Q3 2022 Via SA Earnings Call
Yeah.
[music].
But that is up to all the good afternoon, everyone. We are starting our earnings call for the third quarter of the V. F. You will hold bad did we have a bad Tony.
Let me just show you on the pod.
Julia I didn't show on their collaboration happens without the Jupiter our format.
Q&A, a buffet directly and to raise your hand, please use this answer.
This icon.
First question is from Luis Fernandez from BTG Luis you May start.
Thank you Bill and good afternoon, everyone.
I think I have two questions here on our site.
The first one is about the partnerships you've announced yesterday with the renewal.
<unk> with Bradesco <unk>.
So I would like to know if you could talk about the main triggers.
Revenue in this new model compared to the previous model that you had on the second question related to the operation. If you could also talk about how much do you still look at when it comes to three key operation adjustments, which has been to do things and the evolution and the take rate that we could expect thank you.
Oh, good afternoon, everyone and good after noon Gwen I think for that question for us on the phone to call up at all and then I'll come back to complement his answer.
Hi, Good afternoon, everyone. Good afternoon, Glenn I. Thank you for that question before we begin.
And get shut into your question I'm going to give you a little context of this partnership because I think this will help clarify.
The questions that may arise from the other colleagues ever since the beginning of this management, we focused on strengthening our main asset among them. The buy now pay later, they can say Gee I do and our partnerships with them the bank.
Because we know these two payment methods are important levers for sales.
And they make sales feasible bring in loyalty new customers recurring customers and the buy now pay later system increments are more financial results for the company and with the card. So it's a reduction in the cost of the transaction fees.
Another important factor is also that we demonstrate in every quarter that we have significant growth in the buy now pay later portfolio and also with our.
Other customers are using cards and an important share in retail stores and online.
When it comes to the deal considering the growing performance has demonstrated we were able to overcome the targets established and we were able to anticipate by seven years, the discussion of new terms for the partnership.
Once again without harming the performance of the banner opened that is system.
So with this or new condition.
Stench.
Of this partnership for another 15 years.
And the main.
To answer your question is that we'll have new accounts or new Jersey art, including additional customers.
There are different levels of compensation considering X for activation.
Active accounts.
And unemployed highlight which is the steep or a revenue on ethanol.
So this one.
I've read there's a spend.
In terms of Bayer.
It will also have a seat.
And different models of fees for the spend.
And another point that I would also add on is it the other.
When it comes to the sale of card insurance.
This is on other percentages that have been defined for each of these points I mentioned.
About the pause.
And while we've had action.
I looked at the previous contracts, we had always always related this to new accounts.
We had some unfortunate additions.
And then once again just makes this partnership.
Yeah.
We will be successful so 350 million.
For counter and one point for bidding.
The commission anticipation in another one and a half billion with four trashes annually. According to the tiers. So I think that gives you an overview, but I'll be available. If you have any other questions, okay and to contribute because it sounds good I think it really demonstrate.
New.
I'm into that.
The connection that they cover.
With.
Zane E E D and E classes in the capacity of the company has.
To develop them.
Financial service model this level of the population as I mentioned, we've been dissipated.
Good news is a lot more cards ever since we arrived.
We were able tends to pay a contract that was going to expire in the future by seven years.
You gave us the capacity to accelerate.
I think what's important is we really insist I'm, saying that V M M.
Excellent asset and that we are working on ever since June 2019 to unleash the value.
The card is one of these that we have many other assets in the mall in via <unk>.
We had extremely strong and winning.
And so in this asset we just had a 3 billion deal.
Which involves the anticipation of the revenue, but also the expected revenue in this contract is a lot bigger than this amount.
In regard to questions.
Passive funds Alison and then I'll come back for my final remarks.
Hello, Good afternoon, everyone and thank you for the question well I wanted to maybe.
That's split this question into Q1.
One thing is the G M D and one thing is the take rate G. M D.
It's something that had a drop of.
About 40%.
But.
Where are we really.
If it is just the beginning of the year the role of the marketplace.
