Good morning, everybody. Welcome to the outcomes conference of Allied Tecnologia to show the outcomes of the second trimester of 2022. I am Fabiana Lawant. I am Relationships Manager , and I would like to inform that it is being simultaneously translated and recorded. All participants are here in the presentation, and then we will start with the Q&A session. You can send your questions by our chat, which is available at the video conference screen. Eventual declarations regarding business perspectives and negotiations are according to premises of the company, and therefore, we are ensured they may or may not occur. We have here Silvio, CEO of the company, and Gustavo Antunes, our CFO and DRI. Now I will have Silvio with the floor who will expose the trimester's outcomes.
Good morning, everybody. First of all, I would like to thank you all for being here. Our goal today is giving further details on the outcomes. Our agenda. Next, Fabi. I will show a few highlights of the first and second trimester of 2022, then Gustavo, our CFO, will give further details on finance and operations, and by the end, we will be available for questions and answers. I would like to start with the highlights. Before starting on the three pillars, I would like to talk about the market of the first trimester, the first semester of electronic devices in Brazil. If we think of the second trimester, its market had a retraction. By looking at a few figures, we will check that the second trimester represents a drop of 23% in notebooks, 7% in smartphones. This market has contracted. A few factors took place.
First of all, years 2020, 2021, the pandemic years, had a high demand on electronic devices, where people aimed at improving their homes, having a better leisure time, and working from home, and the uncertainties that took place in 2021, 2022, which held the market back in relation to the past year. Allied's outcomes in a macro manner. We have as net revenue, we have grown nominally, and our profit compared to 2019 is in the same level. Gustavo will give more details on that, highlighting that this year, the financial cost and store occupation cost in shopping malls was higher.
If we look at the net revenue from Allied and we compare with the second trimester of last year, we have a drop of 17%, and such a drop, first of all, is aligned with our market scenario, and secondly, it is highlighted as previously, due to the economic uncertainties that we are going through right now. If we look at the semester, the first semester of 2022 is approximately the same revenue figure as 2021, which means a gain share for us. The market drops down, even though summing up the whole semester with regard to last year, regarding smartphones market, we maintain a flat factor with regard to the previous year, what shows once more that our three business pillar way brings resilience in outcomes. Now let us move to the pillars. More specifically, the first of them, digital retail. We had 38 online stores last year.
In the second trimester, we had 30 stores, so we keep growing in our participation with the online market by means of our brand, but also Apple, Google, HyperX, and Xiaomi, and the iPhone Forever program remains strong and successful. If we look at this trimester in comparison to the last trimester, we had a drop of 14% in our revenue. This has been caused by two reasons. First, it keeps pace with the market drop. Secondly, I would like Gustavo give a few explanation. This year has raised a discussion on a DIFAL tax, whether it should be paid. In a conservative way, we are saving provisions and including in our prices. Should STF, the Supreme Court, decide we should, then we will have an additional profit for the next semesters.
But differently from many scenarios, we are conservative, and we are including that in our price, which makes us less competitive in the online market, but rather conservative with regard to not having any negative impact in the near future. The pillar in the middle, the physical retail. We see a strong, steady recover in the physical retails, and here we have a change with regard to what we've seen. We had 156 stores from which we had 22 store-in-store. In the second trimester, we had 116 stores in store-in-store model, so we decided to decorate our sales point. The store-in-store are mainly focused in mid, low price. We understood that this part of the electronic segment is suffering more than the market average. Since store-in-store is a very easy model to open and to close, aiming at profitability, we decided to shrink the store-in-store numbers.
I think it's a right decision when we look at that. We are able to carry on with some growth. Finally, the distribution. The distribution in the second trimester has a market share growth of practically in all categories, even though we have a drop in revenue of 20%. Such a drop happens due to the very market, and a slow pace on demand that starts by the end of June. But by looking at our market shares from smartphones, notebooks, and video games, mainly notebooks and video games, we are growing the market. In the next page, we will give further details on the three divisions. A few points I would like to highlight. So I will start on the right side in the distribution. The distribution.
