Financial Data and Key Metrics Changes - The second quarter results reflect a 3.2% decline in same-store fuel volumes, with July volumes rebounding to 100% of prior year levels [6][14] - Retail fuel margins improved by 50 basis points in 2024, with an 80 basis point year-to-date improvement and an additional 13 basis points from lower credit card fees [11][12] - The effective tax rate for the first half was 22%, with expectations for the second half to be within the guided range of 24% to 26% [17][18] Business Line Data and Key Metrics Changes - Non-combustible nicotine categories are growing at a rate that offsets the decline in cigarette margins, which represent only 30% of total nicotine margin contribution [8] - Merchandise contribution increased by 8.9% for the quarter, excluding cigarettes and lottery, driven by strength in candy and packaged beverages [10][15] - Average per store month food and beverage sales at QuickChek have been positive for three consecutive quarters, indicating strong traffic [9] Market Data and Key Metrics Changes - Fuel prices remain range-bound despite geopolitical events, contributing to a lower price and less volatile environment [6] - The company outpaced OPUS volumes in each of its markets for the full quarter, despite a deceleration in June [33] Company Strategy and Development Direction - The company is focused on maintaining store profitability through operational cost improvements and a robust new store pipeline, with plans to deliver 50 new stores over the next twelve months [12][19] - The capital allocation strategy remains a fifty-fifty approach, balancing growth investments and shareholder returns [90][91] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second half of the year, particularly regarding nicotine contributions and the impact of FDA crackdowns on illicit products [8][63] - The company is well-positioned to weather lower demand cycles while maintaining a focus on long-term growth and operational efficiencies [49][51] Other Important Information - The company repurchased 471,000 shares in the second quarter, with year-to-date repurchases nearing 900,000 shares [20] - The new store construction pipeline is robust, with over 45 new stores in construction for Q3, indicating strong future growth potential [19] Q&A Session Summary Question: Trends in gallons and market share - Management noted that trends worsened partly due to a different same-store base and that margins improved despite lower volumes [31][32] Question: Guidance on EBITDA - Management reiterated that while they do not provide EBITDA guidance, operational efficiencies are expected to offset merchandise pressures [34][36] Question: Store build confidence - Management highlighted that bottlenecks have been addressed, leading to confidence in meeting store build targets [40][41] Question: Demand environment and cost flexibility - Management discussed the importance of consumer price sensitivity and the ability to optimize costs in a lower demand environment [45][48] Question: Merchandise contribution growth - Management expressed confidence in achieving guidance due to strong performance in non-cigarette categories and initiatives to drive customer engagement [55][59] Question: Share repurchases and capital allocation - Management clarified that leverage is balanced between growth and shareholder returns, maintaining a focus on their fifty-fifty capital allocation strategy [89][91] Question: Competitive landscape and fuel volume trends - Management indicated no significant differences in customer behavior between Walmart and non-Walmart locations, with competitive pressures being consistent across markets [96][97]

Financial Data and Key Metrics Changes - The company reported a 19% year-over-year growth in revenues and a 2% quarter-over-quarter increase, despite typical seasonality in Q1 [11] - Adjusted gross profit also grew by 19% year-over-year but decreased by 3% sequentially, primarily due to lower quarter-over-quarter TPV and higher service costs [11] - Adjusted net income increased by 23% year-over-year but decreased by 17% quarter-over-quarter, attributed to lower adjusted gross profit and higher investments in distribution channels [11][12] - Adjusted basic EPS was BRL1.97 per share, reflecting a 36% year-over-year increase but a 13% sequential decrease [12] - The company repurchased BRL843 million worth of shares during the quarter, contributing to a distribution yield of 12% over the past twelve months [8][12] Business Line Data and Key Metrics Changes - The Financial Services segment saw revenues grow by 20% year-over-year, driven by repricing initiatives, while adjusted EBT for this segment grew by 21% [18] - The Software segment's revenues increased by 11% year-over-year, mainly due to higher recurring revenues and an increase in the active client base [19] - The MSNB payments active client base grew by 17% year-over-year, reaching 4.3 million clients, with transaction volumes for MSNB cards growing by 10% and PIX volumes by 95% [12][13] Market Data and Key Metrics Changes - Total client deposits reached BRL8.3 billion, a 30% year-over-year increase but a 5% sequential decrease due to seasonality [14] - The company’s total credit portfolio reached BRL1.4 billion, with a focus on working capital offerings to SMB clients [17] - The coverage ratio for provisions was 256%, indicating a stabilization in risk management practices [17] Company Strategy and Development Direction - The company is focused on profitability and has implemented a disciplined capital allocation strategy, including a new share repurchase program of up to BRL2 billion [9][8] - The strategy includes a shift towards time deposits to optimize funding costs and improve capital structure [15][16] - The company aims to enhance its service offerings and distribution capabilities to maintain competitive advantages in the market [54] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macroeconomic environment with rising interest rates but expressed confidence in the