Good morning, everyone. Welcome to the earnings video conference for the first quarter of 2025 for Allied Tecnologia. My name is Adriana Santos. I am the analyst of the investors of the company. Before getting started, I would like to say that this event is being recorded as well as translated simultaneously to English. All the participants will be here just as listeners. Then we will start our Q&A session. If you have any question, feel free to send it through the Q&A button located in the lower part of Zoom. I would like to say that the statements contained in this presentation that are related to business projects and projections about operating and financial performance, that they are internal beliefs and estimates based on the company's administration expectation. Today, we have Silvio Stagni, CEO, and Thalita Basso, the Financial Director and RI for the company.
I would like to pass the floor over to Silvio that is going to start talking about the highlights of this quarter.
Thank you, Adriana. Good morning, everyone. Thank you so much for your presence here. Today, we will provide you with some details regarding the results of the first quarter that were released last night. Let's get started by remembering the three pillars of the company. I will get started with the right portion that is connected to our distribution. This is where the company started a few years ago. First of all, smartphone, cellphone distributor, nowadays, devices in general, computers, video games. We are one of the biggest distributors nowadays. In 2023, we started the distribution to Latin America, creating Allied AM . The pillar in between, we are talking about our retail stores. We have 114 stores. We have Samsung, the main shopping malls in the Southwest in Brazil . We are one of the biggest part of their Samsung.
On the left side, we have our digital retail. We have Mobcom that is connected to the main marketplaces in Brazil. We also have different strategic partnerships. The longest one is iPhone Forever, iPhone pra Sempre. It is an association between us, iPhone, and Apple, which is one of the main sales channels of iPhone to Brazil. Recently, we created an association with Nubank. Nubank offers to their partners a special financing plan for the purchase of iPhones, and we manage the HP online store. Considering all the categories that we are present, we have a significant market share in the Brazilian retail. The examples of the first quarter, 9% smartphones market share, 13% of video games market share, and 6% of notebooks market share. We are still facing a rather challenging market.
First of all, because of the high interest rate in Brazil, which impacts the capacity of retail to finance the investors as well as the financial costs. Considering this challenging scenario that started last year, we are facing the same scenario this year. We believe that the amount of businesses that we have will still bring a result resiliency besides the market scenario. I would like to start by talking a little bit about the results overall. When it comes to our revenue, quarter-after-quarter, we dropped 16% year-after-year. I would like to provide you with a second vision. When we look at our Brazil operation and our Miami operation, what we see is that Brazil grows 4% quarter-after-quarter. The main electronic market is the cellphone one. It is the biggest market among everything.
The cellphone market in Brazil grew 6%, Light market grows 4%. We grow more than the market. Where did we suffer? In our Miami operation, dropping from BRL 450 million to BRL 155 million. We'll talk a little bit more about that. The midsection here, we see our net income. If we forget the JCP fact that brought us a benefit of BRL 34 million, which is not recurrent, here we compare a net income last year, BRL 16.1 million to BRL 15.1 million. Very in line with last year. Since we're talking about BRL 15.1 million in a smaller revenue, this took a toll on our net income, a percentage of 1.3%. Here, when it comes to the earnings of 2025, we are still one of the highest dividend yield paid of 18.9. We committed ourselves with a payment of BRL 122 million .
I'm going to talk a little bit about the pillars of the business. First of all, the distribution. Brazil's distribution is the big highlight of the first quarter of Allied. On the left side, we see Brazil's operation, or the Brazil distribution as a whole with all the products. We grow 8%. Just to remind you, the market of cellphone grew 3%, and our distribution grows 8%. If we take a look at this distribution, only the cellphone part. In cellphone, we grew 20% to the first quarter. As a consequence of that, we grew our market share, our market participation in Brazil's market in 1.1 percentage On the right side, we see our Miami operation. It's been two quarters that we've been suffering a little bit, but the news are good.
The fourth quarter of last year, we suffered a lot with the volatility of the Latin American currency connected to the dollar. That brought about an instability considering the prices of the products, and it really dropped the size of the market here. This volatility is much smaller nowadays. It's much more stable. On the first quarter, we had a new surprise, which was the new tariff treatment of the United States government. It's important to highlight that in terms of cost, we were not impacted by these new rates. The way that we operate in the United States, the products, they don't have this physical entry. We buy in Miami, we sell in Latin America, so any rate that is applied to the United States does not impact our cost. However, the process to purchase and buy with this new rate package changed dramatically.
As us and our distributors, we had to adapt. It took a while for us to get adjusted. We wrapped up the first quarter with all the process implementations, and now we will get back on track, right, compared to what we were used to in the past. Let's talk a little bit about the digital retail. We have our store, Mobcom. This is connected to the main marketplaces in Brazil. We have iPhone pra Sempre or for always, that we launched in August. It's one of the main sales channel of iPhone in Brazil for the fifth year in a row. Recently, we launched Nubank, the association with Nubank in September last year. The figures, right, that we are presenting in terms of sales, they are much larger than the expectation that we used to have. We have a partnership with HP.
