Sendas Distribuidora S.A. (ASAIY) Earnings Call Transcript & Summary

[Operator Instructions] We would also like to know that this earnings call is being recorded. And it's going to be provided on the company's website, ri.assai.com.br, where you can already signed the earnings release. [Operator Instructions] And as you announced a request to activate your -- and so then you should activate yout mic, to submit questions. And we'd like to like to know that all questions should be submitted at once. Information contained in this presentation and possible statements that could be made during the earnings call. Related to business perspectives, projections and operational targets and financial targets of Assaí represent assumptions and beliefs of the company. Draws information that's currently available. And so future statements are not a guarantee of performance and they involve risks, uncertainties and assumptions as they relate to future events and rely on circumstances that could or not occur. Investors must comprehend that economic conditions generally and market conditions and other factors can also affect the future performance, at Assaí, and lead to results that differ materially from those deciding future statements. Now we're going to pass on the word to Gabrielle Helu the Investor Relations Director.

Good morning, everyone. Thank you for participating in our earnings call for the third quarter. I'm going to present our executive team today with us today, Belmiro de Gomes is our CEO. Aymar Giglio is our CFO; and Anderson Castilho, the Operations VP, [indiscernible] is logistics, SPP and some Sandra Vicari is our people and to sustain a new manager. I'm going to pass to Belmiro for his initial comments and presentation.

