Coca-Cola Icecek AS

IST:CCOLA.E

Earnings Call Transcript 2020-Q1

[Operator]

Ladies and gentlemen, welcome to Coca-Cola Içecek First Quarter 2020 Financial Results Conference Call and Webcast. I will now hand over to your host, Ms. Çiçek Özgünes, Investor Relations and Treasury Director. Please go ahead.

[Çiçek Özgünes, executive]

Hello. Good morning, and good afternoon, ladies and gentlemen. Welcome to our first quarter 2020 results webcast. Today, our CEO, Burak Basarir, will talk about our operational performance. And then our CFO, Andriy Avramenko, will share with you the financial review. Following the closing remarks, we will start the Q&A session.

Before we begin, please kindly be advised of our cautionary statement. The conference call may contain forward-looking management comments, including projections. These should be considered in conjunction with the cautionary language contained in our earnings release. A copy of our earnings release and financials are available on our website at www.cci.com.tr. I also want to highlight that the financials we refer to in this presentation are all excluding Dogadan tea business. As you know, we announced in early April that we reached an agreement with the Coca-Cola Company to terminate the sales and distribution of Dogadan. And therefore, first quarter financials reflect non-ready-to-drink tea business as a discontinued operation. In order to provide a fair comparison, we restated first quarter 2019 financials accordingly.

Now let me turn the call over to Mr. Burak Basarir. Sir?

[Burak Basarir, executive]

Thank you, Çiçek. Good morning and good afternoon, everyone. Thank you for joining us today. Before I start to talk about our operating performance, I want to highlight how unprecedented times we are going through. All those things are looking better than they were 15 days ago. We have already started talking about timeliness for going back to new normal. It is still unlike anything we have seen before. [indiscernible] thoughts are with those affected with the coronavirus and in particular with those on the frontline of the crisis. As you would remember in our full year conference call, I was mentioning what a solid start we have made to the start so far. And actually, today, you'll see that in our results.

Despite foreseen unprecedented events we have faced so far, our first quarter results are solid with strong performances across the board, especially international operations. Our consolidated sales volume grew by 4%, which was -- I will elaborate more on the coming slides, could have been strong double digits had we not faced the COVID-19 epidemic.

Our IC and FC mix was stable pre-COVID. But with the closure in the on-premise channel, which impacted our IC volumes negatively, we have seen 1% contraction in the number of transactions in the first quarter.

Sparkling beverages had a higher share in our total volumes. And along with the price adjustments, our revenue growth significantly surpassed the volume growth by recording 21% growth on a consolidated basis and 16% on an FX-neutral basis.

Strong operating profitability in international markets helped balance sheet to be reported EBITDA margin contraction in Turkey, which was totally due to termination of cash designation. Accordingly, our consolidated EBITDA margin expanded by 41 basis points year-on-year. Without the impact of cash designation, margin expansion would have been 230 basis points.

Despite the fact that this is the smallest quarter of the year, we managed to deliver positive free cash in the amount of TRY 30 million. This was partly achieved by the lower CapEx but also due to lower extended payment days, particularly after the mid-March as a first response to COVID.

Working capital management will continue to be our focus area. But given the challenges in the markets, we may not see the positive trend we have seen in the Q1 on the working capital side. As you can imagine, just as we are extending our credit payment days, we need to be more flexible on the collection side as well. We are a part of very strong global system. And also locally, we have to stay strong along with our customers and also with our stakeholders.

Without neglecting our financial discipline, we are running the business adapting the current circumstances. We are in the crisis together, and we will come out of this crisis even stronger.

I will cover the impact of COVID in a bit more detail in the coming slides. But I want to highlight that, as you can all imagine, the most severe impact was seen on the on-premise channel. And we have started to see some changes in the consumer preferences, some of which may not be just temporary.

Moving on to the next slide, please. Talking about our first quarter performance, I'm happy to report another quarter where we have delivered in line with our quality growth algorithm. Expect -- except the volume growth in the number of transactions, all metrics were in line with our algorithm. Price adjustments both in Turkey and international markets, along with the higher share of Sparkling and overall volume growth, resulted in 21% growth in our net sales revenue.

On an FX-neutral basis, revenue growth was still very solid at 16%. Growth in EBITDA outpaced that of our revenue growing 24%, with a margin expansion of 40 basis points.