We manage their online store. If we compare to last year, we grew three times year -after -year. Another area from the online that we've been investing in, we haven't really talked a lot in our results call, is our service sales. We started really betting on the service sales as a pillar of our business. Our main service nowadays, Microsoft Office and the McAfee Antivirus, that are sold as an electronic way. If we contrast year -after -year, we grew almost four times. This business pillar is connected to the final consumer. For us, it's very important that we provide the final consumer a treatment that this person might have a very good experience. The reflect of that is that we earned the RA1000.
It's the seal from Reclame AQUI , one of the greatest recognitions of excellence in service in the country, we are very proud because of that. Now, when it comes to the B&M Retail, we want to keep improving, we want to decrease the cost. In this fourth quarter, we reached 475% growth. If we compare to 2020, that was 206%, we are 235% more than 2020. How do we do that? Focusing on the quality of the service, as well as other items that we can aggregate the sales in our stores. First of all, in this first quarter, the quarter that we launched Galaxy S4, we were able to grow our average cost 5% connected to last year. The second, very important for this market, is the annexation of the wearables on the cell phones. We're talking about the earphones as well as the watches.
In this first quarter, more than half of the cell phones that were sold, they had a wearable that was attached to it. The third is the accessory sales. This is very important for the experience of the consumer and increase of revenue of our stores. Year-after-year, we grew 193%. The last topic, our insurance sales. Once we sell the cell phones, we sell the insurance. Year-after-year, we were able to reach an 85% growth. With that, we were able to grow in revenue per sales point, which brings viability and profitability to our business. These are the three pillars of Allied business, I would like to highlight one of the areas that we've been touching upon. Some years ago, we started the Trocafy. Trocafy is our purchase and selling of these reconditionals.
We have the website, [wantbe], we also have the Trocafy connected to Mercado Livre and Magalu. We have two B&M Retail on Center Norte Mall and Eldorado Mall, we also sell this to some retail, some partners that they sell this to their consumers. Where do we grasp these cell phones to recondition them and sell them? Nowadays, we are partners of the main sales point of Brazil, Vivo, Claro, of all the Samsung stores, Fast Shop, we also capture from iPhone pra Sempre. Whenever a consumer accesses a Claro store, they will have the opportunity to get their old cell phone purchased. We recondition and we sell to our purchase point. If we contrast year-after-year, our growth is 3.3%.
We bet on this market because the estimated growth rate for this market in Brazil is much higher than the sales of new cell phones. If we take a look at the penetration of Brazil and the United States, in Brazil, the reconditions, they go through 20%, United States, 27%. If we contrast the power of purchase that those different audiences, we believe that Brazil will reach the penetration rate as we have in the United States. We have a significant growth. We have everything to become the best player of this segment in the market. We are still betting on four drivers of growth here. The first one, our international operation. We still work with not so many products, Xbox, Motorola, and Apple. And we are present in 16 countries of Latin America. We have growth opportunity in terms of portfolio and in the geographical aspect.
Trocafy, we're talking about a crescent market. We're talking about a growth driver for us. Third, we are betting high in the B2B, right? And we're bringing in new people from the market. We just brought a new director to the area. This is a very important driver for us to growth. Lastly, we will keep betting on our B2C partnerships as the one that we have with Nubank, Itaú, and HP. To wrap up our key figures. These figures are concerning the last months, wrapped up the last quarter of this year, BRL 6.1 billion of gross revenue. We're talking about 114 stores, four distribution centers, and in the last 12 months, we sold 6.1 million products. If we only take a look at the products that were delivered to the final consumer, we have 527,000 deliveries.
We have physical stores, and we have 1.5 store sales. We grew a lot connected to the last year. And Allied overall is made up of 1,100 employees. Now I will pass the floor over to Thalita to detail a little bit more our earnings.
Thank you so much, Silvio. Thank you, Adriana. Good morning, everyone. I would like to thank you to be with us for this other earning video conference. We started with some highlights, as Silvio mentioned. BRL 122 million in terms of interest on equity to be paid in 2025. Cash position, we wrapped up the quarter with BRL 338 million. This is a very good position in the Brazilian scenario. Financial result improved 22% with regards to the last quarter. In our net debt, we have BRL 140 million. 0.7, considering our EBITDA. Now let's talk about the key figures.
