Morning. Welcome to Camil's video conference to discuss the results of the fourth quarter and year of 2024. Present here today are Mr. Luciano Quartiero, Director President; Flavio Vargas, CFO and IR Officer; and the company's investor relations team. We would like to inform you that this event is being recorded, and all participants will be in a listen-only mode during the company's presentation. At the end, we will open for questions from analysts and investors only. We would like to emphasize that any forward-looking statement that might be made during this conference call related to Camil's business outlook, projections, and financial and operating goals are beliefs and assumptions from the company's management, as well as information currently available. They may involve risks, uncertainties, and assumptions as they refer to future events and therefore depend on circumstances that may or may not occur.
Investors must understand that such general economic industry conditions and other operating factors may affect Camil's performance and lead to results that differ substantially from those expressed in such forward-looking statements. We will now start the presentation with Mr. Quartiero, followed by Flavio's presentation, and at the end, we will open for a 15-minute Q and A. Thank you.
Hello, and welcome to the comments on the results for the fourth quarter and full year of 2024, ended in February 2025. On slide two, we highlight our operating categories and the key indicators for the quarter and the year. Our operations resulted in a net revenue of BRL 3 billion in the fourth quarter of 2024 and a record annual revenue of BRL 12.3 billion, up 11% and 9% respectively year-on-year.
We achieved EBITDA of BRL 193 million in the quarter, with a margin of 6.5% and BRL 907 million for the year, with a margin of 7.4%. In terms of volumes, we reached 458,000 tons in the quarter and 2.1 million tons in the year, with a highlight being the growth of high-value operations in Brazil. We will then discuss the results in greater detail during the presentation. Now, on slide three, in high turnover, comprising grains and sugar in Brazil, we saw a 1% increase in volumes in the quarter and a 3% decrease in the year. In grains, the growth in volumes in the period was partially offset in the quarter and year by the decline in sugar volumes. We continue to face a challenging scenario in terms of profitability and sugar volume in the domestic retail market, given the high competitiveness in the sector.
It is worth noting that in regards to grains, we managed to maintain the category's profitability for the year, with high rice prices driving revenue in the high turnover segment. Moving on to the high-value category, which includes fish, pasta, coffee, and cookies, we recorded volume growth of 18% in the fourth quarter of 2024 and 11% for the year. This growth was driven by increased volumes in all categories, reflecting the strengthening of our portfolio. Looking at each category in detail, in fish, we saw sales growth due to the seasonality of the pre-lance period. In pasta, we posted good profitability for the year, driven by the launch of Camil brand pasta in the São Paulo metropolitan area. This step reinforces the growth strategy for one of the most profitable categories of the year and also highlights the strength of our brand in the region.
We remain the number one player in market share in the state of Minas Gerais with the Santa Amália brand and one of the leading players in Brazil. In recent years, we have been working to expand our pasta production capacity and to optimize the use of our factory. We are focused on expanding volumes to new regions, leveraging the strength of our Camil and Santa Amália brands. As for coffee, we also completed our capacity expansion and are moving forward with our sales growth strategy for the União brand, which currently has more than 4% market share in the São Paulo and Rio regions. We also identify significant opportunities in the portfolio and are focused on implementing innovations and operating improvements to accelerate our growth.
For example, last year, União Coffee expanded its portfolio with new packaging versions tailored to consumer preferences and launched gourmet coffees, positioning us as the fourth largest player in this segment in our three years of operation. In cookies, we saw volume growth in both the quarterly and annual comparisons, and we maintain our focus to strengthen the Mabel brand and improve sales. We continue to improve our sales profitability. With the expansion of pasta, coffee, and cookies, which together have the production capacity to double in sales, we believe that we are well positioned to drive our opportunities for expansion in high-value categories, both in volume and also profitability. The expansion of these categories reinforces our position as a food platform with leading brands and high consumer preference. Our brands and portfolio variety strengthen our position in serving our customers' needs in the best way possible.
In the international segment, we posted 10% volume growth in the fourth quarter of 2024 and an 8% decline in annual volume, mainly due to lower exports from Uruguay and volume growth in Ecuador. Despite this decline in the year, we saw price increases, which boosted the segment's revenue and also increased our profitability. As part of our regional growth and consolidation plan, we announced our entry into Paraguay, pending the closing of the transaction. With our geographic presence in South America and our diversified portfolio of products with leading brands recognized by consumers, we are increasingly stronger to overcome challenges in challenging scenarios and also reinforce our efficiency. We continue to work on enhancing our brands and preparing to increasingly capture opportunities to expand the operations acquired in recent years.