And out of the marketplace has the role of helping to generate new customers with low cost customer acquisition cost.
It's an activation of our user base and regret restaurant. This is really nice.
We want to be more of a presence in the day to day lives of our customers the marketing approach.
Well. This is how we are now not only talking about CMV, but also in Florida right now won't be looked at order.
Purchases, we've true, 55% and the share of orders than Jim would be also grew substantially.
I think it can be.
In future tends to recover and in the previous call I actually mentioned it would be like the J curve.
J curve.
At the bottom part of the J M.
<unk>.
Sure the take rate.
James.
We already consider that if it's in double digits it would already be sustainable.
And that would already make the marketplace animal without considering of course, all the growth we've been having.
Other ways of generating margin, which would be the final pay later, we also launched in the beginning of the year for three key items and then I'll pause on that.
That also helps us to have a better customer.
And also when it comes to.
Margins and revenue that is super safe, but also.
Of course like.
Even so we become very competitive with great great grandson percentage points below the leader, which gives us flexibility in this journey.
Tobacco, Oh, just two countries.
Hum.
You mentioned that in the first quarter.
Already been doing a lot better when it comes to <unk> performance.
Practically reaching.
A point, that's very close to a recovery compared to the previous year.
She may strategic all we're saying we.
I made this decision a year back and we communicated with the market and we're certainly not being able to be effective.
The average sales a good figure and average ticket.
Oh.
Now that the platform is absolutely stable, we've been accelerating the growth of the order.
And.
We've been really growing this ratio and recurrence of these consumers in this platform.
Well excellent. Thank you for the answers Philip on small cell.
Thank you Louise I'm on now we're going to talk about as you all thought we're going to invite and shrunk audits.
Thank you Gabriel it's afternoon everyone.
A few points here that I'd like to explore one of about once you're fine when we.
For fun said, that's what we're seeing.
You gained a lot of chatter heartlessness, though.
If I'm correct, what do you attribute the market share gains he chooses the price mix.
I would like Barbara one ski and then the second point caliber is that it really called my attention to students ability and its a sequential drop.
In our non payment in the auction.
So when that comes with it.
From you guys, it's very different than the rest of the second I want to know what's behind this dynamic.
Well hi, good afternoon, and thank you for your question about <unk>, Yes. It is true we gained market share.
The original core of the company and here I can say that.
Not in any way connected to greater commercial effort.
We've been preserving occupied.
Profitability and this is really connected to that.
<unk> being an omnichannel player.
And because we're not.
Rooting for a specific channel like digital or physical where all channels, we even have that.
The assisted online channel through our online sales.
The physical store consumers really migrated along come from online do the physical stores.
These past five quarters.
And now we have a major differential.
Sure, we're really gaining a lot of market share from it because it's real but we've also gained market share in one piece from our mine and this is all very connected.
With the Omnichannel approach the company has and the capacity and strain.
Really makes it these items.
Brian one Pete.
So now we're taking all of this capacity to three P. M.
With everything.
Life asked before is caused by yourself.
Everybody is an empty slogan, it's going to be a scaled up process. We're not gonna look about what that's really money to do this.
Should see that more and more of them will be diving into other categories with a lot of strength, but of course without losing the predominance of do we have.
One P. So we are leaders in most of these categories and.
We are in a world Cup year. So we are absolutely prepared for Wimbledon shop, we started negotiations last year for TV.
And in a market where am I.
Later with over eight.
Points in market share gains as I.
I can players.
Super well herd.
And have this fourth quarter and it's also important dimension.
<unk>.
It often a lot better than the third quarter.
So.
We are doing.
Mid teen double digit growth in the fourth quarter.
And one P business online and physical.
And so we're super optimistic.
Florida to gain even more in March.
If I were to look only at the physical doors, we probably want about three percentage points in market share just in physical.
Moving on to call up Ghana, I'm, just going to ask you.
About.
Well part of what we're looking at when it comes to the profile of.
