GPS Participações e Empreendimentos S.A. (GGPS3) Earnings Call Transcript & Summary

Good morning, everyone. We're here today with the presence of Gustavo, who is also going to share with us the material fact related to our macro structure, and we are going to start our earnings results call of GPS Group. Now moving on to the highlights for the quarter. I'd like to draw your attention to the net revenue of BRL 4.1 billion, a 34% increase in relation to the first quarter of 2024 and 5% organic growth when compared to the first quarter of 2024. Adjusted EBITDA with a growth of 21% when compared to the first quarter of 2024, amounting to a total of BRL 401 million in the quarter, a 9.8% margin in the first quarter of 2025. Adjusted net profit reached BRL 180 million in the quarter, 7% higher than that of the first quarter of 2024 and a net margin of 44% (sic) [ 4.4% ], about which we are going to provide more details during the presentation. We continue with a continuous process of diversifying our customer bases. No concentration relevance was posted. And there has been variations in this regard, and they have been maintained at the share of 4%, depending on the clients. The news that we would like to share with you is a breakdown about our business so that you can view what we have been doing in terms of food that we have intensified a lot with the GRSA coming on board. And also temporary labor services and field market so that you can have a better visibility of the businesses that have the peculiarities. So we can see the breakdown of revenue per solution. So our target is not to have a specific focus, but rather, we would like to build different avenues for growth with a single objective and reality for our company. Facilities safety, which is how we began our business, amplified for industrial services and maintenance. And after the IPO, we have had lots of requirements, and food has become ever more relevant and also security, which is our traditional business and then temporary labor service and field marketing and indoor logistics. We reached the number of 4,604 customers. GRSA is already part of our system, and we have posted an N Promoter Score of 75% based on the survey conducted in December last year. As I said, 34% of our net revenue, our organic net revenue amounted to an increase of 5%. The environment of our company has been facing pressure to reduce costs. And then we see that the bid and agreements suffer a lot of pressure to reduce prices. And we have this continuous objective of prioritizing margin. And so the pace becomes de-accelerated because we understand that what preserves the company's growth is a sustainable margin. So the result of 5% increase in the first quarter of 2024 -- when compared to 2024 is in line of what we have been telling you since last year. So we have inorganic revenues associated with the 5 companies that we acquired last year. And now I'll turn the floor to Marcelo so that he can discuss the dimension of M&A.

