Ulker Biskuvi Sanayi AS

IST:ULKER.E

Earnings Call Transcript 2021-Q2

[Operator]

Ladies and gentlemen, welcome to Ülker Bisküvi Second Quarter 2021 Financial Results Conference Call and Webcast. I will now hand over to Beste Tasar, Investor Relations Officer. Madam, please go ahead.

[Verda Tasar, executive]

Thank you, Steve. Hello, everybody. This is Beste. Welcome to Ülker Bisküvi's Second Quarter Operational and Financial Results Webcast. Here with me in the room are CEO, Mete Bey; and Cenker Bey. Now I hand over the floor to Mete Bey. Mete Bey, please go ahead.

[Mete Buyurgan, executive]

Thank you. Thank you, Beste. Hello, everyone. Good morning, good afternoon to everyone.

Let's start with the presentation, if you don't mind.

This is an -- as you know, we are having very challenging -- very difficult year all around the world. But in our main market, in Turkey, basically, we have some more challenge on top of COVID's impacts, such as like FX increases versus TL, high increasing -- very high increasing raw material and packaging material prices. So commodity prices pressures is creating too much pressures for us and overseas transportation costs and so on. They are all the challenges which we are facing with for this year.

Coming to Turkey macroeconomic overview. Retail sales volumes are decreasing above 6%, and we are experiencing the similar amount of shrinkage in many of our markets. Regarding our existing markets, we are having -- most of our competitors are having the same shrinkage, volume shrinkage as well. Consumer confidence index is fluctuating in Turkey a lot. But despite all the headwinds, Turkey's strong industrial production is going ahead in a strong manner, in a positive way.

If we have a deep look for the market growth in the Turkish market, as you may see, that total snacking market in terms of volume is around 5% shrinkage while value growth is on 19%. The categories are having some different numbers in terms of volume and value growth. But if you look at chocolate, chocolate is having a promising growth versus bakery products. You may remember from our first quarter results, cake -- we were having poor performance in cake category in the Q1 reports. But however, as we estimated, and as we communicated in Q1, we had a promising growth in cake category as of Q2. So in overall growth in half 1, we are having a promising growth in cake category. And bakery category is having a very sharp decrease, volume decrease, which is like 8%, while the growth value rate is only 12%.

In terms of contribution to growth, as we discussed in the previous chart, chocolate is the main contributor to the growth, while cake started to grow after a big shrinkage as of last year -- versus last year due to COVID impacts. And biscuit contribution is very limited to our numbers.

In terms of communication highlights, as always we are very active in terms of communication with regards of our strong brand and our main brands.

Lastly, as of -- as we have been informed as of the day before yesterday, we have just won some awards by bonds and loans organization as the corporate fund -- best corporate funding team of the year and the best syndicated loan deal of the year, which was a big pride for us as an organization.

If we look at consolidated operational performance as a summary, we keep our strong position in the region, including Turkey, MENA and CIS countries. And as the first half consolidated performance highlights, our revenue has reached to over TRY 5.2 billion, with an almost 16% growth rate. Gross profit has reached to TRY 1.4 billion approximate, with 6.7% growth. And we have a loss in gross margin, which is like 2.2%. This is basically because of the very sudden increase of commodities, raw materials and packaging materials, and, of course, FX volatility in our country in Turkey, in our main market and in some of our other operating countries. But we are confident that we are going to recover some part of this gross margin in the second half. We are -- I must say that we are almost 2 months behind the raw material and packaging material price increases. So we are organizing all our price increases accordingly. So I think we are going to recover biggest part of the loss in the second half of the year.

In terms of EBITDA number, we have reached TRY 800 million almost and growth is 1.8%. And our very strong net debt-to-EBITDA position, we keep our net debt -- strong net-debt-to-EBITDA position. And free cash flow, in terms of free cash flow, we are in a very better position versus the previous years.

Again, in terms of volume and value performance, cake, as I mentioned previously, cake volume was up almost 22%, thanks to successful launch of Dankek and O'lala brands, and our innovations actually because we had too many innovations in the last 5 months in cake category. And they have really e us a lot in terms of increasing our margins and increasing our top line performances in cake category.

