AMBI Ambipar Emergency Response

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August, 2023

 

Commission File Number: 001-41638

 

 

AMBIPAR EMERGENCY RESPONSE

(Exact name of registrant as specified in its charter)

 

 

Avenida Angélica, nº 2346, 5th Floor

São Paulo, São Paulo, Brazil, 01228-200

Tel: +55 (11) 3429-5000

(Address of principal executive office)

 

 

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  x             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 x

 

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 x

 

 

 

Ambipar Parent released results for the second quarter of 2023.

 

Ambipar Emergency Response informs the market that on August 15, 2023, its parent company, Ambipar Participações e Empreendimentos S.A. (“Ambipar Parent”), announced its results for the six months ended June 30, 2023.

 

Excerpts of this announcement relating to Ambipar Emergency Response (the “Company”) are furnished as Exhibit 99.1 to this Report on Form 6-K. Financial information relating to the Company contained therein has not been audited or reviewed in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB) or any other auditing standards. While such financial information has been prepared in good faith and based on information available at the time of preparation, no assurance can be made that actual results will not change as a result of the Company’s management review of results and other factors. The Company’s results for the six months ended June 30, 2023 are subject to finalization and closing of the Company’s accounting books and records (which have yet to be performed) and should not be viewed as a substitute for financial statements prepared in accordance with IFRS. Accordingly, you should not place undue reliance upon the financial information contained in Exhibit 99.1. While we do not expect that such financial information will differ materially from the Company’s actual results for the six months ended June 30, 2023, we cannot assure you that such financial information will be indicative of the Company’s actual financial results for the six months ended June 30, 2023 or for any future periods.

 

 

EXHIBIT INDEX

 

Exhibit No.		Description of Exhibit
99.1		Press Release of Ambipar Emergency Response dated August 15, 2023.

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: August 16, 2023

 

	AMBIPAR EMERGENCY RESPONSE
	By:	/s/ Thiago da Costa Silva
	Name: Thiago da Costa Silva
	Title: Director

 

 

Exhibit 99.1

 

EARNINGS RELEASE 2Q23

 

RESPONSE SEGMENT

 

BRL million		2Q23				2Q22				Chg.				1Q23*				Chg.				6M23*				6M22				Chg.
GROSS REVENUE			660.4				363.3				81.8%				627.1				5.3%				1,287.5				713.7				80.4%
DEDUCTIONS			-48.3				-30.7				57.3%				-30.9				56.3%				-79.2				-59.2				33.8%
NET REVENUE			612.1				332.6				84.0%				596.3				2.7%				1,208.3				654.5				84.6%
COST OF SERVICES PROVIDED			-454.1				-243.6				86.5%				-452.1				0.4%				-906.3				-472.6				91.8%
GROSS PROFIT			157.9				89.1				77.4%				144.1				9.6%				302.1				182.0				66.0%
GROSS MARGIN			25.8%				26.8%				-1.0 p.p.				24.2%				1.6 p.p.				25.0%				27.8%				-2.8 p.p.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES			-7.6				-6.5				17.5%				-5.1				49.4%				-12.7				-14.0				-9.7%

 

GROSS REVENUE

 

RESPONSE
COMPOSITION OF GROSS REVENUE R$ million		2Q21				3Q21				4Q21				1Q22				2Q22				3Q22				4Q22				1Q23				2Q23
GROSS REVENUE			215.2				262.4				281.5				350.4				363.3				431.8				667.8				627.1				660.4
Brazil			70.1				82.2				77.1				112.5				122.8				159.4				202.5				208.7				244.5
International			145.1				180.2				204.4				237.9				240.6				272.4				465.3				418.4				415.9
Latam (ex Brazil)			36.9				47.7				50.1				57.9				58.7				44.1				50.3				55.8				54.3
Europe			42.4				50.1				48.1				47.8				50.5				51.8				64.7				56.1				46.0
North America			65.8				82.4				106.2				132.2				131.3				176.5				350.3				306.5				315.5

 

Our operations had revenue variations as expected. Gross revenue reached R$660 million in 2Q23, 81.8% higher than 2Q22 and up by 5.3% compared to 1Q23.

