Good afternoon, everyone. We are starting our earnings call for the third quarter of Via. Today we have Roberto, Sérgio Leme, Padilha, Helisson and Andre Calabro. Our format, with Q&A, directly, and to raise your hand please use this on Zoom. You can click this icon on Zoom. Our first question is from Luiz Guanais from BTG . Luiz, you may start.
Thank you, Gabriel, and good afternoon, everyone. I think I have two questions here on our side, Roberto. The first one is about the partnership you've announced yesterday with the renewal, with Bradesco. So I would like to know if you could talk about the main drivers with the revenue in this new model, compared to the previous model that you had. A second question related to the operation.
If you could also talk about how much you still look at when it comes to three key operation adjustments, which has been reducing and the evolution in the take rate that we could expect. Thank you.
Good afternoon, everyone. Good afternoon, Guanais. Thank you for that question. First I'll pass on the floor to Calabro, and then I'll come back to complement his answer.
Hi, good afternoon, everyone. Good afternoon, Guanais. Thank you for that question. Before we begin and get straight into your question, I'm gonna give you a little context of this partnership because I think this will help clarify the questions that may arise from the other colleagues. Ever since the beginning of this management, we focused on strengthening our main assets. Among them the buy now, pay later, the crediário, and our partnerships with the bank.
Because we know these two payment methods are important levers for sales and they make sales feasible, bring in loyalty, new customers, recurring customers. The buy now, pay later system increments more financial results to the company. With the cards, also reduction in the costs of the transaction fees. Another important factor is also that we demonstrate in every quarter that we have significant growth in the buy now, pay later portfolio, and also with our other customers using cards and an important share in the sales at stores and online. When it comes to the deal, considering the growing performance we've demonstrated, we were able to overcome the targets established, and we were able to anticipate by seven years the discussion of new terms for the partnership. Once again, without harming the performance of the buy now, pay later system.
With this, our new conditions and the extension of this partnership for another 15 years. The main trigger to answer your question is that we'll have new accounts for new customers using this card, including additional customers. There are different levels of compensation considering the index for activation of these new customers, active accounts. An important highlight, which is the fee per revenue on us and also . This, whenever there's a spend in Casas Bahia or out of Casas Bahia, will also have a fee and different levels of fees for these spends. Another point that I would also add on is the fee for the other services when it comes to the sale of card insurance services and other percentages that have been defined for each of these points I mentioned.
About the past, and what we had actually looked at in previous contracts, we had always related this to new accounts only. We had some important additions. Once again, this makes the partnership will be successful. BRL 350 million for counter and BRL 1.4 billion as commission anticipation. Another BRL 1.5 billion with four tranches annually according to the tiers. I think that give you an overview, but I'll be available if you have any other questions.
Okay.
To contribute to this answer, I think it really demonstrates this renewal demonstrates the connection that the Casas Bahia brand has with the Brazilian class C, D, and E classes, and the capacity the company has to develop financial service models for this level of the population. As Calabro mentioned, we've anticipated and produced a lot more cards ever since we arrived. We were able to anticipate a contract that was gonna expire in the future by seven years, which gave us the capacity to accelerate the process. I think what's important is we really insist on saying that Via has excellent assets and that we are working on, ever since June 2019, to unleash the value of the assets. The card is one of these assets, but we have many other assets as well in Via.
We had extremely strong and winning assets. In this asset we just had a BRL 3 billion deal, which involved the anticipation of the revenue, but also the expected revenue, and this contract is a lot bigger than this amount. In regards to question two, I'll pass the floor on to Helisson, and then I'll come back for my final remarks.
Hello. Good afternoon, everyone, and thank you for the question. Well, I wanted to maybe split this question into two, because one thing is the GMV and one thing is the take rate. The GMV is something that had a drop of about 30%, but this was where we really changed ever since the beginning of the year.
The role of this marketplace is disclosed, and now the marketplace has the role of helping to generate new customers with low cost customer acquisition costs. It's an activation of our user base and recurrent customers. This is really connected to the fact that we wanna be more present in the day-to-day lives of our customers. It's a marketing approach, actually. This is how we are now, not only talking about GMV, but also in orders, right? When we look at orders and purchases, we've grew 54% and the share of orders and GMV also grew substantially. I think GMV in the future tends to recover. In the previous call, I actually mentioned it would be like a J curve. We're still at this J curve at the bottom part of the J, but it tends to improve.
