Good morning, everyone, and welcome to Allied Tecnologia Conference regarding the results of the first part of 2024. This video conference is being recorded, and the replay may be accessed on the website of the company, ri.alliedbrasil.com.br. The presentations in English and Portuguese are both available for download at the platform.
We inform you that all participants will be only watching the video call during the presentation. We will have some Q&A session. To make a question, simply send it via the Q&A icon with your name and, if necessary, the company. We inform the presentation is being recorded and translated simultaneously. The translation will be available clicking the interpretation button on the platform. For those hearing in English, you can choose to mute the original audio and hear Portuguese.
Before going on, I reinforce that the prospective declarations are based on the beliefs and exposure of Allied and the information currently available to the company. These declarations may involve risks and uncertainties considering they are regarding future events, therefore, they may or not happen. Investors, analysts, and journalists may take into consideration that events related to the macroeconomic events and other factors may make the results to be materially regardless in the prospective relations. I am Fabiana Lawant, I'm the Director of Relations with Investors in the company, and I have Silvio Stagni , CEO, and Thalita Basso, CFO. I pass on the floor to Silvio, who will start the presentation.
Thank you, Fabiana. Good morning, everyone. Thank you for your presence here. Our goal here today is to have some more information regarding the first quarter that we presented to the market yesterday. Our sequence today, I'll start with some qualitative highlight of the first quarter, then Thalita, our CFO, will talk about the financial details of our results.
As usual, I like to start by reminding you of the three business pillars of Allied. I'll start on the right with our distribution. That was when the company started 20 years ago. That is also a significant part of our income. We are still the greatest distributor of electronics in Brazil. The news here is that we are distributor of JBL, that is quite a known brand in Brazil, quite well accepted by Brazilian market, and is now one of the brands in our distribution portfolio. The main pillar is the physical one with 118 points of sales, 116 Samsung and two Trocafy. That is our brand working in the remanufactured products.
The pillar on the left is the digital retail with our store, Mobcom, that is today in the main platforms of Brazil, like Amazon, Mercado Livre, and Magazine Luiza, and other online partnerships. The oldest one is iPhone Forever, iPhone Pra Sempre. That is a sales program for iPhone within the Itaú Bank app. We also have Xbox All Access, where we sell Xbox with services in Itaú.
Recently we announced that we are HP online for Brazil. In all categories we work on the market, we have a specific market share. Here we have three examples. In smartphones, we have 80% of the Brazilian market. In video games, 22% of the Brazilian market. In notebooks, 9% of the Brazilian market. Looking at the result of the first quarter, our revenue grew 4%, and here I would like to give some background.
The electronic Brazilian market, if we analyze cell phones, that is the main category or the greatest one, has dropped in the first quarter 8%. We grew 4% on a market that has dropped. First, our international expansion. Allied Miami is growing in the first quarter compared to last year, 37%. The second big driver of growth of this quarter is our physical retail. We grew in the first quarter 12% compared to last year. It made us have a 14% positive considering that the market is suffering with the decrease of sales, mainly of cell phones. These are very impressive results. I'll go into more details, but I would like to emphasize that the fact of us having this diversity of business models makes us to bring the resilience of results.
At some point, the physical retail is strong, like the first quarter this year. At some moment, the online is the strong one. All factors together will allow us to bring a required result, a resilient result. On the right, our profit. Compared to last year, we grew more than three times. Here, I'd like to go deeper in this number. Last year, we had some strong work in cash generation. We generated BRL 800 million. This cash generated now allows us now to distribute part of them to our shareholders. Over the last 12 months, we announced that BRL 190 million to be distributed to our shareholders, our revenue would be one of the greatest in the Brazilian market. Here's also a positive consequence on profit. JCP that was paid in the first quarter brings us a net profit of BRL 34 million.
Out of the BRL 50 million that we see in the first quarter, BRL 34 million came as a consequence of our interest of capital, where we could compare BRL 16 million last year with BRL 16 million this year, but I would like to have a caveat here. Last year, the legislation was different from this year. We had subvention on the income tax and fiscal things. We don't have it anymore this year.
Our profit this year could compensate the drop of this subvention. In a theoretical consideration, if we had that this year, our profit would be BRL 26 million plus BRL 44 million on the profit on capital. We are quite satisfied with our profitability in this first quarter. Now I'll go into each one of the pillars of business. First of all, the distribution. As I mentioned, it was an important growth driver. In our international distribution, we grew 37%.
