Grupo Casas Bahia S.A. (BHIA3) Earnings Call Transcript & Summary

[Foreign Language]

[Foreign Language] completing the suite of services for Envvias and our omnichannel approach. We've already launched 19 of the 120 stores. And we'll be launching the 120 this year. But we are already in the phase producing the stores, and all of them are set up to meet the e-commerce demand in 1P or 3P. And so our stores are not a POS only. And so it's a relationship spot. And as a logistical hub and accelerator for the sales online in each location. Our over 20,000 sales reps in stores really became an important lever of strengthening our strategy omnichannel. And this quarter, we -- they were responsible for over BRL 2.1 billion. Based on these advantages, we will accelerate our growth even more, including other professionals in the platform with the speed and efficiency. So it's really -- we accelerated entering the game. We are really excited with what's coming around. So now I would like to start with the presentation on the slide. Before I start talking about the first slide, which brings in our results, I would like to initially make a remark, which is after we launched our earnings that everyone is talking about our EBITDA. And I just wanted to highlight that the month of April, we had almost the entire amount of our stores closed. So this EBITDA that we're looking at this month is not our recurring EBITDA. This EBITDA is coming from what we were able to achieve in a strong recovery with -- regardless of the stores closed. And what's different here in the last quarter is that this month of April, we do not have the government support with the corona voucher that helps with the payment for the employees. So this is an expense we didn't have last year. And this year, we had it without the stores open. So in the same way, the rental negotiations also do not come in the same speed as the previous year because it was more intermittent in the period with the closings. But I would like to mention that this EBITDA we are noticing in this quarter is not a recurring EBITDA. We continue to post a really liking profitability. We are more towards 7% and 7.5%, which is what we were doing than the 6.2% that we are demonstrating now. And so now about the highlights in this quarter, we are already, for the past 7 quarters, demonstrating that there's major consistency in the [indiscernible] gaining market share. In this second quarter despite having the stores closed in April, we added a record with over BRL 4 billion GMV versus the second quarter of 2020. And I want to remind you that in the second quarter last year, online for the company was really strong because the stores -- physical stores are closed. So we were able to reach a total BRL 11.4 billion in GMV, gross GMV, which is an increase of 51% compared to the second quarter last year. This performance represents strong acceleration when compared to the growth in the first quarter, which was 27%. So we were able to add a lot of growth into the second quarter. 65% of the total GMV came from digital sales. So we had growth of 7% in 1P and 85% in 3P. So 65% of the company's GMV is already operating digital. So here's some relevant data in the second quarter according to the Compre & Confie data. Online sales grew 36% compared to an evolution of 17% in the market. So we continue to grow more than double what the market is growing. As we had already disclosed, we are able to get back to exchange data with Ebit. And so there's -- we reviewed our customer base that represented an increase of 10%, the total amount of the market. And in the next slide, we can see the share in the Ebit of and of the Compre & Confie. On the last 7 quarters, this growth was 2x greater than what the market is growing at, and this demonstrates our strategy and our strong focus on growth in market gains in this quarter that was very challenging. Due to the social restrictions and the closing of the stores, we had the option to expand our investments in order to attract new customers and promote various new category that entered our ecosystem. We could have done this through cashback, free rate reductions and discounts or a combination of all of these factors, but we decided to expand the activation of new customers. And in our perspective, we were very successful with this. We had positive growth gains in share. We grew double what the market grew and we added 4 million of new customers in our active customer base. Now about the third quarter. Now what's going on is in July, for example, the market based on the Compre & Confie data, the market grew 8.5%. Via, in the month of July, grew 43.9% based on Compre & Confie data. And the market without Via grew 3.4%. So in the month of July, we continued this trend of growth gaining market share upon the -- above the market level. So up until the 10th, which is what we have defined here, the total market with Via is growing 25.7%, Via grows 66.1% and the market without Via grows 20.4%. So we gained 4.1 point a share in the month of July compared to last year, and we gained 3.7 market share until accumulated amount in August 10 based on data of Compre & Confie. So we continued also in the third quarter with an extra pathway of growth. Now about vendedor online, it's been an important lever on performance online, and it is prepared and incentivized to sell product for 1P and 3P. The one interesting data is that about 30% of the customers that use vendedor online are new customers for Via. And we also have been able to reactivate many customers, 30% of the customers that we service are customers from our inactive customer base. So we're activating this a lot. It's a very important and powerful tool to add on new customers and activate customers that aren't active. And so there's an important differential for the increase in GMV in 1P and 3P, the customer acquisition and also return. And so it already was responsible for 18% of the sales on marketplace. So this is the big differential. Platforms that are just pure marketplaces or you're digital do not have the sales rep. So we are heading towards a lot of places that people don't go to. So this is one of the big differential, and I'm going to be demonstrating this also with -- if [ distinct ] with other differentials as well at Via. In Investor Day, we mentioned we would be delivering a live commerce now in the first semester. We've delivered and already represent another important tool [ back in July ] all of our sales team, online as well. So I'd like to ask you to now share a video, let's talk about our live commerce. [Presentation]

