Good morning, everyone. Welcome to Allied's video conference to present the results of the second quarter 2024. I'm Fabiana Lawant, investor relations director of the company. This event is being recorded and translated simultaneously. All participants are only hearing the conference during the presentation. Then we'll have a Q&A session. You may send your questions via the chat that you can see in the bottom part of your screen. Event declarations related to business perspectives and projections are the premises of the company subject to uncertainties and therefore may or not happen. We are here today with Silvio Stagni, CEO of the company, Thalita Basso, CFO. I pass on the floor to Silvio to start the presentation with the highlights of the quarter.
Thank you, Fabiana. Good morning, everyone. Thank you for your presence here.
Yesterday, we presented our results to the market. As we always do, in this call, we'll try and bring a little bit more details. I'll have some important points mentioned here, something that happened in the second Q. Thalita, our CFO, will give more financial details. In the end, we'll have a Q&A session. Let's start, as we always do, with the three pillars of our business. I like to remind you what are the three main pillars of Allied. Let's start on the left, digital retail, comprised first of all by Mobcom, that is our online store connected to the main platforms in Brazil and one of the main electronic sellers in all the platforms. We have dedicated programs to suppliers and exclusive partners like iPhone [Non-English content] . That is an association between Apple, Itaú, and Allied.
We have Xbox All Access, another Itaú program, this time with Microsoft. Now we manage HP Store that at this moment is in Mercado Livre. This is our digital retail. In the middle part, we have the B&M retail. We are the main Samsung partner with 115 points of sales in the main shoppings in the Southeast and Mato Grosso and Paraná. We have two points of sale with our brand, Trocafy. That is the sales of reconditioned product. Remanufacture, I'm sorry. On the right, we have distribution. This is how we started 23 years ago, being distributors of the main electronic brands in Brazil and in Latin America. We are the greatest distributor in Brazil of the main brands. In the bottom part, we can see our participation in some of the markets.
The point is that in every market we work, we have an expressive participation. Here are three examples. We have 8% of the smartphone market in Brazil, 16% of video games, and 7% of notebooks. This is Allied, the main businesses. I'll talk about the results of the second Q. Let us start with the revenue on the graph on the left of this slide. In the second Q 2024 compared to 2023, we decreased 15%. I'd like to explain a little bit of that. Well, we've had a wonderful Q in retail with a 32% of growth compared to last year. A wonderful Q in the digital retail with a 15% of growth of revenue compared to last year. What brings our drop to the top line is distribution.
The distribution in Brazil decreases 5%, this number is exactly in line with the decrease in the Brazilian market. If we consider computer sales and TVs, these are the paying electronics we sell. In this second quarter, if we compare to the second Q last year, the market also decreases 5%. We are in line with the Brazilian market, even though in the Brazilian distribution, we have an important point. In our main category that are cell phones, we grew 10%. This is a category that we bet on, we believe is important to our future. We've had good work in the second Q. We could grow 10%. The great negative impact in the quarter was our international distribution.
We had a very difficult quarter to sales in Latin America, which made our top line in total reduce 15%, I'll mention a little bit more about the international soon. In the middle graph, we have the adjusted EBT with excellent results. We've been telling you about the cash work that we've been carrying out. Last year, we generated more than BRL 800 million in cash, this cash today is translated into a lower financial cost. We have a LAIR in the second Q of BRL 37 million compared to BRL 17 million last year, which means 53% growth. If we take into account the six first months, it's BRL 53 million versus BRL 30 million, it's 65% growth. Another important point is our gross margin. Last year it was 11%, this year is 12.3% of gross margin.
Despite the drop in the top line, we've had a very healthy business. On the right, our net income, 16% compared to 18% last year. It's important to remember that this year, the way we reach to the net income is different from last year. We had till the end of 2023, the subvention of the income tax and fiscal fees coming from our tax benefit called COMPETE/ES. In 2024, the law was changed. We don't have this subvention anymore. Even though we could reach to the same level of last year. If we take into account the first six months, we have an expressive result of 34% compared to 66% this year. It's a drop in the top line, with good, healthy results when we are talking about profitability. Now, I'll mention the first pillar that is the Brazilian distribution.