Here, when we analyze our international distribution, we are still in the beginning of this business line. We only work in two countries in Latin America. We have many others to expand. We still have a product line that is quite limited. We still have a lot of space to increase the product line that we sell with Allied Miami. We believe that this growth driver will still be significant in the next quarter. When we see distribution in Brazil, we decreased 8%. The distribution in Brazil follows what happened to the Brazilian market. The cell market in Brazil decreased 8%. I'm always talking about this. That is the greatest one among the electronic. The distribution in Brazil follows this decrease of the market. We believe that this market will recover during the year.
There are many technological innovations coming. We believe it will foster the sales to the market and foster the demand by the consumer. We go to the second pillar, our physical retail, that is our second growth driver. The physical retail, we have 116 Samsung stores and two Trocafy one. In the Samsung store, we have two important moments in the year. That is the moment to launch the new Galaxy line, and the moment to launch the new foldable product that can impact significantly the market. In the fourth quarter, we launched Galaxy S24, bringing many innovations, among with apps for artificial intelligence. It was a successful launch for Samsung. Here, I can tell you that Allied had a participation above market participation. Samsung has today 250, 300 stores, 150 belongs to us.
We analyze the three greatest in sales, they are the ones in Shopping Morumbi, Shopping Eldorado, and Ribeirão Preto. It had a commercial strategy that was quite aggressive. First, in line with Samsung, we brought a trading program. You brought your used equipment, we would value until BRL 3,000. We would have bundles with watches and ear sets with a discount. The third aggressive strategy was reserved now in the pre-sales that they would pay something that would have a greater amount of discount when purchasing the smartphone. That, in line with the sales team that is well trained with a balanced stock and our force made us have 40% of S24 sales in all the stores, Samsung stores. It happened with an average ticket that was 20% greater than last year.
This is a significant result that drove us to growth and this 14% positive. I would like to remind you that in the physical stores, we are still focusing in two areas. First, the increase of the net revenue per point of sale. In the first quarter now, we grew 9% more in the revenue per point of sale. The second focus is the reduction in the cost per point of sale. In the first quarter, we reduced three points more compared to last year. We compare to 2021, we reduced 26% in the cost in each one of the point of sales. Less cost, more revenue in the point of sale. A commercial strategy that is a blessing. A sales team well-trained with a balanced stock will make us bring more and more better results in our physical retail.
Second part of our retail is the online one. Here it dropped in the first quarter 7.8%. Again, it follows the market. I would like to emphasize one point. One of the programs that we have in the digital retail is iPhone Para Sempre, and we are learning more and more to make iPhone Para Sempre to be one of the main channels of iPhone in Brazil.
Last quarter, we told you about iPhone Day. That is some follow-up that we had some days before the launch of the new iPhone. That was the greatest iPhone Day in history. This quarter, in March, we had the consumer month. We had a lot of growth with sales in line with Itaú and Apple, making the month of March have the best revenue in our history.
Here we are having an intense agenda on sales and promotions to foster the sales in a constant way, and we'll keep doing that during the year. Besides the three business pillars in the services that we are focusing, we have first the Trocafy, our sales team with a remanufactured phone, and we believe this remanufactured market in Brazil will increase significantly. We keep increasing the point of collection. We have 210 Samsung stores in the country with the Trocafy program. You enter the Samsung store, not only ours, but also our partners, and we purchase your cell phone via Trocafy. The news is that in this quarter, we started having Trocafy also in the Fasts hop store. When you enter Fasts hop store, you exchange your cell phone to a new one. Trocafy will be purchasing the phone.
On the other hand, we'll also increase the points of sale. We now have two physical stores, one in Shopping Eldorado and another one in Center Norte. We are in the online market in Mercado Livre and Livelo. With that, we grow every day in sales and results of Trocafy. The second service, Soudi, that is our financial market to fund the consumer with the technology of Samsung embedded with Knox Guard. Here we have 367 points of sale.
Basically, all Samsung stores in Brazil offer today the Soudi. Besides, there are many operator stores, 177 operator stores in this point, offering funding via Soudi. The news of the quarter is that we have a partnership with the CI stores, and today in the program [inaudible] .
