Good morning, everyone. Welcome to the Allied Tecnologia conference to present the results of the third quarter 2023. I'm Fabiana Lawant. I'm the Manager of Investor Relations of the company. I inform you that the event is being recorded and simultaneously translated. All participants can only hear the conference. We'll have a Q and A session. You can send questions via chat that is available on screen at the video conference. Eventual declarations regarding the business perspectives and projections refer to the beliefs and premises of the company subject to uncertainties, and therefore can happen or not. We are here today with Silvio Stagni, CEO of the company, and Gustavo Antunes, CFO, and IR Director. I pass on the floor to Silvio, who will show the results of the quarter.
Good morning, everyone. Welcome to our result presentation. Thank you very much for your participation.
In the agenda today, I'll go through some highlights of the third quarter, the results, and Gustavo, our CFO, will talk about the financial indicators. The goal is to bring a little bit more information to the results that we presented yesterday to the market. Lastly, as Fabiana mentioned, we'll be answering the questions that will come. I'll start with the highlights of the quarter, and I like to start my presentation by reminding you of the three business pillars. The first one, digital retail. We were an important participant on the online market. We participated with our brand, Mobcom. This Mobcom store is connected to the main marketplaces in Brazil, but also we managed online stores to many partners, Google and Apple, that you've seen in other presentations, but now HP as well. In the marketplaces, we manage stores through these places.
In the digital retail, we have the iPhone pra Sempre program, a partnership of Itaú, Apple, and Allied, and also the Xbox All Access, a partnership of Itaú, Allied, and Microsoft. In physical retail, we have now 126 points of sale. We'll detail in the next pages. 125 with the Samsung brand. We are the greatest partner of Samsung in stores in Brazil, and we have the first Trocafy point of sale. That is our first one in refurbished products. Lastly, the redistribution market with a lot of active clients. We distribute the main electronic brands in Brazil. This year, in a stronger way, we started distributing to Latin America with the creation of Allied Miami. In all categories that we participate, we have a significant market share. We have examples here in the smartphone market.
We have 11% of the market in video games, 27% of the Brazilian market, and in notebooks, 7% of the Brazilian market. Let's see our numbers. First of all, our budget. We increased 35% in the third quarter when compared to the same quarter of the previous year, 17.5% if we compare the nine months of 2023 and the same months in 2022. I would like to give some background to these numbers. The electronics market in Brazil in 2023 is not in a good moment. I'll give you some data. If we get the smartphone market, for example, in terms of electronics, it is the greatest market. It's a 45 million market. It is a market that is decreasing 10%. It's been a while since the smartphone market decreased, and this year it's decreasing 10%. TV market is decreasing 7%, notebooks 13% decrease.
This is a hard year for the electronic market for many reasons, the macroeconomic reasons, the costs of fundings that are very high, and the electronic items in Brazil are greatly funded by the consumers. Despite this drop on the market and the difficult moment of the electronic market, we can grow year compared to year 30%, and in the accumulated 17.5%. We are quite proud of achieving this result. In the middle, we have the net profit. We've had BRL 20 million profit in the third quarter 2023, and this is twice the profit that we've had in the third quarter of 2022. Despite the difficult market, we kept the last line and brought profitability again. A good part of this profitability comes from the discipline that we've had in the cash generation. This year, the accumulator is BRL 505 million in cash.
We got that with the lower level of stock without impacting anything, with the best management of our receivables. Renegotiations with our suppliers with better payment conditions. The cash generation, if we look the debt of the company and if we analyze the pro forma and net debt, we see 1x as a level. This is one of the lowest level in the market, and we are quite happy about the level of debt of the company. How can we reach these numbers? First, I would like to talk about distribution. On the left, the quarter. We've grown from BRL 801 million last year to BRL 1.267 billion this year. As you can see in the bars, it's an expressive growth in our international area in Allied Miami. We have BRL 518 million in the third quarter.
