Via S.A. Q1 2023 Earnings Call
Speaker 1: Once again, thank you so much for your participation. Gabriel? Thank you. Good to see you again.
Once again, thank you so much for your participation.
Oh God.
Hmm.
No.
Speaker 1: our first question is from Vithar Puneet. Vithar, you may proceed.
Hum.
First question is from Peter Bunin P.
You May proceed.
Speaker 1: Thank you, Gabrielle, Renata, Pajile, Sergio and everyone. Thank you. My first question goes to Pajile. We noticed a variation in the cash position of 1.8 million in the suppliers.
But I think you're gonna be I'll hand off to budget pressure and everyone. Thank you. My first question goes to Virginia, we notice.
Variation in the cash position of $1 8 million.
E a supplier.
Speaker 1: And I would like you to explain a little more about the nature of this adjustment and what we should expect up ahead of 1.4 billion that we still see in the balance sheet, what the dynamic will be to the cash effect on the sign. Well, thank you, Victor, for the question.
And I would like you to explain a little more about the nature of this adjustment.
And what we should expect.
Up ahead of one's waiting for funding that we still see in the balance sheet what.
What's the dynamic.
Cash effect.
On this line.
Okay well thank.
No further question.
And.
Speaker 1: This is a short-term line.
This is a short term lines and get already considered.
Okay.
Speaker 1: of this reduction in about one and a half, half a kilo at the end of the year. But what happened in the first quarter is the first quarter, it's seasonal, it's natural. It's connected to working capital and funding suppliers. So this reduction due to the seasonality of the first quarter has a...
It's a reduction of about one.
End of the year, but what happened in the first quarter is it fair.
He's in all its not sure.
Your working capital and funding of our suppliers. So there's a reduction.
Due to the seasonality with the first quarter has a natural fact, the second effect.
Speaker 1: is basically the conditions with the lower supply in this line and the Brazilian credit line. A lot of banks stopped working with this credit facility which impacted us as well. We still carry an important significant value. These lines are pretty much kept.
Is basically the conditions with a lower supply in this line and a benign credit line.
Bank stopped working with its credit facility, which impacted us as well.
We still carry and unfortunate significant value these lines are pretty much catch it.
Speaker 1: So, that's an important line for funding suppliers. So, we're keeping this leap. Sorry.
And our plan for the next quarters. So that's an important line for funding suppliers. So we're keeping this a leak.
Sorry, Brito can you hear us.
Yeah.
Yeah.
Thank you Julia.
Speaker 1: Not sure if you heard that, but if he comes back, we can repeat it. Okay, I would like to call Daniela Eger for her next question. Danny, please. Good afternoon.
Not sure if you heard that but if he comes back we can repeat it.
Okay, I would like to call. It done then you'll acre for her next question Danny Please.
Good afternoon, guys and thanks for taking my questions.
Speaker 1: First, I wanted to go deeper in working capital and...
First I wanted to go deeper in working capital.
And could.
Speaker 1: Connecting with this point with lower offer or supply, we know this is a moment with the unefficient receivables. I want to know what strategies you guys are using.
Could I thing with this with lower offer supply we noticed in the moment with that especially the receivables I wanted to jump in he was strategy you guys are using.
Speaker 1: to mitigate or offset this lower facility available in Forfe. And also, there's an increase in the stock levels. And I don't know if this was some other movement you guys are trying to work on with an expectation for a stronger demand. I wanted to know what your strategy is behind this stock.
Did mitigate.
Or offset the slower la facility available and Jorge and also there's an increase in the stock levels and I don't know if this was some other movement you guys are trying to work on with an expectation for stronger demand I wanted to know what your strategy is behind the stock.
Besides.
At this moment and then I'd like to also take advantage of this opportunity to ask you.
About a more strategic perspective, which is fishing.
Speaker 1: I know it's not that much time ever since you joined, but I would like to understand what your first impressions are about the company. This movement, this change you had, if you just find some gap.
I know, it's not that much time ever since you joined but I would like to understand what your first impressions are about the company because this movement. This change you had if you just fine.
Yeah.
Speaker 1: or strategic changes now in the company at this point in time.
Oh sure T J changes now in the company at this point in time.
Uh huh.
Well I'm going to start off anything for that and.
Okay.
The for Fe and drawn risk.
Speaker 1: and credit card discounts are very similar. Both paths are feasible and
And credit card discounts are very similar both paths are feasible.
