Good afternoon, ladies and gentlemen. Welcome to Portobello's video conference to discuss results regarding the third quarter of 2022. This video conference is being recorded and the replay can be accessed on the company's website, ri.portobello.com.br. The presentation is also available for download. To hear the audio in English, please click on Interpretation and select English. We would like to inform that the participants attending the conference call will be in listen-only mode during the presentation, and we will then open the Q&A session when further instructions will be provided. The presentation will be held in Portuguese with simultaneous translation into English. Before proceeding, we would like to clarify that any forward-looking statements are based on the beliefs and assumptions of Portobello's management and the current information available to the company.
These statements may involve risks, uncertainties as they relate to future events, and therefore depend on circumstances that may or may not occur. Investors, analysts, and journalists must understand that events related to the macroeconomic environment, industry, and other factors could cause results to differ materially from those expressed in the respective forward-looking statements. Before starting the presentation, the company will present a video about the results of the quarter. Q3 results. Net revenue BRL 498 million. Business units Portobello America. Gross margin. Adjusted EBITDA and Recurring EBITDA. Year-to-date Adjusted and Recurring EBITDA. Leverage maintained close to level previously reached, 1.4x. Highlights. Strategic planning in the long term. AIO award. Top of Mind award. Compliance training. Evolution of construction works. Archtrends Summit. Annual convention for franchisees and managers. Seven years of Pointer. Sustainable Development Week. International highlight. Serasa participation. Thanks for the team.
Here with us are Mr. Mauro do Valle, Chief Executive Officer, Mr. John Suzuki, Vice President of Finance and Investor Relations, and Mr. Renato Ramos, General Secretary. I would now like to turn the call over to Mr. Mauro do Valle, who will start the presentation. Mr. do Vale, you may proceed, sir.
Good afternoon, everyone. On behalf of Portobello's team and all the corporate management, it's a pleasure to be here back to discuss the performance of the company. We had a quarter, once again, very positive. Portobello has been showing along the past few years, and especially along this year, in spite of the difficulties faced by the market, as all of you know, we have been presenting a lot of resilience, a good pace of growth, and we have also presenting profitability according to our benchmarks.
We have been presenting along the last quarters those good results. Here we have John Suzuki, our CFO. He's going to give the presentation, and he will provide more details about what we have done along the quarter, and he will provide further details about everything we have been doing. I'm going to share some comments and add some information. At the end of this brief presentation, we will start again.
Good afternoon, everyone. It's really a pleasure to be here with you again and discuss our results. We have already started to share the presentation with you. Let's see on the screen so that we can discuss the results. First, we are going to start talking about the scenario of the market.
Mauro mentioned some aspects of our results, which was positive, but it was built in amidst a scenario which was very adverse from the ones we had seen in the past. We had commented with you in the last call that we were foreseeing this market with a little drawback in relation to the previous year, but with a trend to stabilize. It didn't happen in practice in the third quarter, as we can see in the industry indicators. ANFACER, which is the indicator that measures in volume and square meters. In the third quarter of 2022, there was a drop of 17% compared to the same period of last year. We had seen a -1% drop in the previous quarters. When we see the Abramat indicator, which is a bit more comprehensive, that includes building materials and the value is more deflated.
We can also see a very significant drop of almost -5%. It was a tougher quarter in our sector. Here we are looking at the Brazilian domestic market. It's important to add, John, that when we compare the third quarter of 2022 to the previous quarter of last year, that if we compare to 2019, we would see that the level would be the same as 2019. The company used the opportunity as well. We maintained the average above that of the market, but we would say that the market is stable close to those recorded in 2019. We see that our position is on the average of the market.
We can almost say that it's a normalization because we had the typical years when we refer to 2020 and 2021, and the reference would be very high when we consider 2021. Moving on to the next slide, we see the industry, and we start to look at sell-out, the retail market. This is the data provided by Cielo that measures the performance of our sectors related to building materials in nominal terms. We can see that in the third quarter of 2022, there was a drop. The industry had a drop of -4%, quite in line with what we had seen in the sell-in, as we see in the sell-out. Our perception is that a lot of this has been driven, as Mauro said, to the fact that we come from a higher level.
Now we start to experience a higher impact, as a result of the uncertainties that we faced from the economic viewpoint and also from the politics that we see in Brazil. The high interest rates. Our sector is much more sensitive to the interest rates that we see in the market today.