Let's move to the next page. Let me briefly talk about the category performances. Sparkling category volume grew by 6% in the quarter, reflecting higher volumes in all geographies, except Jordan and Turkmenistan. As you know, we have temporarily suspended our operations in Turkmenistan due to currency conversion issues. Therefore, the -- there's almost zero contribution of Turkmenistan to our both top line and the bottom line. In Pakistan, Coca-Cola brand grew by 4%, and in Iraq 6%, leading to promising Sparkling market share gains in these markets. Similarly, in all of our Central Asian operations, Coca-Cola brand grew over the average Sparkling growth. Also, in Turkey, the growth in Sparkling category was a solid 4% during the quarter.

Stills category posted 1% growth despite very tough comps. As you would remember still, the growth in 2019 was 14.1%. Ice Tea grew in all markets except for Turkey, but it was again cycling a very tough comps of 22% growth a year earlier.

Water was the only category we saw a decline in the first quarter. This is totally due to our conscious choice. Rather than focusing on the overall volume, we focused on the value and that had a setback in the on-premise channel due to epidemic-related shutdowns as well.

So let me move on to the next place -- page. As I mentioned at the start of my presentation, we had a very solid start to the year with double-digit growth rates in our major markets. Volume growth was 16% between the January 1 and March 15, if we divide the whole quarter into 2. And in the last 15 days, we saw a contraction in volumes by 31%. The severity of the decline in the last 2 weeks vary greatly among channels. While discounters grew by 50% due to stocking effect, on-premise declined by 70%. The decline in the modern trade and traditional trade was much limited at around 20% levels.

E-commerce channel was a significantly growing channel, growing around 600% in the last 2 weeks of the quarter compared to the same period of the previous year. But since this channel has a very small base, the growth here is not offsetting the decline in the other channels, obviously. However, we realized that the growth in the e-commerce channel is likely to be permanent, and we are making sure that we are fully ready to benefit from the surge in this channel.

Along with the shutdown of the on-premise channel, unfortunately, the share of IC packages in our total sales declined. Although we cannot fully offset the decline fully, we have multipacks in outlets to manage the package mix in our favor.

Moving on to the next slide. This is certainly not the first time we are dealing with this kind of crisis. As you've been following the CCI for many years, we have gone through many crises like this. Naturally, this is a bit different in the sense that it locked half of the world's population into their homes, and it is still not clear how soon the pandemic will end, what will be the lasting effects at the end of this pandemic.

I can openly say that we are very quick to take immediate actions to manage this pandemic as a company. As always has been, safeguarding the health and well-being of our employees is the top priority for our company. First and foremost, we took measures to make sure all of our employees are safe, properly trained and well equipped. We started smart work immediately by mid-March for the majority of our business. As of this week, all of our sales team are back on the market and started visiting our customers.

Serving our customers and consumers has been our second priority even at the peak of the crisis. We kept our plants open, fully operational. In countries where there were curfews, we got special permits to operate as a beverage company. We have comprehensive business continuity plans in place to ensure that we can continue to supply our consumers and customers.

Our support to communities continues with the health and safety-related supports as well. Across our geographies, we have provided cash donations, work closely with the official authorities, support public service employees when needed. We have product donations to keep communities across the board in our operating region. On top of it, we are making medical equipment donations in some of our countries as well.

I'm also especially proud of our supply chain team, who was able to produce hand sanitizer and surface disinfectants to donate to health ministries across the operations. Additionally, the Coca-Cola Foundation has globally, as you know, donated $120 million, out of which close to $5 million of that will be going through our countries in the region.

So moving to the next page. Obviously, this crisis does not change our long-term direction. We are headed for a profitable growth with our people at the core, creating value for our shareholders while being a preferred partner for our stakeholders, offering our consumers a wide choice of products at every occasion and being a good corporate citizen. None of these have changed and will not change. Only some of the short-term priorities have been inserted.

Being a fast-moving goods company, we're fast in our ability -- adaptability to every situation. Therefore, immediately, we adapted ourselves to the new pandemic world. To free up supply chain, we optimized our number of SKUs in all of our markets. In Turkey, for example, we used to have close to 250 SKUs. Now we are serving with our customers with 35 SKUs. While in international, we are serving our customers with a lesser number of SKUs.

With people at the core, we took stringent measures to protect our people. We've started remote working immediately by the mid-March. We cut back on all of the uncommitted CapEx, which was planned for this year. We have also taken many cost-cutting measures in many of our OpEx line items.

