Sendas Distribuidora S.A. (ASAI) Q4 2022 Earnings Call Transcript

Sendas Distribuidora S.A. (NYSE:ASAI) Q4 2022 Earnings Conference Call February 16, 2023 9:00 AM ET

Company Participants

Gabrielle Helu - Investor Relations Director

Belmiro de Gomes - Chief Executive Officer

Daniela Sabbag - Chief Financial Officer

Wlamir dos Anjos - Logistics and Commercial VP

Anderson Castilho - Operational VP

Conference Call Participants

Danniela Eiger - XP

Maria Clara - Itau

Marcella Recchia - Credit Suisse

Vinicius Strano - UBS

Vinicius Pretto - Bank of America

Ruben Couto - Santander

Irma Sgarz - Goldman Sachs

Andrew Ruben - Morgan Stanley

Operator

Good morning, everyone, and convey you truthful overmuch for waiting. Welcome to nan net telephone for nan 4th of 2022 for Assai Atacadista.

I would for illustration to item that if you request simultaneous translation, we person this instrumentality disposable connected our platform. For this, conscionable click connected nan mentation fastener done nan icon connected globe astatine nan bottommost portion of your surface and take nan connection of preference, Portuguese aliases English.

This net telephone is being recorded and will beryllium provided connected nan company's IR website, ir.assai.com.br, wherever you tin besides find nan net release.

During nan presentation, each of nan participants will person their mics off. Soon after, we'll statesman nan convention pinch Q&A. [Operator Instructions]

The accusation successful this net telephone and imaginable statements that could beryllium made during nan telephone regarding business perspectives, forecasts and operational targets and financial targets astatine Assai correspond assumptions and beliefs of nan company's guidance arsenic good arsenic accusation that's presently available.

Future statements are not a guarantee of performance. They impact risks and uncertainties and assumptions because they mention to early events and frankincense trust connected circumstances that could aliases not occur. Investors, should understand that marketplace conditions and different operational factors could impact nan early capacity of Assai and lead to results that different materially arsenic those listed successful early statements.

Now, I'll walk connected nan level to Gabrielle Helu, she's nan Investor Relations Director, Assai.

Gabrielle Helu

Hello. Good morning, ladies and gentlemen. Thank you for your information successful our net telephone for nan 4th fourth of 2022.

We'd for illustration to induce nan guidance squad to coming themselves. So, we person Belmiro de Gomes; Daniela Sabbag, nan CFO; Wlamir, VP for Logistics and Commercial VP; Anderson Castilho, Operational VP.

Before we statesman nan presentation, I'll walk nan level connected to Belmiro for his first remarks.

Belmiro de Gomes

Thank you, Gabi. Thank you, everyone, for your participation. I want to convey you each for your beingness and particularly convey each of nan Assai squad and our partners and suppliers. I want to convey nan members of nan Board. Due to nan awesome efforts and activity from our squad and different group and different companies, suppliers, supporters, that led to nan results that we person successful nan position and besides nan expectations we person across.

2022 was an bonzer year, 1 of nan champion and astir important successful our maturation track. So, we had 60 openings of caller large stores. And we invested complete BRL4 billion. With this, nan institution generated complete 16,000 caller occupation positions. We became nan biggest backstage employer successful Brazil. And it was nan twelvemonth wherever moreover pinch each of nan challenges economically, ostentation and stability, unit connected consumption, nan institution kept its maturation way grounds and stability, predictability, whether we look astatine numbers generally, but besides erstwhile we look astatine nan different forecasts provided to nan marketplace successful this project, particularly pinch nan purchases of nan hypermarkets from Extra. With this, we reached 108 openings successful nan past 3 years. The institution doubled successful size successful nan past 3 years. And conscionable arsenic we're going to spot successful Anderson, Danny and Wlamir's presentations, galore different indicators besides doubling. So, nan strategy we've been moving connected to negociate a shop web positive immense description process that we could walk hours present talking astir pinch each nan specifications and nan levels of efforts, we judge that nan numbers really show nan characteristics and stability.

We besides had this twelvemonth immoderate improvement and this is important successful nan model. We've been searching for this. As we mentioned, different opportunities to amended nan acquisition acquisition nan customers person sloppy of their societal levels we've been moving connected awesome efforts to support our main debased costs, but besides amended acquisition experiences for customers, consumers sloppy of their societal levels, but also, pinch B2B customers. We had important advancement successful governance pinch nan cognition of a caller related statement and of liking policies arsenic well, which is successful statement pinch nan Board arsenic good to support an important improvement from a governance perspective.

I'll walk nan level connected to Wlamir. He's our Commercial and Logistics VP. He'll springiness america a small much specifications connected nan capacity and income margins and past we'll get backmost to nan expectations for 2023. Thank you very much.

Wlamir dos Anjos

Thanks, Belmiro. Good morning, ladies and gentlemen. I want to convey you each for your presence. Also, I want to convey Assai squad and -- for immoderate reason, I can't spot nan position connected nan screen, but I deliberation it's there. Yes, it's shared connected nan screen. Okay, great.

So, let's talk astir nan income successful nan 4th fourth and what happened successful nan year. As you tin see, we ended nan twelvemonth pinch -- pinch nan 4th quarter, sorry, pinch BRL16 cardinal successful gross and nett sales. So, we doubled nan magnitude of income successful 3 years erstwhile compared to 2019. This is past repeated erstwhile we return a look astatine nan closed year, we ended pinch maturation of 31%, BRL54.5 cardinal successful revenue. The numbers are very strong, very coagulated and this demonstrates nan resilience of Assai and stableness successful our business.

When we look astatine nan numbers, I deliberation a bully portion of this publication came from nan stores we opened past year, whether they are integrated aliases besides from nan converted shop network, which are wrong this ramp of what we planned for these stores. And it's really successful this increasing curve pinch what nan institution expected. So, we should besides mention that successful this part, nan summation of flow, and this has really made america very satisfied and excited for 2023.

When we return a look astatine this, we still person an important ostentation and waste and acquisition down impact, but overall, I deliberation we were capable to reverse this pinch nan inclusion of caller categories, caller services. We're going to supply successful item per caput and besides nan truth that we were capable to summation nan customer flow.

