Q3 2022 Afya Ltd Earnings Call
Your vision, because your bowl and Luisa Bloom our CFO .
During this presentation, our executives will make forward looking statements forward.
Forward looking statements can be related to future events future financial or operating performance known and unknown risks uncertainties and other factors that may cause actual results to differ materially from those contemplated by these forward looking statements.
Forward looking statements. In this presentation include but are not limited to statements related to the business and financial performance expectations and guidance for future periods or expectations regarding the company's strategic product initiatives, it's related benefits and our expectations regarding the market as well.
All of the potential impact from COVID-19.
These risks include doors more fully described in our filings with the Securities and Exchange Commission.
The forward looking statements in this presentation are based on the information available to us as the date hereof.
Should not rely on them as predictions of future events, and we disclaim any obligation to update any forward looking statements, except as required by law.
In addition management may reference non <unk> financial measures on this call.
These measures are not intended to be considered is alicia or as a substitute of these results prepared in accordance with this idea for her.
This presentation has reconciled theres not I ever as financial measures to the most directly comparable ifr as financial message.
Let me now turn the call over to visit a doable August CEO , starting with slide number three.
Thank you Juan and thanks, everyone for joining us today.
I approached the end of the year, we can see ASUR delivered strong results again.
So we will show you throughout this presentation.
So moving on to page number four let's start with block Walkner highlights adjusted net revenue increased 25% year over year, reaching 580 <unk>.
Followed by an adjusted EBITDA growth of more than 19% year over year.
$228 7 million ads with a margin of 39, 4%.
This lower EBITDA margin above a 190 bps below.
Below last year reflects our effort to develop our new growth avenues, and continue education and digital health services.
It's worth mentioning that both segments accelerating the growth pace Walker bike Walker and reached 72% that sleep at 9%.
Top line growth in Q3.
Over the same period last year.
Net income for the same positive trend of less work and reached 321 for <unk>.
A growth of 66, 3% year over year.
EPS of $3 39 has more than 77% higher than last year.
Even considering a higher net debt level and the market thesis rate level.
These results reflect <unk>, great capital allocation discipline on buybacks and M&A and then an efficient capital structure.
We also reported another great cash flow generation and the nine months period with $743 8 million DAU has 34% higher than this year with a cash conversion of 100 points.
Four 6%.
Moving to the second row, two operational base of that water. We have now reached to 7000 medical seats at the beginning of the <unk> operations along with the ship out on that Cup was an increase of almost 50% year over year our null.
<unk> of Undergrad Med school students has reached almost 18000, representing a 13% growth compared to the same period last year.
If you consider vocational segment, because again, we see another great recover after the pandemic effects on practical classes is the business unit has presented a strong organic revenue growth of more than 7% to 2% over last year.
Once again as a reported Grace's results on the digital health services revenue, which ended the quarter with an increase of more than 59% year over year and more than 30% excluding acquisitions, reaching.
Reaching our $45 million.
In the three month period.
Result, reinforced the great opportunities ahead and be still service and has expanded by the strong robot on <unk> engagements with new contracts with it from a silk screens as companies and to continue those ramp up on business to physician contracts.
Last but not least our ecosystem reached 286000 active users.
Growth of almost 60% over last year. This represents almost 40% of the Brazilian physicians and medical students market.
Moving now to slide number five.
This successful conclude the acceptance of new Mexico students for the second half ensuring 100% of coupon to normal office medical schools added to the positive trends on the continuing education recovery and the growth in digital services enable us to reaffirm our previously issued guidance for the entire EU of two <unk>.
Thank you.
The next slide we will talk about how our business execution remains solid presenting relevant updates within August three segments. As previously said beginning this quarter, we have four new Spice medical's operations at <unk>.
The toolbar Bugger, you talked about charter and won a couple of them along with in cell <unk> Lucas We've got on our campus all of them combined totaled 228, new medical seats to our portfolio.
We have reached an impressive number of $2 7000 magical operating fleets.
Strengthening our consolidation is the medical undergrad leader in Brazil.
Back in the third quarter of 2021, we were hoping to see depend included strength.
Now in 2022, we can finally see our students employees and partners is threatening the basketball ecosystem again.
After the opening of six new continued education campuses, we can see for the third time this year, an incredible recovery compared to last year with the strong intake processes neo cost being launches and our practical classes boosting again.
In our diesel serve segments, we are proud to see our of tools being able to assist physicians doing their medical journey.