The take rate in exchange we already consider that if it's in double digits it would already be sustainable and that would already make the marketplace sustainable without considering, of course, all the things we've been having in other ways of generating margins, which would be the buy now, pay later. We also launched in the beginning of the year the 50 items and also the logistics that also help us to have a better customer experience. But also when it comes to margins and revenue, that's super favorable. Of course, like, even though we become very competitive with this take rate, we have some percentage points below the leader, which gives us flexibility in this journey. Roberto?
Well, just to continue with this J curve effect, it's important to mention that in the fourth quarter we've already been doing a lot better when it comes to a GMV performance, and we are practically reaching a point that's very close to our recovery compared to the previous year. It is extremely strategic what we're saying. We made this decision a year back, and we communicated this to market, and we're still suffering a bit of the effect of the average sales of the bigger average tickets. Now that the platform is absolutely stable, we've been accelerating the growth of the orders, and we've been really growing this ratio and recurrence of these consumers here in this platform.
Well, excellent. Thank you for the answers.
Thank you, Luiz.
Now we're gonna talk about João . We're gonna invite João Soares to speak.
Thank you, Gabriel. Good afternoon, everyone. A few points here that I'd like to explore. One is about 1P. When we performed the justice routine, you gained a lot of share in the core business. If I'm correct, what do you attribute this market share gain to? Is it the price, the mix? I would like to explore a bit of 1P. The second point, Calabro, is that it really caught my attention to see the stability and the sequential drop in non-payment in the active portfolios. I wanted to hear this from you guys. It's very different than the rest of the sector, and I wanna know what's behind this dynamic. Thank you.
Well, hi, João. Good afternoon.
Thank you for the question. About 1P, yes, it is true. We gained market share in the original core of the company. Here I can say that this is not in any way connected to greater commercial effort. We've been preserving this profitability, and this is really connected to the capacity of being an omnichannel player. This is one of the biggest advantages. We're not rooting for a specific channel like digital or physical. We're all channels. We even have the assisted online channel through our online salespeople. The physical store, consumers really migrated a lot from online to the physical store in these past quarters. Now we have a major differential in the physical store, and we're really gaining a lot of market share from the physical store.
We've also gained market share in 1P from online, and this is all very connected with the omnichannel approach the company has and the capacity and strength to really make this, these items, have a good turnover in 1P. Now we're taking all of this capacity to 3P with everything life asks for its Casas Bahia. "Com tudo o que a vida pede Casas Bahia" is the name of the slogan. It's gonna be a scaled up process. We're not gonna throw away money to do this. We should see that more and more we'll be diving into other categories with a lot of strength, but of course, without losing the predominance that we have in 1P. We are leaders in most of the categories and we are in a World Cup year.
We are also absolutely prepared for the World Cup. We started some negotiations last year, actually, for television. We are dominant in the market. We're a leader with over eight points in market share gains towards the second player. We're super well prepared to have this fourth quarter. It's also important to mention that the fourth quarter started off a lot better than the third quarter. We are experiencing double digit growth in the fourth quarter and 1P business online and physical. We're super optimistic with the fourth quarter to gain even more market share. If I were to look only at the physical store, we probably won about three percentage points in market share just in physical. Moving on to Calabro now. I'm just going to ask you about this point.
Well, part of what we're looking at when it comes to the profile of bad debt or non-payment and our performance overall is very much connected to this major experience the company has to grant credit to Class C in Brazil. It's over 60 years of experience. 90 million customers in our base. Our algorithms are working strongly with this entire base and the capacity to anticipate these movements in trends that is something Calabro will be able to discuss further.
Thank you, Roberto. Thank you for the question, João. First, excellent news, which is the stability in our indicators that asked about. Especially considering the market indicators. I wanted to mention that another important indicator is the provision for bad debt, PDD.
Besides looking at over 90, we also consider the portfolio with lower or shorter delays. The new batch is also one that's an indicator that's stable. That means that the health of our portfolio is doing well. When it comes to sharing a bit of what Roberto mentioned also about why we have these indicators that are so stable, I think a lot is related to the history, the database and algorithms. I wanna mention two other points, which are the offerings and conditions we offer to our customers.
