Hello everyone and good afternoon. Welcome to our earnings call as we talk about our earnings for the fourth quarter of 2023, status on our transformation plan, and also the Q&A session. Before we begin, we would like to summarize the main messages that are here in the material disclosed yesterday: the video, the presentation, the numbers, and the overall status of the plan. We want to cover the main messages, so please, let's share our screen. First of all, when we take a look at the key messages for the fourth quarter and we talk about the transformation plan, I want to reinforce that I'm really happy and confident with the capacity for execution that our team has in this transformation plan. So a quick analogy: if you look at Formula 1, for example, sport I really love, we adjusted our car in 2023.
We have a new car to accelerate now in 2024, so it's a new car. There's still some incremental improvements to work on, but they will bring results we expect. So I'm super confident that the results in the bottom line will be delivered with possible positive surprises, and after I'll talk about each of these dimensions. Then we had a significant cost reduction plan, which makes the company leaner, and this seemed to be a very precise strategy because we bet on a more challenging macro scenario with restrained demand that has been confirmed for long-lasting durable goods that have an average higher ticket.
The reduction in the interest rate will take a while to have an impact in our category, so we prepare the company for this challenging scenario focusing on profitability, although we have to give up a bit on the revenue and delivering the bottom line and the cash flow. So this is discipline that's here in the company. We're able to overcome our expectations to bring this lower than 90 days, around 75 days, actually, at a level that's very efficient, the minimum, historically in the company. And obviously, we see the opportunities for some structural changes, more like midterm, to optimize our company with a revision in the mix.
And the fourth point in this capital structure is an important milestone, which is the recovery of the trust levels in the market as the management team set up a plan and considered how we would be able to work on this. And the delivery up until now has been able to allow us to recover this and work with the liability management and also bring in other opportunities for levers in our capital structure. So that would be a lot easier to perform the sales, and the proposed proposals would be a lot less advantageous for the company. And the fifth point is our liquidity level. It's a lot very stronger, which is really focused on free cash flow. It's the first year that we close with this kind of positive free cash flow.
Of course, we have a lot of upside to free cash flow, and we don't have the restructuring costs anymore. I think the main message here is our commitment to profitability, and we're going to keep our commitment to generate value. Generating sales with irrational conditions won't be something we're going to be focusing on. We've been able to keep our market share and even gain market share in some of our core categories, which is what's most important for us. We removed half of our categories, and part of them also impacted our physical stores. We had a little bit of toys, a little bit of cleaning supplies, a lot of 1P, and then we were able to keep this. Basically, furniture, a bit of beauty, and home appliances. Another important message is with the buy now, pay later.
It's very strong and resilient, the lowest nonpayment rates in the addressable markets growing. So we have a lot of demand with potential for growth, and of course, we will be having a new funding model, and we're going to be migrating gradually. And in 2025, we should be able to accelerate this.
So, I'm going to pass it on to Elcio to discuss the financial highlights, and then we'll get into the Q&A, okay? Elcio?
Okay, thank you. Thank you so much, Renato. Good afternoon, everyone. On the financial highlights, we presented three main, first of all, the.
The execution and this transformation plan.
The impact of the non-recurring effect.
The priority of the company with liquidity and the cash flow, and then the capital structure as well.
So this is the accounting effect so you can understand how the actions and the plan has been impacting the financial statement. So we mentioned three categories of events that explain results in this quarter. The first one is the remaining stock. We worked on this to greater scale. And so you can see that in the fourth quarter, it's a smaller impact. And so we have this other third category, which is the DIFAL provision . So overall, we have BRL 622 million in the LAIR for non-recurring topics. Most of them come from the transformation plan. And I think what's most important is to understand this non-recurrence. What we can understand is that we announced these different impacts and measures, and we were able to announce these on the 10th of August when we were able to consider the transformation of the results in the second quarter.
We also saw the need to have this structural cost of the company at a level that's way below, making the company lighter, more agile, and directed to greater profitability and discipline with the input capital. So another important topic, which is the gross margin of 27.6% versus 23%. And so we had an improvement of 4.6 percentage points, which is mainly due to the reduction of the stocks, and which was a lot greater. And the SG&A had a reduction of 4.2% compared to the last year, which demonstrates some benefits of the transformation plan. So if you consider.
which was 17% lower than the fourth quarter last year if we consider the adjustment that we had. So the big message here is that there's still a lot of non-recurring events considering a magnitude of BRL 622 million, which will make the company more agile, lighter, and when we consider the next slide. If we just remember this concept of the free cash flow, as we mentioned, it's generated before the payment of the debt and the compensation of shareholders for the follow-on and the fundraising resources. So that's, of course, where you have the fulfillment of the financial obligations, and of course the most relevant, which was positive by BRL 648 million. So this is a reversal of the trend, and what's most important is that it demonstrates a positive fourth quarter.
