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

Good afternoon, everyone. We are starting our earnings call for the third quarter of Via. Today, we have Roberto, Sergio Leme, [indiscernible], Helisson, Andre Calabro. Our format with Q&A directly and to raise your hand, please use this on Zoom.

Our first question is from Luiz Guanais from BTG.

I have two questions here on our side, Roberto. The first one is about the partnership you've announced yesterday was a renewal with Bradesco. So I would like to know if you could talk about the main figures, with the revenue in this new model compared to the previous model that you had? And the second question related to the operation. If you could also talk about how much you still look at when it comes to 3 key operation adjustments, which has been reducing and the evolution and the take rate that we could expect.

First I'll pass on the floor to Calabro, and then I'll come back to complement his answer.

Thank you for that question. Before we begin and get into your question. I'm going to give you a little context of this partnership because I think this will help clarify the questions that may arise from the other colleagues. Ever since the beginning of its management, we focused on strengthening our main assets among them, the Buy Now Pay Later, the [ KJRU ] and our partnerships with the bank because we know these 2 payment methods are important levers for sales and they make sales feasible, bring in loyalty new customers, recurring customers and the Buy Now Pay Later system increments more financial results of the company. And with the cards also reduction in the costs of the transaction fees. So another important factor is also that we demonstrate every quarter that we have significant growth in the Buy Now Pay Later portfolio and also with our other customers using cards and an important share in the sales in stores and online. When it comes to the deal, considering the growing performance we've demonstrated, we were able to overcome the targets established, and we're able to anticipate by 7 years of discussion of new terms for the partnership. Once again, without harming the performance of the Buy Now Pay Later system. So with this, our new conditions and the extension of this partnership for the 15 years, and the main thing to answer your question is that we'll have new accounts, the new customers using are including additional customers. There are different levels of compensation considering the index for activations [Technical Difficulty] active accounts. And an important to highlight, which is the fee per revenue on offer -- so this -- whenever there's spend income by your outcome will also have a team and different levels of fees for the spend. And another point that I would also add on is the peak of the other services. When it comes to the sale of card insurance services and other percentages that have been defined for each of these points I mentioned. So about the past and what we had actually looked at previous contracts, we had always related this to new accounts only. So we had some important additions. And so then once again, this makes a partnership will be successful. So BRL 350 million for counter and BRL 1.4 billion commission anticipation, another BRL 1.5 billion with 4 [ trashes ] annually according to the tiers. So I think that give you an overview, but I'll be available to have another question.

And to contribute to this answer, I think it really demonstrates this renewal - demonstrates the connection that the Casas Bahia brand has with the same class and the capacity the company has to develop financial service model to this level of population. As Calabro mentioned, we've anticipated and reduced the lot more cards ever since we arrived. We were able to anticipate a contract that was going to expire in the future by 7 years, which gave us the capacity to accelerate at the end. I think what's important we really on saying that VM has excellent assets and that we are working on everything June 2019 to unleash the value of the asset. So the card is one of these assets. So we have many other assets in Via -- we had extremely strong and winning assets. And so in this asset, we just had a BRL 3 billion deal, which involves the anticipation of the revenue, but also the expected revenue in this contract is a lot bigger than this amount. So then in regards to question 2, I'll pass the call to Helisson, and then I'll come back for my final remarks.

Well, I wanted to maybe this question into One thing is the GMP and one thing is it take rate, the GMV is something that had a drop of about 40%. But this was where we really changed ever since the beginning of the year, the role of this marketplace was disclosed in other marketplace has the role of helping to generate new customers with low-cost customer acquisition costs. It's an activation of our user base and recurring customers -- this is really the fact that we want to be more present in the day-to-day lives of our customers, the marketing approach actually. So this is how we are now not only talking about GMV but in orders, right? And when we look at orders, compared to we grew 54% and the share of orders and GMV also grew substantially. I think GMV in the future tends to recover. And in the previous call, actually mentioned there will be like the take curve, we're still at this take curve at the bottom part of the [indiscernible] tends to improve. So the take rate in exchange, we already consider that in double digits, it would already be sustainable, and that would already make the market a minimal without considering, of course, all the things have been having in other ways of generating margins, which will be the Buy Now Pay Later. We have launched from the beginning of the year, the 3 key items and also the logic that also help us to have a better customer [indiscernible] but also when it comes to margins and revenue that is sizeable, of course, like even so we become very competitive with the take rate, just percentage points below the leader, which gives us flexibility in this journey. Roberto?