We went through the pandemic years 2020 and 2021 with a high demand of electronic devices, and we entered 2022 being able to maintain practically almost the same amount of revenue that we had in 2021, which was an exceptional year. So we leave the pandemic with distribution almost twice as big as it was in 2019. Digital retails. Here, we have fourfold growth with regard to the pre-pandemic times. It was a fruit of the market. The online market has grown a lot, and the first semester of 2022, we almost maintained the same profit of the semester of 2020. Even though the market's been dropping and the electronic market has dropped down more in the online than the offline, even though we are able to maintain our profits. And third, the physical retails.
Here we are growing for BRL 285 million, almost the same amount of revenue we had before the pandemic, which shows that the physical retail has been recovering, and it will be an important pillar for our outcomes. If we look at the left side where we have the [inaudible] from 2019 to 2022, we almost doubled the size of the company. We maintained the level of revenue that we had in 2021. Just to show the second trimester, we show a drop of 17% with regard to 2021, but that drop is smaller than the very drop the market had as a whole. On the next page, we have a specific detail on physical retail. We start by the right side. In June 2021, we had 276 stores. In 2022, we have 285.
We again reduced the number of stores, and when we understand that the market is improving for mid, low prices products, we will have all the opportunities in the world returning to store-in-store opportunities. To show how right we were in that decision, I would like to move to the chart on the left. Even though we had 42% less sales points, we have a revenue which is 70% higher. If we compare the same store sales of the second trimester of that year to the previous one, we have a + 12%. Here, our decision of reducing store-in-store was based in always aiming at the profitability in our business. Store-in-store wasn't a good moment, but it will have the time to become viable. We decided to ensure profitability for the near future, and we will keep eyes on any other opportunity that may rise.
The last thing that I would like to mention, in May, we released a new store, both online and physical store called Trocafy. I would like to remind you how we get to Trocafy. In October 2021, we purchased a company in the market specialized in purchasing used phones and reconditioning them and selling them for physical persons. It was called [WeAreUV], and we brought the expertise to our company. We created the VTEX platform, which is stronger, able to escalate sales, and we created a new brand that we've released in May called Trocafy. We enter the reconditioning market, which is a market within three years will grow at about 80%. If we look at the IDC forecast, nowadays it has increased to BRL 2.8 billion, and we expect to reach BRL 5 billion in 2024. Trocafy is intimately related to our iPhone Forever program.
We need to remind you that iPhone Forever program allows the user to buy an iPhone by the app, paying 21 small parcels at about 3% of the product's value, and a 22nd parcel at about 30% of the product's value. But here, the customer has the option of paying and keeping the iPhone or giving us back a used iPhone. He will get a new one, and the 21 parcels will start all over again. This May, the first 21-month cycle started, where we started to receive the iPhones from those customers who decided to renew their program. Trocafy carries a sales solution for these iPhones that return from iPhone Forever program. Not only that, our retail, according to the customer's law, has a few days to regret the sales. That's where we get these products back.
Nowadays, these products are also sold by means of Trocafy. We train our team with manufacturers. We have assembled a reconditioning operation from Apple, Samsung, and Motorola. Nowadays, all the phones that return, just like the iPhones from iPhone Forever program, are reconditioned, refixed. It is a growing program, and it has a lot of capillarity, and we believe that we have all the conditions to make it become a huge player in this market. Finally, huge figures. Next page. These figures are 12 months finishing at June 30th. We have BRL 7 billion of net revenue, BRL 380 million EBITDA. You can see that in the second trimester, our NPS is 86, 38 online stores.
We remain with a meaningful market share than most of the categories. We have 8% of the smartphones market, 11% notebooks market share, and 30% in the video games market. If we look at from 2019 to 2022, our growth rate is 20%, so we remain a meaningful growth base. Thank you all. This is what I had to show you. Now I would like Gustavo to go into the financial and operational details.