In terms of volume and profitability through cross-selling, brand strengthening, and commercial execution, I will now hand over to Flavio, who will comment on the financial results for the period. Flavio, you may proceed.
Hello. Thank you for joining us for this quarter's and year's comments. Starting the financial analysis with the quarter's indicators on slide six, we achieved net revenue of BRL 3 billion, a 12% increase over the previous year. Cost of goods sold, or COGS, grew 17%, mainly due to the impact of cost of goods sold in Brazil. This result was driven by the high-value segment in all categories, mainly coffee, which saw a significant price increase in the period. As a result, our gross profit totaled BRL 531 million, with a margin of 18% in the quarter. SG&A, as a percentage of net revenue, was 14.6%, keeping us at competitive levels compared to the industry.
In other operating revenues and expenses, we totaled BRL 36 million in positive results for the quarter due to non-recurring revenues of BRL 33 million from the recovery of tax credits. These credits refer to Social Security contributions on labor costs, tax credits related to the exclusion of ICMS from the PIS and COFINS calculation base, and contractual indemnities related to Mabel's tax liabilities. EBITDA stood at BRL 194 million, down 24% when compared to EBITDA in the fourth quarter of 2023, with a margin of 6.5%. Now, moving on to the financial highlights of the year, as Luciano mentioned, we achieved net revenue of BRL 12.3 billion, a 9% increase and a record level for the company. Cost of goods sold grew 10%, mainly attributed to growth in Brazil in the high turnover segment in grains and in high value in all categories, particularly coffee.
As a result, our gross profit was BRL 2.4 billion, with a margin close to 20% for the year. SG&A expenses as a percentage of net revenue decreased by 0.3 percentage points to 14.7%. It is worth noting that over the last year, the company implemented plans to optimize and review expenses, aiming at greater efficiency and the identification of new synergies in the acquisitions made. Other operating revenues totaled BRL 58 million in positive in 2024. This result was mainly due to the non-recurring balance of BRL 44 million, of which BRL 43 million was recorded in the fourth quarter of 2024, as already explained, and BRL 10 million, which, after discussions regarding the right to repeat the amounts of corporate income tax, social contribution, PIS, and COFINS calculated based on the SELIC rate applied to undue taxes and judicial deposits, this amount was recorded as monetary restatement of taxes paid.
In addition, this revenue of BRL 10 million also includes the recognition of the right to offset amounts duly collected in recent years. Regarding EBITDA for the year, it totaled BRL 907 million, down by 1% year-on-year, with a margin of 7.4%. Moving on to debt, the company's net debt stood at BRL 2.7 billion, with net debt to EBITDA for the last 12 months at 3x in the quarter. This amount is within the limits of our financial covenants for the ventures and certificates of agribusiness receivables, or CRA. We always review our covenants on an annual basis. We have significant working capital seasonality throughout the quarters, more specifically in rice and fish. Usually, our first quarters of the year show higher cash consumption, while the fourth quarter shows a release in working capital, as you can see in the results for this period.
Consequently, this leads to improved leverage. CapEx, excluding M&A, amounted to BRL 122 million in the quarter and BRL 335 million in 2024. In Brazil, the main CapEx investments were directed to our new grain plant located in Cambaí, in the state of Rio Grande do Sul, and also earmarked to the new thermal electric project. In addition to this amount, it is worth noting, as disclosed in November of 2024, that the company made an advance payment for the acquisition of Paraguay, amounting to BRL 199 million, disclosed in the third quarter of 2024. As mentioned by Luciano, the closing of the transaction is still pending. With regards to ESG, we are consistently following up on the actions taken by the company. Last year, we conducted a cross-sectional assessment of initiatives to strengthen our practices.
As a result, one of these areas of focus was to reinforce Camil's position to join B3's ISC. We are once again included in the current ISC portfolio, which began on May 5th. This move, in addition to our other environmental and social actions, reinforces the company's commitment to acting in the sustainable development of our business in a consistent manner and in line with our strategic objectives. For more details on our actions and indicators, I invite everyone to access our annual sustainability report and contact our IR and ESG team in case you have questions and suggestions. To conclude, as Luciano already pointed out, we are working hard to boost our efficiency and strengthen our brands and commercial execution. We are confident that we are on the right track to take the company to a new level of scale and profitability.