At the same time, we continued to further explore the development of our ecosystem unlocking new interactions and revenue streams to go beyond the physicians achieve achieving pharma players hospitals labs and drugstore chains.
Roof of that user engagement on the <unk> strategy to grow once we have reached so far 61 contracts with 40 different.
Different pharmaceuticals industry companies.
And now moving to my last slide of this presentation I will show how our commitment to everything we do is being well reflected 12 awards and public recognition.
As a reflection of our great results and actions that are being shown to the market. We are proud to share that for the third time in a row. We have won beyond the wider economic losses present to this example.
Award as the Best Company and dedications segment and along with that we are also ranked as the top 50 company engaged with an open innovation of the country. We are very proud of these achievements as the recognition of the work and passion of our more than 9000 employees around them a unique vision.
To transform how together its dose will have medicine as a vocation.
We can find more information regarding these awards on the <unk> at the bottom of this life.
And now I will turn the call over to Luis Blanco <unk> CFO to give more color on the financial and operational metrics. Thank you.
Thank you Rajiv and good evening everyone.
Starting with slide number nine to discuss the financial highlights of the third quarter.
It is with much satisfaction that I presented another strong quarter of results for <unk>.
Adjusted net revenue for the quarter was up 25% year over year to 500.
80 meter reassess, reflecting the maturation of medical seats.
The beginning of the four months, maybe in Japan on operations.
Higher tickets you mentioned courses.
Hence the continued where the patient recovery means.
Meaning to do.
The interruption of the FX of the COVID-19 pandemic.
The opening of six new campuses in important capitals of the country.
And new courses launching.
Once again the digital segments.
<unk> also contributes to the revenue growth this quarter with the increasing of the <unk> engagements.
The active peers expansions in the <unk> Pete.
For the nine month periods adjusted net revenue was <unk>.
<unk> thousand 724 million Reais and increase up 38% over the same periods.
Last year.
Adjusted EBITDA for this quarter increased almost 20% to 229 meter reais while.
Adjusted EBITDA margins decreased 190 basis points to <unk>.
39, 4%.
For the nine month period, adjusted EBITDA was 720, <unk>, an increase of 29% over the same period of the prior year.
With an adjusted EBITDA margin decreased by 320 basis points of the Syncrude.
The adjusted EBITDA margin reductions is meeting due to the diesel segment, mostly in the performance of net sales in the residency preparatory markets. The exploration of the continued application segments.
Is assume maturing the new campuses and the increase in expenses in the holding a shared service level.
Important to highlight the growth in gross profit for continuing education and digital segments in this quarter.
<unk> the trends observed in the last year.
Moving to the next slides.
Cash flow generations for the nine look beer was almost 34% higher year over year totaling 744 million reais, resulting in a strong cash conversion ratio of 105%.
Adjusted net income for the third quarter of 2022 was 120 meter rents an increase of 3% over the same period of the prior year.
The third quarter EPS increased by 47% year over year.
<unk> was positively affected by the increase in the operation results.
The decrease of the nonrecurring X basis by over 663%.
And the execution of the previews buyback programs.
Moving to slide number 11 for a discussion of key operational metrics by business unit.
Starting with the other grant programs.
I'll remember off medical students grew 13% year over year, reaching 18000 students with operational medical seats increased 15% year over year.
Due to the income tax of 228 Med school seats related to the four mines, Mitch EG Panamax emphasis.
Break loose.
Considering our organic and inorganic seats expectations.
Expense to achieve more than 32, thousands undergrad med school students at maturity.
We far next average tickets increasing more than 9% year over year. We have reached the 1970 8 million Reais combined attrition fees up front with 1406 meter <unk> from the prior year.
An increase of 41%.
Regarding revenue mix, 77% of these the rabbit from medical school students and 19% from health related courses.
On the next page I will present, our continual education metrics.
As said before we saw another cropley, great recovery in our casino relocations segments.
With an increase of more than 42% in the number of students compared to last year.
<unk> 4036 students.
Getting closer to the 2020 figures again.
In the quarter net revenues for the segment grew 72%.
When compared to the same period of the prior year.
This recovery is mainly due to the interruptions of the effects of the COVID-19 pandemic the opening of six new campuses in importance capitals of the country and new courses launching as explained before.
Moving to slide number 13, I will discuss the digital service operational metrics.
Well the first graph you can see our total active players.
Which are those ones that generates revenues in <unk>.
With the continuous growth brands in this quarter, we have weakened the 190000 paying users the 23% growth compare to the last year.
As you can see in the second graph our ecosystem reached 286000 monthly active users representing almost 40% of all Mexico students and physicians in Brazil, as <unk> said before.