Next phase will come as a recovery phase. We're preparing ourselves by having dynamic forecast and action plans as well. We already have a strong balance sheet, but we're focused on maintaining its strength by managing our working capital properly and funding requirements proactively.

As we are very prudent in OpEx and CapEx, our commitments to generating positive free cash flow will continue throughout the year. That is, at the last phase, we will start growing again. We will accelerate our growth, building on our fundamental strengths of our business. The new future might not be as we were envisioning 3, 4 months ago. So our business model will adapt new normals by adapting to changing consumer needs, occasion channels and priorities.

So let me move to our Turkey review. In Turkey, our sales volume was flat compared to a year ago. A 4% Sparkling growth came as a result of brand investments, pricing initiatives and superior in-store execution, especially prior to March 15.

In the Stills category, we were cycling tough comps like 22% growth in Ice Tea and 9% in Juice. Therefore, especially due to weaker Juice category, decline in Ice Tea was only 3%. We recorded -- we reported 7% decline in Stills.

The Water category volume was down by 6%, in line with our strategic choice on value generation rather than the volume and also negative impact, negative momentum on the on-premise channel after the pandemic.

Price adjustments and positive category mix resulted in a robust growth in net sales revenue, increased by 18%. This was achieved despite the negative package mix impacts we see due to decrease of our immediate consumption packages, especially in the second half of March.

Moving on to next page to review our international operations. Our markets volume growth was quite strong, especially on the Sparkling category. Brand Coca-Cola grew by 10% in total in international markets, leading share gains. The volume grew by 7% mainly on the back of Pakistan and Central Asian operations. Sales volume in Pakistan grew by 7%, although macroeconomic environment is still challenging and the competition is still tough.

In January and February, we recorded 33% volume growth in Pakistan. However, with the COVID-related shutdowns, last 2 weeks were pretty weak, slowing down the quarterly volume growth.

Central Asia delivered a very strong quarter by growing 14.5% in total and 15.15% (sic) [ 15.5% ] when the Turkmenistan business is excluded. In Iraq, despite all of the challenges, Sparkling volume grew by 2% and the Coca-Cola brand, as I said, grew by 6%. However, since we are focusing on creating value in Water category, volumes also declined in Iraq, slowing down the quarterly volume performance.

The price increases we took since the second quarter of 2019 led in price -- net revenue increase in the country. Net sales revenue increased by 23%, while it was up by 13% on an FX-neutral basis.

Now I will hand over to Andriy to take you through the financial results in more detail. So Andriy, back to you.

[Andriy Avramenko, executive]

Thank you, Burak. Good morning, and good afternoon, everyone. Burak already talked about the solid performance we had in the first quarter, but let me delve into some more details now.

New -- net sales revenue grew by 21% in the first quarter of the year, driven by growth in volume, price adjustments and positive translation impact. This growth was driven by all operations, except for Tajikistan and Turkmenistan. On an FX-neutral basis, our NSR growth was 16%.

Our consolidated gross profit grew by 22%. We are particularly pleased with this growth because as you would remember, at the end of the last year, we terminated our cash designation methodology, which at the time greatly benefited margins. Cash designations impact in last year's gross margin was 188 basis points. And despite this, we managed to grow our gross margin by 43 basis points in the first quarter year-on-year. Excluding the impact of cash designation, margin expansion was 231 basis points.

The good performance at gross profit line was a result of higher per unit case sales prices and lower procurement prices in some commodities in certain markets. Our consolidated EBIT grew by 30%, translating into margin increase of 50 basis points to 6.9%, supported by higher gross margin and tight OpEx management. The expansion in the EBIT margin would have been 238 basis points without the impact of cash designation.

Our net income in the quarter was solid at TRY 127 million. Besides improved operating profitability, lower net financial expenses helped the bottom line. Termination of cash designation benefited net financial income expense line as the FX gains incurred from hard currency deposited were now recorded under this line.

Let's go to the next page. Let's touch on our per unit case performance now. Our consolidated net sales revenue per unit case increased by 12% on an FX-neutral basis. NSR per unit case growth recorded in all countries, except Tajikistan and Turkmenistan. Our gross profit per unit case grew by 13%, attributable to higher gross margin in international operations.

As we discussed before, gross profit of Turkey operation was impacted by the termination of cash designation. Without that, gross profit per unit case growth in Turkey was matching that of the net sales revenue per unit case growth. EBIT per unit case was up 19%, mainly driven by higher profitability of international operations.