Well just to counter the take curve effect, it's important to mention that in the fourth quarter, we've already been doing a lot better when it comes to GMV performance and we are practically reaching is very close to a recovery compared to the previous year. So it is extremely strategic overseeing. We made a decision a year back and communicated its market were not in the effect of the average sales of the figure and average ticket. So -- now that the platform is absolutely stable. We've been accelerating the growth of the order. And we've been really growing this ratio and recurring these consumers in this platform.

Now we're going to talk about - as you all know, we're going to invite [indiscernible].

And to point here that I might like to explore. One is one about [indiscernible] when we perform -- it seem you've gained a shares in core. So if I'm correct, what you asked with the market share gains there I would like to start with one fee. And then the second point, Calabro that really covet attention between the stability and the sequential drop in a nonpayment in the access [indiscernible] to hear this from you guys, it's very different in the rest of the second. I want to know what's behind this dynamic.

About 1P, yes, it is true. We gained market share in the renewal of the company. And here, I can say that is not many we connected to greater commercial asset. We've been preserving this profitability, and this is really connected to the capacity of being an omnichannel player because this is one of the biggest advantages. We're not rooting for a specific channel like digital or physical were all channels. We even have the assisted online channel through our online sales people. So the [indiscernible] store consumers really migrated a lot from online to the physical stores in this past quarter. And now we have a major differential on the physical store business. And we're really gaining a lot of market share from the poor. We've also gained market share in 1P, from our mines. And this is all very connect with the omnichannel approach the company has and the capacity in train to really make these items from the turnover in 1P. So now we're taking all of this capacity to 3P with everything might ask for [indiscernible] it's a slogan, so it's going to be a scaled up process. We're not going to throw any money to do this, but we should see that more and more will be diving into other categories with a lot of strength. But of course, without losing the predominance that we have, in 1P. So we are leaders in most of the categories and we are in a World Cup year. We are also absolutely prepared for the World Cup. We started some negotiations last year actually for television. We are dominant in the market. We're a leader with over 8 points in market share gains with the second player. So super well prepared and have this fourth quarter and also important to mention in the fourth quarter, starting off a lot better than the third quarter. We are experimenting double-digit growth in the fourth quarter and the 1P business online and physical. And so we're super optimistic with the fourth quarter to gain even more market share. If I were to look only at the physical stores, we probably want about 3 percentage points in market share just in physical -- now moving on to Calabro. I'm just going to ask you about this point. Well, part of what we're looking at when it comes to the profile of bad debt or nonpayment and our performance overall is very much connected to this major experience because the company has to decline credit to Class C in Brazil. Those over 60 years of experience, 90 million customers that are paying or algorithms are looking strong, either base and the capacity in these movements in-turns that is something Calabro will be able to discuss further.