When we look astatine sales, we spot nan Nielsen measurements. We tin understand that our commercialized strategy is very bully and good -- very precise. We had successful nan 4th fourth complete 2% marketplace stock gains nationally, and to get into much specifications here. When we look astatine nan City of Sao Paulo, it was an cognition wherever we invested a lot, pinch 27 stores successful nan State of Sao Paulo. We had an increase, 4% successful nan state. And conscionable to springiness you an idea, conscionable successful Sao Paulo, we accrued our stock by 5 percent points. So, moreover pinch nan stores being successful a parameter, that is really large particularly erstwhile you look astatine nan mean income area pinch nan different stores. We were capable to support nan growth. We went from BRL4,500 income per quadrate metre to BRL4,700, demonstrating that each -- pinch each nan invention and nan improvement of our model, we proceed to beryllium very precise successful our proposal.

So, we tin move connected to nan adjacent slide, please. Well, my relationship is not that awesome correct now, but anyways, this -- for immoderate reason, I'm having immoderate method issues. But erstwhile we look astatine nan gross profit, it's besides doubling and we had astir BRL2.7 cardinal of gross profit successful this 4th and BRL9 cardinal successful nan year. I deliberation sloppy of nan gross profit generated, I want to item nan stability. So, if you return a look astatine this, we brought nan gross margins successful nan past 4 years, and you'll spot that successful this 4th and nan twelvemonth nan variations are very mini sloppy of nan size of nan efforts to unfastened up nan 60 stores pinch pre-op costs. And I deliberation nan strategy, everything that was done besides allowed america to present a worth proposition that's amended for nan customers, adjusting nan assortment successful each shop and region for nan surrounding public. So, I deliberation we're very precise. And I deliberation we're really focused connected really being capable to supply a bully acquisition acquisition for each region.

I wanted to return advantage of this infinitesimal to mention nan investments successful our logistics. To support nan description of nan 60 stores successful this year, we had an increment. We opened 3 caller DCs, 1 was substitution to smaller DCs and we accrued our capacity for retention by astir 40%. And past we had this caller portion successful [Belem] (ph), it's a mini DC. And too looking astatine each of this, we besides person nan back-office structuring this to support not only this finance successful 2022 pinch logistics, but besides reasoning astir nan ongoing description wherever nan adjacent 3 years will beryllium supported by a logistical structure. So, I deliberation that was beautiful overmuch it.

But there's different constituent to mention, which is -- mobility that's going to travel around, which is, you'll spot that successful nan moving capital, particularly for supply, we had a important increase. These were negotiations, summation successful deadlines pinch a immense description . And so, we did discuss immoderate further timing and terms, and truthful this will besides supply immoderate alleviation connected nan CapEx invested.

I deliberation that's beautiful overmuch it connected my side. I'll walk nan level connected to Anderson, truthful he tin springiness america much specifications connected nan operation. Thank you each truthful much.

Anderson Castilho

Well, thanks, Wlamir. Good morning, everyone. Thanks to each of our squad and partners.

We're ace thankful and happy pinch nan activity reinforcing this that Wlamir already mentioned is really an all-time high. We're talking astir 60 stores pinch nan project. We began pinch an first guidance for 52. So, we situation ourselves to make those 58 and we've reached nan extremity of nan twelvemonth delivering 60. So, I deliberation it's an all-time precocious for Assai, but besides for nan assemblage arsenic a full erstwhile it comes to rate and carry. And this demonstrates nan spot and capacity of our team.

We had 13 integrated stores and 46 hypermarkets transformed. Within this, successful 17 different states, which reinforces nan complexity and nan spot of our location offices commercially pinch trading arsenic good and operations to execute this project, which involves nan full institution arsenic a awesome situation particularly successful nan past quarter, we opened complete 37 stores. And we reinforced that we person a task pinch 47 hypers that were transforming from hypermarkets to rate and transportation stores. And we person an moreover bigger situation that demanded a batch from our squad for engineering and studies, particularly erstwhile it comes to providing immoderate structural reinforcement, we were talking astir hypermarket pinch astir 1,000 kilos per quadrate metre and assistance for firefighting, cooling. And so, it's really a restructuring process to beryllium capable to work our business model.

And I deliberation we person immoderate examples that we've mentioned owed to nan size of nan project. We're talking astir 12,000 kilometers of electrical cables, it's a lot. And 4,050 statue – [Christ] (ph) statues if we were to see nan magnitude of concrete. So, astatine nan extremity of nan day, what we ever worked connected is to ever connection a bully shop pinch bully lighting, modern instrumentality -- building and furnishings -- an instrumentality pinch debased costs perspectives and reasoning astir nan early attraction of these assets. So, we person -- customers person a existent different acquisition compared to what they had earlier and what they are receiving now.

When we talk astir debased costs, Gabi, please, if you could spell complete nan adjacent slide. Here we talk astir nan timeline. And we tin show intelligibly that nan subject from our team, erstwhile we talk astir expenses, we person awesome attraction connected processing nan project, chiefly innovation, but ever being observant to make judge we don't harm nan principle of nan business model, which is debased expenses. So, we connection this caller experience, customers that were hypermarket customers, really consciousness that location is simply a large quality successful nan exemplary and nan value of nan shop we delivered. And we ever person this position for nan B2B and B2C customers and we accommodate nan assortment, amended nan services and customers ever hunt for little prices and a spot of each of that.

So, erstwhile we return a look astatine nan timeline, we person this task we've consolidated already and truthful we expanded this moreover more. We added this to our stores. Then, we person nan important, which is basically, we benignant of conscionable alteration a spot of nan work proviso we already supply to customers and each of nan Assai stores, particularly erstwhile we look astatine nan transformational market, nan edifice owners, pizza shops, nan pastel, and different snack shops. And so, we standardized this considering nan size of nan hypermarkets, which relationship to concentrators this and bringing this to nan customer pinch amended services searching for amended sales, of course. So, nan numbers reenforce nan subject of our squad pinch expenses, timeline and, of course, without changing nan Assai work, right, without losing our characteristic of value and debased cost, right.

So, we deliver, arsenic Wlamir mentioned, nan stores person really position -- a affirmative perspective. We person a customer travel that's ace absorbing also. We already had this arsenic a reference successful nan stores we transformed successful nan erstwhile years. This remains and this really makes america proceed to work, proceed to grow and we ideate we're really connected nan correct path. So, I besides want to return advantage of this infinitesimal to convey each of nan operations squad and nan areas involved. I deliberation we had immoderate awesome activity done and that's fundamentally what I had to share.

Thank you truthful much. Now, I will walk nan level to Dainela, our Financial Director.

Daniela Sabbag

Thanks, Anderson. Good morning, everyone.

As a consequence of everything that was already presented by Wlamir and Anderson, I want to talk astir our EBITDA, and fundamentally this EBITDA doubled successful 3 years astatine a play wherever we opened 107 stores. We ended nan 4th fourth pinch adjusted EBITDA of BRL1.3 billion. And what's important to item is that if we were to offset nan effects of nan pre-operational expenses regarding nan description this year, we would person an EBITDA separator successful nan 4th of 7.7%.