Sales volume in biscuits and chocolates was down 8 point -- consecutively, 8.3% and 3.7%, respectively, due to high base impacts compared to Q2 of the last year, sizing and pricing activities and the consumption slowdown, which lead to volume shrinkage the market, especially, as you may estimate that during the COVID impact, because of the basically school closings and lockdowns in the country, where it has a very negative impact on our volume consumption.

Regarding the exports and international operations, the revenue breakdown. Our domestic sales have been reached to 6 point -- the share of our revenue in domestic channel is 60 point -- 60.6%, while our operational -- international operations are almost 39.4%. So we must say 60% to 40%. In terms of EBITDA breakdown, our international operations is increasing its shares. It has been reached to 49%, while we are having EBITDA [ supplices ] in the domestic part is 51%.

Operational and financial performance. If we are going to look at deeply into our performance -- overall consolidated performance, in Q2, we are having a very better performance versus Q1, especially in May and June. Almost in all regions, in all countries, we have performed very better than versus the Q first performance.

In terms of revenue, we are having, as half 1, we are having 15.7% growth. As I mentioned, we had reached to TRY 1.4 billion approximately gross margin and with a 2.2% loss in gross profit margin. EBITDA level is almost constant. And we are having this high TRY 800 million approximately EBITDA level, which is 15.5% in terms of percentage. And others, net cash flow positive -- free cash flow position is very stronger versus previous years.

The main drivers for this performance in this quarter or half 1 is the effective volume and mix and pricing impact despite the volume shrinkage. It's quite important for us not to lose further volume shrinkage. So as I mentioned, especially in May and June, we had a promising growth actually in terms of -- not only in terms of value, but also in terms of volume performance. New listings in discounter channel was quite important. So we had some growth over this. And we have successfully tried to manage the channel mix and the product mix. So once we see the last 2, 3 months' performance, we can feel ourselves more confident versus quarter 1 of this year. And in August and July, we keep the momentum actually in terms of the same growth. So we are very hopeful on the Q3 and Q4 result despite the increase in prices and increasing commodity price pressures.

So our CFO, Cenker, will continue to give some more further details. Cenker?

[Cenker Uçan, executive]

Thank you, Mete Bey. Hi, everyone.

So now first of all, I would like to start with our anchor market, Turkey. So on Page 19, I would like to give you some sense about the market trends and market shares numbers. So as you know that as Ülker, our market share is 37.3%, and we are clear #1 in total contracts in the market. So as Mete Bey has given his view about the market dynamics, so now we have added a new slide about showing the market shares on a monthly basis. So first of all, as we've said, we have -- despite this difficult environment, we have maintained our position in the market. So in biscuit category, we kept our position in the market being #1, with a market share of 41.7%. So as you see in the chart, in the last 2 months, the market share has increased from 39% to 41.5%, which is mainly driven by the new NPD, and also additional sales have positively impacted our market share position.

In chocolate, we are very strong #1. And our market share is 41.5% and which is nearly 3x higher than #2. And we kept our position in the market. And in solid and in cream chocolate, as you see that we have gained market share and increased our position in total chocolate market. And for cake, we have, as Mete Bey mentioned that, we have seen a very strong growth in cake category, with the support of the new products. And we have maintained our position being #2 in total cake category. And as we did in other categories, in the last 2 months, we have gained market share in this category as well.

So NPD is one of our main contributors for our growth and for our maintaining market share. So in total domestic channel, the total contribution of the NPDs is around 15.4%. And on the left side, we are seeing the pictures of our synergy products. And the total contribution of these synergy product is around TRY 300 million as of first half. And we are expecting to reach TRY 600 million revenue at the end of year-end. As you might remember, the total contribution of these synergy products was TRY 516 million last year.

So if we are covering our second quarter's domestic operations financial results, there has been 3.7% volume contraction as of second quarter. And we have a revenue growth around 23%. And our gross profit has dropped around 300 basis points and with the same negative impact to our EBITDA. So as you heard -- as Mete Bey covered in the beginning of the presentation, we are faced with very strong commodity price increases and also packaging increases, which has negatively impacted our profitability in second quarter. But as you might remember that we are very familiar with such challenges, and we are confident that we will be taking [ next ] actions going forward in order to maintain our position and increase our profitability.