First, excellent news, which is visibility in our indicators that [indiscernible] asked about. So especially considering the market indicators, but I wanted to mention that another important indicator is the provision for bad debt, PDD and we so looking at over 90, we also opened the portfolio a bit lower or shorter delays in the new batches. So on that and indicated it's stable, that means that the health of our portfolio is doing well. So when it comes to sharing a bit of what Roberto mentioned also about why we had these indicators that is sustainable. I think a lot is related to the history we had a base and algorithms. But I want to mention 2 other points, which are the offerings and conditions we offer to our customers. So when we have stability and nonpayment rates, and this, of course, involves the high conversion, this demonstrates we have an adjustment, not only in the definition of the risk for customers, but also that the offering, the conditions we provide are really adequate to what they're capable of paying and what they can pay for. So another thing Roberto also mentioned, I don't know if you noticed, but the share of the Buy Now Pay Later from the second to the third quarter dropped a bit in the stores. So when we look at all of these indicators internally and also market indicators, we already anticipate some possible adjustments so we can control this more and not harm our profitability itself. In physical stores, our share went from 29% to 26.6%. So we anticipated this in the second quarter already foreseeing a possible deterioration in the third quarter. And finally, last but not least, I think that when I -- on the last point, you mentioned that I'd like to discuss, we saw a bit of our indicators at above 180 days, which is where you have the definition of this loss deteriorated a bit. And why is that? Well, because we sell this is a market that in these ranges with delays is at a little higher, we felt more difficulty from the customers to be able to negotiate. So even though we felt a bit of the difficulty we anticipated this and performed all the changes in the second quarter, beforehand. And the last detail is that we see a lot of default and nonpayment really focused on credit cards. -- really focused on these -- here, we're talking about a product that has installments that are predefined and customers already consider if they fit in their pocket. So I think this also helps keep our default really at a stable level.

Now we have a question from [ Peter Pine ] from [indiscernible].

I do have 2 questions. Follow-up of this last question, with the performance of fourth quarter. If you could give us a vision on what the dynamics are for margins and also with the dynamic for the cash flow in the last quarter, we had an important cash position and how well we do see with this and how these 2 elements should behave in the fourth quarter.

About sales in the fourth quarter, as we mentioned, it's been moving along well. We are very satisfied. When it comes to profitability, we have not been making more efforts than what we intended to have when we performed 5 years ago, everything is pretty well balanced out. We've also launched -- [indiscernible] event to an event which is really the World Cup and -- we had this year like credit and [indiscernible]. We've already launched our campaign for the World Cup and the first friendly game that were about 40 days, which is good pick. So it really became a reason for changing messages between families can make more money here from Casas Bahia, many influencers just say, hey Casas Bahia is not going to be able to pay for this because it's so many things. So we really hope Brazil can make a lot of goals and that we can pay a lot of picks. So we where is the margin, the operation is very healthy. But of course, we have the fourth quarter coming along per level of a quarter like the quarter with Black Friday. We're pretty well balanced when it comes to profitability when it comes to flow, I think it's the quarter where we most generate cash in our business model because most of the payments that take place and that we purchased now occur in the first quarter. And so this is a quarter where we really increased the company's cash position. [indiscernible] do you want to contribute?

And I think that when we look at our outflow from the third quarter, 92% of the consumption was in the reversal of the working capital and the weaker sales that really slowed down what we had at production during the fourth quarter. This is already inverted and getting back to normal. But I wanted to highlight 2 other points. The cash exit of labor claims were at the bottom part of this guidance. So we're foreseeing that in the fourth quarter that we should estimate something very similar to this quarter. And in exchange, the monetization of credit has been consistent between BRL 400 million and BRL 500 million per quarter, and we're also expecting the fourth quarter with strong retail so that we can reach this high part of the guidance. So these 2 elements are identifying leftovers as position and as Roberto -- quarter, this is a completely -- this is one quarter the weak quarter in the overall market decayed in the third quarter, but now we're reaching a bit of normality in October and the expectation for the Black Friday, World Cup, Christmas, New year sales really brings in -- in this way, we can get back to normality, which is the operational cash generation.

Thank you,[ Peter ]. Our next question is from [ Danny Agar ] from XP.

I have - the first one is a follow-up maybe with the stake curve, first addressing 3P and 1P. Just so I can understand how we should expect this. And then you mentioned that it's almost reaching the breakeven -- and I wanted to understand why we've been panning out from us from the other side. We still haven't noticed such an [indiscernible]. So even if that campaign you mentioned could maybe leased to the difference maybe explain the we recall the function of growth in 3P, you've to release. And I wanted to understand if it's more about to integrate or into services especially the open logistics offering -- and if you case, I'd like to understand how the profile resellers that are already operating in a platform, reseller from third party platform they continue to operate in this logistic -- you've also been able to attract balance to our platform through these sales in the services that's already happening. So I think these are my questions.