We are now available to take your questions in case you have any.
Thank you all very much.
We will now initiate the Q and A session to investors and analysts. In case you have questions, please press the raise hand button. If your question is answered, you can leave the queue by clicking on that button again. Our first question comes from Laura Hirata from Santander. You may proceed, ma'am.
Good morning, and thank you for taking my question. I would like to ask two questions. The first is on global rice demand, given that the production in Brazil and globally was lower. How do you think this should affect prices going forward? My other question is about sugar. We already see a scenario with higher production, not only in Brazil, but also in India. How do you see this affecting profitability of this category?
If I can also add, I would like to get a better understanding of the high-value category. How do you see the entry of these new categories after almost three years? Moreover, with the new SKU launches, how is this strengthening the brand equity? How is this, you know, helping you with the category? What are the new growth avenues for these products? Thank you.
Laura, thank you for your questions. I think you already integrated almost 10 questions into one. In terms of the rice crop, rounding up figures, it was almost 14% higher when compared to last year's crop. Last year's crop was impacted, I mean, because of El Niño and delays because of the excessive rainfall and delays in harvest. There was the tragedy in the state of Rio Grande do Sul.
We grew 14%, you know, considering that the previous crop had several impacts. All in all, now we had a very positive crop with a good water source. Production increased by 14%. There was an equivalent increase in Uruguay and other countries in South America, also Paraguay and Argentina as well. In practical terms, this had an impact on prices. In the third quarter presentation, I said that we had an impact of a lower sales volume of rice because prices started to fall before the market expected. I mean, back in October, prices were around BRL 120 at the end of the year. The 50 kg bag, taking Rio Grande do Sul as a reference, and at the end of the year, in December, that price was down to BRL 100. This week it was BRL 75- BRL 76. That was a significant drop throughout the period.
Today, we believe that it is already at the level of prices where clients begin to replenish their inventories. All clients start with a position that is lower than ideal because of that expectation of a decline. Today, we believe that it has reached its lowest level. We already see, you know, an increase in orders, and customers are beginning to replenish their inventories. I mean, the volume in the third quarter was impacted by the beginning of dropping prices in October. In the fourth quarter, we felt a little bit of that impact as well. Obviously, it was lower when compared to the third quarter. There was still an impact in the beginning of the first quarter because the price level, I mean, it took longer to be reached.
At the end of March, it was supposed to happen at the end of March, and it is happening now in May. This last harvest allowed the market to adjust the expectation of the average price, and we did that ourselves too. Going back a bit in the last harvest, which ended in February of 2025, the average price was around BRL 109 in the previous year. If I recall, it was about BRL 104, BRL 105. Early this year, we believe that the one of this year will be around BRL 100. As the price was down more than that, we are projecting, or our current expectation is prices should be around BRL 85-BRL 86 this year. That is 10% lower than what we anticipated in our last earnings release. These are the major impacts of this crop season. We do not see any changes in sale out.
It's only our sale in that was lower. This, again, was impacted by this expectation in price drops. We believe that that drop has come to an end. Now, moving to your next question about sugar. In sugar, we faced a very challenging fourth quarter, and the beginning of the first quarter was also challenging. Our supplier built a new refinery, and the startup of this new refinery, together with the end of the crop season, and, I mean, the new crop season starts in April, started in April. We had supply issues, and this impacted our sales volume in terms of supply. Now the refinery started up, already started up. From May onwards, there will be no more impacts, but the impact was until April.
This new expectation, as you mentioned, regarding to India, also fuel prices, we believe that the world market will go from deficit to producing a surplus in terms of consumption. Because of that, pricing should be lower. This is a market expectation. My comment is based on the reports that I read. Therefore, if you look at international sugar prices, I think in the 2023-2024 crop season, I think prices were around $28. In the previous crop season, the price was around $23. Earlier this year, the average was about $21. According to the recent reports, prices are expected to be between $17-$18 in the next coming months. If this indeed happens, this is good for the company because lower prices increase our price competitiveness [Foreign language] our main competitors.
