Earnings Call: Q2 2018

Jul 24, 2018

Ladies and gentlemen, thank you for standing by. Ladies and gentlemen, please. Thank you very much. Good afternoon and thank you for waiting. Welcome to Via Valrus's conference call to discuss the results of the second quarter of 2018. This event is also being broadcast via webcast and it may be accessed at www.viavareso.com. Br/investorrelations. Where you will find the respective presentation as well. The slide selection will be managed by you. Call will be available on the website. We inform you that the company's press release about its results is also available on its Investor Relations website. This event is being recorded and all participants will be in listen only mode during the company's presentation. After Via Varejo's remarks are completed, there will be a question and answer session when further instructions will be given. Before proceeding, we would like to clarify that forward looking statements that might be made during this call in relation to Via Varejo's business outlook operating and financial projections and targets, our beliefs and assumptions of the company's management as well as information currently available. Forward looking statements are not guarantees of performance, involve risks, uncertainties and assumptions as they refer to future events and therefore, they depend on circumstances that may or may not occur. Investors should understand that general economic conditions industry conditions and other operating factors may affect the future performance of Via Varejo and lead to results that differ materially from those expressed in such forward looking statements. Now we would like to turn the floor over to Mr. Flavu Diaz, CEO of the company. Good afternoon everyone and thank you for participating in this call. I'm with Paulo Nagato, our COO, Felipe Negro, our CFO and Industrial Relations Officer and Isabel Branco, our Human Resources And Sustainability Officer. In this quarter, we gave another significant step to transform the company with the implementation of our new store system called VMIs. VMIs is an important tool in the development of our functionality And this is a platform that consolidates and potentializes all the initiatives developed so far, such as our new compensation model, the site and marketplace catalog offer via Unico Or Singlepad and also the integration with our website and with our web, which is already in soft launch since July 20th. We are transforming our sales people into sales consultants further enriching the experience on the part of our consumers with an increase in participation together with a high return for the company. Another important step or carried out in the second quarter, the conclusion of the development and implementation of system integration between and among the companies We have already started the depletion of inventories in the old system in a matter of weeks, still within the third quarter, we will be operating the company based on 1 single system, which will allow us to have more efficiency that the control and above all much more favorable conditions for the strong advancement of Multichannel operations. And the 2nd important step of EMI's will be the possibility of having credit card credit operations with the online channel. Now it's only available for the SKUs present in the brick and mortar stores and expecting to insert part of the population in the online market, BMI's and our website with the use of credit operations or the credit pay book and we intend to launch the pilot project by the end of this year. And in this quarter, we also made steps through the improvement of our level of services and the reduction of the delivery costs reaching 30% participation in online sales in the main categories and also adding 1000 postal offices or postal agencies for pickup points. We reached 18 units of hub stores that deliver the last mile and that deliver a reduction of 80% in the time for delivery on average, mostly due to the use of a blood sugar platform for this delivery continuing with our service level team, I would like to say that we continue to have a strong evolution shown by the higher highest levels of NPS that we have ever had in our e commerce with an average of 70 two points in this quarter vis a vis 58 in the last quarter. Higher than the international benchmarks and also because of the evident improvement in the 3 banners. On the expansion of our operations, we opened 11 new stores in this quarter, Then in the smart format at 1 kiosk and besides due to the performance of this kiosk in April we will accelerate the expansion of this model still within 2018. For our full commerce platform, we added to our logistic infrastructure to our stores, the Ouichira hospital or click and collect And as I said before, now in July, we started the soft out of our new app. It is lighter. It is faster. And already with the via Unica, that will transform our whole communication with our customers. Our new data strategy that is improved by means of Yaronika start to show positive indicators such as the results obtained with use of the predictive model that suggests the product that have the highest probability of being purchased by each client, and we included products and prices inventory means of payment in the last 5 years, and we will implement this with over 120 points internally and externally. And the next best offer will be embarked in the VMI system. And recently, we concluded this logic of best offer for search engines and we doubled the conversion rate for the airlines that were impacted and this shows how powerful this tool will be. The expectation that we have is that this tool will read half of the qualified base of over 660,000,000 clients that we have over the second half of twenty eighteen. I would like to mention that June was 1st month in which we fully implemented the recommendation of the new mix that resulted from the analysis that we carried out with data scientists over our historical base and this suggests the optimization allocation of funds, combining channel, credit category and