Second quarter of 2026. We will have with us the CEO, Paulo Nassar, and the CFO and Director of Investor Relations, Mr. Rafael Siqueira. This call is being recorded and can be accessed in the company's investor relations website. The presentation can also be downloaded. After the presentation of the results, we will start a Q&A session. If you wish to ask a question, please click on the Q&A icon on the bottom of your screen and make sure you include your name and company. When you hear your name, you will receive a request to turn on your mic. Please activate your mic to ask your question. You can also send a written question through the same icon, the Q&A icon. Just make sure you include your name and company. We also have simultaneous translation into English. Just click on the icon called Interpretation. For those following this call in English, you can also mute original audio by selecting the option with that same name. The call will be in Portuguese, and the English version of the deck can be downloaded in the company's website. I would like to highlight that the information from this call and possible statements made during the call connected to business perspectives, projections, operational and financial goals from the Petz Cobasi group are beliefs and premises from the company's management, as well as information currently available. Now, I would like to hand the floor to the CEO, Mr. Paulo Nassar. Thank you. Good morning, everyone. Welcome to our earnings call for the second quarter of 2026. It is a pleasure to be here with all of you to share our good results from the quarter. We are very proud and absolutely motivated with the results from this second quarter. First and foremost, I would like to express my gratitude to the whole Petz Cobasi team for their commitment and hard work in the first six months of integration. We continue to integrate our teams with consistency and balance, valuing talents and best practices, which have added a lot to the group. One more thing that I would like to highlight, this is a completely different merger from many others in Brazilian retail for very clear reasons. First, we have full alignment between our board members, and we also receive great support from our board. The management of the company is being supported, and that support has been essential for our execution. Sergio, João, and Ricardo, our founding partners and our advisory members, they have been offering their full support and presenting very healthy provocations. A lot of the success of a merger is the consequence of the alignment between partners and board members, both at the boardroom and in the committees. The support we received from the board has resulted in great energy throughout the company, and the execution teams have been acting in partnership and with a lot of engagement. This has been extremely important for the positive and healthy atmosphere in the group. Of course, that has an impact on the final results. We all know about the several merger cases that only destroyed values. That is why we are absolutely focused in making sure that is not going to happen here. I am absolutely certain that the Petz Cobasi group is already building the best business case for mergers in Brazilian retail, and we are just at the beginning. This group was founded only six months ago, but we already see in the results of the second quarter that will be shared shortly, we see the beginning of a very successful trajectory. Now, let's go to the presentation. Talking about the big numbers from the second quarter, our top line of gross revenue reached BRL 2.1 billion, which represents a 7.8% growth year-over-year, which led to an operational result that was quite significant with a reduction of expenses and a significant gain in EBITDA. It is also important to highlight that this is a percentage of growth that is real in the top line. If we consider the very low internal inflation of about 1.4% in the past 12 months, we can also state that the growth in revenue is mostly due to our growth in volume. The quarter ended with an adjusted EBITDA margin of 10.6% and a very strong cash generation of BRL 213 million. Looking at this growth in the quarter, our total revenue grew 8.6% in Cobasi, 7.2% in Petz. Our physical net channel grew 7.4%. One highlight is the increase in traffic in our stores and also the strong engagement from our store staff and a positive experience offered in our stores. In our digital channel, we saw a 9.2% growth, mostly due to our unique omnichannel model, which is completely different from everything we see in the market, with a great service level highlighting our very efficient logistics operation. Next, please. On this slide, the big highlight I would like to bring is the strong generation of cash, around BRL 213 million in the second quarter. This strong cash generation is extremely important for the sustainability of the group in the long term. The strong conversion from EBITDA into cash is mostly due to our discipline in managing working capital, managing stock levels. We have reduced stock days in both brands in the DC and stores, and also a better position in payment terms for suppliers. We are also controlling our expenses with a 360 view on our operational efficiency. Cash generation at this level gave us freedom and put us in a very comfortable position to execute our long-term strategy. More importantly than that, our net cash position, which is pretty much a unique position in current times when compared to other retail companies, most of them highly leveraged in a very difficult macroeconomic scenario in Brazil with very high interest rates. I would like to highlight that we are an outlier in that sense in Brazilian retail. Next slide. Focusing on the first half of 2026, the first and the second quarters together. Both of them ended above the budget with a very positive result in the first half of the year. The