In nan year, nan EBITDA reached BRL3.9 cardinal and a separator of astir 7.2%. So, if we were to set nan pre-operational expenses arsenic well, we would spot that we person an EBITDA separator of astir 7.4%, which is beautiful similar, if you were to see what we delivered past year, past if we were to region that and person nan recurring stores, truthful eliminating nan effects of this description , right. And erstwhile we return a look astatine this EBITDA, it's really applicable if we were to see each of nan description historically, we've already discussed, pinch 60 shop openings and its profitability has been very consistent. It's a very resilient portfolio. And I conscionable wanted to summarize a small spot of what we've already been discussing pinch you guys.

Now, nan conversions person been presenting speedy maturity arsenic good arsenic a rigorous power of immoderate of nan expenses that Anderson mentioned, truthful I deliberation that reinforcing that location was an anticipation from nan marketplace erstwhile we were talking astir nan shop conversion task that our EBITDA separator would beryllium astir 7%. And so, astatine nan extremity of nan day, we delivered a number that was surprising, which is 7.2%, and we're ace satisfied pinch that and these results. But from this slide, that's beautiful overmuch what I wanted to mention, right.

We could move connected to nan different descent pinch nan financial results and rate procreation maybe. We had a financial consequence that successful nan 4th fourth reached BRL445 cardinal aliases 2.8% of nan sales. And we ever bring successful this study by excluding nan effects of nan liking -- lease liking and from this perspective, nan financial expenses were astir 1.7% of sales. And this result, of course, successful nan twelvemonth is astir BRL1.5 billion, excluding nan BRL1 cardinal liability effect and 1.8% of our sales.

So, of course, we person an important effect present pinch nan summation of interest, and this year, we had to -- 12.4, and past twelvemonth 4.4. So that was a important impact. And also, nan fundraising we had to beryllium capable to grip each of nan finance plans and shop conversions, truthful we had immoderate fundraising we announced quarter-over-quarter. These are very important and sometimes moreover -- sometimes helping to little this and these were -- our indebtedness was astir from BRL8 cardinal to BRL12.4 billion, which besides explains this effect a bit.

So, moving connected to rate procreation -- conscionable a second, astir nan debt, I deliberation it's important to mention that our costs of indebtedness is still CDI positive 1.5% and nan mean word of 3.5 years. So, we ended nan twelvemonth pinch astir -- a EBITDA -- nett indebtedness to EBITDA ratio astir 2.2x, 2.19x to beryllium precise wrong our expectations and moreover a small spot little than what I was mentioning to you guys. We were talking astir 2.5x, but location was for illustration immoderate displacement of different payments that benignant of explains portion of this.

When we move connected to rate generation, nan rate procreation successful nan past 12 months, we generated BRL4.2 billion. This is ace important for our performance. And it's an increment of almost BRL2 cardinal and a really important part, which was coming from nan operational improvements and besides nan strengthening of nan institution successful cardinal regions pinch precocious density, truthful that optimizes moving capital. As Wlamir mentioned, this was an important publication for this benignant of rate generation.

Then present we besides person an knowing of nan investments of BRL3.6 cardinal pinch nan other payments and financial expenses, arsenic I mentioned. Of course, this nett indebtedness for nan first quarters owed to nan seasonality increases a bit, because we person each of nan CapEx pinch nan 2nd activity of conversions which takes spot now successful nan adjacent quarters. And people this is simply a variation, but I deliberation it's important to mention that it's really wrong what we planned for this project, and very coherent arsenic well, and what we've been mentioning to nan marketplace arsenic a whole.

So, connected nan adjacent slide, for last remarks, erstwhile it comes to our results and past aft I'll walk nan level to Belmiro. Here, we person an overview of nan profits, successful nan quarter, was BRL406 cardinal and a separator of 2.5%. And successful nan year, BRL1.2 cardinal and margins of 2.2%. So, it's a profit that we see to beryllium really beardown and it becomes moreover much applicable successful this discourse pinch precocious liking that we've noticed passim nan twelvemonth and each of nan investments. So -- and that, of course, reflects maturity of nan stores and nan occurrence of nan commercialized strategy and subject towards our expenses.

So, I deliberation these are nan main points erstwhile it comes to nan results and earnings. And I'll walk nan level to Belmiro to talk astir ESG, okay.

Belmiro de Gomes

Thanks, Danny.

Of course, erstwhile you look astatine each nan numbers and nan advances pinch customers, but besides nan magnitude of stores, were important advances, particularly regarding ESG, nan institution is ace alert of its societal responsibility. And owed to nan size of nan company, nan magnitude of customer service, truthful we had galore advances, immoderate highlights, moreover pinch nan inclusion of Assai successful ISE Index for B3 successful companies erstwhile it comes to sustainability, and nan truth that we came successful pinch a precocious level of suppliers. And wrong this GPTW Index arsenic 1 of nan 10 champion companies to activity successful and besides nan creation successful 2023 of nan Assai Institute, which is going to beryllium ace important to support our activity successful societal projects.

So, nan institution has galore different initiatives successful this consciousness and this really is successful statement pinch our values and culture. And there's awesome activity besides to beryllium this reference erstwhile it comes to societal advances and inclusion of group pinch disabilities and beardown hunt for gender equality and different group issues. So, nan institution isn't moving on pinch galore advances erstwhile it came to this topic.

So, we tin beforehand now; expectations for 2023. When you see nan magnitude of shop openings that are made from 108, 107 openings, 60 different shop openings, we are keeping nan investments and nan institution remains having nan beardown description scheme for 2023 wherever nan objective, of course, is to complete nan conclusion of nan stores, nan Extra conversions wherever we had 19 conversions we person to present this twelvemonth still and nan opening pinch 40 -- and nan nonsubjective of having 40 openings -- truthful then, till nan extremity of 2023.

There is an anticipation of a amended curve successful nan liking rate. This doesn't alteration investments successful caller stores. The projects we had are nan aforesaid erstwhile it comes to nan perspectives and expectations erstwhile we present this project, arsenic good arsenic pinch nan integrated stores. And so, moreover if location is still immoderate unit successful this nett indebtedness to EBITDA indicator, owed to this activity of payments and truthful we're going to travel this deleveraging curve, it's going to beryllium really quick. So, we should extremity 2023 pinch a nett indebtedness to EBITDA astatine astir 2 times. And successful 2024, it'll driblet to 1.5 times, moreover pinch a script that is simply a small much fierce for nan liking scenario.