geography. But we still need some fine tuning, but we already know that it has a very good return on investment and also the digital transformation of Via with the decision of unifying our commercial logistics and areas that now report directly to the CEO of the company. Thus, the Executive Board is made up by me as COO, Paulo Dania, as COO, CFO and IRO, Advisor Elbrancourt as Human Resources And Sustainability Officers. Beside the CEO, positioned that we will be announcing very shortly and we are sure that this new structure will bring about more agility for decision making and for all the teams, making the evaluation, a benchmark company in the omnichannel activities and with a very good client experience and being the ideal partner, both for sellers and for partners. And I would like and suppliers, and I would like to talk about our engagement survey with an evolution of 15 percentage pointsvisavis the survey of 2017. We reached 80%. And the survey had the participation of about 40,000 people, almost 91% of our employee base and that shows that more and more we are an engaged team in order to continue in this journey of transformation. Now I would like to to talk about the Let's start talking about our results of the second quarter of 2018 and the outlook for our business. On slide number 4, in the second quarter of 2018, we delivered growth in our consolidated net revenue of 5.1% reaching R6.7 billion dollars. In brick and mortar stores, we had a growth of our net revenue of 6.5% and online, we delivered growth of 9.4% in our GMV in both GMV. In the second quarter of 2018, we had the 2.0 model and the new Movu 2.0 and a new compensation model in the second half, we will conclude the VMIs, our new sales system. With CRM and the catalog of the online product in the second quarter we also saw a significant increase in traffic. This is very important for mobile because in the third quarter, the new app and the CRM will be fundamental in order to leverage our sales on Slide number 5. Invoice GMV, 3P growing 27.5 percent, evolution of the GMV, 3.4%. The Click and Collect continues to show an important evolution reaching end of the online sales in the main categories. Click and Collect is very strategic for Via Varedo. Once it makes it possible for us to have a better client service with a lower logistics cost and the possibility of upsell and cross sell. Both our products and financial services as well, very important for our profitability. As flavio mentioned, we have 2000 collect points, pickup points. 1000 stores and 1000 postal agencies. On slide number 6, the World Cup had an important impact on our product mix products. So then the second quarter, then increase, a very big increase in the participation of televisions, which have a substantially lower commercial margin. And as a result, gross margin dollars dropped by 31.2 percent from 31.2 percent to 28.9 percent. We had efficiency gains with SG And A in many lines, 26% going to 23.2% of our net revenue, legal and provision for loan losses had an important impact in the better assignment credit and better collection resulted into a very important reduction in general expenses. And the project that we launched with our legal side started to bear fruit with civil and labor claims being reduced and closing of more of these claims as well, clothing and supplement and we still have many projects in order to increases for the company without hindering our client service and without hindering the delivery of important projects for the future of the company. As a consequence of our effort, we had the 6 quarter of EBITDA margin vis a vis the previous one. Our EBIT adjusted EBITDA margin, 5.1% going to 6.1%. On slide number 7, the net financial results before the restatement was from 4.1.2 percent of the net sales, and we had an important evolution in our net income and the loss that was BRL 85,000,000 in the second quarter of 2017 became a net income of BRL 22,000,000 in 2018 the highest ever net earnings since 2014 in this quarter. The company keeps a very good and sound financial position with net cash of BRL 2,000,000,000 We had a positive cash generation in the period, although we are operating strategically with higher inventories and with a high level of CapEx going from 32.8 in the second quarter of 2017, to BRL157 1,000,000 in the second quarter of 'eighteen. Now we would like to open for questions. Mr. Thiago Macruz from Itau BBA would like to ask a question. Good afternoon. My first question has to do with the income tax we expected a worse situation vis a vis last year. But are you of the Synova losses, do you already see any benefits being generated because of these credit And regarding your loan losses, you talked about the year on year figure, are you going to maintain this at this level? Or is there anything in this quarter that could be seen as a one off situation These are my two questions. First question was about the point of sale. He's asking him to repeat. The accumulated losses of the CNO operations. The translators are not hearing the questions or the answers in fact. We had a better line of provision than in the first quarter, and there was this mismatch problem. We are working with some initiatives in order to help the operation as a whole. Regarding the allowance for loan losses, there is nothing one off in our allowance for loan losses. What we are doing is the change in the credit policy that we had in the past and also in our collection activities are collection activities are much better now. And in online, we have a new credit policy, which is more strict and that should give us a better situation in terms of allowance for loan losses. And quarter on quarter, we have been improving this consistently. And So we can work with this improvement and this should improve from now on. Mr. Richard Castekart from Bradesco, also had the question. Clearly, it's too early to talk about the soft launch of Cabas Baliya, but I would like to know more about your expectations. Regarding the app launching in terms of sales in this quarter, this coming quarter end. Are you also