If we look at the year, it is BRL 1.4 billion coming from Allied Miami. Recently, we issued a relevant fact saying that our international operation this year would be from BRL 1.6 billion and BRL 2 billion in income, and we are about to get this. Allied Miami is very important because we are growing a lot. Regarding 2022, it was an embryo operation. In 2023, we in fact focused on this side of the business. On the third quarter, I would like to emphasize our results in the Brazilian distribution. We've grown from BRL 720 million to BRL 749 million, 4% growth on the market that only smartphones is decreasing 10%, it's a very good result compared to the situation of the market. On the bottom part of the screen, we can see the profitability, the profit margin.
The Miami operation is an operation of 2% of gross margin. 2.2% was accumulated this year. This is the margin of this business. In the Brazilian distribution, we've been repeating that our margin in Brazil is from 9.9%-10.5% in distribution, and if you look here in the accumulator of the year, 9.8% of gross margin. We are according to the parameters. A difficult year, but we will deliver the levels of profitability that we committed to. The greater participation of Miami ends up bringing up a lower margin. We have to emphasize two points. First of all, that the sales in Miami is additional. We are not competing to the distribution in Brazil. Despite Miami being a lower gross margin and decreasing the total percentage, nominally, we increase our mass in sales.
The second point to emphasize is that one of our strategies is to have many businesses to ensure the resilience of results and minimize the risks of not delivering what we committed. In Miami, it helps us in the resilience of our results. It is an important point, and it was an important point of growth to us. As I mentioned, it is basically the first year that we are operating this way. After the distribution, I would like to mention our physical retail. The physical retail is facing a moment of being rethought at national level. First, the occupation cost has grown a lot in Brazil. All our stores and stands are in shopping malls. The costs have grown since the pandemic. Secondly, the pandemic has changed the behavior of the Brazilian consumer. Before it, 25% of Brazilians would buy an online cell phone.
After the pandemic, it is 40% of the Brazilians buying online when they need a cell phone. We changed the behavior of the consumer. Specifically this year, we have a more complicated macroeconomic situation with a very high price of the cell phones. They are generally sold in six to 12 installments, the cost increased. All that made the physical stores to be rethought, we have been working a lot. This quarter, we decreased a little our points of sale from 131 to 126, we have been strongly working at the optimization of our process of the store and reducing all costs possible. We have been working with the shopping malls to reduce occupational costs. We are working in the reduction of the level of salespeople in points of sales, we are working in all costs that impact the store. What is the result?
On the upper left, you can see that this is the average revenue in point of sale. We grow to BRL 303,000, we make the stores more possible. In the lower left, the impact of all the cost reductions and process optimizations, as I mentioned. We reduced 20 percentile points regarding the expenses in comparison to the revenues. We make this physical store business a successful business. If we look at the total of revenues in the third quarter, we have BRL 1.5 billion. That is the best third quarter in the history. In this BRL 1.3 billion, if we consider the three pillars in the distribution, BRL 1.267 billion, we like to compare with 2019, that is the pre-pandemic year. If we analyze that, it is a growth of almost two times compared to 2019.
In the physical retail, if we compare also with 2019, we decrease, but we are working always to bring profitability. In the digital retail, I would like to have two points of view here. Regarding 2019, we doubled, regarding last year, we have been decreasing. The online market is quite competitive. Some retailers are quite aggressive, it made us decrease because we did not give up on our profitability. We did not decide that it would be to reduce the digital retail, but we still deliver a positive result. Lastly, I would like to talk about our growth drivers. The first one, Trocafy, the remanufactured market. Our idea is that the remanufactured market in Brazil will grow significantly in the next years.
It's quite smaller than the American market in percentage terms, the impact of an electronic in the profile of a Brazilian consumer is much higher than an American consumer, we'll grow. We created Trocafy. Trocafy was created last May, it's now celebrating its first year of operation, we've been strengthening and focusing this operation, first by increasing the points of collection of used telephones. Our main source is iPhone pra Sempre, iPhone Forever, that after 21 months, the consumer can give his iPhone back and get another one. This is a way of collecting used products, we are also collecting in all Samsung stores. If you purchase a new Galaxy at a Samsung store, we purchase your used phone, it will be sent to Trocafy to be remanufactured and sent to the market once again. We've been strengthening our sales channels.