 

BRAZIL

 

COMPOSITION OF GROSS REVENUE R$ million		2Q23				2Q22				Chg. 2Q23 x 2Q22				1Q23				Chg. 2Q23 x 1Q23				6M23				6M22				Chg. 6M23 x 6M22
RESPONSE
GROSS REVENUES			660.4				363.3				81.8%				627.1				5.3%				1,287.5				713.7				80.4%
Brazil			244.5				122.8				99.1%				208.7				17.1%				453.2				235.3				92.6%
Subscriptions Brazil			39.6				33.7				17.3%				38.2				3.6%				77.8				67.5				15.3%
Services Brazil			204.9				89.0				130.1%				170.5				20.2%				375.5				167.8				123.7%

 

 

Attended Services				2Q22			3Q22			4Q22			1Q23			2Q23			Chg. 2Q23 x 2Q22
Brazil		Gross Revenue (BRL Million)		89.0			123.5			165.5			170.5			204.9			130.1%
		Number of Services Provided		1,853			2,435			2,594			2,727			3,075			65.9%
		Average Ticket (BRL Thousand)		48.1			50.7			63.8			62.5			66.6			38.7%

 

	·	Gross Revenue in Brazil grew in all comparisons, mainly driven by the provision of scheduled industrial services and emergencies in the road and rail sectors.
	·	The average ticket rose YoY and QoQ reflecting higher complexity of attended services.
	·	This result is the result of integration and cross-selling between the business areas.

 

LATAM

 

COMPOSITION OF GROSS REVENUE R$ million		2Q23				2Q22				Chg. 2Q23 x 2Q22				1Q23				Chg. 2Q23 x 1Q23				6M23				6M22				Chg. 6M23 x 6M22
RESPONSE
GROSS REVENUES			660.4				363.3				81.8%				627.1				5.3%				1,287.5				713.7				80.4%
International			415.9				240.6				72.9%				418.4				-0.6%				834.3				478.4				74.4%
Latam (ex-Brazil)			54.3				58.7				-7.5%				55.8				-2.6%				110.1				116.6				-5.5%
Subscriptions Latam			34.6				34.4				0.5%				36.1				-4.1%				70.7				65.6				7.7%
Services Latam			19.7				24.3				-18.7%				19.7				0.1%				39.5				51.0				-22.6%

 

 

Attended Services				2Q22			3Q22			4Q22			1Q23			2Q23			Chg. 2Q23 x 2Q22
Latam (Ex Brazil)		Gross Revenue (BRL Million)		24.3			9.6			14.8			19.7			19.7			-18.7%
		Number of Services Served		82			80			104			95			90			9.8%
		Average Ticket (BRL Thousand)		296.4			119.6			142.3			207.6			219.4			-26.0%

 

	·	Latam gross revenue had a negative exchange rate impact between 1Q23 vs. 2Q23, due to the 3.4% appreciation of the Real against the Chilean Peso. On a Local currency view, Revenues showed slight growth.
	·	In Latin America, we had a YoY retraction due to exchange variation, and an oil spill response in the region during 1H22.

 

 

EUROPE

 

COMPOSITION OF GROSS REVENUE R$ million		2Q23				2Q22				Chg. 2Q23 x 2Q22				1Q23				Chg. 2Q23 x 1Q23				6M23				6M22				Chg. 6M23 x 6M22
RESPONSE
GROSS REVENUES			660.4				363.3				81.8%				627.1				5.3%				1,287.5				713.7				80.4%
International			415.9				240.6				72.9%				418.4				-0.6%				834.3				478.4				74.4%
Europe			46.0				50.5				-8.9%				56.1				-17.9%				102.1				98.3				3.9%
Subscriptions Europe			4.6				3.8				20.5%				4.8				-4.9%				9.4				7.4				27.1%
Services Europe			41.5				46.7				-11.3%				51.3				-19.1%				92.7				90.9				2.0%