The technology in the program is the technology that we licensed with the 4G, it shows that a funding solution that is not only proper to our stores, but also to retail partners. We have BRL 66 million in our budget. Our number, to summarize, BRL 6.8 billion of net income, gross income, BRL 243 million in EBITDA, and BRL 134 million in net profit, 118 points of sale. We sold BRL 8.6 billion of products, most of them were delivered up to 48 hours with the specific marketing in all categories we work.
To finish, just to emphasize our drivers of growth, some of them we have mentioned here. Our international expansion. We have geographical sales in the portfolio of products, a lot of growth. Trocafy, we believe that the remanufacture market is growing in Brazil. Soudi, our tool for fund consumers also.
We also have a corporate distribution that is the sales to companies. We are still small in this area, but we are investing a lot to grow. We'll keep searching for innovative solutions for this ecosystem that we live in, retail operators, manufacturers, and consumers. That's what I have to tell you. Now I'll ask Thalita to go into the details of our financial results.
Perfect. Good morning. Thank you all for being here with us to review the results of Allied. I'll start with the growth of 4% of the revenue compared to 2023 based on the diversification of business of Allied. That can generate creation in its local, even in the local market, mainly smartphones and cell phones decreasing 8%.
Our gross EBITDA is close to BRL 60 million with a profitability above 4%, with a small drop compared to 2022 that was quite affected by the pandemic boom, and compared to 2023 with the mix of results that will follow later on. Our gross profit is about 12% with no deterioration of a specific business, but in a composition of performance. The adjusted net profit, as you've mentioned, has good news like the distribution and the declaration of distribution in an additional way, coming from previous budget anchored in good management of cash flow in 2023, as well as the additional result to compensate the loss of Subvenção. In the general results, as you've mentioned, we've had two big businesses helping the growth.
That is international distribution and the speed up of the physical retail that was important this year in Brazil, where physical distribution follows the trend of the local market. With a decrease of 80%, we are stable, emphasizing that the Brazilian distribution in 2023 just concentrated in a big retail player in Brazil, and it tends to come back in 2024. There is a good perspective in this sense. It's important to emphasize here the profitability, the gross profit per business unit that is flat and up. We had a Brazilian distribution with a recovery compared to the previous quarter, and the composition makes it to be close to 12%, a business that has a little less of gross profit, but with less operational expenses. Both international distribution and physical retail brought more EBITDA in the absolute and percentage ways in this quarter. Now going deeper into distribution.
The international distribution, it is somehow more stable than the beginning of 2023. The trend, as you've mentioned, is to be a growth leverage inside the portfolio, where they include both manufacturers or clients. There are good perspectives for 2024. The Brazilian distribution has also good stabilization. Partnerships with our big manufacturers trying to find solutions to market oscillation. We had some mixed things due to the business and partnerships. Video game is an important point that due to new partnerships, could increase the revenue in this first quarter. In retail, the highlight here that I would like to go deeper is the physical retail. With our strategy of 2023 of having smaller points of sales in which there was no big opportunity to grow the revenue due to the flow, and many points were secondary in the region.
We had to focus on the effectiveness of these points versus the profitability so that it would generate an increase in sales on the whole with the gross profit. More profitability of each point with the controlled expenses. I think this point was very good. We were successful when, as you've mentioned, with a lot of effort. Despite the performance was better, there was additional effort to search for promotion sales and experience to come to our stores to purchase the new launches. Here, I believe we had good leverages and solid ones created to the B&R business to grow in 2024. Our digital retail is following the market as well, also focusing on growth of both profitability. In the first quarter, we had a good balance between sales and profitability.
The expectation is that we keep analyzing this business in the next quarters also to adjust the equation the best way possible following the market. Another highlight in retail is the mix, because we could increase the sales of cell phones and also increase the sales of notebooks. Very important to increase the revenue of the stores, therefore increase the profitability of each point of sale. Operational profitability, I think I had two big movements over time that therefore generate results here in the first half of 2024 compared to the first quarter of 2023. One is the review of the points of sale with low performance, low flow, consequently generating a better management and reduction of expenses with the sales before the occupation.
The other one was the restructuring of the back office in June 2023, generating results in the second half of 2023 and compare with the first quarter of 2023, it generated an additional reduction on the next quarter if we can compare. The general profitability, our EBITDA reflects the mix of what was sold. We had an increasing performance of our international distribution and physical retail, which generated in absolute a smaller EBITDA than the first quarter of 2023. Even though with the businesses in a strong way and profitable, I think the important point here is the recovery of the Brazilian distribution. That was a point of concern last quarter. Here we have all the businesses in place, and the use of expenses that is a constant exercise in Allied.