We have -- I would like to show you the reality of the market, because after lockdown, especially up to April -- as of April, as Ülker -- we have a growth rate around 10.5% in Turkey. And as you see that in the last 2 months, actually, our growth has reached to around 30%. And in total, we have 15.8% revenue growth. So we believe that this momentum in the second -- in the last 2 months will continue in the following months if the market dynamics would be suitable. For the cumulative figures, actually, we had a volume decline around 9% and which has been mainly driven by the continuous lockdown and shrinkage in the total snacking market. And we have cumulative revenue growth around 15.8%. And due to the additional input cost increases, our total gross profit has declined by 200 basis points, and we have a EBITDA margin around 13% as of June '21.

And in line with our strategy, so we will continue to focus on our branded products, so -- which has not changed. And the total revenue share of the branded products is around 94%. So we will stick to this strategy.

If we are moving to the international operations. Actually, starting from 2016 up to 2018, we have completed 5 successful operations, and these acquisitions have supported us for sustainable growth and gaining market share in all the regions. And we have used these facilities as a production hub for Middle East, North Africa and Central Asia region.

So now I would like to start with our second largest market, Saudi. And so first, I would like to start with our first acquired facility, FMC. So actually, the market -- the COVID impact in Saudi has been much, much worse compared to Turkey. And as you know that due to the addition to COVID impact, the Hajj and Umrah visits have been closed, which has a negative impact to our revenue growth. And in addition to that, the schools were always closed after -- starting COVID. And in addition to VAT increases and also commodity price increases, our profitability have been negatively impacted in our FMC facility. So there has been a volume decline around 8.2%, so which is also driven by the shrinkage of the market, because in Saudi, the total biscuit market has declined around 14.5% in terms of volume, so which has been the main driver of this revenue decline.

And the EBITDA margin has been 12.2%. Actually, our team in Saudi has taken the necessary actions in order to minimizing the gap in terms of revenues and increasing our profitability. They have taken the necessary actions. And also, despite this challenging environment, they were able to maintain their position in the market, because we have very strong brands in Saudi. Our Ülker branch is having [ 15.8% ] market share. And we have our second brand, McVitie's, our total market share has reached to 73.4%, so which 10 percentage point higher than #2. So for conclusion of the Saudi business, actually, for the second half, we are expecting to see better results despite this challenging environment.

For our second facility, IBC, actually, our financial results are similar to last year because the product portfolio of IBC and -- is having a more advantage compared to FMC. So the EBITDA margin has been 26%. And as we did previously, so we will continue to create different synergies in Saudi market and reviewing the cost to serve and also every details in order to increase our profitability.

So for -- if you look -- if you are looking at the trend in profitability in our Saudi factories, so currently, our total combined EBITDA margin is around 18%, so which is a 1.2 percentage point below last year.

So if we are covering our Egypt results. So there has been 11% volume growth in Egypt. However, as you see that our EBITDA has declined around 41% so -- due to the same issues have been in Egypt, so the total biscuit market has declined around 5% in terms of volume. And the main reason of the shrinkage in the profitability is coming from the commodity -- unexpected commodity price increases and also other input cost increases. So like Saudi, our team in Egypt has maintained our position in the market. And they have continued -- despite this difficult environment, they have continued to increase our market share and reaching to 18.5%. So this is the highest market share in our history in Egypt. So in the second half, we are hopeful and positive to regain our profitability going forward.

For UI MENA operations, actually, with strict cost-to-serve initiatives, so we have increased our profitability. Our net sales was similar to last year. However, our EBITDA margin has jumped to around 40%. So I mean, actually, for UI MENA operations, we are not seeing any issues going forward.

So lastly, for our last facility in Kazakhstan, actually, we have [indiscernible] first quarter's webcast meeting. We have explained you the difficulties for our exports to Xinjiang and also other countries due to the border closed by COVID. And now we have achieved these difficulties in second quarter and started to export this region. So for cumulative figures, we have a volume decline around 1.4%, and our net sales is 3% higher from last year. And the EBITDA margin is around 10%. And we believe that in the second half, we will continue to increase our net sales and profitability.

For market share, in Saudi, our market share is around 23.4%, which is 0.9 percentage point lower than last year. And in -- as I mentioned, in biscuit category in Egypt, we have reached to the highest level in terms of market share, and we have gained 0.9 percentage point market share in Egypt. And in Kazakhstan, in chocolate [ countline ] segment, we have gained market share. And currently, our market share is around 13.5%, which is 0.9 percentage point higher than last year.