And.
Speaker 1: the reduction of this discount for Forfe or drawn risk, we decided to use more discounts from credit cards in this quarter.
The reduction of this discount for farfetch or drawn risk, we decided to use more discounts of them credit cards in this quarter.
Speaker 1: So these stocks are a little bit greater and we're already getting used to the preparing for the seasonality in Mother's Day.
So.
So.
These stocks are a little bit greater and we're already getting used to the preparing for the seasonality in mothers day.
Okay.
Yeah.
Good night.
Speaker 1: So yeah, sorry, I didn't mention it was for Hinaso, but the
So yeah, I'm, sorry, I didn't mentioned always for Hinata Hooper.
Yeah.
Speaker 1: Yeah, exactly. So thanks, Denny, for the question. As you mentioned, very little time, five days only. And what I could say is that in all of our due diligence process and our decision making, what I reinforce...
Yeah exactly so thanks to any further questions.
You mentioned very little time five days only.
Well, what I can say is that in all of our due diligence process and decision, making what I reinforced.
Speaker 1: and the video yesterday was that we consider VIA to be a very unique differential with a very competitive operation, strong brands, a huge portfolio of customers and a capacity.
On the video yesterday was that.
We consider via to be a very unique.
<unk> show with a very competitive.
Operation strong brands, a huge portfolio of customers that have capacity.
Speaker 1: to adjust the operation. That's really quick considering the market scenario. And this has allowed the team to deliver these results. And in the conversations I've had with the team so far, when you add up this amount of hours, it's quite intense. So we've been surprised positively, right? And there's a lot in the oven.
To just the operation that's really quick considering the market scenario and this has allowed the team to deliver these results and in the conversations I've had with the team so far.
You add up the amount of hours are you it's quite intense so.
We've been we've been surprised positively right and Theres a lot in the oven.
Speaker 1: a lot being built and it's important to mention also that this company went through
A lot being built and it's important to mention also that.
This company.
I went through a very strong transition.
Speaker 1: where we had a team taking over with a big challenge to put it back on track.
Where we had a team taking over with a big challenge to put it back on track.
Speaker 1: and they made intense investments so that the company could have the portfolio of solutions and avenues to grow.
And they made intense investment so that the company could have.
But folio of solutions and avenues for growth.
Speaker 1: and deliveries to our customers. So the company has an infrastructure that's ready, right? We do have two fine tunings to be done. There are important deliveries that need to take place, projects, operations, sales and cost efficiency reductions that are underway, and they will be delivered.
And deliveries to our customers. So the company has an infrastructure.
Sector, that's ready right, we do have to fine tuning to be done there are important deliveries that needed to take place a project's operation sales and cost efficiency actions that are underway.
And they wont be delivered but.
Okay.
Speaker 1: This increases our competitive advantages at VIA. When we look at the earnings in our first quarter, we can see that most of the strong points we have and the productivity in our stores.
This increases our competitive advantage is up here when we look at the earnings in our first quarter, we can see.
But most of the strong presence we have in the productivity in our stores.
Speaker 1: the deliveries that the stores are providing. This demonstrates the differentials. When you look at default being reduced, the NPL indexes, the coverage for aging, and you can see that the know-how with the credit concession is very unique.
The deliveries that the stores are providing this demonstrates a friend Charles when he looked at.
Default being reduced the NPL indexes the coverage for aging.
And you can see that the knowhow with credit concession is very unique.
Speaker 1: And what I most noticed that made me more excited was the people, right? It's a really good environment, work environment. People are working in a very united and engaged way with a clear direction. My agenda, we're not going to see any big drastic changes. What I'm here to contribute with
And what I'm most noticed that made me more decided was the people right.
Pretty good environment work environment for working in ever United and engaged.
With a clear direction.
The agenda, we're not going to see any big drastic changes.
But I'm here to contribute with.
Speaker 1: is so that we can bring more discipline. People already have this focus, right? Now when it comes to capital allocation, so with all of these avenues for growth, we have major potential for growth. I tell you 1P, 3P, fulfillment , solutions.
Is so that we can bring more.
You've already had this focus right now when it comes to capital allocation. So all of these avenues for growth have major potential for growth I can tell you one P. P. P O.
Selman.
<unk>.
Speaker 1: Everything can grow and the allocation of capital, understanding which returns, how much capital we expect to allocate, every quarter and every period, and then really taking care of this in the next returns. So this of course...