Bad debt or nonpayment and our performance overall is very much connected to this major experience that the company has Brian credit to class C and Brazil. Those over 60 years of experience 90 million customers in our base or algorithms or wasn't even strongly agree with this entire base and the capacity.
Movements in trends.
That is something called a and I will be able to discuss further thank you I'd like to thank you for the question wardrobe first.
Excellent news, which is the ability and are indicators that somebody asked about.
So, especially.
Considering the market indicators, but I wanted to mention that.
Another important indicator is.
The provision for bad debt P D D.
Besides looking at over 90, we also consider.
The portfolios with lower.
Are the delays in the new batches, the one lesson and indicated that stable that means that the health of our portfolio is doing well.
No.
When it comes to sharing a bit of.
How about you mentioned also about why we have these indicators.
They're still stable I think a lot of is related to the his sheets and had a base than algorithms, but I wanted to mention two other points, which are the offerings and condition, we offered to our customers.
When we have the ability and payment rate.
This of course.
Hi conversions. It demonstrates we have an adjustment not only in the definition of the risk for customers, but also that the offering in the condition to provide.
Already adequate to what they're capable of paying and what they can pay for so another thing about those I mentioned I don't know if you noticed but the share of the buy now pay later.
From the second to the third quarter dropped a bit.
Sure. So when we look at all of these indicators internally and also market indicators, we already anticipate some possible adjustments that we can control this more and not harm our ability itself in physical stores. Our share went from 29 to 26 point Stakes. So we anticipated this.
In the second quarter.
Already foreseeing a possible deterioration in the third quarter, and finally last but not least I think that when I.
On that last point, you mentioned that I'd like to go over this.
Because we are.
A bit of our indicators at above 180 days, which is where you have the definition of his boss, it's deteriorated a bed and why is that well because we felt just as the market.
In these ranges with delays is that a little higher we saw more difficulties from the customers to be able to negotiate don't even so we felt a bit of the difficulty.
We anticipated this and performed all of the changes in the second quarter.
For high end and the last detail is bad.
We see a lot of Stifel and nonpayment really focus on credit cards.
They're really focused on it.
Here, we're talking about a product that has installments that are pre defined.
And customers already.
Consider if it fits in their pocket so.
I think it's also helps keep our default really at a stable level.
Thank you everyone.
Ron Thank you so much for your participation.
We have a question from Peter <unk> from <unk>.
Thank you good afternoon.
Actually I have two questions.
Taking advantage of this last question.
With our performance in the us.
Fourth quarter, if you could give us a vision on what the dynamics are for margins.
And also with the dynamic for the cash flow in the last quarter, we had an important cash position.
How 'bout week E with this and how these two elements should behave in the fourth quarter.
Thank you. Thank you for that question.
Oh, I'm, sorry that was in the fourth quarter.
As I mentioned, it's been.
Moving along well.
Our very satisfied when it comes to profitability.
We have not been making more efforts in what we intended to have.
When we formed a budget year, so everything is pretty well balanced out we've also launched.
That's the biggest fan.
Which is really the World Cup.
Besides as Jeff Black Friday, and Christmas, we've already launched our campaign.
For the World Cup in the first and the games.
That were about 40 days ago, which is the whole thing.
So it really became a reason for it.
Messages between families who's going to make more money here.
Cosmos I E mini influences that say, hey, I'm not going to be able to pay for this because there's so many things. So we really hope that Brazil can make a lot of goals and that we can pay a lot of fixed.
So we.
We're at HIMSS, the margins, you're up reasonably healthy but of course.
So we have the fourth quarter coming along.
For a level of a quarter like this quarter, where the black Friday, we're pretty well balanced when it comes to profitability when it comes to flow.
I think it's the quarter, where we most generate cash and our business model because most of the payments that take place.
And that we purchased now occur in the first quarter and so this is a quarter, where we really oh.
Increase the company's cash position.
Do you want a country, yes, well Fisher. Thank you so much and I think that when we look at our outflow from the third quarter, 92%.
The consumption was in the U S.