Let's move to the Slide 13. As I explained earlier, we recorded 43 basis points consolidated gross profit expansion in the first quarter, mostly driven by the solid performance of international operations, where we saw 437 basis point margin expansion. Lower prices of certain raw materials and shelf price increases we took were the reasons behind the solid margin expansion.

In Turkey, on a reported basis, we saw margin contraction due to termination of cash designation. However, if the cash designation impact is taken out from first quarter 2019 for comparison purposes, Turkey gross margin was flat.

The expansion in gross profitability and the continuation of disciplined OpEx management resulted in 50 basis points EBIT and 41 basis points EBITDA margin expansion on a consolidated basis, both of which were much stronger without cash designation impact.

Moving to Slide 14, please. We recorded TRY 127 million net income in the first quarter of the year compared to TRY 3 million loss in the year ago. Improved profitability had an important impact, along with much lower net financial income and expense. Higher share of FX-denominated cash and hedges in place helped us manage FX gain/loss line effectively. Please bear in mind that since we have around USD 150 million deposit released from cash designation now, the FX gain/loss incurred from the borrowing goes under this line.

Let's move to Slide 15, please. Our net debt was at USD 416 million by the end of March, down from USD 431 million by the end of 2019. We are quite comfortable with the level of leverage we have. In normal circumstances, in a growth company like ours, such a low leverage might have made us a bit uncomfortable. But considering the current pandemic environment, where the importance of liquidity cannot be emphasized enough, we are very comfortable with our balance sheet position. Uncertain time with little visibility make us extra cautious on how we manage our liquidity position.

We have a manageable debt repayment schedule, which can be funded by our existing cash balances. Nevertheless, we plan to repay around half and refinance the remaining half. We already started this refinancing and it is running quite smoothly.

On the balance sheet FX exposure, we have a couple of strong mitigations. The total amount of our hard currency denominated debt is $840 million. As of end of March, we had USD 330 million of hard currency cash.

Second, we have hedges in place in the form of cross-currency swap and forward transactions. In addition, we have net investment hedge in place, matching a portion of our U.S. dollar borrowings with our U.S. dollar-denominated assets abroad. So we can reduce our FX open position to as low as $24 million. Naturally, this does not include any trade payables, receivables. But from a balance sheet perspective, I wanted to highlight the comfortable position we have from FX point of view.

Let's move to Slide 16. As we touched base earlier, our low gearing ratio, our access to international and domestic bank lines as well as access to international debt capital markets, significant headroom we have under our financial covenants and the loan maturity profile we have, all of this give us one less thing to worry about in this crisis. We should have more than sufficient liquidity. Nevertheless, we are on constant lookout for any opportunities or threats that may arise. And we are ready to make proactive actions when necessary.

As you know, we initially announced a dividend distribution of TRY 450 million, but due to a new law on mitigating of effects of coronavirus outbreak on economic and social life, our dividend distribution had to be limited to 25% of our 2019 profits, meaning we can distribute a total of maximum TRY 239 million of dividend, which was recently approved by our general assembly as well.

Although we wanted to share the good profit we recorded last year with our shareholders, we now have more liquidity in place for the volatile times ahead. We hold a large chunk of our cash in hard currency, 75 -- 71% as of end of March, and we intend to keep it because we see it as a way to mitigate the hard currency debt risk we carry in our balance sheet.

Next slide, please. Although this was the smallest quarter of the year, we managed to record TRY 30 million of free cash flow. Some of it is coming from our prudent CapEx management, but the real impact from lower CapEx will be visible in the second quarter because we are now deferring all uncommitted CapEx and noncritical CapEx.

Net working capital has been a positive contributor in the first quarter as we were able to get extended terms on some payables. However, going into the second quarter, we do not expect the positive trend in working capital to continue.

Obviously, it is a challenging time for all of us, but we have continuity of our business on our minds the most. Therefore, we are trying to find a balance between extending receivable days, supporting our customers and protecting ourselves. We need to mention that we have very strong credit coverage in place and a majority of our receivables are guaranteed. By the same token, we are getting extended days from our suppliers as well.

Nevertheless, on a net basis, we may see some drag on our net working capital in the following quarters, but it will be temporary. Once the initial impact of the pandemic starts to ease and business environment normalizes, I am very confident that we will continue with our strong focus on decreasing net working capital needs.