launching Astra and Tontoprio app right after Casa Salias? Or are you going to wait a little bit? And my second question, I would like to know about the competitive environment. In the first quarter, you said that it was a little bit harsh, especially because of the won't be. And I just would like to understand your opinion about the second quarter. And now turning into the second half of the year as well. Well, Richard, thank you very much for your question. We do have a great expectation. We are working on this project over this year. And we are sure that we have, on the hands of our clients, a product that is of a great quality. It's a lighter product that faster. It has functions because this is a native app. It allows us to have a a customized access, we can communicate to our clients, and we can drive all that data intelligence that we have built with VAONICA. And we believe that in addition, of being an important sales to a new sales channel. We believe it is going to play a new role. It's going to go beyond that. It will have a positive impact to the client's journey in the store and will increase the conversion in the store. The clients that deals in the app will be able to have a better interact with the store environment. We'll have information about products, we'll have access by geolicalization to opportunities of sales based on that brick and mortar store. So this is going to be an important tool for us. So that we can integrate all that journey. We do not disclose how much we are expecting in terms of driving sales, considering that, but we do have a great expectation. We will be investing a lot and the launching campaign so that we can increase the number of downloads. And obviously, to provide incentives so that those people that actually download the app will have reasons to keep the app installed In addition to investment and advertisement, we understand that we have a Salesforce extremely trained to be ambassadors. Of the sale of this app. And the installation of this app for our store audience. We are working with incentives for that as well. So this is a 360 degree, and paying it will involve all the company so that this app, in fact, does have a great importance to us starting now. We are just doing the fine tuning now. We are just working on the final detailed, but all tests have been running very well. It's going fine. We understand that will be stronger in Kazakhstan now. And after that, obviously, we'll develop up the other apps. But right now, we'll be focusing on cabozantaya knowing that a lot of what we have been doing for cabozantaya will be able to take to the other banners, so we'll not be starting from scratch. Again, we will have some customizations to do. We are on track, but right now in the beginning, we'll prioritize Casa's full speed. I think the competitive environment is still there. We did have 2 important events in this quarter. Which were Mother's Day and the World Cup naturally a few actions where where you see a lot of promotion activity. And obviously, it was not different. We did not have the same special factors, the same special happening that we talked about in the first quarter. We cannot say that we did have those 2 issues that you mentioned. But, yes, because of the seasonal events and also because of the high demand. We understand that this was a harsh and competitive environment. We were able to keep following our strategy to keep sustainable growth. But we understand that this is a scenario that is going to be constant from now on. We do not expect a significant change for this year. Great, Fargo. And if you allow me a quick follow-up, with Philippines now. Can you give us a little bit more color about these CHF 62,000,000 and other expenses exactly what is involved there, what is under that line for the quarter. Good afternoon. So what we have in this quarter is a follow a difference vis a vis last year, but we have the following. Some issuances here in the company. This is the first topic. We had some oscillations. The second important topic is that for some stores, we are not expecting a positive profitability. So we have a restructuring cost involved and that will be forward. So this is already provisioned to close those stores. We have already carried out a planning to close some of these stores. That's why we have provisioned it. So these are my 2 main topics to explain that. Mr. Robert Ford from Bank of America has a Good afternoon, everyone, and thank you very much for taking my questions. My first question, if you can tell us a little bit about the electronics com or S1P seems to be down. And I want to understand how you think about having a better offer at 1P. And second, now that you're going to Global Mercado, how we will determine the representation of the Board of Directors, please. Hello? Well, let me talk about the electronic commerce. As you mentioned, there is a lower growth in 1p that has an important relationship with the truckers' strike and also the environment of the World Cup in the second quarter. So we did have an increase in TV sales, but we saw lower appetite for tones. Therefore, this impacted our figures. The strike did have an important impact in the electronic commerce, although that was mitigated by the Click and Collect and our stress is with Via Varejo's strategy of having a broad assortment to become a shopping destination and not only being strong in the core categories, which are traditionally in our banners. So Do you have a strategy of leaving some categories? No. That does not represent that strategy. Actually, We see that we are more equipped now, as Flavia said, we now have 2 such as app, media intelligence tools that allows us to accelerate our marketing in an efficient fashion. And our strategy is to grow in 1P and 3P. What about the representation? When we go to Novo Mercado, that won't change. Now we will need to have 2 independent board members. We already have that. Hernato Carvalho and Alberto Gucci is independent members, so nothing changes with the Novo Mercado Philippines. Is that proportional that, that participation, if you have 9 board members, and if Pao de Acucar has 43% of shares. They will have 4 board members. Are you going to change that number? The representatives from Pandas occurring? No. No. We are not changing anything in the board. It's going to be the same board. What about in the next dose? Would you have proportional votes? Yes. It will be the same. Nothing will change. Okay. Thank you. Mr. Gustavo Oliveira from UBS. Also have a question. Hello. Good afternoon, everyone. I have two questions. 