I'm going to start off here with this point about recovering the marketplace, [indiscernible], JMP we've already started to notice a bit of recovery and the comparable base. We were already looking at less core items we sold. We had already started to notice a bit of the long tail and last items in the marketplace, so a stronger quarter. We're already seeing a recovery in a number that's a lot better than what we presented in the third quarter in the numbers of the call here. So when it comes to 1P, it's not that we're optimistic. We're just being realistic. This is our reality. So we our mentioned, for example, we saw our market share gains in the third quarter. We continue to gain this first quarter. And one of the strong points in the company. As I mentioned, we don't have the channel adjustments. We're not cheering for one channel like all the online or all offline. We're working with customers wherever and however they want to be service, the market is moving more towards physical, more towards online or hybrid. We're happy with any model, and we're prepared to work with any model. So I'd say that this is poof of [indiscernible] we have and the preparation we have especially the campaigns and preparation stock on. So I wanted to take advantage of opportunity in saying that all of the market share gains, preserving the profitability, it's all happening regardless of the fact that we do maybe BRL 1.5 billion in our stock from 1 year to another. So as you've been saying throughout the last quarter, the increased stock when it was important and we understood we wouldn't need anymore because the is already product availability, and we started to drop and talk to mid to the quality of our stock. It really didn't impact anything when it comes to profitability. So we're closing the quarter with BRL 1.5 billion less in stock. But even though we've been growing our sales strongly. So, I'd say that this is another asset that the company has not operated and before pass on to Helisson. I think it's important to mention that we were omnichannel with everything there. Except for small detail, all of our structure commercially. So we made this decision at the end of the second quarter, and that's how we decided to feed some omnichannel as our commercial team. So today, how are we setting this up. We're setting it up the following way. [indiscernible] just describe that considers TV within this we have the commercial team, the sales team. We have the 1P sales team, the 3P sales team, physical, online sales and the marketing team, the performance teams, the UX, we have this complete squad. When, of course, we are all focused on the best consumer expense result to the channels with 1P, 3P, physical or online. All of these get prepared is offering -- they prepare this conversation with the consumer. And of course, this could be online, physical or 1P, 3P. So we are looking at this from a commercial perspective. And now we consider 1P, and 3P all one. We value the consumer experience profitability of this business and the frequency and returns that is ensuring our platform. So I'm going to pass the call to Helisson, he can answer the other questions.

About the take rate. We are definitely satisfied with evolution almost doubled compared to last year, even with this drop in GMV and supports mentioned that, in essence, this degree is a basic commission from the marketplace already has a take rate also for the Buy Now Pay Later and logistics -- it is quite small compared to all the rest, its growing. And then, of course, we have a major potential -- good growth in the next quarter, we're very confident and the trend is that will have an improvement. Roberto has already given you referenced in the month of October. And we're also -- when we come we reveal a lot stronger as well than our earnings results for the quarter. And the question was about the profile Keller. And I wanted to declare that whatever we say here about fulfillment, it's really about the sellers in our platform, and these are on platform sellers that sell on our marketing. The sellers are chosen so that we have a matrix for decision-making based on demand, based on our capacity for management in the DCs is already support fulfillment and also our capacity for the logistical network. Over time, we'll improve it and adding more sellers with us some profile products to have the bigger scope -- there's also another business, which is logistics as a service, which is an open ocean option. And we're going to be able to discuss that this is complementary to the numbers you referred to before.

Now I would like to invite [ Nico ] from JPMorgan.

I have 2 questions. The first one is about financial services. So how have we been looking at appetite for next year when it comes to services be size or maybe more initiatives, more new initiatives like personal loans, as a service and things like that. And my second question is also about the store. And I would like to know if come or information on expenses in store contains the macro environment, so pretty weak for these core strategies.