And so thank you, Gabrielle. Thank you, directors for keeping up with us. Good morning, everyone. We're going to talk about our numbers in the third quarter. This is a very challenging quarter. And on the first page here, the presentation -- and from a very positive perspective of the company's firm and its trajectory for deleveraging even in this very restricted environment. We're going to talk about the step ahead. But ever since the beginning, the company has been going through deleveraging and reaching a level of debt is the lowest when it comes to debt-to-EBITDA ratio, what we've been registering since 2021. And the company has been very strong with this in line with an important margin advance and especially in the third quarter due to major rigid control in the levels of expense and in this and so -- and during 2025, we had a result when it comes to expenses. In the third quarter. We brought in, as you can see, the reliefs in the presentation the vision of sales in the quarter. Well, that because October was better now. This is a fair vision because it brings in the effects of our campaign. And last year, we brought in this strong campaign, which was the anniversary of 50 years, as I say. And this year, it was in the third quarter. And this year, we were able to perform the displacement into the month of October, which is our anniversary month, and that was positive because -- that was very -- and we also bring in this relief separating both universes. And so we're exposed to all of the social [indiscernible] AB to cost E and we're exposed to B2B as well, which is small businesses that supply with us. And so that represents about 40%, 45% of the sales. And in some Cash & Carry's, it's almost 50%, that is 20%. What we saw in this quarter -- maybe one of the biggest differences in performance between sectors and same stores, which meet high from sectors that also serve is low income. So what we saw is in our own customer flow, we have this complete stability in regards to last year. with a minimum variation. And so trade down [indiscernible] equivalent to what was going on in the first quarter and second quarter without the operation. And so we look at the consumer as a whole, but then we separate this consumer for social level, what we see is we have cross AMB gain volume and CDE with a retraction in volumes. And in this quarter, Brazil reached the highest level of interest in the last year and in our vision. And so that led to a level of debt for families about [ BRL 80 million ] CPS and about [ BRL 8 million ] and that reached an all-time high, and that reached an interest rate of 15% of the higher so favorable on a channel, the supply low income. And these channels also supply with us. So when we look at the B2B public, it normally has a bigger retraction in volumes, the last Nielsen research FP3 in performance when it comes to volumes. That's very important between different retail formats, service cost which AB that had an increase of where actually the volumes of retail formats that are normally the many markets, Merck grocery stores and independent players. Really quite strongly at the cash equivalence we had a setback in volume of third quarter, [ 8.3% ] had its back up 12% in third quarter, and that's also because of methanol, which should impact a bit more in Q3 and and food service had a drop of about 6%. So basically, we're at a level if I talk about high interest item, just going to be one more person. But in practical terms, what's the understanding we have, while we have 7% of the position was high with fixed income and BRL 8 trillion applied to fixed income. So we have 83% with the service -- with the debt risk really compromised at about BRL 0.5 trillion. So the actual interest rate causes a transfer of income, and you can see clearly that the sectors or formats in the business with AB track gaining a lot of volume and CDEs losing capacity -- and so you have the scenario where you have a job for employment and lower income. So you have this increase in income reaching city population, but a purchase power that's at all times lower and lower. That demonstrates our B2C public that much of an impact, but in B2B, there's a significant impact. So when we look at any number, even Cash & Carry overall, we'll register per pharmacy used -- and that's the level of performance that we make, right? So that -- We can in -- and so that considers the better performance of food servicing and low income. So -- we noticed that this increase in the credit comes from -- mainly because of the dynapalator possibility. And so in some cases, that was even higher and what we can see is higher exposure to risk with a lot of consumers and employees also with this payment. So despite this followed the company's position, we saw that there's no elasticity and that's where we reflect a lot of this volume and we once is visible with EBITDA, it was up [ 0.2% ], and that demonstrates the level of resilience. So if you consider same-store at the levels there are you could expect this and this level of the drop in volumes is not insufficient to impact the objective. So net income is being impacted by this debt service as the third quarter is the quarter that reflects in totality, it's a leak rate at 15%. And this percentage of interest, almost 450 bps in regard to the third quarter of 2024. And of course, with this, it's still high. But despite the company's leverage, of course, if interest is slower, we would deleverage quicker, but following this journey, as we had disclosed, and we saw that the numbers of retail in the third quarter generated a lot of concerns we wanted to provide this vision that the company really has been keeping up with the deleveraging pace. You can advance the next page, please. So gross profit has an improvement due to store maturity, especially when it comes to services, they really contributed a lot in improving the gross profit. And when it reduces the purchase mix in B2B with lower margins, you also generated a positive effect in the gross margin Expenses are the biggest point on the -- and so we consider the self-checkout and that really helped us when it comes to productivity with a high [indiscernible] labor, so expenses, if we take a look at the volume of sales, this elevation goes up more than sales are below inflation and the highlight here in our view is the EBITDA a goes from a 5.5% to 5.7% in the post-IFRS view, we reached 7.6% EBITDA margin. And so that's what I wanted to say. I'll pass this on to Aymar into the next slide, you can talk about debt in cash the 4 years.

