Americanas: report shows that fraud amounts to more than R$ 40 billion; understand the case

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The company admitted fraud by former executives for the first time and detailed the scheme in financial statements five months after the accounting scandal became public. Facade of Lojas Americanas in Franca, in the interior of SP. IGOR DO VALE/ESTADÃO CONTENT The frauds found in Americanas’ financial statements and informed by the company this Tuesday (13), add up to more than R$ 40 billion in preliminary and unaudited numbers. The value also considers credit and financing operations improperly accounted for in the retailer’s balance sheet. The company is in judicial recovery, after finding the accounting gap earlier this year. According to the company, the frauds in the financial statements occurred through the so-called Cooperative Propaganda Fund (VPC) — an amount negotiated between the industry and retailers and which serves, among other things, to cover any costs with publicity and advertising. (understand more below) In addition, according to Americanas, credit operations and financing made by the company with financial institutions and suppliers that were not accounted for properly were also found. In this report, you will understand: What were the frauds identified in the Americanas balance sheet; Who was involved in the company’s fraud; The company’s next steps. What were the scams? According to a statement released by the company this Tuesday (13), financial statement fraud occurred predominantly through Cooperative Advertising Budget (VPC) contracts. These contracts are usually signed between the industry and retail — that is, they are paid by suppliers to resellers or wholesalers and retailers — and, in addition to being used to cover any costs with publicity and advertising, they also serve to boost sales of certain products. products. In these agreements, retailers and resellers stipulate a closed price for this type of contract, in which they can negotiate a marketing plan and details about the presentation of the manufacturer’s product in stores — such as shelves and gondolas with privileged spaces and specific advertisements in the aisles, for example. Sérgio Rial, former CEO of Americanas, becomes a defendant at the CVM in a lawsuit over breach READ MORE From banks to toy manufacturers: see Americanas’ creditors Who are Lemann, Telles and Sicupira, the ‘owners’ of Americanas, and where do their Rombo fortunes at Americanas: who lost and who won with losses that should lead to a legal battle In the case of Americanas, however, these contracts would have been created artificially, without hiring by suppliers, and entered in the balance sheet in order to improve the company’s operating results. “These launches, made over a significant period, reached, in preliminary and unaudited numbers, the balance of R$ 21.7 billion on September 30, 2022,” Americanas said in a statement. Also according to the company, a series of financings were still contracted and accounted for inadequately in the balance sheet, namely (also in preliminary and unaudited numbers): R$ 18.4 billion in operations with drawn risk, forfait or confirming (understand the terms here); R$ 2.2 billion in working capital financing operations. “The undue accounting of these financing operations in Americanas’ financial statements did not allow the correct determination of the Company’s degree of indebtedness over time”, the company said in a statement. Finally, Americanas also reported that inappropriate entries arising from interest on financial operations were identified. These launches should have passed through the company’s results over time and amounted to R$ 3.6 billion on September 30, 2022. The company also reinforced that all these amounts are preliminary, unaudited and are still subject to change. “The effect of these adjustments on the Company’s results over time is still being determined, but the Management’s expectation is that the impact on the most recent results is significant”, said the company. Americanas presents a judicial recovery plan, which provides for a contribution of R$ 10 billion from the controllers Who was involved in the frauds In its statement, Americanas indicated that the frauds were carried out by the company’s previous directors. According to the company, the report prepared by its legal advisors and presented to the Board of Directors indicates the participation of the following people: Miguel Gutierrez, former president of Americanas who held the position for 20 years and was replaced by Sergio Rial in January of this year; Anna Christina Ramos Saicali, former president of Ame Digital; José Timótheo de Barros, former director responsible for physical stores; Márcio Cruz Meirelles, former director of digital platforms; Fábio da Silva Abrate, former director of investor relations at B2W and former director of Ame Digital; Flávia Carneiro, who worked in the company’s controllership; Marcelo da Silva Nunes, former CFO of B2W. According to Americanas, all employees identified were removed from their executive functions in February. Sergio Rial: who is the former president of Americanas who stayed in office for 9 days and became a defendant after an accounting scandal? What are the company’s next steps? According to the statement, Americanas’ Board of Directors instructed the company and advisors to present the report to all competent authorities and assess the appropriate measures, aiming at “compensation for damages caused by fraud in its financial statements”. In addition, the current president of the company, Leonardo Coelho Pereira, is participating in a Parliamentary Inquiry Commission (CPI) in the Chamber of Deputies this Tuesday to deal with the case. Americanas: see the chronology of the case, from ‘accounting inconsistencies’ to judicial recovery

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