New Risk • Apr 20
New major risk - Revenue and earnings growth Earnings have declined by 81% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (12% average weekly change). Negative equity (-R$1.6b). Earnings have declined by 81% per year over the past 5 years. Minor Risk Market cap is less than US$100m (R$328.2m market cap, or US$65.4m). Reported Earnings • Apr 06
First quarter 2025 earnings released First quarter 2025 results: Revenue: R$397.4m (up 8.5% from 1Q 2024). Net income: R$145.0k (down 99% from 1Q 2024). Profit margin: 0% (down from 4.1% in 1Q 2024). The decrease in margin was driven by higher expenses. Announcement • Apr 03
Bombril S.A., Annual General Meeting, Apr 30, 2026 Bombril S.A., Annual General Meeting, Apr 30, 2026. Location: rudge ramos, city of sao bernardo do campo, state of sao paulo., Brazil Reported Earnings • Nov 28
Full year 2024 earnings released Full year 2024 results: Revenue: R$1.60b (up 13% from FY 2023). Net loss: R$1.55b (down R$1.65b from profit in FY 2023). New Risk • Nov 14
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended September 2024. This is considered a major risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported September 2024 fiscal period end). Interest payments are not well covered by earnings (1.6x net interest cover). Minor Risks Share price has been volatile over the past 3 months (7.4% average weekly change). Profit margins are more than 30% lower than last year (4.7% net profit margin). Market cap is less than US$100m (R$320.4m market cap, or US$60.6m). New Risk • Jun 01
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2024. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.6x net interest cover). Minor Risks Latest financial reports are more than 6 months old (reported September 2024 fiscal period end). Profit margins are more than 30% lower than last year (4.7% net profit margin). Market cap is less than US$100m (R$437.7m market cap, or US$76.5m). Announcement • Apr 02
Bombril S.A., Annual General Meeting, Apr 30, 2025 Bombril S.A., Annual General Meeting, Apr 30, 2025. Location: anchieta road, km 14, rudge ramos, municipality of sao bernardo do campo, ., state of sao paulo, Brazil Valuation Update With 7 Day Price Move • Feb 12
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to R$1.80, the stock trades at a trailing P/E ratio of 6.4x. Average trailing P/E is 17x in the Household Products industry globally. Total returns to shareholders of 18% over the past three years. Valuation Update With 7 Day Price Move • Jan 28
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to R$2.22, the stock trades at a trailing P/E ratio of 7.9x. Average trailing P/E is 17x in the Household Products industry globally. Total returns to shareholders of 41% over the past three years. New Risk • Nov 29
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: R$583.5m (US$97.3m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.6x net interest cover). Minor Risks Profit margins are more than 30% lower than last year (4.7% net profit margin). Market cap is less than US$100m (R$583.5m market cap, or US$97.3m). New Risk • Nov 26
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 4.7% Last year net profit margin: 7.3% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Interest payments are not well covered by earnings (1.7x net interest cover). Minor Risk Profit margins are more than 30% lower than last year (4.7% net profit margin). New Risk • Nov 15
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Brazilian stocks, typically moving 6.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.7x net interest cover). Negative equity (-R$21m). Minor Risk Share price has been volatile over the past 3 months (6.5% average weekly change). Valuation Update With 7 Day Price Move • Oct 18
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to R$2.69, the stock trades at a trailing P/E ratio of 7.3x. Average trailing P/E is 18x in the Household Products industry globally. Total returns to shareholders of 43% over the past three years. Reported Earnings • Aug 16
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: R$417.8m (up 23% from 2Q 2023). Net income: R$19.9m (up 1.2% from 2Q 2023). Profit margin: 4.8% (down from 5.8% in 2Q 2023). The decrease in margin was driven by higher expenses. New Risk • Jun 13
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: R$539.3m (US$99.8m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.5x net interest cover). Negative equity (-R$41m). Minor Risk Market cap is less than US$100m (R$539.3m market cap, or US$99.8m). Reported Earnings • May 10
First quarter 2024 earnings released: EPS: R$0.058 (vs R$0.073 in 1Q 2023) First quarter 2024 results: EPS: R$0.058 (down from R$0.073 in 1Q 2023). Revenue: R$366.1m (up 1.9% from 1Q 2023). Net income: R$15.0m (down 21% from 1Q 2023). Profit margin: 4.1% (down from 5.3% in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. New Risk • Mar 13
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 22% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.5x net interest cover). Negative equity (-R$56m). Minor Risk Large one-off items impacting financial results. Reported Earnings • Mar 10
Full year 2023 earnings released Full year 2023 results: Revenue: R$1.42b (down 3.4% from FY 2022). Net income: R$100.2m (up 344% from FY 2022). Profit margin: 7.1% (up from 1.5% in FY 2022). The increase in margin was driven by lower expenses. Reported Earnings • Nov 16