As a highlight, we had a cash flow of BRL 621 million above the interest payment in the quarter. This is a clear direction. Why was this stronger in the fourth quarter and the second semester when we made this balance shift, right? Well, this is because you have the impacts of the initiative we started, and some of them are even the stock reductions where we had a reduction of BRL 1.2 billion every year, a reduction of 18 days in our stock levels, even actually below what we had set as a target. We continue to accelerate this monetization process for tax credits. As you can see in the full presentation, we have this sequence quarter-over-quarter that's really focused on the sale of the credits, our reduction of the stocks, which represents lower tax credits at the inflow.
We have a focus on profitability to guarantee greater margins and improvements in your tax credit stocks, and also a big focus on the operation of the logistics and tax situation in the company to maximize everything. So we have the CapEx significant reduction, which is really impressive in 2023. We were able to have BRL 400 million in 2023, which also demonstrates the discipline of the capital in the company. And this does not mean we're not investing in priority company technology and UX, which are very relevant for us to continue to invest and focus on. But it demonstrates that the cash that position is still not the ideal. We're capturing some of the benefits of this transformation plan that are going to be more evident over the next periods. And so we can move on to the next one.
Here we talk about the liquidity and leverage position. So I want to remind you of the photograph we had in the third quarter with the liquidity and the short-term debts, and we were able to have a big effort to reprofile the debt BRL 1.5 billion. So this is all reflected here in this line. And we also increased our liquidity to BRL 3.6 billion with all the levers and everything we just mentioned in the previous slide. So this also places us at a liquidity index, which is a liquidity upon short-term debt to 2.9 times, which is a position that's a lot better than last quarter. And this is an ongoing exercise in the company from the Treasury area here to improve processes and the debt profile of the company. So I'll pass the floor back to Renato. Well, thanks, Elcio.
Just to keep up here, I just wanted to quickly cover the main messages and a bit of what we're looking at up ahead so we can jump to the next slide. The first, well, the main message is looking at the year 2023. You can see this big cycle with an adjustment in the company's strategy to really do the basics well done. The second point is a robust transformation plan. You all know very well, and important levers as well. With BRL 1.6 billion in the LAIR, that we're really confident we're going to be able to deliver these and bring in new levers. A new lever we're going to be adding is the Casas Bahia Ads. So this is a new platform to have retail media.
We've already signed 20 contracts, so we're going to bring in a few hundred million BRL as revenue with this. As I've discussed with our market. And help, and we're going to provide more details as soon as we discuss the quarter. It's going to be launched formally in March. So we already signed over 20 contracts. The second point is the recovery of confidence in the market, allowing us to have improvements in the structure of our capital structure and also a strong liquidity cash flow commitment, making the company prepared with the short-term challenges. So you can see how we are looking at this up ahead. So we're focused on the core businesses, durable goods, which is different than the generalist e-commerce. We cut down a lot of; our focus is on profitability.
So you can see our plan was even considering a drop in GMV by 2.5%. It's dropping more, especially online with some channels, of course, that didn't seem to be profitable. And when you adjust this commercial condition, it reduces volume. So we don't have this kind of commitment. So we have a lot of commitment towards services, and this is also contributing to margins. So we can recover our historical levels. We've been gradually recovering this. Quarter-over-quarter, we are improving this situation, and we have a lot of levers in this assortment. So we can improve these margins gradually and contribute to EBITDA up ahead. So expenses are very important. The material reduction will lead to a new level of EBITDA, which is stronger, and consider this, at a whole nother level, really, of EBITDA.
Then our cash flow is still the focus of the company's management, free cash flow, and we have a lot of comfort and confidence when we talk about labor claims and monetization of tax credits. Everything's really coming through this plan, and monetization is a little better even with some potential upsides contributing to free cash flow for 2024. The capital structure is what we mentioned. The recovery of our confidence allows us to have new levers. We didn't have the sales of strategic assets, and now we're getting back to negotiations. That's how we have less of a discount to perform some transactions. But these are operations that are more like midterm to perform throughout the quarters, nothing immediate right now. So then up ahead, where do we want to reach? And we actually mentioned this in the past when reinforcing this.
