Listen at the time of this video conference to the question-and-answer session. The video with the comments and the analysis of the financial performance done by Ícaro Borrell, the CEO, and Elias, CFO, is available since yesterday on the IR site of Vivara. For the simultaneous translation, we have this tool available. Clicking on the globe, where it is written "Interpretation" at the bottom of your screen. When you select it, please choose your preferred language, English or Portuguese. For those listening to the conference in English, the option of silencing original audio is also available. Clicking on "Mute original audio." For the analysts of Celside who cover this, our shares, we offer the participation of live participation. Please send your name and the name of your company in the Q&A section of the button, and we will inform you as you enter.
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Now let's go to our first question. From Luis Felipe, Celside analyst. Luis Felipe, please open your video and audio so that you can make your question.
Good morning, Ícaro and Elias. I think two questions from my side. First of all, if you could comment on the pass-through of prices in Life, how you see that in the increase in the price of silver? and how that will affect your prices and the effect on volumes, both for the third quarter as well as what we might expect going forward? The second question, I want to understand a little bit better about the dynamic of the fiscal incentives in the next quarters. As we have started to see the effect of the in Espírito Santo in the third quarter, I wanted to understand what we could expect going forward?
Hi everybody, good morning everyone. A short opening, it's a pleasure to be here with you. We're very happy and satisfied to communicate these results with you, which is very solid results, robust results in our understanding. We have delivered the biggest revenue in the history of the company for the third quarter, the best gross margin, the best EBITDA margin, and also the best cash generation, operating cash in the third quarter in the history of the company. We know there's several, some homework to do to address, and we're going to talk to you about some of our stock. We have some questions directed at that, and it'll be a pleasure to answer your questions.
Good morning. We're going to start answering your questions, and then after Ilya's, please feel free to add anything you might want to add. From the standpoint of pass-through of prices to Life, we see an increase.
In the increase of commodity prices for silver, we have reduced our needs of the purchasing in this last quarter. In this quarter that's coming, due to the process of redistribution of merchandise among stores and also the meltdown of unsold, which has also happened in gold and is also happening in Life. The pass-through of price is a natural process, which we're very diligent, and we accompany this month by month. We accompany the demands of the market. Now, from now until the end of the year, we're going to the seasonal air period, from Black Friday, where it's very difficult to pass-through prices. It's also a natural dynamic, and we understand that. We don't have so much effect in volume because we control very much the pass-through of prices so that it doesn't show up so aggressively.
The second question in relation to the fiscal incentives. This was something that we have planned to do at the end of 2024 and which worked very well. Today, we're operating our distribution center in Espírito Santo with the potential of approximately 70% or 80% of its capacity. These are two legs to this plan. We started this first leg through the supply of our stores and the second leg through the delivery of products purchased in our digital channels. We now started to ramp up this, starting in October, this second leg to reach the maximum potential of the operation. Everything that we have collected in the third quarter from the standpoint of a structural standpoint will be repeated going forward. In relation to that, we also have the benefit of including the orders of e-commerce orders through Espírito Santo.
I think it's also worth remembering that our composition of costs for silver, silver represents about, the raw material represents 50% of our cost. The other 50% is labor. Within this raw material cost, obviously the majority is silver. There are other components, such as gold plating and rose gold plating and so forth. It has a much lower effect than the increase in the gold prices, which represents 80% of the price in gold products. Beyond that factor, we also have a markup which is quite a bit higher on the silver items. The effect of an increase in prices as a consequence of the raw material has a much lower effect on these products. Something that we see with a lower gross margin, which is very satisfactory in Life, and we're very satisfied with these gross margins. We also continue to do.
To be diligent on our markups, accompanying the speed of sales. In accordance with what we projected and the needs for each one of these lines where we have the opportunity to be pass-through of prices. Also the CD and the Manaus factory, etc. Commenting also in terms of the cost of capital with us. He became a father this week, so we offer him congratulations. This new period in his life. We certainly have been back together with us, Ícaro.