Thank you, Silvio. Good morning, everyone. Now moving on with Silvio's speech, going into details what happened in the second trimester of 2022, and how we wrap up the first semester of this year. I think I will sound repetitive in order to give more details, but we bring this presentation, particularly our three-year history of what we have experienced in 2020, 2021. We have been talking about that in the semester's wrap-up. It has been a very specific market period. People started working out of their homes, some of them still working from home. Companies and schools had to adjust themselves to home office setup.
We have seen a, let us say, enthusiastic demand for electronic devices and a lot of breaches in the supply chain that provided 2021 to show extraordinary outcomes. One example was the distribution margin, and that would be a year of return to rather normal panoramas. From that standpoint, we see the second trimester, the market has dropped as we have wrap up the semester with liquid sales, net sales better than last year. It is a reason of being satisfied and feeling that our capability of generating business and working with retails has pathways to help us selling the products and thriving in the market. That being said, we wrap up the second trimester with a net revenue at about BRL 1.27 billion. Our EBITDA is registered to a few billion reais, and adjusted net profit, we have wrapped it up with BRL 24 million approximately. Our adjusted EBITDA of BRL 146 million.
I will go into details, but I would like just to point out a few important things for us too, more specifically. Naturally, when compared to the yellow bar, we see that the industry is. Even though we compare with the period of many outcomes, June last year, if I am not wrong, was the period of most sales in the company's history. What do we have for this year? We have specifically comparing the pre-pandemic period. We have been talking a lot on how to exit the pandemic, how to exit two years of a turbulent market full of uncertainties and needs. We all know that the net revenue the first semester of this year was very superior than that of 2019. That is why we have been referring to that with a net profit of the same amount.
That if we compare with 2019, there are two events that explain most of that. First of all, the cost of capital, which is a lot higher than it used to be in 2019. So our financial outcome from 2021 to 2022 first semester compared to the 2019, it is at about BRL 218 million higher. We will talk, just like we have been following up, the episodes have been disclosed, the financial services and the PDD provisions and financial services. We have some impact on that I will talk on the last page. So these are two things. First, there is a new harvest of financial services, so we can leave the old harvest behind, and we will see the outcomes of that within a few months. But we have been working strongly with that. Second point, that is the financial cost. We had been spending a lot in spinning capital.
Everyone is working that aside from that. Then finally, we have here the occupation cost for shopping center rental. We have been feeling that. So I would like to ask you, we have been talking about it in the next page, we will give further details on how the 12-month profit will come. The bars are the net profit of 12 months in each of the historical trimesters, and the line is our ticket. It is the main ticket. What happened, particularly in the fourth trimester, is that we have reduced the sales of very low tickets, like computer devices and accessories for connectivity, and we have increased the sales of higher ticket. So specifically saying we have sold more video games and computers. So on the left side of that page, this is what we have.
Digital retail, we have appeared over these six trimesters where the revenue has dropped down when it returns to the taxable. In counterpart, the effort of diversifying and what our customer had been demanding helps. Even though the average ticket is bigger than 2020, and it is a little lower than what was the peak of BRL 2,000- BRL 2,100. In the physical retails, we had the first trimester with launching our stores. We thought it would be successful. So an average ticket, which is a lot higher in high gamut sales with a volume that has been floating at about BRL 550 million. In the next page, we will be talking about the distribution.
So here, I think that what we have been talking, and I believe that every trimester, at least for the past six trimesters, we have been talking to the market, is that the distribution in a floating margin between 2% and 10%. So whenever we look at the pre-pandemic period, we see that such a margin is next to 10%, and then it surpasses that. What used to happen in previous years, a high demand on products, fail in supply of the global chain. So we are influenced by that. Now we have some sort of a hangover period as the global chain is establishing itself with a smaller demand period. Still, though, we wrap up the semester with a 9.3% margin, with sales substantially 50% higher since the pandemic.
I would like to refer to the right side chart in the lower side of the slide, where we see the bar that shows that we are being able to be a rather diversified distributor. It floats at about 52%, 53% regarding past semesters. Our distribution capacity is 50% for mobile phones and tablets, and the rest, 48% from other technology projects. Most of our growth is due to connectivity, other brands, and products that we are not inserted into that market yet. This is a goal and a strategy, and we've been able to do that. In harder markets, thriving is a reason to celebrate. Now let's talk about retails. In the left side, in the lower side, in the second trimester, we're able to reach BRL 319 million of net revenue, and the whole of the semester, BRL 640 million of net revenue.
