Good morning. Good morning, everyone. Thank you for waiting. Welcome to our video conference for the release of results of 2024. This presentation is being recorded. It's available already on our site. All participants are just going to be attendees, we're going to have a Q&A at the end, so you can send your questions along with the presentation. The statements contained in this presentation are related to business prospects and projections about operating and financial performance. We're here with Silvio Stagni, Thalita Basso. I'm going to hand it over to Silvio now.
Thank you, Lia. Thank you. Thank you everyone for being here today. As we always do, we are going to provide you with some details on the fourth quarter.
I'm going to highlight, by the way, some of the things on the third quarter, then our CFO, Thalita, is going to get into details. I am very happy to show a third quarter that is quite strong. In 2026, we complete 25 years in the market. 25 years connecting suppliers, retailers, operators, and customers. 25 years of generating value, creating value in the ecosystem. We're very proud to be part of this successful history. Let's go back in the tunnel, in the memory lane. We connect the suppliers, manufacturers of TV, cell phones through distribution. Of course, selling the electronic in Brazilian retail companies. By the way, we sell to companies, these companies could use the devices, we also sell several services in Brazilian retail.
We connect direct to sales with our consumers, physical stores, standalone stores, store-in-store, shop-in-shop, strategic partnerships such as iPhone pra Sempre and the iPhone pra Sempre, our MobCom.br store, our online store connected to the main market, Brazil. We are also connected with what we call circular retail. We're the main trading partner of several players in this market such as Vivo, Claro. These phones, we acquire the moment of the trade-in, we resell it. For the quarter, we have that our net revenue increased 8.3%, reduction of our expenses, 6.1%. By the way, we have an EPS that is almost BRL 8. Very solid, very efficient. A significant cash flow. In 2025, we paid BRL 14.2 of dividends. The return of our stakeholders was 37.5%. I have no doubt in my mind, one of the highest in the market, in the department.
Our net revenue grew 8.3%. It's one of the biggest, again, one of the most solid in the last few years. Not only Brazil, but internationally speaking. We're going to get into details. It was a year that we had problems in international operations. Overall, we got legendary results throughout the year. 2025, we had the same revenue as 2024, same level. Our business is quite resilient, our results reflect that resilience. When we add it all together, we can see this resilience in all the results. Let's just start with the distribution highlights. Brazil grows 7% year-over-year, excellent result. On the right side, for international, quarter-over-quarter, we have 44% increase growth. Comparing internationally in the first quarter, we, of course, suffered the consequences of the tariff applied by President Trump.
We are in a foreign trade zone, which doesn't impact as much. The way we buy from our suppliers to sell it changed significantly, and we had to adapt to new processes. When you look at the second and third quarter, we were able to recover the same sales level that we had before, getting to 44% in Q4. Adding it all up, we have a flat result. 4% of our distribution growth in Brazil, I can break it into two categories, smartphones and notebooks and laptops. You can see the TVs starting with the smartphone. Brazilian market grows 4% in 2025. Distributors drop 9%. Allied grows almost 6%. We were able to weather all the hurdles and side effects throughout the year. We were able to grow much more than the distribution market, and we gained market share in the smartphone.
On the right, we have laptops. Same situation. The Brazilian market grows, distributors drop, and we grow 15%, gaining market share. In these two categories, which are quite important categories for us. For retail and online retail, this is the growth and the performance. Yes, we have a 2.2% overall and 12.8% compared 2024 - 2025. We've made strategic partnerships with iPhone pra Sempre, HP Store, and so on. These results are quite solid for online retail. iPhone pra Sempre, iPhone Forever program has generated quite positive results for us in Brazil. In the last quarter, we launched the iPhone 17, and yes, we had an increase of 25% year-over-year. Quality of sales is a highlight. iPhone 17 Pro Max is at the top of the pyramid. This item proved to have an increase of 30%. It's a successful program, and it has borne fruit.
It is crucial. iPhone Forever, consumers have the possibility to pay 21 installments, and they can return the iPhone so that they restart the 21 payments again to get a new one. This is what Trocafy is all about. It retrofeeds the system. Three years of operation, we had an increase of 160%, quite significant increase, which reinforces that the refurbished line has a great potential. Point of sales is another stronger point. We are connected to connect Mercado Livre, Magalu, and most recently, Shopee. When we talk about captivating or getting, amplifying our sources, Samsung, Fast Shop. We also have Claro Up, which is a program that makes sure that you can buy the used phone by the end of the installments. By the end, they paid installments. We buy refurbished. They can buy refurbished phones through our distributors.