And truthful -- but we person seen erstwhile again nutrient -- mentioned immoderate much inflationary indexes, there's immoderate alleviation erstwhile it comes to pressure. And we've seen immoderate analysis, possibly nan driblet successful ostentation could harm sales. But we person to retrieve that a large portion of nan organization had important waste and acquisition down successful nan past years. So, if you look astatine nan humanities curves successful nan nutrient sector, but particularly for nan wholesale operations, usually aforesaid shop income successful a play pinch precocious ostentation grows little than nan inflation, but it grows moreover much erstwhile you person little ostentation because nan organization is very anxious to resume and retrieve their normal acquisition behavior.

So, 1 of nan intends that nan organization adopted successful this precocious nutrient ostentation was to set nan acquisition mix. So, erstwhile you return a look astatine -- for illustration a consumer, that's a emblematic wholesale consumer. He has a definite magnitude of money he tin walk sloppy of nan inflation. So, moreover if nan ostentation is going to supply immoderate relief, which will beryllium very beneficial to nan population, this should favour america because of nan trade-down effect we noticed that was truthful beardown successful nan past 3 years. So, what we've seen truthful acold is nan conversions we performed successful nan almanac of nan 4th quarter, it was possibly not arsenic we expected. So, we started opening a batch much successful nan extremity of 2022 January. We already person nan first afloat period of this conversions and nan marketplace stock gains, that Wlamir mentioned, were really accentuated successful January and February.

So, Assai goes done a awesome summation of complete 3 points of marketplace share. And we're already astatine 5 percent points. So, to springiness you an idea, particularly nan stores that were precocious converted and this unit you person connected income and nan hunt for prices pinch a operation of what we did to amended nan acquisition experience, expanding nan assortment and being observant pinch nan debased operational costs really generated an important combination. We're noticing this successful nan flow. We're reaching galore records and all-time highs. In January, we had much than 6 cardinal tickets owed to nan beardown publication of nan precocious opened stores. So, of course, we've seen that these stores didn't person specified a large effect successful nan margin.

The institution continues to travel a strategy to support up pinch nan ramp up of nan converted stores, balancing income and margins pinch our eyes unfastened connected competitory advantages if we request to put successful these margins that will return place, but it's not what we're looking at, astatine this moment. So, we support this anticipation for 2023 pinch nan EBITDA levels beautiful overmuch astatine nan aforesaid levels 2023 and that's erstwhile nan institution is really going to hunt for growth. So, nan maturation truthful acold were half of nan first quarter. And it's going to beryllium higher than nan maturation that we had successful nan same-store income guidelines and nan full base, which gives america much condemnation that nan plan, arsenic it was executed, and what we presented to nan market, we've been capable to execute moreover a small supra what we had mentioned to nan marketplace arsenic a whole.

So, wrong 2023, we should person immoderate improvement -- ongoing improvement from a governance perspective. We really person our eyes open. And we've been talking to our shareholder -- our controlling shareholder to execute nan modifications from a governance position to guarantee nan information of number shareholders, reflecting connected nan caller Board to support nan aforesaid shareholding liking and share, and also, erstwhile we look astatine immoderate procedures to really group nan way to go a existent corporation.

So, this is what I had to opportunity for 2023. And I'll walk nan level backmost to Gabi for nan Q&A session. Thank you truthful much, ladies and gentlemen.

Question-and-Answer Session

Operator

Thank you, Belmiro. We tin commencement pinch nan Q&A session. We're going to travel nan queue of nan questions that arrived. Now, we will commencement nan Q&A session. [Operator Instructions]

We will commencement pinch our first mobility coming from Danniela Eiger, nan waste broadside expert from XP. We will alteration your audio, truthful you whitethorn proceed, please.

Danniela Eiger

Thank you. Good morning, and acknowledgment for taking my question. I'll congratulate you connected nan results and earnings. We person 2 questions. I person more, but I'll attraction connected two. So, nan first 1 is, erstwhile it comes to nan maturation dynamics that you mentioned, you mentioned that it's accelerating compared to what we saw successful nan 4th quarter. But we've seen a batch of investors being very concerned pinch an effect of imaginable slowdown successful nan nutrient ostentation and really this could possibly bespeak successful aforesaid shop sales. We do want to understand really you're looking astatine this wide equation betwixt value and measurement complete nan year? And possibly a betterment successful volumes could lend to bring successful a small much colour connected this acceleration, if this comes from this point? So, I deliberation that's nan first aspect.

And nan 2nd point, you've already covered a bit, which is astir governance. So, we besides deliberation it would beryllium bully to person a small much visibility, you've already mentioned that a spot successful nan past, but what's nan mindset pinch Assai much to nan mid-term erstwhile it comes to governance? Is it for illustration moving towards a corp aliases really having this twelvemonth a renewal of nan Board arsenic an important motion that this is nan way you are going to beryllium pursuing successful statement pinch nan main shareholder? It would beryllium bully to understand a spot much of these discussions, right, and what nan way is for nan institution successful nan mid-term erstwhile it comes to governance?

Belmiro de Gomes

Okay, perfect, Danny. Thanks for your questions. Let's commencement pinch nan first mobility -- nan 2nd question. So, governance, yes, this is nan path. We've been providing immoderate signs to this. Of course, we person galore different alignments. We're really successful statement pinch our controlling shareholder and renewal of nan Board will supply 1 much motion of this. Just arsenic successful nan 4th quarter, nan modification of nan argumentation for related parties provided immoderate comfortableness since we person 70% [Technical Difficulty].

We will do truthful to beryllium capable to make nan investments quicker. And we won't activity connected specified an fierce attack to accelerate nan ramp-up curve destroying margins very quickly. We had -- we reached almost 67,000 employees, and you tin spot this. But nan biggest item and nan level of costs we're capable to prosecute much than 3,000 group for support pinch training, caller hires and really being capable to support nan stability. So, location was a concern, of course, nan marketplace ever has concerns. But first, we were capable to unfastened what was nan effect successful nan margins and expenses and nan continuity of this. So, first, we're ace optimistic now, particularly pinch nan numbers we've been looking astatine truthful acold successful nan comparative position compared to nan market. I dream I answered your question.

Danniela Eiger

So, conscionable astatine this point, connected nan integrated tally rate, nan attraction of these 20 openings would make consciousness astatine all?

Belmiro de Gomes

Well, we can't mention that it's clear motion because, of course, location is indicators for nan important connected nan return connected invested capital. So, 1 of nan constituent is that, Assai is really acknowledged for its maturation way record, but besides because of nan transportation of awesome returns. So, these 20 projects were already underway moreover earlier nan acquisition of nan Extra stores, wherever we really focused connected nan conversions of nan hypermarkets.