Please move to Slide 18. We started the year with good coverage ratios for our key raw materials. Since most of our operating markets are regulated, in terms of sugar prices, we fixed a large portion with suppliers. This ratio was over 80% by the start of the year, which now increased to 100%. We're also starting using financial hedging tools in small amounts in addition to supplier hedging.

As for aluminum and resin exposure, we try to benefit from the low commodity price environment and increased our coverage ratios to almost 80% in these raw materials for 2020. We even started hedging aluminum for 2021 and 2022. And we are evaluating options for resin.

Now I hand over to Burak for his closing remarks.

[Burak Basarir, executive]

Well, thank you, Andriy. As you know, we've started the year with a strong guidance for 2020, which we were quite confident we can easily met. Unfortunately, the pandemic resulted in a deviation in our plans, just as it is the case anywhere else. So I'm sure it did not come as a big surprise to anybody when we withdrew our previous guidance yesterday, together with the first quarter results.

Although we are running various scenarios every day, we have contingency plans for many new risks, we feel it is early to put forward a new guidance with which we can feel comfortable. As soon as we have some visibility on the duration and the severity of the pandemic, we will share our expectations with you through the public platforms.

I don't need to say that we are confident in our business. We have a fantastic business with great fundamentals. We are in a very strong global network. We carry the world's best known brands in our portfolio. As Andriy mentioned in great detail, we have a very strong balance sheet with low leverage and high liquidity buffers. And most importantly, we have a fantastic team and a system of stakeholders who take this business forward no matter what.

2020 won't be an easy year for anybody, especially the second quarter already is and will continue to be quite challenging. But building on our years of experience of weathering challenges, we believe this particular challenge as well will underline our competitive advantage.

We already started preparing for recovery plans, and we will be taking the most necessary actions as soon as possible. This takes a fully motivated workforce, well-established systems, proactive planning and agility to implement them. We will remain focused on accelerating the growth maybe with adjustments for the new normal and creating sustainable value for our shareholders.

So I would like to thank in advance for participating in our call. And I think we can start taking some calls from you.

[Operator]

[Operator Instructions] The first question comes from Alexander Gnusarev from VTB Capital.

[Alexander Gnusarev, analyst]

I have a couple of questions there. My first question, if you can comment on this, what was the volume decline in April and May?

[Burak Basarir, executive]

Well, unfortunately, I'm not going to be able to give you the volume decline in April. We have already started the May. But what I can say that the trend we are seeing in the second half of the March, I think we'll continue in April and May as well.

[Alexander Gnusarev, analyst]

Okay. My second question is what was the approximate share of on-premise channel in 2019 and in the first Q '20?

[Burak Basarir, executive]

Yes. I think I show the page. Let me try to take the on-premise channel. When you look at the package mix, which is like roughly around 30% to 70%, IC -- 30% being the IC and 70% being the [indiscernible]. So that kind of a mix also implies overall on-premise channel mix in our business as well. You could say like 30%, 32%, 35% on-premise and the home market.

[Alexander Gnusarev, analyst]

This is the current share, right?

[Burak Basarir, executive]

That's 2019.

[Alexander Gnusarev, analyst]

2019. Okay. And were you able to compensate the negative trend in April and May in terms of volumes by the decline in your costs?

[Burak Basarir, executive]

No. I mean that's -- this is a too short of an answer, but unfortunately no. So that's almost impossible for any kind of a bottler to compensate that shortfall with any kind of savings on the cost of sales side.

[Operator]

[Operator Instructions] The next question comes from Hanzade Kilickiran from JPMorgan.

[Hanzade Kilickiran, analyst]

I want to have a follow-up here. You mentioned that you are now looking into a new business model in a new way. Can you please open this a bit further? I mean what type of changes should we see under this new environment on the business model side? I couldn't understand this clearly.

And the second question is that given -- I mean that's a follow-up of the first question. Okay, it's not going to be possible to compensate the loss through the cost savings. But with this sharp volume decline and OpEx savings, what is the margin performance you experience at the moment? Maybe a kind of guidance here would be really helpful for us.

And the third question is about the raw material. There is a very good correction in the raw material prices, but you have also a high level of hedging here. So would it be reasonable to assume decline in raw materials could create a positive impact more next year rather than this year?