The initial one would be trocafy.com.br with one T. Trocafy.com.br is now in the 3P in the Livelo market, we opened the first point of sale in Shopping Eldorado. We have the reconditioned market and a growth driver. We are betting on that it grows. Our second driver is the corporate distribution market, here we created Allied Empresas, where our partners, our pre-sales can access to quote the products and increase the capacity to relate with them. We are bringing to this business our portfolio of more products and more services to become a more complete corporate distributor. We have something new. We have a partnership with HP, we'll be responsible for the sales of the corporate products in the HP website.
Lastly, the last driver in the page, our instrumental funding to the consumer, Soudi, with more than 100,000 cards issued in our Samsung stores. It represents 10% of sales, we are expanding Soudi to more than our Samsung stores. We are in 333 points of sales. We have the Soudi solution in other Samsung partners and in many operator stores. It starts becoming a relevant tool for the consumer funding in the electronic market. Lastly, a summary of our figures. These are the last 12 months. We have BRL 6.8 billion of gross revenue with BRL 267 million EBITDA, BRL 78 million in net profit, 126 points of sale. We've been working in the quality of our services, now we reached 62% of the deliveries in up to 48 hours.
6.7 million products sold in 12 months, smart shares, smartphones, we have 11% of the Brazilian market, video games 27%, notebooks 7%. This is a summary of the third quarter. Now I'll ask Gustavo to detail a little bit more of our operational and financial indicators.
Okay. Thank you, Silvio. Good morning, everyone. Well, on the first page, we see the revenue and the EBITDA and the net profit of the company. Before going to the numbers, as Silvio presented, our company is one that takes products and services of consumer electronics to companies and consumers in Brazil, more recently, in Latin America. Our importance here is to be partners of the main retailers and the main global brands, attending the consumers and the Brazilian retailers, also in Latin America.
We could surf a big wave and make use of the opportunities of the COVID period, and I think these nine months and the third quarter are good reflects. The company reorganized, restructured. In the post-COVID world in which the participation of online sales was greater, the physical retail changed, and our clients in Brazil also changed. We've lived since the second semester of last year, the end of the boom, a little bit of a hangover, let's say. Some of our businesses, we needed to stop and be more assertive, but we also generated new business opportunities. We reached the third quarter of 2023, as Silvio mentioned, with the best third quarter in level of sales in the company, and 100% of growth in net profit compared to the third quarter of last year.
We'll go into details of the margins and so on, the way we see the return of our business is not in the EBITDA and the gross margin, but in fact, the capital used that is working capital. We have the third quarter with BRL 58 million in EBITDA in line with what we had last year, and a greater profit because we reduced the use of capital and stocks, and we'll talk about it in the next pages. In nine months, the company also reaches a level of sales that we've never reached before, BRL 4.4 billion. That is our ability to generate and supply the retail consumers to help the brands. Silvio mentioned the partnership with HP. We have that. We have partnership with Samsung, we are a great partner with Microsoft in the digital retail, Apple as well.
We are great partners and we can take them to more partnerships and more businesses. In the year, we also accumulated almost BRL 200 million in EBITDA and net profit BRL 55 million in line with last year on a market that is suffering what they suffered. We are trying to balance the macro scenario that is more difficult, pushing the right buttons where we have to defend and where we have opportunities to grow. In the next slide, we'll see the details of distribution. I would like to reinforce something that Silvio said, that despite the distribution is a big business unit, but there are some subtleties. Analyzing that as a whole package will give an understanding that it is not the best way to understand it.
As Silvio showed, we have a business of distribution in Brazil with the gross margin fluctuating about 10%. If we look at our history, it's that we deliver some more, some less. This quarter, we'll have 4% of growth in sales and 9.8% in gross margin in Brazil. 9.8% is a reasonable margin for this business, and this is what we've been talking. This is reasonable and expected to us. On the other hand, in the international discussion, this is something different from Brazil. It's a different dynamics of working capital, making the prices and the reflexes and the gross margin to be different. The expected gross margin fluctuates close to 2%. In this quarter, we delivered 2.2%.