 

 

Attended Services				2Q22			3Q22			4Q22			1Q23			2Q23			Chg. 2Q23 x 2Q22
Europe		Gross Revenue (BRL Million)		46.7			48.1			60.0			51.3			41.5			-11.3%
		Number of Services Served		5,874			5,922			5,974			5,947			5,798			-1.3%
		Average Ticket (BRL Thousand)		8.0			8.1			10.0			8.6			7.2			-10.1%

 

	·	In Europe, we had a quarterly drop in revenue, due to a lower industrial demand.
	·	In addition, the Real appreciated against the basket of currencies in the European countries where we operate.

 

NORTH AMERICA

 

COMPOSITION OF GROSS REVENUE R$ million		2Q23				2Q22				Chg. 2Q23 x 2Q22				1Q23				Chg. 2Q23 x 1Q23				6M23				6M22				Chg. 6M23 x 6M22
RESPONSE
GROSS REVENUES			660.4				363.3				81.8%				627.1				5.3%				1,287.5				713.7				80.4%
International			415.9				240.6				72.9%				418.4				-0.6%				834.3				478.4				74.4%
North America			315.5				131.3				140.2%				306.5				2.9%				622.0				263.5				136.0%

 

 

Attended Services				2Q22			3Q22			4Q22			1Q23			2Q23			Chg. 2Q23 x 2Q22
North America		Gross Revenue (BRL Million)		131.3			176.5			350.3			306.5			315.5			140.2%
		Number of Services Served		2,597			2,991			3,117			3,228			3,660			40.9%
		Average Ticket (BRL Thousand)		50.6			59.0			112.4			95.0			86.2			70.5%

 

	·	North America ex-WOB operations continue their growth trajectory. In the comparison with 2Q22, the growth was 140.2%.
	·	Continuing the process of integrating operations in North America, Witt O’Brien’s now brings together all the L1 and L2 US operations. So, we consolidate WOB into the North America revenue line. We continue to cross-sell L3 from leads generated by L1.
	·	Standing out in Canada was its performance in the Oil and Gas market, in addition to fire response, maintenance and cleaning of silos in the agricultural market.

 

 

NET REVENUE

 

R$ million		2Q23				2Q22				Chg.				1Q23				Chg.				6M23				6M22				Chg.
Gross Revenues			660.4				363.3				81.8%				627.1				5.3%				1,287.5				713.7				80.4%
Deductions			-48.3				-30.7				57.3%				-30.9				56.3%				-79.2				-59.2				33.8%
Net Revenues			612.1				332.6				84.0%				596.3				2.7%				1,208.3				654.5				84.6%
% Deductions / Gross Revenues			-7.3%				-8.5%				1.1 p.p.				-4.9%				-2.4 p.p.				-6.1%				-8.3%				2.1 p.p.

 

·

The variation in net revenue accompanied the evolution of gross revenue by geography, and the revenue deductions for each region. There was no significant change in the tax structure of each market, with higher deductions in the Brazilian market than in the international market.

 

COST OF PRODUCTS/SERVICES (CASH)

 