Reversal of the working capital in the weaker sales that really slowed down where we had a good production.
Fourth quarter.
It's already embedded in getting back to normal, but I wanted to highlight two other points M. D cash excess labor claims were at the bottom part of the guidance, though we're foreseeing that in the fourth quarter.
We should estimate something very similar to this quarter.
James the monetization of credit has been consistently.
Between 400, and 500 million for quarter, and we're also expecting a fourth quarter with stronger sales.
We can reach this tie them part of the guidance. So these two elements are.
Identifying leftover cash position and that's about the quarter. This is a completely different one quarter into the.
The weak quarters and the overall market took place in third quarter, but now were reaching a bit of normality in October .
And the expectation for them the Black Friday World Cup Christmas New years.
And if your sales.
Sales and what's your question.
Really plays in.
Yes.
And this way, we can get back to normality, which is the cat operational cash generation.
Sure.
Okay.
I think you'd be there. Our next question is from any anchor from X P. Please.
Hey, guys. Thanks for taking my questions I have.
The first one is a follow up.
Hum.
Have you felt that the immune system will be and what the J curve first youre talking about total excuse me the <unk> one fees.
Can understand how we should expect this thing.
And then you mentioned that it's almost reaching a breakeven.
And so I wanted to understand why you've been sending out so much from the other players.
We still haven't noticed such good optimistic.
When it comes to durable.
Uh huh.
So even if a pet Campania management, good maybe lead to see there's a difference.
Awesome.
Yeah.
So maybe its more just for him.
Okay.
At the time.
It really call the attention of the growth in W. P.
You've been highlighting.
The release them.
And I wanted to understand more about the ninth grade or dish make services, especially with the open logistic off crane.
Thank you.
Hey, I'd like to understand how the profile of these cells.
The sellers that are already.
Operating in your platform.
Hello, Some third party partners and they continue to operate in display.
Logistics.
You've also been able to attract sellers to your problem through the service business. That's already happening. So I think these are my questions. Okay. Thanks Sunny perfect.
Perfect.
I'm going to start off here.
At this point about recovering the marketplace the J curve.
D M D Anderson VP and we've already started to notice a bit of recovery in the comparable base.
We were already electrical yet less.
Core items.
Well, we had already started to notice a bit of the long tail and a last one or items in the marketplace.
A stronger quarter.
We're already seeing a recovery in a number that's a lot better than what we.
We presented in the third quarter.
No the number and the numbers of this.
Carl here so when it comes once he.
It's also we're optimistic we're just seeing really.
This is a reality.
Oh.
Mentioned for example.
He saw market share gains in that the harder you won't see.
We continued to gain this quarter.
And one of the strong points in the company.
We don't have a channel with safran.
We're not hearing for one channel.
I'll be online are all offline, we're working with customers wherever and however, they want to be serviced. So if the market is moving more towards more and more towards online or hybrid.
Happy with any model.
Hard to work with any model. So I'd say that this is true of Yankee Blah Blah blah blah.
We have and the preparation we have especially these days campaigns in preparation with SOG, but at the moment.
So I wanted to take advantage of this opportunity and things that all of the market share gains preserving the profitability. It's all happening regardless of the fact that we thought was maybe one 5 billion and our song from one year to another so as you've been saying throughout the last quarter due to increased stock when it was important.
Oh, we understood.
Or would it need to anymore because.
There was already products that visibility that we started to talk.
Due to the Saudi Russia.
It really didn't impact anything when it comes to profitability.
So we're closing the quarter with one and have been in last August but.
Even though we've been growing our sales strongly.
I just said it is another matter.
The company has no other operators kind of before I pass it along to them and in fact.
I think it's important to mention that we were omnichannel with everything else here.
Is that first thing or detail Oliver director commercially.
Made this decision.
End of the second quarter, and that's why we decided to do.
We had some omnichannel to class a.
Our commercial teams.
Today, how are we setting the top we're setting it up in the following way.
Just describe that considers to be well.
Do you have the commercial drain cleaning.