When we have stability in non-payment rates, and this of course involves the high conversion, this demonstrates we have an adjustment not only in the definition of the risk for customers, but also that the offering and the conditions we provide are really adequate to what they're capable of paying and what they can pay for. Another thing Roberto also mentioned, I don't know if you noticed, but the share of the buy now, pay later from the second to the third quarter dropped a bit in the stores. When we look at all of these indicators internally and also market indicators, we already anticipate some possible adjustments so we can control this more and not harm our profitability. In physical stores, our share went from 29%-26.6%.
We anticipated this in the second quarter already foreseeing a possible deterioration in the third quarter. Finally, last but not least, I think that on the last point you mentioned that I'd like to discuss. We saw a bit of our indicators at above 180 days, which is where you have the definition of this loss. It deteriorated a bit. Why is that? Well, because we felt just as a market that in these ranges with delays that are a little higher, we felt more difficulty from the customers to be able to negotiate. Even so, we felt a bit of this difficulty. We anticipated this and performed all the changes in the second quarter beforehand.
The last detail is that we see a lot of default and non-payment really focused on credit cards. They're really focused on these. Here we're talking about a product that has installments that are predefined. Customers already consider if this fits in their pocket. I think this also helps keep our default really at a stable level.
Thank you, everyone.
Well, thank you so much for your participation. Now we have a question from Vitor Pini from Safra.
Thank you. Good afternoon, Roberto, Padilha, Sérgio. I actually have two questions. Taking advantage of this last question with the performance in the fourth quarter.
If you could give us a vision on what the dynamics are for margins and also what the dynamics are for the cash flow in the last quarter. We had an important cash position and what we should see with this and how these two elements should behave in the fourth quarter. Thank you.
Thank you for that question. Well, about sales in the fourth quarter, as I mentioned, it's been moving along well. We are very satisfied when it comes to profitability. We have not been making more efforts than what we intended to when we performed our budget here. Everything's pretty well balanced out. We've also launched the biggest bang different event, which is really the World Cup. Besides this, we have Black Friday and Christmas.
We've already launched our campaign for the World Cup and the first friendly games that were about 40 days ago, which is the Gol de Pix. It really became a reason for exchanging messages between families. Who's gonna make more money here? From Casas Bahia, many influencers are saying, "Hey, Casas Bahia is not gonna be able to pay for this because of so many pix." We really hope Brazil can make a lot of goals, now we can pay a lot of pix through Nubank. When it comes to margins, the operation is very healthy. Of course, we have the fourth quarter coming along. For a level of a quarter like the quarter with the Black Friday, we're pretty well balanced when it comes to profitability, when it comes to flow.
I think it's the quarter where we most generate cash in our business model because most of the payments that take place and that we buy now occur in the first quarter. This is a quarter where we really increase the company's cash position. Padilha, do you wanna contribute?
Yes. Well, Vitor, thank you so much. I think that when we look at our flow from the third quarter, 92% of the consumption was in the reversal of the working capital and the weaker sales that really slowed down what we had as stock reduction. In the fourth quarter, this is already inverted and getting back to normal. I wanted to highlight two other points. The ex-cash exit of labor claims were at the bottom part of this guidance.
We're foreseeing that in the fourth quarter, we should estimate something very similar to this quarter. In exchange, the monetization of credits has been consistent between BRL 400 million and BRL 500 million per quarter. We're also expecting a fourth quarter with stronger sales so that we can reach this high part of the guidance. These two elements are identifying leftover cash position. Roberto, this is one quarter. The weak quarters in the overall market took place in third quarter, but now we're reaching a bit of normality in October. The expectation for the Black Friday, World Cup, Christmas, New Year's, end of year sales really brings in. This way we can get back to normality, which is the operational cash generation. Thank you, Vitor.
Thank you, Vitor. Our next question is from Dannie Eiger from XP, please.
Hey, guys. I actually have two particular questions. The first one is a follow-up on the result of with the J curve. First, you were talking about the total GMVs, 3P, 1P. Just so I can understand how we should expect this. Then you mentioned that it's almost reaching the break-even. I wanted to understand why you've been standing out so much from the other players. We still haven't noticed such an optimistic score when it comes to durable goods. So even if that campaign you mentioned could maybe lead to this difference. Maybe explore this a bit. It really called our attention to growth in 3P.