So, these are projects that we weighted much pinch nan champion projects from an integrated perspective, balancing retired nan licenses, maturity successful nan stores and margins. But location was a important summation successful nan costs of construction, particularly erstwhile it comes to cement, concrete, and steel, which is thing that successful nan integrated stores wherever you built each nan infrastructure and nan foundation, location could beryllium a bigger impact, and this could lead to a revision successful nan task portfolio. So, astatine slightest 15 openings successful nan adjacent years could beryllium expected.

So, location is simply a attraction besides connected deleveraging, and 2022 and '23 were beautiful strong. We're expecting nan curve to return spot successful nan 4th fourth this year, and successful 2024 especially, we scheme to deleverage nan institution a lot, because past we've already gone complete nan large finance period. So, this is not only pinch nan costs of conversion of caller stores, but besides nan payments made to GPA which extremity successful 2024, nan smallest instalments successful 2024. So, that's erstwhile we already person a nett indebtedness to EBITDA ratio that's smaller than 1.5x.

Danniela Eiger

Perfect, convey you.

Operator

So, now our adjacent mobility is from Maria Clara, nan sell-side analysts from Itau. Maria, we will unfastened up your audio, truthful you whitethorn proceed.

Maria Clara

Hi, guys, acknowledgment for taking our question. Here connected our side, we would for illustration to explicate a spot much of nan rumor pinch nan betterment successful nan dynamics pinch your narration pinch suppliers. So, arsenic we deliberation astir much of a gross separator perspective, is it reasonable to see that these much favorable position could positively effect nan profitability dynamics erstwhile we look ahead? And this is from a moving superior perspective, does it make consciousness to deliberation that we person a caller moving superior level successful nan operation? Thanks.

Belmiro de Gomes

Wlamir, do you want to reply this one?

Wlamir dos Anjos

Yes, sure, I'll answer. But acknowledgment for this question, Maria Clara. Of course, we -- erstwhile we see nan speech pinch suppliers, this is thing constant. And what we are estimating is that pinch this inclination towards description , we sat down pinch nan suppliers and we person this activity to summation nan terms. Of course, arsenic I mentioned, this is thing that we're going to beryllium moving connected extending now successful 2023-2024. And we were capable to achieve, not only this and nan speech of terms, but besides pricing. So, erstwhile we look astatine nan stableness and equilibrium betwixt nan gross margins, but besides successful nan levels of stock, this demonstrates nan precision of our commercialized argumentation and what we tin deploy.

So, yes, we proceed to discuss termings to not person -- to beryllium capable to proceed to grow and besides discuss our prices to beryllium capable to beryllium competitive. So, erstwhile you adhd up nan gross margin, moving capital, disbursal control, makes america person this stock gain. And if you looked astatine nan different weeks, we had immoderate stock gains almost [28%] (ph). And so, this shows that this narration pinch suppliers has contributed to nan attraction of those indicators and nan expectations that we'll support these games that we kept successful 2022.

Maria Clara

So, convey you. Perfect.

Operator

So, nan adjacent mobility is from Marcella Recchia, nan sell-side analysts from Credit Suisse. Marcella, we will unfastened up your audio, truthful that you whitethorn proceed. Now, you whitethorn proceed, Marcella.

Marcella Recchia

Well, acknowledgment guys for taking my question, but we person 2 questions here. The first 1 is astir capitalized interest. We cognize this has been a awesome facet for discussions passim 2022 looking to nan magnitude of stores that were added to nan base. We besides cognize that this represented astir of nan profits successful nan company. So, we tin spot that nan full was almost a small much than 60% of nan profit successful 2022. So, arsenic nan institution is completing nan conversion process and opening up these past Extra stores, what should we expect passim nan first semester until you're opening up nan past conversions erstwhile it comes to capitalize liking that's still impacting nan profit line? That's my first question.

And nan 2nd mobility is astir nan conversions. So, successful our convention now successful nan opening of nan month, we had feedback that nan conversions already person income very adjacent to nan uplifts of 2 times, 2.5 times, and nan profitability is supra expected. So, this is particularly owed to nan bigger operation of individuals wrong sales. And Belmiro, I want to cognize from you if this is thing you're looking astatine thing occasional conscionable owed to nan macroeconomic script aliases if this surely represents an opportunity for nan gross margins to beryllium amended successful nan agelong tally erstwhile you see a operation that could besides beryllium better? Thanks, guys.

Belmiro de Gomes

Thanks. I'll reply astir nan conversions, and past Danny will talk astir nan capitalized interest, that's been important and that's really -- what we are moving on. So, Danny will item this more.

But erstwhile we look astatine nan conversions, nan gait is still kept. We're looking astatine 2 curves, nan income curve and nan separator curve. So, astatine this moment, we mentioned that there's going to beryllium immoderate stableness because we're ever going to beryllium prepared for an expanding competitory advantages. But, of course, nan stores, owed to nan level they person and nan region they are successful portion of, we do person expectations that we will scope a amended level of margin, moving capital, not only owed to nan existent scenario, but besides owed to nan truth that we already had nan expertise and nan different integrated stores that were opened successful downtown regions for different conversions, and that we really person been searching for different stance expanding nan betterment successful nan acquisition disbursal for customers and nan assortment to scope different societal level.

So, we've been searching to do what has been already going connected successful different countries wherever you spot each of nan organization buying successful operations that are very akin to ours. So, we do expect this. And, of course, it depends connected nan company's subject to negociate this. And so, we person a immense country, batch of diverseness and batch of inequality, which places a bunch of different challenges erstwhile we look astatine different regions and location is an anticipation for -- to seizure much margins. That's why we're very assured astir this project, positive we're very observant erstwhile we person different factors specified arsenic an summation successful title and much unit from nan market. And truthful -- and that's wherever being much careful.

Since nan stores person capacity now, we look astatine January and February, that's beautiful overmuch successful statement pinch what we plan. We still person immoderate income ramp up abstraction that we want to hunt for. And it could beryllium a small premature still. When we get into immoderate regions wherever they are portion of, I deliberation location is immoderate room for this. So, we were moreover criticized owed to changes successful our business model, but group are throwing sticks and stones. But we cognize that immoderate exemplary needs to germinate and location is evolution, modifications, and these models that were benignant of near -- they're operated successful our assemblage and they benignant of kept nan aforesaid exemplary and nan needs, nan customers person besides changed.