In all the reviews and analysis, there is always a perspective of optimization and automation and improvement, so that there is a gain in scale and a better performance both in expenses and performances. Our management of operational cash flow, that was quite strong in 2023 and will be there in 2024, made us to spend much less with working capital, so there was no increase for the operation, which generated a significant economy of financial expenses and also the additional distribution with the anticipated payment of 2023 that is compared to installments that were all paid in March 2024, and the declaration of additional distribution.
The trend is that in 2024, we would have a good management of this money, focusing on leveraging the businesses. It will change as we will discuss and any other thing to foster our businesses, but it will keep being a good leverage, this working capital for the company. Also in profitability. Positive effects that were mentioned is the positive impact of the JCP declaration generating a tax gain of BRL 34 million that was collected according to the legislation, also the compensation at the end of the divestment that made us to search for better result, the grant, I'm sorry, to keep the profit for this quarter. I think in general, we've been discussing all topics. Let's talk about debt and cash flow. The debt of Allied followed the profile that was mentioned in the fourth quarter.
We elongated our structured debts last year, the end of the last year, which gives us some financial relief for investments and to increase the company with the proper and adequate costs to the market. As mentioned, we didn't have any additional debt for the working capital that is now established, and our level of debt is still low, less than one time our EBITDA, and the trend is that this profile will keep in 2024 without any surprises. Regarding the cash flow, we had a cash consumption that was special of BRL 9 million, paying the JCP, as mentioned, but we still have BRL 400 million in cash. That is a healthy amount for Allied operation. The point to emphasize here is that the working capital had BRL 50 million consumption this quarter.
That is expected for this quarter because we paid the debt that we had in the fourth quarter, and we are receiving from March and April the sales that we had in the end of the quarter. Here we also have the cash in line with the expectations and the projections for 2024. I think with that, we covered the financial part in special. We are now open for questions and doubts about a specific topic.
Thank you. I'll start the Q&A session with the first question that come from Marco from XP. He has two questions. Well, good morning. Thank you for answering my question. I would like to talk more about the slight increase in the leverage, and I'll pass back to Thalita, and I would like to understand more about the debt looking to the future.
I suggest we start with the second part of the questions with Silvio answering. If he could comment a little in the international operations in the next quarters with the opportunities to keep growing.
Well, thank you. Our international expansion basically has some initiative that we had in 2022. We tested some models. I would say that Allied Miami started working in 2023. We were positively surprised by the amount of sales and the growth we had, as fast as it was. We are still far from having in Allied Miami all the opportunities we have. I would like to emphasize two. The first one is your geographic expansion. We now work in 16 countries in Latin America, and we have all the other countries to work.
This is the first point, and here I would like to emphasize that when we sell a product that, for example, has representation in Brazil. A real example, Apple. We sell Apple in Miami, but Apple is present in Brazil with manufacturing in Brazil. In these cases, we don't sell to the Brazilian market. We sell to the countries where there is no manufacturer, where Apple has no direct import. It happens to all brands. We have 16 countries, and we didn't bring any product to Brazil. In 2023, we had only three product line, Motorola, Google, and Apple.
If we analyze our ability of expansion in Brazil with the product lines that we have in Brazil, in the end, we would have ability to take these products to Allied Miami to sell to the countries that are supplied by the international market or bring new imported products to supply the Brazilian market. We have a strong geographic expansion, and we have a strong product line expansion as well.
Good morning, Marco. Thank you for your question regarding the leverage and the cash strategy. Our distribution of JCP to the shareholders as a payment was intentional. We started the year with a big push, BRL 500 million. That is enough to run the business as mentioned. Our strict debt and the long debt is in line with the need of today, generating this ability to have specific investment.
I think an important point here is that Allied has to analyze the debt both compared to the growth and potential businesses. Allied has this targeted instrument in case there is one business or the other to speed up, and it will go according to the size of the growth and the investment. At first, the idea is to keep a low level of debt as we are. Yeah, we can have some oscillations in order to foster the businesses that are expanding, so that Allied can keep the pace of growth and diversification. I think this would be the scenario as a whole here.
Okay, thank you. Thalita, I'll go to the next question from Renan Sartorio from Bradesco. I'll pass this one to you. The physical retail was strong in the first quarter. I would like to know if it was more than all due to the new Galaxy launch, or you see a recovery as well in the first quarters of the second quarter. In the digital, what would be the changes to happen so that we start seeing some recovery? Would it be something related to the credit availability of the clients?
