Good morning, and thank you for waiting. Welcome to Magas de Iluis' Conference Call to discuss the Results of the Second Quarter of twenty fourteen. For your information, this event is being recorded. The replay of this event will be available after it is concluded for a period of one week. We would like to stress that any statement made during this call related to the business outlook of Magazin Iluiza, projections, financial and operating goals are based on beliefs and assumptions from the management of the company as well as information currently available in the market.
Future considerations are no guarantee of performance because they involve risks, uncertainties and assumptions and therefore, depend on circumstances that may or may not occur. Investors must understand that general economic conditions, conditions of industry and other operating factors may affect the future performance of Vangas de Nuizo and may lead to results that differ completely from those expressed in such future considerations. To start this conference call, I would like to give the floor to Mr. Marcelo Silva, CEO of the company for his presentation. Marcelo Silva, you may have the floor.
Good morning, everyone, and thank you very much for participating in this conference call on the results related to the second quarter of twenty fourteen and also the first half of twenty fourteen. I would like to begin by referring to the main highlights of Q2. The number one highlight is the net revenue growth of 28.5 in Q2, which repeats the same performance we experienced in the first quarter of twenty fourteen. And this growth comes from same store sales growth of 24.5%. Also, e commerce increased by 44.1% and physical stores grew more than 21, meaning 21.3%.
I would also like to mention the dilution of our expenses by 160 basis points in Q2, much lower than sales evolution and two percentage points in the whole half of the year as a whole. This already considers additional efforts that we did because we were one of the sponsors of the World Cup, a global television. With that, we were able to grow EBITDA by 40.3% year on year, million in the last quarter with an expansion of 50 basis points. So now EBITDA margin is 5.7% as compared to 5.2% year on year. Luisa Credi is also another highlight.
We increased equity income by 79.9%, and that corresponds to R18.1 million dollars the equivalent to 30% return on equity. So Luisa Credit is reinstating its growth in the past few months. All in all, our net income increased by 130.6% or BRL26.6 million in Q2 with a net margin of 1.1%. I would also like to highlight the fact that in the second quarter of twenty thirteen, had an effect of million net of taxes referring to the sale of 70% of one of the biggest DCs of the company in Lovada Sao Paulo. So this figure already considers the results of the second quarter of twenty thirteen without that extraordinary gain that we had.
Now I would like to give the floor to Roberto Verismo to highlight the main figures for the company. And at the end, I will come back to comment on our expectations for the second half of the year and the results for 2014. Good morning, everyone. On Page three, we have sales performance. Gross revenue consolidated in the first half of the year, Our growth was above 26%, million dollars in sales.
This is already R1.2 billion dollars higher than experienced in the first half of last year. We also show same store sales growth, as Marcelo already mentioned, based on last year's base, which was approximately 9%, around 9%, which is a significant base. So it's a very significant growth based on some considerable figures. And I also like to highlight the Internet growth has been growing for two months around 44%. In the first and second quarters, Internet sales already accounted for 16% of total sales of the company, which is higher than last year when this number was 14%, which just reinstates our strategy to grow e commerce and our strategy to pursue multi channels.
So we are a company in total sync with e commerce. So we are in sync, e commerce and physical stores. On Page four, we show gross profit figures. The growth in gross profit in the second quarter was 23%, which is a significant growth as well. The accounting gross margin was down 1.1 or 110 basis points.
So basically, that was due to the mix because in that quarter, we sold a lot of television sets, especially because of the World Cup. And so within our expectations, we would have an effect of the mix. And the other effect comes from increases in tax replacement in that second quarter because these two categories alone, they impact tax replacement, especially over total sales once we if we compare it with other categories, which lost their stake in this quarter. So that margin increased and that affected about 50 to 60 basis points. Now if we compare gross profit over gross revenue, which eliminates the distortion, which is only an accounting distortion, whether taxes would go under the tax line or cost line, which is ST.
The gross margin was down by just 50 basis points, and this was mainly due to the mix of the quarter, which was a bit unusual because of the World Cup. Well, next, I would like to talk about operating expenses, our dilution of 150 basis points, especially in that line of sales expenses. And Equity Enquam had a very important point here, which was Luisa Credit, which is very consistent because in the past two years, all of the quarters have been very consistent in terms of 30% return on equity. So it's a very sustainable number. Equity income has been very good.
