Good morning, everyone. Welcome to Allied Tecnologia Conference to present the results of the second quarter of 2023. I'm Fabiana Malan, Manager of Relations with Investors in the company, and I inform you that we are recording the event and translating it simultaneously. All participants can only hear the conference during the presentation. We'll start the Q&A session. You may send your questions via the chat that is available in the video conference screen. Event or declarations regarding business perspectives and projections are about the premises of the company that are facing uncertainties and maybe won't happen. Here we have Silvio Stagni today, the CEO of Allied, and Gustavo Antunes, CFO and DIR. I pass on the floor to Silvio, who will present the highlights of the quarter.
Thank you, Fabiana. Good morning, everyone. Thank you all for your presence. Today, we'll follow the agenda that we generally follow in our result presentation. First, I would like to emphasize some aspects of the results of the second quarter. I pass the floor to Gustavo, our CFO, who will give the financial details of our result. In the end, as Fabiana mentioned, we open to the Q&A. We always start our presentation remembering the three business pillars that we have. Starting from the left of this table, our digital retail, we have many online stores. We have stores with our own brand, MobCom, that is strong in the 3P market, connected to the main marketplaces in Brazil. We also manage Apple stores online in 3P, Google stores in 3P. We have an important store that is iPhone Para Sempre, in association with Apple and Itaú.
Now in Itaú, we also have a second program in the sense that is the Xbox All Access. That is the possibility of purchasing an Xbox with the services included in a very long term to pay. The middle pillar is our physical retail. The second quarter, we had 131 stores made. Basically Samsung stores. We have 81, the first one physical in Trocafy. That is our brand to send reconditioned products, and Samsung is basically in the southeast of Brazil. Lastly, the distribution, that is where the company started 22 years ago. We distributed the main electronics of the main brands in Brazil. This year we also started the distribution in Latin America. We'll talk a little bit about it in the next slides. In the market we work, we have a market share that is expressive in all categories.
Giving just three examples, we have 9% in notebooks market, 28% in video games, 9% in tablets in Brazil. All the categories have a relevant participation. Before going to the results, I would like to bring the market of electronics in Brazil today. Just to give you a background, this is a very difficult year. First, due to the macroeconomic conditions with the level of debts of the target population with high inflation, also because we are still going through the hangover of the pandemic. During the pandemic, the purchase of electronics were anticipated because people spent two years at home, they supplied their homes with new TVs, computers, printers. They prepared to work from home. This anticipation, we are still feeling as a drop in the sales.
Just to give you some figures, if we look at this year, the smartphone market, that is the market that among all that we have, is the greatest one with more than BRL 50 billion this year. In 2023, this market has dropped 10%. The second biggest one is the TV market. That should be BRL 25 billion this year, and this is a market that is resisting the most to the drop, but even though we have 2% of drop. The third market in terms of the size is the notebook one with BRL 10 billion this year. We are seeing 14% of drop this year. This is a very difficult market, but we are very proud even though with the results that we could reach. In the next slide, we'll see the main items of our result. On the left, our income.
In a market with the drop that I mentioned, we could have 21% of growth, quarter-over-quarter, 10% growth in the year. This is a very relevant growth when we consider the background of the mobile market that is dropping 10%. Despite this growth, I'll go to the picture in the middle, we don't give up on our profit. One quarter more, we are presenting a net profit of BRL 18 million. We are presenting this profit since our IPO in every quarter with no exception. This in a year where the main factor, the main challenge is the cost of money, we are working strongly on how to deal with our cash flow. Now I go to the graph on the right, in this quarter, we could generate BRL 269 million, accumulating BRL 490 million in the year.
Basically, with a more efficient management of our stocks, being more strict in our payables and receivables. It brings an improvement in our results in a significant way. If we analyze our leverage measured by the EBITDA and the net profit, we now reach 0.9x in a very low leverage level when compared to any other player on the market. On the next slide, we'll talk about some highlights of this quarter. I would like to start on the left, where in the graph we see the international operations. This year we started distribution in Miami. We distribute from Miami to the whole Latin America. In the beginning of the year, we had a result guidance saying that we would have BRL 600 million in Miami this year. This is a relevant fact we announced to the market. It's a significant amount.
