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Good afternoon, ladies and gentlemen, and thank you for waiting. Welcome to Unicasa Indústria de Móveis S.A. to discuss the results of the third quarter of 2020. Today with us, we have Mr.Gustavo Dall’Onder, CEO, CFO and Investor Relations Officer.
We would like to inform you that this event is being recorded. [Operator Instructions] This event is being broadcast simultaneously on the Internet via webcast, and you may access it at www.unicasamoveis.com.br/ir, where you will find the presentation for download. The slide selection will be managed by you. [Operator Instructions]
Before proceeding, let me mention that forward-looking statements might be made during the call in relation to Unicasa's business perspectives, operating and financial targets, beliefs and assumptions of the company's management as well as information currently available to the company. Forward-looking statements are not a guarantee of performance. They involve risks, uncertainties and assumptions as they refer to future events, and therefore, they are subject to circumstances that may or may not occur. Investors and analysts should understand that general economic conditions, the industry conditions and other operating factors may affect the future results of Unicasa and may lead to results that differ materially from those expressed in such forward-looking statements.
Now we would like to turn the floor over to Mr. Gustavo Dall’Onder to start the presentation. Mr. Dall’Onder, you may proceed.
Good afternoon to shareholders. This quarter, the results of the company exceeded our expectations. We believe that the restrictions of leisure and tourism that gave people overall a longer time to stay home led them to look for improvements in their space. We also saw an improvement in the real estate market coming from the consumer habit and reduction of interest rates. It's hard to say whether this is going to last or how long this is going to last and be attractive.
Cash generation in the quarter reached BRL 21.4 million, the highest figure in one single quarter since the company was listed in 2012. Most comes from the operating result. Another relevant part comes from a lower expenditure with the purchase of raw material because of the early purchases that we did in the second quarter of 2020 in order to avoid the impact of price increases.
The revenue in the quarter was 6.6% higher, driven by the performance of same-store sales and other sales channels as well. You can see general productivity of stores growing 9.3% for Dell Anno and Favorita; 20% for Casa Brasileira and New.
When we look at the performance of the sector, according to data from the Brazilian furniture industry association, we can see a drop of 11.1% in the production of furniture in 2020 up to August year-to-date -- vis-à-vis 7.8% drop in the company. Operating expenses went down 8% in spite of the investment in the U.S. operation, which impacted the quarter by BRL 0.9 million. The company continues reaping the fruits of its endeavors to reduce contingencies that went down by BRL 0.6 million. And the lower impact of the pandemic contributed to the reduction of the estimates of our allowance for doubtful accounts.
Going down... [Technical Difficulty]
And the other expenses went down by BRL 0.5 million due to the control of expenses because of the pandemic. Due to travel and marketing and other operating revenues and expenses, we had some positive nonrecurring impact, around BRL 0.8 million in the financial result. The main impact was the reduction of revenue from financial investments affected by the reduction in the SELIC rate and lower volume of cash due to the capital reduction that we concluded in the first quarter of this year.
I would like to mention that the operating result of the company was 41.4% higher as the maturation of investment in the operation of the United States is extending beyond our estimates because of the effects of the pandemic in the market -- on that market. The EBITDA margin of the company reached 23.4%, the highest percentage since the first quarter of 2012; 12.6% net margin; annualized ROIC, 8.5%; annualized ROE, 7.5%. In this quarter, the result of the company exceeded our [ expectation ].
Now Slide #5 for the highlights of the period. We closed the quarter with 6.6% increase in net revenue with a cash generation of BRL 21.4 million; operating result, 41.4% higher; and the EBITDA margin of the company, 23.4%.
On Slide 7, we highlight the most relevant details of our revenue in the quarter: first, growth of 5.5% in the sales channels; second, reduction in the distribution network, minus 0.4%; and third, termination of our own store operation, minus 1.1%. And on the next few slides, we will see the consolidated effect in each one of the sales channels.
Starting by the exclusive reseller, Dell Anno and Favorita, Slide #8. We see a drop in revenue, 2.8%; reduction in the number of modules sold, 12.8%.
On Slide 9, we see that the New and Casa Brasileira brand had an increase in revenue of 22%; and then modules sold, 14.8% increase. On Slide 10, we see the performance of multi-brand resellers, a reduction of 1.4% in revenue and 15.2% in modules.
The corporate segment that we see on Slide 11 had a drop of 30.9% in revenue and 48.1% drop in the modules sold. On Slide 12, we can see the performance of the export segment with a growth of 11.4% in revenue and reduction of 13.6% in modules sold. The consolidated Unicasa revenue on Slide 13 increased by 4.1%, and modules sold went down by 6.8%.
On Slide 14, we can see the average productivity of stores in the quarter. As you can see, the average productivity in the quarter per store of Dell Anno and Favorita was BRL 88,000 per month, 9% higher than in the third quarter of '19. Average productivity in the quarter for New and Casa Brasileira store was BRL 47,000 per month, 20% higher on a year-on-year basis.
On Slide 15, we see a chart with the evolution of our exclusive and multi-brand POS. We closed the quarter with 199 exclusive stores, net opening of 1 operation in relation to the third quarter of last year.
On Slide 16, we have a chart with the evolution of our POS -- exclusive POS segregated by brand. We closed the quarter with 81 Dell Anno and Favorita operations, 103 operations of New and Casa Brasileira and 15 exclusive stores abroad.
On Slide 18, we can see the summary of the Unicasa results. We can see a growth of 4.4 percentage points in the operating margin, a growth of 4 percentage points in the EBITDA margin and 1.2 percentage points in the net margin.
On Slide 19, we have a chart with the evolution of our SG&A, which went down by 8% in the quarter mainly due to the reversal of BRL 0.3 million in ADA, allowance for doubtful accounts, due to the reduction of delinquency that we saw at the beginning of the pandemic; and BRL 0.3 million reverted due to the recovery of credit in the quarter. And expenses with consumers were BRL 0.5 million lower. And they include expenditures with merchandise, freight and assembly for end customers that were not served by the closed stores and they are being served directly by the plant and also lawsuits. We reverted BRL 0.1 million in provision due to the expiration of the 5-year term so that the consumer may request [ reimbursement of ] the purchase according to what is established in the consumer defense code.
Travel, advertising and other expenses dropped by BRL 0.5 million due mainly to the company's actions to control expenses due to the pandemic. Expenses with U.S. operations refer to payroll costs, occupancy, travel, insurance, advertising, et cetera, related to the office that we opened in the U.S. to give support to the expansion of the company in that market. In this quarter, we had actual expenses to spur the development of resellers such as training for assembly and showroom besides the improvement in the office of the operation. And these expenses represented an increase of BRL 0.9 million in the quarter.
On Slide 20, we see the result of the effects that we mentioned. Net income, BRL 5.2 million. And on Slide 21, EBITDA of BRL 9.6 million, generating EBITDA margin of 23.4%. I would like to mention that on December 16, we will be paying interest on equity and additional dividend approved by -- approved on July 29, 2020.
And I would like to give the floor to the operator to start the Q&A session. Thank you.
[Operator Instructions] The Q&A session has come to an end, and we would like to give the floor back to Mr. Gustavo Dall’Onder for his closing remarks.
For additional information, please contact our Investor Relations area. Thank you very much for your presence, and we wish you a very good day.
Unicasa's conference call has come to an end. Thank you very much for participating, and we wish you a good afternoon.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]