Next page, we show you EBITDA figures. In that quarter, the margin was 5.7%, in the half year 5.5%. And the main drivers that led to EBITA increase was expense dilution and also equity income that offset it all of the effects of tax replacement in gross margin. So our EBITDA was able to grow approximately 40% during that quarter. Next slide.
We talk about our financial results. Net financial expenses increased by 39%, very much in keeping with CDI rates, which grew a bit slightly above 40% during that period. Another highlight, I mean, anticipations grew more than average because they suffered the impact from CDI and the increase in sales because sales were up by almost 38% financial expenses. With that considering credit card anticipations are very much stable year on year despite increases in CDI rate, which indicates improvement in the financial results as a whole. And then I would like to speak a little bit about working capital.
But in this quarter, we increases in our working capital requirements. This increase was not due to inventories, but on contrary, we improved inventory turnover. And in June, the situation was quite normal and contrary to what was published because some articles said that maybe companies would be with their inventory levels very high. I mean, we purchased what we wanted to purchase and we sold whatever we plan to sell. And our strategy impacted the suppliers' account and that was a very acceptable strategy because we wanted to realize sales during the World Cup.
And what we did was to anticipate purchases that usually occur in May and June, but we anticipated these purchases during April and May. And so all payments that were to be done in the third quarter were done on the second quarter, which brought down our receivables to from BRL1.5 billion in March to BRL1.2 billion in June, which indicates that payments in the third quarter will be much lower and this will favor our operating cash flow from now on. And the trend in the second quarter is to reduce our working capital requirement because this is often what happens in this industry considering the seasonality of sales. And we also experienced a reduction in leverage from 2.1x EBITDA to 2x EBITDA. Debt variation is directly related to variations in working capital.
And as working capital goes back to normal levels, debt profile should also follow suit. I would just like to say that EBITDA in the last twelve months went from R300 million dollars a year ago to R500 million dollars today, and this represents a 60 growth. And what helped this also helped to reduce leverage as a whole. And this trend should also continue further down the road. The last highlight for the quarter on this page was the extension of the debt profile.
Our first corporate rating was issued by Standard and Poor's. And also, I must refer to the reduction of leverage as another highlight. And then on Page seven, we talk about net income. In this quarter, we have R47 million dollars in the half of the year R27 million dollars This is the equivalent of return ROE of 15% on an annual basis. And on Page nine eight, I'm sorry, we talk about Luizacred.
The Luizacred is growing consistently. We experienced a two digit growth in gross billings. We the highlight here is the Magdalena Luisa card, which posted increases And this is a very good indicator showing that our clients are more active and they are buying more in Magazina Luisa, which is a good sign of loyalty. See, direct credit to consumer figures have decreased.
This is also part of our very conservative policy in credit approvals. And with that, overdue payments portfolio is very stable with the same outlook. And with that, Luisa Cred was able to grow revenue. The credit card has generated consistent revenues. We were able to dilute provisions.
The provisions over total sales came down from 4.2% to 3.5%. Provision for bad debt decreased. And that was in keeping with our very conservative credit approach. We were able to increase our profits by 88% and returns again were kept around 30%. And now I'll turn the floor back to Marcelo to talk about the outlook.
Roberto? Thank you. So now I will refer to the outlook for 2014, particularly the second half of the year where we expect to continue growing double digits, slightly lower than in the first half of the year, but it's always good to mention that comparing the first quarter of the first half of twenty fourteen and the first was better than the last half of twenty thirteen. But now again, we in the last half of twenty thirteen, we had a very robust position, but we are very confident that we will continue to grow double digits, but slightly lower than in the first half of the year. Bao and Maya are the two chain of stores that we integrated and they are continued to post good productivity, they are growing higher than the company's average.
And e commerce is expected to grow between 25% to 30% in the second half of this year. In terms of the margin, we hope to resume the levels of 28% because the category mix will go back to normal levels. We will no longer have a World Cup effect as it was mentioned by Beto. We continue to pursue our projects to control pricing and inventory. And also, we will certainly continue to improve the sales mix in the second half of the year.
We will continue to dilute expenses. We've been increasing our service revenues gradually. Luizacre, the estimate is that for the second half of the year, the outlook for Luizacre is very positive in terms of results. And with all of that, we should also improve our EBITDA margins in the second half of twenty fourteen. Going back to margins that we had in 2013, we had 5.2%, now it's 5.7% and we hope to continually improving the EBITDA margins and also the net income of the company.