Now we want to be the best retailer that's a specialist for electronics, furniture, and home appliances, offering a full journey. We've already decided this, our efficient journey, customer experience that's customized and really attractive for this kind of product, an efficient operation, physical and digital, equitable, sustainable. What does this mean in practical terms? We want to be leaders in our core business. We want to keep our relevance when we talk about core categories. We want to be the consumer's first choice for destination, and we want to continue like this. To be like this, we have to be competitive. We're going to use CRM to leverage our sales. We have a really extensive customer base, and it's the most efficient channel we have to attract customers to our site and store.
Then, profitability, robust margins, corporate that's really lean and can generate more value than other competitors. And the fourth pillar, which I had to mention, is culture. We reviewed our values to rescue culture, and we wanted to highlight which values these are. So, dedication to customers' passion towards our people, delivery goals. We want to make a difference. And in everything we do, austerity, which needs to be a simple and efficient operation. So we wanted to start with a Q&A session now. I'll pass the floor to Gabriel.
Hi. Good afternoon, everyone. Thank you, Renato and Elcio. I'm going to call on our first question, from Felipe Negrão from Citi.
Hi there. Good morning. This is Renato and everyone.
On Citi side, we just want to understand a bit more of the short-term points, right, of the monetization of the tax credits, if you could explore a bit more of this perspective for this, for 2024 and 2025. And the second point to explore is we have a bit of a difficulty to see the adjusted EBITDA because quite frequently we're distancing ourselves from the accounting EBITDA because of these one-off points we had throughout the quarter. So maybe when we talk about the restructuring plan for the company. And I wanted to understand if we can expect for the first quarter of 2024 this, these big auctions and different special sales and what we should expect in regards to this, right, and everything that's involved in the last two quarters. Thanks, guys.
[Foreign Language] Legal, obrigado. Deixa eu começar aqui.
Great. Let me start off here with the credits issue, and then after I will pass this on to Renato. So about the tax credits, I think we shared this quickly, and we're very focused on monetizing this with the validation and certification process and sales to third parties and all of the other initiatives operationally and internally on this topic. So it's a gradual process. It does not only rely on the company. There's a process to certify the credits so we can have this sale to third parties. And we had some strong acceleration in the second quarter. We continue to be strong, and it's still early to say, to talk about the full year because it doesn't only depend on the company, but we can say we're relatively in line with 2024.
And of course, it depends on, we're going to update you guys gradually, but the idea is that we should have something quite similar and in line with 2023. Well, getting into the second question, Just as, as you mentioned, on the 10th of August, the third and fourth quarters are really where we'll have the biggest impact on the transformation plan. So we're not seeing these levels of impact up ahead. And when we look at the first quarter, it's a lot cleaner. So that's why we were saying that the market will have to look at the first quarter and see what's this new motor I talked about, right? So you don't have, like, reorganization processes anymore, writing off assets and firing people and all of this. But this is not material. We may have to close down a few things, but very insignificant, not anything at these levels.
So we're going to have an adjusted EBITDA to look closer to the accounting value. And of course, we can see this easier with the company's reality. So on the P&L side and also the cash flow from the first quarter onwards, we'll start seeing a whole other trend. When we talk about the improvement. Margin, the EBITDA margin, it's a construction process gradually. The plan still has a lot of levers. We're like at 35% of execution. So we have a lot to be done still, and that's why it'll be improving quarter-over-quarter.
But I'm convinced that when I look at the target now for a third quarter for it and deliver this, and, maybe some levers we'll be able to anticipate, of course, and be prepared if we have any other problems that we can really deliver the plan within what we planned for and have a company that's profitable at the end of the year, getting into 2025 with growth possibilities. So this is what we're looking at without any negative surprises in the short term.
Well, super clear, guys.
Thank you, Felipe.
Thank you, Felipe. Our next question is from Irma Sgarz from Goldman Sachs. Irma, please, you may proceed.
Hi. Good morning. Good afternoon, actually. But anyways, I wanted to talk about the two pillars and our adjustment. Restructuring, and one is the, adjustment to the impact of the stores.
I understand we already advanced a lot with this last year and how much is still missing here. And the other one is the pricing pillar, which I think is this project that's still on its first phase. As you look at that poll you showed us on the slide, so I wanted to get a feel of how this has been advancing. Thank you.