RESPONSE
COST OF SERVICES R$ million		2Q23				2Q22				Chg.			1Q23				Chg.			6M23				6M22				Chg.
Personnel			253.4				120.2			110.9%				237.6			6.6%				491.0				238.2			106.2%
Third parties			92.2				49.5			86.1%				88.8			3.8%				181.0				96.4			87.8%
Maintenance			24.7				8.1			207.1%				19.8			24.6%				44.6				14.7			203.2%
Travel			19.2				4.6			313.3%				17.2			11.7%				36.4				9.2			293.6%
Freight			0.8				1.2			-32.1%				1.5			-45.6%				2.2				2.3			-2.6%
Rentals			11.7				9.5			23.2%				10.7			9.4%				22.4				19.1			17.2%
Fuel			12.8				18.7			-31.7%				12.6			1.6%				25.3				30.9			-17.9%
Materials			5.2				3.5			46.3%				7.9			-35.1%				13.1				6.8			93.2%
Telecommunications			2.9				0.6			406.5%				3.7			-22.7%				6.6				1.2			439.0%
Marketing			5.3				0.7			656.4%				3.1			71.5%				8.4				1.2			583.0%
Taxes			4.2				6.2			-32.3%				10.8			-61.1%				15.1				15.6			-3.3%
Others			21.9				20.8			5.3%				38.4			-43.0%				60.2				37.0			62.6%
TOTAL			454.1				243.6			86.5%				452.1			0.4%				906.3				472.6			91.8%

 

RESPONSE
COST OF SERVICES R$ million		2Q21				3Q21				4Q21				1Q22				2Q22				3Q22				4Q22				1Q23				2Q23
Net Revenue			190.3				233.4				255.6				321.9				332.6				398.1				632.3				596.3				612.1
Personnel			73.0				91.3				96.4				118.0				120.2				137.7				271.5				237.6				253.4
Third parties			19.8				28.8				27.7				46.8				49.5				45.1				69.0				88.8				92.2
Maintenance			8.6				4.5				6.2				6.6				8.1				15.5				27.8				19.8				24.7
Travel			2.4				3.8				4.3				4.6				4.6				6.7				17.2				17.2				19.2
Freight			0.6				0.8				0.9				1.1				1.2				1.3				13.4				1.5				0.8
Rentals			7.3				7.2				7.1				9.6				9.5				3.3				8.6				10.7				11.7
Fuel			5.4				6.6				9.0				12.2				18.7				19.8				7.5				12.6				12.8
Materials			2.3				3.2				3.5				3.3				3.5				10.4				5.2				7.9				5.2
Telecommunications			0.4				0.5				0.7				0.7				0.6				1.0				4.2				3.7				2.9
Marketing			0.9				0.3				1.5				0.5				0.7				5.5				4.1				3.1				5.3
Taxes			2.1				3.6				3.7				9.3				6.2				5.9				-1.3				10.8				4.2
Others			9.2				9.0				14.4				16.3				20.8				30.5				27.0				38.4				21.9
Total			132.1				159.4				175.3				229.0				243.6				282.8				454.2				452.1				454.1

 

 

Percentage of Net Revenue

 

RESPONSE
COST OF SERVICES R$ million		2Q21				3Q21				4Q21				1Q22				2Q22				3Q22				4Q22				1Q23				2Q23
Net Revenue			190.3				233.4				255.6				321.9				332.6				398.1				632.3				596.3				612.1
Personnel			38.3%				39.1%				37.7%				36.7%				36.1%				34.6%				42.9%				39.9%				41.4%
Third parties			10.4%				12.4%				10.9%				14.5%				14.9%				11.3%				10.9%				14.9%				15.1%
Maintenance			4.5%				1.9%				2.4%				2.1%				2.4%				3.9%				4.4%				3.3%				4.0%
Travel			1.3%				1.6%				1.7%				1.4%				1.4%				1.7%				2.7%				2.9%				3.1%
Freight			0.3%				0.3%				0.3%				0.4%				0.3%				0.3%				2.1%				0.2%				0.1%
Rentals			3.9%				3.1%				2.8%				3.0%				2.9%				0.8%				1.4%				1.8%				1.9%
Fuel			2.8%				2.8%				3.5%				3.8%				5.6%				5.0%				1.2%				2.1%				2.1%
Materials			1.2%				1.3%				1.4%				1.0%				1.1%				2.6%				0.8%				1.3%				0.8%
Telecommunications			0.2%				0.2%				0.3%				0.2%				0.2%				0.3%				0.7%				0.6%				0.5%
Marketing			0.5%				0.1%				0.6%				0.2%				0.2%				1.4%				0.6%				0.5%				0.9%
Taxes			1.1%				1.5%				1.4%				2.9%				1.9%				1.5%				-0.2%				1.8%				0.7%
Others			4.8%				3.9%				5.6%				5.1%				6.2%				7.7%				4.3%				6.4%				3.6%
Total			69.4%				68.3%				68.6%				71.1%				73.2%				71.0%				71.8%				75.8%				74.2%
Gross Margin			30.6%				31.7%				31.4%				28.9%				26.8%				29.0%				28.2%				24.2%				25.8%