I would like to conclude by revisiting the history of the company and everything that we've been saying every quarter. I mean, Brazil grew 7.5% in 2010, 2010, 2011. For two years, we focus on the integration of all of the networks that we acquired and we were very successful by the end of twenty twelve. We had all two fifty stores totally integrated in the company in all aspects. And in 2013, we began to see positive results.
And due to our efficiency and the maturity level of the stores and everything else that we've been talking about to analysts and investors. Therefore, I mean, results for 2013 were much higher than those posted for 2012 and 2011. So we hope to conclude 2014 with a result even better than those that we had in 2013, even after the sale of our ADC. And the performance of 2014 will be much better and higher than that of 2013. The numbers are recurring numbers with no extraordinary expenses or anything else.
So we are very confident that with our positive outlook, the company is growing its results, its growing sales, EBITDA margins are good and also net income. Therefore, we are very confident in our path of presenting positive and consistent results. We've been saying this every single quarter and this has been a reality since 2013 in a very consistent fashion. I would like to thank you very much for being so patient as to listen to us. And now we will open the floor for questions.
We have all of the officers of the company, Frederico, the CEO Isabel, our Manager of Management and Control Beto Marcelo Ferreira from Blubizacred. I mean, all of the officers of the company are here at your disposal to answer all of the questions that you may have. Thank you very much. So now let's go to our Q and A. Thank you.
Now we will initiate our Q and A session only for investors and analysts. Questions that will come over the web will be answered later on through our e mail, and we will be available to take your questions. Mr. Fabio Monteiro from BTG Patois has a question. Good morning.
I would just like to learn more about your top line growth, which was quite strong. You already talked a little bit about it. And then in your release, you also talked about the performance of sales of TVs and smartphones. And we know that, that really helped your final results, top line growth. But when you look at the market and even by talking to some other companies and also Via Varejo, your performance was detached from the macroeconomic landscape.
But I just want to understand something. You have a break on same store sales involving mature stores or maybe three or four years or maybe you have a breakdown per region that will impact that growth line. I just want to have an idea about the Southeast and South about your growth level for same store sales. And referring to July, regardless of just a particular number, you already said that you will have a low double digit growth in the second half of the year. But can you tell me whether you felt any important decrease in growth when you compare the first half and the July.
Fabio, thank you for being the first one to ask a question, but you always come with interesting questions. We do not refer to our breakdown figures to outsiders, but we can say 42% growth of e commerce at the Northeast grew more than the company's average. I mean, referring to the old Maya stores, the Bauu stores are growing more than the company average. And this is related to the consolidation and maturity of the stores. They were acquired in 2010 and 2011.
So first, we started with the integration in 2012. And now the stores, two fifty stores are becoming more mature and are already consolidated. So there are a lot of pictuaries related to growth, but that other 15% top line growth refers to also other things. Are talking about purchasing planning and we believe that we did that well. And as a consequence, sales were materialized.
Our sales plan was materialized because of all the purchases. Our participation in the World Cup was very intense. We covered the entire country through Medianet. Many municipalities in the country where we are not present posted sales. And our team is very well motivated and truth must be said that the team is very much in sync.
They communicate all the time. So our online and offline base is in tune. And this was also translated into sales. This happened in the first quarter and in the second quarter, we sold a lot of television sets and also smartphones and these two items push things upwards because of the World Cup. So these were probably the main factors.
We could also talk more about it later on, but these are the two most important aspects. Now July, we could compare July of this year and July of the year before. We had a very good July. We already celebrated our target and we grew an average of two digits, which was very important for us. It was important to have a very good start in this second half of the year.
We just finalized the figures for July last night. So that was a very positive thing. We are confident on the second half of the year because we want to continue to grow double digits. But as we approach the end of the year with the growth that you've seen in the previous quarters and also in the third and fourth quarters, I mean, the comparison base, it's difficult, I know that. But nevertheless, our expectation is that or we believe that we will continue to grow two digits, maybe not very high, but we will continue to grow two digits.
Frederico, would you like to add anything? Fabio, Did I answer your question? Yes, yes. I just want to be sure that I understood when you talked about July. So when you talked about average two digits is between 10 to 20.
Above 20 would be too high, low is 10. So above 20 will be high. 10 is low, but two digits, I mean 10 is low, but I'm saying two digits. So on average, I mean, get an average there. I mean, we do not speak about monthly figures, but you're very close.