I would like to point out the context of the macroeconomical in the Brazilian market. Selic, compared to the first trimester, grew 3.5 percentage points. We left 10.75 to 14.75. And according to research, CNC, the trust of the consumer concerning the investment based on the stocks, we saw a drop of one point. When it comes to the employment rate, this level is constant. The biggest concern due to this interest rate has to do with the stock investments. Due to this challenging scenario, Allied shows itself as a very important player for the manufacturer as well as for the customers. The net revenue was BRL 1.2 million. It's a retraction connected to the first quarter of 2024. Our gross profit of BRL 146 million, it's a smaller reduction compared to 2024, so it shows a earning of 0.4 percentage points.
Our EBITDA of BRL 14.2 million , which is an increment of 0.7 percentage point. In our accounting net income, we're talking about BRL 15 million and 1.3% in terms of profitability. When we compare excluding our JCP, it's a gain of 0.12 percentage points compared to the last quarter. Taking a deeper look in terms of our distribution, Allied had a growth of the Brazil distribution of 7.7% quarter-after-quarter, and the Miami distribution grew compared to the previous quarter. Considering Brazil, besides this growth in the distribution, the biggest strength, the highlight of the first quarter was our growth of 20% in terms of smartphones. That grew 3% in amount the same period. That made us get 1.1 percentage points in market share value.
When it comes to the international distribution, as mentioned by Silvio, we had lots of impact in terms of the devaluation of the currency in the last quarter of last year. In the first quarter of this year, the currency were a bit more stable, but we had an operational impact due to the tariff changes, considering the Chinese products. Even though we're talking about this context, Allied was able to grow versus the last quarter. It grew 12.3%. When it comes to the gross profit, Allied still maintains its profitability here. We don't see much changes. When it comes to our retail. Our physical retail grows 1.5%, considering that 2024 was a year that was very important for our physical retail. To grow on top of an accelerated growth is a very good result.
In our digital retail, it highlights revenue growth from Trocafy as well as digital licensing services. Looking at the revenue, our physical retail drops 2.6% because quarter-after-quarter, we closed 10 sales points, the small ones, based on our profitability and the profitability of the sales point. It was a small drop. Our digital retail as a whole, it falls 3.8%. On the digital retail, besides Trocafy, we had 210% of growth of our HP store as a seller in the main marketplaces of Brazil. Our physical retail, we had an average ticket growth. The high conversion of wearables and the sales of S line, that it's rather representative for Samsung as a whole, and our high insurance conversion, that brings a very good profitability for the business besides contributing with the revenue.
As Silvio said, we grew 2x our revenue per store since the end of the pandemic, which is something very significant considering the challenging scenario of retail as well as the change in the behavior of the consumers migrating to the digital. Having everything into account, all the different channels, Allied Brazil grew 3.8% quarter-after-quarter, which is very representative considering that that goes beyond a GDP perspective for 2025 as well as the family consumption for the same period. Besides our growth, gross profit, here we have 4%. In terms of gross margin, we have a stability considering the different channels.
I would like to highlight that retail as a whole has a new trend showed in 2025, considering the mix of channels that we have with the exit of Soudi and the increment of Trocafy as well as the sales of licenses which is a rather stable profitability and larger than the other ones. The operating profitability and financial results. Allied was able to improve its operating expenses compared to the first quarter of 2024. The financial result improved 22% compared to the first quarter of 2024. The selling expenses, besides decreasing from 92 to 86, it is also important to highlight the gain of profitability because when we analyze it based on retail, that is the biggest driver. Retail fell 3.8% as expenses reduced 6.5%.
It just shows that we want to keep improving profitability, not only considering physical retail, but our digital retail. Our administrative expenses reduced. We saw a significant reduction of BRL 6 million. This is very interesting. From BRL 31 million to BRL 25 million. This is a very relevant figure considering our general and administrative expenses. Financial result. We improved BRL 6 million, and compared to the first quarter of last year, this increase was only connected to BRL 2 million due to the Selic. It grew 32%, and Allied has put a lot of effort to pay its gross debt that we will talk more about in the next slide. Allied paid BRL 40 million in terms of structured debt in March. We finished the Soudi operation. We had BRL 140 million in terms of net debt and 0.7 in terms of low leverage.
If we compare to the net debt for last year, we have a 1.1 gain in terms of leverage. Allied has to pay its structural one. In June of next quarter, we will start amortizing the fifth debenture, and the fourth quarter of 2025, we are also going to get started the amortization of sixth debenture. Our cost is still rather stable based on the structure and CDI + 2.4%. The cash evolution. Allied wraps up the semester. This is a semester that we have to adjust the stock level. We have slight investment, from BRL 30 million investment in our turnover, and we made the payment of our JCP in April. We were able to pay BRL 40 million worth of debt in March. That is why we see this payment of BRL 58.7 million as well as that.