Thank you, Elias. Thank you, Ícaro. Our next question is from Rodrigo, BBA. We will send you a link to turn on your microphone and audio and video.
Hi, Ícaro and Elias, two questions from my side. First, if you could explain a little bit more about the concept of the gross margin?
It's the second quarter of expansion, a big expansion in that number. Besides looking at the principal components of the expansion of this gross margin. The same question I made in the last quarter, which you had very much comfort that this is structural? In the question of markup, as you mentioned in release, but please explain this dynamic and this question of gross margin from the standpoint of sales as well as gross margin. Are you still working with the same dynamic as in the third quarter going forward? The second question I was commenting with Elias is the question of stocks, inventory. Many people since last night, you're not buying gold. How's your stock doing quarter to quarter?
If you could explain a little bit better this bridge from the second quarter stock to this inventory of the third quarter, why it increased? and where do you think it's going to go? The direction and the comfort that you have in this relation is very important for us. These two questions.
Thank you for your questions. I'm going to address the. From the standpoint of gross margin. We have four initiatives, three of them which we already implemented at the end of last year, which are currently helping us to increase our level of gross margins. They are structural and will continue going forward. The first one, in relation to the best purchase of inputs and purchased products. We have good negotiations going forward with our suppliers, suppliers of watches, accessories, and gemstones, which we have a great deal of efficiency in these negotiations.
The second question, and the most relevant certainly, is the implementation of the distribution center in Espírito Santo, which has had an impact on our rates and our gross margins. It is also a point which is fundamental for the increase of that, and it's also perennial. We will continue gaining with this benefit going forward. The third is the diligent management of pricing. We have a stock which is larger, we have an advantage compared to our competitors. We manage very carefully the gains of share and the gain of margins that we have done this. In our opinion, in a very satisfactory way. Finally, the four levers. Over the next quarters, final last quarters, we increased greatly the number of people in the factory to nationalize more and more our production.
We have been able, through the nationalization of Life and giving more efficiency to our goldsmiths, that the products come out a little cheaper from our factory. We have a reduction of people over the last few months in the factory. This was already a plan that we had, an internal plan that we have. Once they gain more and more productivity and have more technical knowledge, they're able to produce more and more. We choose either we increase our level of production or are more efficient from the standpoint of personnel. For the gross margin, it's these four points. From the standpoint of inventories, we have an increase of BRL 120 million. When we consider the CGG of these BRL 120 million to do a little bridge, half of that increase came from gold, which we captured in the market.
It's a stock which is very good because it attends very well the need. We have no need to purchase gold for the next few months. We've already put this into the release. At the end of the next quarter, we will have an excess of gold, of raw material in our hands of almost 130 kg. This will bring us a natural reduction, both of stock need of days of inventory, and without the need of purchasing gold. Half of this increase comes from this week of gold. We had BRL 10 million of this BRL 120 million, the BRL 10 million, which is the impact of the GGR. The rest, when we compare the other BRL 50 million, which are lacking to close this account, is due to seasonality. We see an important effect, which is the increase of 4% in our stocks.
In this third quarter, when in previous years, we increased by three or four times as much. It's a natural effect of giving our optimization of going forward with that, which we planned to do at the end of last year. Added to first front, we have no need to purchase gold [Foreign language] Our productive capacity, and we already have the historic data. The sales from the last quarter was very relevant, and this relation between sales and cost and purchase cost, it's natural that we're able to do an optimization in this picture. I would also mention that both the dynamic of gross margin as well as stock is very much lined up with our projections, with gross margins as the same pillars.
Of the second quarter, with this gain in efficiency, which we've started to have in the factory due to the maturity that our goldsmiths are having. We have an additional benefit in this quarter, which was the center of Espírito Santo. We're not purchasing in May. It happened the same way as. Due to that, we have a sequential. Since 2020. And so, we're melting down. The same store sales that we have in several quarters that we are removing from the stores, that which we are not going to be able to, we won't be sold. From the 14% of same store sales. It's a great deal of assertiveness in these demands. As Ícaro mentioned, it's natural with the Black Friday and Christmas. When we compared it to other times, it's much lower.