I mean, your reading is quite right. Let me I don't think 10 is low, let me disagree. Well, but we are talking about two digits. I mean, it's high, but it's two digits, it's the lowest two digits you could have, right? Yes, that's what I mean.
So follow-up, the could you say that the maturity curve of the stores, it's more accelerated than the historical figures show or you think that TV sales and tax exemption for smartphone and tablets were elements that helped the figures. In our model, maybe should we consider a faster store maturity when compared to normal levels? Well, in the Northeast, in 2010, 2011, 2012, 2013, three to four years is the average maturity time. Magazine already acquired 13 networks, even a new store has varying maturity levels. In a shopping mall, sometimes it's different, but it varies.
So three to four years would be a good average in terms of store maturity, allowing the store to go on cruise mode. And then it will just maintain its regular growth within the averages of the company. Mr. Marcelo Morais from Deutsche Bank has the next question. Good morning and congratulations for your results.
Marcelo or Roberto, I would like to focus on Luisa Credit. And looking at default levels, have you experienced any or have you seen any changes in behavior? Because the second quarter had a few changes. Did you see any changes in default levels? Or do you are you still very comfortable in what concerns credit concession?
And what is your provisioning? Where do you think that the coverage ratio of the company will become more stable? Good morning, Marcelo. Thinking about Luisa Craig, what I can say is that provision the provision level is just normal. It's been around 3.4%, 3.5 of that provision for loan losses in our portfolio.
We've been noticing some stability. Some indicators show that there hasn't been any significant change or deterioration or nothing changed in our view for Luisa Credit as a whole. The last three quarters were very similar and very consistent. Therefore, we believe I mean, we reviewed the budget for the end of the year and we feel comfortable with the KPIs that we are presenting because we believe that they are sustainable and they should evolve positively until the end of the year and also into the next year. I would just like to mention one thing.
You noticed that we reduced the stake of CDC and increased credit card. Credit card is not so influential as direct credit to consumer DCC, and this is very positive. Our credit card base has been stable. And we've experienced a growth in the use of credit cards and credit card revenues. And all of that is positive to Luisa Credit because it shows that customers are more active, they are spending more, the base of credit cards is becoming more mature.
And with a mature credit card base means that we will have more to gain, it will be more profitable. I think these are the main KPIs, the main indicators I can refer to when concerns short term outlook for Luisa Credit. Roberto, can you give me an idea on I mean, without looking at delinquency levels, but looking at operating indicators of Luisa Credit, I think that you already have a few projects that are allowing for improvement in the profitable margins of Luisa Credit. Is there still any further room for continuous improvement of this result? Well, we start with revenues.
The revenues are growing. Funding cost has increased, but Luisa credit is offsetting that funding increase with a lower need for provisions and lower operating expenses. There are many projects underway, meaning improvements in the credit score models, credit concession models, collection models and processes. And all in all, the delinquency trend now is stable. And I think that the numbers will gradually improve as it has improved when you compare the figures year on year.
And then when it comes to operating expenses, we've been doing a lot to maintain operating expenses more diluted. We want to dilute Luizacred's operating expenses. And this started off last year with a project that we developed, an optimization process and also productivity increase. That project started last year. It's now in its second phase and it's moving along.
And that involves a lot of efforts to increase the efficiency of the operation. And certainly, we can make further improvements. But if you compare the first quarter in operating expenses and compare that to the figures of the year before, there has been a significant improvement. So Luisa Craig was also able to dilute operating expenses. Edith Gard from Goldman Sachs has the next question.
In fact, I would like to go back to Marcelo's point when he talked about coverage ratio and the level of provisions that go through Luisa Credit. I know that the portfolio grew by 8% and the delinquency indicator after ninety days, I think went from 10% to 10.6%. At the same time, you reduced the provisions in your PLO for 6% year on year. So the coverage ratio came down to 122%. So we've seen this trend in the last quarters and more particularly in the last two quarters.
But looking ahead, I think and correct me if I'm wrong, please. But it seems to me that this is not a very sustainable dynamics given the macro scenario. And also considering that delinquency has gone up year on year, you may have to grow your provisions, to increase your provisions to because of your coverage ratio, because I think coverage ratio, I think, to go up. So just as this drop in the coverage ratio has helped the results of Luisa Credit in the last quarters, this can probably impact your results from now on. So I just want to know how are you going to work out with this dynamic from now on?