Moving to the right side in the digital retails, the figures for the trimester and the semester is very similar. We have growth regarding 2019, 2020, 2021, and we see that in 2022. Perhaps that's something very specific for the general audience, but for those who would like to go into details, the term that Silvio had brought is relevant for the digital retails. There is a legal uncertainty whether part of the taxes for digital retails is right or not. That makes the digital market companies have different risk and pricing policies. Last year, part of the companies were damaged due to a legal decision, part of them didn't, part of the last semester last year. This year we are being absolutely conservative. That being said, comparing to last year where we were not that conservative, we had another understanding.
Wrapping up this first year semester with a rather conservative pricing and zero risk undertaking, wrapping up the digital retails in the same level is an impressive conquest in such a powdered market where our customer is driven by prices, even though we are walking towards conquering them. We are wrapping up the second trimester of 2022 with 3 x higher than 2019 as an online retail, and the second trimester of the year, even though competing in different conditions if compared to last year, we are wrapping up in the same level. It will be a hard year for the digital retails, but still, we've been able to thrive and remain huge in the digital retails. Now in the physical retails, we see a return. We had an important seasonal period between March and April when Samsung's flagship was released.
Here we have. Particularly in the physical market, I think we've been doing our part. Silvio has mentioned that, an occupational cost. We see that we wrapped up the semester with 70% more sales in the physical retails. The margin of the physical retails, we always said that the magical rule within our company is that it is floating at about 10%-12%, and the physical retails is floating at about 30% of profit margin. The second trimester of this year, 30% in retails, six months close to 29%. It's been showing obviously, that we are doing our homework. In the next page, within our digital world, we are bringing a little of a solding perspective. Our financial service arm, nowadays it's a white label card.
We have a partnership with another bank, and we are working towards a new step in our financial services. We have news over the year. We are working towards a more sophisticated operation. If we think that by the end of 2019 to December 2019, our operation was sort of a pilot, and we are wrapping up the first semester of 2022 with approximately 67,000 white label cards issued with a present at about 250 sales points. We had in our physical retails points, as well as others, also Samsung's partners. We have been growing. Just like we have seen the other outcomes that have been shown, we have suffered with zoning and harvesting. Anyway, we believe that we are just in the beginning of a financial service solution that will help us adding Allied's customer, either in physical retails or digital retails.
We believe that we have carried out this first step of the digital white label, and we are working towards sophisticating our products. On the next page, please. We have talked about the company's revenue, how is the net profit. When we check the EBITDA, based on what I said, when we see the white lines, we are growing basically our sales expenditures. Then we have two effects here. One of them is that in our sales expenditure, our digital retails is more expensive. You might have noticed that regard to the second trimester, the commissioning of smart places are charged from companies is more expensive. We have suffered that impact. Summing to that, we have suffered the impact of the bad harvesting of sales in our financial, where we provisioned ourselves. This harvest will wrap themselves up.
We have seen an improvement in the type of customer that we have been selling for the past few times. In the near future, that might reflect as well. Finally, we have more general administrative expenditures. For example, here in our semester, we had BRL 10 million of expenditure. Most of that is the occupation cost of the physical retails, as I mentioned. Finally, the financial outcomes are almost doubled in the expenditures between the six months of 2021, 2022. Part of that is the money cost. We have seen the select growth and all companies are being affected. With the higher supply in the electronic chain, we are also flooded. We had last year a chain in rupture, so it was a very low ground. It affects our capital, and there are a few references here. In the last page.
Silvio mentioned we have three channels to reach our Brazilian customers, either direct customers or indirect customers. We work with multi-categories and even in a hard market scenario where everyone had to give their best to bring their company's outcomes, and we keep up in a very low leverage round. Our leveraging level is. We have been working in employed capital in all opportunities that the market brings us, and we are comfortable that our effort, our strategy is on the right path, and we have room for maintaining the company in its strategic positioning. I would like to leave it now open for questions, and Fabiana will have the floor. Thank you, everybody.