Everything can grow and the allocation of capital understanding which.
How much capital we allocate.
Order in every period.
And then really taking care of.
And then when they return.
So this of course will help us.
To understand with greater clarity, how this will impact our numbers up it has but I'm super excited.
Speaker 1: to understand with greater clarity how this will impact our numbers up ahead. But I'm super excited. I'm very positive, surprised, really excited with how the company's been market.
I'm very positive surprises.
I did with how the company has been infected.
Yes.
Speaker 1: And of course you have these adjustments and we can bring in even more than an evolution of the high.
And of course, you have these investments.
And even more than an evolution.
Speaker 1: So the horizon up ahead is very positive because
So the to rise enough ahead is very positive because we've already finished that is where we need to invest a lot of cash.
Speaker 1: We've already finished that phase where we need to invest a lot of cash.
Speaker 1: with most of the machinery or tools that the team has at this point in time. Okay, perfect. Thank you. Okay, thank you.
With most of the machinery or tools up the team passed at this point in time.
Perfect. Thank you. Thanks.
Thanks, Tony.
Speaker 1: Our next question is from Eric from Cinthadere.
Our next question is from Eric from Center there.
Eric You May proceed.
Well.
Speaker 1: Well, good afternoon, guys, and thanks for taking your questions. On our side, the first one when we look at the credit and financial solutions area, I wish you could see that in the NPL we have relatively good numbers with the improvements went up. So we just want to understand what could be a trigger that's a little better with more acceleration in credit granting. You notice any marginal improvement?
Well good afternoon, guys and thanks.
Right.
And I said fun, when we lost but.
Got it.
Sure.
She.
Yeah, we have big.
Big food numbers.
So we just want to understand what could be like.
That's a little better with more acceleration.
Credit.
If you noticed any marginal improvements.
Speaker 1: where you can identify some indicators that could help with the credit granting more. And then when you look at the business...
Sure.
<unk> identified some indicator.
With the credit Crunch anymore and then.
He looked at separately.
And just competitive environment.
Speaker 1: in a competitive environment, especially when you see 1P digital, we see there's still a challenging market, especially when you consider these products that require credit for consumption.
Especially when you see one ski industry at all.
So Oh Jean.
Mark, especially when you consider.
Products that require credit for consumption.
Speaker 1: considering this competitive environment with its relevant player, that's weaker, how have you looked at this from an overall perspective with 1P and the opportunities to have an important turnaround when we think about the first quarter and the slight drop any kind of shift in the second quarter? Thanks!
Considering this competitive environment with relevant player.
How have you looked at it.
From an overall perspective.
And the opportunities to have an important turnaround.
Think about the first quarter and the sites dropped any kind of shift in the second quarter.
Thanks.
Speaker 1: Thanks, Eric. Thanks for your question. I'm going to start talking about the credit indicators. So remember in the last poll I had mentioned that
Thanks, Eric Thanks for your question.
I'm going to start talking about the credit indicators. So remember in the last call I had mentioned that.
Speaker 1: the first quarter of 2016 would have a reception in our over 90 indicators in our provision, which was complete.
The first quarter of 'twenty three.
Have a recession.
And our over 90 indicators in our provision.
Which was some deep.
This is due to do it.
Speaker 1: an issue with change in strategy and our credit policies that we took place in the third quarter of 2022. So when we started this we noticed that the market was deteriorating and we had two important adjustments and up ahead we
As you know with a change in strategy.
Got up policies. So we took place.
The third quarter of 2022, so when we started this company.
Noticed that the.
Mark It was deteriorating arena has two important adjustments.
And I'll go ahead.
Speaker 1: with the harvest in the third quarter, especially in September and more ahead. These have been performing very well, so we are comfortable up ahead.
With the harvest in the third quarter, especially in our brand more ahead.
E have been.
Pardon me very well so we are comfortable up ahead.
Hum.
Speaker 1: We know that the market, the situation of the Brazilian consumers are quite delicate, so we need to be careful about this. And we've been having some occasional credit opening, so in this scenario we're facing, we can't...
We know that the market situations that Brazilian consumers are quiet.
So we need to be careful about.
We've been having some okay no credit.
Opening so in this scenario where Facebook ads.
Speaker 1: joke around, but we're really comfortable because so far things have been so farming well. And we believe that the indicators are going to be stable. Not sure who the second question was for, but
Joke around we're really comfortable because so far things have been performing well.