So now we're going to talk about the evolution of this, and we're going to present the numbers we've been having in our marketplace. So to highlight what I've already mentioned in the beginning of the call, and what we have been repeating ever since Investor Day is that 2021 is the year of marketplace at Via. So last year in June, we had 6,000 sellers. We reached -- we had 10,000 sellers in the end of December. We start the year of 2021 with 10,000 sellers. We reached 59,000 sellers. And now in June, we've already -- in July, we've already reached 70,000 sellers. So when Alison mentioned at Investor Day, and we were confident we would reach between 70,000 to 90,000 sellers this year. Well, we are already moving at a strong pace towards this evolution. So we went from 3 million last year and we already have 31 million SKUs in our platform. So we've connected our first international partner, NocNoc, which allows for the sale of imported products from Asia and the U.S. And we will have good news as well in the cross-border in our marketplace. We can also highlight that we are not only sales rep or electronics, we're very close to have the infinite shelf, which really helps with the recurrence of customer. And the sales in the marketplace increased 85%, reaching 22% of all the digital sales. We almost doubled the numbers in 2020. In 6 months of '21, we made 80% of revenue produced last year in 3P. This step forward in our marketplace and our capacity to generate demand and especially our capacity for delivery. The marketplace is another important platform to add on to our ecosystem. And together with strong potential in 1P, our omnichannel approach or Buy Now, Pay Later and our logistics really leveraged more and more of our recurrence and the acquisition of new customers. So in the next chart, we can observe some example of increases in sales in long tail category in 1P and 3P, the biggest amount of value and the increase in the assortment and biggest amplitude in categories along with a new strategy and commercial structure dedicated to the marketplaces that added up with the initiatives that are going to come within this year such as the 3P payment booklet and the fulfillment to seller, together really places us at an equal position in this field in the market. And we are definitely disputing this leadership in the market. On the next slide, we're going to talk about another strong point, which is our path for financial solutions. Here, we've had evolution, all the indicators. We've added more customers in SCD and so our portfolio will be reinforced by the SCD license that we received for banQi, which also fill in a gap for credit granting that's really underdeveloped by the fintechs in the Brazilian market. And for banQi, we're using this full experience for the Buy Now, Pay Later that this company has been building throughout this year. So at Via, we have the biggest case of Buy Now, Pay Later in Brazilian market, which really brings excellence in our opportunities. So if we take a look at the slide, well, as we talk about the opportunities that we've been seeing, I bring in a survey from McKinsey that shows the trend for this payment method in the American market. We know that major players for BNPL abroad like [ ACLAN ] Afterpay and others have installments and very few installments and with no interest. But at the end of the day, this is a -- it's like a pay now -- it's like a buy now and pay later, which is basically what we've already done for many years, and of course, customized to the needs in Brazil. The main message here guys is not the potential for penetration for the Buy Now, Pay Later in the American market but the conclusion of the study on the benefits of this tool add to the ecosystem. This tool brings in high rate of conversion. It increases the volume of spending. It increases the number of customers. It increases the recurrent, and it reduces the customer acquisition cost. So everything that the platform normally search for, these kind of tools can add on to. So on the next slide, as we take a look at our numbers here and our history, no other player here in Brazil have the legitimacy and tradition and experience to offer credit ad Via does. Via is really a pioneer and leader in the Buy Now, Pay Later modality. Here, there's no discussion. We are on this pathway for over 6 decades. And now I would like to call you on a video that will talk about what this story is all about. [Presentation]