One piece health teams of three P sales team, the physical and online sales.
The marketing team the performance being split.
Now we have this company's glad.
One of course, we all focus on the best consumer.
And because this is a channel for <unk>, one fees to be physical or online. So all of this prepares.
Parents is off screen.
Hey.
Well.
Prepare this conversation with our consumer.
And of course, this could be an online physical or one Peter.
Sylvia.
Looking at this time, a commercial perspective.
And now a week instead of one P. J I'll, one we value the consumer has experienced the profitability of this business and be more frequency and recurrent others.
Cynthia when our popcorn.
I'm going to pass upon daily and if someone he can he can answer the other question well hi, Danny about the take rate.
Super satisfied evolution.
Couple days compared to last year, even with this drop in G. M D and supports I mentioned that in essence, okay great.
The basic commission from our marketplaces.
I already have them.
I take great also.
Sure the buy now pay later on logistics.
It would be quite small approach all the rest is growing and then of course, you can have a major potential.
So I mean for growth in the next quarter, but we're very confident and the trend is that we'll have an improvement have ice has already given you. Some references in the month of October .
We're also when we come up with like maybe we've talked a lot stronger as well.
Our earnings it was last quarter and the second question was about the profile Keller and I wanted to declare that whatever we say here about fulfillment.
It's really about colors and.
Hot warm and.
These are on platform sellers that sell on a marketplace sellers are chosen so.
So then we have a matrix for decision, making based on demand based on our capacity for management and the D. C is it already for fulfillment and also our capacity for the logistical network.
But that will improve it and.
Added more sellers.
Profiles products to have a bigger scale.
There's also another business, which is logistics.
As a service, which is an open ocean option.
Gonna be opposite.
This is complementary to the numbers you referred to before but a quite a big epitope, okay excellent Super clear. Thank you so much.
So anything further.
Now I would like to invite makers from J P. Morgan Nico.
Yeah.
Yeah.
Thank you Gabrielle back to Jan Thank you.
Two questions. The first one is about financial services. So how have you been alerting and appetite for next year.
When it comes to services besides them.
Or maybe more initiative.
Martin new initiatives like personal loans kind of as a service and things like that.
And my second question is also about.
The store and I would like to know if you could maybe.
Give us some more information around expenses.
<unk> contains the microenvironment, so pretty weak for these core strategies.
That's it for me.
Uh huh.
When it comes to.
Financial services.
No.
We just ended a year of personal loans through banking.
We're going to continue scaling up on this after a year with.
Performing well.
Numbers that we can demonstrate results or of course, we're going to do a search for better paths and ways to fund this.
Ever since.
I've been doing this for obvious cheaper, we're gonna find better ways to get them there.
But of course, it's something that we're gonna follow on keep growing with them with all of the.
Her that we have when it comes to credit issues.
So it's a challenging moment, we've had we've been very careful about this and we've had excellent performance in the REIT out there that are unimpressed of all alone.
Our carload represented in the presentation, we just.
We have our credit as a forever ready it just became ready and now we're already testing it and upgrading it with a partner and it's something we're going to give up on gasoline.
Yes.
I'll just start it off personal loans, we're also going to scale up.
All of the necessary care, so that we can have a sustained growth.
You want to add on to and against that.
Hum.
Well over time.
It would be really Oh about a buy now pay later law and I think the solution with credit as a sovereign.
It's all about taking our credit intelligence beyond our counters.
We really believe in <unk> customer acquisition, helping us with this.
A lot more through bank with a negative customer acquisition costs and also new revenue for banks. So I wanted to highlights let's.
What's the advantage of our partners towards this version so.
When I compare with the transaction that happens in the credit.
Credit cards.
Our partners will have a charge back because they won't have a risk in this operation and they also won't have transactional rent a car.
So it is a formula that's pretty clean for our customers and it's also going to help with the conversion of the sales as a partner so that most customers want to buy in installments.
Maybe for some region did not have available minutes or credit card. So we believe in this solution alone we are expanding with the solution.