Well, then let's start the Q&A session. The first question I would like to ask Silvio to answer. You've been talking a lot about the B2B strategy to leverage the distribution channel. I would like to know how has this channel evolved.
Thank you, Fabiana. B2B is an area that we believe has a growth driver for Allied, and we've been investing in three verticals, the government vertical, the education vertical, and a third one, which is not actually a vertical, focus on IT. Nowadays, we have meaningful outcomes, and Allied will help us in changing our lives to legal person. We've released a channel. All corporate sales purchasing from Allied are participating of that, where awarding is based on the volume of purchase. Apple has named us as one of their corporate distributors. We are one of the two here in Brazil. We started bringing meaningful outcomes in these three pillars. We've gathered a team with people we brought from the market with experience and knowledge.
We strongly believe that it will bring outcomes to impact the company. The corporate distribution is something which is very popular. We have all the conditions to be a huge player in this market.
Okay. Now I will go to the next question. Marco from XP. I would like to hear a little more on the resuming of sales and the distribution. Could you share your expectation for the short and mid-term in this segment?
Okay, cool. Here is always a hard task we've had. I will take a few numbers, and these numbers are from GfK. GfK basically measures the market sell-out. At least it's a good gauge, what's being sold to the customers. If we look this year in comparison to the last year, a few figures. Smartphone drops 5% a year. Computers drop 18% a year.
Televisions, and also reminding you that values grow 5%. It has dropped, but the price has grown. What influences the total market value? Here it's a rather personal perspective. We had a second trimester, which due to a partial sales anticipation between 2020, 2021, that where people purchased electronic devices to improve their home staying, their home office. Aside from that, we had an additional in economic situation that carries uncertainties, which ended up impacting negatively. Second semester, we believe in a recovery. First of all, because the emergency budget where several Brazilian people had support from the federal government. If we see when people recover their insurance. It demanded, and it has moved the demand for electronic devices in Brazil. It will also impact positively, and we have two factors that are very important.
We have the World Cup, which is always a sales growth driver for televisions, and this year in a very different way for those who know that it will take place together with Black Friday. We believe that the Black Friday World Cup moment will be a high-demand moment. We have 5G, which is being released, and we are already feeling in our stores a very significant demand for 5G products. This is something traditional. Every time the technology changes, even if it's a small change felt by customers, there is a demand due to the interest of customers and the way that internet providers and operators are encouraging that. We have two important releases in the second semester. Between August and September, we have our new foldable smartphones from Samsung. At some point in September or October, we have the new iPhones.
We have also Samsung and Apple, which are always market drivers. We are optimistic with the second semester, and that is my personal perspective. Gustavo, if you would like to disagree, feel free to do so. I think there are many growth drivers for the second semester as well as recovery drivers, and I strongly believe that the market will be a lot more positive in the second semester.
The second question, I will keep with Marco from XP. He would like to ask about Sojitz. What are the main products the company can offer to the customers, and what is the strategy or focus for the company to insert into the business? Gustavo, you have the floor.
Well, nowadays, Sojitz is "financial service distributor." This is how we were able to launch our kickoff from zero. It is rather embryonic. The path we are right now, we are giving our first baby steps, is in order to transform Sojitz in a direct credit society where we are able to. We are making our studies, and it should be a feasible, or better say, natural path. Once we do this, we will be able to have an optimization in many operational costs, and that would allow us to offer our customers different types of products.
I think that the two examples that I would like to leave it here, otherwise, we will start thinking too afar from now. Having some flagged card is something within our radar. We have been thinking about that, and it is not something that we will see within three or six months, but this is something we have in mind, and that would help us out having more recurrency in using that.
We have been thinking about how to make it work in some type of service attached to the online world. We have customers from [Mobcom]. How would we be able to make Sojitz something more connected in offering a different type of service, which is not in our radar nowadays? Gathering our practice. Finally, some personal bank loan that we could offer our customers. These are three examples. A direct credit company gives a gamut of options that we would like to use. Since this is an adjacent business to what we have, we were born as buy and sales of products, we will end up testing each one of these operations. We are very excited, and we have been structuring our teams, our processes in order to, within a few months, reach this second maturity level. This is how I answer Marco's question.