Well, as you've seen, we certainly have a long history and potential that can be developed that we are exploring very well. On this slide here, we can see and prove the main benefits in recurrence, frequency, loyalty and including customers in our base. The increase in the penetration to 31% represents a growth of 56% compared to the share we had at a Buy Now, Pay Later in 2020. So we continue to intensify this tool and expanding more of its share. In recurrence, we can notice on the graph on the right that 51% of the customers that performed this -- use this payment method with this continue to be loyal. They generate recurrence. They have a new customer credit journey even before the current journey is kept in an interactive manner in our ecosystem. So this adds on another 350,000 new customers per month. So everything we have seen in that McKinsey study, we can see reflected here in our reality. When you take a look at this slide, on the left side, we can see the evolution of our credit in the physical stores and the distribution of customers that are preapproved per region in the last 12 months. We are adding more and more customers that are preapproved into our ecosystem. On the right side, we noticed the major capacity to add new customers coming from our digital credit platform. As an example, you can see the Northeast region. This is the second line, and we have stores in 82 municipalities. And through online credit, we were already able to reach 361 municipalities, where we do not have stores. So here, it's pure adds of new customers and major recurrence. So in total, we reached 1,500 municipalities, that we've never -- where we never had physical presence with trends for improvement in this number in the next quarter. So we are at a question with the production of our digital payment booklet and our Buy Now, Pay Later system. So once again, we're talking about inclusion here. And in the next chart, it's really interesting to take a look at this slide. If we consider the Brazilian market now in the left bar, approximately this number varies a bit, but 10% of Brazil buys online. From these that buy online, 63% buy through credit cards and 37% through debit, Boleto, it's like a barcode bill and PIX. So when we listen to our customers, we identified that 41% of our customers are rejected or have their credit cancelled, or they don't have necessary limit to perform a purchase. 15% consider that credit cards are expensive and are not interested in it. And 44%, who has already worked on this online journey with us, declare that without the digital Buy Now, Pay Later system, and you would not be able to have access to this. So they're just studying the market that demonstrates this level of the population without access to credit represents an addressable market in the next 5 years of 486 billion. But we can take up the size of the market in this level of the population. And the good news for Via is that we know exactly how to interact the population and very few can reach this level on the way we do, that it's almost one of our exclusivities in Brazilian retail. On the next slide, about banQi, our portfolio will be strengthened by the license we're able to receive. Yes, indeed, that will fulfill the gap in access to credit history underexplored by fintech operating in the Brazilian market. On this chart here, we bring in some of the KPIs that banQi has that demonstrate this growing trend in performance. So we're growing very strongly in the amount of downloads. We've already reached 2.6 million accounts opened in banQi. We really scale up the number of transactions so at BRL 820 million in TPV. The banQi transactions are already being very relevant in the transactions for our e-commerce and the transactions of our store. So really in this journey, that's very strong with banQi. And we are going to continue to accelerate a lot from now on with the granting of SCD, and we're going to start providing personal credit, with this full background that the company has, with access and the capacity to grant credit with low risk. So on this slide, we are presenting the TPV of the co-branded cards and Rede Celer, we acquire -- we purchased at the end of April. We have partnerships with 2 private banks and the co-branded card modality, Bradesco at Casas Bahia and Itaú at Ponto. And over 2.5 million customers with cards that generate BRL 1.5 billion in TPV monthly. In Rede Celer network, that was recently acquired. The TPV in the second quarter reached BRL 325 million, and Rede Celer already performed over 5 million transactions. It's already present in over 33,000 POSs and it's already relating to over 255 fintechs. In the earnings call for the third quarter, we will provide details of how Celer has been evolving and how it's really integrated with banQi to have a very powerful journey with our individual investors and also with our Brazilian entrepreneurs and entities and company. So our financial service platform is composed by 3 verticals: products, credit products for access to retail products, so this is a Buy Now, Pay Later with the co-branded card. Digital account on banQi, which really intends to include new customers in the ecosystem and expand the relationship to new credit offers such as personal loans where we've just started. And the part to consumption in the marketplace, it starts off to banQi as well as our entry in the -- with legal entities together with the Celer with offering credit and bank accounts and credit to small micro entrepreneurs. So our platform is really robust. And in the third quarter, we're going to provide a lot of details on this integration between banQi and Rede Celer. Now about another asset that's very important is logistics. So our logistic have been advanced in a very consistent manner. We have been able to deliver in the entire country, and we have light and heavy transportation. This is a very important differential. It's really easy to transport light items in Brazil, but we've already delivered in 24 hours in 2,500 cities. And on the same day, we already delivered to 65 cities. So half of all of our digital sales are already delivered