Finally on our last graph.
We can see our diesel service net revenues for the quarter.
Which increased more than 59% year over year in more than 30% excluding acquisitions.
This organic growth is a combination of the start of the <unk> engagements, reaching 61 contracts.
<unk> 40 different pharmaceutical industry companies and next patients off the active bidders in DTP, meaning in whites book an iconic.
In addition, since the beginning of the year, we started to break down our digital service net revenue with the <unk> and <unk> segments.
So almost 45 meter of the diesel <unk> net revenue in the third quarter more than 38 million come from the <unk> is more than 6 million come from the <unk>.
Since the <unk> strategy is still humping up.
And now moving to my few less slides I will discuss our cash and net debt position also giving more color on our cost of debt.
Cash and cash equivalents.
At the end of the quarter.
716 meter re us.
Net debt, excluding <unk> 16 totally.
348 meter reais compared to the net debt is up a 1190 <unk> in the same period of 2021.
The increase year over year was mainly due to fix business combinations and life acquisitions executed during the last 12 months Spears payments related to the share repurchase program investment activities and net financial results for the last minute.
Governments.
All partially offset by our cash flow generation.
On the next slide you can see a table with the breakdown of our <unk> and our total cost of debts, considering our main decks.
The <unk> transaction.
Other low wasn't finance and accounts payables to selling shareholders plus other financial obligations.
Our capital structure remains solid with a conservative leverage position and the low cost of debt.
This ends our prepared remarks.
As we approach that.
End of the year, even considering the challenging economic and political scenario we.
We can readily see after delivering strong results.
We've acquirer market by significantly increased in net revenues in our three segments.
Positive a beat to the cash generations, and EPS growth and a consistent business exploration.
I will now open the conference for the Q&A session. Thank you.
So our first question comes from will come back convenient from it.
Luca you May now talk to you.
Okay.
Hey, good evening, everyone and thanks for taking my questions I've got two questions from my side. So first on <unk> itself, we've seen a quarter or a decrease in the number of active payers. So can you. Please provide an update on the competitive landscape in the market.
And then secondly, the company mentioned that one of the drivers for revenue growth was the start of the <unk> engagements can you. Please provide more color on these contracts and its contribution to net revenue. Thank you.
Hi, Luca this is virgilio so above mid sale.
We launched <unk>.
Our new products and beginning of November so the rhythm that we see for new enrollments.
At the bottom of the beta of this new season is much better than we saw in the rest of the year. So we launched the presale on the end of September beginning of October , but the new products the disease wasn't big.
Beginning of November so all the the final version alone will generate more leads and the intake that we are see often November .
It's much better.
And then the rest of the year sold expectation moving forward is that the reduction on mid sell will be lower than we saw in the previous sponsors.
Besides that we are combining mid sale with pillar one so we have another pump mid sales just to one product under the pillar one so the other product it's moving fast and we are also offering continue and the fat content for our physicians to help them not only for.
Residents platform, but also for typhoon <unk> and the other type of <unk> that can support their needs. So we have a better.
Better trend on dealer, one year over year and med sell turnaround is.
Stockholm bulk water.
Hi, Luca it's fluid speaking I'll take your second question regarding the <unk> contracts.
On the digital segments the main.
Driver on the beach will be revenue growth that you see from the third quarter regarding the second quarter or the quarter staff are coming from the pharmaceutical industry.
Is the strategy that we deploy the year on 2000 and EQ and these fee in there.
Well received by the pharmaceutical industry regarding the access from from these four months, it's been boosted through to two hour physicians users.
We've been able to sign full bricks.
More than 60 comp of that contract to now.
These year.
We are providing the access for these.
Pharmaceuticals, which was two <unk>.
Physician base. These these.
A trend that we see.
We are very.
Happy with this growth and we see that.
Have a very.
A great room to achieve regarding this kind of service.
Just to add Luca this is virgilio.
We've just passed.
All of the phase one on the <unk> conference.
First block, where we launched the software, while the kind of landing and expanding type of phone thread.
Hello.
Yes.
It was more like a service that we have to deliver our software defined so our effort right now is not only increasing.
The number of clients in the pharma clients that we're serving but also.
Outside of recurring revenue that we can serve from a longer longer time for a longer period. This type of services. So we are moving on that direction growing a lot not only the number of contracts, but the book value that we have for each sale opportunity on our pipeline.
This remains our the biggest bang for the following year.
And.
You will see good numbers coming from the bids will be for the following quarters.