Thank you, Renan. Let me try to cover the points that you mentioned here. The first quarter was quite strong in the physical stores, globally due to the launch of Galaxy S24, Samsung. I'm talking about Samsung because these are our stores. They have two strong moments in the year. That is the launch of S24 and the launch of the new foldable, the Flip and the Fold. We don't have dates. Samsung has not decided the date for that.
If we analyze during the year, I would say that the first quarter has the strength of launching S24 that is successful worldwide. We had a high-performance year, but the whole world was well in S24. The second quarter is generally good because mainly of Mother's Day. This is an important moment for sales and promotion. Mother's Day, this would be the second-best date for Brazil. Black Friday is the first one, the second is Christmas and Mother's Day. We would have a second quarter, even though without launches, but it will be strongly due to Mother's Day. The same happens in the fourth quarter because we have Black Friday and Christmas. At some point, without a specific date, we would have the launch of Flip and Fold. It means that those stores are better?
Well, I think so, especially, of course, because it is clear the work of Samsung stores in the Brazilian market. This is the place where you can purchase and experience the whole Samsung ecosystem. Not only cell phones, but cell phones, watches, or headsets of every kind. This is the place that as a Samsung consumer, you have the complete solution and the complete experience. Samsung is here with the strategy and it's getting stronger and stronger. When we see the fourth quarter, we had the accessories sales greater than we've ever had. It means that the consumer understand that there is the place to purchase the Samsung ecosystem. That with the initiatives that we have on our side, that is decrease cost, increase the revenue, and intense training of sales people and balance the stock.
We are in a much better place than we were in the last two years in the physical retail. In digital retail, the digital retail has suffered basically with the drop of the market. Here, this is my interpretation, my guess, but I believe we have the reasons for the market to grow again. First, what impacts a lot the market is the cost of money. As money is more expensive, the installments of paying the cell phone is more expensive or retail sells less. In the end of the day, you have more variance to the consumer. We see despite the news of the last three weeks, but we see a constant drop in the interest rate in Brazil to foster the market. There is a second point. What moves the electronic market, what makes the consumer to buy again, is the technological news.
Everybody's talking about artificial intelligence, but it's coming to our market in a strong way. Galaxy S24, if you don't know, it has this feature of calling a friend in China and speak Portuguese, and he understands Chinese and vice versa. The experience with AI is becoming feasible to the client. This year, at some point in June or July, Microsoft will officially launch the Copilot. That is the artificial intelligence system that is much more robust than we've seen. You may have presentations or writing mails or many things that will naturally have an exchange in the computers. The point is to have the proper computer to use all the features of Copilot and artificial intelligence. There are important technological changes that will make the market grow again, and it will impact directly the digital world.
Thank you, [Renan]. Now we have a question from Luis, our shareholder. He is asking the agenda of distribution that we presented of 8.5% in line with last year, but a little below what we have in other quarters. He's asking, Thalita, what we expect from the distribution market in Brazil.
Okay. Hi, Luis. Thank you for the question. Let's talk a little bit more about this important strategy for Allied. The distribution in Brazil has a special role here regarding the credits and gaps of supply. Allied, with all the years of experience, is always aware to enter and to take this kind of opportunities. What is the big strategy and intelligence used here? A balance between the growth margin and the working capital.
Our deadline of receivables, that is very important, the interest rate that it was high, although decreasing, and the bank is restrictive. There is a balance between a discount in the gross margin to cover potential risks or even to increase the limits of clients who have more sales. Here we have important clients with a strategy, strengthening the line that generates a little of this trade-off between the cost line and the profitability line. What I see for 2024 and what I understand is that a drop in rate that will happen during the year, maybe in a slower pace, but even though strongly, with that will tend to balance better the gross profit and the working capital. Well, the drop in short term will be better to our client with a greater offer of credit to the market. I believe this trend for 2024 will improve this equation.
Thank you, Thalita. We have one more question. If you have more questions, thank you. Send in the Q&A tool. We have only one more question from Fernando, our shareholder. This is Ruju, who is questioning the development of new categories. Allied, this last year, did not bet on diversification of new categories. Will this be the scenario for 2024, or is it the moment to spread the diversification of our portfolio?
