Totvs: adjusted net profit totals R$156.7 million in the 4th quarter of 2023, a drop of 2.3% in one year

Totvs ended the fourth quarter of 2023 with adjusted net profit of R$156.7 million. The amount represents an annual drop of 2.3% and a drop of 22% compared to the previous quarter. Adjusted Ebitda totaled R$258.3 million in the same period, an increase of 7.8% compared to the fourth quarter of 2022. However, the value is equivalent to a decrease of 12.4% in relation to the result of the previous quarter .

The adjusted EBITDA margin was 21%, 200 basis points below the fourth quarter of 2022 due to historical seasonal and one-off factors that impacted the period, according to the company's justification.

Totvs also highlights that there was a reduction in credit production from Agribusiness affiliates in December, as the agricultural harvest peaked in the previous quarter. Furthermore, the company recalls that the RD Summit event had a net expense of R$14 million, an increase of 119% when compared to the fourth quarter of 2022.

Consolidated net revenue ended the fourth quarter of last year at R$1.228 billion, 17.8% higher than the same period in 2022 and 2.1% higher compared to July to September 2023.

Gross debt, in turn, totaled R$2.1 billion, an increase of 4.8% compared to the previous quarter. According to Totvs, the result was due to the increase in Tallos' earn-out and its performance substantially above expectations.

On the other hand, the cash and equivalents balance ended the third quarter of 2023 at R$3.1 billion, which corresponds to approximately 1.5 times the gross debt balance.

Techfin

Techfin's revenue showed annualized growth of 0.8% compared to the same period in 2022, but a drop of 12.7% compared to the immediately previous quarter, to R$118.8 million.

Techfin's Ebitda ended the quarter at R$2.3 million and with an Ebitda margin of 3.1%, a reduction compared to the previous quarter, mainly due to the lower net revenue from Funding in the dimension in the quarter

Furthermore, Techfin ended the quarter and the year with losses of R$2.4 million and R$4.5 million, respectively, due to the amortization of intangible assets, arising from the acquisition of Supplier, which in addition to not impacting cash from Techfin, help reduce the effective tax and income rate, improving results.