Here we have the three main products that are cell phones, TVs, and computers. Just for you to have an idea about the size of market in Brazil. Cell phone, we have BRL 50 billion a year. TV, BRL 30 billion, computers, BRL 10 billion. About that. When we analyze the products we sell in the three categories, they mean that they have quite a strong participation in our sales. We decreased 5% in Brazil the market as well. It's an important point that I mentioned before, it's shown in the middle graph. In cell phones, that is the main product, we grew 10%. We could have a good supply with the three main suppliers, Samsung, Apple, Motorola, good negotiations, good commercial conditions. With that, we could grow significantly in our participation in this market.
If we consider only the cell market, it decreases 6%. When I say we grew 10% and the market is decreasing 6%, I'm talking about values. If we consider the volume, we grew 17%, and the market 2%. A category that is very important to the result today and to our future is quite significant to our results. On the next slide, we'll talk about the international distribution. That is where we suffered. We had a very complicated quarter. Due, I believe, to mainly the moves and the changes in dollar compared to the Latin America currencies, which made competition to increase or worsen. In Miami, that is where we supply to Latin America, and we've also seen a huge amount of products offered to the market. Once again, we preferred not to harm the profitability but give up the top line.
We decrease in Miami, but we keep profitability the way we had. Here we had something that is very important to our future. We started diversifying the product sold. We were focused on cell phones only. In the second quarter, we grew significantly in notebooks. 16% of sales were notebooks. That is a growth of 80% compared to last year. It's also important to our future to consider two partnerships. First of all, we were chosen by Microsoft as the distributor of Xbox to Brazil. Xbox is an important product in Brazil, and from now on, we export Xbox from the United States to the Brazilian market. Another partnership is an agreement we've had with Motorola, now we are the distributors of Motorola cell phones to Latin America. These are two new partnerships that will bring a lot of results to the future.
Now going to physical retail on the next slide. A wonderful quarter. During the last calls, we've been talking to you that we have two priorities in physical retail. That would be to increase the income per point of sale and decrease the cost. We are working on that consistently. Here we start having some of the results. How did we increase the results per point of sale, bringing more to be marketed in the points of sale? Here, I'll give some examples. First of all, our level of accessories when we sell every cell phone. I'll have a specific category that is the wearables, like watches and headphones. In the second quarter, more than 50% of the cell phones sold had also a watch or a headset sold. The second way of increasing the income per point of sale is having insurance.
Whenever a consumer enters the store, we offer the possibility of purchasing also the insurance for the cell phone. In the second quarter, more than 50% of sales had insurance altogether. Third, we are searching for other channels to sell in the store. One of the channels we identified is the small companies that can buy from the store that we call the B2B client, and 5% of the sales in this quarter come from these clients. Lastly, we are increasing the portfolio of sales in our stores, and the most impacting example here is Galaxy Book4, the new Samsung computer. We have it in our stores. It's a sales success. With that, and with our constant search for cost reduction, made us have 32% growth in the physical retail revenue. If we analyze only store sales, it was 39% growth.
When we compare 32 of growth and 39 in same-store sales with the position in the retail market in Brazil, we won't see those numbers in any other branch. The concept of attaching wearables, insurance, B2B sales, new products, is that the revenue per point of sale grew 12%. So this is quite a significant result in the physical retail in this quarter. In the digital retail, it wasn't different. 15% of growth compared to the previous year. If we analyze the digital market for the products that we work with, the market decrease is 6.5%, so it's quite an expressive result. Where does this growth come from? From our program, iPhone pra Sempre. That is still a strong program with a lot of focus in Itaú with Apple.
We grew 31% compared to last year in this program, and we keep betting a lot in good results for the future. We also count on new on the last quarter because we are now the HP Store in Mercado Livre. And here is only the second quarter we have this store, but if we compare the first and the second quarter, we already have 45% of growth compared to the previous quarter. In this business segment, we are working constantly to add value, add quality to our sales. For 12 consecutive months, our average ticketing digital retail grows, and this is the concept for the quality of sales. These are our three main business pillars, but I would like to mention Trocafy. That is one of our drives. We are betting a lot on it.
Our belief is that the remanufacture market in Brazil has a significant growth ahead. If we look the American market, it is dominated by companies where you buy a remanufacture company from a company, and Brazil still dominates the in-person sales. When you buy from Trocafy, there are some differences like the product insurance and guarantee, and you know that we have a minimum dose of charge in the battery. The product is not stolen. Our thesis is that this market will grow significantly. We just completed two years in Trocafy. Compared to last year, we basically doubled the revenue. I'd like to mention to you a little bit of our points of collection of remanufacture. The first one is iPhone pra Sempre. That allows the consumer to give the iPhone back after 22 months. We collect the products, remanufacture, and we sell via Trocafy.