Now the next question from Joaquim from Itaú. I would like to have Silvio answering that. Good morning. Thank you for the call. You have mentioned quickly the topic, but can you give a bit more details on the net margin of 9% of the distribution, given that it is a lower value than what has been presented on the expectation?
Okay. Well, thank you, Joaquim, for your question. Thank you for being here with us today. Historically I will mention 2020 and 2021, and our distribution margin varies between 9% and 10%. During the distribution, and Gustavo has talked about this, there has been significant demand growth, and such growth was one of the factors that led to a lack of products. Such a lack of products has spawned the potential of selling with higher margins between 2020, 2021.
Now, the margin we must consider for the second semester between 9% and 10%. The second trimester of 2022, we had a break on demand. It was a trimestral break. Up to May, we had a good amount of sales, and I believe retails too, because our storaging has moved rapidly. By the end of May, start of June, the demands had pulled the brakes, which brought an increase in our stock. Sales were compromised for the next 60 days. Once the demand pulls the brake, the storaging grows, and traditionally you end up accepting conditions with lower margins in order to keep the business going.
The margin might be considered between 9% and 10%, and understand that the second trimester was in the lower point of 9% and 10% due to this excess in our storage. We believe that by the end of the third trimester, these levels would be fixed, and hence we will be able to return to the halfway between 9% and 10%.
Yes, the distribution is a pro-cyclical business. When there is euphoria in the number of sales, the demand is higher than the offer, and in this case, we are navigating in the upper end of profitability. Particularly, we are in the other step. This is where the brakes were pulled. In this sense, it is no surprise that in this profitability interval, we have been navigating in the lower season. I believe that this last company that is listed over a year from what is first or second, it is natural that the next trimesters, the distribution dynamics is something that I would like to give as a complement to Silvio's answer.
Well, next question, I will put forward to Bradesco, João Andrade, and he would like to know if we can expect more stores closing if the market keeps weak for a few trimesters, if we believe that most of the reparation movement has been finished. I think Silvio could answer this one.
Thank you, João, for participating. Well, we are always making decisions that aim at protecting the business profitability. I would like to share the Samsung stores to store-in-store. In Samsung stores, we have upped up at about 15, 20 points in small shopping centers, which had a difficulty to resume their flow. When we are talking about the reparation, actually that happened at Samsung stores and we had at about 135 stores. That is a number. It is good to kick off again and fly high. And store-in-store closures.
This is a model which is very simple, provided the fact that we are distributor and we have a warehouse that we can make use of. This is an agreement that we do. We have a stand and three salespeople in order to. The critical point to deploying store-in-store is doing its legal person certificate, and the demobilization of the store-in-store is also very simple. We can reallocate these three salespeople to other positions. We bring back the stand. All the stands are standardized. We change their visual identity. It is a low investment, and it is something quick to open or close. Hence we decided to close store-in-store significantly. We have only a few points. Perhaps we will make a decision on these sales points as well.
But the fact is that if the market returns this year, next year, this model is easily implementable and it's easy to return. When you go to the stores, I think you should look at Samsung stores. They are a very different profitability level when you look at the physical retail outcome. Strongly emulates Samsung's outcomes. Will we close more points? No, I believe that Samsung's reparation was it that we've done, and no important sales points were closed. We've closed the Shopping Center Norte, Alvorada, Leblon. The main points are still full force. We've closed certain stores, and I think that's a business model which is sub judices until a demand for lower value products return. The customers buying who are driven by price or for the service, that's what our Samsung store does, and they are driven by more simple products.
This segment is suffering a lot. We understood that it would be better to leave this right now, improve our retail profitability, and return in the second semester if that's feasible.