It would impact our result. After that, we had to review this guidance, we issued another one saying that we would have from BRL 1 billion-BRL 1.2 billion this year from Miami. Today we had the third relevant fact on the same topic, now changing and saying that we reach BRL 1.6 billion-BRL 2 billion from Miami. This international operation that basically started this year, we had some activity last year, but the strong one is this year, is a huge success, it's been positively surprising. I'll talk a little bit more about the reasons for success. On the graph in the middle, I would like to mention our growth margin distribution in Brazil. We've always said that our distribution has to work from 9.5%-10.5% in this margin. This year, once again, we are facing this level with 9.9%.
You will see in the next slides that we sacrificed the volume of sales in the Brazilian distribution. In a market with oversupply as we have today, with a drop in the demand as it is happening this year, it's quite hard. We decided to protect our profit and give up somehow on the volume. You'll see in the next slides that we are sacrificing the volume, but I would like to emphasize that we didn't give up on profit. The third point in the physical stores, right after the pandemic, the world has changed a lot in the scenario of physical stores. We've seen that basically in all retail stores in Brazil, and we are also working to improve our results. We had a small study from last year to this year. We analyzed the third quarter. Last year we had 156 points of sale.
Now we have 131. We reduced a little our points of sale. We improved many processes, and we could reach BRL 309,000 on average per point, 25% above what we had last year. On the next slide. Oh, I'm sorry. Before going to the results, we have some highlights. We are still working on our operational efficiency, and 50% of deliveries are in up to two days. We still work with our suppliers so that we can deliver in a correct way in terms of carbon consumption. 14% of our deliveries are considered green deliveries. A point that we emphasized yesterday in a relevant fact is that we are changing our board of administration. Our company is working in a market where it's been quite challenging since the end of the pandemic. We are adequately in the company to this challenging moment.
We are working in the reduction of all the costs of the company. We reduced the team. We reviewed all the contracts that we have, and we also decided to decrease the board of administration. We have had said members. Three of them renounced it. They helped us a lot in getting where we are. Today we have four members in, and in the next assembly, we'll propose a fifth number. We believe that in a board of administration, five people would be quite effective, and it will help to our cost reduction and to a lighter operation. On the next slide, we'll start talking about the revenue in the three business pillars that we have, distribution, digital retail, and physical retail. I would like to go to the right of this chart.
On the first part, where we have the revenue of the distribution. I'll hold it because we'll talk about distribution later on. I would like to mention digital and physical retail first. In digital retail, that is the middle of the graph, we present a drop comparing quarter-to-quarter, a drop of 12%. I would like to mention a reference here. I said that the sell market is dropping 10% a year, but the online market is dropping 19% this year. We work on a market that is dropping 19%, and we had a drop of 12%. We have a better performance than the market with a better yield. The digital retail market is facing a challenging moment with the decrease of Americanas, more focus on Mercado Livre according to the reports that they had in their results.
It all brought a huge competitiveness among the big players of the market. In an objective way, our drop of 12% is much smaller than what the market dropped and much less than what could happen in a moment of competitiveness among the big players. Lastly, the physical retail. The physical retail has, as I mentioned to you, we dropped 16% in the number of stores. We have 16% less, this result is impacted by a smaller number of stores. I would like to mention something about these numbers. Samsung stores are strongly impacted by the novelty, like Galaxy in the beginning of the year, the Galaxy Z Flip in the middle of the year. Last year, Galaxy S22 was launched in the second quarter. This year, Galaxy S23 was launched in the first quarter.
When we analyze the numbers in the screen, we are comparing two different quarters, one with a launch and another one without. I'll take the first semester last year and the first semester of this year. Physical stores. In the market, the market is dropping 3%. Our physical stores semester versus semester dropped 6%, but with 16% less points of sales. Again, we have a better performance than the market. Now let's talk about distribution in the next slide. Now we are opening the distributions in Brazil and in Miami. If we analyze the upper left part, we see a drop of volume in Brazil and a significant increase in the volume in Miami. Well, Miami, basically we started working this year. We already have 17 clients working in 20 countries of Latin America.
An important point in Miami is that Miami brings us a risk diversification with the ups and downs of Latin America that Miami suffers, not necessarily in line with the ups and downs of Brazil. The sum of Brazil and Miami brings a resilience of result. That is something that we always want in our company. Now talking about Brazil. The Brazilian distribution drops 19%, here in a very hard market, as I mentioned before, we preferred to preserve our profit and give up on the volume. Here is where we have the numbers that you can see, in the lower part, you see the level of profits. That is the margin of Brazilian distribution and Miami distribution. 9.9% in Brazil is quite a positive number considering everything that we expected in the moment that the market is.
