Americanas S.A. (AMER3) Earnings Call Transcript & Summary

Good morning, everyone, and thank you for standing by. Welcome to Americanas S.A. Q1 2025 Earnings Audio Conference Call. I'd like to highlight that for those who need simultaneous translation, this feature is available on the platform. To access it, just click the interpretation button represented by the globe icon at the bottom of the screen and select your preferred language, Portuguese or English. If you are listening to the conference in English, you can mute the original Portuguese audio by clicking on mute original audio. Please note that this audio conference is being recorded and will be made available through the company's IR website, ri.americanas.io, where you can also find the full earnings release here. You can also download the presentation including the English version through the chat icon. [Operator Instructions] We emphasize that information contained in this presentation and any statements made during the conference regarding business outlook, projections and operational and financial goals of Americanas represent beliefs and assumptions of the company's management as well as currently available information. Forward-looking statements are not guarantee of performance. They involve risks, uncertainties and assumptions as they refer to future events that may or may not occur. Investors should understand that general economic conditions, market circumstances and other operational factors may impact the future performance of Americanas and lead to results that differ materially from those expressed in forward-looking statements. Joining us today are the company's executives, Leonardo Coelho, CEO; Camille Faria, CFO and Head of Investor Relations; and Fernando Soares, COO of Americanas. I'll now hand it over to the CEO of Americanas S.A., Mr. Leonardo Coelho to begin the presentation. Please, Mr. Leonardo, go ahead.

Good morning, everyone. I'd like to start by thanking the clients and millions of clients that contributed, that went to our stores, our digital stores in the app and completed their purchase journey with Americanas in this first quarter. I'd like also to thank all who participated in one more quarter, [indiscernible] staff, city logistics administration, the digital teams and the clients platform and partners that are together with us compromising rebuilding and recovering Americanas. I'd like to thank all the business partners, suppliers, sellers that came with us and put the effort in one more quarter to keep with the transformation plan of Americanas. This year of 2025 began with renewed challenges. We continued our transformation plan that was presented previously, the projects of the road map presented in 2024. And those projects are coming reality and getting us closer to the business model that we project in the future, a simple retail that solves people's problems whenever they would like to buy. So we remain on the path where physical stores are truly the heart of our business, offering opportunities for our customers and partners. And among the projects that are part of this reconstruction and we are going to talk about them on the second part of this call is the project called [Galleria], Gallery, which expands commercial partnerships in our physical space and helps monetize the square footage of our units and also acts as a lever for our digital platform. In this initial phase, we launched Conecta, a new model for offering services that are aligned and complementary to product sales. And another highlight of the period was in retail media, where we achieved significant progress, strengthening our relationship with suppliers and to have a greater presence in our customers' purchasing journey. And we also are going to talk about the card, the credit card of Americanas. We're going to talk about that later. And we're trying to make the organization to work closely in all the channels to serve the client in an unique way. And we made consistent and effective progress in customer loyalty by increasing customer identification in physical stores. And this initiative lays the foundation for the launch by the end of the year of our loyalty program. And as I said before, the first product will be the credit card and it will enhance the personalization of the shopping experience through a better understanding of the consumer habits. Still focusing on restructuring and growth without compromising on expense control. We accelerated the modernization of our technology infrastructure in e-commerce in our digital part. We migrated to a robust and scalable solution that ensures greater speed and the channel visibility and new advertising features for the sellers and at the end of the day, an improved shopping journey for our customers. The beginning of this platform has been a stabilization phase, a little more challenging than we expected. But besides our technology partners, we've been recovering this first turbulent phase and we can bring more clients to our digital platform. In line with our projections and expectations, the financial results for the first quarter were impacted by the timing mismatch of Easter that's a special event in the company's sales calendar at Americanas. And this year, the Easter occurred in the second quarter. Easter for Americanas is almost as important as Christmas season. So it's like Christmas was in January, not in December. So it was hard to compare when we compare quarter-to-quarter '25 and '24 not adjusted. But looking at our performance, excluding the seasonal effect, we continued on a path of continuous operational improvement and all the executives here in Americanas, we've been -- have this commitment to deliver the next quarter has to be better than the quarter of the previous year and it happened in the first quarter, of course, with this adjustment of the Easter mismatch. As an example of this trend, the Easter results we're presenting here in the same-store sales metric show a double digit growth. So we are still growing our sales in double digit figures as we planned for the first quarter of '25. And maybe this is a very important point. Camille will talk about that again. But within our planned budget, we had Easter on the second semester. So when we compare the first quarter of '25 with the budget we planned for '25, we are where we should be. We cannot ignore the more complex macroeconomic environment in Brazil and world that, which has affected the entire retail sector and Americanas included. Although the nature of our business is relatively less vulnerable, we remain vigilant to the impacts and we constantly seek ways to mitigate them. Fernando Soares and a group of executives here spent a big part of the previous month traveling to China to unlock new business opportunities within this different scenario in this quarter. As we've mentioned in previous earnings calls, we are still building a long-term story of consistency with many hands and solid partnerships with many stakeholders, especially suppliers, vendors and sellers. The year 2025 is a milestone for the transition from a company undergoing a restructuring to a company in growth mode. I'm not talking that we are not restructuring. But as the day passes, we invest more time and spend more time in building the business and with fewer distractions regarding the Judicial Recovery. We have a very resilient team that was reinforced, strengthened in '24, focused on the purpose of simplifying the lives of our million customers. A picture of this quarter, the first quarter of '25 is just another chapter in the story of a nearly century-old company that will continue to be a retail benchmark in Brazil. Going over today's agenda, going over the schedule for the day, the agenda for the day, Fernando and I will present the results of the first quarter, Camille too. And then Fernando will join us to talk about some of Americanas latest strategic developments. And I'll be back for the closing remarks. Camille, over to you, please.