consolidated results confirm how robust our business models are, even before of a more relevant synergy capture, which indicates a potential to improve profitability in the second half of the year and coming years. In the first half of the year, our gross revenue was BRL 4.1 billion with 8.7% growth year-over-year, with a significant reduction of operational expenses of around 1 percentage point. A continuous expansion of our gross margin, achieving 47.1% in the first half of the year. Our efficiency in reducing expenses and our operational discipline has driven our increase in our adjusted EBITDA margin, adding to BRL 353 million in the first half of the year, which is a 22% growth in our adjusted EBITDA when compared to the first half of last year, 2025. The first half of the year also ended with an adjusted EBITDA margin of 10.2%, reaching a double-digit level, the best EBITDA margin from the group, which is a direct consequence of our omnichannel model and our focus on austerity, operational discipline, prioritizing expense reductions, and increase in productivity. Next slide. Lastly, I just would like to say a few words about our integration process. We continue to make great progress at all fronts at the planned rhythm with a lot of engagement, which is going to unlock significant synergies starting in the second half of the year. When it comes to commercial negotiations, we have already concluded, sorry, part of most of the supplier unification process. We have already renegotiated our indirect expenses. We are also adopting best practices between brands which are being progressively implemented. For example, for our private labels, we have accelerated the integration of private labels between Petz and Cobasi. I would like to highlight the Petix product, our manufacturing plant that now produces MyHug, the hygiene pads originally from Cobasi. We also have now Super Secão products being sold at Cobasi stores. So hygiene pads, private label products represent 80% of sales in Cobasi and 88% at Petz. This is data from June 2026. At the same time, we are advancing in the cross-sell of all our private labels, Petz labels at Cobasi stores and vice versa, such as collars from Zee.Dog and Zee.Cat, premium dry food from Joy, and the snacks from Origem Natural, and supplements for cats and dogs, Flicks for accessories, pet food from selections, and the Zee.Dog Kitchen products, among many other brands that we are slowly implementing at both brands. In conclusion, I just would like to say that all these actions that we have been implementing have been able to change the level of this group in only seven months. We are very happy with these initial results after the merge, and we'll keep working hard on this journey. We still have a long way to go. Now I would like to hand the floor to Rafael Siqueira, our CFO and Investor Relations Director. Rafael? Thank you, Paulo, and good morning, everyone. As mentioned by Paulo before, it's a great pleasure for the group to report the results from the second quarter. We see a very successful integration process with synergies still not fully captured a consistent growth even though we had a comparison basis for the second quarter of 2025 that was stronger, both in sales and profitability. But still, we were able to expand both indicators in a significant and balanced way. We're going to see this balance between brands and channels. I think the biggest highlight is our cash generation and our working capital control. We see a significant expansion in our net cash position in the company. All the figures we will be presenting do not incorporate a full synergy gain, which are expected to take place only starting in the second half of the year. I would like to start by highlighting the growth from both brands and same-store sales, with a significant growth around 7.1% in the quarter. If we look at the first half of 2026, this reaches 7.9%, which is growth in comparison to the same period of 2025. We see the two brands performing with crude growth levels. As Paulo mentioned, this is real growth, an increase in sales volumes. We have been observing in this segment a price point that is sort of moving sideways. In our operations, we are able to add more volume. Our store fleet that we like to show the evolution of our EBITDA for all of the different years of opening, and you can see that as stores mature, profitability also grows. We see stores opened in 2021 and until 2020 with an EBITDA for all close to 20%. We still have a group of stores to mature. When we look at that information in a sequential way for the past 12 months, the profitability from these stores grew 1.12 percentage points, which of course is a consequence of our efforts to improve profitability, both in margins and expenses. Next slide, please. Our gross revenue for the quarter achieved BRL 2.1 billion, a 7.8% growth. In the semester, an 8.7% growth reaching BRL 4.1 billion. Here we have some highlights, both in our physical channel and digital channel, with a balanced growth between them. Perhaps the biggest highlight is our service business unit growing at 29% rates. Here we see something that makes us very happy. Our hospitals are also growing in sales, growing in volume, and with an increase in the level of complexity in the procedures being performed, which proves that we are meeting the demands from our customers. Seres Saúde, the group's health insurance plan, continues to grow. We are present in three states, 31 different municipalities, and we are seeing a great deal of interaction between our health plan users and our network of hospitals, health clinics, and grooming services. The element that has been responsible for this growth in the group is our program, our loyalty program called Clubz, which is offered in a Petz brand. We see a very strong correlation between Clubz members and the services that the company provides. We see that these customers