When we analyze everything, it is a combination of a business of margin 10 with the one in margin two, and combined, if we look at this page, we look this 2021, 2020, we didn't have that. When we bring this combination, it's profit. On the right part of the page, upper right part, I would like to say that over the last two years, 2022 and 2023, there was a change in the level despite now the cost of money has decreased, but we left 4% to 2% with a higher interest. Some categories that we had to have the greatest talk and offer better deadlines for the clients to sell or a greater sort, and the profitability on the capital used would be unfavorable. We didn't bet on this moment.
They were not aside from our strategy, if the world has changed, we have to change as well. The reflex is that we have less products being sold and an average ticket increasing. The third quarter of last year and the third quarter this year, when we compare the accumulated in 12 months, our average ticket increased 22%, despite the drop in the amount of products. Why? Because we are giving up on betting on a great company with a low added value. We have categories that we know better and that we have clients working that properly. We have been focusing on the categories that demand less capital, less working capital. This is the first image of the distribution that we present.
The next slide, we talk about retail, in the upper part, we see the digital retail and the lower part, the bottom part, I'm sorry, on the left, digital, and in the middle, physical retail, and the consolidator on the right. In the digital retail, what we have here as good news is that despite it being 3P in digital retail and been suffering the movement of some channels with 1P with a higher presence, the work of the 3P is captive. This is a complement to the sorting of 1P of having some specific products negotiated to offer only an online channel with the manufacturer, working with manufacturer with no strong presence in the digital retail.
This is a quarter that we decrease in sales, in the year, we have a business in the order of BRL 500 million-BRL 550 million that we believe that if we consider the perspective that during the pandemic, it was a business that basically was the escape of the electronic consumer products, this is a good sign of resilience. In the physical retail, today, we have a little bit more than 120 points of sales in Samsung, we've been working to leverage the operations and restructure the business. We've always been focusing on the stores that after the pandemic are the stores with more flow and the cost of occupation is reasonable.
Despite nominally we've been presented a decrease, the sales to the point of sales are more profitable, and it is a very strategic channel of our partners with Samsung, considering it is a channel that sells premium products. We sell more than twice the average ticket of the categories that we see in Brazil. It's a channel of experience of the brand for the final consumer and a channel that we can take the ecosystem of the manufacturer to be known by the Brazilian consumers. This is work that we truly believe. Our partners also believe in that. This is a channel that we are in the middle of the way to reorganize that, but we have given some good steps in ensuring a physical retail with a mission of giving a different experience of everything that we have in Brazil.
To summarize, as a consequence, I mentioned the distribution. Our margin Brazil would be close to 10%, abroad, close to 2%. In retail, our margin is close to 30% of gross profit, and we've been delivering that in the last three years. Before that, it was a little higher, but we feel comfortable about 30%. On the next page, we reach the EBITDA, the gross profit. I would like to talk about the expenses, where we also concentrate a lot of efforts. On the one hand, we had opportunities that were important. We were in a quarter in the last nine months with records of sales.
On the other hand, we are searching for operational efficiency, it goes through renegotiating the contracts, giving up things that we do a little less and doing something more efficient and simpler, reorganizing the activities so we can see it quite well. I believe that if we take in this page, the line of general administrative expenses, we'll see that in nine months, this line has reduced BRL 18 million. These are the fixed expenses that we are reducing in nine months, it's twice the same variation in gross margin. We are gaining operational efficiency. We also gain if we analyze the financial results. In the quarter, we had BRL 94 million of financial expenses. Last year, BRL 101 million. It's about BRL 15 million. Where does it come from? I'll ask to skip two pages, then we'll come back.