Good morning, everyone. I'm going to add on to the explanation and what Belmiro mentioning, we have some into such as cash generation and leverage and I think that this page shows how Assaí is really resistant even in a way a more difficult period. So even with this evolution in the third quarter. Now what we would like it to be. We were still able to reduce the net sales year-over-year by BRL 500 million. This is not significant. It's also starting off from an operational cash addition BRL 4.2 billion. This is reasonably greater than the second quarter and if you pay a CapEx of BRL 1.1 billion of month, it's going to have a free cash generation of BRL 13.1 billion. And you gave the interest of the debt [ 2.2 ],and you improve the final cash position by BRL 900 million. When we talk about the BRL 500 million a reduction of the net debt. It's because we're renting varies in the receivables and then we reached the BRL 500 million, but before the receivables, the variation is BRL 900 million. almost BRL 1 billion in generation in 12 months but asset services. Then when we see another view on this issue. We can undersea actual gross debt was also reduced by BRL 500 million. So we added all of the interest during 12 months. So we create all of the debt service, and it's still on sola growth, it was lower by BRL 500 million. So it wasn't because of a cash increase because it was very similar to what it was in the previous year, but the gross debt also dropped -- and I think this is another indicator that it's important, not only the network dropping, but also the grade on the next chart. I would show you our maturities chart here, and then I'll talk about the gross debt as well, a bit more. On the right side, you can see it's very clear that the leverage continues on a trend that is very strong. If we imagine the level of interest rate in the last 2 quarters really changed from a year-over-year comparison. And so in the third quarter, the actual CDI was almost 4% greater than the effective CDI of the same quarter last year. And even so you have the deleveraging trajectory that continues to reduce half an EBITDA as -- and this -- we keep up the guidance, it's about 260 for the next quarter. If we head to the next slide, we have observations on par results. And these always caused a negative impact, but very significant in the net income due to the debt size. But -- it's still a financial result at roof 22% quarter-over-quarter compared to station of 40%. And so of course, see if you have the sales impact at 3.2% against 2.6% a year ago, it could really in a very worsen scenario. If we hadn't per progress in the debt situation and cash management, then that could be grading if it was just following the interest variation year-over-year. And so in the net income, we had BRL 195 million in the quarter against BRL 198 million, and that reflected the weight of the financial results and EBITDA credit and income tax this year. making the net income be proportionally greater. Then if you had an income tax cost similar to the previous year. But even so, Considering all of these differences, the net income was cap at about BRL 20 million in this quarter that are considered to mediate. So a net margin of 1.1%. So we believe that even at a moment where -- the scenario is very complicated. The company's been deleveraging continues with strong cash generation and the company continues to present net income even after paying BRL 600 million. quarter. And in this way, we understand these results to be very consistent. And so on the next slide, you have something else that in every track up, which is the maturity flow in terms of the debt, right? So you can see our generation of cash year-over-year, we do and new cash in 2025. We have normal maturities IN 2025. We had a 3 prepayment down the third quarter that help to extend our payments. Our future maturities, and we have a flow in 2026 and 2027 that allows us to see or at least to infer with a big level of security for 2026, almost 100% of this actually that we will not need new cash for refinancing. And in '29 and '28, the volumes are concentrated but you can remember that our capacity for payment when it comes to cash generation is going to grow over the next year, and we have 2 years in '26 to continue working on debt extension transaction. So we and to BRL 6.2 billion and BRL 5.2 billion in bennani we don't need new cash during [indiscernible] , we'll continue to perform repayment transactions to reduce this concentration of these maturing and ate into 30 and 31. So even with the new were funding [indiscernible] engine that's not going to be significant. And so I think that's what I wanted to say about the electric capacity of the company, which I believe is something that even in a scenario that is maybe more complex, it provides us with a little more comfort and tranquility.

Okay. Thank you,. Next slide, please. we're going to have Sandra from his our VP People and Management and she's -- he's going to talk about our initiatives with sustainability in line with the topic that's very important more have [indiscernible] going on.