The store network. Well, remember, a lot of the cost would be the cost of the excess stock, which anchored on cost of capital. And so, of course, that impacted the net margin. So that's why we adjusted this. Well, it was on our calculations that was negative, even with these adjustments. So depending on the performance of the vendor, there are some stores that, depending on their sales performance, can be profitable.
And if with this new commercial condition, you don't increase the penetration of services and you can't overcome this watermark, we could close them down. So do you expect something? Well, then we're working with a base scenario, keeping them profitable and open. So if you see this is not going to work, then we'll just close them down. And so the biggest part is done. The structural aspects are done, but eventually you'd have to assess this with the normal market conditions where you're going to have stores that are going to be opening, closing. But this year we won't open up stores. Maybe 20 stores we could close down. We're going to try to recover them, though, to avoid their closure. So the other pillar that's very important, we talk about pricing and mix.
The company has a pricing model that's really focused on the industry reality, and that's when you have these incentives as well, allowing us to be competitive in moments like Mother's Day and other periods that are really strong for retail. The industry is being pressured also to invest in the transfer this to consumers, guaranteeing our margins. But we still have a lot of room for pricing dynamically, and also the types of stores online, with different consumers. And so we see this lever to bring 1-2 points in the margin. But of course, this will take a while. We're piloting a few categories. We have some algorithm work to have a pricing model that it's not a generative AI but a machine learning basic structure to have a more customized pricing system that's more granular, looking at the sale items, right?
So when you look at the long tail, it's a lot very relevant, and we have a lot of opportunities to increase prices in certain items and gain margins, and in others, guarantee good margins but accelerate the conversion and sales. So this sits hand in hand with the mixed leverage, with the clusterization, where we also had almost all of the products in all stores, and it wouldn't make sense to adjust certain SKUs to be more quick-moving than having this adequate product mix for each type of store, which really simplifies our efforts, makes it easier to have logistics, optimizes logistics, and also helps us with our pricing system and even gives us greater ease with the sales teams, to know which product is a winner in that category store.
And then as soon as the customer arrives, they'll have the option of the customer and what's recommended for the store of what generates more margin and brings extra credits to the customer. So we're still going to see the overall impacts of this more towards the second half of the year.
Perfect. Very clear, Renato.
Thank you so much.
Thank you, Irma.
Okay. Thank you, Irma. Our next question is from Nicolas from J.P. Morgan. Nico, you may proceed.
Thank you, so much. Good afternoon, Renato. And so I have two questions, actually. The first one is about the buy now pay later, the crediário. What's your guys' mindset on the rollout of the FIDC, financial instrument, and when do you imagine this will already be active in all of the Casas Bahia stores? And on the other hand, what's your mindset regarding the CapEx now in 2024?
You mentioned you're still investing in certain categories and certain priority initiatives throughout the company. And how should we look at this when it comes to the number of investments, right?
Okay. Thank you, Nico. When we talk about the crediário or the buy now pay later, it's. When we talk about the funding, then there's some issues where at a silent period we can't talk about much in regards to this, but, so it's in progress. When we talk about the CapEx, we had talked about the sub-BRL 400 million, which we can still use as a number. We have like a peak, but when you look at the fourth quarter, we were able to be a little bit lower than what was initially the plan. And we understand this is a pretty good pace for the overall situation in the market.
So we work on the investments required for the customer experience, optimizing the digital journey, improving the products and services and credit, a little bit of the improvements in the store systems and logistics. It also reduced costs for the company, but it's a CapEx that does not consider the store expansion and that we consider this level below BRL 400 million in line with the fourth quarter of 2023.
Okay. Thank you, Renato.
Thank you, Nicolas. Our next question is from Gustavo Senday from XP. Please, Gustavo, you may proceed.
Hi, guys. Good afternoon. Gabriel, Renato, Elcio, thanks for taking my question. I have two, actually, but my question is more about the working capital. You mentioned major strength in the stock control, and I want to look at this from the supplier's perspective. Have you had any support or help from suppliers?
What can we expect for this throughout 2024? I understand that these are two lines that are probably in some way. And the second question is, when you look at the channel mix, we can see some adjustments in 3P and in 1P. And I want to understand a bit more about the contribution margin of these channels at this point in time and how this has been evolving throughout 2023 and how what you expect as improvements in 2024.