Hello. Let's now talk about our state different from what we see in the sector. We can see that the performance has been very good. We have grown 15% in the comparisons of the quarters, nearly BRL 600 million in comparison to the third quarter of 2021. Year to date, we see that we have grown over 21%, and we reached a net revenue of BRL 1.7 billion in the first nine months of the year, this year. This was partially driven by the big.
Our growth has been quite healthy, but not as much as the growth that we had reported in the previous quarter. A very important aspect is that it's important to look at this in an accumulated manner. We had this growth by maintaining our profitability, because there are always a trade-off between growth, sales and profitability. It's important to say that the team has been very skillful and was able to maintain this rate of growth, maintaining the profitability, because we see that the gross margin is nearly the same, 43%, both in the third quarter of this year when compared to the third quarter of last year. We could expand our gross profit by 15%. Year to date, we see that the margin has expanded to 43.9, nearly 44%.
That means that there was a growth of nearly 26%. We can move on. When we look at the revenue according to the business unit, we can see that has been reported important growth in most businesses. For Portobello, we had a growth of 18%, revenue of BRL 772 million, nearly BRL 273 million. Still a very good growth rate. In our most traditional business as to Portobello Shop who has gaining more importance at because of the integrated retail that, when we put together Portobello Shop and Portobello, we see that the growth recorded was 30%. We have been reaping the fruit of the strategies that we have been implementing at Portobello Shop. It's important to mention here that we have been reporting good performance in our own shops.
We are going to talk about it during the presentation. At Pointer, this is the only business where we have been feeling this market scenario. We have been affected by the scenario considering the characteristics of the business, which is more dependent on the retail segment, the home centers, which is different from Portobello. Portobello is more diversified in terms of sales channels. The geographic position of Pointer, because the north and northeast regions of Brazil tend to be more easily or more quickly affected by the economic circumstances. Portobello America has a characteristic of projects, so it's a construction we're talking about. Meaning that next year we are going to have a factory running, and it grew 10% when we compare quarter-over-quarter.
It has a very important characteristic of Portobello America, because part of Portobello America is the core of what the business is gonna be when the plant is running next year. This has been reporting a rate of growth above 30% and the additional share include some sales that come from Brazil, but they are negotiated in Portobello America. This has been facing the impact as the ones we have been experiencing in Brazil, namely the high interest rates in the American market. We'd like to comment at this point that in the retail market, this rate of nearly 30%, as John was showing in nominal terms and even negative considering the last quarter in the beauty market in Brazil, shows the resilience, the difference in products, and the gaining share that we have been obtaining consistently.
This is a very promising situation. Growth rate in terms of Portobello America, we can see that the core is growing, but we are forming the sales basis, which is necessary for the start up of the factory in the beginning of 2023. These are the relevant points that we'd like to show about the strategy we have for next year. We have a very positive perspective, which is reflected in the pie chart showing the growth of the international market still at 22%, but with rates higher than that of the domestic market. We continue to be very aligned with the strategic vision that the international market and we expect the revenues to grow consistently along the quarters.
This is what we have seen in the past few years, and this is the strategy we are going to adapt for the next years, and it's gonna be very leveraged next years with the local production in the Americas. In the next slide, we are going to show a little bit of the separation per business unit when we're talking about gross profitability. In Portobello, we continue reporting good profitability, nearly 43% of gross margin. There was a retraction in relation to 2021, but still at a very good level. As for Portobello Shop, we have made headway in relation to last year, reaching 47.3% of gross margin, a 1% increase in comparison to last year. At Pointer, once again, since it's the characteristic of the business and the market where we are operating, we have a lower margin.
Pointer has naturally a lower margin, but has been impacted when we look, when we compare year-on-year. Portobello America, the margin is 26% and, we have a characteristic which is different from what we have when we have the plant running. The gross margin today is 26.2, 11 percentage points in comparison to the previous year. We have already mentioned the first nine months of the year and the performance, and let's move on to expenses. Expenses were very important when we analyzed the third quarter. It's important to say what is included in when we talk about expenses. We have been seeing some advances when we compare to the third quarter of 2021. We can see some progress in the operating expenses.