Good morning, ladies and gentlemen. I've been talking about our sustainability strategy a bit. And we've been advancing in this strategy -- and when we consider this pillar, where our work is to fly emissions and climate change. Canadians, we launched a new public goal to reach up until 2035, the reduction of our of the use of landfills we would like to reach the goal of being 0 line. So -- and so we also have been investing with reuse of waste, we are increasing comp posting processes and also in the practice projects. We've been involving 96% of our stores already in the program. And which gives us positive numbers when it comes to our efficient pillars when we consider climate change, we talk about as it go and transparent management, we have significant recognition on integration and ESG. We were the first retail -- food retail company in banking -- so we're firmly working in the sense when it comes to ethical responsible basis in the company. And in people development, we've in advance in our diversity and inclusion work with numbers that are very positive leadership of black people and leadership physicians, women in leadership positions. And Today, we have a significant remotes that are against FPGs over 1,000 actually. And we continue to be working on fighting with hunger and this program related to food safety. And so we've also had some strong work involving our in volunteering both programs during this year, especially with the focus on our regionals. And in October, we like this. You also had award of the academies is also supporting entrepreneurs and we are at addition of award was over 2,100 entrepreneur doing support financially in training -- and we also had the national phase now in September now in Sao Paulo, sorry. And we also had the special awards for special categories, technology, innovation system ability -- and in the 8 additions we've already had, we add up over 9,000 awarded entrepreneur. So Santos network supporting entrepreneurship. And in all of these advances, we've been able to have operations that are more sustainable and investments, strengthening our governance and we've been advancing with development communities where that are part of our story. So now I'll pass this on to Belmiro and then we're going to highlight this recognition as well. [indiscernible] as what's most conscious as well as I say, with one of the most valuable as well as use of other words, President companies enemy consumers for the fourth consecutive year and top of mind. And so sets of other recognitions as well and acknowledgments that the company has had in this period. We can move on to the next slide. But as we talk about the future, as I assume the biggest and most present company in food retail, when you look at the Cash & Carry operation, to be the most valuable brand. Our cash flow -- our customer flow is stable with 4 million people visiting our stores monthly. And the company now reached 60% penetration among homes in Sao Paulo. So that gives us space considering the strength of the brand volume and customer sales and a series of projects up ahead. So we've spoken about the [indiscernible] what we're going to be discussing as well cumenvironment and that's most challenging in the company has a series of avenues for growth, right? When it comes to health and we've been believing that as major potential when it comes to medication, vitamin supplements and HPC, which is there's no health in Cosmetics. And so the company's games project antidotes process with part of the population be more willing to having products with better prices and we have a very relevant project with citalabel, especially in regions where we have more density of stores due to this brand train. So we also have the financial services front. We have a pilot on the street when it comes to the B2B public as well that we're testing the terminals. And soon we should have some news as well. as we have is one of the main value levers. And one important point is also in the digital canals, especially with our partnerships for last mile. That's considering iFood and we've had [indiscernible] customers and less and logistics that's better when provided by last mile providers than if we were to do it itself. There's also an expectation as we've seen how performance among social levels has been with the income tax exemption, it should be some more relief the CDE public of spending most of their income paying off at a veteran. And now I'll pass the floor back to Gabrielle, and we can get back into Q&A.

Now we're going to begin our Q&A session. [Operator Instructions] Our first question comes from Danniela Eiger at XP. Danniela enable your audio, you may proceed.

I have some on my side -- the first one is a follow-up of the last comment you had when we understand more. Out the financial services than [indiscernible] to talk about the terminals. And I want to understand what does that represent protecontext in Assai it's something that you do on your own -- if you could give us more information, I think that would be great. And so my second point is maybe a little bit more on this context here. And where you have a little more space to do something. And I think you guys have been doing exit work in gross margins and expense controls, but we want to understand a little bit more about what could be done in the core business, right? So when it comes to expenses, so the base to keep up with sense there you've been quite lean for a while, right? So I want to understand if something you can still imagine trying very controlled or we're going to see some acceleration and then on the side of the store, I know you're presenting new categories. So what else would you be able to do I don't know is financial services, if we could maybe do something when it comes to site to but B, considering income challenges because I would be interested to get a little more were actually heading to the opposite side here, when we talk about expenses I think we can add some here and you can you can highlight some different initiatives and how we've been able to really keep up with this level of expenses that, in our view, is obviously [indiscernible] ?