And we believe that the indicators, they're gonna be stable not sure who the second question was or but.
Thanks.
Speaker 1: Thanks for the question.
Eric Thanks for the question.
<unk>.
Okay.
I'm sitting economic situation nothing changed that much.
Speaker 1: considering the economic situation, nothing changed that much.
Speaker 1: But basically, we opened up sales on the same page as the first quarter. And we were having a big bet on Mother's Day, so we prepared very well, received more merchandise, and extended the terms. And that's when May started really well. So even with Ecommerce...
Okay.
We opened up sales in the same pace as the first quarter.
We were having a big bet on mother's day is always prepared very well.
If tomorrow merchandise.
And extended the term.
May started really well so even with e-commerce.
Speaker 1: being really tough. We're still gaining share. We gained share in the first quarter and we're getting share in April , which was really good. But the market is still very tough, especially for higher ticket products.
Really tough we're still gaining share we gained share in the first quarter and we're getting share in April which was really good but the market is still very tough.
Especially for higher ticket products.
Okay.
Okay Super clear guys. Thanks for the answers.
Speaker 1: Thanks, Eric, for participating. Our next question is from Nicholas from J.P. Morgan. Nicholas, please.
Thanks, Eric for participating.
Our next question is from from JP Morgan.
Nicolas please.
No.
Speaker 1: Thanks, everyone. Next, noon. I wanted to know about your initiative from an expense perspective. Well, have you already done? And what do you think are the main initiatives you could work on throughout the rest of the year to help with your operational leverage? Thanks. Thanks.
Thanks, everyone. Good afternoon.
I wanted to know about your initiatives from an expense perspective, well have you already done and what do you think are the main initiatives you can work on.
The rest of the year to help with your operational leverage thanks.
Yeah.
Hmm.
Wow.
Thanks for the question.
Afternoon.
That's helpful.
Speaker 1: Ever since last year we have been working on some efficiency programs and
Ever since last year, we have been working on efficiency programs and.
Speaker 1: So we have been working on this for the past
So we have been working on this for the past quarter.
Speaker 1: the operations of the doors, productivity, the things pretty high, this big pressure still on inflation. So sales have been...
Orders with the operations or productivity is really high.
Pressure still on inflation.
So sales have been.
Speaker 1: having growth below what it should be, which pressures the cost a lot. And we have been working on an in-depth plan to review this structure. And this goes through all of the areas in the company. So we actually disclosed this.
Having growth.
Low what it what they should be which pressures that's off a lot and we have been working on them.
And indeed, that's fun to review.
Jerry I just goes through all of the areas in the company. So we actually disclosed that.
Speaker 1: We already did part of this in the first quarter, and then the different work initiatives, which I consider beyond the administrative costs, also go through marketing, logistics, and cooperation, and closing of stores and DCs that are not efficient.
We always as part of this in the first quarter and then the different work initiatives, which I consider beyond the administrative costs.
I'll have to go through marketing logistics operation.
Hum.
Closing stores in D C that are not efficient.
Speaker 1: So we're really quick on these plans. And the trend is that on the growth of these expenses compared to last year, it took place due to a mix in the sales, as a source, and NPL related to the revenue. That was really significant. So the rest of the expenses are quite flat. We should go deeper in the future.
Well, we're really quick on these funds.
Funds and the trend is that the growth of this business.
Compared to last year.
Thanks.
Michelle.
Sure then.
They're all related to the revenue that was really.
For the rest of the expenses are quite flat.
We should go deeper in these initiatives.
Speaker 1: which is employment of the initiatives during the year and you should see this throughout the next quarter. But it's going to focus on the whole company really.
Okay.
So I'm going to be finished during the year.
And you should see this quarter.
But it's going to focus on the whole company really.
Yes.
Speaker 1: Thank you, Patria. Thank you, Nicholas, for your participation. Our next question is from Joelle from Bradesco. Joelle, may you proceed?
Thank you.
Thank you Nicolas for your participation.
Question is from as you well from Bradesco drunk May proceed.
Speaker 1: Good afternoon guys, thanks for taking my questions. A few questions actually. One.
Good afternoon, guys. Thanks for taking my questions.
Two questions actually one.
Speaker 1: is about the dynamics for the revenue from services.
It's about <unk>.
The dynamics for the revenue from services.
Speaker 1: So what would be your diagnosis? Are there any levers that you have been working on that should be considered? And the second question is what your perspectives are for the capital improvements? If we can expect any kind of changes or improvements that are more structural in regards to this part of the business.