Also in Samsung stores, both ours and other Samsung partners, where the consumer goes to the store, he'll be offered to sell his used cellphone, and Trocafy is the one buying. We are also in Fast Shop with the same situation. The consumer goes to the store, the salesperson offers to buy the used one, and Trocafy is doing the purchase. We do that because we sell via Trocafy website, and we also have two physical kiosks, one in Shopping Eldorado and the other one in Shopping Center Norte. We have Trocafy store in Mercado Livre, and this quarter we also started a Trocafy store in Magalu. So this is an important growth driver. Results show that it in fact may make a difference to us. On the next page, I'll talk about Soudi.
Soudi is a tool to finance to consumers that we launched in 2019 based on a Samsung technology, where we give credit to the consumer with the ability of blocking the consumer's cellphone if they didn't pay. It allowed us to give credits to more people and allowed us charge a lower interest rate. It was an important instrument, but it was launched in 2019 when we had almost 300 points of sale. From there on, with the changes in the world and basically the physical retail, we had to close some of them. We have now 117 and 417 points of sale to have an exclusive solution of credit wouldn't make sense. We would have to start searching for partners outside our stores, which would make us be a solution of credit and not an increase of sales. That was the initial reason for creating Soudi.
That's why we are discontinuing this initiative. We have some business opportunities. The solution that we created where you can give credit that is related to the cell phone as a guarantee, and it's a solution used by some Brazilian retail. We have a potential to sell this too, and we have the potential to negotiate in our portfolio, and these are decisions we'll make on the next months. We believe that keeping Soudi will somehow benefit the company. On the next slide, just to remember, besides our business, the three pillars, we have some growth drivers. First of all, the international. We had a quarter that was not good, but it's only the second year. We are now starting to have new products. We still don't work in all countries in Latin America, so it's an important growth driver.
Trocafy in the remanufacture market due to what I mentioned, and the sales to company that we call here B2B. We are still a small player on this market, but we believe that we are able to be an important player. Lastly, we will keep searching for strategic partnerships and bringing solutions to this market we work. Considering consumers, retail operators, manufacturer, and iPhone pra Sempre is a typical example. We are searching for new partnerships to bring added value like this. Just to finish our numbers. Analyzing the last 12 months, the revenue was BRL 6.5 billion with a net revenue of BRL 132 million. Every 12 months, we sell about 6.5 million products, and 60% of the products are delivered in 48 hours. It is an ability that we have developed.
We are investing on it, and today we have a level of speed and accuracy that is quite high. These were the points I had to present to you. I would just like to finish by saying that the many businesses that Allied have allows us to have some resilience in results to minimize the risks. This quarter was nothing different. We've had some businesses with wonderful results, some with a more complicated market situation. This diversity on the businesses is bringing to us a resilience on the results quarter by quarter. Thank you very much. Now pass on the floor to Thalita to see the financial details of the operation. Sorry, I think we are having some problems here. Thalita, we can't hear you. I took a while because I was checking if it was only my headset, but I believe nobody can hear you.
Can you hear me now? Okay. Thank you, Fabiana and Silvio Stagni. Good morning, everyone. Thank you for the opportunity to comment on the results of the second quarter of Allied. Let's talk a little bit about the financial result, starting with the net revenue from the left to the right, BRL 1.3 billion, a little less than the previous quarter of last year, but still a good number. With the net revenue— I'm sorry, gross revenue that was sustained about BRL 160 million. It's an important combination, and in the next slides, we'll see how it happened in the business segment.
The EBITDA of about BRL 16 million in the quarter with a net revenue capped from BRL 15 million to BRL 16 million. These are strong numbers to our segment, and I emphasize that in 2024, we had an increase in the taxation of federal taxes, as mentioned by Silvio.
That pushed a little bit more the numbers in 2024, Allied can survive despite that. Now, going to the business segment. Let's start with distribution. As mentioned, the Brazilian distribution has a drop compared to the second quarter 2023, following the market trend of about 5%. It's important to emphasize that the last quarters, we are keeping the revenue about BRL 650 million. We show resilience even with the turbulence on the market. The greatest impact was on the international distribution that is suffering with the currency exchange, not only in Brazil, but with the currencies of other emerging countries. It happened in January 2024. This oscillation on the currency exchange impacts the competition in the region, but it tends to stabilize if the currency exchange is stable, although in higher levels.