Hello. Thank you for the question. As distributors of [electronic], we define our mission as taking the digital universe to everyone. Why are we there? We are there to make all atomic solutions and digital products available everywhere in the Brazilian market and now in the Latin American market. We are always open to bring new categories.
We've had some break in the increase of this product line over the two or three years due to the increase of the capital cost, because bringing a new product line demands initial investments in stock. The year goes lower, and you have to prepare the sales team, and you have to open the communication channel, then the retails that we say, but sometimes we have different points of control, so it demands some investment. Over the last two or three years, as the capital cost increased a lot, we closed the spread of the product line. We are now looking at the market again as the situation of capital cost is changing. JBL, that is the category that we've introduced now, from the fourth quarter and the first volume, it is the first of the initiative.
We'll keep searching for brands wanting to invest in Brazil, and have some appeal for the Brazilian consumer. Our strategy is to keep spreading that. We are just in a slower pace now because we are waiting for the capital cost to be lower for the investments to be more profitable.
Thank you, Silvio. We have some more questions coming. One is quite related to the question of Anna about the progression of the physical retail. The question is, considering the positive result of physical retail in the fourth quarter, there is the expectation of grow again in point of sale. Is it possible? Silvio, you answer.
Okay, thank you. Well, this is not our priority to start or increasing the points of sale at this moment. Our priority is to bring the profitability to the points of sale we already have.
Our wide commitment to the shareholders is to always search for profitability in all business and work fast whenever there is a change in the business scenario. The market has changed from the pre- and post-pandemic scenarios. Before the pandemic, 25% of the consumers would purchase cell phones online. After the pandemic, 40% purchase online. The amount of people going to point of sale decreased. Consequently, we decreased our points of sale. We've had more than the 118 that we have today. In fact, this is an effect that you've seen in all the Brazilian market. All retails decreased their points of sale because the Brazilian consumers more used and comfortable will purchase online as well. There was a migration of all the sales from physical to online. In our physical retail, the focus is profitability in the 118 points of sale that we have.
Okay, Silvio. Thank you. Now a question from Danielle to Thalita. What is the reason for the small reduction in the receivables row comparing the first quarter of 2024 and the last one of 2023? Good morning, Danielle.
Thank you for the question. This slight decrease is related to the balance of our credit model, and the profile of client that is in our portfolio. It was the moment adjustment. The trend now is to strengthen that. Besides the new businesses that we are having to grow services, that is a great indicator to Allied, both for growing the revenue and basically having no risk. There is this diversification. Another point that we are searching for is predicted that is in the advance of agenda. We'll mention more at the next meeting. There is this preparation and concentration of our area in 4G.
Both it will be stronger with this model in [Fujikin], and to effectively structure the solution. In fact, it is something momentaneous within changes in the profile of revenue now, starting by the end of March. Thank you.
Thank you, Thalita. Just to reinforce, we have 10 more minutes. If you have any other question, please send to the chat. I have one question here from Andrea. That is to Silvio. He's asking how is the evolution of Allied Empresas, if they are bringing the expected result?
Good morning, Andrea. Thank you for the question. Allied Empresas is still one of our priorities of growth. Why are we focusing on it as a priority? Because we have synergy with the distribution business to the physical retail.
When we look at [Hardware] , we have the same suppliers, the same computers of Lenovo, Acer, Samsung cell phones or notebooks, Apple cell phones, iMacs. All these products that we purchase to retail are also products adequate to the corporate market. There comes our synergy. We have purchase power, we know the suppliers. For a while, we've been creating sale channels to companies. We have today an area dedicated to the government. We have a team that is dedicated only to biddings. We are growing in this sense. This is a year that the government has a volume of purchase with our products greater than last year, which is positive. We are increasing the products and services we offer to the companies.
One example of that we had last quarter, was the agreement that we had with Acer, when we started entering the rental market for Acer computers. We have this Acer Allied Association. One of the products we offer to the Brazilian market now is the computer rental from this brand. This is a journey. We believe we have the ability to have cash, we have the knowledge, the purchase power, and we are dealing with the abilities needed to be successful in selling to the corporate market. Our daily life is improving in terms of results. We are increasing product, services, and we bet it will be more and more important to our results.
Thank you, Silvio. I think we could address all the questions. If you have any other questions after we finish the call, HR is available to respond about it via the email of alliedbrasil.com.br. Thus, we may finish the webcasting here. We'd like to thank you for your presence in this result disclosure. Thank you very much.