Customers want to person nan champion acquisition experience. And if it's imaginable to do keeping debased cost, we must do so. Sometimes, we tin grow this. Some of nan group that we ne'er ideate would bargain successful a wholesale operation, they're going to beryllium amazed level of acquisition successful nan merchandise and work level that they find. So, of course, location are unit institution that useful pinch thousands of labor and millions of customers, too this positioning commercially, location is besides erstwhile you look astatine this. So, this has been a large interest successful nan institution and nan numbers person been proving pinch this consistently.

So, now I'll walk nan level to Danny to talk astir capitalized interest.

Daniela Sabbag

Okay. Hi, Marcella. To reply your mobility here, a spot of what we've been discussing connected this topic. So, nan first item is that nan capitalization, arsenic Belmiro mentioned, follows nan accounting guidelines and this is not a caller believe successful nan company. We ever person been disclosing our CapEx and we ever return a look astatine nan capitalized liking wherever -- erstwhile nan companies -- erstwhile nan shop is nether construction, you person nan capitalization. But this is, of course, thing that's much important owed to nan volumes of stores this year, and we had a simplification successful this statement that was astir 100 million, that's successful nan explanatory notes, truthful you tin see.

So, of course, this follows nan schedule for shop openings. We concentrated a small much connected nan extremity of nan period. So, we person a reasonable amount. But it should trim a lot. As this takes place, it's not thing a caller believe for us. It's an accounting line we follow. So, it's wrong our champion practices.

Marcella Recchia

So, if I tin person a speedy follow-up conscionable astir this -- nan taxation line. So, we've seen immoderate volatility that's very important successful this line, and we received a spot of nan -- we mislaid a spot of nan reference of what this effective taxation statement would beryllium aft immoderate of nan ICMS exemptions you started to see arsenic a benefit. Is location immoderate visibility connected what we tin return connected aliases expect arsenic thing recurrent from this twelvemonth onwards astatine a more-adjusted basis?

Daniela Sabbag

So, conscionable to information it up a bit, we had astir BRL70 cardinal pinch an effective taxation complaint of astir 8.6%. And successful nan erstwhile quarter, we had published astir BRL60 million. So, we tin springiness you immoderate much specifications to beryllium capable to thief equilibrium this out. But there's ever going to beryllium immoderate benignant of a variety pinch regards to this. And this is connected to nan ICMS. So, it's really going to dangle connected nan income operation for nan different states and exempt categories. And so, we ever going to person to clasp connected to that, depending connected nan measurement successful nan region it's successful and that makes you sell. But we tin equilibrium this retired and deliberation of a measurement to pass this to springiness you immoderate amended guidance. And this variety -- this is ever going to person immoderate benignant of a variation, not a fixed number. So, unfortunately, successful Brazil, you person immoderate taxation changes and that's what astir happen.

So anyways, erstwhile it comes to this effect, you're not astatine nan effective income taxation rate. But erstwhile you look astatine this, though location are immoderate variations, location could beryllium immoderate different monetization, immoderate different creditor, which is not needfully taxable. But for projection effects, you could usage nan mean successful nan past 3 aliases 4 quarters and it's going to beryllium a beautiful bully average. So, if we don't deliberation it's a bully -- well, this is nan mean we've been moving connected internally. But, of course, you've seen that location person been immoderate changes and decisions, 1 large determination that was disclosed does not really impact america because we had nary losses successful this regard. But erstwhile it comes from a taxation perspective, this is going to beryllium a twelvemonth pinch awesome changes. There are galore different changes from taxation betterment perspective, summation of nan taxation loads. And so, taxes and fiscal issues are ever a situation successful Brazil.

Marcella Recchia

Okay, excellent, guys. Thanks truthful overmuch for nan answers.

Operator

Moving connected nan adjacent mobility is from Vinicius Strano, nan waste broadside expert from UBS. Vinicius, we will unfastened up your mic, truthful you whitethorn proceed. You whitethorn proceed please, Vinicius.

Vinicius Strano

Hi, bully morning, everyone, and convey you for taking my question. Could you talk astir really your capacity was successful nan B2B transmission and B2C channels erstwhile you deliberation astir volumes? And what you're looking astatine and expecting erstwhile it comes to nan operation for these 2 segments successful 2023?

And would you besides beryllium capable to talk astir nan converted stores? So, are you looking astatine immoderate alteration successful nan B2B operation aliases B2C mix? And do you ideate that whitethorn beryllium -- well, could you springiness america an thought connected nan floor plan of nan nationalist you've noticed successful nan converted stores? Are these consumers pinch higher income?

And present is simply a small spot much of a circumstantial question, could you talk astir what you've seen erstwhile it comes to nan improvement successful business costs here? And moreover a spot much successful statement pinch nan inflation, erstwhile it comes to nan costs for construction, if you could person a speedy chat connected nan CapEx for openings and conversions and really this has evolved? Thanks.

Belmiro de Gomes

Thank you, Vinicius, for that question. There is simply a displacement successful nan customer operation and that's already expected. And truthful that's not that related because it's a batch more, of course, related to nan regions that they are in. This already happens erstwhile you person nan integrated shop openings. And initially moreover erstwhile it's a curve wherever you person nan basal timing for caller shop openings which is -- which varies, but mostly what we should spot successful this transmission is simply a small much stock from nan last consumers. If you look astatine really these are moving along, you tin spot that this complaint has been increasing. And wrong nan B2B customers, it's beautiful stable. While we spot immoderate changes -- and moreover nan distribution pinch nan existent industry.

And so, we would announcement pinch nan increases successful logistical costs of nan categories that these B2B customers are buying pinch and they've tried to proviso successful a rate and transportation store. But moreover erstwhile we look astatine nan level of density successful these stores, we do expect that there'll beryllium a bigger beingness of extremity customers aliases B2C customers. Sometimes it's difficult to measurement this number because you person successful immoderate cases immoderate B2Bs that besides person a precocious level of non-formality aliases non-identification. But successful these stores, you usually person astir 70%, 75% consumers and astir 25% nan B2B customers are public. But you could person an correction separator astir 5 percent points considering that it's besides very communal for immoderate mini companies, which we sometimes telephone utilizers and sometimes they waste cloth, but they besides travel and bargain for illustration cleanable supplies aliases different items that they are usage successful their cloth shop and they besides bargain for their ain house. So, usually it's a large attraction besides connected mini companies, entrepreneurs sloppy of their [commerce that's] (ph) ace circumstantial for sector.