Thank you for your question, Ima. I did not talk about coverage ratio with Marcelo before, so this is a good opportunity to do so. The coverage ratio in the last four or five quarters has been stable around 120%. If you go back in time, there was a point when it was higher than that because the DCC portfolio was increasing. So then we increased our provisions way back then because the DCC portfolio, direct credit to consumer was increasing.
And usually, that portfolio is more delinquent when compared to the credit cards. So in the second quarter, this portfolio, DCC, is more stable. And that's why I say that coverage ratio should go back to normal levels. And that's what happened. So now it's around 128%.
The coverage ratio, it's not a target of the company per se. It's just it's a calculation. Provisions are done based on a model of possible losses of the company, and we are very conservative. And it also takes into account clients' credit score, loss expectations, etcetera. And there is a confusion in the minds of people sometimes when they compare our coverage ratio to that of the banks, meaning it's our Bradesco.
And I think now it's a timely opportunity to talk about it. Credit portfolios, similar to that of Luisa credit, which has lower terms, etcetera, our average term is five months. They tend to have a coverage ratio similar to ours. When you look at the coverage ratio of a bank of 170, 180, it's because they give out a lot of loans to companies and large companies in particular. In this kind of business, you have to have provisions and credit has to be on time.
So the coverage ratio goes up. So it's much higher because you have provisions for payments on time, not overdue. That's why the coverage ratio of banks is much higher than that of Luisa Credit. But the level of 120% of Luisa Credit is very comfortable. Luisa Credit has more than BRL80 million in provisions, additional to the minimum required by the Central Bank according to the 02/1982.
So we are very comfortable with our current level of provisions. And also, we are very comfortable with our provision level of the last quarters just to sustain the losses in the coming quarters. Thank you. Now it's very clear. But looking ahead, this dynamics of having some drop in provisions while the portfolio is growing, maybe this should not continue in the next quarters.
Provisions that should go through the Visa credit should be at least stable or should continue to grow with a slight increase in delinquency levels. Now the portfolio is very much stable between DCC and credit card, right? Let me just help you understand how we calculate this is Marcelo Sejeda here. Well, first of all, Itau makes all the calculations of this direct credit to consumer and how do they do it? They take every credit concession and they look at the risk level of that loan and then they associate an amount according to the IFRS model.
And then they get all of the amounts to come up with another amount. And the coverage ratio is that total divided by INPL, by the NPL. So the coverage ratio is not a target, as Beto said. So I'm looking at every single loan. So why is it that provision for loan losses is coming down?
As I look at all of the loans, the risk when compared to the year before is lower now. So all loans, our loan policy is more conservative now. So in my portfolio, I have less credit risk when compared to the year before. That's why you see a reduction in provision for loan losses. But the coverage ratio, if you look at it, it was 116, then 117, 118 in 2013, it was 126 and margin now 122.
So it's very much stable. But that's not the target. Certainly, a lower coverage ratio maybe could raise a flag. But around this range, it's very comfortable. So what is this coverage ratio?
If everyone is paying late, I am still very comfortable with this provision level. What I'm saying is that if delinquency goes up, well, then okay. But what we are saying is that the quality of the loan portfolio here when compared to that of the market is better. We will go up lower than the market. So if you compare our portfolio to previous years, our credit portfolio is much better now.
That's it. Victor Falzoni from Brother Plural has the next question. Can we have more visibility about the investments you did in the sponsorship for the World Cup and whether all of that investment has been already posted? And how come you had such reduction in the selling expenses and this was not reflected in the G and A? Could you elaborate more on that please?
Frederico, you can answer that. Good afternoon, Victor here. Frederico, Marketing and Sales Officer of the company. We had a fantastic half year in terms of sales. We were able to grow our same store sales over 20% and sales expenses include many elements.
And one of them is even the salary of the managers of the stores, salaries of all of the support cashiers. So fixed and variable income or salaries of everyone involved. And logistics expenses, with a 20% growth in same store sales, even if the marketing expense was relatively stable when compared to the growth of revenue, all of the other expenses I mentioned were diluted. So the rental of the stores was diluted. Also expenses with the salaries of the cashiers, managers and regional people and also distribution expenses, all of these expenses were diluted due to the very strong growth in same store sales and also other structural factors, one of them being the improvement in our Northeast operation, Baul stores and all.