1, still about the dis innovation process that you are rolling out now and a lot of the things are just starting in June and up to the end of September. So my first question is very specific about VMIs. Are you already including there the software that you were going to change the software for the storefront? And at what stage of the process are you at? And do you already have a way to measure an impact? I know you're just starting with the app, but some of these initiatives might improve the conversion in your flow and in your traffic do you already have a way to measure that? I would like to know about some figures. And if you believe that you were going to have better sales in the 1st in third quarter. And then I will have a follow-up question. Gustavo, this is Paulo. Thank you very much for your question. We are just concluding the rollout of this new platform in 100% of our stores now in July. This platform should provide us a productivity gain because it will simplify the purchasing journey of this client. This is a simpler and faster process that usually allows us to have a productivity gain. And now, so in the availability of our team to serve our clients. And also it brings technology that will help us customize the service to our clients, optimize our clients' purchasing journey into different channels and take that information and use it to do the more business. And also, this is a tool that suggests to retain products for cross selling, upselling, added services and which also should increase our volume of sales. So we do have a gain of time, productivity, and quality of sale. That technology is connected, as what you said, in the NBO, in Via Unica, and in the customization of offers to our clients. So the window of products to our clients already is showing to our team with attributes of clients purchasing for pension. And it will optimize all our models of incentive to the team. In order to have the best choices for the clients with the best profitability So it will simplify the process and will allow the salesperson to work in a simpler way and They will also have the best recommendations. We have a great expectation of gains and optimization optimization of the business in the brick and mortar store. And it will allow us to take advantage of the traffic in the brick and mortar stores to understand the shop carts that are abandoned in the brick and mortar stores and use that base of clients and something that we didn't use to have access to. So it will end now, right? Yes. Now in July, and this platform is a web platform. We are right now already experimenting via my mobile. We have some stores, which are 13 stores, using that mobile version. It will it's not totally concluded yet, but we hope to be expected to conclude it in this third quarter so that we also have that solution in a higher number of stores and once again, simplifying the purchasing journey of our clients. After the pilot the pilots. Do you have an idea how to improve how this is going to improve sales? Do you have a comparison in the year? I can't give you figures here, but it will reduce in a few times the time to finalize the purchasing process. That final process is, simplified and also it's easy to have new professionals as we are engaging in the company in the past we needed 30 days for a person to learn how to operate in our platform. And now we have seen new sales persons operating in our platform in the 1st day. So it's a much simpler platform, and we are measuring not only the time gains, but also efficiency gains in terms of products and services offers. And my second question is about working capital. You mentioned in the press release that you decided to increase your inventory level financed by vendors. As a way to protect against the facts. That happened before the problem that we had at the end of May in June or you were already anticipating stronger sales and that was affected by the truckers' strike. I just want to understand what is the average purchasing there for you, because I don't know how much of that inventory was at a prior price So did you already have a greater inventory and you did not have the sale because of the strike tucker strike, or did you increase your inventory levels after that strike? Gustavo, this is Felipe. We have a higher inventory levels because of 3 main reasons. One of them is because of exactly what you said, because of that FX, we already had an estimate of depreciation. So we wanted to maintain that high inventory levels for another quarter. We have a long term there in terms of inventories, and we are considering here purchases that are before that depreciation. 2nd, it was a company's decision as well. We do have an expectation of a lowering production of the vendors lowering production. So the company has decided also to have that greater inventory And this third point, that is not on the hands of the company. That sales were a little bit lower than what we expected. That has a 5 inventory levels more than what we had expected internally. So these are the 3 main topics here. And what's important, you already said in your question, the vendor finance or on inventory. We have a partnership with these vendors. We do have a good cash balance. So we do have that inventory with no cash impact. So we do have working capital that is positive. Gustavo. Yes, go ahead, please. I was just going to add about VMIs and other detail that I think is relevant. And in addition to the of Via Varejo. We are also making available to the stores, the marketplace, and that will increase the possibility of doing business and the