Good morning. Good morning, everyone. In '24, '25, we have this plan, and we have 7 acquisitions, which are the companies that you can see on your screen. And this year, we have already purchased 2 companies, RHMED and Nutricar. In the last call that we had last year, we already announced those acquisitions, and the news is that CADE approved to the operation of the last M&A. So we completed the acquisition. We made a payment to interested parties, and we do not have a definite day or when we are going to integrate the systems. But this is something which is likely to happen in the next 6 months. We are very enthusiastic about the acquisitions. We believe that these are very important diversification for the company. RHMED had the purpose of reducing the friction in the hiring process, and the occupational health tests are the activities that take the longest. And today, the process is not very much automated. And this industry of occupational health is very manual, and we have expectation of reducing the friction and automate many of the activities. And GPS is going to be one very important client for this company. And Nutricar that provides autonomous mini market, it has a lot of synergy with GPS, especially with the clients of GRSA. We have expectations of installing an autonomous mini market in each of the canteens at the company. So this is cross-sales that have the potential of increasing the business of Nutricar. Another important relevant date in relation to the acquisition plan in relation to GRSA, we turned the key of the system on January 1. So we went live. So I believe that the stabilization system ended in the end of March. And now as of April, we have already started to optimize the structure. We continue to be very enthusiastic about the gains in synergies that are likely to be completed. We have lots of potential gain, both in terms of personnel, cohorts and systems and release of real estate. And we anticipated a little bit of the synergy so far. In fact, we have already implemented some of the synergy actions for March, and that affected negatively the margin for the quarter, but we've managed to anticipate for March. And specifically about the integration, considering the context, considering the complexity of [ DR ] and even considering the number of employees and the complexity of all the logistics in food -- input of food, we believe that the integration, the induction was very well successful. No problems reached to our clients. No problem at all. In relation to the payroll, I believe that the integration was seamless. It ran without any relevant issue. Gustavo may make some comments about it in terms of the new operation and also the logistic integrations of the food dimension is something which is relatively new for our company. We had this complexity but at a lower scale. But even in -- if we consider this area, which is something relatively new for us, we consider that the integration was very well planned, will succeed -- successful. In April, we have already started this stage of synergy capture. We may move on. And then this is a summary of what we have done in terms of acquisition since the IPO, which was in April 2021. So we have the combined gross revenue of BRL 8.4 billion. I always say that we entered new different businesses, and we knew how to use the M&A tools to open new growth verticals. So it grew a lot in terms of temporary labor and field marketing with 4 acquisitions, maintenance and industrial services, amounting to 8 acquisitions, logistics with 2 acquisitions, catering. And we also made a very important acquisition in [indiscernible] of Marfood. In other words, I believe we were able to navigate in the M&A environment and creating those growth verticals. Of course, this diversification for new businesses add complexity in the short term, and that would affect the regional directors, Gustavo, our team and executive directors because they have to live in an environment which is more complex, and then would focus their attention to new businesses. So they do not have so much time to focus on commercial activities. And of course, the diversification effort would add complexity to our businesses. But we do believe that it's a movement, which is very assertive in the long term. We have [ to begin ] those new avenues for growth at all times so that we are not -- never going to be in a situation in which GPS has a limited room for growth because there's no market. So by adding complexity in the short term is focusing on a long-term strategy. As you all know, so we started 3 new businesses, which is maintenance and telephony and electrical activities and also temporary labor, and this has adversely affected the organic growth as well as the profitability and also because those activities added the important revenue with zero margin. We are still learning in the process. So this is dynamic. It's not a short-term learning. It takes a while for us to learn how to navigate in those businesses. It's just natural that this should be like this, but in the long term, the strategy is very assertive. The last point that I would like to mention before I turn the floor back to Marita is in relation to the acquisition plan for this year. We have already delivered 2 acquisitions, which is Nutricar and RHMED. We are very happy with the size of the pipeline and the size of opportunities that we have, and we feel no pressure. This is the truth. We have accelerated our growth plan with the purchase of GRSA. We, in a way, anticipated by 2 years our acquisition plan when we acquired GRSA, and that added to our indebtedness. And we have been managing to dilute our leverage ratio levels. So we came to the level of 1.6x. And our strategy is as we resume a level lower than 1.5x, which is like to happen in the next quarters, we are going to start looking again at the M&As. I think this is what I had to say. We can move on, Marita.

Marcelo has already mentioned the margin for this quarter, partially affected by the captures of synergies of GRSA. So we have a margin of 9.8%. We no longer break down GRSA and our company because this is already part of the system as a whole. It no longer makes sense to separate what is indirect, what is corporate, which would be connected to operations of GRSA. So along those lines, this is fully integrated into our systems. As Marcelo mentioned, we managed to anticipate some synergies for March, and then we see this being -- affecting the margin in relation to net income. So we have to think about the monetary updates that amounted to BRL 37 million. As a reminder, we have provisions of System S. And considering the increase in interest rates, those provisions are updated at the monetary level. That affects our financial expenses in a very important way. BRL 37 million was a result that was posted for the period. That is the reason why the net income margin is more affected in this period.

Only to add in this comparison that we are making with the quarter of last year. Last year, we had, in definition, we didn't know whether we would reverse the provision. And we wanted to be more conservative and we did not correct in the first quarter of last year the System S provisions. So for you to have an idea, in the first quarter of last year, the effect on the result of the correction of provisions was nearly BRL 10 million -- BRL 9.9 million. And this year, we posted BRL 37 million. So this not so great evolution in the net income was due to those factors.

As you know, we keep maintaining the provisions of System S, and we keep making monetary updates of this provision, and this is very significant in terms of the total provisions that we post. Talking about cash generation, we had operational cash generation. We have interests and rate. We have an increase in relation to the last period. There was an increase in the volume of the debt and also increase in the interest rate. In relation to loans, we have the effect related to the amortization related to loans and debentures. And on the other side, we have the [ link flow ] receiving because of the option swap program that we have every year. When we subscribe the shares, and the shareholders, the partners would pay for those shares. So we received the credit of BRL 33 million related to the option program. In relation to investments, the high impact that we had was associated with the purchase of assets, purchase and sales of assets that amounted to BRL 50 million in this period. We ended with a cash of BRL 1.5 billion, very similar to what we posted in January. And moving on, Marcelo has already mentioned some information about our leverage ratio. This chart reflects the discipline that we have been adopting. We always -- we're always vocal when we communicate with you. We say that the discipline that we have is to acquire, integrate and make this company generate positive cash and create conditions for us to be favored and continue growing, both in organic terms and M&A. So the result of the leverage ratio is in advance in relation to the fourth quarter. And this EBITDA number that we have, this has contemplated the 12 months of GRSA. The numbers would be even better if we consider GRSA of full year, but we use the accounting numbers. So we ended the period with 1.6x, as mentioned by Marcelo. And now we invited Gustavo to be here with us. And one of the most relevant questions that we have in relation to the company is the way we are internally structured so that we can give the continuity of the businesses, and so that this can be our strength for our organic and inorganic growth. So I would like to invite Gustavo to share with us what the macro structure changes were.