You've highlighted in the release. I wanted to understand if it's more about the 3P or additional services, especially the Open logistics you're offering. If it's the case, I'd like to understand how the profile of these sellers has been. The sellers that are already operating in your platform. If they're sellers from third-party platforms and they continue to operate in these third-party platforms, which is your logistics. Or if you've also been able to attract sellers to your platform through these services, is this already happening? I think these are my questions.
Okay. Thanks, Dannie. Perfect. I'm gonna start off here with this point about recovering the marketplace and the J curve for the GMV and the 3P.
We've already started to notice a bit of recovery in the comparable base. We were already looking at less core items being sold. We had already started to notice a bit of the long tail and less core items in the marketplace. A stronger quarter. We're already seeing a recovery and a number that's a lot better than what we presented in the third quarter. In the numbers of this call here. When it comes to 1P, it's not that we're optimistic, we're just being realistic. This is our reality. Vitor mentioned, for example, that he saw our market share gains in the third quarter and we'll see. We continue to gain this quarter.
One of the strong points in the company, as I mentioned, we don't have a channel preference yet. We're not cheering for one channel, like, well, it's gonna all be online or all, offline. We're working with customers wherever and however they want to be serviced. If the market's moving more towards physical or more towards online or hybrid, we're happy with any model, and we're prepared to work with any model. I'd say that this is a fruit of the efforts we have and the preparation we had, especially the campaigns and preparation with the stock for this moment. I wanna take advantage of this opportunity in saying that all of the market share gains preserving the profitability is all happening regardless of the fact that we dropped maybe BRL 1.5 billion in our stock from one year to another.
As we've been saying throughout the last quarters, we increased stock when it was important to. When we understood that we wouldn't need to anymore because there was already product availability, then we started to drop our stocks a bit due to the quality of our stock. It really didn't impact anything when it comes to profitability. We're closing the quarter with BRL 1.5 billion less in stock. Even so, we've been growing our sales strongly. I'd say that this is another asset that the company has to know how to operate this. Before I pass the floor on to Helisson, I think it's important to mention that we were omnichannel with everything up here, except for singular detail, all of our structure commercially.
We made this decision at the end of the second quarter, and that's when we decided to create some omnichannel squads for our commercial team. Today, how are we setting this up? We're setting it up in the following way. Fabulous is the squad that considers TV. Within the squad, you have the commercial team, the sales team. You have the 1P sales team, the 3P sales team, the physical online sales, and the marketing team, the performance team, the UX. Now we have this complete squad. When, of course, we are all focused on the best consumer experience regardless of the channel, if it's 1P, 3P, physical or online. All of these squads prepare these offerings. They prepare this conversation with the consumer.
Of course, this could be online, physical or 1P, 3P. We have stopped looking at this from a commercial perspective, and now we consider 1P and 3P all one. We value the consumer's experience, the profitability of this business, and the frequency and recurrence of this consumer in our platform. I'm gonna pass the phone to Helisson, and he can answer the other questions.
Well, hi, Dannie. About the take rate. We are super satisfied with this evolution. We almost doubled it compared to last year, even with this drop in GMV. It's important to mention that in essence, this take rate is still the basic commission from the marketplaces.
It already has a take rate also through the fulfillment operator and logistics, but it's quite small compared to all the rest. It's growing. Of course, we have a major potential for growth in the next quarters. We're very confident, and the trend is that we'll have an improvement. Roberto has already given you some references to the month of October. We're also, when it comes to the take rate, we've also been a lot stronger as well than our earnings and results in the third quarter. The second question was about the profile of the seller. I wanted to declare that whatever we say here about fulfillment, it's really about the sellers in our platform. These are on-platform sellers that sell on our marketplace.
These sellers are chosen so that we have a matrix for decision-making based on demand, based on our capacity for management in the DCs that already support fulfillment and also our capacity for the logistical network. Over time, we'll improve this and adding more sellers with this profile of products that have a bigger scope. There's also another business which is logistics as a service, which is an Open Ocean option. We're gonna be able to discuss it, but this is complementary to the numbers you referred to before.
Okay, excellent. Super clear. Thank you so much.
Dannie Eiger, thank you for the participation. Now, I would like to invite Nico from JP Morgan. Nico?
Thank you, Gabriel , Roberto. Thank you. Quick one. I have two questions. The first one is about financial services.