First of all, great question. First, expenses in Assaí something that we're very disciplined with. So it's not like a single line. If we have different initiatives we work on -- and I was mentioned as the main pillar with customers at the center of the business. So we have some different initiatives with recurring expenses. We also have so check with this labor scenario on about 90% of the stores already having this equipment. We're talking about an average of 6 to 12, depending on the store. Especially for customers that are buying for replenishment or even like owners of restaurants, et cetera, which this is a big differential. But what we see as a team is that, well, expenses in the company are involved in all areas like a single process something that with you. over the years. And our expenses are pretty stable. We don't see anything very different from this. From now on, we kind of have the same dynamics, trying to be more efficient, trying to be quicker with their processes, but without losing track of the customer. And I think this is the main work we do, right? So when we look at expenses up ahead, there's nothing very different compared to what we've been doing. Yes. So just to add on, when we look at the stability of the customer flow, we see that, obviously, we're already preparing for scenario inflation would obviously reach a point where mostly shopping your bulk shopping would lose a bit of attractiveness and you increase replenishment levels. So this is very efficient including services. There's actually a lot of criticism when we have [indiscernible] even now the subject out. But this is for people that want to buy quick like day-to-day shopping. If you want to have like an actual -- so there's a bunch of projects when it comes to investors and using technology to keep expenses under control besides us check out mother data also and important advantage of cameras and data transfers in good quality, which allows certain functions in the store to be done in the central manner, reducing costs, et cetera. and we listed this in other departments. So there's a bunch of projects the company is being working on at this moment. Some are really focused on what we consider to be innovation or some projects that I highlighted that we should be discussing more now in the third quarter. But there's a lot of timing when it comes to efficiency and productivity. Just to have an IT lab, and we have some initiatives for the cuisines that have been helping us in marketing content production, et cetera, that could also help us with productivity within administrative funds. And so we have a JV with GPA and Biraj. We're discussing this, and we're very close to wrapping up with this negotiation process. And so we had a waiver metal to develop the sale of the terminals with the BT in end customers on BTC, we see big opportunities also to sell in churn and other financial services as well. So this is one part that's kind of released, but there is an expectation to unleash relevant value in the company with especially in lower income levels to we don't expect to increase our credit concession. The company is actually focused on deleveraging and also because we don't believe it's going to bring in a bigger volume of sales. But with partners shifts for the customer public PCBs, then yes, there is a demand for pet and that could help us to expand our sales, help you at question, Danny.

Our next question comes from Luiz Guanais btg.

Good morning, man. I have a question here about profitability. We are looking into demo expense control if you could break this down maybe this deleveraging path next -- for next year, you reinforce the company's guidance and part of this is also senting an improvement in margin. But if you could give us a little more detail in regards to CapEx and working capital, which is also a highlight in the last quarter, that would really help us in our projections?

Thank you very much. While the deleveraging path, of course, there is one aspect that's not in hand, which is really great. and that would be one of the biggest components, right? But what's in our hands, which is a manageable perimeter with like working capital. We expect to have stability, of course, and we're always searching for improvements. But our view at this moment and where we're taking up a bit more with our suppliers because high interest rates apply to everyone. So -- that would probably come in pricing, but the objective is to keep discipline -- then in the closing of the third quarter, we actually had a -- we're a little more stocked up. Now in this scenario that what we've seen, especially in B2B. With this volume we, for example, wouldn't have any stock elevation. Because these customers are really pressured with working capital, and they have to replenish the amount of products in [indiscernible] . The third quarter, in our view, was a fortunate point, especially for food service in September at the bar was almost 12% downlinked we saw the methanol prices for the bar industry. people don't go, they don't order portions of food and the public, we have a lot of penetration of fire snacks separate and because of this methanol scandal, we had a major impact, right? So when it comes to the levels of investments, we've already actually -- we gave them a warning and there was an expected and about [ BRL 1.2 million ] will become material for the next year in 2026 to be restricted. So the forecast we have is that it should be at most BRL 700 million, and that's kind of what we have when it comes to projects the new stores that are important [indiscernible] to have quicker deleveraging. So the objective out ranging is to focus even more on deleveraging since the interest rates are still a bit higher than what we expected. So I think that's equal. I hope I answered not just having your questions so.

Well our next question comes from [indiscernible].