Thank you. Thank you, Leo. First, good morning, everyone as Leo said before. Moving on to Slide #3. The results for the first quarter of '25 were impacted by the timing mismatch of Easter Day as we expected and we had planned for that. This is a major event for the company. And this year, it took place on April 20, the second quarter. So we'll get the results when we see the second quarter complete. Last year, it was celebrated on March 31, at the end of the quarter. So it was calculated in the first quarter. Just for you to -- to give you an idea in Q1 '24 Easter accounted for around 32% of Americanas brick-and-mortar retail revenues, very representative. This explains a decline in some of the Q1 figures when compared to the same period last year. The seasonal effect, as Leo mentioned before, was expected. We planned for that and it does not represent some figures. It does not represent a deterioration -- operational deterioration. We are still in our path improving quarter-over-quarter. To enable a better comparison, we present here on Page #3, the same-store sales indicator for the first 4 months of the year. So we have 4 months here just for us to normalize [ Pascoe ] effect -- Easter effect, sorry. And so we eliminate the Easter shift effect and provide a view that better reflects the company and actual operational performance. Unfortunately, this is the only indicator we can release for the 4-month period as a management metric and it's not subject to the same disclosure restrictions as other indicators that can only be published after quarterly audits. So same-store sales for the first 4 months of '25 are the most relevant indicator into this release because they reflect and we're going to talk about SG&A later. This is a very relevant indicator. But when it comes to performance of the business, this is the most relevant indicator because that's the one that can translate what we've been doing in the company. Gross same-store sales in the first 4 months of 2025 grew by 14.3% when compared to the same period last year, reflecting a strong Easter performance in April, the main event of the period. So we are still growing by double digits in same-store sales. If we look at the same period, excluding the impact of the strategic decision to stop selling certain higher ticket items such as some electronics, that was something that we talked and where we showed the market quarter-over-quarter. It has an impact on same-store sales. We would have grown approximately 17.3% over the period, which was a strategic decision of the company very like, stop selling certain higher ticket items that reduces the same-store sales. In Easter specifically, our same-store sales grew by approximately 16% year-over-year, Easter '25 against Easter '24. And because of that, we set a new company record for the event with the total sales reaching almost BRL 1.2 billion that Easter did to you. More consumers came to Americanas for the Easter shopping, increasing the number of transactions by nearly 8% compared to last year's Easter. In addition, the average ticket increased by almost 7%, driven by the rise of cocoa prices. That's the main raw material for Easter products production and it increased the price of the products we sell. The declining consumer purchasing power, combined with higher chocolate prices led to a nearly 6% drop in the numbers of units sold. But the good news is that we gained 1.3 percentage points in market share during the event, now holding over 50% of the retail market this year according to Nielsen data. Beyond traditional Easter eggs, customers found a wide variety of tickets with things related to the event and those items had a strong growth, sometimes even higher than chocolate itself. Another Easter highlight was the early delivery of goods to the stores, which kept our stores well-stocked. With low out-of-stock rates, the client entered the store and found what we're looking for, especially for product lines. Another highlight here was some exclusive items that we had, and it was like some items that the clients could only find in our stores, best-sellers and it was a big, big success. The increase with traffic during Easter also helped boost sales in other departments. Since the client enters the store, sees our inventory, a richer range of options and it makes other departments like apparel that grew at higher rates than we could see in previous periods. Hygiene cleaning department that had been a highlight in previous earnings call also maintained high levels of growth during the period. Additionally, in the quarter, we talked about the strategic reduction, planned reduction in the electronics department, but this department showed a less pronounced declines in same-store sales. Compared to same period last year, it was less pronounced indicating that we have a more stable and optimized product mix in this category. Looking on to Slide #4. We also had other events during the quarter like nothing compared to Easter, but it's worth highlighting it. We also had the back-to-school season. We saw over 11 percentage