 

Costs remained stable as a percentage of revenue when comparing 2Q23 vs. 1Q23, reflecting the company's business mix. There were no highlights in the composition of costs in this quarter. The largest cost components – Personnel, Third Parties, Maintenance, Fuel and Travel – represented more than 85% of total costs.

 

GROSS PROFIT

  

 

Gross profit grew over 2Q22. Gross margin for 2Q23 reached 25.8%, a result of 1.0 pp. lower than 2Q22 and up by 1.6 pp. compared to 1Q23. The improvement in gross margin in relation to 1Q23, is due to better performance in Brazil and Canada.

 

 

CAPEX RESPONSE

 

In 2Q23, addition of Fixed Assets was R$41.9 million. In Response, we invested in Latin America in the new training camp in Chile and in the acquisition of equipment to be used in outsourcing contracts.

 

Additions to Fixed Assets R$ million		2Q23				2Q22				Chg. 2Q23 x 2Q22			1Q23				Chg. 2Q23 x 1Q23			6M23				6M22				Chg. 6M23 x 6M22
Response			41.9				26.1			61.0%				69.0			-39.2%				110.9				90.9			22.1%
(+) Brazil			11.6				8.9			29.4%				43.8			-73.6%				55.4				58.8			-5.7%
(+) LATAM (ex-Brazil)			19.8				1.9			933.4%				1.1			1662.9%				20.9				2.0			967.3%
(+) Europe			1.8				0.5			261.6%				1.8			-0.5%				3.7				3.7			0.3%
(+) North America			8.7				14.7			-40.4%				22.2			-60.6%				30.9				26.4			16.9%

 

Additions to Fixed Assets R$ million		2Q21				3Q21				4Q21				1Q22				2Q22				3Q22				4Q22				1Q23				2Q23
Response			20.8				46.2				12.9				64.8				26.1				69.9				72.5				69.0				41.9
(+) Brazil			16.4				32.5				7.1				49.9				8.9				52.3				37.9				43.8				11.6
(+) LATAM (ex-Brazil)			0.7				2.0				2.1				0.0				1.9				0.7				4.0				1.1				19.8
(+) Europe			0.1				2.6				2.8				3.2				0.5				2.4				2.1				1.8				1.8
(+) North America			3.7				9.2				0.9				11.8				14.7				14.4				28.5				22.2				8.7

 

		1Q23								2Q23
Expansion and Maintenance Capex		Capex (R$ Million)				% Group Revenue				Capex (R$ Million)				% Group Revenue
Service Expansion			66.0				5.8%				76.3				6.3%
RESPONSE			38.0				3.3%				24.3				2.0%
Response Brazil			25.6				2.2%				6.3				0.5%
Response Latam (Ex. Brazil)			0.6				0.1%				18.0				1.5%
Response Europe			0.3				0.0%				0.0				0.0%
Response North America			11.5				1.0%				0.0				0.0%
Service Maintenance			68.4				6.0%				59.6				4.9%
RESPONSE			31.1				2.7%				17.7				1.5%
Response Brazil			18.3				1.6%				5.3				0.4%
Response Latam (Ex. Brazil)			0.5				0.0%				1.8				0.2%
Response Europe			1.6				0.1%				1.8				0.2%
Response North America			10.7				0.9%				8.7				0.7%

 

 

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