through our store. So we understand that omnichannel is vital to operate quickly and efficiently in Brazil. We're going to demonstrate the benefits of the logistical cost we've been gaining in this quarter. So we were able to deliver 100% of Brazil, as I've already mentioned, and in 2,500 cities in 24 hours. So now as we talk about our journey of having our customer really as the center of our business. We are expanding the offer of services using our own network, which already represents 51% of our deliveries. So it was something the market was curious about, understand what kind of the [ shared ] and each of the network in our business and now we're presenting it here. So we've already implemented the switch, omnichannel products. So customers that buy online, they can perform the exchange journey into our store. Once again, this is a very important benefit here. The sites performing the collection of this item when we have this choice. And I think it's worth it to test these heavy items in the marketplace platform and really have the return to check out how this happened. And normally, you're place into contact with the seller and find the solutions for this return. In our case, there's already pretty much imprinted in our business model. And we upgrade it. So seller can already perform the drop-off at our stores so it's really in advance in our network servicing sellers more and more. Our delivery model is already tested and ready to scale up on and grew our -- smile platform. ASAPLog, we can really start deliveries for partners out of [indiscernible] the collection right at the spot with the delivery. We're ready for this so we have over 300,000 delivery guys in this platform. Our fulfillment starts up now in the fourth quarter. As I've already mentioned, for the seller, and also to the [ open ] and we address an end cycle in our service level, logistics out of the company. So now a bit about the numbers from customers. Customers are always at the center of our strategy in the company. So we continue to advance the strategy and focus. Everyone here at Via really embraced it with the launch of different offers for entertainment and content really to encourage the recurrency and loyalty. So the first results are already going to appear with an increment of 18% in our active customer base to 26 million in the second quarter. The access through the app already represents 50% of the online sales, which is a strong evolution compared to last year. And if we were to add up the Msite, which is also in the mobile journey, we already have already over 75%. While the average revenue per customer in our app, ARPU grew 60%. So we've already started to experiment customers adding on other items into the cart and customers really are adding more and more items to the cart. And that's reflected here in our [ A ]. On the next slide, you can see the initiative for loyalty. Recurrency for customers and to be play and [ compromise ] adding opportunities offer of SKUs to the number of sellers now marketplace. And our Buy Now, Pay Later include some of the factors that really explained a strong increase in the average expenses for customers with on and off as well as mobile channel customers. There is the strong evolution in all of the modalities regards to the previous year. On the right-hand graph, [ that ] our customer base has also been going through major rejuvenation. And with this, we've been able to attract a younger audience. We've had growth of 72% in share of customers between 18 and 24 and 14% among customers that were 25 to 34, which is really in line with our strategy designed here on Via. So after the major success with the launch for the CB Play in April, we were able to just launch Ponto+ for Ponto customers that provide for unlimited access streaming services, including films and series. And up until the end of the year, for all the customers that buy technology products at home for TVs, cell phones, tablets, video games and desktop console. So with the engagement and the content between entertainment and increase in customer base, we've announced in July the hiring of the creative head for games, which is one of the best Free Fire gamers in the world. And so he is with FLUXO and this contributes to our strategy and also help create exclusive content for gamers and customers at Casas Bahia. He was already a leader in this games category, and this will reinforce even more presence in the segment. Games and consoles were the categories that most grew, where we gained market share in the first month of the year. And so this grow -- this announcement of the partnership really grew -- generated a lot of growth and sharing about the social networks. And in the second quarter, we also highlight in the main social media about engagement. And in the end of slide, we were able to reach the highest level of engagement in Facebook. Here, we're not only talking about retailers or online pay, we're talking about all the brands in Brazil, overcoming levels that the network has, for example. We're strong in our strategy to add new customers and increase engagement in these customers. All of the advances of the -- in customer experience, and this has been our focus ever since we started have been appearing in our improved NPS scores with ongoing evolution. So in the same way, our assessment in ranking is that Reclame Aqui has been very positive in the last 6 months. And finally, on my speech here. All of this evolution that's going on this year would not be possible without Via Hub, which has demonstrated major [ presentation ]. There are over 1,300 deliveries done on the second quarter, totally focused on the increase of GMV and test customer satisfaction in 1,300 deliveries rather than 2.5x more deliveries than the average we had last year. And this really gives the confidence to continue with this -- and the delivery of all the strategic plans that we've demonstrated at Investor Day. So now I wanted to quickly pass it on to Padilha, and he will provide some details on those numbers again. And then I'll be back a bit more ahead for our Q&A session as well. Thank you very much.