have a 30% uplift once they start to shop in this environment. For the Cobasi brand, we also have the Amigo Cobasi loyalty program, which is quite an extensive program, affecting almost 90% of the company's consumers. That makes us very confident that the loyalty levers are being not only well built, but will also generate great results in the future with the integration of both models. Next one, please. This slide tells us a story for looking at two quarters, but it doesn't tell us the whole picture. I was looking at our dynamic spreadsheet before, and we have been a combined company since the beginning of 2026. In our spreadsheet, we can go back all the way to 2023. We have achieved the best gross margin and the best level of expenses since 2023, 14 semesters, and the margin didn't grow much in comparison to 2025 because the second quarter was exceptionally good in 2025. But if we look at an yearly basis, meaning the gross profit for the past 12 months versus the previous periods, we already see a very significant expansion of around half percentage point. The same thing holds true for our operational expenses. If you look at 12 months versus the previous 12 months, we see a 0.4 percentage points reduction. That, of course, before all the synergies being captured, meaning that both companies have a strong focus in finding a better balance, austerity, and a better profile in expenses. One important highlight is that we are already seeing the results of part of these synergies in our private label products, both from Petz and Cobasi, with significant growth. If you look at Cobasi in isolation, where the benefit is more obvious because of the Super Secão product line, which is produced by Petix, a company from the group that Petz acquired, this growth is around 60%. We already have 9.5% of sales at the Cobasi stores happening in private label products and at Petz 14.4%. The biggest milestone from the first half of the year was on our commercial front with the renegotiation of commercial policies with our suppliers and the capture of synergies that have been mapped in the first half of the year that will be starting in execution in the third quarter. So looking ahead from the profitability and gross profit perspective, also when it comes to austerity and expenses, we are very optimistic. The group has done its homework, now we are fully prepared to reap the results in the second half of the year. Next slide, please. The conclusion is, of course, the best gross margin and the lowest expenses, which leads to the best EBITDA, 10.6%, an EBITDA that grew 30 basis points year-over-year. If we look at the past six months, this evolution becomes even clearer, above 1 percentage point. If we look at EBITDA for the past 12 months, we have almost 1 percentage point of expansion, reaching BRL 670 million, a 22% growth, which of course makes us very happy. In the following slides, we will be talking about that EBITDA conversion into cash. This is real EBITDA that turns into cash at the end of the day. If you look at the net profit from the group, we have reached BRL 70 million in an adjusted picture for the second quarter. For the first half of the year, BRL 124 million. In a yearly basis, the past 12 months, BRL 264 million, a growth above 30%, which again, only highlights the operational evolution we have seen in the business. Next slide, please. This is a picture showing our investments, which reflect how selective the group has been. Right now in the second quarter, the pace of new store opening is a little bit slower than it was last year, that was planned and expected, where new stores are expected to be open mostly in the second half of the year. We have 10 stores to be opened. Two have already been opened. Here we see a mix of our investments. In 2026, we are moving mostly from stores renovations and migrating to digital, which was also expected. This is an important growth factor for the business, and we are doing many integration efforts on that role as well. If you look at a six-month picture, our CapEx has been BRL 65 million with a 35% reduction versus last year in the same period, which reflects the lower expansion pace and an optimization of the CapEx per store. The consequence of everything I have presented so far is an EBITDA that turns into net cash and a very rationalized investment front. We see our net cash position growing. One of the highlights, as mentioned by Paulo, especially if you think about the whole of Brazilian retail, our net cash achieves BRL 286 million only in the quarter. It grew more than BRL 120 million versus the first quarter of the year, 0.4 x the EBITDA. This cash went up despite number of payments that the company needed to perform. Some were operational, others were not. Just to help with the interpretation, we paid dividends in May. We have an earn-out from Casa & Decoração, and we also did the amortization of part of the debentures from the group. On the next slide, the cash generation becomes quite clear. Here I would like to highlight our operational component. If you look at the cash conversion cycle in the group, it dropped almost 14 days. We are 28 days today. If we were running the second quarter of 2026 with the same indicators from suppliers, stock from 2025, the group would have BRL 150 million less in cash position, just to understand how much of an effort we've made. Of course, this is a recurrent process that will continue to be made in the next quarters to capture this type of synergy. In summary, we see a consistent growth with a healthy level and a very strong discipline, both in capital and cash management. We believe that for the remaining of the year, the synergies that have been announced over the first quarter will be captured in the way we have announcing to the market. Thank you for your attention. Thank you. Now, we will begin our Q&A session. If you wish to ask a question, just click on