If we explore a bit of the private label issue that you mentioned in the beginning of the presentation, but maybe if you could give us a little more of an update when we should see the rollout of this initiative. Let me focus on the short-term results as well, and we take more of a high-level base concluding the Cash & Carry in as a whole. I think that over the last few years, this is very clear, right? The Cash & Carry movement was capturing these sales. And I think that throughout last year, you guys been talking about than carry a little more starting to capture supermarket sales. And I just wanted to maybe get an update on how you guys is minded about this industry trend overall, not only Assai, right? But to start capturing the sales of supermarkets as well. I think going backwards first, the Cash & Carry model. We always try to make it very clear because I [indiscernible] get a lot of confused with the Cash & Carry model and other formats. And now most of the distribution for small businesses have done environment update within patient carriers. As always is the difference of performance among social levels, which is really strong, right? So you're at this moment where you're strongly moving towards income transfer, right? So lower income to higher income at an interest rate level that sees well, high interest [indiscernible]

Yes, what we've seen is when you look at the economy, look at all of the social levels in a single package, but on average Well, because this year, we're going to have a payment of over BRL 600 billion in fixed income, which is we may go to 17% of population. So that's going to patient as well as other aspects. So when you look at CDE process, we have all pan-high debt level month over month. So that's where you create the Cash & Carry format is more exposed to low implement high income. So when you look at retail formats, we noticed that, that's where performance is even worse than Cash & Carry because it reflects that public entirely. So that's where we brought in the information to highlight this. And while interest rates remain high, we should remain. I think there's open expected now after the methanol crisis. And we had this end of year period where the consumption is a little bit higher. And you also have the exemption of income tax. It's going to help with this public -- and part of this should be headed to consumption, right? So -- this is the movement that we see in the industry that private label projects and why we believe this is going to be the moment Brazil is a continental country and the difficulty with private level because if you look at the map behind me, you can see that we have this very high decreases -- so we try to take this to the contrive a lot more expensive. And but that's because of the resin tax scheme of great then we were able to reach a level of 10 of these were the logistics costs are less high-end bench strength. When we brought in a lot of expertise and the expectation in the first quarter, we already have products continue which should help us to capture margins, but also customer demand of researching tires of lower cost, and we believe that this aims persistence. We've seen this not only here in Brazil, but in other markets as well.

Our next question comes from Tales Granello at Safra.

Good morning. themed -- we have a question about the CapEx, you talk about BRL 700 million next year. There are discussions canyon maybe interrupting expansion momentaneous to really accelerate deleveraging due to higher interest rates that were not in the base scenario case last time it was reviewed expansion. And also in regards to the batch of stores in 2023. And there's a level of sales that's already similar to the legacy stores free conversion. But margins are below. So this is mainly due to the cost of the lease or is it a effector and so -- is there another factor that's not on our radar.

Yes, we did discuss this -- the stores that are being opened now are going to definitely be the sort with the best levels of retentions that we had because these are projects that are -- and these are projects where the value is paid with the new stores of about BRL 700 million, BRL 220 million, BRL 240 million would be the equipment part. So all of the other projects, we start them up with the landing for projects that are required the company's capital to property, et cetera, all of this, we won't be investing in, as you mentioned, because interest rates got way above expectations. But now especially in markets where we have a little quicker maturity next year, we actually open up number. We already received a lot of questions in regards to this. And now, for example, in Osasco, basically for for store there, we're discussing, we're opening on to [indiscernible] In fact, [indiscernible] don't have an apace. So as you see, we have low levels of investments in turn for their emboli and really have a ramp-up at really justifies the maintenance of the look. And that really renaiportant, of course, for deleveraging that -- so that would also not be relevant enough to the plant of removing these 10 units to stores. So all of them with the exception of one in a migraine No, this is a -- these are projects where the upside brand is really high and 23, then you have a significant weight of leads, and this is we've been working on as well to bring in this strong network when it has profitability, but we need to at least take a look at the strong network in 2025 and 2026. Which is better than what we had. So I know at the moment in Cash & Carry in the market [indiscernible], but its going to be a store network with better performance and a better ramp-up -- and that's very, very much convinced about the store openings.