On the next slide, we emphasize our physical stores. In the physical stores, we grew the revenue in 24% by point of sale. What we are doing in the stores is not to understand the number of points, we reduced the number, but we reviewed the processes of all costs of all our stores so that they keep efficient, being efficient in a market where now the consumer has learned how to purchase online, there was a change in the costs of shopping malls, and the money in the physical retail has a lot of costs. We reviewed all the processes, the result is the graph on the lower right part where we reduce our SG&A in 24% one year compared to the other. This is the result of all the initiative that we brought to physical retail.
I would also comment our growth drivers that we are presenting to you, that is Trocafy, the distribution to the corporate market, and Soudi, our funding instrument. Trocafy, our brand to the market of remanufactured products. We created this company because we have a thesis that the market of remanufactured products in Brazil will grow significantly. It is much smaller than the American so far. If you consider the value of a cellphone with the average income of a Brazilian or an American person, here it is much higher. This market will grow a lot. Trocafy is operating for a year. We are beyond online Trocafy and one physical store that we have. We are also in Mercado Livre and Livelo. In our Samsung stores, with the trading instruments, that is, you give your used phone to receive a new one.
This is very important, but now the operation of the trade-in in our 131 stores is made by Trocafy. Trocafy is there in a very important growth moment. The corporate distribution market, this is one of the growth drivers. We are quite strong in the distribution to retail, and we are growing in the distribution to companies. In this quarter, we launched an Allied Business, an online platform where our resellers have an easy access to any quotation in real time. We hope to raise the bar in this segment of the market. Soudi, our financing instrument to the consumer, something that we created to our Samsung stores. Today, it is in most of the Brazilian Samsung stores, even if it is not operated by us. We expanded to operator stores, and now we are reaching 401 points of sale with more than 100,000 clients.
Here we also have Soudi to show that they can be very important to our results. In the next slide, just to summarize, these are our results in the last 12 months. With BRL 6.4 billion of gross revenue, BRL 73 million of EBITDA and BRL 68 million of net profit, 131 points of sale, 50% of deliveries in up to 48 hours. Our market shares in some categories, like notebooks, 9% tablets, 9% notebooks, video games 28%, we are relevant in all categories that we operate. I think this is the scenario I would like to present to you in the second quarter. I will ask Gustavo now to detail our financial results.
Thank you, Silvio. Thank you, everyone. I will start by explaining briefly the dynamic of our evolution of numbers, that is in line with what Silvio mentioned in a nutshell. We show the history of five years since 2019 to this year. What we are delivering.
I think he lost his connection.
Digital retail. We are working on an international institution.
I guess we had a problem with the international. Gustavo, can you start it all over again?
I was saying that the ability of the company to make businesses, even on an environment of market that we had the pandemic period that was strong in the beginning, then the hangover. When we analyze the graph in the upper part, the ability to generate business is able to overcome the market cycles. We have an international distribution that is navigating quite well. We have a digital retail that changed the level and is in a good level so far in a market that is difficult.
Our distribution in Brazil is resilient, but we are getting to the end of a period of a little hangover that we are facing. Anyhow, we finished the second quarter with net sales of BRL 1.5 billion. In the semester [audio distortion], almost BRL 3 billion. Our EBITDA margin is 4.6% in the quarter, 3.5% in the year, which means BRL 137 million in the year, with a net profit close to 1.2%, whether in the quarter or in the semester. A lot of what we are doing in the short term over the last month, since the beginning of the year, was to adapt to the conditions imposed in a macro way, whether if it's due to money, competition, or demands of the market.
What we see in the future when we look at this break of business units, it is a lot of us being a company that makes decisions considering the cost of opportunities of the money, the demands. I'll change the slide to make a link here with distribution. If we analyze the upper right part, we see that the gray line in the distribution is the number of products that sold in the distribution, and it was an important drop. At the same time, in the line of the graph, we see an increase of the average tickets that we're selling. This is a reflection of the company's decisions to give up on the products that we believed would have less added value or that it's less difficult to control stocks, and it would generate more margin and disturbing the capital of the company.