the Q&A icon on the bottom of your screen. Make sure you type your name and company to get on the queue. When you hear your name, you will receive a request to activate your mic. Turn it on and ask your question. You can also send a written question, or you can type it in the Q&A icon. Make sure you include your name and company as well. Our first question comes from Ms. Laryssa Sumer from XP. Ms. Laryssa, go ahead. Good morning. First of all, congratulations on the results. We were very impressed with the consistency in execution and also the progress you have made in the integration process in this quarter. Going back to that, I think it would be nice to hear about two initiatives you mentioned. First, the negotiation process with suppliers. You said most of this process is done, but perhaps if you could give us more details about the process, what were the challenges, and what can we expect in that same front in the future? A second question about portfolio optimization. You started to optimize it. You have already closed some operations. I think it would be nice to understand the rationale behind which stores to close and perhaps learn a little bit more about this pipeline in the future. An update on the remedies applied for the merge. I think that's it, and once again, congratulations on the results. Thank you, Laryssa, for all your questions. When it comes to our supplier renegotiation, it was a big effort to sit down and renegotiate with them, combining volumes from both companies and shedding light to the new volume level we have now. Because of that, the group worked hard in our commercial department to achieve JBPs that would make sense to unlock conditions that are not only better in terms of price list, but as well when it comes to payment terms that were extended, so we could have a more comfortable position when it comes to working capital and expenses and, of course, our stock levels. With that, we can expect to capture this synergy in the second half of the year. I say this because much of what we have today in terms of stock was negotiated in the previous conditions, of course, prior to these renegotiations. These new commercial terms started to be applicable in the end of June, beginning of July. So expect to see a good ramp-up in terms of margins and the impact in billing and delivery of goods to the group. Now, when it comes to our stores, yes, we did a first wave. That was not so relevant. I'm not going to give you a future guidance on store closing plans, but we have planned, yes, to close a couple of stores. On the Cobasi side, we have already closed four stores, mostly due because of real estate properties where the original owners sold the buildings for construction companies here in São Paulo. For example, in São Paulo, a major building is being built in one of our stores used to be. The same thing is true for other stores in the city of São Paulo. There's a Cobasi store in São Paulo in the west part of the city that went through the same process. In the beginning of August, Petz closed a store next to a Carrefour supermarket. These were the first stores we closed. We also closed a store in Brasília. For the second half of the year, we can expect around five to eight stores to be closed. Very much in line with our idea to maximize sales potentials in regions where there could be a potential overlap between brands. Quite clear. Thank you so much. Our next question comes from Ms. Irma Sgarz from Goldman Sachs. Please go ahead. Thank you so much for the opportunity. I would like to hear a little bit more about the impacts of the import taxes that happened in mail that could be potentially be expanded to other categories. We have seen a rise in parcels in June, which is a relevant topic for other retailers. I know that this dynamic is sort of behind for you guys, but I would like to get your take on this topic, and if you believe that in the future, this could become a relevant topic again for the group. I would also like to hear a little bit on your view about the competition landscape with online platforms right now, if anything has changed in that area. Thank you, Irma. I will talk about the import taxes, and then I will hand the floor to Rafael so he can take your second question. When it comes to the import taxes that dropped, we haven't felt any impact that could be considered relevant, especially when it comes to accessories. For us, we haven't seen any substantial, actually not even a minimal change in our sales of accessories. Now, there is an ongoing discussion and a request coming from retailers in Brasília, requesting for this import tax to be enacted again, which would be quite positive. Because when you give an exemption to import tax of products up to $50, this is quite a relevant ticket size in BRL. In other retail areas, this is probably having a very negative impact, especially in apparel and shoes. But luckily in our company, we haven't seen any significant impact. Rafael? Thank you, Irma, for your question. Regarding the competition landscape in the digital channel, it exists. It is intense. We have been noticing a strengthening of our differentiating factors. The group has 520 stores. We are present in 24 states, more than 130 cities. Our digital channel is an extremely important component, representing 40% of the business. But our stores represent 60% of the business, and we see a great deal of integration between our digital channel and stores. 