Third quarter 2023 earnings released Third quarter 2023 results: Revenue: R$373.2m (down 3.6% from 3Q 2022). Net income: R$45.2m (up 188% from 3Q 2022). Profit margin: 12% (up from 4.1% in 3Q 2022). The increase in margin was driven by lower expenses. Valuation Update With 7 Day Price Move • Nov 13
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to R$2.01, the stock trades at a trailing P/E ratio of 6.7x. Average trailing P/E is 20x in the Household Products industry globally. Total loss to shareholders of 3.8% over the past three years. Valuation Update With 7 Day Price Move • Aug 24
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to R$2.25, the stock trades at a trailing P/E ratio of 7.5x. Average trailing P/E is 23x in the Household Products industry globally. Total returns to shareholders of 5.6% over the past three years. New Risk • Aug 11
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 24% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (1.5x net interest cover). Negative equity (-R$117m). High level of non-cash earnings (24% accrual ratio). Minor Risk Market cap is less than US$100m (R$479.3m market cap, or US$97.9m). Reported Earnings • Aug 11
Second quarter 2023 earnings released: EPS: R$0.15 (vs R$0.031 in 2Q 2022) Second quarter 2023 results: EPS: R$0.15 (up from R$0.031 in 2Q 2022). Revenue: R$339.2m (down 8.6% from 2Q 2022). Net income: R$19.6m (up 147% from 2Q 2022). Profit margin: 5.8% (up from 2.1% in 2Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 5% per year. Valuation Update With 7 Day Price Move • Apr 25
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to R$1.43, the stock trades at a trailing P/E ratio of 16.5x. Average trailing P/E is 25x in the Household Products industry globally. Total loss to shareholders of 16% over the past three years. Reported Earnings • Mar 03
Full year 2022 earnings released: EPS: R$0.087 (vs R$0.26 in FY 2021) Full year 2022 results: EPS: R$0.087 (down from R$0.26 in FY 2021). Revenue: R$1.47b (up 29% from FY 2021). Net income: R$22.6m (down 66% from FY 2021). Profit margin: 1.5% (down from 5.9% in FY 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Board Change • Nov 16
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 2 highly experienced directors. No independent directors (4 non-independent directors). Member of the Fiscal Council Erica Prado was the last director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Board Change • Apr 26
No independent directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 2 highly experienced directors. No independent directors (4 non-independent directors). Member of the Fiscal Council Erica Prado was the last director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of independent directors. Insufficient board refreshment. Reported Earnings • Mar 31
Full year 2021 earnings released Full year 2021 results: Revenue: R$1.14b (down 1.2% from FY 2020). Net income: R$66.9m (up 67% from FY 2020). Profit margin: 5.9% (up from 3.5% in FY 2020). The increase in margin was driven by lower expenses. Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment improved over the past week After last week's 32% share price gain to R$3.16, the stock trades at a trailing P/E ratio of 20.6x. Average trailing P/E is 21x in the Household Products industry globally. Total loss to shareholders of 3.7% over the past three years. Valuation Update With 7 Day Price Move • Jan 14
Investor sentiment improved over the past week After last week's 21% share price gain to R$2.65, the stock is trading at a trailing P/E ratio of 8.3x, up from the previous P/E ratio of 6.8x. This compares to an average P/E of 20x in the Household Products industry. Total return to shareholders over the past three years is a loss of 52%. Is New 90 Day High Low • Jan 13
New 90-day high: R$2.41 The company is up 24% from its price of R$1.95 on 14 October 2020. The Brazilian market is up 21% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Household Products industry, which is down 5.0% over the same period. Is New 90 Day High Low • Dec 24
New 90-day high: R$2.23 The company is up 14% from its price of R$1.96 on 24 September 2020. The Brazilian market is up 19% over the last 90 days, indicating the company underperformed over that time. However, it outperformed the Household Products industry, which is down 1.0% over the same period. Reported Earnings • Nov 17
Third quarter 2020 earnings released: EPS R$0.051 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: R$307.0m (up 5.3% from 3Q 2019). Net income: R$13.3m (up R$24.2m from 3Q 2019). Profit margin: 4.3% (up from net loss in 3Q 2019). The move to profitability was primarily driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 81% per year but the company’s share price has only fallen by 26% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Oct 30
New 90-day low: R$1.88 The company is down 11% from its price of R$2.11 on 31 July 2020. The Brazilian market is down 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Household Products industry, which is down 1.0% over the same period. Is New 90 Day High Low • Oct 06
New 90-day low: R$1.93 The company is down 20% from its price of R$2.41 on 08 July 2020. The Brazilian market is down 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Household Products industry, which is up 6.0% over the same period. 