In sales, we stand at 24.4% with selling expenses. For general and administrative expenses, we stand at 3.7%. Here would include the characteristics of the strategic evolutions of what we have implemented at the company. Our own shops are a good example. Considering the characteristics of the business, it already comprises our consolidated results where we have a higher burden of expenses. This also includes the acquisitions, because when we resume the business, we have a relationship for higher expenses, which is different when we stabilize the operations. The United States would also be a very good example when we're structuring the business and as Mauro mentioned, the plant is likely to start operating in the first semester of next year.
We are already working on the ramp-up, and behind it, there is a lot of structures being made for the sales team, for the administrative team, and soon we are going to start building the industrial team as well. This has been impacting the SG&A results. But as those strategies are becoming more mature, we are going to see all those SG&A in terms of percentage of our revenue reaching low levels in a more consistent way. We understand that we have to have financial discipline as we have been reporting in the documents. Even with those strategic advances, we are going to maintain a good level of expenses in all our business units. Moving on. With this, our EBITDA reached nearly the same results of last year, BRL 105 million.
105 last year, 104 this year in the same quarter. Back then, our margin was 20% and the margin now is 17%. We have already mentioned the gross margin, we reached the same level. All those investments which have an OpEx characteristic, and this is what impacted the margin. We had already this expectation. We understood that we would have a period of investments characterized as OpEx, and that would affect the percentage of the margin. With all those investments, we have been able to maintain the same levels. This is how we explain the evolution. It's important to say that we maintain the operational level in an equivalent way. Year to date, we have been growing at a growth of 21% with the same EBITDA margin.
When we look at a longer period, we see that the snapshot is even better. Let's move on. In terms of net income, we came from income of BRL 58 million to BRL 49 million in the third quarter of 2021. There was a drop of 11% to 8%, and not only as a result of the operational profitability, as we have just mentioned we talked about EBITDA margin, but this was also affected by the increase of interest rates. Partially affected by the growth of the debt, and we are going to talk about it a little bit more. Part of it has been mitigated by the FX variation, but even so, our net income reached this level. In the last nine months of the year, we reached BRL 132 million, 7.8%.
In terms of working capital, we have been watching an increase in the stock levels, which is the main impact that we see in the cash conversion cycle. From 83 to 116 days. I'm sorry, I'm talking about millions, but I mean days. 33 days of growth, and part of it was mitigated by the increase of terms for receivables, and we are trying to offset this effect. Part of this inventory levels has been seen in the previous quarters, so the purpose was to sustain a better level of service in our operations. Part of it was to sustain the growth that we are after in terms of sales in the United States. In this third quarter, part of this inventory level increase is related to lower sales than we had planned.
Part of it has been maintained in our inventories. We are expecting a decrease in this inventory level. At this time around, we see those two effects impacting our inventory levels. It's important to mention that the numbers last years were exceptional in this sense because it was highly demanded market and the inventory levels of the company had suffered a lot because the market is more retracted now. Now we have a different reality of the market. This is a way back to normalcy. This led us to normalize the inventory levels, and we tend to believe that we are going to have healthier inventory levels to meet the needs of the market. We are going to accelerate the service level. We are going to increase the NPS.
It's important to say that this is not an inventory of leftovers of discontinued products, but a healthy inventory level. These are products which have demand from the market. This is a factor that will not move away from the need that we always need to optimize the working capital. When we compare to 2021, we have to understand that the market was extremely heated, and this is something that has to be considered when we do a more qualitative analysis. With this, now talking about millions of BRL. Our working capital, our total cycle of cash conversion increased to 374. There was an increase of 23 days as an effect when we talk about this line. Moving on. Investments.
We continue with our investment projects, BRL 121 million as investments in the third quarter, totally in line with what we had mentioned in terms of strategy and also in the line that we have been following the last quarters. Most part of the investment was allocated to the project in the United States, Portobello America, for the construction of the plant and also for the advances in Portobello Shop, especially for the acquisition of our own shops. We're going to make more comments about owned stores soon. Even with those effects that we have seen and in terms of working capital, we have been maintaining a good level of financial leverage. Our debt has had a bit increase from BRL 489 million to BRL 584 million.
It's important to show the level of leverage, which remains at a level of net debt over EBITDA of 1.4 times the same level of the previous quarter. This level of leverage is very important and shows the discipline that we have implemented in financial terms for the management of the company. A very good amortization schedule. We continue working well. This is a year when we didn't have a lot of funds, but we continue to have a very good debt profile, well distributed along the years. This debt, as you can see in the amortization schedule, 80% are related to long-term debts, and nearly 99% of the debt are in local currency.