95% of digital sales is shipped from stores, and 75% of these deliveries are done on D+1, whether in the pickup from store mode or when we ship from store. We have been very selective in the way we use this differentiating factor, so we can be more or less aggressive depending on the circumstances and the competitors. We do see in the digital a more complex landscape, one that requires attention. But we would like to reinforce the quality of our assets, the strength of our group to face this competition when we believe it makes sense to do so, but also to enjoy other growth avenues. I have talked about digital and our stores. The biggest growth avenue in the quarter that has been growing significantly over the past few quarters is our service line, which is the main differentiating factor we can have when it comes to these other platforms. Because the services are done in our stores, and we do see a very important cross-sell when customers use our services. When looking ahead and considering the strengths of our group, we believe we are fully prepared to provide our customers with the best value proposition and, at the same time, keep on growing at very healthy levels. Thank you so much. Our next question comes from Mr. Lorenzo Marques from Bradesco BBI. Mr. Lorenzo, please. Good morning, Paulo, Rafael, Marcos, and the team. Thank you so much for the opportunity. We have two questions here. First, I would like to talk more about the same-store sales dynamics, a very healthy position, and the real growth was truly an important highlight. How can we think about the same-store sales levels looking ahead? Where is this marginal growth coming from? Maybe you could share your take on the evolution of your internal inflation rate, thinking about price increases from suppliers. Thank you so much. My second question would be about the tax credits that you acknowledged in the quarter of around BRL 53 million. I would like to understand a little bit more the source of this credit and your expectations considering the magnitude and timing of this credit. That would be extremely helpful. Thank you. Rafael, could you take that one? Of course. Lorenzo, thank you for your question. Our same-store sales indeed has been making us very happy. We see our stores reacting in a very important way in the past few quarters. Practices that Cobasi had that were quite successful and that Petz had that were also quite successful have been transferred to each other with a gamification of actions leading to a great level of engagement from our store staff, and that is leading to higher volumes. Now, looking ahead, we actually had a significant price increase in the second quarter of 2025 in the pet food category, which added that component in the first quarter, mostly due to this price increase. We also see the same basis in the second quarter of the year, and we lose this price increase. Now it is capped based on volume. Our expectation is that on this quarter, we might see some other price increases for some categories, maybe not to the same level as we had in the second quarter of last year. We believe that the volume component will be the main growth driver for the business for now on. Volume is one element, and behind volume, of course, we have all the loyalty actions that are being intensified. As the two brands mature in the integration process, we are going to start seeing these results with more intensity. Now to address your second question. This credit comes from the PIS and COFINS taxes. These are quite consolidated topics in the market, and the volume that we acknowledge is a relatively low one, and we expect to monetize it in the year of 2026. Which is a very traditional topic in retail, and the monetization is going to be quite fast. Quite clear. Thank you, Rafael. Our next question comes from Ms. Isabella Lamas from UBS. Ms. Lamas. Good morning, Paulo, Rafael, and the team. Thank you for the opportunity. I also have two questions. First, starting with your private labels, perhaps you could give us more color on the evolution that you continue to show in penetration, not only at Cobasi, which would be more expected because of the Pet Sprint, but Petz also keeps on growing well, almost 1 point of evolution. Perhaps we'd like to understand what you're thinking about in terms of evolution for the future and the closing of the gap between Petz and Cobasi, and what can we expect for the next quarters. Thinking about the mid to longer term, does it make sense to think about a great deal of evolution? Where do you see this level getting at? Still on that same topic, we have a question about gross margin because this is one of the drivers to evolve your private label strategy. As you mentioned yourselves, you will conclude the renegotiation with suppliers in the second half of the year, and you also mentioned that you are being very rational in terms of pricing and keeping a healthy competition. How can we combine all these factors together? What can we expect in the short term, perhaps in the second half of the year? How much each of these factors are expected to contribute next year? Perhaps a final question about cash. It was a very robust cash generation. It really caught our attention, your mostly working capital, also in the supplier role. I just wanted to understand how much of this has already become a reality. You mentioned that most of the negotiations have been concluded, so do you still have room to grow more? How is that cash evolution expected to be? We know we have the earn-out for Zee.Dog to be paid, but you have a very solid cash position. Just to understand more about the seasonality and perhaps more details. Thank you, Isabella, for your questions. I am going to take the first one on private label. The big gap that we have in terms of the share private label between Petz and Cobasi comes mostly from hygiene pads. Petz, as the controlling company from Petix, they did a wonderful work introducing private labels, especially at the Super Secão line, which is the leading hygiene pad in terms of quality in pet stores. A moment before the deal, Cobasi didn't sell the Petix brand. After the conclusion of the deal, one of the first levers that we used was to do a quick introduction of the Super Secão brand in almost 260 Cobasi stores, and we started to use Petix as a manufacturing plant for our Cobasi private label products, more