We are constantly trying to improve operational efficiency in our market, by the way. Speaking of physical stores, physical retail, it has been revolutionizing. Ever since the pandemic, consumers started purchasing more online, and we've been paying more attention to it, improving our points of sales. 2024, we had 112 POS, and we closed 16 and opened four physical stores. Compared to 2020, we had BRL 216,000, and now we have BRL 445,000 as revenues per store, which proves an increase of revenues. How can we get this increase per store? Based on quality, the quality of our stores. Every phone we sell, we sell 2.4 accessories, Headset. Every two cell phones we sell, we also sell an insurance plan.
When you look at our results ever since 2021 up until now, we are very proud to say that every quarter we have had revenue, 2025 was no different. Our growth drivers are quite steady. We are betting on Trocafy as there has been growth, and we are still betting on the distribution companies offering new and is strengthening our diversity. We try to find more strategic partnerships, such as iPhone and HP, but we do. We have a dynamic operational international expansion plan. Our strategy is great potential, not only portfolio potential, but geographic potential. Last but not least, market. The Company was founded in 2001. We have 5,505 stores, more than 10 product categories. We sell over 6 million of items in our distribution centers in São Paulo, Minas Gerais, Espírito Santo, and Bahia. Thank you very much.
I will hand it over to Thalita now, she is going to go on with the results into more details.
Thank you. Thank you, everyone. Good morning, everyone. What was our quarter like? The left one. We got net revenues of BRL 1.5 billion, [up BRL 3.6 million, 76%]. Our cash flow, BRL 375 million, which is quite comfortable. Quite strong, the position. Net debt of BRL 48.1 million, which leveraged our EBITDA by 4.2%. This net debt level was a strategy that we adopted ever since 2023. We had the awareness of a severe increase in activity, ever since then, debt started to be fundamental in all our decision-making. The result for 2025 has been bearing fruit based on the long-term strategy that we have adopted. We aim to show our painful growth here on this slide throughout our sales channels. Here we have the net revenues.
We have the quarters from the fourth quarter to the 2024, 2025. Q4, 125% growth when applied reduced the lines of sales up to August 2025 Q4. It pointed to all group stores, including [Apenas], a bunch of companies, and shopping malls. We did not have enough time to recover. In 2026, we are operating at full speed, it is bearing fruit. Below, our gross revenue has increased, the margin, the gross margin is quite strong. We are operating in Brazil. It is vintage that turns into profits. Highlighted Brazil. That had a gross margin that was quite positive because it kept growing ever since 2023. It only broke through last year, but it kept growing overall. The online retail has been reaching 24%, it proved to be quite strong. As Silvio mentioned, Brazil overall grew 4.8%, overall the company was flat.
The positive thing is that the company was able to grow 3.9%, BRL 7 billion quarter after quarter. The gross margin leave our concerns over our expenses Has tight margins on everything. Make different. We were able to reduce our expenses, we had to work, like, much better results using all parts. They informed the headers, how we increased the ability, we also increased our contribution and online presence of God for efficient. Got a 6% reduction on BRL 30 million good practice by the way. Operational expenses and financial expenses were all had to be reduced. We got very good results as far as progress. The EQ was quite high in 2025. [inaudible]
We were able to pay back our debt to have a better cash flow, it had to give a BRL 1 million reduction of our expenses, which is key in this scenario. In debt list, what was it? Quarter after quarter reviews. We got the first payment, the first venture payment, and the first and the second venture that we paid June to December, around BRL 30 million. It's better cash flow. We were able to [inaudible] Here is the EQ back, the EQ came back, the business. We have what we call the short term of net. And what we call the in-depth and all events that are just known. Here you see the chronogram of the debts being paid.
We were able to respect all payment, everything that we were able to do. In cash flow throughout the year, I think we were able to have a great performance for cash flow, low costs. We were able to pay our debts, pay the interest, pay our gross debts, and declare the payments as we paid off. It did reduce our capital. It finished our year, this BRL 375.9 million, So BRL 5,505 million all came from the late pay. We were able to increase our cash flow and distribute it to our shareholders. We were able the results year after year, up to 2024. We anticipated iPhone pra Sempre program that you can pay 21 installments.