It comes from the ability of the company over this year to manage the working capital. If we have a company where the stock is difficult to be used, the expenses are not becoming cash, this reflects in our financial expenses. What we've been able to do is to focus in the purchase negotiations in the proper way so that when we pay the suppliers, it is with the client, whether it's a physical person or a retailer, push our sales with the conditions of pricings and commercial offers matched with what we invested to put the money in the company. As a result, in this quarter, the company generated about BRL 15 million of operational cash flow. In the nine months of the year, this number is about BRL 550 million.
Having smaller working capital makes the company to generate cash enough to pay the debts and financial obligations in this quarter, BRL 35 million. This is a quarter in which we consume free cash flow, but in the year, BRL 18 million. I mean, in the year, we generated about BRL 200 million in cash. In the third quarter to our company, this is a quarter that we usually expect to consume the operational cash. Even the free cash flow should be negative. It is in line with what we imagined, but less negative. Why? Because the third quarter is where the distribution of physical retail, we buy the products to be prepared for Black Friday, Christmas, Children's Day, in the case of video games. Usually, this is a quarter of operational cash consumed. We generated operational cash.
It's good news to us that we generate that in the three quarters of the year. This is a good cash generation. It's quite relevant to us. Now I'll ask you to go back one slide. As a consequence of cash generation, we didn't need to go to third-party capital. We are following our agenda of amortization of debt. As the company is presenting results and generating cash, if we compare our leverage to the end of the year, it's lower. We show here the bank net debt divided by the EBITDA in 12 months. We had 1.8 times last year to one time now. We are very pleased that we are in a difficult year, in a year where all the sector that is with consumer electronics being rearranged, reorganized.
We've been able to generate new business opportunities to compensate the part that we have to organize and reduce and prioritizing. It's the best quarter in sales of the story of the company. Twice the net profit compared to the third quarter last year. The best nine months in the history of the company. We delivered the profit in line with last year, even in a more difficult scenario. I thank you all for your presence. Now I pass on to Fabiana. We have now Q and A session. Fabiana, I pass on to you, and we can answer the questions.
Thank you, Gustavo. I'll start here with a question coming from Marco Nardini from XP.
I'll ask Silvio to answer about the operation in Miami. If you can talk about the EBITDA margin, if you have space for expansion in international operations, and if so, what you are doing to increase the margin.
Well, thank you for the question. What we try to present here is that Allied Miami and the distribution to Latin America that we are doing based in Miami, it has a different dynamics from the distribution that we have in Brazil. First, because it's an operation with a cash flow that is positive. Generally, the payment deadlines are short, or we simply pay cash. We receive in a very short term. The operation generates cash to us. On the other hand, it is an operation that won't change the level of margin that we are seeing.
It would be between 2%-2.5%, and it will keep this way because this is how we work to export from Miami to Latin America. It was just the first year of operation. We've had some products. We have a mobile manufacturer. We are dealing with video games. In terms of business volume, we believe that we still didn't explore the total ability that we may have in Miami. Now, thinking about Latin America, Brazil is a country with the tax benefits if the items are manufactured here. We reduce the import taxes and IVA. In Brazil, the cell phones and TVs and computers, they are all manufactured here. We can have better competition. In the rest of Latin America, the only similar situation is in Argentina, that they have in Tierra del Fuego a similar situation with the tax benefits if it's manufactured there.
The other country supply from Miami or China or any other part of the world. Our operation in Miami has a potential to explore all the countries in Latin America except Brazil and Argentina. We are not in all countries yet. We have a potential to bring many other manufacturers. I see a very good growth perspective in terms of margin. This is the situation of margin for the exports. Maybe it's greater efficiency and we'll keep in 2%-2.5% in the Miami operation.
There is a second part of the question. Another question from Marco. I'll pass this one to Gustavo.
If you can explore a little bit more of the reduction of leverage in this quarter because I think it was one of the positive highlights. It's one more quarter besides the international operation. I would like to understand the dynamic of debt looking to the future.