That's very clear thank you visit them lease.
Our next question comes from fed from Boston.
Needs.
Okay.
Hello, Good evening, everyone I have two questions here as well.
The first one I just wanted to understand the difference between the net income growth and EPS.
We have here at 94 million shares to 21 9 million shares here, maybe we maybe don't have the the ready formation or maybe youre considering belt, there's limits as a repurchase program Thats why you have the difference in EPS. So I just want to make sure.
We get that this will be the first one.
And then the second one.
If you guys could just provide us at which level of <unk>. So you are right. The police we understand is almost like a startup. So you build the portfolio. Eventually you start to scale that eventually these at scale is true dilution of costs and higher margin. So if you look on a three to five year window at which level do you still we are right now.
You very much.
Credits.
Hi, Brad.
Who is speaking for government that yes, you are right.
We have considered the.
The treasury shares that we have in our treasure that so those amount of $3 7 million shares that we have regarding the three buybacks that we've done to now as.
The method that we use for these these reports.
In the last 12 months so as.
Yes.
Yes.
Sure.
More than 12 months then.
The FX regarding the diluted the diluted.
<unk>.
The increase of the EPS numbers regarding the increase of the shows that we have on our treasury.
These amounts comes up so right now we have a.
Approximately $2 seven medium.
Shares in our strategy regarding the second question, so I will begin with that <unk>.
Thats.
Regarding the ambitions that we have on the digital segments.
We see that the <unk> can achieve the one <unk> net revenues in 2028. This is our goal.
Right now right now call for 2008.
We see that the <unk> is the east where we can get most of this growth.
Providing access for mainly for the pharmaceutical industry, providing demand or for the providers and provide the thesis to payers. These are planned the first phase of it is.
Is the launching of service all access for the pharmaceutical induces watts, we are capturing the revenue right now, but we see these.
Diesel center segments as this opportunity of $1 <unk> in 2028.
Hi, Fred boomed, just words points here so during 2022.
The main focus was to complete our ecosystem our <unk> dealer.
And we did that with the last acquisition of bleak.
While CLO sixth pillar.
Having said that we also saw between 2022.
Beginning of the monetization.
On the <unk> contracts, we are growing faster than expected on that we can check also on our figures on top line and also gross margin lumpy up and ramping up very fast. So this is a beauty opportunity in terms of leverage moving forward. So as <unk> said, we are aiming to have 5%.
Of these addressable market by 2028.
And we are in a good trend to reach depths will move into 2023, and we didn't really than a few years to 2023.
But for sure the results coming from both segments.
Be stronger.
Yes.
Deep dive on continuing education and digital service when you compare it year over year will be a much better figures in terms of top line and also what.
<unk> margin for the entire business and profit.
Perfect very clear of the Shire Luis if I may just a follow up.
I apologize but.
On the same topic, when I think about capital allocation right to understand that they offered you use those to take some margin for the consolidated business. So.
How do you think about it.
What kind of metrics you use now.
Is the time to accelerate or not to do so and pressure a little bit more margin or what I don't want to go to a marching below a certain point and then we need to be careful here. How do you think about this this trade between higher growth eventually enough or do you still.
Pressuring margins on the consolidated business. Thank you.
Regarding capital allocation.
<unk> I will start saying that.
We see.
Okay Ah completeness more.
What kind of service, we want to shoot to serve right now so.
The major points regarding capital locations right now.
The amounts that we've done are going to invest.
The new solutions and new bra.
Service that we put within the product so we see it in terms of capital locations.
Itself, it's more.
Business deployments of new services new products.
Inside the <unk>.
Existing product so we're going to expand with organic Capex I would say on <unk> regarding the impact that we have on our on our operational results regard regarding the diesel itself, we see that 2022.
Each incident here that we've got negative.
Sorry, guys.
One start start to refurbish is right now.
Sidestep the office, sorry about that but.
Regarding regarding the results during 2020 June we faced the negative margins that comes from the diesel segments and regarding the 23 had we've gone out we've run our chocolates.
A little bit more next year, but definitely.
2022 was the lower point with the lower margins or negative margins and then we stocks.
Coming from the positive side as the growth the growth comp and Thats, we gain scale and we do not made more business from Nathan as we start to go to do the business development.
Inside of an existing product.
Further time to add here.
Our rule of thumb.
Between 2022 puzzles and ensure we have a lot of our needs in terms of campuses.
Two to improve our campuses film at the license of <unk>.
And also launching that might as manageable and seven new graduates campuses that we are working and operating under the <unk> brand.