Be able to.
Capture customers beyond them.
Yes.
And as I've mentioned.
Or going carefully working on this process.
Selling up on this.
This decision that we're going to learn a lot with the journey of our partner. So it's gonna be a little different in the journey, we normally have and this will generate a lot of lessons learned.
So we're really happy with the launch of the solution are still at the pilot, but over time, we will be bringing more news. Thank you for the question.
Well I think that as I mentioned.
Thanks.
Just one more powerful asked do we have in our hands.
We have a big connection with humor when it comes from financial services.
So it was certainly going to be able to leverage this and potentially as much as we can during them.
Overtime, so about the second question with the performance of the store.
When it comes to just more offensive we've already worked on a strong program to renegotiate rents.
The program has been very successful considering greater something like Sydney that was generated in sales in the past few periods of time.
Landlords are very sensitive and we've had a lot of success in most of these.
So station, we keep on our assessment Consequently, the store's performance.
We've declared that we administer.
We've opened stores at all.
During the year.
Constant program, we have many different remedies for all of the stores that are not performing well.
One of these remedies work then we just close the store in the south.
So this program is still active.
But we do that.
A recurring pattern and it's important to highlight also the productivity we've been gaining with the stores. So besides the reduction of the expense.
More level, if you notice on page five of our presentation.
The improvement in productivity per salesperson that we had at two P. M.
Was extremely favorable compared with 2019, where there was no pandemic effect in all of the performance doesn't excuse me focus or because it was not very online at that moment, even with this comes parents and their families.
Had a growth of 19% of the procurements for sales reps and when it comes to revenue and over 30% of the pharmacy.
Improvements in one piece.
So all of this omnichannel approach he added.
Yep.
It's more one for me more.
And handling all of our financial service business as well with all of the improvements we've done it well one of them.
We really are coming.
The variables in our hands.
We've been really doing well.
And that will continue to do that so well.
Some opportunities and we're going to continue to capture that first.
As well as all of whom have.
Apologies for my company even more.
As we do as men.
Perform better so it's important to mention also that I.
Everything we're doing is the level of service and we did not in any way, except you worse than the level of service.
So now reached 77% of them yes.
That's our best so far and physical stores the other channels.
We're also moving along very well when it comes from MTS pneumonia to the average in the market discretion age if we exclude them from D D, which is something that's very quickly.
Because we already are the only ones to have this.
Buy now pay later today when.
When we look at the other lines I see the comparison comparisons pretty good are doing well, which does not really comfortable situation. We're just always searching for more and more and.
And more productivity in all of the via assets of course.
Got it.
Perfect. Thank you very clear.
Philip on Scottsville. Thank you Nico for your presentation now I would like to invite Rubin from something that we were gonna see hi, good afternoon guys.
I'm sorry.
I guess part of the comments you made.
The efforts that management has made.
To maximize assets the company has.
All of these.
For example, with.
Surplus securities. So I think that this is andre.
Coming to reality and what can we imagine when it comes to the margins for the company and like two or three years as these new initiatives gain more important or can we imagine that margin level, that's even above history of.
What the company has already reached in the past could you talk about these perspectives a bit thank you.
Hmm.
Thank you for the question first of all how long we've had with build loss because I think the level of margins that the company has have already have already been pretty high compared to the market.
<unk>.
While over time, we do not in any way you can assume.
We were saying we would grow but we didn't want to give up on the margins are going to be able to grow always been keeping up with it.
So I'm not going to give you a guidance now, but what I can say.
A very generic way is that considering.
Our performance fees.
Really accelerate these assets more and more well.
What we are doing.
Hey.
My friend of mine logistics for sellers.
Sure.
Number of marketplaces.
Our solid delivering to the market places with different parties or just.
Just to close I don't if this is being provided as you mentioned some examples that our players are working on first of all but that's a pretty.
Profitable for via so Theres no subsidies there for our sellers.
To do this and one does.
It's quite natural to understand that we will capture more profitability in the business when we look at.
Personal loans for example.