than 14 SKUs for hygiene pads, which is the MyHug brand. Slowly we accelerated that with consistency, and we are seeing the results of that in the second quarter, mostly. That is why we see this big penetration, especially in hygiene and grooming products. The MyHug products being produced by Petix led to that. This, of course, leads to quite a significant share of private labels, reducing the gap between both labels. We see a great potential of growth of private labels in the future because we are introducing them in several categories we work with. Of course, our dream and our desire is to accelerate this process the most. We see private labels in areas in stores such as Pets at Home in the U.K., so we still have a lot of room to growth. Of course, with a focus on quality products and relevant brands that translate to us a significant delta in margin when compared to similar products, and we are still on this journey. The idea is to make our private label products quite relevant in the group as a whole. We are growing in relevance, and more important than that, our private labels are also growing in pets, mostly due because our store staff engagement. They are making this presentation offering tasting of these products, which are excellent when compared to similar ones with a good price point. When it comes to gross margin, as Rafael said it himself, it is growing and it continue to grow. What we could say about synergies that have already been capturing the second quarter, it is still quite small, about BRL 5 million. We could say that when it comes to COGS, we still haven't started that. There is a significant potential to grow our gross margin that we will start to see in the third quarter and onwards. About cash generation, I will hand it over to Rafael. Thank you, Paulo. Thank you, Isabella, for your question. Our cash, if you look at the track record from both companies, it has been definitely a highlight, especially starting in 2025. Both Petz and Cobasi had done their homework. Last year was a very strong year in cash generation. Both companies looked at the merger, and they understood that they had obligations to pay, the loans for the shareholders to discuss their income tax over the gaining capital. Looking ahead, of course, we have an earn-out taking place in the fourth quarter, but the company is quite certain that the cash generation is consistent. The second quarter was quite strong when it comes to cash generation. When we look at the different components that led to that, most of them are operational and recurrent, meaning expansion of payment terms with suppliers had already happened in the first quarter and will maintain at a similar pace. When it comes to stock levels, this is an adjustment that happened throughout 2025, mostly for Petz. When we look at 2026, both brands are also optimizing stock levels and reducing stock shortages in stores. We see a very positive quarter. Of course, the second half tends to be better than the first one with more sales, with a more positive dynamic for our cash. When we look ahead, with the possibility of changing our leverage in the company, we have a very high debt cost, so we are doing internal exercises to try to understand the best capital structure for the business. We are robust and comfortable to grow when indeed we are fully integrated, capturing all the synergies that have already been mapped. We are looking ahead in a very constructive way when it comes to our cash position. Quite clear. Thank you so much. Our next question comes from Mr. Andrew Ruben from Morgan Stanley. Please go ahead. Hi. Thanks very much for the question. A lot of them have been answered, but maybe one item to dig into, just for the digital business. I am curious, any updates on how either your pricing or profitability compares between the digital and physical channels, and if there is any difference between the Petz and Cobasi operations? Bigger picture, I know the plan is to keep the brands separate, but how are you thinking about the integration of the online from more operating perspective? Be very helpful. Thank you. Thank you, Andrew. The question, he is just repeating your question now in Portuguese. It was about digital pricing policies between both brands, channels, and how we see that profitability in the business. Andrew, first of all, thank you for your question. We spent the first quarter learning about both brands and both companies and the positioning in stores for certain markets, our comparison to the competition in certain categories. We have a very robust pricing department, and for the past six months, they have been doing this work to ensure not perfect alignment, but to ensure we have a strategy that is coherent with our goals in the group. We have been very selective in work with more or fewer SKUs, especially when it comes to the competition against marketplaces. This is a strategy that has been successful. We are also doing some pilot programs in credit policies and assessing the full package, looking at price, cost, and delivery costs. We are looking at our stores to try to understand where there are opportunities to possibly offset more competitive pricing. We are looking at both channels in an integrated fashion and also both brands in an integrated fashion. Of course, we are making differentiations in terms of promotions. For example, this is the month for the Petz anniversary, so we are being more intensive in Petz. The same thing is going to happen in October for Cobasi. There is a constant watching of both channels from both brands to try to rationalize the way they are operated. Now, in terms of profitability, we do see the digital channel from both brands with quite healthy profitability levels and growing year-over-year. We are not feeling the pressure in our results, the fact that we have a biggest share of digital sales, because we are able to find a good balance. In