Hello. It's an honor to be here with all of you. As Marita said, as a habit, we revisit our macro structure, and we do that very often, especially at the turn of the year after we did our planning, strategic planning meeting when all the leaders get together and we discuss broadly about the future of GPS, our BUs, our targets, et cetera. And as a result of this meeting, we have lots of reflections in relation to how we are going to get organized in the best possible way for the following year. As you all know, macro structure is one of the pillars of our management model. And it's very important to make this year run in the best possible way. And my role as a leader of all the operations is to create a favorable environment so that our entrepreneurs or leaders will do their best. The main purpose of this speech is this. So how can we make all the leaders, all the entrepreneurs and many of them are shareholders or business partners, how they can do their best and have enough conditions to present the best conditions and have the best possible team. Having said that, we made a number of decisions based on the premise of putting the right person at the right time at the right function. And we want to exercise the pedagogy of presence. And this is our motto in our business so that business leaders can be close to the teams, leaders can be close to clients, leaders should convey our culture. And this is something that you mention a lot. You always question this. You ask how we work on our culture. And at the end of the day, our company is a company of people who need to have into personal relationships, especially with our teams and our clients. So having said that, I understand that those changes came about so that we can make our teams or contract managers have a stronger presence in everywhere so that we can make an effort to promote more loyalty and work on productivity. So what were the changes? Let's start with the first box, okay? What you see in yellow really are related to the main changes. We've made lots of changes. I am only going to discuss the main ones so that we can have time for Q&A. Trade and talent is the area that had the highest growth of the company. And so we understood that we should give a special attention to this business, which is relatively new and underwent structural changes in the sector. After the pandemic, there was a reduction of demand. There were uncertainties. And at the time of the pandemic, uncertainties made clients to adopt this kind of service. And after economy went back to normal, after the market went back to normal, so we felt a drop in this business. So we have a business partner that came from the integrated companies. And this business partner has been with us for 4 years, very well aligned, very happy to be with us. And he was -- he had been developing a work in the commercial area. And as of March, he took over as the leader of this business. So it's a business that we manage in a centralized way from São Paulo because we believe this is the best way to work. And together with him, we also brought along 2 regional directors who came from the market to professionals who were very seasoned, very experienced. If we add their experience, we would come to 50 years of experience in trade marketing and temporary work, and they've been in multinational companies. One of them was an entrepreneur in the past as well. So very important experience to bring along so that we can have more specialization in those 2 businesses and provide support to our new executive director. We have already seen results in terms of growth and climate, organic growth in the past few months. I'm not -- I have no questions that this has been a very correct decision. Another important change was the consolidation of the regional technology under the Executive Board of Great São Paulo. Marcos, who is our executive director of Great São Paulo assumes a new regional office, and we are going to promote total synergy in the automation of businesses. And this is what vertical brought to us with electronics, security, administrative synergies, operational synergies, commercial synergies. We now have a regional unit focused on technology for those sectors, especially real estate, industry and hospitals. This regional unit was founded in February, and Marcos is the leader of all this structure. All the people have been very engaged ever since it was created, and we are extremely enthusiastic about the energy of the team and also how our major clients welcome this -- those possibilities that are going to be created as a result of this decision. Another important decision took place in the North and Northeastern areas of Brazil. So we can see in yellow, the North box. There was one executive director responsible for the whole area of the Northeastern part of Brazil. It's a very extense geographic region, a diversity of different cultures, a lot of diversity in this region, teams at different levels of maturity, different portfolio of clients, everything was very diverse. And it was a very important or very difficult challenge for this director. And after a lot of discussion and joint reflections, the team as a whole understood that it would be very important for all the stakeholders to make changes to this structure. So the North has a new executive director. He used to be a regional director for us. So one of the regional directors that used to be based in the Midwest of Brazil will now assume this structure. So it's another example of internal development for our team, which is very important for us to keep our teams motivated. So he assumes the dealership -- the leadership. So he's very enthusiastic, he's very engaged, highly engaged. So he started his activities on April 1 already, and he is promoting more proximity with the team. And he has a lot of experience, a lot of skills as a result of the acquisitions that were made. And we understand that we need more proximity, we need to look at the cross-selling possibilities. So this is the executive leader, the tenth professional of the list. And Midwest is vacant now. And now, there will be 3 regional directors. So now they will have 2 other regional directors. One came from the company Graber, he came from Graber. He was a coordinator at Graber. He became a coordinator. And when GPS took over Graber, he became a regional manager. And now he assumes as a regional director. It's another example of another professional who went up the ladder internally. And we bring from the market the third regional director, a woman, to lead the regional businesses, a person who had already worked with us. He was very active in one of the integrations that we had 9 years ago at GPS. So she has a very -- she had a very important role in the integration that we had so far. She was with us for a long time. Her level of commitment is way beyond the average for anyone who knows the market. It's somebody who came from outside, but is ready to face the challenges. Many changes happened, and these are the main ones. Everybody is engaged, everybody is happy. Many people have received some promotions, and I have no doubt that our clients, our teams gained a lot as a result of those decisions. Thank you.