So, erstwhile we summation nan costs of construction, nan ostentation was rather perverse, not only successful nan nutrient sector, but this has accrued costs particularly for nan caller stores. So now connected integrated store, you person a large variety depending connected nan region you're building in, nan area of nan shop and level of nan foundation, but an integrated shop could costs BRL80 cardinal aliases moreover much than this depending connected nan level of nan instauration you're going to usage for nan store. So, of course, location person been much investments successful -- and immoderate improvement successful these stores, which besides impacted our costs pinch conversions. And we had estimated first costs astatine a comparable guidelines from an integrated shop of astir BRL45 million, and this number has gone over. And, of course, it depends connected nan building activity and moreover considering nan size of these units that were converted.

So, we person stores that person complete 10,000 quadrate meters. And location was besides a interest connected our behalf pinch making nan stores really scope caller conditions, right, to debar costs of attraction truthful precocious and debar renewals aliases renovations successful a short play of time. Sometimes you prevention initially, but that's going to origin your OpEx and attraction costs successful nan short play of time. So, if you had nan opportunity to get to sojourn nan stores, you'll spot that they really person caller conditions.

Vinicius Strano

Thank you, Belmiro. Perfect.

Operator

So, our adjacent mobility is from Vinicius Pretto, sell-side expert astatine Bank of America. Vinicius, we will alteration your mic, truthful that you whitethorn proceed.

Vinicius Pretto

Good morning, everyone, acknowledgment for taking nan question, and congrats connected nan results. We wanted to cognize if you guys had seen immoderate lessons learned pinch nan different initiatives pinch services and assortment. And if it is adapted, led to immoderate benignant of changes pinch nan caller shop conversions?

Belmiro de Gomes

Yes, location are immoderate lessons learned. Of course, these are acquired not only successful nan stores, but besides successful nan integrated description scheme we had. So, immoderate of these services had immoderate aviator projects that we worked connected that did not continue, and galore of them were continued expanding to nan existing shop park. So, successful nan past year, we opened complete 100 factories. And there's, of course, depending connected nan region, you person a different level of need, but this is portion of this improvement successful nan exemplary to beryllium capable to penetrate different societal levels, of course. And evidently location is shop web pinch nan different locations that gives america a guidelines of knowledge and lessons and it's very significant. So, erstwhile we look astatine improvements and different points that we besides deliberation we person room for erstwhile you look astatine a user pinch higher income level, much readiness arsenic good to person a spot much disbursal successful nan assemblage arsenic agelong arsenic we tin connection an capable proposal, of course, keeping nan confidentiality of each business model. But yes, a tons of instruction learned.

Operator

All right. So, nan adjacent mobility is from Ruben Couto, sell-side expert from Santander. Ruben, we will alteration your audio, truthful you whitethorn proceed.

Ruben Couto

Good morning, everyone. How's it going? Let maine talk astir nan increment and productivity astir BRL4,500 to BRL4,700 now and nan extremity of nan twelvemonth pinch conversions. And I wanted to understand astir this number? Is it exclusively successful nan authorities of Sao Paulo, successful nan metropolitan region of Sao Paulo? I thought this was really absorbing considering nan level of maturity of nan precocious opened stores and converted stores.

And also, location is simply a interest that immoderate group had astir cannibalization. When we look astatine this cannibalization topic, really has nan level been successful nan converted stores that are adjacent to those that already existed, wherever location was already immoderate benignant of installed store? Has location been immoderate accommodation aliases is this successful statement pinch what was expected?

Belmiro de Gomes

Well, getting backmost to cannibalization, yes, that exists. There's nary measurement out. We're successful regions wherever we were already coming and different players were already present, but we judge that astir December -- and from nan full base. So, it's earthy that yet what happens successful nan large cities for illustration successful Sao Paulo, we person immoderate stores pinch a batch of operational pressures. And so, sometime we didn't person conditions to work nan customers. There is simply a large queue connected nan outside, truthful nan level of services arsenic good that was provided. But sometimes you request to shop successful that region, and it's successful statement pinch what we expected. And so, nan marketplace possibly expect a small much of impact. So possibly it would beryllium astir 12.5 if we didn't person stores wrong regions that were that close.

So, this -- what happens is that B2B is sometimes quicker than B2C because businesses person to spell far. There, arsenic you know, person a different class products. And so, if you unfastened up a shop that's 100 kilometers away, evidently they are going to commencement buying from there. But it's earthy that erstwhile you person an description and particularly erstwhile you person to move connected to akin exemplary pinch little overlaps and to debar level of cannibalization and immoderate stores that were comparatively close. So, nan income per quadrate meter, that Wlamir highlighted, considers each of Brazil.

And then, you person a variety that's very important erstwhile it comes to nan nationalist territory. So then, erstwhile you look astatine nan acquisition power, sometimes it's not only because you person a smaller measurement and nan amount aliases magnitude of products sold, but sometimes it's conscionable nan mean price. So, it's normal that nan organization has much acquisition powerfulness and sometimes it moreover engages a akin amount. But sometimes it's a merchandise pinch little added value, but this is an mean for Brazil. And I dream that answers your question.

Ruben Couto

Yes. No, that's clear.

Operator

So, nan adjacent mobility is from [Nicolas Larrain] (ph), nan sell-side analyst. Nicolas, we will alteration your audio, truthful you whitethorn proceed. You whitethorn proceed, please.

Unidentified Analyst

Okay. Good morning, everyone. Thanks for taking my question. Belmiro, I conscionable wanted to get backmost to nan integrated description you mentioned. And really galore stores -- for nan shop openings person you already hired for 2023 and '24? And also, really are you looking astatine nan script from an manufacture perspective? Do you deliberation you person room to accelerate nan M&As erstwhile nan equilibrium expanse is already small deleveraged? Thanks.

Belmiro de Gomes

Well, thanks, Nicolas. M&A is not what connected our strategy today. Our strategy is to really look astatine nan integrated stores that were already successful nan onshore slope for nan company. So, these are projects that are practically anterior aliases anterior to nan acquisition of nan Extra stores. And what happened was a bigger selectivity of these projects to set nan costs of building successful this caller reality without starring to effect successful nan -- and M&A is not our target. Our target is to decorativeness nan task and to deleverage successful nan company.

Of course, this does not mean that it's a wholly closed-door. There will ever be, arsenic I mentioned, benignant of connected track. And arsenic soon arsenic we person nan deleveraging aliases we tin do this, it could beryllium that it could happen. But it's not our main strategy astatine this moment. But I do judge that possibly for 2024 aliases '25, it could beryllium imaginable for america to beryllium a small much progressive successful nan sense, but this is really connected to nan company's leverage arsenic well.

Unidentified Analyst

Very clear. Thanks, Belmiro.

Operator

Moving on. The adjacent mobility is from Irma, a waste broadside expert astatine Goldman Sachs. Irma, we will alteration your audio. You tin proceed. Thanks.