Obviously, as our business in the United States matures and starts generating operating cash, we are going to open space to have operations in foreign currencies. Now, let's talk a little bit about what we have been providing as guidance to you and what we have actually delivered in this third quarter. We have been talking about the maintenance of growth at about 20%, and we have been delivering above the 20% up to the second quarter. The level has been quite healthy but below what we had estimated. It was below the 20% that we had provided as a guidance. We have maintained the gross margin, and we have been very strict in terms of cost reduction, and we are very aligned with what we provide as a guidance.
We maintain the margin of 43%, but with the effect on EBITDA margin of 17.5%. In terms of CapEx, we have been focusing on strategic projects. In terms of cash flow. If we look only at the leverage level, we would have been quite in line, much below the policy that we had established, which was 2.5. The only comment is related to the cash conversion cycle that was affected by the inventory levels. I don't think we have lots of updates in this topic. 60% of our equity is held by the controlling group and 39% is related to our free float. Foreign investors account for 18% of our base, and we have 53% of individuals and 28% are institutional or corporations.
Dividend payment, it's important to mention we have been following the policy of paying interim dividends. We have a payment of BRL 43 million in dividends that were paid in September. This is what we had to comment on related to the third quarter of 2022, and we are going to talk a little bit more about the fourth quarter of 2022. I'm going to start. As we have done before, we're going to talk about the prospect in terms of market. The domestic market is still having the impact of the high level of interest rates and the uncertainties in the political and economic scenarios. We still expect a more resilient performance in the segments that we have already mentioned, such as those related to the Portobello Shop, whose segment is more premium.
Engineering, which has been more resilient as a result of the number of launches that we have seen in the past few years. We still have some periods for delivering this, the inventories related to the launches and also the international market since we have seen such good performance. In terms of production, sales, and net income, net revenue, our expectation is to have a growth in the fourth quarter at the level of 10%. We were expecting a level of 20% year to date. Considering the scenario that we see in the sector, we are estimating a level of 10%.
We have been very conservative for the fourth quarter because we had elections that affected the results and also some logistics issues that affected the distribution of the domestic market and even in the domestic deliveries, and also the effects of the World Cup that is going to affect our retail operations. That doesn't take away our motivations and the positive expectation and resilience for the future. Of course, we have to have this short-term view for the next weeks, considering the scenario that is likely to affect the pace of the retail market. In terms of costs and expenses, gross margin is expected to be maintained at the same level of the last quarters, and this is a very important topic in order to maintain the profitability of our business.
We always look at costs and expenses in a careful way, the cost of the plant, such as our SG&A. We do this very cautious management and maintain our discipline. With this, we see that the EBITDA margin for 2022, when we end the year, is going to be at the same level of last year. The CapEx estimate is to invest BRL 280 million focused on strategic projects, Portobello America, Portobello Shop, and Portobello and Pointer. Cash flow, we are going to follow our policy. We have been recording below that, which is 2.5 times net debt over EBITDA. We are likely to maintain the levels that we have maintained so far.
John, to wrap up this evaluation related to 2022 with the projections of the last nine months, we feel very comfortable as the management of the company. Considering the difficulties that the market posed to us along the quarter, especially for the building material, interest rate, as we have already mentioned to all of you.
This is and continues to be a concern to all of us. In spite of all those difficulties we face considering the market, we have been able to maintain the growth level and levels of profitability, showing that the strengths that we have developed in the past few years, both in terms of our production capacity, the management of the retail, and also the way we see the international market.
This all provides us a lot of enthusiasm to continue with the discipline in the financial management, and we continue to have a very positive way of looking at the end of the year. There are some projects that we usually comment on at the end of our presentations. These are the same projects that we mentioned before, but America is the most important project. It's not only industrial project, but also a commercial project, but its materialization is going to bring us a very significant progress along the 12 months. We are very enthusiastic. Of course, the American market also poses some challenges with this high inflation without any precedence in the past few years. Interest rate also affecting the construction industry.
We see the competition in the American market, and we want to take part or to be part of the share of this market, so we continue focus on this. On Sunday, I'm going to the States, and as we have done most of the months, and this shows that we are going to maintain our growth strategy into the international market. At the time we have this international market, Brazil is still our main strength, and we can move on with the slides. The retail market, building materials and Portobello Shop, we also have a direct operation. We can see all the results based on the numbers of the shops, of the growth that we have been reporting above the market levels.