Like Turkey, we are paying attention for the NPD sales in our international and export markets, and currently, 5 point -- the total contribution of the NPD product is around 5.7% of our total international sales.

So if we are covering the financial results for our export and international operations, so the total volume decline is around 7.4% in the second quarter, and there has been 12% revenue growth. And the gross profit margin is 200 basis points lower than last quarter. And the total second quarter EBITDA has been 16.9%.

For cumulative figures, we have a volume decline around 2.5% and we have 15.6% revenue growth. So this revenue growth is very similar to Turkish market revenue growth. And the gross profit has increased by 9.5%. And we have 5.1% revenue growth in EBITDA level. And the total cumulative EBITDA margin in our international operations has been 19.2%.

So for conclusion, so what I would like to underline is, despite this difficult environment, all necessary actions have been taken. And we are expecting better financial results for the upcoming third quarter and fourth quarter.

Similar to -- focusing on our branded products in international operations. So the total sale of the branded products in our total international operations has been 82%, which is slightly lower than last year.

Now I would like to cover our -- some balance sheet figures. So as Ülker, we don't have net debt. We have a net cash position around TRY 54 million. So in the second quarter, you might remember, we have paid dividend to our shareholders. So despite this payment, we still have net cash position. And last year, after the issuance of Eurobond and syndication loans, we -- our debt structure is long term. And currently, 92% of our total debt structure has been in long-term period. And the net working capital days has increased to 91 days due to the [ Bayram ] period and also summer period and also negative impact to our operations by COVID. But still, we have a very strong free cash flow performance compared to last year. And we have created -- generated TRY 440 million free cash as of second half of the year, which was TRY 64 million last year. So cash is our main priority. So we will continue to focus to create more cash.

So as Ülker, we don't have any FX position -- open position in our balance sheet. And currently, we are long in U.S. dollar and short in euro. Total position is around TRY 1 billion. So if we look our year-end position, this balance was TRY 350 million. So what we can say that, in the first half of the year, we have created TRY 700 million FX-generated cash. So in line with our model as Mete Bey mentioned that we are creating 60% -- 50% EBITDA from our international export operations, which is creating us a natural [ edge ] mechanism. So despite the heavy FX increases, our net income has not been impacted. And additionally, we have created TRY 700 million FX-generated cash as of first of our half.

So as we announced in our first quarter webcast guidance, and now considering all the dynamics in the market, together with our CEO, we have studied and, considering all the market dynamics, so based on our decision, we have decided to revise our guidance. So in terms of net sales, we would like to revise our net sales growth ratio from 15% to 16%. And in terms of EBITDA margin, we are expecting to close the year with 16% EBITDA margin.

Now we have another matter about -- as you remember, we had announced to start the negotiations with Yildiz Holding acquisition of Önem. Now I am leaving the floor for this discussion point to our CEO.

[Mete Buyurgan, executive]

Thank you, Cenker.

So today, we have an important news for you. As you may know that Önem is the most important cocoa, wheat and hazelnut processing company in the region. And on the other hand, Önem is our biggest supplier for many years. So as communicated earlier in June, we are having a strong interest to acquire Önem in order to create more synergy among our operations. And so that we are going to have an opportunity to manage our supply chain process and plant bases. For example, for chocolate, we will have a better competitive advantage through becoming a bean-to-bar chocolate company. And yet, this acquisition is going to support us to increase our EBITDA margin about 2.5%, which makes us more profitable and more stronger than the competition.

Through this acquisition, another important progress will be in our sustainability -- successful sustainability efforts. With this opportunity, we will consolidate our successful sustainability efforts together with Ülker and Önem Gida, which is going to create some unique competitive edge in the region for us. Right now, we are in negotiations with Yildiz Holding, and we are aiming to finalize this acquisition within this month if we will be able to finalize negotiations. So that's news for us -- for you from our side.

So thank you very much. Now we are looking forward to hearing your questions.

[Operator]

[Operator Instructions] We have a first question from Hanzade Kilickiran from JPMorgan.

[Hanzade Kilickiran, analyst]

I have 2 questions. The first one is about your good contracts on the raw material. Can you please, I mean, run over these contracts? Because I remember that your contracts are actually kind of long term. So I'm a bit surprised about the unexpected cost pressure. So I would really appreciate if you can discuss a bit more about the input cost increase and the impact on the margin.