This helped us to reduce our sales selling expenses. And admin expenses, as you see in that release, also has the effect of provisions for loan losses, and we didn't have that in the past. Thank you. Luisa from Votor and Cinco, Headora has the next question. Good afternoon and thank you for taking my question.
I would like to look at the inventory levels of your retail operations. You already said that your inventory levels are well adjusted. But can you tell me a little bit about the competition? And with that, I mean, whether you see a stronger competitive environment, especially also because of gains from not very strong competitors or whether you see that in the short run, things may be a bit more complicated? And my second question is about Furniture.
How do you see the behavior of the end user vis a vis that category in the second half of the year? This consumer is a bit more conservative when it comes to their purchases, whether you can anticipate any problems coming from that segment. Good afternoon. Here is Fabrizio. In terms of our inventories, as Beetho said, our inventory levels are quite normal and within the plan for the second half.
It's hard to talk about it's difficult to say anything about the inventory levels of the company. But as we noticed from the last month of June, we did not see any price deterioration at the other end. There hasn't been any sales or furniture or white lines or anything like that. So prices are absolutely normal. In terms of furniture, this is a category that lost some momentum in the first half of the year.
In the first half, it was only on the side. But maybe in the I think that in the second half of the year, we will grow maybe not at a two digit level, but we hope to grow between 5% to 7%. So this is the expected growth for this category. Hope it will perform better because we do not have the effect that we had in the first half. So this is what we believe will happen.
One more question, if you allow me. Looking at the performance of the stores during the first and second quarters, do you think that you would close some other stores that are underperforming now that the World Cup season is over. I'm sure that you took advantage of that momentum and kept some of the stores open. But my question is whether you will close any other stores. We have seven forty four stores.
This is our number. This is a very dynamic number. Will still open several more stores this year. And we constantly evaluate the stores and assess their performance. There is no major trend in terms of closing stores.
The growth of same store sales in the first half of the year made some of the stores that were not performing well and that they are now over performing. Maybe they're not experienced the same growth level, but they went from non performing to over performing. And we never closed stores before Christmas or the holidays. There is maybe we do not expect to close any particular store, maybe some will be closed by other reasons like rental or but we do not anticipate the closing of any set of stores. That's not in our radar.
There is a very strong trend towards an increase in the number of stores in the second half of the year, because we will open several new many new stores. I would just like to add that we inaugurated two stores this half year and we will inaugurate 20 additional stores in the second half. It's been mentioned both by us and Via Barejo that we are still awaiting for the approval from CAGI to open more stores between 30 to 40. So this is the average that we can anticipate. It depends on these 15, they are still under review.
So 30 is the average, so stores and shopping malls, etcetera. I'd just like to say that we are still investing strongly in IT, logistics, infrastructure, in our innovation lab. Our investment plan is moving full force. The company continues to grow same stores and we are also growing new stores. The emphasis and the focus is in the Northeast Of Brazil because that region is growing above the country's average.
We have already refurbished almost all Maya stores and we are inaugurating new stores in the Northeast Region. We had two closing of stores, 15 the first time, those were the Bao stores. We closed them because we couldn't continue operating them when we gave some other 10 another year. And then we closed early on in the year, we have our fantastic sale and then we closed the stores in the beginning of the New Year. But we are constantly promoting constant evaluations and assessments of the stores.
So if we see that a store does not show future growth, then we consider closing. But in the near future, we will not close any significant number of stores, maybe one or two, if that is the case. And if we arrive to the conclusion that it's not worth keeping it or sometimes it's because the location is not good. But our investment plan is still normal and is in keeping with the budget for 2014. Thank you.
As there are no further questions, I would like to give the floor to Mr. Marcelo Silva for his final remarks. Thank you all very much for attending this call. We are very pleased with the results of this first half of the year. The figures are very consistent and our growth has been consistent and gradual throughout the quarters.
We are very confident that we will arrive at the end of the year with many good results. And for the second half of the year, we will also deliver good results. We started off well with the month of July. We are above the target. We grew an average two digits.
And all of the management of the company is very confident with the results of the company for the end of the year. So I hope to see you again and to discuss the results for the third quarter of twenty fourteen. The comparison also always occurs based on the previous quarters and the quarter year on year. But Bato already said that we have BRL1.2 billion in sales this quarter, which is much higher when compared to the same figures of the year before. Thank you very much, and I hope to see you in our next call.
Thank you very much. The conference call for Q2 twenty fourteen of Magazione Luisa is now concluded. Have a good day. Thank you.