Good afternoon, everyone, and thank you, Roberto. I will quickly go over some of the highlights of our performance financially. And so Slide 35 presents beside the quarter also the semester compared to the previous period. And the first highlight is the growth in the gross GMV, 51% as Roberto mentioned. And in the semester, 38.6%, which is also a very important highlight. In the net revenue, 49% in the second quarter and 33% in the second semester. The gross margin and EBITDA had a drop compared to last year mainly due to many different elements, especially the consideration on the stores closed in both quarters as well. Last year, there was a benefit, as Roberto mentioned with contracts, labor contract [ fundamentals ] This was quite difficult for us to close at different in different periods and in different locations. And this also brought in importance in the dilution of our expenses. So the gross margin was also representing a small drop in the accounting gross margin. Most of the operation is pretty stable in the quarter, so we ended with [ 30-60 ] and there was a fiscal benefit here last year. And the EBITA margin will drop 12% to BRL 185 million against BRL 565 million in the previous year. And in the semester, BRL 1.167 billion with a drop of about 9% and the net income [ reverse ] this trend. And we go from BRL 65 million last year with the [ credit ] to BRL 132 million with the full credit as well as a [ suspension ] in this question and a growth of 103%. So all of these factors bring in a lot of difficulty to compare the quarters. We believe we have a net margin as well -- better. And in the quarter, we ended with about BRL 312 million this year, a growth of 3x. And in the next slide, we are providing some details on the gross margin, the EBITDA margin and the net margin. In this case, operational. So operational EBITDA margin growing [ 54.5 ]% and in the quarter -- in the semester, BRL 930 million to BRL 1.069 billion and the net income from a loss last year to BRL 45 million in this quarter. And in this semester, operational losses of BRL 163 million with a profit of BRL 109 million in this quarter. To make the comparability a little better and have more of a sort of round analysis on the operational business of the company. In this quarter, we eliminated these [ bench ] effect with the fiscal incentives on sales. And it's important to mention that its characteristic is highly operational. And so the difference is in another co-credit that comes from the sale of products. And so we deduct its effect of the incentive and the results in the quarter we present, especially in the last line, a net income of BRL 132 million with an adjustment of BRL 87 million, it goes to BRL 45 million with a net margin of 1.70% to 0.60%. Let me explain this a little better with the computation of this amount. So now with the explanation here with the main variables. And the gross profit in the quarter compared to the same period and the first main effect here was the closing of the physical stores. So a little bit of penetration and volume in the production of the portfolio, the payment booklet. And we also lose some services and extended warranty in assembly services, which brings in an impact to the quarter of about 2 percentage points. And we had some benefit as well with the improvement of the commercial margin. And so we call it not a fiscal credit. And it's a tax that I paid double, and I didn't have to pay in 2021. And this is totally concentrated in our online commerce. And so this way, we can compensate this gain in the commercial margin. And we have a significant gain of BRL 2.419 billion (sic) [ BRL 2.429 billion ] due to the net revenue growth. So it's important to mention as well the quarter with COVID, with stores closed, as Roberto mentioned, basically resumed in the month of Mother's Day. The normalized margin is close to about 32% if we were to consider these stores open and the payment booklet was a lot. So same analysis here typical to SG&A. If we look to consider the operational expenses in 2020 and the operational expenses in 2021, we had an impact of approximately BRL 180 million because the stores were closed during that period for approximately 40, 45 days, almost 1.50% above in expenses. And to grow GMV online, we've leveraged many different elements in our digital business and the better channel mix, more investments in social media, marketing, reinforcing the post-sale structure, call center and other expenses also with delivery as well as our technology team that was internalized that we had new business opportunities integrated to the business, which represented 1.4% and at 0.30% for banQi. So the contrary here is strong gains in productivity using our potential logistics and also with the pick up from stores and our mini hubs. And plus 1.7% for all the other expenses back office and fixed costs. There are recurring expenses also with the stores open and would be closer to 24.50% and not 25.50%. And finally with the same comparison of last year with the net income, we said that we left from losses of BRL 176 million with a profit of BRL 132 million. EBITDA this year, BRL 20 million, an improvement, and we would have strong gains in depreciation, basically due to the dilution of -- due to the growth in sales because we're about to add on very little asset physically in the past 12 months. Financial expenses had a strong impact as well, and a recovery of about BRL 236 million, 3 points. There is also the capitalization of the company with a follow-on in June last year, obviously, there's -- consider it as full year effect in our accounts. But here, we have very relevant returns and it's important to mention also the -- this result is strongly benefited by the fiscal incentives as well. As I mentioned, it's not a credit that's merely taxable, it's a strong operational characteristic and that's why it's completely related to the sale of products in our 1P. On the next slide, we present our condition financially and our cash flow in the quarter. And here, I want to highlight that we have a low [ consumption ] in cash this quarter. Despite the pandemic, we brought in important improvement in our working capital. As we mentioned many times, we had investment in the last 3 quarters and the inventory also due to the risk with the lack of supply in the period of the second wave. Since last year, we are already under recovery period with the normalization of the working capital as one of those initial effects. And the first quarter represents the full normalization. In this quarter as well, we've presented the beginning of the monetization process for fiscal credit, which was a major promise in the market. The market wanted to see this, and we're presenting this year and also the cash consumption was due to the acceleration of our investments in this quarter of BRL 184 million. So also about the last 12 months and the cash flow. Here you can see a strong cash generation of about EUR 766 million in the last 12 months despite the investments made in working capital and despite the effect of the stores closed due to the pandemic. And here also I want to highlight in the year the beginning of the monetization process and acceleration of the investment by about BRL 627 million. In the Slide 43. We have the CapEx in the semester totaling EUR 366 million and BRL 227 million in technology, BRL 58 million in expansion and we must say that we are accelerating the process for the expansion and improvement of our physical stores and also investments in our infrastructure. And also the last part in our presentation, heading to Q&A with our cash position. We have a solid cash position of BRL 6.7 billion, and gear also with our amortization curve, you can see that it is really balanced and to extend the position of [indiscernible] in the company.