I'm becoming more optimistic in terms of the possible recovery of that sugar category. I mean, the scenarios are still challenging, but if that expectation materializes, it's a good thing for us. Now, speaking about the high-value category, and here I'll try to be more macro to refer to the macro scenario rather than drilling down in each one of them. It has been an interesting experience for the company because the company had a very different category from our, you know, high turnover category that was mainly focused on fish. We learned a lot. The entry into pasta, coffee, and cookies brought about many challenges. Every category has its own dynamics. Pasta, with the launch of the Camil brand in São Paulo, has been very successful. This brought many challenges to the company.
Even we challenged our own dogmas because Camil's brand was mostly related to grain. Going into pasta was a challenge. The entire team learned a lot. I already talked about how customers welcome this new category as part of the Camil family. Coffee is another category where consumers are very loyal to their brands. The fact that we reinstated the União brand and we expanded the portfolio with the Gourmet line means that we are finally putting our coffee pods in the market. We launched the coffee pods now. Cookies. It's another different category. I mean, the way that this business is put in the market, sometimes you work more in selling promotions in the POS. All of that has brought a constant learning for all of us.
I think the best learning was in the execution of the sales and how to operate all of them together. I cannot just say for sure that our learning curve is over because this will never end. The major lessons have been learned. Clearly, we have great growth opportunities in all of these categories. I mean, our growth expectation for coffee. I mean, we have the desire to double inside. In cookies, we also want to double that category in size. We also see great opportunities because we see the possibility of growing 40%-50% in the coming years. All in all, the challenge is quite interesting, not only for me, but it is a big challenge for the entire team that is working in all the categories. In summary, we are very pleased to be able to work in these categories.
It is great to learn about them and to operate them. We are very optimistic in terms of what we see ahead in terms of growth. Not only are we fulfilling a dream that I had as an entrepreneur, but we see great opportunities going forward. I think with that, I answer both your questions, Laura.
Yeah, it is very clear. Thank you very much, Luciano, for your answers.
Our next question comes from Gustavo Fabris from BTG Pactual. Gustavo, your microphone is already unmuted.
Good morning. Flavio, Luciano, it is a pleasure to talk to you. I have two questions. The first is probably a more direct question. If possible, could you elaborate a bit more on the cost side, more particularly gross margin in the quarter, because this moved the needle when compared to Q4? My second question is a follow-up on my first question.
How far or how close you are from reaching a profitability level that would be ideal, or what would be your cruising speed in these new categories? As part of that, what kind of additional effort do you think could be endeavored to continue integrating these categories into Camil's current portfolio?
Gustavo, the question on the gross margin, I would say that there are different factors that impact gross margin. In more concrete terms, as the last line, the EBITDA margin is lower, we've had a mix because there's still, we should still transfer 1% of price in lower volumes, mean, you know, impact cost, and there is a mathematical effect. Let me give you just a practical example. Coffee with a 50% increase in prices, the company and the competitors, we work with a percentage margin.
The gross margin is lower, but we reach the same result in the bottom line. There are different factors. I would say that what impacted the most the fourth quarter was indeed the lack of an additional price transfer and lack of cost dilution, especially coming from these new categories. I will soon talk about your second question. The cookies and pasta categories, the industrial cost dilution is important because it is very sensitive to volumes. With cookies, we are operating at about 50% of our capacity. If I take the price that I operate today, the price of cookies, and if I had 25% more volume, the dilution of the industrial cost for that additional volume, everything remaining constant, this would increase the margin by 60%-70%. I would almost double the EBITDA margin that I would have for that segment.
These are sensitive segments, and these new categories are putting our consolidated gross margin down. My reading both for coffee and cookies is that we are still halfway through. We are already moved along well. Cookies was a challenging thing when we acquired the business. We are giving important growth steps, and we are consolidating profitability quarter on quarter. I would say that we are still halfway through our journey. Certainly, our desire is to conclude that as soon as possible. Here, you know, I do not want to tell you anything about timing, but I believe that the next steps will tend to be quicker when compared to what we did so far because the company learned many lessons throughout the period.
Now, when I talk about new categories, to be honest, I would say that new acquisitions, I mean, acquisitions are part of the growth avenues of the company: organic growth, consolidation of the categories we have, new categories in new countries. All of that is part of the business. At this point, the company is very much focused on deleveraging, and we are also focusing on capturing synergies from all of the operations. We still have a lot of sales synergies to be captured. We have cost dilution also. If I were to prioritize my desires, I wish I had time to capture everything before thinking about a new inorganic step, giving another inorganic step. In my view, I think the company is ready to add a new category.