The important is to have an accommodation of the market, and we had a strong oscillation starting on April. An important point is that Allied is still close to BRL 1 billion in the distribution and the gross profit. Even with the less revenue in these two last quarters, in absolute values, it grew compared to the last two quarters. Showing that despite the impact of the international distribution being relevant to the revenue, as it has a margin for contribution that is smaller, the recovery of profitability in the Brazilian distribution could overcome and deliver more absolute value to the company this quarter versus the previous ones. Regarding physical and online retail, we have good news, as Silvio mentioned. The physical retail had same-store sales positive with 30%. Despite having less stores compared to last year, we could have a revenue that was higher.
In fact, we could sell more in our points of sale. With that, we improved a lot the profitability, excluding the points of sale that were closed. The good point is that all categories sold in the physical retail grew. Cell phones grew above the inflation, positive point. And the retake of notebooks and tablets helped a lot this moment of revenue restore. A good highlight for the second quarter is that the Q2 of 2024 was the second greatest quarter after 2019. That was before the pandemic. It has a lot to do with the success of S24 that has a good residual, not only during the launch, but they kept their sales in the second quarter of 2024. The positive point to the physical retail is that it grew 15%.
Here, besides iPhone pra Sempre, that is a program that has been here for some years. We could make profits year after year. We have a joint work of the companies that are part of the program. They could increase the seasonal shares. For example, Valentine's Day. It was successful with the program. It is somehow mature. The highlight here is that we are still starting to increase the sales of services. We bring a lot of profitability, and it's a good bet on the channel. This is a panel that we are bringing profitability, despite we have others that bring growth with a decrease in the margin. It's a panel that is growing on average compared to the quarters of about 21%, and we can keep the gross margin of about 30 points.
Looking at the whole scenario, how this combination of segments is. The positive news that we have when we look at the Brazilian markets as a whole quarter compared to quarter, Brazil could grow 2.4% on a market that decreased about 5% to 6%. It shows resilience between channels that is quite important. Recovering the Brazilian distribution, a little bit of the gross margin that is stronger to Allied in terms of shares. This is a positive point compared to the two previous quarters. It was a significant increase. In the combined, obviously, Allied has a gross margin that is better due to less expression in the international distribution. The most important here is to emphasize that every business individually is healthy. I think this is our strong point that we have with this combination.
As mentioned, the international distribution had a small drop, but with the accommodation of the currency exchange, there is a chance to increase, as mentioned, the two significant partnerships that is Microsoft and Motorola. Going to the other part of DRA. We'll talk about operational and financial expenses. A positive point here is our improving efficiency of sale and expenses, mainly in retail. That is the segment that pushed us more this kind of investment. There was a drop in the absolute value, BRL 36 compared to basically BRL 89 in the second quarter 2023, even with increase in sales in this segment. We could have gains in efficiency in the channel. General expenses and administrative expenses are constantly controlled. They're basically the same. They just grow a little due to inflation. Here we have constant care, but it's not a number that changes a lot.
In the accumulated, we had a decrease of 2.5% because it is something that is constantly being analyzed. The financial result is the main highlight. Since the second semester 2023, there was a strong strategy of managing the cash in the working capital. It's very important because the interest rate was high and is still high in Brazil. There was a small decrease, but it is still quite representative. The cash management of our cycle is very important and is one of the main drivers for us to in fact deliver the net revenue of the company. In this quarter, it's a very well-controlled expense, and in the accumulated, it's quite visible when quarter compared to quarter, it's an expense that we have data on the side. Just to conclude this part of financial results, we have our debt on the next page.
That shows that we have our gross debt that was solved in 2023. There is no big changes. We have the same structure of gross debt. We didn't have to take any money to our cash. No, it was just the opposite. It brings us a net debt and a leverage that is quite low, BRL 133 million of net debt and less than 1% leverage. In this slide, the EBITDA is quite solid over the last 12 months. It keeps the company in great levels of debt. Now going to the cash flow page. Compared to the previous quarter, we had some balance in the working capital. We could have BRL 20 million in cash generation in this quarter.