And the second one is about Önem Gida. I don't know if I hear it right, but you mentioned about that it's going to have incremental 2.5% EBITDA margin. So how big is Önem Gida? I mean that's a very sizable EBITDA margin contribution on a consolidated level.

[Mete Buyurgan, executive]

Hanzade, thank you very much for the questions. Let me answer the first question, our positions in our raw materials and others. You are right. We were having a loss position for some of our raw materials, which are basically imported [ ones ]. But of course, as you may know that the crops mainly, basically like palm oil and other oil products are the new crops right now. So we are getting the benefit of the -- our overall positions, long positions, almost starting from last year to this year till to June.

But now the new crop has been started so our -- most of our long positions contracts are over right now. And this is not only because of raw materials, but also packaging materials, because packaging material's part is quite high, almost double higher than raw material price increases. So as you know, this is not -- there is no possibility to have a contract or position for the packaging materials, especially corrugated carton prices all around the world, not only in Turkey, all around the world has been increased very dramatically. And on top of that, in Turkey, and in some other markets, in our some of other markets, there is another multiple impact of FX rates. So those 2 impacts have been negative -- some negative pressures on our profitability.

For the second question, Cenker, you may answer for Önem Gida -- regarding Önem Gida?

[Cenker Uçan, executive]

Actually, so far, I cannot give you about the size and the profitability margin. But I'm sure everyone is waiting for this acquisition. I know that. So that's why we would like to give you a sense about the positive impact this acquisition. So I think, as Mete Bey mentioned, that we are going to conclude this acquisition within this month. But actually, in terms of top line, I mean, we -- in terms of top line, it's not going to create a high level of sales. But since these acquisitions -- since the purchases are made to Önem Gida, it is going to create an additional EBITDA, incremental EBITDA for our new Ülker consolidated figures, so -- which we are expecting it's going to be around 250 basis point improvement to our new consolidated figures. So I mean, due to the sensitivity of this acquisition process, I cannot give you any further details. But as we did previously in our previous acquisition, once the acquisition would be completed, of course, we will inform you in our presentations and giving the all details of this deal.

[Hanzade Kilickiran, analyst]

But your guidance doesn't include the acquisition, right? I mean...

[Cenker Uçan, executive]

Yes, of course. Because in order -- exactly. In order to not creating any confusion, so we would like to talk apple-to-apple. So once the acquisitions will be completed, of course, due to the Önem acquisition, we are going to revise our EBITDA margin profitability for sure.

[Hanzade Kilickiran, analyst]

And I just want to make a follow-up about the raw material cost pressure. So since you are already -- I mean you are already over your probably cocoa and palm oil contracts. What is the total cost increase on the new contracts?

[Cenker Uçan, executive]

Actually, this is also confidential information. I mean, it's a commercial method. But I am sure, if you look to the edible oil price increases in total global market, you can clearly see high jump in terms of commodity prices. But of course, as Mete Bey mentioned, some of these procurements have been secured in second quarter, but some would be in third quarter. So we -- as we did previously, of course, we are managing all these difficulties. But this is the reality, not for our company, this is for sure the same for the whole global players operating in confectionery market.

[Operator]

We have a next question from Daniel [ Vacosolich ] from Barclays.

[Unknown Analyst]

Firstly, could I just ask about market dynamics in Turkey? And what have your competitors been doing in terms of price rises? They've been going through similar price rises. And how has that impacted market share? In particular, you had a dip in market share in April, and then you've since recovered. Is that to do with the timing of the price rises?

And then just on the acquisition, could I get a sense of what proportion of Önem's sales are to Ülker? Because you mentioned it's not really going to add much to your top line. Yes. So if you can just give us a sense of their external sales after the acquisition has gone through.

[Mete Buyurgan, executive]

Thank you, Daniel. This is Mete. Regarding your first question about competition in Turkey, as Cenker presented in our presentation, we keep our market position definitely, for sure -- especially in the last 2 months or 6 weeks, we keep increasing our market share. As you may know that with sharp increases, like prices and others, there is an always reaction by the consumer. And we have lost some market share in May -- in April and May against the [ price levels ]. But afterwards, we covered -- recovered all our loss, and we keep increasing our market share. So this is the same for our competitors in Turkey right now.

In terms of share dynamics, market share dynamics, there is no significant change in the market. So I may say this [ price levels ] have been started to increase, but now they've started to lose back [indiscernible] what they gained in the last 2 months. So that's the overall summary of the markets.