[Foreign language] And for the gold that I have melted, I've done this, which is more than I produced. Naturally, I increased my raw material holdings in gold. The finished products, [Foreign language] The assertiveness of our plan to looking at the stocks that we see in the next quarters.
Okay, very clear, excellent. Just a quick follow-up. This dynamic of gross margin, revenue, any changes? any acceleration? any macro acceleration that is calling your attention in October?
No, we don't see any pendency, anything that is pending. We planned very well. We are very much in line with that, which we have committed to do. We're very animated with the seasonal sales.
Very good, Ícaro.
Thank you for your answers, Elias, Ícaro. Next question is from Danni Eiger.
Good morning, everyone. Thank you for taking my question. I have two. The first is about Life. We have seen a Life that is a little different than what we expected. As you mentioned, the initiatives for acceleration. Which caught my attention was the call-off in revenue of the mature. We saw that in the release, that was in the video as well. Initiatives that you're doing, and the initiative that we're doing, the release of Disney, and looking at your exposure in the stores. If you could bring us a little bit more of these initiatives? and make sure that it's in the video. Changing the exposition, which would generate results. If you could share that with us in these initiatives? what's being done as well as some preliminary indicators? it would be great.
Also in the follow-up in stocks, going forward, the composition of gold and silver in this, it's very robust stocks in Vivara, and we see that there's a very tranquil going forward. And Life, it's a little bit less. Is there any of them that are more important, more critical?
Preparing for 2026, we have already begun the tests in October. We're very animated from this standpoint. Looking at a general vision, there are three initiatives from the standpoint of innovation, the second from the standpoint of better exposition, and the third is people. Breaking this down, we broke down, we have Disney again in our stores. We've already practically done 10% of our sales, so we recovered a good rhythm of same store sales in the moment. We're going to do the same thing with these sales. We have two more.
Two great subcategories, which are collections and commercial. We increased the rhythm of launches at the end of last year, and we'll continue. We're accelerating the rhythm of innovation to maintain about 40% or 50% of innovation in our portfolio. The connections and rings, we're able to. When we talk about increasing stocks, it's much more beneficial from the standpoint of revenue.[Foreign language] . More potential with the same product that we have in the stores. [Foreign language] . With this information, [Foreign language] .
We're able to put the connections which sell the most in each one of the stores, pick up the best themes of moments, and put those in the stores, also increase the potential of sales. We see a very classic example: when you go to a shoe store, you don't expose the same brown model around 38 and 39 and 40. You increase your potential in a way that's very simple. That's the simple explanation that we have done to increase the same store. We tested that in 15 stores, which is almost 10% of our portfolio of stores. With the seasonality, we're going to do the rollout to all of our stores. [Foreign language]
Our sales force, we're working on that. [Foreign language] I think that life is addressed from the standpoint of stocks and the dynamic between gold and silver. We have a. As we said in the release, we have 130 kg of gold, which is contracted as a reduction. This is excessive raw material, more than what we need to run the factory, so it's natural that over the next quarters we won't be buying gold. In the first quarter of next year, we probably also won't have to buy gold. [Foreign language] . We'll see an increase of. Generation of operating cash.
Which is almost set. From the standpoint of absolute numbers, this gives us a tranquility that we can utilize this to invest in Life and potential as same store sales. Between gold and silver, it's very distant, very different. We have a good space going forward.
[Foreign language] Thank you for the congratulations on your results. Thank you and congratulations on your results.
Next question is from Celside. [Suare] is from Celside. Please.
[Foreign language] . I'm sorry. [Foreign language] How are you doing? [Foreign language] I'm going to double click on something which I've talked about with investors. If we could break down the dynamic of the stocks? [Foreign language].