store, it creates a long tail, view for our banners. And we will also potentialize greater volume business. And that's great also for our stores and the platform. Yes, thank you very much. And now going back to Felipe's answer, with a higher inventory. Do you already see a sales recovery now in July for this third quarter? Or you have to discount a little bit more. I just want to understand the commercial dynamics here. Gustavo, this higher inventory allows us to be prepared for the third quarter, and we are going to go into the next one very well. And in a moment where the effects also pressures prices, we start going into the future in a very good position. As I mentioned before, because of the World Cup, we had lower sound sales This is a product that sells a lot. Usually, it has a high churn. But now, we are ready and we do not believe we are going to have problems with FX and neither because of possible vendors negotiations. Mr. Guilherme assist from Brazil Plural has a question. For answering my question. I wanted to talk about a topic that has been mentioned already, but it is regarding that inventory level, just picking up from where you left. Can we expect starting on the 3rd quarter margin back to the levels that we had up to the 3rd quarter of 30%. I think it's clear the impact of the mix of the World Cup and this gross margin. Of the second quarter. And now just continuing Paulo's answer with a well positioned inventory for smartphones, etcetera. Can we see that margin recovering? And if that happens, are you able to maintain that operation, driving that have neutralized the lower gross margin. Can we expect a better impact in the EBITDA margin? That's my question. And I also have a second one. I would like to go back to one of your comments, a comment from Negron regarding stores closing. Can you tell us about how many stores it will be closing and when? When do you expect to close them? Thank you very much. This is Paulo. I would like to answer the first part of your question regarding the market. We do expect an improvement in our margin. Due to the change of mix. That is to say the higher participation of telephony in our sales for the first 1. And this is an important factor. And the second one is the fact that we have been working with the incentive model for our team. And this should bring about an additional contribution for this period. We have been investing in technology to develop the team and to optimize our results and tap into all the new technologies that we are placing at that disposal. Thirdly, because we continue to invest in technology and improvement in our pricing process, and we expect that this combination will bring about an improvement in our margin for the third quarter as well. Thank you very much. This is Felipe. Regarding our leverage We had important gains already. In two areas that assisted allowance for loan losses and earn our legal costs. And so the plans that we have for the second half are, as described, and our expectation is to have a positive result coming out of that. Okay. It depends on the sales. In the third quarter, And another point is that we are attacking, so to say, other lines of efficiency without hindering our client services and without hindering projects that are important for the future of the company. So we are looking at many lines of our SG and A beside the allowance for loan losses and our legal activity. We are looking at others and we are trying to capture some in the short run and some take a little bit more time, but we are working a lot on that. Just a follow-up. In fact, there is no recurrent problem in the allowance for loan losses. It was a very important improvement and it comes from your effort in terms of your credit score activities and others. But when we look at the delinquency chart that you have In the second quarter, we had a slight increase vis a vis last year in PL. And from 2015 and you are reducing your forecast. So do you think there is a risk of going back to the previous levels of provision if delinquency continues in the same trend? Or do you see that delinquency is already much lower? If you compare the NPL, vis a vis what was published last year. We saw a reduction, but it was not very big. And when we consider the new IFRS and we compare the provision of 2017 with 2018, there was a reduction, excessive reductions. That's because in the new model, This is what we consider in NPL as the quality of credit that we have to date is very much different from what we had in the past. So we had to improve our quality of credit, credit assignment activities. And this is seen in the NPL and you end up having these gains more quickly. As we have a more restrictive credit policy and we reduced our approval rate We expect the figure to remain at a better level, but this is an important point. As it took about 1.5 years in order to see the impact of the NPL in terms of approval criteria. It was more stable over the year. The entel was more stable over the year. And with this new criteria that we adopted, it starts to have a different time lag for the impact. The main thing is the quality of our credit assignment activity, but we also input the interest rate in our models. And we had more funding in this model than the one that we have in the other model. And the second point that you mentioned, the closing of stores. We are well, I would like to say that we are making a big endeavor. We don't want to close doors. We want to in addition to stores, and we are going to make our best endeavors in order to make all our stores profitable. So right now, I wouldn't like to talk about any figure regarding that, but it will not be a significant number of stores. It will be a low number of stores, but I would like to go into that right now. Well, it helped a lot. Thank you very much. Mr. Joseph Giordano from JP Morgan, would like to ask a question. I have a question to try to understand a topic. I want to go back to the operating leverage if we were to compare the quarters like for like considering e commerce has not grown a lot. Would be reasonable to say