[Cenker Uçan, executive]

For your second question, so I think it's for confirmation purposes. So Önem -- I mean 90%, 95% of total sales of Önem is to Ülker. So there won't be a big revenue impact to our new consolidated figures. But as I mentioned before, Önem EBITDA would be having an incremental impact to our new consolidated profitability.

[Operator]

We have a following question from Cemal Demirtas from Ata Invest.

[Cemal Demirtas, analyst]

My first question is about the competitive environment in your international segment. We see that the volumes declined more significantly in the international side. And despite the TL depreciation, we didn't see much price increases. Could you further elaborate that? Did you see additional competition or just seasonality or specific to the market conditions? That's my first question.

And the second one is about Önem Gida. I think you are planning to complete in a month. Could we assume that you are going to be consolidating by the fourth quarter? Is it highly likely? Or are you going to wait for any competition board's, et cetera, approval for that?

[Mete Buyurgan, executive]

Thank you very much. For international market's competitive environment, as we discussed, we've presented previously that the market conditions are all same for all our competitors. Our main markets in the international market is basically Saudi, Egypt, Kazakhstan. Especially in Saudi, there is a VAT impact on the volumes. This is valid for all the competitors and for all categories of FMCG. In Egypt, there was a slight devaluation as well. But especially, the main impact was COVID-19, definitely, for sure. So because of the lockdowns, school closings, we are basically selling -- [ indulging with ] on-the-go products. So this is one of the biggest challenge for us, to lose our opportunity in terms of this on-the-go segment. But right now, this is getting recovered.

So every month, we are having -- every week, we are -- we can see the observers. We are experiencing better results in other markets as well as this is in Turkey. So -- and the price increases, of course, is another impact, because of the fact that we don't want to lose our margins too much. So we are -- we keep increasing our prices in those markets as well. For example, in Kazakhstan, we keep increasing our market shares. So we are in a very better position versus last year, versus Q1. In the other markets, we are -- we keep our strong position in terms of market share, in Egypt, in Saudi. So this is -- the intake is basically COVID-19 as well as the devaluation as well in those regions. But we are happy to see that we saw a better performance in the last few weeks, which is giving us more potential for the rest of the year.

[Cenker Uçan, executive]

Cemal, for your second question for the acquisition of Önem Gida. Actually, we are now in the due diligence process and working with -- in the independent valuation firm. Actually, I mean, if our lawyers would like to say that to apply competition board, of course, we are going to apply. But our expectation is not making such a application because it is not related. But if it's needed, of course, we will apply.

[Cemal Demirtas, analyst]

And as a follow-up, Cenker, about your guidance on EBITDA. It was -- in first half, it was 15.5% and your guidance is 16%. So could we assume that similar margins for third quarter and fourth quarter? Or should we expect gradual improvements that will average at around 16.5% for the second half of the year? So third quarter and fourth quarter seasonality.

[Cenker Uçan, executive]

Actually, it is going to be dependent on the position of FX. So I mean, this guidance has been given on a cumulative basis. So therefore, as Mete Bey mentioned that all the necessary actions have been taken for our year-end figures. But we will see what we are committing to close the year with 16% -- minimum 16% EBITDA margin profitability.

[Mete Buyurgan, executive]

Cemal Bey, further to Cenker's comments, and also, in many of the countries, vaccination process, vaccination acceleration is going to be a very important dynamic for us in order to increase the volume consumption and school openings in all the region, not only in Turkey, but also in Saudi, in Egypt, in Kazakhstan, CIS countries. This is rather going to be a very strong impact on our volume demand for the rest of the year.

[Operator]

[Operator Instructions] We have no other questions over the phone. Back to you, gentlemen, for the conclusion.

[Mete Buyurgan, executive]

Thank you. Thank you very much for your participation to our call.

So as we discussed, it was a really very tough and challenging year. Of course, the huge pressure -- global pressures on commodity prices, logistics, transportation costs, everything, altogether, giving us such challenge. However, we are familiar with this environment in the -- from the past. So we are confident to reach our targets at the end of the year.

So thank you for your participation again. And let's meet for the next quarter call. Thank you very much.

[Operator]

Thank you. Ladies and gentlemen, this concludes today's webcast call. Thank you all for your participation. You may now disconnect.