Of the week, the gold week. We have an aspect which we think. The same store sales of Vivara. [Foreign language]. How much we've seen. And the volume we've seen in Vivara. How much has been the contribution of the products Of the two? Finally, excuse me for going along here, but the perspective of the stock on the fourth quarter. Your inventories, we have some guidance if you could, how many days of inventory you have? Not only in the fourth quarter, but also in the medium term, how many days of. If you go down from 60 days or from to what level you plan to move? First of all, from the standpoint of same store sales.
[Foreign language] It was not a surprise. It had been planned, and we saw this in our predictive models. Models which are very well run by our planning team and led by Juan. The work that we've done from the standpoint of redistribution of inventory to increase the potential of sales in our stores has been a motor for growth. For the same store sales of Vivara, added to the good management of the past two prices that we have done. We have not suffered very much from the standpoint of quantities. We've been diligent with that. It's natural that we have a little more care in passing price pass throughs in the commodities here, in the commercial products.
From the standpoint of same store sales of Vivara, we have a very high. It's a very high level for us. Last year, we had a very good performance. I think that the stats are that we have utilized our inventory in a way that is more optimized and more intelligent, with a great deal of calculations and analysis to extract the maximum potential of what we have on hand.
What gives you the comfort that the same stores will be maintained going forward? It's not a promise, not guidance or a promise, but all the optimization of the process of melting down and redistribution in stores, we're able to understand what are the jewels that don't have a good performance or that have low performance or have no performance in each one of our stores. With that, as we redistribute these jewels.
Melt them down afterwards, it has almost no negative impact from the standpoint of same store sales. We are very animated for the end of the year with what we planned from the standpoint of stocks, of being in the right places, the right pieces in the right places. I think that the tendency is very good. The second part of the question, we are not going to give it without giving any guidance about where we are stocks for the year. We also see that what we are doing so that this reduction happens, and it will depend a little bit on how the sales in the end of the year develop. It is natural that in the principle epic for sales in the fourth quarter, the exit of stocks right now. In the fourth quarter of last year, we are not purchasing gold.
Of the entrance of raw materials, we have a reduction, also a very strong reduction in the principal purchases, of purchases of importeds, which happened in the third quarter, to reinforce for Black Friday and for Christmas. These are levels which are very positive, which we see, but which naturally will have an effect in this quarter. Have an effect. Reduction. [Foreign language] As we mentioned, every quarter, we should continue to see this optimization of stocks during all of next year. Coming to levels of days of stock closer to what we had in previous years.
The principal indicators are there, very clear. I'm sorry, I made a lot of questions at once.
Just going back to one point in relation to the impact of the weak gold week and this increase of stocks that you have, if you could quantify the impact of that, it'd be important for us to know.
We opened this of the BRL 120 million that we added in the gold week, half of that. We have a dynamic of doing three gold weeks during the year. We just did one in October. It ended last week. Which is very beneficial for our business from the standpoint of the commercial standpoint and from the standpoint of our brand. The impact was half of the increase here, was the impact of that. Just remembering. In a structural way, of the BRL 120 million, half was gold week, 10% was GGR, and the other one was an increase from the standpoint of stock for the preparation for seasonality.
Contemplating all of the new launches. That's our motor here of same store sales. If we do a base, a comparative base of the weak gold week. We went up from 3% to 4%. In the level of stocks between the second and third quarters. Historically, this evolution between the second and third quarters is more than 10% or 15%. That would be the optimization of these stocks.
[Foreign language] Okay, thank you very much, people.
Our next question is from UBS. Vinícius from UBS.
[Foreign language] Same store sales da Vivara e da Life. The same store sales of Vivara and Life, how should we think about the growth of the volumes of tickets?