Pennsylvania, we've been experiments.
I'm, a pretty healthy level of people my friends.
To be very profitable.
We fit in and how to fund it and scale it up.
It's going to add even more profitability to the company.
It was the same as applicable.
Seven.
We should be adding more partners over the next four quarters. This is going to grow.
There's a lot of that.
In a very calm manner that we believe we're comfortable to have my credit growth everything regarding our credit engine and other services as well as the mother of retailers as well capturing more humorous.
And I guess that's.
Switching costs. So it's natural to imagine that are generating margin.
All of these other aspects over time will lead to an increments in the margins of the company.
But how about the thank you so much.
Thank you.
We'll be.
So thank you everyone for your participation I wanted to invite your mom.
Please you May proceed.
Thanks, guys for the opportunity.
I wanted to get into a bit of the topic with the physical stores you mentioned.
Yes.
We're more integrated and you know how to operate.
If you could maybe just tell us what you're looking at them in this environment.
Of course.
This increase in interest which are impacting the smaller companies more and I wanted to understand if interest in markets.
It doesn't gain and 300 basis points or maybe in specific regions or where you gained more market could you. If you see this as something that's going to continue.
And also if you could talk about the expansion plan for physical stores next year. Thank you very much. Thank you for that question and your math is showing some while there's not like a specific region, where we're winning so we grew one 7% same store sales. So this is spread around all over Brazil 7.6, and this total MAU and then here you have that.
So we had over time.
Lisa 48 stores have been opened so far 70 670.
5% in new locations with him.
Today, we have opened up a new store in my knowledge, the first seven nor anyone else.
An excellent market for us once again whenever we open up a new store, we have thousands of consumers that have a very low customer acquisition. So the story really as just small customers.
He refused.
Cost of services.
Let me start having the store as a rule of law.
Got it.
Another important point for.
Our financial service business well it became it becomes a bank, we brands and agency <unk>.
Of course, more online sales that double or triple when we add it.
Sure.
So talked about school, we're really comfortable with the performance. We've had it's a story once again, there's always a differential in the company.
Always hard.
Handle this as soon as we arrived and we've been addressing this very well and growing.
And I think now we're going to see.
No.
And the idea was a big concentration in online and also at the physical stores.
Additionally, when.
We have major concentration.
Okay.
We have a very quick.
Sales smoker consumers.
So it was really Congo.
Very well.
I think that when it comes to competition Theres nothing very different.
From what normally happens in the physical stores.
So the environment is very competitive and.
With all of this we've been able to handle this competitive issue.
Kind of preserve profitability and really provide ro and market share.
I'd say that there is no.
Nothing very different when it comes to the competitive scenario.
Of course, the regional players.
Smaller suffer more.
Because of all of the economic situation.
It's a little bit more pressure on the margins and competitiveness.
Because of some other regional player, but nothing that we would seek to bear here is a major modification that competitive.
When it comes to opening up the store.
We are not providing guidance for next year, yet, but yes, we will continue to do it.
Hmm.
Maybe at a pace, that's a little less accelerated until we're able to have absolute clarity of what the.
Economic scenario.
But we're going to continue.
And occupy market, where we are still not present.
We took together thank you very.
Thank you very much.
You might have for your presentation and now I want to go buy an.
Andrew has a question in English and will be Onstream.
Hum.
Andrew Please.
Hi, Thanks every much further question I'd like to follow up on that.
Logistics solution.
The remaining barriers to ramping this offering further.
Can you give some more on the timeline for when logistics services might be needle moving for you.
Thank you.
Okay.
Thanks, Andrew for the question I'll pass the funds pleasure.
It's totally connected to logistics of course.
Well, Andrew good afternoon, Andrew.
Great to see you again and thank you for the question.
One.
Welcome everyone and thank you for participating.
With us are really happy with the performance.
Our open ocean.
And also the performance and growth.
Of all of the fulfillment services, we launched in the beginning of this year, which once again reinforced that.
And the the support.
Tell us on our platform.