Thank you for the question, Marco. I think this is a year that we generate a lot of cash, and we don't need to go to banks to have new debts. Compared to the pandemic period, our sector and our company has also changed its level, especially in Brazil. It's lower than the pandemic. We also believed it would make sense to use the cash flow that the company could generate to adequate the level of leverage of the company and reduce it a little. This is what's happening this year. To the future, we are aware of the market conditions. We are always in contact with the partner banks. We've been analyzing the best way of eventually keeping and collecting something.
We don't have anything now to communicate to the market. It's always in our minds, and it's important to us. As the company generates cash flow, we feel free to later on make a decision between the level of leverage or eventually do differently to our partners. Last year was a year of cash consumption, and this year we have a lot of working capital for the operation.
Thank you, Gustavo. I'll ask the questions. We have two here from [Hena Satoriu] from Bradesco BBI. I'll ask the two of them to Silvio.
If you can talk a little bit more about the main factors affecting the retail and what categories are the most affected. The second one is about the expectations for the Black Friday.
Okay, Satoriu, thank you. This year, if we analyze the electronic market, the main product is cell phones. Cell phones will be something about BRL 45 billion on the market. The second market is the TV market that will account for BRL 20 billion this year. The third one is computers with something like BRL 8 billion. I'm reaching these numbers analyzing the last months and the forecast. When we analyze other categories like tablets, video games, printers, these are categories that in revenue, they are lower in BRL 1 billion, BRL 2 billion. The market is impacted by smartphones, TVs, and notebooks. Smartphones is decreasing 10%. In fact, the smartphone market is decreasing in the last five years in volume. The average price has always made the market in value to keep growing.
This is the first year that the growth of the average ticket doesn't compensate the decrease in the volume. In TVs, a decrease of 7%. Notebooks 13%. What impacts this is that we are getting the end of this COVID hangover. It was two years with a huge demand for electronics. There was an anticipation in purchase by the consumers. They changed the TV before expected or what they imagined. They changed their cell phones. The money of the consumer migrated to electronics as they were not using to travel or in restaurants or clothing. I believe we are in the end of this period. It is the end. We'll go back to the regular demand. The second point to impact the market is that the electronics are mostly funded to the consumer.
It's generally in six to 12 installments. We have more aggressive offers like 25 installments, even 30 sometimes. These offers of financing are impacted by the cost of capital. As Gustavo mentioned in his speech, it grew from 2% to 12%. It has a tendency to decrease now. This tendency to decrease will help make the financing cheaper, which in the end of the day decreases the problems to the consumer and generates more demand. I'll complement your answer here talking about the perspective for the next quarters. This is my personal perspective. First of all, in the fourth quarter, we have two very important dates to the electronic market. The first one's Black Friday. Black Friday is the most important date for the electronic market in Brazil. It's greater than Natal and Mother's Day and any other date.
This Black Friday should be as strong as the others were. We don't see any sign of decreasing in the offer or demand of this period. This is the first point. The second point is that with this decrease trend in the capital cost and this hangover coming to the end, we may have a perspective of regrowth of the electronic market next year.
Thank you, Silvio. Now I'll ask the next question and pass to Silvio a question from Andre Danielski, and I'll do this question along with Thales, because Andre asks the perspective for the Brazilian market in the next quarters. I guess you already answered somehow. If there is any sign of reverting this trend. Thales' question is, considering the low growth in Brazil, what was the kind of client that caught your attention on the result? Any ideas of the regional aspects of these clients?
Thank you, Andre. Thank you, Thales. Regarding the market perspective, I think what I mentioned here is that Black Friday and the macroeconomic situation and the fact that the purchase during COVID and the anticipation of purchase is now being regular. An important point here is that during COVID, the consumer behavior changes regarding the computer, because in the past, you had one computer per home, and with computer and home office, we started having one computer per person at home. All the computers bought in 2021, next year will be in the exchange cycle, say. It's about four years, the cycle. You have this trend of seeing more purchase in the computer market next year. This is Andre's point.