Well when it comes to financial services, we just ended the year of total loans through banking. We're going to continue filling up on this after year with the portfolio performing well and numbers that we can demonstrate results for, of course, we're going to search for better paths and ways to fund this [indiscernible] note. So far, we've been doing this with via we're going to find better ways to fund this. But of course, it's something that we're going to follow and keep growing with all of the air that we have when it comes to credit issues. So it's a challenging moment. We've been very careful about this. We've had excellent performance in the Buy Now Pay Later and in personal loans. And as Calabro, presented in the presentation, we just have our credit as service ready, it just became ready, and now we're already testing it and updating you with a partner. And it's something we're going to scale up on year. So just as we started off personal loans, we're also going to scale up [indiscernible]so that we can have same growth. Calabro you want to add on to anything I said?

So over time we really spoke about our Buy Now Pay Later line. And I think the solution with credit as a service. It's all about taking our credit intelligence beyond our counters. We really believe in the customer acquisition, helping us with this a lot more through bank with a negative customer condition cost and also new finance revenue for Bank. So I wanted to highlight what's the advantage of our planners towards a solution. So when I compare with the transaction that happens in the credit card, our partners will have a charge back. So they will have a risk in the separation, and they also don't have transactional costs -- so it is a formula that's pretty clean for our customers, and it's also going to help with the conversion of the sales of the partner. So for those customers who want to buy in installments and that maybe for some reason, do not have available limits or credit cards. So we believe in this solution alone, we are expanding with the solutions and to be able to capture customers beyond Via's counter. And as Roberto mentioned, we are going to be carefully working on this process and scaling up on the this is a solution that we're going to learn a lot with the journey of our partners. So it's going to be a little different than the journey we normally have, and it will generate a lot of lessons learned for us. So we're really happy -- with the launch of this solution still at the pilot. But over time, we believe we'll be bringing more news. Thank you for the questions.

I think that as I mentioned in the beginning, this is one more powerful asset we have in our hands. So we have a big connection with consumers when it comes to financial services and we're certainly going to be able to leverage this and potentialize it as much as we can during the over time. So about the second question, with the performance of the stores. When it comes to just [indiscernible], we've already worked on a strong program to renegotiate then -- this is a program that's been very successful considering greater complexity that was generated in sales in the past few periods of time. Landlords are very sensitive, and we've had a lot of success in most of these associations. We keep on our assessment constantly the store performance -- and we've prepared that we we've opened stores and also closed stores during the year cost program. We have many different revenues for all of the stores in the nonperforming level. If none of these remedies work, then we disclose the store, no dot and so this program is to active when we do the in a recurring manner. And it's important to highlight also the productivity we've been gaining in the stores. So because the reduction of the expenses at the store level, if you noticed on Page 5 of our presentation, the improvement in productivity per sales system that we had at 1P was extremely favorable. [indiscernible] 2019 where there was no pandemic effect and all of the performance of extreme focus or because Via was not very online at that moment. Even with this comparison, we had a growth of 19% performance per sales rep and when it comes to revenue and over 30% of performance improvements when it comes to [indiscernible]. So all of this omnichannel approach, you added a tells that, with [ MR1 ] and handling all of our financial services as well with all of the improvements we've done at the store level. We really are convinced that the variables in hand, we've been really doing and we'll continue to do this. So we'll have some opportunities and we're going to continue to capture numbers in as well as all investments in technology and make company even effective. As these improvements also perform better -- so it's important to mention also that everything we're doing in the level of service gains, we did not, in any way, accept to worse in the level of services of the U.S. now reach 77% of NPS and that our best it so far in physical stores. The other channels are also moving along very well when it comes to NPS and along we see the average in the market questioning, if we exclude liquidity, which coming at very [indiscernible] because we are really the only one to have this Buy Now Pay Later product. When we look at the other line, the comparison is pretty good, we're are doing well, which does not mean a comfortable situation. We're just always searching for more and more and more productivity in all of the Via assets, of course.