We sanitize what we have to control with higher rates and in an industry where the consumption of electronics is suffering. With that, we can have a simpler operation, easier to generate, but we are delivering products with more added value when we can see in the quarter that we have a natural impact and we have the ability of the company to make business and have more added value to diversify the geographic, diversifying the risk exposure that the company is exposed to. We grow in the quarter 35% and in the semester 16%. I think that for more than two years, we are talking to the market and educating everyone that the distribution, especially Brazil, the distribution in Brazil fluctuates around 10% of margin.
Can be a little more or less, some peaks, but when we analyze on the right the table, we see that in fact it happens. We are close to 10% or 11%, or we had some close to 9%, but it's fluctuating around 10%. It happens because in periods where the market is hitting Allied's position in the value chain of the electronic market in such a way that when there is more demand of the consumers due to the retailers than the offer, we can have a power of bargaining and sell with higher margins. What happened in the last 18 months was the opposite. The manufacturer, the supplier used Allied to help us be one more channel to send products to the market, and retailer is more careful.
At this moment, our work is not necessarily of having the margin in the retail, but to ask for help and to build together with our suppliers this market so that we can keep our profitability as we consider adequate in the distribution. In international distribution, I would like to emphasize that it is a business that has a lower margin. When we analyze everything together, we naturally compare different things. The importance of the business in international distribution is that the dynamics of the business is different from the dynamic in Brazil. More than 3/4 of our sales is made with payment at the shipment of the client.
The efforts where we spend a lot of energy and a lot of time is to ensure that we purchase the adequate product in a small stock so that we receive from our clients cash in more than 50% of the cases. In some cases, we have just a few days to the due date, but much less than what we have with the suppliers. We have this business that is something close to 2% of margin. Going to the next slide. We are telling the market that the distribution fluctuates around 10% in Brazil, close to 2% above that outside Brazil. In retail, the gross margin is about 30%. If we analyze the graph, in the orange part, the lower part, we also see that 2019 is an outlier. It has a lot of specificities, but historically, it's around 30%.
What we saw in the past was the change of the mix. With the pandemic, we had the physical retail closed, then the growth of the e-commerce, we could surf on that wave. We have an e-commerce of BRL 800,000- BRL 1 million a year. It was kept after the pandemic. We took advantage of these channels in Brazil. In physical retail, we are dealing with that as well. We closed some small points of sales. We reduced the team, renegotiated contracts. We are having our efforts to have a profitable operation in the physical market. As we believe we can control with points of sales that we are able to work. There are points of sales that we can change with the mix of prices. We can negotiate contracts. We can reduce teams.
We can change the point and reduce the rent. We are working a lot on that. In case that we experiment in the point of sale, because it didn't make sense, these were the cases that we closed and ended up closing them. Silvio mentioned that, and Liz also knows that it reflects in the point of sale. We could see that by square meter as well. We are going on to a more profitable physical retail as we are doing in the other business units. On the next slide, I think the main message here is that everything that we prioritized on having businesses that are profitable is also reflected in the level of expenses. The expenses with the sales, we see here that in the quarter has dropped a little more than 3%, ending the year close to 1%.
In these cases, the proxy is quite close to what we have in sales in digital retail and in physical retail. These are the methods of commissioning our take rates that we paid to the platform. Here we work virtually guiding our efforts to where we have volume of visits and a favorable condition. When we had a lot of active work, it was in the administration in general. We draw up almost one-fourth of our expenses compared to last year. This is an effort to adequate the team and renegotiate contracts and check if we were using contracts of amounts and licenses. We had a big effort to that. This is part of what we could capture. We see that almost BRL 20 million in the first semester of capture with the active work to search for gains. Basically, that's it.
If we go to the next slide, I'll make a link to a graph that we show in our release. If we combine the efforts to reduce expenses and the maintenance of the businesses that are profitable, and the management of the capital in a pronounced way, we then have the first semester with a lot of generation of operational cash flow. This is something that the company did quite well in the moment that the market situation is still strong, and we are now starting to live the reduction of the rates, which affected all companies. This is the moment that we are trying to deal differently from the pandemic.
We are doing that in such a way that we are traditionally prepared for first and second quarters won't be the same line because historically when we buy the ends and to the retailers in Brazil as well, how does tool so could distribute very satisfactory. If we can go back to the previous slides, just a [growth depth] of almost six quarter, and this is a lot whether in operations in Brazil or outside average and the use of cash in the future later on. Now I think you went past on the fourth.