Let's move on and open the Q&A question. Lucas Marquiori, you had already raised your hand, so go ahead.

So I have a question, and I would like to have some more understanding about the results of the quarter. You said that you were able to anticipate some of the synergies of GRSA. I would like to understand it more clearly. What can we understand in terms of fluctuation? I understand you're not breaking down the details about GRSA. What should, for example, the margin would be? What would the changes in the structure would be? Or did you bring what you planned for the future for the first quarter? So what can we expect in terms of synergy gain? I would like to have this point more clearly explained. And the second question, Guilherme, taking advantage of this moment that you're explaining the new structure, I would like to understand how you see and how you provoke all those shocks internally. I would like to understand how this would affect the organic growth, and to which degree this structure should motivate or encourage or incentivize what would be -- which level of organic growth? And maybe you have a structure limit considering the size of the company. So I would like to understand how you see all those points, please.

Lucas, just to have some alignment, yes, we are not breaking down or we're not disclosing the margin of GRSA, but they are not at the low levels. We still expect to have -- part of synergy is still to be implemented for GRSA in the second quarter.

Yes, that's exactly that. We anticipated some synergies for the first quarter of 2025, but most of them will come in the second quarter, not fully. Part of those will be left for the third quarter or the second half of the year. And what we have been disclosing is that we have to be very careful during this integration because our reputation is very strong. It's very valuable. We have a team which is very valuable not only the operating team, but also all the team that provide support to our activities. So we have been extremely careful so that we are going to be able to use all the talent, place them at the right places. So this game is very complex. So we not only need to make the right decisions, but we make those decisions at the right time. Yes, I would like to say that we have anticipated a lot of those actions to the first quarter. And we are still going to continue this agenda along the second half of the year. As Marcelo said, we are very enthusiastic, we're very excited about the team that was -- that resulted after this integration. In relation to the macro structure, there were many reasons for those changes occur. Of course, organic growth is part of the agenda. We are not happy yet. We believe that we have a higher potential than what we have recorded. But we have others, as I said before. We are going to have the leaders closer to our teams, because a company with people like ours is going to grow as we have more skilled leaders, more prepared leaders. And we can only do that if we are close to the teams. We have to set examples to inspire our teams. So we want those executive leaders ever closer to our clients and our teams. We want more regional directors who can be closer to the clients, especially. So we are intensifying our structure at the regional level because this is how we get organized. And this is an ongoing movement. So this is something that you're going to be seeing in the years to come, more regional directors looking at smaller areas because we have to have more scales, more synergies, more proximity in our operations, et cetera. And of course, we are going to take care of our margin because this is our main mission in the company.

Andre Ferreira.