Now I would like to hire Ruben Couto from Santander.

Roberto just get part of the comments on the efforts that management has made to maximize assets the company has and all of these relative example with [indiscernible] service and security. So I think that this is finally becoming a reality. And what can you imagine when it comes to the margin for the company in like 2 or 3 years as these new initiatives gain more importance? So can we imagine a margin level that's even above history, what the company has already reached in the past. Could you talk about these perspectives a bit?

First of all, we compare with development using the level of margins that the company has already -- have already been pretty high compared to the market average and balance out over time. We do not in any way we see would grow, but we didn't want to give up on the margins to be able to grow. We've been keeping up this position. So I'm not going to give you a guidance now. But what I can say in a very generic way is that considering our performance really accelerate these assets more and more, but we are doing today and so my logistics for our sellers and our are sellers delivering to the market business in third parties or just logistical services being provided, as you mentioned some examples that they're working on us. That's pretty profitable for Via. So there's no subsidies there for sellers to be able to do this. And when this scales up, it's quite natural to understand how we'll capture more profitability in business when we look at personal loans, for example, considering that we've been experimenting a pretty healthy level of people. And so this proved be very profitable as we fit in and how to fund it and scale it up. It's going to add even more profitability to the company. So the same is applicable as a service. We should be adding more partners over the next quarters. This is going to grow the product in a very common manner, we believe we're comfortable to have market growth, everything regarding our credit engine and other services as well from other retailers as well, capturing more customers to have this and customers cost. So it's natural to imagine that generating margin for all of these other aspects over time will lead to an increment in the margins of the company.

Thank you, everyone, for your participation. I want to invite Irma.

In terms of the topic with the physical stores as you mentioned, so you're more integrated and you up -- if you could maybe just tell us what you're looking at in this environment. Of course, we risk increase in the interest, which are impacting the smaller companies more. And I wanted to understand if interest in markets is gain in 300 basis points or maybe in specific regions or where you gained more market. Could you -- if you see that something is going to continue or not? And also, if you could talk about the expansion plan for physical stores next year.

Well, there's not like a specific region where we're winning. So we grew 1.7% in Brazil. So this is bet around all over Brazil, 7.6% in total now. And then here, you have the opening that we had over time. These are 48 stores have been opened so far 75% in new locations. So today, we have a open-up a store Manaus. It's our seventh store in the Manaus. It's been an excellent market for us. Once again, whenever we open up a new store, we have thousands of consumers that have a very low customer position. So the store really adds low customer commission reviewed the cost of services because we start having the store as a role of the hub. It becomes another important point for our financial service business every same company brands and agency and of course, more online sales at several [indiscernible] we added after the storm. So we're really comfortable with the performance we had at the store and as always our differential in the company. We've always handled business and as we arrived, and we've been addressing it very well and growing it. And I think now we're going to see in the backside with concentration in online and also at physical stores traditionally, when we have this major compensation we have a very quick [indiscernible] consumers -- so we really handle very well, when it comes to competition, there's nothing very different from what normally happens is a physical store. So the environment is very competitive. And with all of this, we've been able to handle this competitive age and increase their potability and really provide growth in market share. So I'd say that there is no nothing very different when it comes to competitive scenario, of course regional players that are smaller suffer more because of all of the economic situation and some momentum takes a little bit more pressure on the margins and competitiveness because of some other regional payer. I think we would declare here the major modification -- when it comes to opening up the stores, we are not providing guidance from that area. But yes, we will continue to expand maybe at a pace that's a little less accelerated until we are able to have absolute clarity of what this economic scenario will be. But we're going to continue to expand and occupy markets where we are still not present.

Now I want to invite Andrew. And Andrew had a question in English, and we'll be answering as well.

I'd like to follow up on the Open Sea Logistics solution. What are the remaining barriers to ramping this offering up further? And can you give some more on the time line for when logistics services might be needle moving for your overall results?

