Igor Analyst's questions to Gerdau SA (GGB) leadership • Q1 2024
Question
Igor Analyst asked for clarification on a BRL 251 million cash flow variation listed as "other variations" and the nature of this cash disbursement under the company's new free cash flow model.
Answer
CFO Rafael Japur explained that the company adopted a new free cash flow model to better reconcile with the official cash flow statement. He clarified that the 'other variations' line now explicitly captures movements in current assets and liabilities that were previously less transparent in the managerial view, such as taxes payable, accrued salaries, and long-term bonuses. This change provides a clearer picture of cash generation despite resulting in a negative free cash flow figure for the quarter under the new methodology.