[Burak Basarir, executive]

Hanzade, this is Burak. Let me take your first question, and I'll leave the next 2 of them to Andriy to take on. So the business models will change as to -- we're seeing some consumer behavior changes, i.e., right now, obviously, the on-premise channels, the HORECA channel is closed. So that will require a different attention. So we're going to be reorganizing ourselves and reallocating our resources, the field resources to our home market channel. And also that will also call for new [ OBPPC ], a strategy which is like occasion brand, channel pack price strategy. So that -- we will have to visit that as well.

But we will see how the consumers will adapt to the new normal. I think it's too early to say, but what we're seeing right now, obviously, because of the existing limitations, so the HORECA channel is not performing. And we're just basically channelizing our team to work on the home market channel.

So -- and the e-commerce is another channel which is, as I said, emerging much faster than the other channels for obvious reasons. So we're going to be paying special attention and then investing behind on the e-commerce to take that leadership in that channel, too.

So let me leave the second and the third question to Andriy.

[Andriy Avramenko, executive]

Let me start with the raw materials. So the part of the story here in terms of -- if you look at our previous conversation, we had a much lower coverage on aluminum and resin because we expected the prices this year being low and not much higher than previous year.

Now with current oil price impact and so on, obviously, we see the opportunity. And that's why we started increasing our coverage for this year and also stepped in to start coverage for the next year and even year after, which is fairly unusual for those type of commodities, but we are very confident in that.

So now why we are not 100% covered right now this year, next year because that pain in the commodity markets will last a bit longer. And we are very diligent in terms of ensuring that we get the lowest prices and the longest coverage possible. But we do very clearly see the opportunity. And as you can see, our 2020 projected prices on Slide 18 for all commodities are significantly lower than our 2019 prices. So we are very much focused on this specific manner. So we are actively increasing our coverage for this year and for -- start coverage for the year 2021 and year 2022.

On sugar, we can do a little less because the only free markets that we have on sugar are Iraq and Jordan, and we are also doing some coverage there, including hedging and long-term contracts. But the rest of our markets are regulated, and the governments play a very significant role in those markets, including the price setting. So our flexibility to kind of get the best possible price is limited there. So that's on commodities.

And your other question, I believe, was on the margins and if we can give any guidance or if we can compensate and come back to the previous margins or give any guidance on margins. Look, if we -- I mean the answer is no at this point. We obviously have 2019 margins on top of our mind, and this would be a [ North Star ]. But you understand that this kind of -- if we had clarity on our margins, we would be very comfortable to give you a guidance for the rest of the year. And that's why -- yes?

[Hanzade Kilickiran, analyst]

Actually, I was wondering about the current margin performance during the pandemic, not the guidance. I mean you shared that you have observed like 30% volume decline. I really wonder the impact on the margin of this volume decline and the SKU mix change, I mean, if possible, of course.

[Andriy Avramenko, executive]

Yes. I think we gave, on one of the slides that Burak bey explained, the volume split before and after pandemic. And you have our full Q1 P&L. So it's possible to work it out. So -- and also, I would remind you that we always communicated that our IC gross profit is 1.5x of our gross profit in future consumption. So I think this will help you with your modeling, together with the information that we already have in the deck.

[Operator]

[Operator Instructions] The next question comes from Ece Mandaci from Unlu & Co.

[Ece Baysal, analyst]

I got a follow-up question on the immediate consumption packages. In the earnings release, if I'm not mistaken, the ratio of IC packages under Sparkling in Turkey was 22%, and it was down from 25%. But the data you have provided in the presentation represents total aggregate volumes, including international, I believe, and not -- I also think it's also including other Still, Water categories. Is it due to this classification difference? Or is there any other calculation behind that?

[Burak Basarir, executive]

Yes. There is no calculation difference. What you're seeing on that slide is that 30-plus percent, that is basically a consolidated share. So it's the same immediate consumption packages, which are smaller than the 1-liter pack. So the definition is the same across all of our operations.

[Operator]

[Operator Instructions] There are no further questions. Mr. Basarir, back to you for the conclusion.

[Burak Basarir, executive]

Okay. Thank you very much. Ladies and gentlemen, thank you very much again for your time and taking the call. And I'm wishing you all, yourselves and your loved ones healthy days and stay safe. And then rest assured, so at CCI, we're going to be doing our best in the coming days and coming months to deliver the most possible best results that we can.

So thank you very much again for joining our call, and thank you very much. Stay safe. Thanks a lot. Bye.

[Operator]

This concludes today's webcast call. Thank you for your participation. You may now disconnect your lines.