We also have a growth of the distribution of 4%, and where does it come from? We have three sales team here. A team dealing with the big accounts and the big retails, and a second team that is the one that we call capillarity, dealing with about 150-200 retailers. This team is bringing result resilience every month regardless of the market situation. As the market decreases and they keep bringing the same amount of sales every month, it explains part of our growth. Some regional retailers are growing just like us, and some in the marketplace are growing a lot with us. Our third sales team is the team operating the telesales from retailer 200 and on. We have an internal team, and this team, with greater efficiency in operations, growing significantly this year.
Our growth is a lot from the lower retailers and a lot from the regional retailers. That's where we have this 4% of growth compared to the market. That is decreasing an average of 10%, so it's quite significant. I'm happy with the results.
Thank you, Silvio. I think we have one last question here. In some quarters, you are emphasizing the capital allocation considering the current context. What are the opportunities that are not a priority now, and how it can come back to the future?
Okay, thank you for the question. Since our IPO, we've been mentioning that some growth drivers to us have an increase, and one of them is the increase in the category of products in the distribution.
For you to bring a new category of product, it demands a time of maturation of one or two years so that we can know the product line and be sure that the team is ready to sell and that retail understands you as a producer. It demands investment. When the cost of capital increased, we decided to freeze this initiative. We are not bringing new categories of products to distribution, and it's not forgotten. It's part of our strategy, but not now. We'll wait the capital cost to be lower to invest on that. A second area is our physical retail. Our physical retail, as we mentioned here, we closed at six points of sales from the last quarter to this one, and it will keep with an important part of our strategy. At this moment, we are freezing its growth.
I think the third point that we froze temporarily is that we are a company that like a lot to grow with acquisitions. We've had some acquisitions being analyzed, and we decided to hold it until it's more possible to invest capital in this initiative. These are three important items to us. They are also part of our strategy, and they were put on hold until we can have a lower cost of capital investments.
Well, I have some more questions. I said it was the last one, but I'll have one more question here to Silvio. A question from Fabio Santana.
On a market of BRL 45 million, what is Allied doing to increase the market share? Do you have any idea of how to disclose this mobilism to the target audience?
I would like to work in automobilism because I like it. Allied is a company that sells to retailers. We never disclose our brand this way, our activities of spreading and disclosing our activities of relationship with our retailer partners. You barely see our brand being disclosed this way. What we are doing to gaining market share, and we gained market share this year. What we are doing is to increase the efficiency of our work in the average and small retail where we work. The big retailers are also our clients because we have some products that are exclusive or semi-exclusive, like Xbox and Google products, so they are also our clients. When we talk about cell phones and computers, greater part of our business is in the regional retails, in small and medium ones.
This is a discipline of account management, analyzing in details the numbers and searching for a way to become better and better providers to the partners, increasing our relation with them. I would say this is the back to basics. To do the basics well done, and it's increasing our market share.
I pass on the question to Gustavo, also from Gustavo from Plan Capital.
Good morning. Could you talk more about the expectations regarding the average deadline for receivables for payments and the stock flow in the Miami distribution?
Thank you for your question, Gustavo. In general, we have 45 days to pay the suppliers in Miami. We work with two weeks for stock, so 15 days, and our deadline on average is from five to seven days.
The greater part of the sales that we do is at the moment, and just a small part has some due date, but 100% of the deadline is saved by credit. In a simple way, I would say 45 days for the supplier, 15 stock, and five to seven to receive it. As we expand this operation, maybe it can change, but in the short term, we don't see any change.
Okay. Thank you. I guess we could address all the questions. I'll finish here. I would like to thank everyone for the participation and say that the RI area is available if you have any doubts, and I'll pass on to Silvio for the final words. Thank you.
Thank you, Fabi. Thank you all for your presence. It's always an honor to have you here with us. We are available not only during this call, but we are always open to clear your doubts. I would like to invite you for December the 6th, because we will have the Allied Day. That is a day where we talk a lot about operation, what we are doing, what we want to do, focusing on a more qualitative way in the many areas of the company with the participation of some directors. We will have a guest that will be one of the manufacturers and suppliers will be with us. It is a nice event for you to know a little bit more of the Allied details and operation. Thank you very much. Have a nice day.