Next question I would like to ask Gus to answer. I have two questions here, one from João from Bradesco and another from Felipe, and they are asking about Trocafy. So, João, could you share the expectation of cell phones and sales regret for the next 12 months? Are there initial reconditioning performance that we could make comments about? And Felipe is asking regarding the Trocafy's liquid margin, and I would like to have Gustavo answering this one.
Okay. Let me answer by parts. Part of that is something that we are not disclosing to the market. Trocafy is our 1P. It has a website of its own where we have our own media. It's a platform to reach the final customer, and the sales of our used products can be done by these means. But we also have the option of taking this brand and launching that into other platforms. That very step we've threaded is the second step of iPhone Forever, especially if you say that we had other initiatives.
But these customers might decide to give back their phones and renewing the plan, so they pay the last parcel for the former phone. We pick up this telephone, we do a few adjustments, and sell that again. A little more than 40 days that we've just released that, so we are in the first sales and the first trial, so we have plenty of room to reach a cruise ship level.
That being said, what I can tell you is that if you look at our financial demonstration, we reserve part of the sales of these products in our stocks. So we have an accountable provision saying that part of what I sold will be returned. It's something at about BRL 80 million, and that comes from a calculation based in historical benchmarks, what we've heard from our peers, business partners. What I can tell you is that today our provision is a little bit higher than it used to be from the first 40 days, and that would implicate that we would release part of this provision if it didn't have results for the company. But I think it's too early. Together with Itaú and Apple, we are testing the ways to engage our customers on how customers want to be approached, who would enjoy this exchange and who wouldn't.
We are very satisfied by the sole fact that we have been successful in receiving and serving our customers in remanufacturing products and fixing products and resales. That for us, being able to do it all and providing a good experience for our customers and not clogging the supply is what we expected, and we are glad with this. We have had lots of meetings and tests with our Itaú's partners. We have been very successful in this sense. Finally, I could say that the margin we are having will be similar to what we had in our products retails, perhaps a little higher. That for us would be a strategic information that we will have in our digital sales. Thank you again.
Gus, I will tell you the next question from Ana Bispo. The EBITDA profits and accountable profits, do you attribute that increasing costs and legal security with the default guide? Is there any other variable?
Well, part of what we have talked about, I think there is a relevant point here. We are in a very challenging market in a very challenging year, so we are not isolated in the market. We are actually facing more turbulence. Focusing on the question about distribution, part of the sales that we have done in the distribution have a rather lower margin than our recent history. I would say that these two points that Ana put forth with her question, combined with the answer and the cost of money, I think explain by themselves our current state.
I think we have time for one more question, and I will have João's question said. No, sorry, not this one. How are you looking at the main trends for the second semester in terms of ticket volume and performance of the new Galaxy within the three channels?"
Well, thank you, João. Look, the smartphone market is driven by three releases every year. March, April, we have the new Galaxy line from Samsung. Up to two years ago, in the second semester, at about August, September, the Note line from Samsung was released, and Samsung, for two years, is not releasing the Note version, and they are launching the Fold line. Here, now, by the end of August, beginning of September, Samsung will release the Galaxy Z Flip and Galaxy Z Fold, their foldable smartphones. Then September, October, we have the new iPhones. We will have iPhone 14. These three releases drive the market. But the foldable phones, which is a high bid from Samsung.
Samsung will have an investment to disclose this product, make it very successful, believing in the technological leadership in foldable screens. They are a very high-value product. If we take Galaxy Z Fold, the final price will be at about over BRL 10,000. iPhone 14, also. Every time Apple launches a new smartphone, I do not know if that will be, but they normally drop down the previous product's prices, previous versions, and the newest version comes in the highest level of prices. These two very factors that drive the market will drive the average price up. There is one second factor. The race for 5G smartphones increases the average market price. 5G technology, since 5G is not a broad technology, they are at about BRL 2,000. In Brazil, they are costing at about BRL 1,500.
These three factors, iPhone 14, new Samsung foldables, and the race for 5G might drive the mid-tickets of this market up. It will drive sales and elevate prices.
Well, I think we were able to make all the questions. I think we can wrap up this call. I would like to thank you all for your participation, DRI. If you have any questions, our email is ri@allied.com. Thank you and see you next time.