growth in same-store sales, double digit growth when compared to the same event last year. We had more options, new products. And additionally, a number of items sold rose by more than 12% and approximately 14% in transactions, increase in transactions. As I've just mentioned, we had new product lines, expanded our assortment and added to our clients. More options and products added more margins. The event was successful across all regions of the country, highlighting some regions that improved more than others. Moving on to the next slide. We are going to talk about gross profit and gross margin. The consolidated gross profit for Q1 '25, we can see 3 effects here. So the gross profit was BRL 891 million, a decline compared to Q1 '24, a reduction that we expected. The gross margin stood at 29.1% down. If you look at the figures, it declined as well compared to the same period in 2024, it was 33.2%. In the quarter, the gross profit was impacted by 2 things. We talk a lot about the Easter, so there's that. But also some extraordinary events that were recorded in Q1 '24 had possibly contributed to the gross margin indicate and it didn't happen again and we're going to talk a lot about that later. In the chart at the bottom of the screen, we build a rationale to exclude the extraordinary effects that positively impacted Q1 '24 gross profit. So if you look back at the Q1 '24, you can see that and it allows for a more accurate comparison with gross profit of Q1 '25. And these relevant effects were in '24 Q1, a late recovery of VPC that impacted possibly in '24. We also had some tax impacts that affected and we had some other accounting effects like revision of provision. When we add up VPC effects, tax-related events, it's temporary. In that reversion, we have some accounting effects that added up to BRL 200 million what helped in the first quarter of '24. When we exclude these effects, our gross profit would have declined by 12.6%, not 28%. Just a little over BRL 100 million were used and mainly due to the Easter timing mismatch. When we look at the gross margin, excluding those extraordinary effects of this quarter, in this adjusted view, we would have expanded the gross margin to have gone over 29.8% in the first quarter of '25. Just to help you understand and interpret our results, excluding those extraordinary events in '24, it would be a temporary issue. Moving on to Slide #6, we're going to look at SG&A and EBITDA. This is -- we're proud to announce that we are like keep forwarding this optimization of costs. It's just a snapshot, but to reduce the expenses, excluding depreciation and amortization, the SG&A expenses in Q1 '25 totaled BRL 991 million in the quarter, a 10.9% reduction, almost 11% when compared to the same period in '24, and a 33% drop versus Q4 '24. So at the bottom of the slide, you see the EBITDA, the adjusted EBITDA. Just to remind you, what's that, it's always the same concept that we show in quarter-over-quarter. It excludes the Judicial Recovery expense, investigation, impairment, haircut of the regularization of taxes associated with Judicial Recovery. It's our pure business without the effects of the Judicial Recovery and the crisis. And part of reposits, but those were negative, so that adjusted EBITDA was about BRL 20 million negative against -- and the BRL 34 million positive -- BRL 43 million, I'm sorry. And the adjusted EBITDA after granted was BRL 263 million negative compared to BRL 16 million in the first quarter '24. So that was reflected by the absence of the Easter revenue that happened in April this year. In the first quarter '24, it represented 32% of the net revenue as a representative of Easter revenue. So a relevant part of this decline, if you look at the comments in the charts below, it's also explained by the extraordinary effects that I have mentioned in gross profit of BRL 200 million. So when we see BRL 263 million in adjusted EBITDA and BRL 250 million in the adjusted EBITDA ex-IFRS, BRL 200 million of this decline is caused by the extraordinary effects that affected positively our quarter in '24 that did not repeat in '25. So when we exclude the Easter from our results, our results are still progressing because we're talking about excluding extraordinary effects. So it's like BRL 50 million decline if would be excluding that, again excluding the Easter. So I want you to keep that in mind. We've presented the results of this quarter. It's just another chapter in this [ scripted ] growth. And we're going to move to the longer story just to remind you what we're going to -- to build this journey. So let's move on to Slide #7. I believe it's important to highlight the process of pressure delivery in our registry, hence our history. So our same-store sales have shown recurring growth quarter-after-quarter. I'd like to remind you that in '23, through the first year after the crisis '22 and moving past, we cannot use this comparison. So in '24, we grew nearly 15% and in the first 4 months of '25, we grew another 14.2% on top of a base that had already increased by 11.2%. As