that we would have we will have an expansion of gross margin. I know that multi channel here was favorable for the company. This is my first question. My second question has to do with financial expenses. That have increased a little bit because of the monetary adjustment, but the drop in the financial expenses, especially regarding the discount of receivables also dropped less than what we expected. So on the side of receivables, discounted. What was the volume discounted in this period? Was it a higher than last year? And if the cost of that discounted receivable has changed over the period because here, this drop was not as significant as we thought because when you bring everything together, the income also the payment book and an interest Hello, Giordano. Let me address your second question and then, we'll ask you to repeat your first question. But then talking about your second question. When you talk about working capital, And then we have the financial results before the restatements. We do have a reduction, especially because of the interest rates. And also you can calculate it. We cannot disclose the discounted volume, but you know that the discount rate is related to CDI. The average term of receivables hasn't changed much. So you can have a reverse math there. Now about your first question. Can you repeat it, please? We were not able to understand it. If you would be removing the effect of the unfavorable effect in the period. We have a margin effect or we have an increased margin. And when we look at the revenue breakdown, we would have a favorable mix here, which was the fact that brick and mortar store growing more than e commerce. So I would like to understand if we can think that TV would allow us to have an expansion of gross margin Well, we have to do the math here to answer your questions. We can check that and we should simulate it and we'll send you that information. We don't have the figure by hard domain indicators that I see regarding margin services to share we do not have any significant changes that could actually impact that. No significant changes except for credit operations. Then as I said already, in May, we have reduced the approval rates. So that didn't have a lower share, a lower stake than when compared to last year. So that does have a small impact on the gross margin, a lower share of the credit operations, but that is only thing that would be impacting the margin, anything other than that, I would have to do the math. Now I would just like to understand something else than thinking about the short term. So how is this hangover that is to say after the World Cup I would like to understand what is the behavior of sales now in July and more than that, what the company sees in terms of discounts that are more difficult to apply in the second half of the year? Well, we already see a normalized mix In terms of consumption profile, we already are back to the pre World Cup period. And we are optimistic about all these new technologies that we are rolling out. And that should expedite a marketing use conversion in the stores and the website because of it up because of BMI. So regardless that both woke up hangover, we are betting on the productivity gain that we are already tapping into because of all these investments. Ms. Maria Paolo from DVD Investments has a question. Good afternoon, everyone. Thank you for answering my question. My question has to do with the last question you answered. Can you give us more information on the monthly performance if we can understand the effects the strike. So in the first quarter, you had a double digit growth. I do want to know if April had the same trend the beginning of May also, and then we had the, truckers' strike and what was, like when consumers went back to shopping after the strike. Well, Maria Paulo would not break down and disclose figures on a monthly basis, but about the strike. In addition to the impacts in itself of having less clients in the stores, it was between May June. But we don't have a significant change in the behavior in that period. Yes. As the end of the month, 1 month in the beginning of another, we did have a reduction in consumption, then it was normalized. And then after that, we had the World Cup In fact, with the profile of purchasing and factoring the financial results. We right now end the Q And A session. I would like to turn the floor back to the company for their final remarks. Well, everyone, once again, I would like to thank very much for being here with us. The dedication and the confidence that you have shown so far in delivering results and also in the whole process of changing the Varejo very clear for all of us that we are just in the beginning, and therefore, we have a long and challenging journey ahead. But we are already very encouraged by the steps we have taken. It's very clear also that we have to be a lighter and more agile company, a more collaborative company as well. And to truly be centered in the client. And for that, we have to go forward in our data strategy and the predominance of our decision processes determined by this data and whenever possible in an automated fashion. We are already seeing the difference it makes, especially in marketing and logistics and also in some parts of the operations. So we want to continue expediting our process in the omnichannel that certainly have a great impact into the customer experience with us to be an inclusion icon for part of a population by the concession granting also, scalable digital model. There's another that really makes us feel proud. And despite of the market's adversities and the huge challenges that we have ahead, I truly trust my team. And we have seen by the engaging numbers that we have shared that they do believe as well, and they do have everything that it takes to make it happen. Once again, thank you very much for your attention and have a nice afternoon. This conference call of Via Vallejo has ended The IR department is available to address any other questions you might have. Thank you very much for your participation and have a nice day.