Not yet, because I have not yet concluded the integration of all of these categories that were added to the company almost at the same time. I do not know if you want to add anything to your question, Gustavo.
No, it was very clear. Thank you very much. Perfect.
Our next question is from Gustavo Troyano, from Itaú BBA. Your microphone is already unmuted.
Good morning, Luciano and Flavio, and thank you for taking my question. I will just do a follow-on on your answer on deleveraging. I would just like to get a better understanding about what would be an ideal deleveraging level for you, just to start thinking about, you know, inorganic growth that is part of the company's DNA.
I mean, also, if you can tell me a little bit about your expectation for 2025 in regard to cash generation so that I could build a scenario related to how you leave that leveraging from the end of 2024 going towards 2025, especially thinking about CapEx, working capital, and financial expenses for the year so that we can bridge that deleveraging throughout the year in your view. My second question, which is probably a provocation about inorganic movement, let's see whether the company is considering any one-off divestment or something that could probably expedite that deleveraging process. Certainly, if you think it makes any sense. My first question is on deleveraging and what is the path towards the end of 2025. The second question is whether we could see any divestment throughout that journey to get a better understanding of your view. Thank you.
Gustavo, I would start, and then Flavio will add to my answer. In terms of divestments, the company does not have anything on the radar. Certainly, our leverage today, considering the current interest rate scenario, would be better if interest rates were not so high. Even then, it is within our parameters. I mean, a covenant of 3.5 as of this year, our debt covenant will go to four . We would have a little bit of more lack. At the current interest rate levels, we could not think about having a leverage, I mean, near four. The company is comfortable the way we are today in capturing all synergies. Once we improve the profitability of the company, what comes next is the deleveraging process that will come from EBITDA improvement. I mean, the net debt to EBITDA ratio.
The company is very much focused on that right now. I will talk about our comfort level. Historically, the company had a, you know, is moving towards a peak of three and a half when we make acquisitions, and that deleveraging process occurs until a new opportunity comes along. If we were to consider an ideal, you know, leverage of the company, I mean, it depends on the size of your step, but that would be between two and 2.5 net debt to EBITDA. I mean, current level of EBITDA, not considering the EBITDA that is being acquired according to the new covenant calculation. In order to operate in a more active way, that range between two and 2.5 would be the moment when we would be thinking about other new steps. The focus is in, you know, deleveraging.
I will turn over to Flavio to answer the rest of your question.
I think that whenever we talk about acquisition and financial breadth, I think this is one of the factors that is in our funnel. Having a leverage level like the one we have today, it makes it difficult for us to execute a transaction. As a company, we always look at things because you have to have financial capacity. It has to make a strategic sense. We have to have operating capacity to integrate. The financial challenge, I mean, in fact, today is more intense, be it due to our leverage level and also the price of the shares, because it makes it more difficult to bring new capital that would allow us to make another acquisition. It is always, you know, within the funnel.
When Luciano mentioned that range between two to 2.5 is what allows us to be financially comfortable, because if we see any operating hiccups, we would feel comfortable because we will be within the range of the covenant. This would also allow us, you know, to be comfortable to make any relevant operation. When you look at the deleveraging scenario, what Luciano said shows that if we look at the current scenario, there are two factors going forward that will help us to deleverage. One comes from operational improvement because this would increase our capacity to generate cash. There is also the external landscape, especially the SELIC rate, because at the current rate, this impacts our company because we have the service of the debt. F`or this year, 2025 2026, in terms of cash generation, we're just walking on the sides.
Our expectation for operating results, considering the profitability level that we currently have, when we look at the financial service with CDI and SELIC rate, almost close to 15%, you would have almost 50%-60% of our result would be used to serve the debt. We still have a year where we still have investments at a high level because of our investments in the Itaqui plant in Rio Grande do Sul to process rice and then the conclusion of the thermoelectrical plant. This should, you know, consume some important investments. Working capital may help us because prices are lower, but give or take, I think we should probably be, I mean, flat in terms of operating numbers. The leverage, I think, will be more apparent next year. Maybe next year, we won't need to invest as much.
The external scenario would probably be more favorable. This will increase our cash generation capacity because also we will not have, you know, to put a lot of money into serving the debt.
Thank you, Luciano and Flavio. It was very clear.
Thank you, Gustavo.
Our next question is from Pedro Fonseca with XP. Your microphone is already unmuted.