How do you think about the dynamics of the pass-through of prices going forward? To also understand a little bit how you see the sensitivity of the consumer? [Foreign language] . A second question, if you could comment. How has been the performance of the Life stores in shopping centers where there's Vivara and in shopping centers where there is no Vivara store? If you can help us to understand how this has evolved, how Life has evolved, disconnected from Vivara on its own?
Thank you for the question. Vinícius, let's start here. From the standpoint of same store sales, Vivara and Life. From the standpoint of jewels, we have a stock which is very . From the standpoint of raw materials, so we have, due to the good job that we've done in redistribution between stores.
This makes it possible for us to be cautious in the pass-through of prices so that we can gain share without losing efficiency, and we're able to have a little bit more of both gains in gross margin and gains in market share, which is very relevant. For Life, we see the, and the last month, but we also have a good [Foreign language] , as Elias mentioned. From the standpoint of costs, it's much less sensitive than in gold. We're very diligent in the pass-through of prices. It's a natural process that we do in our business. It's natural that we do this at some moment, perhaps at the end of this year or the beginning of next year. However, [Foreign language] , so it doesn't bother us so much.
It's a good question, and it's part of the operation of our day-to-day. For both the jewelry as well as for Life. In relation to the stores that have Vivara, those that have Vivara and the stores that, the shoppings that have Vivara and those that don't have, we've seen a performance which is a little different. In between these two situations, which is very beneficial because we see that the stores where there is no Vivara store in the shopping center have an opportunity to grow bigger than those that are combined with, that have both brands. In the future, we're planning to work with the brand to make Life more and more well-known, a natural process. Two or three years ago when we launched Life, it took three years to reach a mature store. Today it takes less.
Today it's only taking a year and a half. This means that more and more the brand has become better known and less dependent on the Vivara brand to endorse it. For us, we see this with very good eyes. To collect same store sales, very important same store sales for these stores and making it more and more well-known in these places where there is no Vivara.
Thank you, Ícaro.
[Foreign language] . Next question is from Eric from Santander, Eric?
Good morning, Ícaro and Elias. Thank you. From our side, there are two questions. Looking at the question again and the question of inventories, stocks looking at next year. At the moment in which you have consumed a lot of this excess gold that you have on hand. How do you see the question of pass-through s ince you've had to start to repurchase, make new purchases of gold? How's the space for that? How part of this stock, this current stock, should help you to maintain a dynamic which is more gradual of pass-throughs? Also looking at next year, we should have a certain acceleration in terms of openings, in terms of Life stores. You commented about the qualification of labor workers for the stores and the expenses of sales, which is very much controlled. Marrying these two, how can we think about the expenses of sales for next year?
[Foreign language] Due to the maturity of these and the impact of these. [Foreign language] The jewelry, which is the most relevant. The impact is more relevant. Due to the non-necessity of purchasing raw material in the first quarters. Of course, we're going to be very attentive, pay a lot of attention with the question of passing through prices. So that we have no need to do this all at once. When we need to purchase gold. Of course, we'll be. We've been. We've studied a great deal of this about this internally. And we have a plan well addressed for next year of price pass-throughs. Smaller increases during that cycle. For Life, the dynamic is the same. And we're going to do it during the next quarters.
We're going to maintain the same way that we've been doing that this year. We don't have raw materials stocked. [Foreign language] We have our strategic plan. A re-acceleration of these openings. Without giving any guidance. [Foreign language] . Helps us a lot. [Foreign language] . In relation to SG&A, we have a very marginal impact. You also act, and we answered. If we have, in fact, an increase.
Due to the low maturity level of these new stores, and the openings that we've done in this year are starting to gain more efficiency. Compensating for this relationship. So we have a marginal, this marginal impact does not bother us.
[Foreign language] Hi, Ícaro, Elias. A quick follow-up on in relation to the Vivara performance, can you give us a little more how the categories have o f laboratory diamonds have contributed to the growth of you? And if you've seen any more relevant in the behavior of the consumer in this context of the increases in these.