Could you talk about two topics? The first one, I noticed that in the inorganic growth of 2024 cohort, there was a little drop, BRL 83 million. I would like to understand if there is any seasonality at play, something related to catering at the end of the year or something that could explain this difference. And the other point is the 5% in organic growth. I would like to understand if this is something that is associated with the cohort of 2022. And when do you think we are going to enter in a corrected comparison basis and the growth will become more normalized? And I would like to know if there's any industry or area that is affecting this drop of inorganic growth. These are my questions.

In relation to the cohort, yes. In catering, you have a base of useful day, which is very important for the result of the monthly revenue. And you have a customer base related to industry and schools that may go on vacation, may have some breaks. So you have seasonal changes in the revenues. That's exactly what you said. I believe that we are bringing some seasonality in the catering revenues. And in relation to organic, I don't know if you would like to say something.

Yes, in relation to the organic growth, at first, we have positive prospects down the road, that those numbers will improve, not only because we have been executing more agreements. The commercial activities have been intensified. So I'm very happy with the performance that we have had. And also in the first half usually has more pressure from the clients in relation to price because of the collective bargaining that happened during the time of the year. As we have mentioned in the last years and months, more than 90% of our collective bargains have the base state from January and May. And that really the clients are looking for lower prices, they are looking for more references in the period. And this is when losses usually occur and organic growth will be affected.

Yes, you asked specifically about cohort 2022. What will help you understand the mechanism and create a base, so let's say, coherent, is the breakdown that we are providing you with about our businesses. We provide details about what would be security, what would be temporary labor. And since the cohort 2022 is very important, you will be able to analyze together with us this level of transparency, what would be the effect of the cohort? I wouldn't even say cohort, but rather, I would say business. So there are some effects that are going to be felt, but they are likely to level off along the year, okay?

And only to add in order to ramp up the answer. I believe the temporary labor is not limited to a single cohort. We are talking about the business as a whole. I think the analysis of the organic growth if we do not regard this would have a 5% or 6% affecting it. One of the changes that Gustavo made in the macro structure is our attempt to solve this problem. We hired an executive director. As Gustavo said, it is a partner who came from an acquisition of a company called Única, and he's very competent and he's going to be responsible for this business in the state of São Paulo, where 90% of the volume and sales are. So one of the movements of the changes in the macro structure is to shape our business so that we can navigate more smoothly. So these are the pains of diversification is these are the pains associated with the growth. So temporary labor have affected our results. And we believe that we are on the right path. We understand we need to diversify, and we are changing the macro structure so that we can handle this business in a better way. So this is not limited to a single cohort. All cohorts are adversely affecting the organic growth.

Lucas Nagano, you may proceed.

We also have two questions on our side. One is a follow-up on the 2024 cohort. And considering the seasonality, we expect the revenue to resume. And how can we think about this line, imagining that there may be a pressure for the renegotiation when the contracts are executed. And the other is related to labor-related risks. So I can see there is a downward trend. And can we conclude that the peak has already been posted in the past? And what can we see in the future?

Yes, in the first quarter of GRSA, we had revenue pressurized because we didn't have many working days. February, Carnival time, so we expect revenues to be higher for GRSA because of seasonable reasons. In relation to renegotiations of agreements, a proactive movement is only going to start more intensively as of next year. So we have the systems already integrated. And for us to negotiate with the client in terms of the margin for negotiation, we have to be very confident of what the agreement lacks. So you have to have results. So we have -- and we have to have more historical information. So we have just integrated the system in January. So at the end of March, we ended the stabilization, and we are going to wait 1 year to understand what would be the recurrence of results per agreement so that we can be confident that the agreements are suffering some deficit so that we can start making negotiations. Of course, we are going to have some negotiations of some agreements, but of the contracts which are really working at a deficit. But in relation to the labor risks, I think the percentage of net revenue for this first quarter when compared to the first quarter of last year is nearly the same. I think it was 1.6% difference. So last year, it was a bit worse.

Yes, if you compare quarter-on-quarter, the results are the same. So you have to consider that the number of working days is lower. So year-on-year, there is a downward trend but there is a quarterly movement. So in the second quarter, we are going to have more useful days, so we have more expenses.