for gross margin, we've been on an upward trend since 2022, as you can see at this figure or part on the right of the page. And when you see the quarter, you see the gross profit and the gross profit adjusted after the [Technical Difficulty]. So we've continued our intense work on cost and expense optimization with a 37% reduction in SG&A in the last few years, Q2 '24. As I said in the last slide, 11% drop in the last quarter of [ '25 ] compared to Q1 '24. At the same time, as a reflection of all of that, our EBITDA is on an improving trajectory, going from a negative BRL 4 billion in '22 to a negative BRL 41 million in '24 almost. The year '25 marks a transition from a company in restructuring and in recovery to a company in -- okay, the restructure has not been concluded, but now we're much more focused on growth and these results are a clear evidence of that journey, of that consistency of this journey. Let's talk a little about structure of capital in Slide #8. Now looking at the company's capital structure, we ended Q1 '25 with a gross debt of approximately BRL 1.8 million, entirely composed of public debentures issued under the Judicial Recovery Plan, plus BRL 61 million in short- and long-term loans and financing from non-employer companies within the Americanas, that's our only debt. So we've talked about that before, the total of the debentures maturing in 4 to 5 years, we're talking about '28, '29 and we have a 2-year interest rate and we will start paying interest in '26, as shown in the chart at the bottom of the slide. Total cash availability for the company reached BRL 2.1 billion at the end of Q1 '25, BRL 863 million in cash and equivalents in BRL 1.2 billion in card receivables. Thus, the company had a cash and receivables position that exceeded its financial debt. Our cash and receivables exceeded its financial debt by BRL 268 million. In addition, under the -- as we [indiscernible] previous earnings call, under the Judicial Recovery Plan, there is a commitment to settle debts, all debts, before the judicial recovery with suppliers in the Judicial Recovery Plan in up to 60 installments, starting in April '24. So we've been paying monthly installments and most of them will end in 48 months and just the smaller part will be divided by 60. So we paid up 25% of those installments. About the present value of those debts, they totaled BRL 484 million and are properly recorded under suppliers in our financial statements. There is also obligation to creditors that chose either restructuring option 1 or general payment option, which at present value totaled the period in the [indiscernible] within a net. A balance of BRL 13 million recorded under the long-term liabilities. When we consider the remaining liabilities under the Judicial Recovery Plan, our net debt would stand at approximately BRL 229 million at the end of Q1 '25. So we still have a deleveraged infrastructure. So moving on to the next slide, let's talk about cash flow. To break down the change in cash and equivalents plus receivables, between December 31, '24, and the end of the first quarter of '25, we ended 2024 with a balance of cash equivalents and marketable securities and card receivables totaling BRL 3 billion, a figure that decreased by the end of March '25 by BRL 0.2 billion. So the total in cash equivalents and marketable securities from Ame, which are not consolidated in Americanas cash position, are recorded under liabilities associated with assets held for sale, so it will not match 100%, because we add the cash of Ame here. Due to normal retail seasonality, December cash levels are higher, likely due to the fact that most fourth quarter sales are concentrated at the year-end, so our cash is always very good in December, because we have Black Friday and Christmas at the end of the year. So we have all those receivables in our cash position in [indiscernible]. The second bar in the chart shows adjusted net loss, here it's BRL 45 million negative and the third bar, BRL 486 million, that's the biggest figure in our -- negative figure here, because it's the Easter-related fact. It's almost BRL 1 billion in Easter-related inventory and as we've already mentioned in this call, a significant portion of the Easter sales only took place in Q2 '25. So we have all the costs in building up the inventory, but we cannot see the sales in fact in our cash position in receivables here. Also seasonally for retail, this is the quarter in which most supplier payments are made for merchandise, so during the 2 biggest year-end events, Black Friday and Christmas, so we add up the payment of suppliers for the previous Black Friday and Christmas, with the cost of building up the inventory for Easter that we sold. The fourth bar represents interest-related expenses totaling BRL 244 million, which are not reflected in the adjusted earnings due to IFRS 16 standards. So those were the financial highlights of the first quarter of '25 and now I'll hand it over to Fernando Soares, our COO, who will talk about the main operational fronts. It's up to you, Fernando.