Gold items. Also, in the question of digital sales, there's been a good evolution there, but it's been a little bit below what we expected in the past.
Even with the launch of the app in April. I wonder if it's matured over this quarter. I wanted to understand. If Life is a little more representative in this channel. And how you're thinking about the strategy of this channel in the last quarter of the year. For Good Friday and for Black Friday and the end of the year sales, year-end sales.
[Foreign language] Let me add to your answer. We see these three categories, as we mentioned at the beginning. [Foreign language] Adding the new stock.
[Foreign language] We received this from our clients and it has made our volumes continue, and so naturally, we have a very strong pair with the price of gold and the stronger end of the share of these products has helped our volumes to be maintained. Therefore, we're not opening exactly when each one of these categories will be open, but they have a great potential for growth and they represent less than 10% of Vivara's sales. This one we are going to be doing several launches of these categories. Our principal ambassadors, and we're also very confident with the acceptance by the public of these three brands.
As far as e-commerce, we have had a good performance in the e-commerce. However, we still believe that there are several initiatives we can increase even more the growth in the e-commerce world. We had several problems with the system last year, which made our fourth quarter of e-commerce not have such a high growth. We are very prepared with the integration of these systems in this quarter to guarantee that all of the items that we have exclusively on the site. Beyond that, we also have considered several stores as hub stores, and the stocks at these stores are available so that clients can go and see and even do a faster pickup of these items. This has happened more strongly during this quarter, the third quarter, and our app is even more having shares. And it's an initiative that we are betting a lot on.
Which is the personal shoppers. We've had excellent results in this channel, in the sales channel, and by pressing that area, we have been faster growth in our e-commerce.
Okay, thank you very much, Elias, that was very clear.
[Foreign language] . Our next question is from Joseph from J.P. Morgan. [Foreign language] . Ladies and gentlemen, we have a technical problem with Joseph, and we're going to go to the next question. [Foreign language] . Next question is from Daniela.
Hi. Elias and Ícaro. I wanted to mention a question regarding the question of margins, looking at the stock. [Foreign language] If you could talk about the average cost of gold and silver?
[Foreign language] Until the third quarter of next year. [Foreign language] . However, you're paying a premium on the gold that you melt down. There should be some balance in the costs, your costs won't be so expensive . Let's go. Let me address this with the gold, which I think is the most relevant factor. What we've seen in our plan for 2026, due to the non-necessity of purchasing gold, but also the increment of the weak gold week, where we pay a little bit of this premium. We have a correction in the average cost of our stock. What we've seen here is as we pass through this price, we have a relation between the pass-through of prices, which is very favorable to us, and without passing prices through in an aggressive way. The possibility of gaining market share.
Added to an efficiency of gross margins. Is very real. For the next quarters. Let me see if I can. Okay, that's good. The price. We had this curve, this cost curve, which accompanies the price. You're trying to work with the replacement price of the replacement cost of gold. The relationship is. Our capacity to pass through them in prices and the capacity that we have without being aggressive, without offending our quantities. With the average cost of inventory is a relation of two to one. We gain a good efficiency, a good level of efficiency from the standpoint of margin for next year in jewelry. That's our plan. That's how we're going to be designing our plans for the next quarters. [Foreign language] .
To gain market share from raw materials based on these prices are very strategic. [Foreign language] To purchase gold and so that our prices won't be very much, will be out of date in terms of pass-throughs. [Foreign language] . Averaging with the entrance of gold week and the losses, which are very small. [Foreign language] . The loss on gold is less than 5%. [Foreign language] . Much less the loss than the difference between the average cost that we have of this gold versus this spot. It is very favorable for us to do this melting process.
[Foreign language] Our next question is from Daniela Bretthauer HSBC.