Or what would be like no.
Haven't are there any levers that you have been working on them it.
It should be considered.
Second question is what's your perspective.
The capital improvement if we can expect any kind of changes or improvements that are more structural in regards to this part of the business.
Okay.
Bill will talk about the revenue for services.
Speaker 1: So the revenue for services, we lost a bit of it. And it started because of the...
So the revenue for services the last bit of it.
Uh huh.
Speaker 1: what we can see that is really in line with the sales of the sign out later, the kid's audio. We've already recovered these at normal pace in the rest of the year. So it's just a specific occasional situation based on the major special sales in January . So then you lose a bit of what you're selling with extended warranty. There are also products that are being exhibited at the store. So we had an important
What we can see them.
It's really in line with the sales of the buy now pay later the majority of what we've already recovered these that normal pace and the rest of the year.
Just a difficult.
The Asia situation based on the major special sales in January . So then you lose a bit of what you sell.
Selling with extended warranties.
Arnold.
Products that are being exhibited at the stores that we had an important.
Speaker 1: a shift of almost 1,800 and we shifted things around for the rest of the year. So it was very original and it's under control.
The shift.
Of almost one fifth and 800 and we.
Shifted things around for the rest of the year. So it was really a occasional and it's under control.
Sure.
Got it.
Now about the word from capital.
Speaker 1: We've already done some work that's very significant in the past.
Sure well, we've already done some work that's very significantly in the past.
Speaker 1: to bring and optimize the working capital and the software, and this should at least some significant continuity. So, variant can recover in working capital investments and we should see this kind of balance from now on.
Jorge to Green.
Optimized our working capital on the right.
These two significant continuity.
So very intense Rick for and working capital investments.
It should be that's kind of violence from now on.
Okay perfect guys. Thank you.
That's all thank you all for participating our next question is from Gustavo <unk> from Oakland.
Speaker 1: Thanks, Jerome, for participating. Our next question is from Gustavo Fettini from
Speaker 1: you may proceed. Hey guys, how's it going? Thanks for taking my questions. On one side here, one, he had a bit of a drop. Then on the other side, this store had a second B. So I want to understand if you looked at this migration a little more back to the store and if you can see this now in the second quarter. Thank you.
Gustavo you May proceed.
Just how is it going thanks for taking my questions.
On one side here, one you had a problem.
And then on the other side, so computing door, how does it seem to be so.
And I understand if you looked at this migration in a little more back to the store and if you can see.
So I cant quarter. Thank you.
Speaker 1: Thanks for the question.
Well first of all thanks for the question.
We've been.
Gaining productivity at our stores.
Speaker 1: Gaining productivity in our stores for many quarters. So we have productivity with our sellers of the stores that are really strong and we've been instrumental.
So we have productivity with our sellers at the stores that are really strong I always been in cement.
Speaker 1: new technologies so ever since we began with the Michel Munezaki commune, what's up are sales reps at the store and so we've been gaining a lot of productivity there. The few have been getting back to the stores but not at the same safe price. So what we're doing is an expansion of the productivity and capacity of the stores. So stores have productivity that's a lot higher than our competitors. This is a big different drop here.
A new technology, so ever since you began with that Michelle MA call me on that.
Our sales reps at the store and so we've been gaining a lot of productivity.
Humans have been getting back to the stores, but not at the same pace.
What we're doing is an expansion of their productivity and capacity.
That's a product that's a lot higher than our competitors. This is a big differential up yeah.
It's pretty fun.
Perfect. Thank you Super clear.
Speaker 1: Thanks, Gustavo, for the question. Our next question is from Charles Lottie from Citi. Charles, you may proceed.
And establish.
Our next question is from troll slot into the city.
You May proceed.
Speaker 1: Good afternoon, guys. And thanks for the call.
Good afternoon, guys and thanks for the call.
Speaker 1: I think it's the first time we've been speaking with Hennaso, so I wish you luck, Hennaso, in this new position, and I want to take advantage of this opportunity.
I think it's the first time, we've been speaking with enough. So I wish you luck cannot.
In this new position and then I wanted to advantage of an opportunity.
Got it.
Speaker 1: We've been reading some notes on our first readings of the previous signage print, and I think it's pretty important to understand some things, so what's your relationship with the suppliers to the aid in the past?
We've been reading some notes on our first meetings with the scientists.