So moving.
So at the end of 2022, we have and what's happening is close to 11% of our net revenues for moving to 2023 all of this real real estate requirements.
We have.
Previous years I think it's much lower so we are expecting to have a lower maintenance capex recurring capex on 2023 that would be something to one to two percentage points below.
2022 high quality cash flow and the great majority to be allocated.
<unk> Blanco savvy product developments.
The roadmap of our 16 us on a digital hub.
Perfect Super clear. Thank you appreciate it thank Louise.
So our next question now comes from my cell samples from JP Morgan Knockdown, you may not come.
Hi, good evening. Thanks for taking my question. So I also have true.
I think the first question ties a bit to the <unk>.
<unk> one.
You said that you should have.
Lois point of margin in the <unk>.
In 2022 could you broaden a bit of discussion on margins could you. Please.
<unk> beauty blocks of margins in 2023, what are the detractors in the supports of margin that we should see in the year. That's the first question.
Second question is if you could comment a bit on tuition for the 'twenty. The first half of 2023.
It takes cycle, given that you probably already cetera prices.
What could we expect in terms of tuitions. Thank you.
Hi, my feelings with speaking regarding the margins for 2023, we didn't release that the guidance for 2023 right now we're going to release it.
At the beginning of the year within the 2022.
Here's the results. So we can comment more on when its industry guidance margins over there regarding that we should be.
S.
We usually do.
With the new pricing for these students than for existing students during September and October regarding the our core business regarding the med seems to this.
Most of the units had to apply.
Readjustments of seven 5%.
For <unk>, if our existing and for new students. So we can expect.
An increase of seven 5% sub some units we had a little bit behind that some units, we have a little bit more than that more on the new students, but seven 5%.
It's a number to consider for 2023 price increases.
Marcel just adding on the first question on bulk of the margins.
It's on our lives our three different segments.
The undergrad segment.
We will still maturing operation when you get a yield somewhere around less than big acquisition, we exclude the unique students pending the closing.
We expect it to be big enough January but considering that scope.
We will see some.
Gross margins opportunity in leveraging our.
Operational as underground do you still have some opportunities in terms of margin. We just implemented push all of the transactional activity lower shelf services rolling out season. So we have some efficient that we can have.
<unk> you ended up duration for all of their campuses, but the other lab operations very mature so.
Opportunity in terms of overall margin is lower.
Moving to the other segments, we can see that gradually problems continue method of patient will go very fast year over year. So the proposition you will see much more revenues coming from the gradually.
Our progress.
Then we have in 2022, but we still with lower margins than beyond the ramp so the mix.
We will be better.
On the graduates prongs that will grow faster, but with lower mindful in terms of average can have a negative impact coming from that the same dynamic that we see on the digital because this though.
As when we take a look just for the segment will be much better in terms of margin and gross margin.
By the bottler Alignment's steel have a lower module in and pump there.
For the core under graduate business, So having said that when we put everything will still some how the.
The margin goals, where we operate but we didnt release any guidance, where it will be.
Our range.
2022, okay.
Perfect. Thank you very much break here.
So just a reminder, if you want to ask a question. Please raise your hand next question comes from Vitor Tomita from Goldman Sachs.
Go ahead please.
Hello, Good evening, all and thanks for taking my questions two questions from our side. The first one is that there seems to have been.
A slight decline and non magical healthcare students. In addition to the reduction in non health care students could you give us some more color on that and on what are the decline is related to macroeconomic or competitive headwinds and the second question on our side would be about the beach.
B access features that you are launching do you have any initial sense on how physicians are receiving their changes from there and in their daily usage of digital solutions in their usage experience now that there are <unk> features interaction with them. Thank you.
Okay.
Thanks Tommy.
With speaking here regarding the drop that we have on.
No none known medical power, it's regarding the closing of one business learning for us.
In that we have implemented in one of the new units that we close this these this course.
During the second of the second semester.
That's.
<unk>.
The small revenue and a very small margin contribution. So we decided to close two initiates on the on the on your own they end up with versus the first semester and some in.
Roughly.
Something about 3000 students that we have all these different learning for us.
<unk>.
Regarding the second questions regarding the <unk> features.
We see that we can provide the connection between the physician and the pharmaceutical industry.
This is <unk>.
<unk> Bye bye bye <unk>.
And.
We can.
And.
Because of that that should be very very well accepted we can move.
The expansion in the number of contracts into Nomura.
Pharmaceutical.
But is that we have under our portfolio.