[Foreign language] . Good morning, everyone. [Foreign language] . Congratulations for your results. [Foreign language] . Elias, good morning. Some questions in relation to the operating expenses and another question regarding the relationship of the strategy of anticipation of receivables. Just to help us in the question of these projections going forward. You had an increase in professional services, hired professional services. It appears both in selling expenses, in sales expenses, as well as in the general and administrative expenses. Both went up a great deal. I know that the weight of the two in the total expenses is not the most important thing. However, I wanted to understand what is on that line?
What do you see, how would you orient this in terms of projections?
The other point, which is on the line of expenses, are the expenses with marketing. In this quarter, you had about 3.7%, almost 4%, being that in the previous year it was 2.5%. There was also an elevation in the marketing expenses. I want to know if we should consider that for projections, this higher level going forward. Showing a good result, at least in the sales, brand, and the sub-brands expenses, with these 31 million, that was positive 31 million in the line of expenses. These are my three questions, just to orient us of how to project going forward.
Okay. We did an anticipation in the second quarter. Which brought in the receivables from the third to the second quarter, which had a positive impact on our cash flow in the second quarter and a negative impact on the third quarter. We chose this BRL 90 million, which anticipated from the third to the second quarter in round numbers. We have a bigger cash flow in the second quarter. The normal part is to consume cash in the third quarter, and we did burn a lot of cash in the third quarter through our negotiations with suppliers and our actualization of our stocks. This anticipation was part of our project of lengthening out and stretching out the spreads of our debt. We had to do purchases of raw materials and metals using these advances, and we started to make these purchases in cash to get a better price. We did this together with.
About BRL 300 million in this quarter. Which is the five-year period and brought a reduction of a spread of 0.7. In the capital markets of debt, we are a AAA rating, and we're very happy with that issue. With that, we don't have the need to make new anticipations. Our cash flow is quite robust, and we're able to see that we've had an increase of BRL 150 million in gross debt. While our drawn risk was more than BRL 200 million. Which is a reduction of cash that we've had in that period. As far as the services of third parties, between selling and G&A and selling, we had more suppliers who have helped us to push sales. Bonuses and so forth. That was what pushed the question of third-party services and selling. Having G&A, the principal point was the expenses with IT.
Where we've had to, we've been looking at it as CapEx, but in the fourth quarter of last year, we started to consider them. We considered it OpEx. In the third quarter, we have normally had this effect. In the first quarter of this year, and in the third quarter, it's already been in smaller amounts because we have been very strongly negotiating with our suppliers, trying to reduce to the maximum our expenses with SG&A. We've had a lot of success on that front. Beyond the other things, essentially positive because we've had the recognition of a temporary credit of PIS, COFINS, which is the taxes, which is at its limit. These are credits which we will better discuss with the consultants, with the tax consultants, and the law offices, top law offices in Brazil, who have given us the opportunity.
To take advantage of within a very conservative view, which is our policy of use of tax planning. As other, we've done in other companies that we're doing and that we started doing in this quarter. As far as marketing, we've seen a more normalized line in this quarter. In the fourth quarter and third quarter of last year, we had a reduction, an important reduction. [Foreign language] In this quarter, within our normal flow of business. The next quarter is going forward. In the last quarters. [Foreign language] From the standpoint of conceptual standpoint. Last year, we had an execution due to the good negotiations that we've done. We've been more efficient.
However, for us, the idea is to have a good investment in the standpoint of our brand, to continue with that brand, which is more and more strong, stronger and stronger, and more aspirational. We are going to maintain the same levels here. Projections for the coming quarters, as we have maintained. We have been more efficient. We have these strategic pillars to maintain our brands very strong and very aspirational. We do not see any. We have some efficiencies here.
Thank you for your explanation, but just to close, your expenses, your marketing expenses should maintain at the same level as the third quarter going forward. The question of the other revenues and operational expenses was an increase, was a one-time, a one-off? For these questions of projections, we can maintain this and the current levels of 0.5% of revenue. Is that right?
And the anticipation of receivables we won't have again. Because you already restructured the profile of your debt and issued them, and then we won't have any further need to anticipate. You'll also have an effect on the operating expenses in the coming quarters, yes. Yes, the big major indicators are conceptually.