And I think that's really important to understand things so.
Discrimination.
Hey, Todd.
Speaker 1: It was the century to recover a close relationship. And I remember that at the time you wanted to continue the wholesale business, not have to come front. The suppliers and I was just a softer competitive environment. I think there was even a question about this. I think it's important to understand how you look at this relationship today and how the role of this
It was essentially to recover.
The close relationship and I remember that at the time.
You wanted to continue to the wholesale business I'll have to come to the front.
Brunch.
The suppliers. So now it's just a softer competitive environment.
There's even a question about this I think it's important to understand what how you look.
Relationships today, and how the role of this.
Speaker 1: store manager is and before he was focused on selling services and I was more focused on selling products So what's your understanding of the role of the store manager? And last but not least I want to understand the digital operation and how you've been managing this. Let's your mindset like
Store manager is it's before he was focused on selling services, but is more focused on selling products. So what.
Your understanding of the role of the store manager and last but not the only.
I don't understand the digital operation, how you've been managing this what's your mindset.
Speaker 1: in the marketplace. We've seen an improvement of the take rate. So it's really important to understand how you guys are monetizing the business and what you're looking at up ahead in the growth overall for the digital business. Sorry, a lot of questions here, but just wanted to give you a broader vision of all of this. Thanks guys.
The market place so we have seen an improvement.
The take rate.
So it's really important to understand how you guys are monetizing the business and what Youre looking at up ahead and the growth of golf with a digital visit sorry, a lot of questions here, but just wanted to give you a broader vision of all of US. Thanks guys.
So.
Speaker 1: Well, I just wanted to thank him, but of course I'll let Abel talk about our relationship with suppliers and strategy. I don't want to say anything stupid, let me do my homework here. Next time we'll have greater in-depth knowledge to contribute more, but Abel can answer about these for sure.
Well I just wanted to thank him but of course, all that I'll talk about our relationship with suppliers and strategy.
Want to say anything stupid, let me do my homework here and next time, we'll have greater insight.
Knowledge to country more but about can answer about the Fisher.
Speaker 1: Thanks, Joan, for the question. Our relationship with BPM, I'm surprised, is a very strong long-term relationship. It's an important pillar in the company. We have strong partnerships that have been working in the long term. Everything we do, basically, we already have a full year closed with all the industries and the big numbers.
Thanks, Joel further question and our relationship with Fiat.
It's a very strong long term relationship and it's an important pillar in the country. We have strong partners. It's been working for the long term.
So everything we do basically.
We already have like a full year closed with all the industry isn't a big number so.
Speaker 1: The industry has three years without us telling directly this comes in as a long tail. So it is strong partnership and we don't have this kind of struggle for one side to another. And we come to them at each other here in house.
The industry has three key as well selling something.
Something as a long tail.
These strong partnerships and we don't have this kind of struggled from one site to another.
Are we comfortable about each other here in house.
Speaker 1: The other question you have, you have so many questions, so I forgot a few, sorry, I'm up there.
The other question you asked do you have so many questions. So I forgot if you sorry about that.
Speaker 1: Now I think that I wanted to know about the role of the
No I think so.
Wanted to know about the role.
Our manager.
Speaker 2: Well, we get back, we start fundamental to the business, we have a lot more autonomy.
Uh huh.
We thought it's fundamental to the business and have a lot more autonomy.
Speaker 1: the store manager when it comes to discounts and this is something that remains a fundamental piece of the business.
Our manager when it comes to discount.
This is something that remains.
Just a fundamental piece of the business.
Speaker 1: So we have very important productivity, above average, in the market, and financial services are really an important part of our results.
That's why we have very important productivity above average in the market.
Onshore services.
Are really an important part of our results.
Speaker 1: And as I mentioned, we had a frost in January due to the special sales and we reduced our stocks a lot. And we really wanted to prepare stocks for the year. So it was a real occasional situation when it comes to services. But services are definitely something that's super important. So this is something that we continue to have strong.
As I mentioned, we had a drop in January .
Special sales and reduced our socks as well.
And he really wanted to prepare stock for the year.
It was to grow old occasional situation when it comes to services.
So it's definitely something that's super unfortunate.
Yeah, we continue to have strong.
Okay.
Speaker 2: About 3P, 3P is mostly for recurrence, so we get back to growing in the past.
About three P. He is mostly for recurrence so we get back to growing in.
In the past.
