No category-specific facts could be extracted from this document.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The decline in net sales, lower customer traffic at AZUL BY MOUSSY, and the dissolution of the Chinese joint venture weighed on sales and operating profit. Meanwhile, net profit turned profitable due to the control of selling, general and administrative expenses and the reduction of inventory valuation losses, as well as the elimination of equity-method investment losses associated with the dissolution of the Chinese joint venture and the recognition of gains on the sale of shares in an affiliate.