Good day to you all.
Our next question is from Alexandre Minhoca of Morgan Stanley.
[Foreign language] Good morning, everyone. Thank you for taking my question. Congratulations on the results. I think we have to do some follow-up on the question of same-store sales of Life. If you could break down by segment, in between moments and collections? I think that you mentioned there's some initiatives that you're planning, increasing the rate of innovation.
If you could also comment about the difference in performance between these two categories? and how we might be able to think about this in moments?
I think it was underperforming a bit in recent quarters. Then again, addressing the digital area. Felipe had asked about this channel, and in the quarter, in the past quarter, you commented about expanding into new channels. If I'm not mistaken, you commented about eventual opening, eventually opening a profile of TikTok Shop. If you could also talk about these initiatives of new channels within the digital strategy, that would be interesting for us to know. Thank you.
Very good questions, Alexandre. Let's take it from the standpoint sales of Life. We could turn into two subcategories, and there's a third one which is commercial. Commercial, connections, and moments.
When we look at what we've been able to do, very well done at the end of last year from the standpoint of innovation, volumes, and launches. For commercials and collections. We already have performance of same-store sales, which is more evolved. From the standpoint of moments, we have to break it down into two fronts. Necklaces and collars. It's been suffering a little bit due to the lack of Disney. We recovered those launches of the Disney products in the middle of September. Disney has been performing with almost 10% of our sales of necklaces. We've been looking at that in the area of products. Sales is the next route that we're going to attack from the standpoint of innovation. In general, we would like to, and it will increase our indexes of innovation. Life. We understood that. The next.
It's almost common in fast fashion, which follows the current fashions, and with prices that are a little bit more accessible, making it possible for people to play a little more at the time when they buy. Digital sales, it's a very important pillar. I'm sure it's a very important pillar for us over this next fourth quarter, but especially for the fourth quarter. There are some questions which need to be addressed. We have a very. [Foreign language] The second is to increase our rate of conversion, which we have a lot of opportunities to increase our conversion rates through better searches and a better client experience. The third is in relation to new channels. We separate this into three fronts. The first one is to return to the marketplaces. We're finalizing some partnerships.
We have an increase, which is very good from the standpoint of sales for the digital channel in this marketplace. Second of them is in relation to, it's not a new channel, but it's very important for us, which is to increase the efficiency of our CRM. We utilize it and how we can better utilize that channel, so that we are able to be more, less dependent on paid media, bringing in a more qualified public. Also, which our biggest bet is on the standpoint of consultative sales. We had zero reais of sales in this channel. We structured this channel, and it has performed very well and given us an important slice of our e-commerce sales, and has structured itself to more than double the sales coming from this channel, which is a tendency for our business here.
We understand that the future of digital sales here has a tremendous amount of opportunity, and we're very animated about that. Finally, we have the closing of all the technology and structure which we've been working with over the next few months in a way that we're able to support all of this operation and these digital channels.
Very well, that's very clear. Thank you very much.
[Foreign language] There's no more questions, so we'll close this video conference results for Vivara. The investor relations department is at your service for any other questions or doubts you might have. And have a great day. Now I'm going to pass the word over to Elias and Ícaro for their final comments.
Thank you all very much for this session. It's a pleasure to be here looking at these results with you.
I want to thank you immensely, all of our teams, our Salesforce, the factory, our office people, operational, who have worked hard to deliver these results. From the standpoint of [Foreign language] i. Thank you for the sales in the same-store sales, especially independent of this scenario, which is a little more adverse scenario. We have delivered what we have committed to. We are going to thank you all publicly. Once again, Tayo is not with us due to a very special motive. He had a child this week. We wanted to offer this to all. Excellent, a great level of excellence. He'll be back with us soon. We'll see you in our next session. Thank you all, and a big hug. Thank you very much. Thank you, good day.