Thank you, Camille. Now let's update our projects. I'd like to remind you that we're talking about the same fronts, [indiscernible], projects are aligned with our value proposition, which is focused on the heart of our business, which is [indiscernible]. We're thinking about simplifying the lives of our customers, their families and their various dreams. One of our main fronts is the customer passion, which aims to increase purchase frequency, customer insight and loyalty. And one of the main keys of this project is cliente a, that's our new loyalty program, very important. And all those initiatives will be launched after the second quarter. I'm talking about a very important one. The most important part here is that we've been structuring this program, but mainly improving the pace of our clients. So we've identified purchase moves from up to almost 50%. And it's very important to build all the fronts that are going to be under this customer passion. Also that we saw positive highlights in financial services, with a sale of gift cards over 30%. So let's move to the next slide, for the main highlight of the customer passion launch. That is the launch of our new credit card. This is the flagship of our program, with partnerships aimed to drive a nominee channel journey in financial products and services, with the goal of increasing our revenue. It offers additional benefits, like interest-free installments for up to 12 months, reward points that can be converted to invoice discounts and purchase accounts in-store. We expect to issue 1 million cards in the first 12 months. And I'd like to remind you that it's a partnership between Americanas and Brazil Card. Moving on to the next slide. Let's talk about the Better Store project. It was -- it's a very -- one of the biggest things here is the new sectorization organization. It's a new way to walk around our store, but it's a way to standardize the journey inside our stores. So it was thought about the correlations between the shopping basket and the product categories and based on preliminary tests, we are now ready to roll out a new loyalty layout, starting by Rio de Janeiro. And yesterday, we had the inauguration of the first store with this new layout. Besides that, the biggest news here is the Espaco Conecta. Espaco Conecta is part of the Gallery project, which aims to optimize our store space by allowing partners. We are optimizing our square footage, increasing the productivity of this product and in this first project, offering products from partners and offering services like smartphone repairs, selling cases and we've been harvesting results aligned with our values, but this space will enable products and service trials and it is to attract new customers and improve our traffic and our revenue per square meter. The Galleria project is a broader initiative for real estate optimization. It starts with the Espaco Conecta, but we have 2 new partners signed up and on the second quarter, some good news will be announced for our stores. Moving to the next slide, I'd like to just update a few new fronts and one of them is smart negotiation and Produtos Ar Certo, great product. So our joint business plans with our biggest suppliers will be I, Camille, and Leo, we've been spending a lot of time talking to our main vendors and involving everybody, discussing not only the plan for the year, but future plans and we also brought in retail ads, Camille will talk a lot about the Easter, but we're talking about the July vacation, the summer vacation -- winter vacation in Brazil, I'm sorry. And we have a review in our assortment, not only through and by higher margin, but now we have more different layouts and all the [ CD ] in Brazil will have way more availability, I've asked you compared to last year and Leo also mentioned our trip to China and it's connected to other projects, that is our exclusive items in Americanas. So today in our stores, you can find new items with the tag Exclusive Item, that is a part of our initiative to surprise the client with giving our source, obviously respecting our value proposition in the categories that we want to deliver. I think that's it, Leo, so I'd like to hand the floor over back to you.

