The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Guilherme F. Grespan - JPMorgan Chase & Co, Research Division - Analyst
: Two questions on my side. The first one is related to Nigeria. You mentioned that you expect some impact from the deval, I think it was 40% to
50% deval on the FX, and we already see hitting the revenues declined the share of Nigeria on total top line. But it was interesting to hear that you
do not expect any impact into gross profit. So I'm trying to reconcile those 2 statements. The only way I can think of is that your gross profit margin
in Nigeria is close to 0. And I do want to confirm if we operate in the country with very little margins, and the second one is related to financial
income. It was a very large contribution from gross financial income in the quarter.
I imagine this is related to Argentinian bonds. If you can recap how much those bonds are paying. And if we had any nonrecurring financial gains,
meaning the appreciation of the bond in the quarter, or if it is level of $19 million gross income per quarter should be the new recurring level given
how you're invested in those bonds.
Question: Guilherme F. Grespan - JPMorgan Chase & Co, Research Division - Analyst
: Just if I may, how much those bonds, Argentinian bonds are paying?
Unidentified Company Representative
So they are mark-to-market. The interest rate, the nominal interest rate of only is minimal at 0.4% because they are dollar linked but it's mainly the
result of the mark-to-market of that bond. But again, out of the financial income of the quarter, only a small portion of that is the bond. Most of
the financial income is a result of cash held in money markets are interest-bearing accounts, I would say in Brazil, Argentina and at the operating
company level.
Question: Kaio Penso Da Prato - UBS Investment Bank, Research Division - Analyst
: I have 2 quick questions on my side, please. The first is following the management change. Just would like to have your view about the strategy
going forward if there will be any change given the recent movements or if there is any other initiatives beyond payments and your current products
that you could pursue in the medium term and if so, if you can give us an example would be really helpful, please. And the second one, if I may, is
just another quick follow-up in Argentina. I'm not sure if I completely understood, but I think in one of your answers, you mentioned that you do
not expect any impact from the additional deval in the peso as you reprice your clients, otherwise, you will have a negative input, is that right? Just
would like to confirm? And if so, if have you already repriced your client this week after the devaluation or not.
Question: Kaio Penso Da Prato - UBS Investment Bank, Research Division - Analyst
: Okay. But just wondering if you could pursue any other opportunity beyond payments or no, if not the strategy?
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AUGUST 16, 2023 / 12:00PM, DLO.OQ - Q2 2023 Dlocal Ltd Earnings Call
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