<unk>, we have these land and expanse strategy when we provide.
<unk> provides.
Ah.
Our service for a specific line of products with Leanne brummell.
Pharmaceutical company and then we.
Expanse.
In different line of products. These signs off the same pharmaceutical companies, we have been we've been doing that.
And providing these kind of services.
Patients are.
Our goods with these kind of connections that we are providing.
Very clear thank you.
Our next question comes from Madden Madden, David from could you see might need to go ahead.
Hello residual blown quote thanks.
Thanks for the time.
Two questions from our side. The first one is about the recent acquisition of <unk>.
I understand that the closing.
As I said this forecast is for next year, but any how do you plan to make capital structure to absorb such acquisitions. So are you planning on more debt what is the capital that you were planning to cope with this acquisition.
And the second the second question is about the prep courses of itself.
If you are some way trying to remodeling.
<unk> or <unk> or even trying to rethink about.
The T kids any kind of product redesign that youre seeing now that we are approaching the intake for the for the rest of the year. Thank you.
That's a bit I'll start with that and the heater.
<unk> made some some additional points regarding your units.
We are planning to.
Increase that we are right now negotiating in the final negotiation of these this increase.
And debt to finance the down payment that we have for that we need to do.
<unk>, we expect to close that in next year.
But we.
We didn't close the.
The financial.
<unk> talked with <unk> right now we are very very advanced.
But we havent close.
And we expect to to reach final agreements.
In the beginning in the beginning of December .
Regarding that's our stance.
With that.
We've made a completely first of all nations are completely.
In January regarding regarding <unk>, we changed the product itself, we changed at the price we changes the way we are.
Adverse these this product and we and the way we backed this product.
Starting with the product itself and standoff.
Having a very complete product still speeds all kind of students.
<unk>.
For each one of the distributions that the students wants to pass.
We exclude.
The physical book protocols.
The value propositions, we are right now we offer the physical book as an add on so the basic package is.
E book.
Our feet instead of providing all the contents for the students in the first time.
We made.
Made an assessment of these students and we impact these students with the call.
That's that's the most needed to gas the minimal grades that is needed for the.
The distribution of that he wants to pass.
This specific subject.
<unk> is a SaaS months, the first assessments <unk> performing well.
Be impacted by a very short content and then go bolt.
The simulations that Escalations and.
The snacks.
Very well positioned with these rates. So he is going to be impact of the content that is needed to keep to get improvements. So we make these kind of changes in the broader in terms of pricing we have increased pricing.
Pricing for the 2022 collections at Wassa rounds.
$4 five.
Thousands per year or one year and then with this pricing for about 7000, Reais. So we increase the pricing.
For the province regarding the way that we sell the product.
We give more and more.
Moreover, protagonist protagonist or our teachers with being more on the social networks instead of off for Walnut, adding but we've closed <unk>.
<unk> content and signed off by our social networks and last but not least we are co building global.
The products.
To offer what we say that the pillar one offer instead of just offering so itself now we are offering net sell globally with mentoring and company we have.
Some of some.
Features that come from from casual papers. So we are pulling that and offering to our students and the standoff offers are being very well received by about by the students, but it's a turnaround of all of these offers that we put in place right now.
Yeah.
<unk> just whether you just remember that we acquire casualties is nearly the mid C N N.
And those acquisitions, we have many expect physicians that when entering a more a pillar one helping us.
To review, our product suite and our offer to the market so well.
The influencers the expats in each area so.
<unk> Blanco said, we are giving you much more.
Our professor our features in front of.
The student in tailoring the content for each type of residence for each type of <unk> that they are going top line. So we have much more experience data in their content. That's helped us to change our price them also to revamp our brands. So I'll do this in the very beginning so we have the black Friday, that's a very strong <unk>.
<unk> is doing in November .
And it seems to be launched.
We see very good figures in terms of number but it's doing the beginning.
Where we are going to March April next year to Hal.
Our final results our focus on this new season.
Okay great.
And then additional a complement to the to my question. So.
By remodeling the product by reengineering the product do you expect this to change the way you sell and recognize revenues of it should it be more continues now how would you think about that.
We didn't change that.
Remodeling didn't affect how we see how we capture the revenues are.
The products to pivot so we are going to keep seeing the.
<unk> rolled the fourth quarter and the first quarter.
<unk>.
<unk> net sales.
That's very clear. Thank you because you have to think about.
Hey, good morning.
So with no further questions I would like to thank everyone. Once again for joining us and I hope to see you again in our next conference call.
Right.