Thank you Fernando, we can start the Q&A.

[Operator Instructions] Our first question comes from Lyssia. Using the same adjustment for revenue, including Easter, EBITDA would have been positive?

But we answered that one. It's hard to calculate that size. What we can say is that if we adjusted for Easter, the EBITDA for Q1 '25 would have been much better than Q1 '24, as we showed you here, because out of the BRL 250 million of this transition, this delta, out of BRL 250 million, BRL 200 million would be explained by extraordinary effects, some accounting effects, so it's only BRL 50 million here. So certainly the Easter event would be much more than enough to compensate that [indiscernible]. When we think about zeroing EBITDA, it's very hard to be accurate, but just simplifying the calculation here, we had BRL 1.2 billion in revenue in the event, in taxes applying our average margin, it would be almost a negative EBITDA for the period and we had a noncash, an extraordinary effect, inventory of [ Soleces ]. If we excluded that, our EBITDA would be even lower. It's hard to calculating you precisely, but just as a ballpark post-estimate, I think we could say that, yes, with some confidence.

Our next question comes from [ Rafael Fernandes ] [indiscernible]. What is the strategy of Americanas to increase the sales beyond seasonality?

Thanks for your question, Rafael. Camille, let me start answering, if you want to comment later, I guess. Seasonality is a characteristic of our business. So Americanas is organized and performs really well in events. Camille talked about back-to-school, Easter, Mother's Day, Fernando talked about what comes with the winter vacation, [indiscernible] school vacation. On the Children's Day, we were thinking about Halloween, adding that to our calendar, Black Friday, Christmas. We are a company that has its DNA in seasonality. DNA in our sales [indiscernible], but in addition, when Fernando shows our projects to increase performance, thinking about the customer service, I think it's very clear that seasonality is a component, but everything that we've been doing is aiming at improving the company. In seasonality and our seasonality, the credit card and loyalty program, those are big examples in our effort. The trip to China, we mentioned earlier, we are looking for new products to be part of our inventory in our digital channels. It's another example that we are moving in this direction. Our purpose is to solve the lives, simplify the lives of our customers, we are still looking for alternatives, we are looking for that talk, that identification, that Americanas has in mind and also a very, very wide operational improvement in our portfolio to convert the inventory in our stores and make them produce in higher profitability. So this is our path, so it's important to highlight, Rafael, I've talked about that in previous earnings calls and I'm happy to talk about that now. This is a long journey. We cannot improve Americanas overnight, we have some capital restrictions, we have a Judicial Recovery Plan, we have some restrictions that are connected to the fact that our operations were, for a long time, not the main characteristic here, but we have been restructuring that day-after-day and we want to emphasize our commitment that every quarter that we come here to talk to you, we are going to show results that are better when compared to the previous quarter year-over-year. Fernando, Camille, would you like to add something?

I would say that a good execution of events generates an increase in traffic in this quarter, so it's very important for the clients to see a new store and participate in this experience and come back later. Camille talked about Easter, a very relevant part of Easter, a result was not only an Easter item, I entered our store and saw a wider basket, a wider option, so we've been betting on that to increase the traffic in our stores. When you do that, when we identify the clients, we know if the client is coming back or not, so we talk about that, we deal with that.

Our next question comes from [ Carlos ]. Based on those wonderful projections that we are in the right path, when will we be in the [indiscernible]?

So in general, Carlos, thanks for your question, we are going to be under judicial recovery for 2 years and after that, the judge responsible will evaluate that whether our obligations were complied with or not and if we complied with judicial recovery status. It depends on the judge, but we expect that our judicial recovery exit will not take longer because we've built all the obligations, we have some debt to be paid and we've been paying, as I mentioned, till February next year, we'll have settled almost half of the debt required, so our expectation is that this deadline will be -- the judge will see that we've been complying with everything under the Judicial Recovery Plan, I mean.

[Operator Instructions] The Q&A session has now concluded and I would like to give the floor back to the company for their final remarks.

Thank you. We talked a lot on Easter and the fact that we had a first quarter. So let's wrap up talking about that, just to emphasize that we're still on an increase and an improvement journey in same-store sales. When we're talking about the Q&A, Camille showed the reduction and this reduction is even higher if we consider the inflation effect on the grid, we're showing in the real figures here, but what we've been doing here with high noise is to build a company that allows, allow us to serve the client, never because we're once upon -- poor in the digital channels, the app, but we've been building a structure that is focused on the efficiency of the processes and solving the pains of the client. And we're not separating them by channels, so this is maybe our motto throughout 2025. So it's important to remind you, it's something that Camille and I talked about last earnings call. Even with this prognostic behavior, when it comes to channels, we have different levels of maturity in each one of our channels, so in like physical stores we're focused on productivity and Fernando showed the initiatives ongoing. Digital channel, we're still focused on the transformation of digital, with the new value proposition and omnichannel price. And in our PCP platform, clients and partners, that's our financial retail, focused on the creation of new products, like the credit card and the loyalty program are 2 big examples of that construction. Therefore the year 2025 marks the transition, the smooth transition from a company restructuring and recovery to a company in growth mode and [indiscernible] value. We believe in the strength of our operations. We trust a lot in the resilience of our teams and obviously, respecting the trust of our meetings of customers and vendors to achieve these goals, these restructuring goals together. It's a long -- we have a long journey ahead, but we've come gradually delivering more efficiency and better results for all stakeholders, especially the shareholders. Thank you all.

The conference referring to Q1 2024 (sic) [ 2025 ] of Americanas S.A. is now concluded. The Investor Relations department is at your disposal to address further. Thank you all for participating and have a very good day.