Thank you, Gustavo. As we talk about the working capital, what we're able to deploy here is really sustainable. So it's about discipline with capital allocation and buying what will be sold. So this stock level is what we plan to work with. And with this, the purchases also of suppliers will only.
According to the seasonality we have in the year, according to the events, we drive a little more to have Black Friday, and all of this affects the purchase from suppliers. But of course, this, there's no, like, special additional help. We've been operating well, and now it's structurally better, when you talk about the working capital in the company, and this is what we're going to keep. Then the second question about the contribution margin, 3P, we were able to adjust to have a contribution margin that's positive and have results in the 3P business that are already stopping the cash burning and reaching break-even. So there's still opportunities. We can improve the service conditions and offering better credit and services, not only when it comes to insurance, but also services to sellers because fulfillment continues to grow. The delivery rates also improved a lot.
So we continue to extract, to attract more suppliers from fulfillment. We also had this new model. It's almost like a dropship model. This 3P has been growing a lot, contributes a lot to the contribution margin overall for 3P. But of course, part of this gets into the blue ocean there, and then you have adjust the contributions to the company's margins overall. When you look at the size, the contribution margin is for 1P and 3P. And the main that 3P delivers a lot more ROI considering I have employed capital. The employed capital is a lot smaller because it's not, it's more related to the structure, the CapEx, and the systems, etc. So from a ROI perspective and a TIR, 3P is a lot more of an advantage.
It provides better profitability on investor capital, but a similar contribution margin when you look at the LAIR, etc. It's very similar.
Okay. Thank you, Renato.
Thank you, Gustavo.
Well, thanks, Gustavo. Next question is coming from Eric from Santander. Eric, you may proceed.
Okay, guys. Thanks for taking your questions. On our side, we have a follow-up here, the working capital. I think you guys discussed the stock and supplies a bit. So just to discuss the receivables and how you're looking at this dynamic, anticipation of some receivables, and what would be the ideal volume at this point in time, from your perception, and also when you look at the leverage aspects a little more, give us a bit of a vision on how you're seeing this in the end of the year. Elcio mentioned this in the beginning of the work, when it comes to extensions.
But if you do have any target for the net debt EBITDA, I think that would help us to build this bridge until the end of the year when it comes to profitability and advancing. Thanks, guys. Okay. Great.
Thanks, Eric. Let me get this one. And on inventory. But the working capital, generally, when you talk about the stocks and suppliers, generally, when it comes to receivables, it's a dynamic of the payment means that we receive from customers. We've been focusing a lot on upfront payments and capital, the installments free of interest. And we focus on this a lot since we use this mix a lot with the Buy Now Pay Later system. And of course, we're going to be balancing this out through the volumes and the needs we have, and we'll optimize this over time.
So there's not like a magic formula related to our sales and the payment mix. And the sources and costs of the funding that we have versus other alternatives. When it comes to the leverage, I think we're going to have a process that starts off really with the increase of the EBITDA in the company. So as the transformation plan has its benefits here in our P&L, gradually in a more consistent way, then we'll be able to have a bit of this improvement in the efficiency in the cash versus what we are at today or the EBITDA. And of course, it'll improve over time. Okay. Great. Now, just one additional point that I think is important. When it comes to the receivables, we've been encouraged to encourage Pix a lot. And what's interesting. And normalize the.
But we'll have a bigger share, a Pix versus what we had in the installments, free of interest. So the gross margin is going to be interacting a lot more with the LAIR margin , which was actually impacting our LAIR in the company. So when you normalize this, it's going to be a lot healthier than the historical levels because you'll have a Pix percentage that's a lot greater. And then, of course, you have the treasury strategy, and sometimes it's going to be a cheaper funding model that you'll end up using. So it's pretty much it.
Okay. Thank you for the answers.
Thanks, Eric. Now, I'll call Andrew from Morgan Stanley. And Renato, you can also answer this in Portuguese, okay? Andrew, go on, please. Thanks. Andrew, you may proceed.
Thanks very much for the questions. Just a follow-up on the 1P to 3P mix.
You mentioned the categories migrated. I'm just curious, how meaningful was the drag for 1P and then the uplift in 3P. And then just if we take a step back on the marketplace, it'd be a group. [Foreign Language] Mais o marketplace, mas eu não acho mais específico, né? No quarto tri , então eu tenho que ter essa visão sobre 2024 e como isso encaixa para 2025 adiante. Obrigado. Obrigado, André. Vou responder em português para que todos possam acompanhar. And also demonstrating the growth in 3P and the variation between the third quarter and the fourth quarter, and what we should expect from our 3P if we look up ahead in 2024 and. Marketplace had a structural change because it's very concentrated now in some core categories.