Speaker 1: We had a strong team being we converted this bus here to be able to really have this return so we're getting back to growing and so we had a growth of double digits who finished very well and in the quarter we continue to do the same pace of first quarter in three pieces. I really hope the men are watching. And in our show today we have basically...
John D C. We converted this last year.
To be able to read them.
This recurrence and we're getting back to growing.
So we had a growth of double digits. We finished very well and then it's like order of weeks.
At the same pace in the first quarter and three P. So really all elements are watching closely.
Today, we have basically.
Speaker 1: our 20,000 sellers selling our 3-piece stores. So we can fit products that were not part of our portfolio before, and the managers and sellers of the stores can fit us in their sales today.
Or 20000.
Selling your history.
No.
Products that were not part of our portfolio for the managers in Charlotte.
Their sales today.
Sure.
Terrible.
And there's one other point I wanted to cover about the B b.
Business. So I saw there is there are few opportunities.
See some different platforms. So no immediate other platforms as well so I wanted to understand how this has been analyzed by the company has an opportunity in the long run.
So we have a very strong b b.
Speaker 1: It's one of the lines that most of you here working with different partners and we this has really helped
It's one of the lines that most froze here.
King with different partners and we.
Yeah.
So this has really helped us increase.
Speaker 1: our strength in the industry and so I have a strong marketplace some competitors and you've seen this as well.
Our strength in the industry and so I have a strong market by some competitors.
And you've seen this as well so.
Speaker 1: which is a very profitable business line and we're growing a lot.
This was a very profitable business line has been growing a lot this year could.
Speaker 1: more details about this, but it's a sales channel that's super important fordeal ed
To give you more details about this but it's a sales channel it's super important for via today.
Thanks, Paul and thank you everyone.
Once again good luck.
Right.
Uh huh.
Speaker 1: Our next question is from Andrew Morgan Stanley .
Our next question is from Andrew from Morgan Stanley .
Speaker 1: and he has a question in English and we can answer in Portuguese. Andrew you may go.
And he has a question in English and we can answer in Portuguese Andrew you May go.
Just a follow up on E Commerce operation.
Speaker 2: Now all lot together. Most people the over up that we share the mix out get their manodist. The dlist of thepercomce are the da of the longer wecoheside the most deiggrad. The MA place on tell go AC our Hey personso went the together.
Hello, Joe.
Oh.
Sure.
And my daughter, Sadie surface called <unk>.
Although longer equal help I'm sorry.
Oh.
No I got it for all of US all Hipness Crestone when somebody goggle.
Yeah.
Okay Andrew.
Angela can you hear me.
Sure.
Okay.
You don't want to do.
About E Commerce and <unk>.
Speaker 1: the mix with the key and the long tail ratio. Yes, the physicals and theality between the moment we're experiencing in the quarter and we did notice better.
They make them.
And along scale.
So yes.
Analogy between the moment, we're experiencing in the quarter and we did notice better.
Speaker 1: The smaller growth is a long tail item, so we were at the end of what we were having before, but this doesn't change our strategic direction with the role of
The smaller growth of the long tail items that we were and what we were having before but this doesn't change our strategic direction with the rollout.
Speaker 1: Bringing this recurrent in this quarter, you also saw the growth rate of different long tail categories are really high. The Olympic quarter as well, so very very categories. And these diverse and higher sources of revenue, so we're moving towards strategic direction for
Bringing this recurring.
And this quarter you also saw.
The big difference.
Categories are really high.
This quarter as well so for various categories and diversify our sources of revenue. So we're moving towards the strategic they're back to 10 four.
Speaker 1: So we did have a moment where we were going through this difference at seasonal moments, but of course it's a change of strategy. So about the competitive environment and the take-frame, I'm going to connect this.
No. We did have a moment, where we were going through this the most different seasonal moments, but of course it doesn't change your strategy about the competitive environment as it take rate I'm going to do.
Speaker 1: to what we mentioned with greater penetration of services and a focus on the health and profitability of our...
What we mentioned with greater penetration of services and a focus on health and profitability of our.
Speaker 1: You saw our takeaways supported by greater penetration with logistical services and the by now pay later as well. So you know that recently, three or four quarters ago, we started this operation with the by now pay later in the marketplace with a really big horizon for penetration. And so you're going to see we're focused on penetration of these 3P services, which supports our profitability in the operation, while it also brings the strategic objective of allowing for
Operator can you start.
Supported by further penetration with logistical services.