We had improvements in receivables, allowing us to bet on stocks in a strategic way, hoping for the price increase coming from the currency exchange. It's very important to the segment of distribution in this definition. The cash flow management allows us to go to the second quarter with this strategy defined. In terms of financial cash, we paid the debt of the gross debt as programmed. We have a program, a runoff of income tax of BRL 100 million that we declared the end of March, and we paid in July. There was the payment of this tax of the quarter. With that, we finished the quarter with a cash flow of BRL 420 million. That is quite a solid and important level to the company, allowing us to manage everything efficiently. I think here it is one of our greatest success since last year.
While the market is still with a high rate of interest, we cannot give up on this strong cash management to ensure the constant net profit delivery of the company. To finish, let's go to the main indicators of the company, but now with perspective, considering the evolution of the quarters. Our net revenue was the one that suffered the most this quarter compared to last year. An important point is that we kept the gross profit in absolute values in good levels, BRL 206 million is a good gross margin. That is reflected in a solid EBITDA of about BRL 60 million, also with a good profitability. Reaching the last point of net revenue of BRL 15 million, that is what we've been doing the previous quarters. Quarter per quarter with constant results coming from the business presentation, making Allied keep significant results and constant results over time.
I think that was it. I thank you all for this opportunity. Now we can go to the Q&A session. Thank you, Thalita. If you have questions, you can send via chat. I have two here. The first one I'll send to Silvio. It is from our shareholder, Luis, that congratulates us on the results and says that it was quite surprising to see our physical retail recovering. He's asking if we'll have an increase of points of sale considering the positive result.
Well, thank you, Luis. The work we are doing in the physical points of sale is a work that started when we returned from the pandemic period. The two years of the pandemic, we understood the moment was different, and the physical retail would suffer anyway. When we came back from the pandemic, we found a different consumer.
A consumer that was used to purchasing online. If we analyze the percentage of consumers buying online before and after the pandemic, in cell phones, it increased significantly. This consumer is currently more critical regarding the commercial comparison of the different channels they may use to buy. We understood the Brazilian market was not able to have the same amount of Samsung stores in our region as we had before. We decreased this number. We had 115 points of sale. We are in the main shopping malls in São Paulo, Rio, Mato Grosso do Sul, Paraná, and Minas. Despite the good results, we don't have any plans right now to expand the number of points of sale. This is a movement that we saw, not only the electronic retail, but also with clothes and many product lines.
The retails were closing their points of sale, reducing it to ensure that there was viability to work on them. At this moment, we do not intend to increase the point of sale. We keep working on that to increase even more the profitability of all of them.
Thank you, Silvio. Now the second question from a physical shareholder, Marcelo. Who thanks the presentation and asks you to talk a little bit more about the expressive growth of smartphone sales. Okay.
T hank you, Marcelo. Of all segments we sell, smartphones are the most important category in terms of volume of income. As I mentioned during the presentation, we have about BRL 60 million every year. It's a market that has suffered last year with a decrease of 9%, is suffering this year with a 5%-6% decrease, but we believe this market has a lot of potential to grow.
We are watching every day everywhere that AI is taking place, and we're starting AI reaching the cell phones. Samsung in the last launches is bringing simultaneous translation, so you can talk like Chinese in Portuguese, and it is immediately translated. It is a gadget of AI, and Apple said that they have new partnerships and in the next launches, there will also be differentiated app gadgets and functions, and we believe it will foster the market significantly. Despite the size of the cell phone market, we believe it has a huge potential to grow. To us, it is important that in this segment, we have a wonderful performance. In this quarter, we have three suppliers of cell phones, that is Samsung, Motorola, and Apple. In this quarter, we have good negotiations with the three manufacturers.
We could grow our participation in the three manufacturers, consequently grow our participation on the market. It's not limited to distribution. We mentioned distribution, but I want to say that at the end of the day is a cell sale has also grown significantly. We do that being assertive in the offers, ensuring our clients to have always the best quality care, that all APIs are at a wonderful level. Everything made the clients more loyal with more sales and a stronger partnership with the three big cell manufacturers.
Okay, Silvio. Thank you very much. Well, we don't have any other questions, only these two. I'd like to thank you all for your participation. Once again, the IR is available to you, so if you have questions, doubts, if you want to talk more about the strategy of the company, IR is available to you.
Thank you very much, and we'll see you on the next call.