Even though everything happened, we wrapped up in a very solid way as a result of the main focus of the company, which is, besides the maintenance of its operational profitability, Allied has a constant concern about its cash flow management considering this scenario of a high-level Selic. Overall, I believe this is the strategic diversification of our results. I believe that Allied makes the bridge between manufacturers and customers many ways. We have seen a good strategy that shows consistent results and constant profit. It was another quarter of net revenue worth of BRL 1.2 billion, gross profit around 12%, BRL 146 million, accounting EBITDA, BRL 50 million, 4.2%, and accounting net income around BRL 50 million. I believe, overall, this is what we would like to share about Allied. Thank you so much for your attention. Have a wonderful day.
All right. Let's get started with the Q&A.
Remember that for you to send your question, you have to click on the Q&A button on the lower part of Zoom. The first question came from Julio Almeida. He congratulates us on the results. He comments about our financial health as well as some debt levels from the company. He asks us to talk a little bit about the maintenance expectation of these figures, of these amounts. Now I would like Silvio to answer, okay? Or maybe Thalita. Okay, Thalita.
Okay. Thank you, Adriana. Thank you so much for the question. It's a very important question considering the Brazilian scenario. We know that Allied has a constant management of its inventory as well as our debt. We have a structured debt that is going to be amortized at the beginning of June.
The main thing considering our management is we don't want to enhance our financial expense, considering the high interest rate, not only for now but for the next two years. This scenario is made thinking of the liquidity. Allied is in a very comfortable level, and the big concern has to do with not enhancing our financial expenses because it can be rather representative if we have any increase in net debt, structural debt.
Okay. Thank you so much. The next question came from Marcella. She would like to talk a little bit about the tariffs in the United States. I believe that you talked about this, but if you could put more details on how this can impact the next quarters.
Okay. Can I answer that?
The new taxes in the United States, they impacted the products that we sell, like cell phone, computer, but they didn't really impact Allied business. The way that we are structured in the United States, we are in a fiscal area where we receive the products coming from China or coming from the United States. We didn't really internalize that in the United States. From there, we export to Latin America. Besides physically being there fiscally, we didn't really access the United States. These new taxes, considering the electronic devices, they impact the products that enter the United States. We're not there.
What made our lives harder in this first quarter, it's something that we have already solved, that these products, they had a rate of 20% determined by the United States. Due to that, the process for you to separate the products that will go to the United States and the ones that won't go to the United States, this became more complicated, considering the warehouse standpoint, as well as the way that we have to come up with the orders as the way that the customers have to buy from us. It was a quarter that required lots of adjustment considering all these processes. We went about this. We are back on track. We got back on track in terms of the pace of our operations before all these alterations. We believe that now we won't be impacted anymore.
Whether the market will go well or not, I believe that we are going to keep up with everything that we have done before.
Thank you so much, Silvio. I would like to highlight that you can share your question through the Q&A button here, and we can ask the question here in the video conference. Our next question came from Luís Chagas. We are talking about two questions, actually. He comments a little bit about the consumption of working capital in the first quarter of 2025, and he asks us how we are seeing the dynamic of this line from now on and the inventory optimization in 2025, and he makes a comparative analysis considering the EBITDA growth versus the revenue. He would like to understand some of the leverages that brought about this result, the efficiency initiatives that the company has been resorting to.
I would like to pass the question to Thalita, please.
Good morning, Luís. I would like to thank you for the two questions. When it comes to the cash consumption, I told you that this was an inventory batch. It is seasonal, it is common for us to have an inventory increase in the first quarter due to the big turnover considering the last quarter of last year. Yes, we are concerned about that. We do not have the intention that this is going to be a constant, this enhancement of working capital. We have a control of our forecasts to be able to keep up with this level and not take a toll on our efficiency in terms of working capital. It is something seasonal.
The idea is that the next two quarters are more stable, and we bat the fourth quarter with a big turnover to wrap up December 2025. The second question, considering operational efficiency in our increase of EBITDA. It is very good. Allied has, among some of its strengths, the management of delivery, as well as the monthly analysis in terms of fiscal opportunities. Allied is very connected to keeping the gross profit of its operations. Even though we are considering a hard sales scenario, we have a very intense work to keep the profitability considering negotiations, fiscal, or logistics. We focus a lot on that. We are fairly active. Also when it comes to expenses, we are monthly analyzing where. It is a rather granular analysis of how we can maximize the expenses as well as the optimizations via automation of some processes or maximization of delivery routes.
We are constantly trying to maximize our processes, try to make our operations more profitable. We want to increase the profitability of our business as a whole to ensure not only a perpetual business, something that is going to keep working like we have been around for 24 years, as well as the cash management, like it was your first question. I see that this is something very normal for this seasonality of the period, but for us, it is a priority agenda. Thank you so much.
Thank you so much. I do not see any other question. I would like to thank the presence of everyone, and I would like to say that our investors team is still on call if you have any other questions through our communication channels. I would like to thank everybody. Have a wonderful day. Thank you.
Thank you.
Have a wonderful morning, everyone.