|
|
(56
|
)
|
Trade accounts payable
|
|
|
94,563
|
|
|
|
34,290
|
|
|
|
10,366
|
|
Reverse factoring
|
|
|
8,104
|
|
|
|
121,061
|
|
|
|
36,596
|
|
Taxes and contributions payable
|
|
|
9,177
|
|
|
|
5,117
|
|
|
|
1,547
|
|
Deferred revenue
|
|
|
(1,875
|
)
|
|
|
(3,641
|
)
|
|
|
(1,101
|
)
|
Accrued expenses
|
|
|
29,493
|
|
|
|
(1,862
|
)
|
|
|
(563
|
)
|
Share-based payment
|
|
|
(715
|
)
|
|
|
(2,366
|
)
|
|
|
(715
|
)
|
Other liabilities
|
|
|
(9,349
|
)
|
|
|
(8,794
|
)
|
|
|
(2,658
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities
|
|
|
(20,857
|
)
|
|
|
24,839
|
|
|
|
7,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(25,234
|
)
|
|
|
(7,861
|
)
|
|
|
(2,376
|
)
|
Purchase of intangible assets
|
|
|
(47,066
|
)
|
|
|
(49,393
|
)
|
|
|
(14,931
|
)
|
Interest received on installment sales
|
|
|
6,987
|
|
|
|
2,071
|
|
|
|
626
|
|
Restricted cash
|
|
|
760
|
|
|
|
6,206
|
|
|
|
1,876
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
|
(64,553
|
)
|
|
|
(48,977
|
)
|
|
|
(14,806
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from debt
|
|
|
162,631
|
|
|
|
159,984
|
|
|
|
48,363
|
|
Payments of debt
|
|
|
(102,552
|
)
|
|
|
(170,459
|
)
|
|
|
(51,529
|
)
|
Payments of interest
|
|
|
(107,286
|
)
|
|
|
(110,631
|
)
|
|
|
(33,443
|
)
|
Proceeds from issuance of common shares
|
|
|
|
|
|
|
423,166
|
|
|
|
127,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) financing activities
|
|
|
(47,207
|
)
|
|
|
302,060
|
|
|
|
91,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(5,143
|
)
|
|
|
6,736
|
|
|
|
2,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash and cash equivalents
|
|
|
(137,760
|
)
|
|
|
284,658
|
|
|
|
86,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
249,064
|
|
|
|
111,304
|
|
|
|
33,647
|
|
Cash and cash equivalents, end of period
|
|
|
111,304
|
|
|
|
395,962
|
|
|
|
119,698
|
|
17
SIGNATURE
Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this registration
statement to be signed on its behalf by the undersigned, thereto duly authorized.
|
|
|
Netshoes (Cayman) Limited
|
By:
|
|
/s/ Marcio Kumruian
|
Name:
|
|
Marcio Kumruian
|
Title:
|
|
Chief Executive Officer
|
Date: March 28, 2018
Netshoes (Cayman) Limited (NYSE:NETS)
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