Good morning, Luciano and Flavio. Thank you for taking my question. I have two questions. I do apologize if maybe my question has been answered. My first point is about the high-value performance. I mean, the company continues to deliver high volumes. I mean, impressive increase. Could you please elaborate a bit more per category? I mean, our question is more related to coffee, how consumers are responding to price increases in coffee. If you could also tell me something about the other categories.
It is still about high turnover. We also saw a sequential price increase. Much of that, I think, was attributed to coffee. I would also like to hear how much of that was not attributed to coffee, maybe, if I could put it that way. My second question is about Paraguay. If you can give us an update about the Paraguayan deal, that would be good because we could probably put an update on that issue.
Pedro, thank you for the questions. I mean, the performance of the high-volume category is very good. High-value category is very good. I mean, in all categories, we were able to increase volumes. I would just briefly comment on each one of them, but this also reflects the optimism that I referred to at the beginning of the presentation.
Maybe you missed that part, but the company remains optimistic with this category. As for pasta, our profitability has been very good. The best profitability of the company. It was last year. Thinking about the percentage of the EBITDA margin, the company is delivering volume growth. The launching of the Camil brand in São Paulo is also bringing additional volumes, but we still have a lot of room to grow in São Paulo. Therefore, in terms of growth, we see great opportunities. As for profitability, I have two comments. We performed quite well considering that 8% increase. There was an expectation of possible increases in wheat, but that, you know, that productivity decreased because of, you know, harvests in different countries, the crop seasons in different countries. We can recover that well. In cookies, in line with what I said earlier on, we posted volume growth.
Profitability was initially impacted. That was a recent thing because cocoa prices increased, and that has been adjusted. The transformation in profitability is not close to the potential of the company. That growth in profitability will come as we grow volumes and reduce costs, as I said earlier. Coffee, there was a significant price increase. We had higher profitability in the coffee segment, higher than expected, because this scenario of higher prices brings about different dynamics. The impact in volumes came about because clients are uncertain about prices or how much higher prices could be. Prices were up by 50%. Everybody wants to buy the product just to protect themselves from a further spike in prices. When prices stop, people are uncertain because they do not know whether prices will go down or not.
I mean, we saw that there was an 8% reduction in coffee prices recently. This is significant. This has an impact on the profitability that clients have in the category. We have seen this, you know, down in purchases. The movement in coffee is very similar to that of rice when inventory days are reduced because people do not want to take risks related to price variation. I believe that at this time, that is where customers stand. Even though we had growth in the year more recently, this has been impacted due to that uncertainty. I think the most impacting topic in terms of the average price of the category is the seasonality in the fish category. Now we are in the post-lant period due to the way that we supply retailers. Let me give a step backwards.
In the pre-Lent that starts October and November, that's when we start accelerating supply to retailers and we activate products in the store. There is a huge acceleration of sales. When we look at the high turnover category throughout the year, fish has a lower relevance in the other three quarters. In the fourth quarter, that's when the impact is higher. The fourth quarter, there is a high impact of seasonality. In the first quarter, that starts to fall depending on when the Lent falls in the year. From then on, that category returns to its normal price level. The mix, the sales mix between categories in the high turnover then goes back to normal levels. This high spike in the fourth quarter has that impact. Now, I'll turn to Flavio to comment on the Paraguay deal.
Pedro, thank you for your question.
I think Paraguay, Paraguay things are moving along. When we made the announcement, the company was acquired together with a company from the controller. There were many milestones that have to be accomplished in order to conclude a transaction. Things are evolving quite well. The main challenge was to acquire the stake of a minority stakeholder. They had a company that Camil will buy. It is the company that owns that plant, the industry. We already did that. There was another challenge that was to segregate the land so that the company that Camil will acquire had to be a company that predominantly focused on the industrial activity. I mean, having just the area related to the industry. This has been concluded. Now what remains are just a few conditions precedent.
Once that is finalized, we will be able to complete the transaction and then have our foot in Paraguay. We believe that by early July, the transaction will be concluded and then we will be able to operate in Paraguay.
Very clear. Thank you very much.
Thank you, Pedro.
[Foreign language] as a reminder, for questions, just click in the raise hand button. [Foreign language] . The Q and A session is now concluded. I would like to turn the floor back to Mr. Luciano for his final remarks.
I would just like to thank you all for joining us today. I wish you all a very good week, a very good weekend.
[Foreign language] Camil conference call is now concluded. We thank you all for joining us, and we wish you a very good day.