The buy now pay later as well so you know that recently, a three or four quarters ago. We started this I'm not sure what the final bid later in the marketplace with the really big provides independent for penetration and so youre going to see we're focus on penetration.
P services, which supports our profitability India operation while it also brings the strategic objective of allowing for recurrence.
Thank you.
When somebody goggles.
Speaker 3: Thank you very much.
Thank you Andrew.
Speaker 1: And we don't have any other questions, and I'll pass the floor to you for your final remarks. And I want to thank you all.
And so we don't have any other questions and also press affords Hill for your final remarks.
And I want to thank you all.
Speaker 1: Well guys, thanks again. I wanna thank you all for your messages, wishing me good luck. This is of course your hard work. Here we have a lot of fun at that. So good company.
Well guys. Thanks, again I want to thank you all for your messages wishing me good luck.
This is of course too.
Hard work and here, we have a lot of that.
Oh, Okay company.
Oh gosh.
Speaker 1: There are some important differentials and cities, Charles' question from cities reinforces a bit, right? So people want to understand how the company's assets have been performing and how quality is so much higher, right? Is our store manager unique? Did we have all the conversations I had during this month of conversation? I did visit some stores. And you can see that there's a desire to really meet the customers' needs. It's really different. And that's because we know it only Brother K Veterans will be here for 10 minutes, because it would be Bay of dorms day or it will be there for a year or two from a big meeting. It was super like team sizecluder to have lot of pay, probably to hide.
There are some imports in differentials.
Let me translate the question from cities and enforced.
Right. So just want to understand how the company's assets have been performing and how quality. So much higher right is our store manager you mean.
You have there.
The conversations I had during this month of conversation and I did visit from stores and you can see that there's.
Desired really mean.
Meet the customers' needs is really.
Speaker 1: The relationship with the suppliers is long term, but it's solid also. VIA is a lead buyer in different categories and there's strong reliance.
Our relationship with the suppliers is long term, but it's all it all so on.
Here is the lead buyer in different categories.
Strong reliance so we can build this long term alliance as well focusing on both ends today, we have 30 of having this portfolio.
Speaker 1: So we can build this long-term alliance as well, focus on all suits on both. And today we have this comprehensive idea of having this portfolio, the marketplace solution, they find out that it's very strong, the BTP that works well, and this gives us the conditions to optimize the profitability.
The marketplace solution, if I hope it is.
French strong beat to be that works well and this gives us the conditions to optimize the profitability.
Speaker 1: So once again, I'm super excited. I just came in here as I can't reach conclusions yet. I just know my first second flip, but these are positive. And...
Once again I'm Super excited I just came in here, so I can't reach conclusions yet.
So my first perspective.
These are positive and be a.
Speaker 3: So in each of the points we're looking at, we have a lot of opportunities now, staff are team yet.
A big opportunity.
And each of the points. We're looking at we have a lot of opportunities not stop arching, yes, we're gonna be prioritizing the execution a lot more so that we can do.
Speaker 1: We're going to be prioritizing the execution a lot more so that we can
Speaker 2: generate more value. So this is what our agenda.
They generate more value.
So this is what our agenda and I want to thank you all for your presence will be.
Speaker 1: And I want to thank you all for your presence. Soon we'll be exchanging more information we have on this day. So don't miss out on the special sales. If you don't have our app, please download it. You can buy and perform like a person's experience at the best store in Bristol.
Exchanging more information we have mother's day, so don't Miss out on the special sales. If you don't have our app download.
Hi, Ann.
My personal experience is the best storm.
Speaker 1: AND LOVE
Just because I don't feel we have a different.
Speaker 1: brands and we have a lot of different products that have
Brands and we.
We have a lot of different products that have.
Speaker 2: Super valuable access to the company. So we count on you guys so we can expand our company and generate even more value. Thank y'all. Have a great day.
For a valuable asset to the company.
Count on you guys to begin.
And our company and generate even more value. Thank you all have a great day.
Yeah.
Okay.
Yes.
Yeah.
Yeah.
Yeah.
[noise].
Speaker 4: You are a gold-achieving gold-kitter. You major as scheduled. You call the shop. You... You got this, please. And nothing can stop you. Not even a night shift. Are you degree online with more than 175 programs? Apply today to Purdue University Global.
Your goal of achieving go Kinner your major schedule you called the shops.
And nothing can stop you not even the nature or your degree online with more than 175 program apply today to Purdue University global.