company's ability to navigate these challenges [10] - The company expects some deceleration in TPV growth due to repricing efforts and macroeconomic conditions, but overall trends align with long-term guidance [32] - Management emphasized the importance of maintaining a rational competitive environment and focusing on client-centric solutions [5][6] Other Important Information - The company has begun migrating retail deposits to time deposits as part of its cash sweep strategy, which is expected to yield benefits in future quarters [91] - The effective tax rate for the quarter was 19.7%, down from 20.6% in the previous year, reflecting improved tax management [24] Q&A Session Summary Question: Outlook for TPV growth - Management indicated that TPV growth is expected to decelerate somewhat due to higher interest rates and repricing efforts, but overall trends remain in line with long-term guidance [32] Question: Negotiations regarding LINX - Management confirmed ongoing negotiations with Totus regarding LINX, but specific details on valuation and timing could not be disclosed [35] Question: Impact of competition from Mercado Pago and Fiserv - Management noted that while competition is monitored closely, they have not seen significant impacts on their core MSMB segment from new entrants [60][66] Question: Pricing strategy in light of changing yield curves - Management stated that they do not plan to adjust pricing policies despite recent changes in the yield curve, as the majority of repricing has already been implemented [46] Question: Cash conversion and net cash position - Management explained that the decline in net cash was due to seasonal effects and one-off expenses, with expectations for improved cash generation in future quarters [78][81]

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for Q4 reached $103 million, with a total of $444 million for 2024, marking an 8% year-over-year increase [4][9] - Gross sales totaled $368 million in Q4, with annual revenues reaching almost $1.5 billion, a 2% increase year-over-year [9] - Net cash from operations for 2024 was $161 million, allowing for a minimum distribution of $64 million in 2025 [7][25] Business Line Data and Key Metrics Changes - Record results were achieved in the Rice and Dairy segments, while the Sugar, Ethanol, and Energy business saw operational records despite challenges [4][10] - Total crushing volume in the Sugar, Ethanol, and Energy business reached 12.8 million tonnes in 2024, a new record, although down 12% year-over-year for the quarter [11][12] - Adjusted EBITDA for the Farming business totaled $4 million in Q4 and $103 million for the year, consistent with the previous year [21][24] Market Data and Key Metrics Changes - The average selling price for sugar was $0.226 per pound, down from $0.232 per pound in 2023, reflecting lower global sugar prices [13] - Ethanol prices have been recovering due to strong domestic consumption, although still below the previous year due to the depreciation of the Brazilian Real [14][56] - Carbon credits generated over 600,000 SEVAILOS at an average price of $14 per SEVAILO, totaling $9 million in net sales [15] Company Strategy and Development Direction - The company is focusing on maximizing sugar production due to its attractive premium over ethanol, with a strategy to gradually increase hedges if prices rise above $0.19 per pound [33] - Investments are being made in expanding sugarcane plantations and developing biomethane production in Brazil, alongside enhancing rice and dairy operations in Argentina and Uruguay [7][26] - The company is also committed to ESG initiatives, including training programs for women in agribusiness and leadership development for employees [7] Management's Comments on Operating Environment and Future Outlook - Management noted that the sugar market is expected to see price increases due to disappointing crops in the Northern Hemisphere and a smaller Brazilian crop anticipated for the upcoming season [32][33] - The company expects a slight increase in annual crushing figures for 2025, assuming normal weather conditions, while acknowledging the challenges posed by dry weather in 2024 [18][19] - Management emphasized the importance of weather conditions for crop yields and the potential benefits from ongoing trade dynamics affecting South American agriculture [35] Other Important Information - The company distributed $102 million in 2024, exceeding its distribution policy by $32 million, with a 9.4% distribution yield [24] - The unsolicited proposal from TETA Investments to acquire a majority stake in the company is under evaluation, with discussions ongoing but no assurance of a definitive agreement [27][28] Q&A Session Summary Question: What are the main triggers for positive price action on sugar? - Management highlighted disappointing crops in the Northern Hemisphere and a smaller Brazilian crop as key factors influencing sugar prices [32][33] Question: How will import tariffs affect the company's operations? - Management noted potential benefits for South American soy and corn production due to tariffs, while also seeing opportunities in rice and dairy markets [35] Question: What is the outlook for sugarcane crushing and potential constraints? - Management indicated that weather conditions are a significant factor, with expectations for improved crushing in the second half of the year [45][46] Question: Can you elaborate on the dynamics of ethanol prices and expected parity? - Management expects ethanol prices to recover due to high demand and limited supply, with a potential increase in the blend ratio soon [56][60] Question: What are the expectations for production costs in 2025? - Management anticipates production costs to remain similar in real terms, with a slight decrease in dollar terms due to various cost components [64][66] Question: How are expansion costs impacting the company's outlook? - Management noted that strategic leasing of high-quality farms is expected to lower planting costs in the future [78]