Our next question comes from [indiscernible] Peter will never are, you may proceed, please.

Well, first of all, with October coming in stronger, you could -- maybe you could imagine that Q4 would have a same or sales less similar to what you presented in the first -- that's the first question. The second one is about what we think about increasing the hygiene and beauty category. How is the scrap going do you imagine that could be impacted in some way in the market. considering competition in the marketplace?

Yes, there is an impact. It's not going to reach the lower social levels, but it does affect A&B and the movements that have been going on in the market place. So we've also been assessing this and the social levels is not something that's relevant from a volume perspective, but there is an impact. Actually, the movement we had in the drugstore project so we can also put pharmacy in the store, and that would also help us in this category, which sometimes you would use the pharmaceutical channel for. So normally, they can deliver non-perishable products to high value which is what you can justify a volume rate. So any product reduces at credit value, especially when it comes Well, there's an impact now getting more from pharma and superior income. So -- if we consider this is going to be a regression and this is probably to consider the Nielsen research which is independent pharmaceuticals and pharmacies that did receive them on [indiscernible] already. So the performance difference is huge, right? So you actually see this anomaly within pharmaceutical at this moment, which in some way distorts and brings pharma to perform level that's a bit or it or very different than the other sectors. And with the first question, me if you could think about how the fourth quarter resources so very similar considering that this is very strong brand, yes, expectation and actual was strong. There was a petite campaign, but there's also other initiatives in November and December. And what can we say? Well, of course, you have to be careful because in September, no one was expecting the impact we had for the overall market, right? So if you look at the sector as a whole. And so let's say I have to be more cautious, but we do look at this to consider the sectors that are selling back, and we believe our sector should recover a little bit. Of course, it is an expectation we have. There are some strong Black Friday initiatives until the end of the year. But of course, we're subject to reflecting on what this B2B public is all about. So we have to be careful about this. We can look at October with the one month only campaign, right.

Our next question comes from Felipe Rached at Goldman Sachs. Felipe will enable your mic so that you may receive safely.

I want to explore a little bit more of the self-checkout topic. I understand that helps us. Since they have evidence it's relatively low, but to do open up the percentage of the tax cards that are below the limited items. And well, then just a quick follow-up on expenses, how much would the SG&A be impacted if you were to consider all of the open vacancies and how the challenge of hiring employees and check out of operators and how this could be impacting the value of the format and how this could be impacting sales Well, thank you for that question. We've definitely had a lack of labor for businesses as a whole. And what we've noticed is that cash and carry is a format that's more go to a little income, there's a bit more tolerance. But of course, it's difficult to say how much we're losing sales because the lack of personnel has been a general factor for all sectors for super, many markets, decenter and the fact that you have a bigger amount of employees in a cash and case store or even a higher rate of absences and then -- in our case, we have an average group of about 300 people per store, [indiscernible] , but it's going to depend on the size of the store, force, but obviously have an impact. But the objective we have in self-checkout was to point. In our view, as a sequence of services to make the model also more attractive for smaller day-to-day shopping and also because it's pressure. In finding employees, right? So when it comes to sales, I can't break down the number share this, but in transactions, we're about 20% of which gets of course, the business is not going to go like [indiscernible], but we have so many shopping at BRL 50 BRL 60 purchases or BRL 7,000, BRL 10,000 but it really helps reduce the perception of the Q at the checkout and also [indiscernible] our levels, we're going to have a turnover this as the overall commerce of 95% of our vacancies filled that and our people management department has been doing pretty could work trying to replace these vacancies. But overall, people get that, then they have to be hired to get the benefit, they go from they've spent money on their bets. -- but -- and then that's something that's going on, right? But that's going to be 5.5%, 0.20, et cetera. But anyways, now this level is already pretty persistent, right? So from the base perspective, that wouldn't be too much of a difference very clear.