How have you been looking at appetite for next year when it comes to services besides credit as a service, maybe more initiatives, more new initiatives like personal loans, credit as a service and things like that? My second question is also about the store. I would like to know if you could maybe give us some more information around expenses in a store considering the macro environment is still pretty weak for these core strategies.
Well, when it comes to financial services, we just ended a year of personal loans through banking. We're going to continue scaling up on this after a year with the profile of performing well and numbers that we can demonstrate results for. Of course, we're going to search for better paths and ways to fund this.
Ever since now, so far, we've been doing this with Via balance sheet, but we're gonna find better ways to fund this. Of course, it's something that we're gonna follow and keep growing with all of the care that we have when it comes to credit issues. It's a challenging moment. We've been very careful about this. We've had excellent performance in the financial operations and in personal loans. As Sérgio Leme represented in the presentation, we just have our Credit as a Service ready. It just became ready, and now we're already testing it and operating it with a partner. It's something we're going to scale up on throughout next year.
Just as we started off personal loans, we're also gonna scale up with all of the necessary care so that we can have a sustained growth. Calabro , do you wanna add on to anything I said?
Over time we really spoke about our buy now, pay later, and I think the solution with credit as a service is all about taking our credit intelligence beyond our counters. We really believe in the customer acquisition helping us with this, a lot more through banQi with negative customer acquisition costs and also new financial revenue for banQi. I wanted to highlight what's the advantage of our partners toward this solution.
When I compare with the transaction that happens in the credit card, our partners will have a chargeback, so they won't have a risk in this operation, and they also won't have transactional costs. It is a formula that's pretty clean for our customers, and it's also going to help with the conversion of the sales of each partner. For those customers who wanna buy in installments and that maybe for some reason did not have available limits or credit cards. We believe in this solution a lot. We are expanding with this solution in order to be able to capture customers beyond via the counter. As Roberto mentioned, we are going to be carefully working on this process and scaling up on this.
This is a solution that we're gonna learn a lot with, the journey of our partners. It's gonna be a little different than the journey we normally have, and this will generate a lot of lessons learned for us. We're really happy with the launch of this solution. Still at the pilot, but over time we believe we'll be bringing more news.
Thank you for the question. I think that as I mentioned in the beginning, this is one more powerful asset we have in our hands. We have a big connection with consumers when it comes to financial services, and we're certainly gonna be able to leverage this and potentialize it as much as we can over time.
About the second question with performance at the stores, when it comes to adjusting expenses, we've already worked on a strong program to renegotiate rents. This is a program that's been very successful considering greater complexity that was generated in sales in the past few periods of time. Landlords are very sensitive, and we've had a lot of success in most of these negotiations. We keep on our assessment constantly of the store's performance. We've declared that just as we've opened stores, we also closed stores during the year. It's a constant program. We have many different remedies for all of the stores that are not performing well. If none of these remedies work, then we just close the store, no doubt. This program is still active, and we do this in a recurring manner.
It's important to highlight also the productivity we've been gaining at the stores. Besides the reduction of the expenses at the store level, if you notice on page five of our presentation, the improvement in productivity per sales person that we had at PM was extremely favorable. If we compare with 2019, where there was no pandemic effect and all of the performance was extremely focused in store because Via was not very online at that moment. Even with this comparison, we had a growth of 19% of performance per sales rep when it comes to revenue, and over 30% performance improvements when it comes to MP. All of this omnichannel approach we added to the sales rep with more 1P, 3P, more CP and handling all of our financial services as well.
With all of the improvements we've done at the store level, we really are convinced that the variables in our hands, we've been really doing what needs to be done and will continue to do this. We'll still have some opportunities, and we're gonna continue to capture these opportunities, as well as all of the investments in technology, making the company even more effective as these improvements also perform better. It's important to mention also that everything we're doing, the level of service gain, we did not in any way expect to worsen the level of service these consumers are now with 77 NPS. That's our best in history so far in physical stores. The other channels are also moving along very well when it comes to NPS.
When we see the average in the market questioning , if we exclude the community, which is something that's very exclusive to us because we are really the only ones that have this buy now, pay later product. When we look at the other lines, I'd say the comparison's pretty good. We're doing well, which is not really just an uncomfortable situation. We're just always searching for more and more and more productivity in all of the Via assets, of course.
Perfect. Thank you. Very clear.
Thank you, Nico, for your participation. Now I would like to invite Ruben Couto from Santander. Ruben, please.