So now we are heading to the Q&A session now. And I believe the first question comes from the analysts from Credit Suisse, Victor.

Roberto mentioned some questions that we had about the margins, the EBITDA margin. And one of the main questions was about the evolution of take rate. The company had a double-digit take rate. This number dropped to 7% in the first quarter, now 5% in the second quarter. So I want to understand why this has dropped and what you guys are imagining this dynamic, I think the market is creating a lot of theories because of the company's stance and also concern with competition. So if you can maybe talk about this, it would help us a lot.

Thank you, Victor. First, about the margin. I believe that I already kind of mentioned the answer but the main impact here from this quarter with the store closing and so if you were to take a look at the margins as for product, there are not major problems. There was an absence of production in the payment booklet and more acceleration also generating a bit more of a margin because we had about 1 month a door. In regards to take rate, we already declared its strategy to have the evolution of the marketplace, providing this opportunity for the sellers to experiment this in our platform. So we're following exactly the track that had been designed. We are not changing this. Also, if we had not had the store closing, we would have had a really interesting quarter in the margins. And people wouldn't be concerned about how you increase the marketplace and the other margin of the company dropped. But that wasn't the effect. It's not that we can't do this one day if we want to but that was not the effect this quarter, in this [ time ]. As I had mentioned, the take rate is not our main target here in the marketplace. Our main target is the revenue we bring in through the payment booklet and through logistical services and the relations that the banQi will have with all of this ecosystem. So we are investing and building in a major marketplace platform and the take rate is one detail in this thing. So in a quarter, normally, where everything is open, the take rate doesn't really mean much. But if you rely only on the take rate out of your problem for sure, but for us it won't be a problem.