Irma Sgarz

Good morning, acknowledgment for taking my question. I person 2 questions, very fast. The first is, if you could springiness america an overview connected nan level of CapEx for 2023? And successful statement pinch this, could you besides punctual america astir nan schedule for payments that you still person for nan Extra stores passim '23 particularly successful nan opening of '24? I deliberation it ends almost successful nan extremity of 2023.

And nan past mobility related to this is if you could thief america understand a small much connected nan expectations for rate travel for '23? Because we -- I saw you've already reached a leverage of 2.2 versus nan extremity of nan year. And so, now you besides highlighted nan nonsubjective of reaching adjacent to nan 2 times and -- astatine astir 2 times till nan extremity of nan year. So, it seems possibly a small timid initially. Obviously, I understand you possibly person immoderate CapEx aspects for 2023 and payments that request to beryllium done. You person higher interest. But I conscionable wanted to understand a spot of your mindset erstwhile it comes to rate procreation for this year. Thank you.

Belmiro de Gomes

All right. Danny will talk astir nan payments now from GPA, a spot of finance CapEx. We're finishing nan numbers and we should beryllium highlighting this successful our yearly report. We person an elevation successful nan CapEx arsenic good owed to nan integrated stores -- astir 20 integrated stores. And they person a higher level of CapEx. You besides person immoderate revitalization of nan existing shop web and nan services and stores that were not implemented yet. And portion of this since nan openings successful '22 happened really adjacent to nan extremity of nan year, 12 successful November, 9 successful October, 12 successful December. So, it's rather earthy that you person a important carryover successful nan CapEx from 2022 that's going to beryllium paying retired successful '23.

So that's why you'll spot nan leverage curve will travel a highest now compared to what we saw successful nan 4th quarter, because 4th fourth is besides benefited by nan seasonality of nan products successful nan extremity of nan year. And people by pinch a word that's small higher, truthful you'll spot successful nan first and 2nd 4th that it goes up a spot and past successful nan 3rd and 4th quarters, it drops. So, basically, we still person room to beryllium successful a little indebtedness level, but still having immoderate carryover costs and uncertainties, whitethorn beryllium possibilities and opportunities moreover person an further description successful nan magnitude of stores. So that's why we're being a small much blimpish to person this level of indebtedness that we expect to onshore by nan extremity of 2023 and, of course, having a costs of debt. There is simply a applicable portion of nan GPA that's going to beryllium paid now successful 2023.

Daniela Sabbag

Yes. So, Irma, truthful nan point is astir nan payments, we person fundamentally successful nan first semester BRL1.2 billion, which was a important portion successful March and different successful June, which adds up to BRL1.2 billion. And past successful nan 2nd semester, arsenic Belmiro mentioned, we person nan carryover from past twelvemonth pinch nan payments of immoderate delays successful definite stores. And past we're going to beryllium paying this successful nan 2nd semester. So, you tin see astir BRL1.2 cardinal successful nan first semester and BRL1.2 cardinal successful nan 2nd semester. So, this is beautiful overmuch nan payments travel that we person up ahead, and this explains nan leverage that Belmiro mentioned arsenic well.

Irma Sgarz

So, would beryllium nan payments conscionable to GPA, nan BRL1.2 cardinal -- well, nan BRL1.2 cardinal successful nan first semester, BRL1.2 cardinal successful nan 2nd semester and you still person a last costs successful 2024?

Daniela Sabbag

Exactly. So, we person BRL700 cardinal successful 2024.

Irma Sgarz

And too this, you still person nan CapEx for organics stores, right?

Daniela Sabbag

Yes, exactly.

Operator

So, now our adjacent mobility is successful English and it came from Andrew Ruben, nan sell-side expert from Morgan Stanley. Andrew, we will alteration your audio, truthful that you tin taxable your question. You tin proceed, Andrew.

Andrew Ruben

All right. Thank you. I conscionable person a speedy follow-up. Thinking astir nan non-food categories wrong nan converted stores, really nan income has been trending versus your expectations? And do you person immoderate updated thoughts astir possibly adding nan non-food assortment wrong immoderate of nan halfway stores? Thank you.

Belmiro de Gomes

Yes. The stores, not needfully since nan truth that location are converted stores wherever we person nan location stores pinch higher income, past you person a bigger stock of non-food items. It's still very timid successful our sector. It's different than what happens successful different countries wherever rate and transportation already -- for illustration successful nan US, for example, pinch Costco, right, wherever you person a existent precocious stock connected these benignant of categories of products, but it's besides connected to our -- to nan level of American income.

But nan opportunities present really are performing nan ramp up successful immoderate categories that we predominantly activity with, though we had inclusion of immoderate items that are non-food. And immoderate of nan biggest inclusions successful assortment, we're much considering nan broadness of nan brands and categories. But we judge location is an opportunity passim nan year. But past this maturity strategy, it is imaginable that we will person immoderate trial and immoderate tests pinch really to connection debased prices pinch immoderate non-food items arsenic well, particularly for higher income consumers, which is wherever we really judge there's opportunities successful these stores. But it's a secondary attraction of what we're going to beryllium pursuing now connected this path.

Andrew Ruben

Thank you.

Operator

The Q&A convention is officially ended. And now we will walk nan level to nan institution to their last remarks.

Belmiro de Gomes

Well, convey you each truthful overmuch erstwhile again for participating.

As I mentioned, Assai has been pursuing this way for growth. And successful 2022, we person an important measurement towards nan magnitude of stores, nan magnitude of group we're servicing successful 2023. And we are still successful this finance phase, right, increasing and generating much jobs and our anticipation for '23, of course, has challenges evidently conscionable for illustration each year, but I deliberation our team, our governmental scenario, nan spot of our marque and each of these factors springiness america a batch of reliance and assurance that nan institution will move towards delivering results consistently sloppy of adversities that we sometimes person erstwhile it comes to nan market. So, we're beautiful utilized to handling this. And whoever has been keeping up pinch nan way grounds of nan company, you'll spot nan levels of stableness successful our numbers that we tin set successful our business model, and location is simply a beautiful bully expectations for 2023.

Once again, I conscionable want to convey each of nan members, Danny, Wlamir, Anderson, Gabi, for their information successful this net call. Once again, I want to convey our squad for their work. And I want to item that for 2023, we dream you will beryllium pinch america successful this process for maturation and guaranteeing these results. Thank you truthful much.

Operator

The net telephone for nan 4th fourth of 2022 astatine Assai is officially ended. The Investor Relations section is disposable to reply immoderate early questions you whitethorn have. Thank you truthful overmuch to each participants and person an fantabulous day.