Hi, good afternoon, guys. I'd like to just get part of the comments you made on the effort that management has made to maximize assets the company has and all of these logistical examples with Credit as a Service, digital maturity. I think that this is finally becoming a reality. What can we imagine when it comes to the margin for the company in like two or three years as these new initiatives gain more importance? Can we imagine a margin level that's even above history, what the company has already reached in the past? Could you talk about these perspectives a bit? Thank you.
Um.
Thank you for the question. First of all, when we compare with the overall sector, I think the level of margins that the company has have already been pretty high compared to the market average and will balance out over time. We do not in any way, we were saying we would grow, but we didn't wanna give up on the margins to be able to grow, and we've been keeping up this position. I'm not going to give you a guidance now, but what I can say, in a very generic way, is that considering our performance really accelerate these assets more and more.
What we are doing today in fulfillment and logistics for our sellers delivering to the marketplaces and third parties or just logistical services being provided, as you mentioned, some examples that players are working on for us. That's pretty profitable for Via. There's no subsidies there for our sellers to be able to do this. When this scales up, it's quite natural to understand that we'll capture more profitability in the business. When we look at personal loans, for example, considering that we've been experimenting pretty healthy level of default, and so this proved to be very profitable. As we figure out how to fund it and scale it up, it's going to add even more profitability to the company. The same is applicable to credit as a service.
We should be adding more partners over the next quarters. This is gonna grow a lot in a very calm manner, since we believe we're comfortable to have more credit growth. Everything regarding our credit engine and other services as well, some other retailers as well, capturing more consumers to have this and make this a customer acquisition cost. It's natural to imagine that generating margin for all of these other aspects over time will lead to an increment in the margins of the company.
Excellent, Roberto. Thank you so much.
Thank you.
Thank you, Ruben, for your participation. Now, I wanna invite Irma. Please, you may proceed.
Thanks, guys, for the opportunity. I wanted to get into a bit of the topic with the physical store, as you mentioned. So you're more integrated and you know how to operate. If you could maybe just tell us what you're looking at in this environment? Of course, we saw this increase in the interest which are impacting the smaller companies more. I wanted to understand if interest in markets such as this gain in 300 basis points are maybe in specific regions or where you gained more market. Could you if you see this as something that's gonna continue or not? Also if you could talk about the expansion plan for physical stores next year. Thank you very much.
Thank you for that question, Irma.
Well, there's not like a specific region where we're winning. We grew 1.7% in same store sales. This is spread around all over Brazil, 7.6% in the total now. Then here you have the openings that we had over time. These are 48 stores that have been opened so far, 75% in new locations for Via. Today, we have opened up a new store in Manaus. It's our seventh store in Manaus. It's been an excellent market for us. Once again, whenever we open up a new store, we have thousands of consumers that have a very low customer acquisition. The store really adds this low customer acquisition cost to reduce the cost of services because we start having the store as a real logistical hub.
It becomes another important point for our financial services as well. It becomes a banQi branch and agency, and of course, more online sales that double or triple when we add this, the physical store. We're really comfortable with the performance we've had at the store. Once again, this was always our differential in the company. We always handled this as soon as we arrived, and we've been addressing this very well and growing with it. I think now we're gonna see in the back side of the big concentration in online and also at the physical store. Traditionally, when we have major concentrations, we have a very quick sales flow for consumers. We really handle very well.
I say that when it comes to competition, there's nothing very different from what normally happens in the physical stores. The environment is very competitive and with all of this, we've been able to handle this competitive issues and preserve profitability and really provide growth in market share. I'd say that there is nothing very different when it comes to competitive scenario. Of course, regional players that are smaller suffer more because of all of the economic situation. At the moment, there is a little bit more pressure on the margins and competitiveness because of some other regional player. I think that we would see clearly here the major modification in the competitive scenario. When it comes to opening up stores, we are not providing guidance for next year yet.
Yes, we will continue to expand maybe at a pace that's a little less accelerated until we are able to have absolute clarity of what this economic scenario will be. We're gonna continue to expand and occupy markets where we are still not present.
Thank you very much.
Thank you, Irma, for your presentation. Now I want to invite Andrew. Andrew has a question in English, and we'll be answering as well. Andrew, please.