[Operator Instructions] And so the next question comes from João.

Taking advantage of this discussion here on the services that you guys are going to be providing to the seller, what you consider from the logistical perspective, especially you mentioned that the fulfillment should be operational in the fourth quarter. I think it will be interesting if you just maybe cover a bit of the scope or the notion of this for [ Via ], and how much you expect to reach and penetration in your seller base when it becomes operational and understand how we can influence your take rate effectively. So second point here also would be about the international partnerships, right, and categories that you guys are adding on. I think it would be interesting to understand how you guys consider this relevant in the partnerships in the future. What kind of category can influence your mix and your assortment up ahead. I think that would also be interesting.

About penetration, we had a quick acceleration here in an increment in the sellers. So we have 70,000 sellers. We have about 50%, the sales numbers has been capped at about 50%, despite the quick acceleration of onboarding that we had and maintained it about 50% of the seller have already used the Via service. It goes from using our chart all the way to using our net logistical network. And now we are already at the phase where it can really perform the drop-off here at any of our stores, and we can perform the delivery. It's important to mention here is that if we were to take a look at the players in the market, the reference player now in the market, it's almost 4 years to reach 20% penetration in performance. So it's not something that we're going to have from night to day. We plan it. We made this a lot -- do this a lot quicker and we'd be demonstrating that we can do things that a lot quicker than the average in the market. So we will have excellent offers for fulfillment to the sellers. And as I already mentioned, it's going to be a different kind of fulfillment. It won't be limited to our own platform. Our proposal is to really be a good operator for the sellers in any marketplace that they're selling on. So I can transition around this among competition and performance delivery. Our proposal here is to become the logistical partner of the seller for any sale they do in any kind of ecosystem. And besides this, we will also start fulfillment to other categories as well that maybe are not in our ecosystem yet.

Now I'm going to invite Bob from Bank of America. Bob might have some problem with this connection. So we're going to continue here as we head off to the next question. Oh, seems he was able to connect. We'll pass it on to Gabriel from Itau.

My question is about the financials in the business. So we've noticed that there's significant growth in the portfolio year-on-year. We know that this is an average with the [ return ] of the stores but also with the online payment booklet as you demonstrated. And so especially in the online, we want to understand the results you've noticed in this front so far and how the default has been behaving in this part of the portfolio. And it would be an interesting lever for growth in this part of the financial business credit. It would be interesting in the sense of size you expect to have in this portfolio and the practical impact of banQi's approval can make -- can be for this kind of expectation.

Well, just about the credit granting journey. It has been scaling up and we've been measuring this phase. And we're really happy with our phasing as we grow, which is why we already expected by growing even more. This is very similar to the journey we have in the physical part. So the levels of default that you know in this difficult journey in the online is very similar. There are even cases that were smaller than the physical journey. And the online journey, we have a customer that is choosing to perform this a few times less, and we also offer with levels that are more competitive and to generate less default. So in worst case scenario, well, we're already noticing some [indiscernible] harvest on what we're seeing in the store.

Yes, so the practical impact shifting is becoming an SCD.

Yes. The practical impact of this represents starting off credit granting for the sellers, which is disconnected from the sales of product. This credit will be in the customer wallet virtually and they'll consume wherever they feel they should and how they consider to be best. And so we started a little before this. We were using another player before this while we couldn't. And now with SCD, we are doing everything internally. So the first measurement are really in initial phase, and they're really exciting. So we're really happy. And with this default rate [indiscernible] and as with the payment book, where we launched this gains volume and confidence that we really have the adequate [ motors ] going. We also have in this concession and scale up on this. So we know that we will probably have the biggest trend in credit granting for [ Class B ] because this know-how that we have in here with Casas Bahia, especially all of this understanding of their consumption profile and [indiscernible] we are applying to banQi. So we believe we'll have the biggest credit granting cost for fintech, right? So next, we will enter this credit card journey. Then you have their own credit card that starts from next year. Personal loans are already a reality. We're already measuring the evolution and portfolio and adding on scalability as we feel this kind of confidence.

Well, our next question comes from Joseph Giordano from JPMorgan.