This is where we place our bets for growth, not only related to the number of shops, because we're also going to open new shops. We're not going to make measurements based on the number of stores, but how we operate in those shops. Because all of them have been growing, but larger stores will improve our experiences. We are going to grow in the niches, and we are going to increase the satisfaction level. Along the last two years, we double the sales without increasing at the same level the number of stores. We open the areas of exposure, and in the slides, we show the own stores and the franchise stores, and we see the numbers of them.
Those 26 own shops account for more than 40% of the sales, and showing that we have the strategy to maintain those own stores. We're going to maintain the presence in the places where the investment is higher. This is a complementarity which has been showing to be very interesting. Moving on, talking about the strategic points. A point that we cannot forget is that we are looking at governance and ESG at the company. Renato is also here. Renato Ramos is the coordinator of the governance area of the company with the board of directors, considering that this is a strategic movement and corporate movement, and at the same time, he manages all the activities of the committee of ESG of the company. Renato, please say how we're performing. Thank you.
2022 has been a very important year of our ESG strategy. It's a year that shows the evolution of how we have understood the E, S, and G pillars, and we have expanding our initiatives, especially connecting with all the business units, broadening our eyes and understanding of all those items, expanding the opportunities such as the sustainability week. That was when we launched our plan to understand the ESG plans for the company. In the last quarter, we put our efforts together to take part in the ODS of May, saying that we are signatories of the Global Compact. Governance has been so important with the leadership and our sustainability committee. We launched the code of conduct and ethics. We are launching the program of compliance.
This has been a very important year, so that this topic can be ever more strategic and make headway across all units. Yes, I think it's even important to mention that this has been a very important progress for the company, considering the three letters ESG and not to mention the E, S, and G making headway when we adopt the objective indicators so that they can all become targets for the company, especially G. We have had a very important evolution internally at the company with the institutionalization of some agencies, some organs. We have lots of committees, the audit committee that reports to the board of directors, and this committee has been very active in the company, being part of the main processes of control for the company.
We also have the compliance in a more institutional manner that reports to the legal management and also internal audit that has been conducted by the company that reports to the audit committee. We are also reinforcing the structure of internal controls. We see an opportunity to tell about those advances in the corporate structure. Before we open the Q&A session, moving on to the last part of the presentation, we have also talked about the internationalization that we have, and the Portobello America is the core of our strategy, but we have been operating in other countries as well.
We have resumed our participation in the largest fair of ceramic tiles in, and it's a market where we have some share, and it's already in our strategic vision to grow in Europe and also increase in the Middle East, where we already operate, so that everybody can have a clear vision that internationalization is not only the American market. The energy situation in Europe will open new opportunities for growth, such as those we have in Brazil in terms of energy grid. This is it. We trust in the performance of the company, and we maintain the strategic positioning, and we are strengthening our competitive advantages. We would also like to invite you to take part in the Q&A session.
We are now going to begin the Q&A session for investors and analysts. If you wish to ask a question by audio, please press Raise Hand. If your question is answered, you can leave the queue by clicking Lower Hand. Questions can also be asked in writing in the Q&A option. Please wait while we collect the questions. Our first question comes from Iriovaldo Ramos da Silva.
In addition to the United States, are there operations or exports to other countries or plans?
Ramos, I think on the last slide, I kind of answered this question. The United States would account for half of our exports, and the other half would be Latin America, which undergoing some pressure, notably Argentina. Middle East and Europe are gaining importance and also South Africa in spite of the difficulties of the local economy.
This is the idea to maintain the space in the other countries. Only to add and provide more color, we had lived a period of elevated international freight levels. International freight rates are beginning to reach normal levels, not to the levels of the pre-pandemic, but this will provide opportunities to resume our competitiveness for exports. Yes. Good. Especially we have been seeing this energy crisis in Europe. We see important competitors, traditional competitors in Italy and Spain, for example, and they are really facing lots of difficulties in terms of energy costs to be available for production, and this would pave the way for us to gain some space in the international market.
Our next question comes from Tito Ávila.
Congratulations on the results of the quarter. In relation to the increase of expenses with sales, selling expenses that can be understood as our investments, to which degree you expect that this is going to pressurize the EBITDA margin in the next quarters while the dilution effects are not felt? Is there a pre-established internal limit?
