Message from Management
We appreciate the value of synergy. A good system is one that connects to others, combining solutions, processes, tools, information and services. This concept is essential in different aspects of our lives: it is impossible to talk about ESG practices without synergy, just as it would be unimaginable to think about collective balance and well-being without it.
In 2024, in particular, we were able to strengthen this concept at LWSA, by consolidating our ecosystem, interacting with our brands and connecting our services and solutions. All of this was focused not only on results but, above all, on our reason for being: people.
We provide an essential service to the Brazilian economy, and our mission is to support entrepreneurship in Brazil. Our aim is to contribute to the country’s development and create jobs, helping retailers and entrepreneurs to open and expand their businesses. Even in the face of a challenging environment, we continue to invest heavily in cutting-edge technology, making it accessible to small- and medium-sized businesses, people and companies that are unlikely to afford it, by providing simple and affordable access. As a result, our customer base increased substantially during this period.
Over time, our strategy has been to make acquisitions with a very clear focus: adding increasing value to our customers. We started by supporting them in creating a website and then offered the opportunity to create an online store to sell their products. Then, we began to offer logistics and ERP/ POS solutions, thus guaranteeing them a more competitive position in the market, and enabling the use of payment methods such as credit cards, bank slips and Pix in their e-commerce platform.
Everything we do is designed to serve our customers. With this in mind, we have identified the tools they use the most, improve them or create new solutions. We never stop investing in innovation. Our team of employees, executives and entrepreneurs is always attentive to customer feedback, generating new ideas to keep adding value.
We do not just offer one product but a diversified portfolio that includes ERP/POS, e-commerce, logistics and payment services. This operational diversity is what sets us apart. We are resilient to crises: over the past 26 years, we have endured challenging times in the Brazilian economy. Our business model is very sustainable, whether through leading or consolidated products or through subscription services. This is how we have gained an important presence in the Brazilian e-commerce market, with a share of more than 20%.
In 2024, we made significant progress in our governance. We reviewed, improved and standardized processes; restructured departments; unified our Human Resources Department, disseminating best practices within the companies and, thus, creating a single culture. We standardized policies for health, customer service, benefits and sustainability initiatives, among others, and conducted more structured campaigns.
As a result of a consistent succession plan, in 2024, we completed a CEO transition at LWSA, a process conducted with maturity and experience and based on partnership. We have evolved significantly in terms of efficiency and processes, aware that growth requires good structure. And that is what we have done to keep up the development pace that we aim to achieve in a consistent, robust and sustainable way.
In terms of performance, in 2024, LWSA recorded important productivity gains, reflected in the gross and EBITDA margins, which were substantially higher compared to previous periods and whose operating indicators showed consistent performance, maintaining an strong growth trend despite the macroeconomic scenario for retail and e-commerce in Brazil.
We are a company that continues to gain efficiency and scale. We improved our profitability, margin and cash generation ratios, which led to significant gains for our investors and shareholders. In 2024, we made a very significant move, by paying dividends and repurchasing shares, which, in a nutshell, reflects our commitment to reinvesting in the Company.
Looking toward the future, on a short-term horizon, we will continue to gain a lot of value from our existing assets. In the medium term, we expect to continue expanding our business to new customers and areas. In the long term, we plan to invest in new products and services. From a financial point of view, our goal is to ensure our customers that we can serve, support and help them grow and thrive in their businesses, and to have sustainability to support this growth and investment in innovation. Therefore, we create value for the Company, our customers and society.