Although we have profitability in non-core categories and we have the possibility to grow our non-core, that's not where we're going to be allocating our capital. I think Casas Bahia Ads is a platform that allows the seller to add cash to leverage sales in our platform and just grow a bit of our non-core, but it's not where we're going to put our own capital into to make this happen. We saw 3P as a channel that's organic, that can work, as something that's compatible with our 1P. The migration happened. There are some SKUs that make sense to be present in the 3P, and Casas Bahia Ads can bring additional growth to 3P.
So when you look at this in the long term, we can understand that since we have 100 million customers in the base, over 37 million accesses, we have a pretty big active audience. And so with this, we had one supplier growing 24%, two suppliers that were different also with growth above 20%, and now.
[Foreign Language] Temos 20 contratos que começam agora a partir de abril e aí vão entrando mais gente que pode estimular, mas o grosso que a gente está fazendo nesses contratos também são players de categorias core, é que é onde a gente entende que o nosso 3P tem mais força. Nosso objetivo não é competir com os demais, é 3P diferente, o ticket médio maior e trabalhar para aumentar a penetração de serviço. É isso que a gente espera, então ele ficar mais proporcional ao nosso core, é da companhia, tá? Thank you, Andrew.
[Foreign Language] Nossa próxima pergunta é do Iago Souza, da Genial. Iago, pode prosseguir. Obrigado. Opa, boa tarde, pessoal. Obrigado aí pelo espaço. Eu tenho 3 perguntas aqui do nosso lado, tá? A primeira, eu quero entender pouco aí sobre o economics dessas lojas, do fechamento de lojas não rentáveis. Se vocês veem esse fluxo indo para outras lojas em raio próximo, ou se vocês sentem aí que esse fluxo é fluxo perdido e vocês não vão brigar por ele aí com a concorrência. A outra pergunta em relação à readequação dos CDs. Vocês têm mais 10 centros de distribuição aí que vocês pretendem readequar. Como é que está sendo feito isso daí?
[Foreign Language] Se vocês estão se desfazendo de parte da área deles em termos de impacto de despesas e se a gente juntar ali junto com o fechamento de mais 20 lojas, pelo que eu entendi, ao longo de 2024, a gente deve ter nível de despesa de BRL 150 million no trimestre. É algo que faz sentido? Pode ser pouco maior, pouco menor. E a última pergunta é sobre o DIFAL. Então, sei que foi algo que acometeu ali o setor no trimestre. Não era algo que a gente projetava, até por conta da visibilidade. Não dá para projetar esse número, mas entendendo daqui para frente, foi provisionado 100% desse valor ou vocês entendem que pode vir a ocorrer algum outro nível de provisionamento aqui? Obrigado. Obrigado, Iago. Vamos lá. Primeiro, lojas fechadas. Aqui a realidade é diferente de loja para loja, tá?
[Foreign Language] Todas elas, a gente tem uma loja na cidade, algumas têm no quarteirão. Então, a gente tem local que a migração foi de 50%-60%. Nenhuma foi mais do que isso, tá? Mas alguns locais, a migração foi 20%, 10%, é pequena. Então, de fluxo, a gente até não vê. A gente vê na conversão de vendas uma melhoria, tá? O fluxo, ele está muito impactado em várias regiões pelo mercado, né? Quando a gente pega assim, é janeiro, a gente teve fluxo mais forte na liquidação, que é o início. Depois diminuiu, fevereiro já mais fraco. Aí, março, o início, Semana do Consumidor , foi bem forte a primeira quinzena. Depois ele esfriou de novo. E aí a gente vai apurar essa migração específica de uma loja para outra. É, não é trivial. A gente está considerando aqui que perde bastante dessa venda.
[Foreign Language] A gente colocou lá que podia perder tudo. Na prática, acho que 20% aí migra, é uma coisa pequena. São lojas pequenas, né? A gente não fechou nenhuma loja grande, então não é tão material assim. A readequação dos CDs, o que tinha para devolver, tem 2 CDs, talvez, que a gente pode resolver pagar uma multa contratual. O restante, a maior parte, a gente está sublocando uma área do nosso CD. Então, as despesas são menores. As grandes, a gente já gastou, já readequou, movimentou tudo e deixou o espaço vazio que agora é só sublocar. Então, a despesa, a maior parte já entrou. O que tem agora é muito pequenininho para ficar ao longo de 2024. Então, quando a gente pega a sua ponto lá de fechamento de loja, CD, se teria BRL 150 million.