the past few years, we saw the cost of shipping drop quite significantly because we went from a Single CD model, and we started using our 520 stores that offer a much lower shipping cost. We are able to offset several lines and deliver our digital profitability that makes us quite comfortable to fight when it makes sense and to recover margin when the market is healthier. Our next question comes from Mr. Lucas Esteves from Santander. Mr. Esteves, please. Good morning, Paulo, Rafael, and the team. Congratulations on the consistence of execution. I would like to cover two topics. First, on your gross margin and your perspective on synergies versus investments. With the commercial synergies starting to appear, how do you plan to balance that benefit to capture it in margin, or do you plan to reinvest part of this benefit in price to increase your competitiveness and increase sales? If there is a relevant difference in terms of pricing between Petz and Cobasi that you still want to do. On private labels, you highlighted that it is above 12% of sales in the half of the year. What would be an ambition that you have in terms of private label share? What is the margin difference that these products have when compared to other products? I am just trying to understand if this could be a structural lever to improve your margins or not. Thank you, Lucas. Speaking of gross margin and the gain we are designing, mostly, again, due to the renegotiation we are doing with our suppliers. Of course, this is a process that will unlock a potential to grow our margins in the second half of this year. Because we are retailers, part of this margin will be destined to work in price and competitiveness and to fight in this market to grow our share. No one is going to do that or burn margin, burn our price with a focus that is exclusive on increasing our gross sales. We are going to be very careful and selective, just like Rafael explained before. Because again, in our understanding, we shouldn't lower prices for all products. We are going to be very precise selecting products and categories, and of course, thinking about the marketplaces as our main competitors for that movement. When it comes to private labels, we do have a potential to grow share in the group. As I have mentioned previously, today, 12% or maybe 13% of our sales come from, in our total revenue, comes from private labels. This is an important lever that is already being executed. But again, it does take time to see the results, and we plan to go beyond 20%. Our dream is to get 25% of global sales coming from private label products. Why not? Of course, at the end of the day, what that would bring is a significant margin expansion, I would say above 10 percentage points when compared to similar products between categories, of course. So we have labels that generate more loyalty that can only be found at our stores, both Petz and Cobasi. Of course, this can lead to significant additional margin gains, which will only improve how healthy our results are in the bottom line. Thank you, Paulo. Quite clear. Thank you again and good morning. Our next question comes from Nicolas Larrain from JP Morgan. Mr. Larrain, go ahead. Good morning, and thank you for the presentation, and thank you for taking my question. I have still a question about cash. I think it was really well-received by the market, your cash positioning. As you have mentioned before, you can expect to have more relevant synergy capture from now on. So my question is more about capital allocation. What do you envision for the coming years? How do you believe this company should be generating more cash in a moment when the expansion could perhaps grow in pace? How are we going to balance the cash the company generates on one side, integration, and potential expansion on your opening of new stores or perhaps distribution of dividends to shareholders? How do you see this balance in terms of the resources that the company's generating? Rafael, can you take that one? Thank you, Nicolas. This is a good problem to have. We have been discussing about the next avenues for growth in the group. We clearly have a lot of room for opening stores, and the number of stores that will be open in 2026 is not the common number we deliver. Because again, we have to design our expansion strategy until it actually comes true. It takes between 6 months- 12 months. This is the company that has only existed for seven months, but we are holding committee meetings, and for the past two months or three months, we do see an acceleration in our ability to find areas or stores that could add to our marginal revenue. We still have many areas and cities to enter, and we see 2027 as a year to resume our expansion between 20 and 30 stores, thinking about the coming years, and perhaps more or less, depending on the market. That would be an initial use of this initial capital. Of course, our digital business needs to grow. It needs to receive investments to improve usability and to improve platforms and loyalty. That's another important avenue. The third one, and perhaps the main one, is to remember that Petz Cobasi has a service asset park that's quite strong, and it is important to increase the level of integration of our services to the whole business, both physical and digital. That is a possible third avenue of growth that we could highlight and should focus on the coming years. These are all topics that are being discussed by the executives and the board in a way to understand the best capital allocation. But as mentioned before, this is a good company to have, a company with a good cash position that's still generating more cash. We certainly have an opportunity to grow. Thank you, Rafael. If I may ask a follow-up, do you think the board is also discussing a bigger payout, or only after the integration? Well, we see our cash generation, and this is a discussion that has been happening, but