Gustavo, I think we can start with a link with Marco Nardini's reduction of leverage in this quarter [audio distortion], and he wants to understand about the decisions to increase the weight of the paper or to question. He talks about the good cash. If we could wait for some. Well, while at team.
I think a related conversation is the proper moment for that. Explain to you what's going on with our board. The same way, talk about the dynamic of debts and thinking about provisions. Almost BRL 100 million of debt. BRL 8 million. Give you an idea of quarter of this year, we have that capital debt of BRL 8 million in the United States. [Audio distortion] of the alternatives and have instead as we need to have that. If it happens, we would be able to have the decision and part of we are able to generate some cash. About [inaudible ] in Soudi. More than four years ago. I would say that maybe having funding who do in their first stage of development to have a debt with a partner please do in the first quarter of next year.
We have been maturities that out there to the company are in our additionally used by retailer. That we could we are trying to understand the in the company. For next year, we have some due dates of the inventories of how much the company and how much we can use that into the questions if we can or not affirm that I would, but we are quarter and now we have made the decision. I can't anticipate any horoscope. I think that's it.
Now I'll make Silvio. He is congratulating the results, and he asks what [audio distortion] international work is only in one area.
We had some business last year in the weekend sale. We still have, but we [audio distortion] that we can have in Miami Apple, but we already [audio distortion] to Brazil. Just an example. There would be opportunity. To the rest of Latin America. In Brazil, we have some [Fiskar] strongly located in Brazil, so we purchase. If we analyze Latin supplier of electronics Where we've made mistakes in the guidance of believing we'll reach BRL 1.6 billion, but I would say that we are just starting to In the portfolio of purchase.
Silvio, This question is to Silvio. [audio distortion] of businesses in Brazil.
Quite optimistic regarding the second semester due to some reasons. First, because we start to see some macroeconomic aspects improved. We've seen recently the cost of money dropping, starting to drop, which impacts strongly the retailers. At most, the electronic retailers sell the products in 10 or 12 installments, the cost of money is quite impacting to the offer of retailers.
We start seeing programs to reduce the debts of the consumer, like Desenrola, that is implemented here. We have macroeconomic aspects, but there are some important dates in the second semester to the electronic market. The first one is Black Friday. Black Friday is the most important date for electronics in Brazil. We had Mother's Day, Christmas, now we have Black Friday. That naturally will increase the demand in the second semester. We have an important date that is always increasing the size of the market, that is the launch of the new iPhone. Apple might launch iPhone 15 at some point, maybe something between August and October. They didn't define it yet, but this is very important to the electronic market. It makes the fostering of the demand.
The third factor is the launch of the new Flip line of Samsung that is now in pre-sale, and in the next few days, it will become physical retail, physical sales, and when we have this launch of Samsung, we move the market. Lastly, Christmas. The second semester is a very fruitful period of events. I mean, events that foster sales. It's much better than the first semester. We are quite optimistic regarding a significant improvement in the second semester.
Okay, thank you. There is a last question here. Silvio, this question is for you. Lucas is congratulating the results, and if we can give the current Allied market share in international distribution, I think it would be good to talk a little bit about how the structure is to give more visibility to this market.
Well, I have no numbers to give you, but let me give you some elements. I would get the main supplier that we have, that is Apple, that is an example to all the other manufacturers that we are dealing. Generally, the supplies in Miami go to the countries that don't manufacture, just like Brazil and Argentina, and also go to the market that there is no manufacturer, but there is a presence. They end up leading the imports and local sales. Having that said, Miami supplies the vast majority of Latin American countries. Brazil should supply to 70%-80% of Latin America. We have a few distributors in Miami, and these distributors sell in two ways, basically. They sell to clients who are located in the country. The retailer that is in Chile can purchase from Miami, and they sell with the resellers.
There are experts in local sales in Latin American countries that are supplied in Miami and take the products to the countries in the region. What is our market share today? Well, we should divide it per product, and we don't have it. I believe we have an expressive participation in the product lines that we work with. Maybe your question would be to try and understand the potential growth, and I think this potential growth comes from the expansion to other countries and the expansion of the product line. I think it's much stronger than the growth of market share. That according to my idea, we already have a significant expression.
Well, I think with that, we finish all the questions that came. If there is another question, you can send your question to ri@allied.com.br. I thank your presence and your time, and we see you in the next quarter. Thank you all very much.