We declared in the material that we discuss growth of about 700, then and there.
Switching gears.
To remind you all.
All of the logistical services and.
Every four minutes we provide.
I will remember to grow over a 500% revenue when it comes to be.
Logistics, which was the first topic of your question. So yeah, we're really I'm positively surprised with it.
With this addressable market.
It's really a multi thousand.
It means a free is naturally.
So really focused on these packages and we bring the skill and knowhow.
And the agency a heavy duty products than we've been able to admit it.
The lighter product so.
Note that we've changed year over.
500% in revenue and over 370% open ocean deliveries and above all what most excites me is the diversification of your categories I always notice it.
We've been contracted with them.
For many different customers.
And various sectors so.
Theres not my guess combo mono category by itself.
That of course reinforces our.
Urging of these categories, which gives us all together.
On being profitable in the way we price.
The service.
Yeah.
Profitable we have a benefit.
Not in the exact profitability of the P&L of this operation, which is the dilution of the costs of operation.
Of the traditional ones P. So once again, we have the possibility.
Another two or three years of growth, it's really accelerated three D.
And Oh promotion.
With the diversification of categories, considering that we will still have.
Huge ocean.
Yeah.
For heavy duty.
So I just wanted to thank you all for that maybe it won't take long.
And the conversation that we're just talking about life products and we are talking about life products to be honest at this moment, but we do still have this the frontier with the heavy duty.
Where we are a pretty big as well, we have a lot of scale and a lot of knowledge and so when it comes to getting back to the <unk> switch.
But someone services.
As I already mentioned that we had and have been gradually in the D. C 30 D C.
I'll be able to handle this operation.
For fulfillment and.
Requires.
There's many different companies.
We can't advance with Palo Verde, that's really excellent level. We've also observed that the type of profitability, we have an improvement.
And the satisfaction of our partners and sellers with this service.
Of course, I can beat him and cost of operating and visibility of this order to be able to service our customers.
Chapter once again, it's very much related yeah.
That how 'bout dimension, which really excited because it's a lot because besides growing at major profitable rate.
Also diluting our cost.
Regarding operational efficiency so within.
Just a quick question. We also although it was a year with inflationary pressure that was very significant in general services.
But especially when it comes to fuel and he's got a shift we've had the capacity to operate with more efficiency and unit cost and resize and nominal right. So it was a surprise.
Embedded in our cost of services in our margins.
Thanks, Andrew.
And that whole basket was up in all sorts of my peers.
How about you that was our last question. So I just wanted to thank everyone here for the presentation and pass the floor back on to you for your final remarks.
Okay.
So I want to thank you all.
And I wanted to say that we aren't super.
Dedicated performed the transformation of all of our actions.
And gain more and more productivity.
And then they can accelerate the development of our assets once again I want to highlight that we once again performed a major operation.
Hard asset and we have many other powerful asset in our hands or developing them in a very accelerated pace.
So of course with customers that the focus of all of that really looks like Roe.
Yes, and how we've relayed.
More and more business.
Any precise manner with these consumers. So we're going to continue to develop the business is strongly in the next two quarters with our financial conditions, our logistic and all of our channels and strengthening.
Our relationship with customers more and more about the macro environment.
In Brazil for example, we brought your views.
He's very optimistic.
We're very careful on this video and.
We prepare the company for more.
More complex moments and all of the variables that we consider in our hands Freedman with <unk>.
So that we can make them have the most efficient cost as possible and we will take care of these variables that are not in our hands yet.
And he is absolutely prepared to handle more complex care.
We are also very quickly.
Ah the ratings of sales.
It's proved to be a year with greater growth just as we are working on now in the third quarter, which was a little slower when it comes to sales, but the fourth quarter, we elevated the law and we have the capacity and a team of experienced here at P. M with major capacity to handle different scenarios and a very quick.
Thank you.
Be able to transform them and absorbing handle these different scenarios.
So once again I want to invite you all to I want to thank you all for accepting our invitation to participate in this call.
Thank you all and have a great day.