In 2025, due to the scenario and the cash flow state, all this people. We had 40 because we didn't have this specific expense. Our cash flow was much better. This shows our commitment with the net revenues and all our commitment to reducing costs. Had to what I could call regular performance and also we paid everything off. We got the credit in August. That's why we had this positive result, and we were able to make all the payments along the fourth quarter. As far as the gross profit have the highest months, Two years. On the right here shows our commitment to make sure that the company health and this net revenue is stable around 4% to reach our target before COVID, or even now. We had good net revenue.
Quarter after quarter, when we contrast that, there was a decrease, the total amount was positive because we were able to manage and declare BRL 122 million, reaching 34% or 17%. Of course, we had a change of IR regions reporting in Latin. Revenue 1% was the growth, both shorter or lower. When you contrast the distribution, you consider the distribution, it was positive. Good news is we are committed to sustainable sales, cash flow management, and we continue into low leverage costs. The way we pay our stakeholders, the respect we have with each and every one of us, and the respect we have with people who work with us, we pay dividends, not only in technology. We are one of the best companies to work with and work for. Thank you everyone involved in this great results. Thank you.
Thank you, Thalita. We are going to start with Q&A. You may send your questions, by the way, if you have any questions. Our first question is from Norton Mellow. In regards to international operations, when we look at the cost expenses that are low in Miami, what are the expectations for 2026? Are there ongoing negotiations in other Latin American countries? Silvio, would you be able to answer his question?
Thank you, Norton, for your question. We cannot have a clear forecast for 2026, but I can address two things here in your question. First, speaking of expanding to other countries, as I mentioned, we have a strong presence in certain countries. When we started Allied Miami was to have a presence in all Latin America. The countries are different. Brazil has fiscal benefits if you manufacture locally, so this doesn't apply to Miami.
For instance, Apple, Lenovo, they're all manufacturing in Brazil. This does not apply for other countries in Latin America. All the countries, they have different ways to operate. When we created this hub, we aimed at growing and expanding to other Latin American countries too. In Brazil, the distribution has more than 10 line of products. In the U.S., we only have three: Apple, Motorola, and Microsoft. There is a potential to expand our portfolio.
Next question. One more question for Trocafy. Are there expansion negotiations for other marketplace, Amazon and so on? What are our perspectives with Trocafy?
The refurbished market is limited in Brazil. Much more for supply than demand. We have been very strict to deciding the points of sales. We have legal Fast Shop, Samsung, points of sales where we have a mid to high price, which is good for refurbishment. Trocafy intends to have one of the biggest in Brazil. We believe that the refurbishment market is going to grow. When we compare to the U.S., it is much lower in Brazil, it has potential to grow. The impact of, let's say, an iPhone or a Samsung on Brazilians' purchasing power is significantly high in Brazil, right? Brazilians have lower purchasing power. We are going to try to find more points of sales in order to expand. Of course, always believing in our theory that we can grow our market overall.
One more question from Felipe. Felipe sees that the stocks have dropped, is it going to be sustainable for 2026 since the inventory has dropped?
Thank you for your question. As a distributor, it's fundamental to manage our inventory. We have 45 days-60 days of inventory, which is about BRL 700 million worth of stock. We need to have a reasonable stock inventory level. It involves marketing, sales, product experience. We analyze the market, do launchings, pricing, then every quarter, we readjust the Open-to-Buy, how much we can buy in that month based on our sales and also based on our forecast of what is going to happen in the upcoming two months. We make a constant effort for cash flow. Inventory level can be kept. The only thing is there is seasonality. October, Black Friday is very strong, we sell a lot November, October, November. This inventory level that we have now is the level that we must keep.
Thank you. How can you interpret the dividend? Can you help us with the interpretation of the dividend? Thank you.
Thank you. Well, it is a strategy of the company. Allied is more conservative in terms of taxes. We have great law firms helping us out with taxes, legal proceedings, and we try to think of the results and the legal aspects. We make deposits whenever is necessary, legal deposits, and when the hearing is over, the whole litigation is over, it is usually ruled in our favor. We get good results for our investors. 2025, and also other years before, we sold our credit values according to the late paying law, and we were able to increase our cash flow, and it allowed to pay more dividends. Also, we got the default in our favor. Quarter after quarter, we have been delivering positive results for our stakeholders through these tributary thesis.
Thank you. Thank you very much for participating today. I'm going to be at your disposal if you have any questions. Other questions will be answered by email. Thank you for being here, and have a great day. Thank you. Have a great day. Thank you very much