it's not the main driver. The main driver is actually finding investments with ROIs above the cost of capital. Of course, they will be looking at the return metrics, but the mindset is not to increase payouts in the short term. Of course, that could be revisited as dynamics change, but for now, the focus is to grow whenever it makes sense for the group. We do see a lot of avenues that make a lot of sense. Quite clear. Thank you and good morning. The Q&A session is now over. Now, I would hand the floor to Mr. Paulo Nassar for his final remarks. Well, in conclusion, I will just give you some context about history and the decision that is about to celebrate 10 years, both for Petz and Cobasi. In separate ways, both companies engaged in a digital transformation back in 2016, 2017. It is important to understand that stores are the reason why our digital strategy works. Petz and Cobasi have both used our physical channel to accelerate and capture the most of our digital sales. Brazilian e-commerce have a compound growth of double digital a year between 2019 and 2025. In that same period, sales from our stores grew at even higher rates. In general, in the market, we often hear about slower traffic in stores becoming a concerning fixed asset. This might make sense in a more generic way, but in my opinion, it is wrong when it comes to what truly matters. Most of our growth did not come from digital sales being shipped from our DCs, but they were shipped from the closest stores to our customer's home. Mercado Livre, Amazon, and several other startups have spent, and continue to spend, billions building their logistics infrastructure from scratch. Petz and Cobasi already had this operating for more than 10 years and very close to the majority of our customers. With that, we were able to transform our stores in a hub for digital solutions. Our parking is a pickup area. Our stockroom becomes a local fulfillment inventory. Same-day deliveries represent more than 75% of the ship from store orders. This is a pace that Mercado Livre and Amazon still struggle in achieving in most of the Brazilian territory. This is not about technology. This is a decision that we have made years ago to not let go of our physical channel while everyone was betting that e-commerce would make stores irrelevant. There is a second angle most people don't talk about. What keeps our stores in people's lives is not the app. It is not the subscription. It won't be AI. What keep our stores in people's lives is their dog food, their cat food, their flea medicine, their hygiene pads, and the flowers and arrangements we sell, and many other recurring products. If you sell what customers buy every 15 days or every month, almost in auto mode, has one element that is often not mentioned, habit. Habit becomes data in scale. Data becomes customization in the way we approach customers. Customization turns into revenue. That is the beauty of our transformation as a company. The question that we asked ourselves, and that took us a long time to answer, was, how can we make our customers need us every week and not just when we offer promotions? The answer to the question is having stores that are nearby, good service, good grooming and veterinarian services, consistent operational execution always. What is going to be the next wave? AI and agent commerce, which are the new technological frontier, and they are right next door, I would say. Copying Cobasi and Petz without having what we have built for the past few decades, it is a complex and, above all, expensive decision. To speak of omnichannel strategy without a reliable stock level and without a well-distributed store network, and especially without having efficient logistics, in my perspective, is only a promise that, in my opinion, is completely frail. You cannot even give the delivery promise. Adding AI over a fragile operation is not going to solve any problem. We understood that way before the pandemic, and we transformed our stores into platforms, embedding technology and modern processes. For us, a very long time ago, stores were more than just stores. They became a platform for our customers, a venue for entertainment. Stores now offer services that are provided by third parties and partners. A store as a platform, as an important logistics hub, a store as a pickup area for your products, and a store to sell ad spaces for our partner brands. For us, stores are platforms that offer our apps that are extremely friendly. You can purchase on very few clicks with agile and digital scheduling of our services and the loyalty programs that are also embedded and the digital portfolios that keep our customers well-served in our ecosystem. I have to ask, what is the asset that companies have that is still being treated as a fixed asset, but that could be transformed into a platform? We are a network of stores with a real traffic of people, with a track record of customers that keep on coming back. We are a national group with the level of credibility that no other player has achieved. The Petz Cobasi group is not only more innovative, but we also understand that we did not underestimate the potential of our stores. We have to stop underestimating our physical channel because our stores are now platforms. We had that clear understanding some time ago, and we transformed our more than 500 stores into wonderful platforms. I apologize for the long speech, but I would like to conclude by saying that being present nationally with our stores is an essential asset for building our platform of stores and services. The Petz Cobasi group is moving in that direction, trying to innovate and be complementary to our great ecosystem. Thank you so much. The Petz Cobasi group earnings call is now over. The investor relations department is available at the email address on the screen to take any further questions. Thank you so much for joining us, and have a great day.