I'll pass on to Sergio. He is totally connected to logistics, of course.

We're really happy with the performance of our open logistics and also the performance in growth of all of the performance services we launched in the beginning of this year, which once again reinforced and the support to sellers on our platform and in other platforms. So we declared in materially disclosed growth of about BRL 700 million in expenses in the switch and gear, is to remind you all, involves all of the logistical services and the performance we provide to the sellers, and we were able to grow over 500% revenue when it comes to the question of logistics which was the first topic of your question. So here, we're really positively surprised with this addressable market -- it's really multi- [indiscernible] billions Reals naturally. So really focused on these practices, and we bring this scale and this know how in the history of heavy duty products that we've been able to expand it now to the lighter products this growth that we've gained here of 500% in revenue and over 270% in open ocean deliveries. And above all, what most excites me here is the diversification of these categories always notice. So we've been contacted with an intent for many different customers in various sectors. So there's not like a single mono category bias. And that, of course, reinforces are the dispersion of these categories, which gives us volume and that being profitable in the way price service profitable, we have a benefit that is not in the exact profitability of the P&L on this operation, which is the dilution of the cost of our operation of the traditional 1P. So -- once again, we have the possibility to keep another 2 or 3 years of growth, it's really accelerated 3 digits and open ocean processes with diversification of categories considering that we will still have a huge Ocean heavy-duty products. So I just wanted to make you clear also that maybe we'll take one in the conversation that we're just talking about light products. Now we are talking about light products, to be honest with the moment. But we do still have this frontier with heavy-duty items where we are pretty big as well. We have a lot of scale and a lot of knowledge. So when it comes to getting back to the [indiscernible] and fulfillment services, at it is already mentioned that we had an evolution gradually in the [indiscernible] be able to handle this operation for fulfillment and this requires on we have this in many different DCs we can advance with productivity that's at a really excellent level. We've also observed reputed operability. We have an improvement in our subtraction of our partners and sellers with the service. And of course, the convenience and cost of operating and visibility of this order to be able to service our customers. This is a capture very much related to the assets that Roberto mentioned, which really excites us a lot because it's growing at major profitable rates. It's also diluting our cost and regarding operational efficiency. So within the logistical equation, we also there was a year with inflationary pressure that were significant in general services, but especially when it comes to fuel and diesel, we've had the capacity to operate with more efficiency in unit cost in realized in nominal real. So it was a pleasant surprise it's embedded in our cost of services and our margins.

Roberto, this is our last question. So I just want to thank everyone here for their participation. And then pass the floor back on to you for your final remarks.

So I want to thank you all, and I wanted to say that we are super dedicated to perform the transformation of all of our active systems and gain more and more productivity and it's taking accelerated development of our assets. Once again, I want to highlight that we once again performed a major operation with card asset. And we have many other power classes in our hands. We're developing them in a very accelerated pace. So of course, with customers at the focus of all of this, we really look to grow in our NPS and how we relay more and more to this in a very precise manner with the consumers. So we're going to continue to develop this strongly in the next quarter with our financial solutions, our logistics and all of our channels and strengthening our relationship with customers more and more. So about the macro environment. In Brazil, for example, we -- we're always very optimistic. We are very careful of this year, we prepare the company for more complex movements and all of the variables that we consider in our hands, we've been taking care of so that we can make them have the most efficient cost possible. And we will take care of these variables that are not in our hands yet. The company is absolutely prepared to handle more complex year. And we are also very quickly elevating the sales if it seems to be a year with greater growth as we are working on now in the third quarter, which was down a little slower when it comes to sales. But the first quarter, we accelerated a lot. And we have the capacity and its team at experience here at Via, with major capacity to handle different scenarios in a very quick manner to be able to transform them and curb and handle these different scenarios. So once again, I want to invite you all to -- I want to thank you all for accepting our invitation to participate in this call. Thank you all, and have a great day.