Tito, thank you for the question. The idea is to maintain our profitability in terms of EBITDA. Of course, as we move ahead with our strategies, as we mentioned before, our plan continues to expand our network of own stores, and we also have the natural growth of the project in the United States. The idea is to balance those investments in OpEx with the profitability and the growth of our business. This is how we see the situation over time.
Of course, there are some adjustments to be made when we look at the events of a specific quarter or when we look at a specific month. Our objective is not only maintain the level of profitability, and that's why we talk so much about discipline. We cannot lose sight of this financial discipline in order to maintain the profitability. It's a discipline that we have to continue implementing. As Mauro mentioned, the 10% guidance, but we are going to be after higher levels with growth, such as those that we have been able to deliver recently.
Another question from Mr. Edvaldo Gomes da Silva
Are there plans to increase the number or the growth of franchisee shops?
In spite of the fact that I mentioned it before, that more than increasing the number of shops and the number of regions is to grow considering the existing stores in terms of product mix and service level. There are many areas in Brazil and some stores which are new. We're going to have a combination of franchisee shops that already operate in a certain region, and they will start open stores in satellite areas or complementary areas. We're also going to have new franchisees. We have a very large stability of our franchisees. Some of them are already in the second generation.
You know, family business, when we do an annual review and we analyze every five years, fortunately, the level of success and the results are shown in the results, in the awards that we have received year after year, such as the best companies of franchisees in Brazil. When we talk about expansions, we are talking about new franchisee and new regions. Yes, we are going to be looking at that in the future years, in the next three years. This is how our vision goes.
We'd like to remind you that if you wish to ask a question using audio, you can click Raise Hand or send your question in writing by the Q&A function. Tito Ávila has another question:
What are the perspectives in relation to natural gas when you review and consider the local distributor?
Tito, we do this monitoring very close to the utility company and the provider. All gas for Pointer and Santa Catarina has another carrier. As to Alagoas, we do not see a big change at the level since the dynamics there is different from the dynamics we see in Santa Catarina. In Santa Catarina, we see some good perspectives in the first semester. In January, there is a good chance that we are going to see some reduction in the gas price. Of course, this would be very welcome to our profitability and to our business. All those projections are updated nearly every week, considering we have different information related to interest rate and the international market, okay, FX rate. So there's going to be a reduction. We are sure of this.
It would be a bit risky, a bit premature to set what would be the percentage, but we are very optimistic that this is going to have a downward trend. The inflationary pressure has been an impacting issue. It used to be in the some months, but it's no longer true because there is optimization and renegotiation of some agreements. This is also related to natural gas, which has a relevant impact on the sector. It depends on the company, the. It's very representative in terms of costs for the production. This is a very favorable data. This operation is likely to happen in terms of updating of the table that is going to happen in January. There are some units in the federation that has adjustments on a quarterly basis.
Yes, another question from Tito Ávila.
What are the perspectives in terms of CapEx in 2023? If you could break down into the business units.
Okay. We decided that all the difficult questions will be answered by John. This is a bit more difficult question to answer.
For me to provide you with a little visibility of the process, we have just completed our five-year plan. Every year, we review our strategic plan in the beginning of the second semester and together with the preparation of our budget. In this cycle particularly, we had a good discussion related to strategic planning, so we have a preliminary view of what's going to happen in 2023 in this long-term vision. As we discuss all the items of the budget, we will come into details, but we still do not have an answer.
We expect to provide you this guidance in our next live. Naturally, Tito, we are going to continue with the project in the United States. This project is going to consume a very important share of our investment of CapEx. The first oven is going to be in operation. It's a project that is going to go as far as 2024 and all the investments in Portobello Shop, both for expansion and also looking at our own stores, will also take our CapEx. This is something that is gaining importance in retail. It also includes the digital part, and we may have some investments in industry. As I said before, it's still too early to provide you a good guidance this year.
It was clear when I said that we continue with the logics of prioritizing our strategic plans, so the United States and retail, especially.
The Q&A session has come to an end. We would like to turn the floor to Mauro do Valle for him to make the final remarks related to the company.
Thank you for your attention. I would like to thank all Portobello's team, who worked very hard so that we could have the results that we posted in the third quarter. We maintain our trust both in the strategic positioning and the strengthening of all the actions to make the company ever stronger. Thank you very much for your attention. We are going to maintain contact, providing updates of the company. Good afternoon, and have a nice weekend. The conference call of Portobello has come to an end.
We would like to thank you for attending the conference, and have a good day.