So we haven't noticed any important improvement in terms of labor risks. So it has been affecting the profitability yet. But we expect that by the end of the year, maybe in the fourth quarter of the year, we are going to see some improvements in relation to labor-related expenses in the long term, and that makes us very confident in terms of labor lawsuits is how we have been organized. So in a systemic way. So we have the actions all organized, everything reported so that you can have some proof that you've done the right thing. You know the -- you have to have the records of the working hours without erasures. So we implemented a system called GPSvc that digitalized all the information. Everything is recorded. And as of the year, we have everything as a legacy of the past 5 years. And all the documentation will be digitalized. In other words, the employees that file a labor suit. So because when the employee is dismissed, he has 2 years to enter a labor lawsuit. So the new lawsuit will have all the documentation already digitalized. So it makes us very comfortable that we are going to improve the expense profile for the future.

Only to say -- only to consolidate this vision because we still have this negative outlook in relation to labor lawsuits, but it's better than last year. Last year, we ended ROE of 1.9%. We started the year at 1.6%, and we are likely to see an increase in the next quarters. But for the full year, we see a downward trend, far from our expectations yet. I would say that our expectations is to solve this issue and probably in 2026. But what we see is that the results are better and when compared to the previous year. We are now going to listen to Pedro's question.

I have two questions on my side. I would like to discuss what you said about increasing the number of regional directors. My questions are the following. This need of increasing the number of directors is for you to get closer? Or is it -- it's related to a view of competition so that you can ensure that the agreements are not going to be lost? So this organic growth to ensure or to provide more confidence in company? Another question that I would like to ask is related to the provisions of GRSA. I understood that part of it was going to be rolled out to the second half. In terms of magnitude, what could you expect in the first half of the year and also for the second half of the year? Just for us to have an idea in the modeling process.

Okay. In relation to the first question, yes, the answer is yes. We tend to have more regional directors as a result, not only in the increase in the complexity of the company, but the growth as usual. Looking in the medium term, in the longer term, we are going to have more regional directors looking at smaller regions and taking better care of their clients, being more productive, being more closer to them and make them loyal. And that would impact the organic growth of our company. So this is the rationale behind it. There are other reasons, as I mentioned, but this is directly related to the organic growth associated with customer loyalty. Okay, in relation to GRSA, as I said, so a large part of the actions will be implemented in the second half of the year, and there are many variables at play. There are things that also happened at GPS that would interfere in the decisions to be made for GRSA. So it's very difficult to bring an order of magnitude and disclose with you. I would say -- I could say to you that most of the actions will be implemented in the second half -- second quarter, and a part also will be left for the second half of the year. And we are being very careful to do the right thing.

In relation to increasing the number of regional director, this is just natural. This is part of our organizational strategy. This is part of our strategy. The more intense, the more -- the closer you are with the clients, the better because we can have more agility, we can be faster. Everything we do, including when we talk about M&A, we also have some M&A in order to be closer to the client. This is one of the reasons for the M&A. But for that to be successful, we need to scale up because we are going to have different teams, commercial teams, personnel team. For us to reach this strategy, we have to have local scale. So this movement of increasing the number of directors at the regional level is explained because we have more scale. That's really the strategy. What we did which was different is to have an executive director for temporary labor. And this is different from the historical strategy. But this is a diversification of our macro strategy as a result of the new business that we are bringing into the company.

You see, it's also important, Pedro, to make a comparison with the number of leaders that we used to have at the moment of the IPO and the number of directors we have today. And also, the C-level had some changes. Marcelo used to be responsible for all the operations in addition to his own structure. And now we are dividing this challenge. The executive directors that used to be 7 in number, today, they are 10. I was an executive director in São Paulo. And when I changed, I split my structure into 2 executive directors. This is just natural. We are growing. We are becoming ever more complex. And we also see not only the current needs of the operation, of clients, of bottlenecks. We also look at the possibilities of M&As. We are in an ongoing contact with this aspect because the pipeline is very robust, Marcelo said that. And if we know which regions we are more likely to operate, this all would be important so that we can get prepared in terms of macro structure and our capacity to provide services before the deal actually happens so that when the integration process actually starts, we can have more capacity, we can have more leaders to absorb not only clients, but also the team that come along with those teams that need to be -- to have the culture that had to be adjusted. The cycle of planning is to be well qualified so that people can get well adapted, and so that productivity gains can materialize. So there are a lot of complexities that are associated with the active customer portfolio. And when the M&A portfolio happens, they have to converge, they have to be aligned with our macro structure.

So since we do not have any further questions, I would like to thank you all for attending this call. I would like to thank Marcelo and Gustavo, and we are at your service should you need anything. Have a good day, everyone. [Statements in English on this transcript were spoken by an interpreter present on the live call.]