Hi. Thanks so very much for the question. I'd like to follow up on the Open Sea logistics solution. What are the remaining barriers to ramping this offering up further? And can you give some more on the timeline for when logistics services might be needle moving for your overall results? Thank you.
Thank you, Andrew, for the question. I will quickly pass the floor on to Sérgio. He's totally connected to logistics, of course.
Good afternoon, Andrew. Great to see you again. Thank you for the question. Once again, welcome everyone and thank you for participating in this important day with us. We're really happy with the performance of our Open Ocean logistics and also the performance and growth of all of the fulfillment services we launched in the beginning of this year, which once again reinforce the support to sellers on our platform and in the other platforms. We declared in the material that we disclosed growth of about 700% in the switching year, which just to remind you all, involves all of the logistical services and delivery formats we provide to the sellers.
We were able to grow over 500% in revenue when it comes to the Open Ocean logistics, which was the first topic of your question. Here we're really positively surprised with it, with this addressable market here. It's really a multi-billion reais naturally. Really focused on these packages, and we bring this skill and this know-how in the history of heavy-duty products, and we've been able to expand this now to the lighter products also. This growth that we've seen here of 500% in revenue and over 370% in Open Ocean deliveries. Above all, what most excites me here is the diversification of these categories that we've noticed.
We've been contacted with an interest from many different customers in various sectors. There's not like a single mono category bias here. That of course reinforces our dispersion of these categories, which gives us volume. Besides being profitable in the way we price the service, it's profitable. We have a benefit that is not in the exact profitability of the P&L on this operation, which is the dilution of the cost of our operation of the traditional 1P. Once again, we have the possibility to see another two or three years of growth that's really accelerated, three digits in Open Ocean processes with the diversification of categories, considering that we will still have a huge Open for heavy-duty products.
I just wanna make it clear also that maybe we'll take on in the conversation that we're just talking about light products. Now we are talking about light products, to be honest at the moment. But we do still have this frontier with the heavy duty items where we are pretty big as well. We have a lot of scale and a lot of knowledge. When it comes to getting back to the Envvias switch and the fulfillment services, Helisson's already mentioned that we had an evolution gradually in the DCs, 30 DCs to be able to handle this operation for fulfillment. This requires planning. We have this many different DCs, and we can advance with productivity that's at a really excellent level.
We've also observed that besides profitability, we have an improvement in the satisfaction of our partners and sellers with this service. Of course, the convenience and cost of operating and visibility of this order to be able to service our customers. This is a chapter, once again, that's very much related to the assets that Roberto mentioned, which really excites us a lot because besides growing at major profitable rates, it's also diluting our costs and promoting operational efficiency. Within this logistical equation, we also, although it was a year with inflationary pressure that were very significant in general services, but especially when it comes to fuel and diesel, we've had the capacity to operate with more efficiency in the unit costs in reais, in nominal reais.
This was the P&L and supplies, and it's embedded in our cost of services and our margins.
Thanks, Andrew. Roberto, this was our last question. I just wanna thank everyone here for their participation and pass the floor back onto you for your final remarks.
Well, I wanna thank you all, and I wanted to say that we are super dedicated to perform the transformation of all of our ecosystem and gain more and more productivity and the quick and accelerated development of our assets. Once again, I wanna highlight that we've once again performed a major operation with the card asset. We have many other powerful assets in our hands. We're developing them in a very accelerated pace. Of course, with customers at the focus of all of this, we've really looked at growth in our NPS and how we relate more and more to this in a very precise manner with these consumers. We're gonna continue to develop this strongly in the next quarters with our financial solutions, our logistics, and all of our channels, and strengthening our relationship with customers more and more.
About the macro environment in Brazil, for example, we are always very optimistic, but we are very careful of this view, and we prepare the company for more complex moments and all of the variables that we consider in our hands. We've been taking care of so that we can make them have the most efficient cost possible, and we will take care of these variables that are not in our hands yet. The company is absolutely prepared to handle this more complex year, and we are also very quickly accelerating the sales if it proves to be a year with greater growth, just as we are working on now in the third quarter, which was a little slower when it comes to sales.
The fourth quarter, we accelerated a lot, and we have the capacity and a team that's very experienced here at Via with major capacity to handle different scenarios in a very quickly, in quick manner, to be able to transform them and absorb and handle these different scenarios. Once again, I wanna thank you all for accepting our invitation to participate in this call. Thank you all, and have a great day.