[Foreign Language] Eu acho que no ano todo, se você pensar em BRL 100 million, é mais perto desse número, tá? E que pode entrar ali da readequação e de eventuais multas e de fechamento de loja, fechamento de CD. Mas o grosso material aqui, a maior parte, é a maior parte mais relevante, é a readequação via sublocação. Então, a gente está em conversa com o mercado, já tem propostas, obviamente, tentando otimizar. E o outro pode fazer sentido ficar vazio. A gente fica com a opção de poder reabrir.
[Foreign Language] Eu só desliguei todos os colaboradores, desligamos ali os contratos de terceiros e a gente fica com a operação de entreposto, que é custo muito mais baixo do que CD, e fazendo entrega direta de CD maior que estava mais longe do cliente, mas conseguindo entregar ainda em 30 horas ou, no máximo, 48 horas, que a gente entende que é prazo razoável, bom para a nossa categoria, tá? Do DIFAL, a gente realmente é fator novo. Pode ter reversão, né? Lembrando, isso aqui não é definitivo. Os advogados insistem que ainda é fator possível, ou seja, probabilidade maior de ganhar do que de perder. Mas, pela área técnica nossa, discutindo tudo aqui, foi o valor que a gente entendeu como provisão razoável, eficiente e que tem que fazer nesse momento. Aí não sei se o Elcio quer dar mais pouquinho de cor aí sobre DIFAL.
[Foreign Language] É, deixa eu colocar. Acho que o importante, é, de fato, aqui, Iago, nosso, ele não tem impacto caixa. Nós temos aqui aproximadamente BRL 340 million de depósitos judiciais que, no final do dia, ao término desse processo, qual seja a sua decisão final em todos os aspectos, podemos até ter, é, benefício, né? Uma recuperação de caixa advinda desse levantamento desses depósitos judiciais. Então, acho que, é, qualquer que tenha sido o valor, foi 220 aqui. Ele é evento não caixa e a gente não espera que tenha consumo de caixa oriundo deste tema de DIFAL 22 . Perfeito. Obrigado, Iago. Perfeito. Obrigado, pessoal. Obrigado, Iago. Renato e Elcio, a gente não tem mais perguntas, então a gente vou passar a palavra para vocês fazerem o encerramento, tá bom? Muito obrigado. Pessoal, acho que a gente procurou aqui reforçar, né, as principais mensagens do ano.
[Foreign Language] Acho que a gente está bem feliz. Acho que deixar uma mensagem clara aqui no final é: estamos felizes, confiantes com a capacidade de execução do time. Acho que tem entregas muito importantes ao longo de 2023. A gente já tinha falado com o mercado e já sabia, né, os números de P&L seriam impactados por esses custos de reestruturação. Alguns desses gastos, o payback é de 12 meses, mas eles eram necessários para a gente poder ter uma companhia leve, eficiente, rentável em qualquer cenário de demanda, não ficar dependendo de crescimento e de uma escala muito maior do que a atual para poder gerar valor. A gente consegue agora ter uma companhia que vai gerar valor mesmo em cenários de mercado com demanda pouco mais reprimida. Esse foi o nosso objetivo. Estamos satisfeitos até aqui, obviamente, com a consciência que temos desafios de curto prazo.
[Foreign Language] Tem muita execução para ser feita ainda, mas a execução vem vindo num ritmo bom. Hoje, muito mais confiante, muito mais leve, muito mais animado com o futuro da companhia, com o que a gente tem para viver em 2024. Então, agradeço a todos que confiaram até aqui e sei que o início foi mais difícil. Entramos aqui numa nova fase aí para começar agora a mostrar boas notícias a cada trimestre, com melhoria gradativa a cada trimestre. O bom é que o próximo trimestre é mais rápido, né? Daqui a dois meses já está falando de novo e aí pode dar o update para vocês, é, mostrando por que que a gente está confiante, por que que está melhorando e como que a companhia vai ser vista lá no final de 2024. Muito obrigado, viu, gente? Obrigado a todos. Boa tarde.