Good morning, everyone. I am Alberto Valdés, Head of Investor Relations. Thank you for joining us for the first half 2026 results presentation. Before we begin, I would like to draw your attention to the disclaimer on Slide 2. Particularly regarding forward-looking statements and market risks. Today's presentation will also include certain non-IFRS metrics that provide a clearer view of our underlying performance. Today's presentation will be led by Martín Tolcachir, our Group CEO, and Guillaume Gras, our Group CFO. After the remarks, we'll open the floor for a Q&A session. I'll now hand things over to Martín. Martín, the floor is yours.
Thank you, Alberto. Good morning, everyone. I am very proud to present what is a truly remarkable set of results for the first six months of the year. These figures validate the strength of our proximity model and the real impact of our strategic plan. DIA Spain consolidates its position as our main engine for growth. It delivered an 11.6% increase in total sales, double the market average, and gained 26 basis points in market share. In the meantime, DIA Argentina is maintaining the stabilization trend that began in the second half of last year and is ready to capitalize on the gradual recovery expected in food consumption. In Spain, our strong sales growth is driving operating leverage. This generates a 17% increase in adjusted EBITDA and an 18% reduction in net financial debt.
At the same time, Argentina's resilient performance and strict financial discipline are protecting its competitive position and self-funding capacity in a stabilizing macroenvironment. Ultimately, our focus remains on delivering long-term value to our shareholders throughout profitable growth, organic expansion, operational excellence and financial discipline. Now, let's look at this in greater detail, starting with DIA Spain on Slide 6 . DIA Spain closed the first half with a total sales growth of 11.6% year-on-year, reaching EUR 2.95 billion. This impressive performance was driven by an 8.4% increase in like-for-like sales and a 3.2% contribution from our organic expansion plan. Most notably, this is a high-quality growth. We achieved a comparable volume increase of 8%, driven by a larger customer base and more visits to our stores. Note that our low-price inflation is driven by change in our product mix and private label penetration rather than any price investment.
We are growing twice as fast as the rest of the market. This allowed us to gain 26 basis points in market share year-on-year, consolidating our position as the fourth largest national player and our leadership in the proximity segment. What is driving this sustained growth momentum is our unique value proposition, as illustrated on Slide 7 . First and foremost is the value of proximity. The neighborhood supermarkets is the most dynamic segment in food retail, and DIA has an unparalleled network of over 2,400 stores. Our compact supermarket format is optimized for convenience, with an average of 450 sq m located within a 10-minute walk for our customers. In this space, we offer a complete and balanced assortment.
A key portion of our more than 5,000 SKUs is dedicated to locally sourced fresh product. Our top-quality private label products are paired with leading brand alternatives, always giving our customers the freedom to choose. In the end, our proposition meets growing consumer demands for time and budget optimization without compromising on quality. This approach has built a very strong base of over 6 million active, loyal customers. Most of them interact with us digitally via our app, which offers a smooth and personalized shopping experience. The numbers speak for themselves. Club members spend more than twice as much as non-members. Our digital channels are the perfect complement to our physical stores. We have one of the fastest e-commerce platforms in the market, with same-day delivery covering 85% of the population.
The success of our customer-centric strategy is clearly seen in the performance of our key products, as shown on Slide 8 . Our focus on locally sourced fresh produce and high-quality, affordable DIA private label products generate a strong 14% sales growth in both categories. In a few words, our fresh produce brings traffic to our stores. Our private label products drive loyalty. Once customers try our brand, they keep coming back. Turning to Slide 9 , you can see how this loyalty translates into our omnichannel performance. The ClubDia customer base continued to grow and now represents 57% of total sales, a 13% increase year-on-year. At the same time, our native online platform achieved a 16% year-on-year growth. This strong performance successfully offset a temporary slowdown in third-party channels. Specifically, sales through the Amazon platform dropped by 23% in the first half.
In this regard, I want to announce a strategic decision. Starting this month, we have ended our partnership agreement with Amazon. This was a pioneer alliance that was key for our early digital transformation. However, at this point, it was limiting the growth of our own platform. By concentrating our online business entirely on our own channels, we will gain efficiency and deliver a better customer experience. We have a clear migration strategy in place, allowing customers to transfer to our own platform while minimizing the impact on revenue. In terms of EBITDA margin, the strategy is clearly beneficial. While we refine our digital model, our physical footprint remains our core growth engine. Turning to Slide 10, let's review our expansion plan. We are leveraging our scalable franchise model to accelerate the rollout of new stores in high-potential locations. Today, franchisees manage 69% of our network in Spain.
They are strategic partners who bring entrepreneurial talent and local customer knowledge to our value chain. We provide the infrastructure, the products, and the logistics. They lead the day-to-day operation in their neighborhoods. This division of role maximizes productivity per store and shared success. Franchisee satisfaction is reflected in an excellent Net Promoter Score of 75. During the first half of the year, we opened 58 supermarkets and closed 10. These 48 net openings nearly double last year's figures, bringing the cumulative net openings to 104 since the launch of the strategic plan last year. We are well on track to meet our goal of opening 100 new stores this year and to reach our medium-term target of 300 stores ahead of schedule. To optimize our logistics, we prioritize high-density regions such as Madrid and Andalusia.
By focusing on neighborhoods and smaller towns, we're able to capitalize on our asset-light model. This expansion contributes over 300 basis points to our sales growth in the first half. Of course, adding more stores means we need a stronger infrastructure to support them. As you can see on Slide 11, operational efficiency is just as important as top-line growth. Last month, we opened our third next-generation logistic platform in León. This 64,000 sq m facility is highly efficient and strategically located. This modern platform supports volume growth, improves operating leverage, and mitigates rising transport costs. We are already building our fourth hub in Málaga, keeping us on track to upgrade six of our logistic platforms by 2029. This commitment to modern and efficient operations goes hand-in-hand with our sustainability goals, as detailed on Slide 12.
Our ESG agenda is closely linked to our corporate strategy, focusing on operational efficiency, inclusivity, and shared value. A key action here is upgrading the refrigeration equipment in our stores to improve energy efficiency and decarbonization. To date, 35% of our store network has been decarbonized. We are also moving forward with our food waste prevention plan and expanding our partnership to promote healthy habits and to bring quality food to where it's needed most. I am proud that our progress is being recognized by independent third parties, highlighted by our 58th position in the prestigious Merco ranking. Now, let's shift to Argentina's performance on Slide 14. Despite a challenging macro environment, the business continued to show great operational resilience. While the year-over-year comparison shows a 4.6% decline in volume, the sequential trend confirms the stabilization trend that began in the second half of last year.
This was supported by a 10-basis point market share gain in like-for-like basis. To understand where we are heading, look at Slide 15. With major subsidy cuts and public sector reduction now complete. The stabilization of Argentina's economy is expected to enable a gradual recovery in food consumption. Moving to Slide 16. DIA Argentina is well-positioned to capitalize on this scenario. We are the clear leader in proximity retail, operating nearly 1,000 stores and holding a 27% market share in Buenos Aires. DIA is a highly recognized brand, ranking number one for value for money. Our private label achieves excellent penetration at 35%, and we have a highly engaged base of over four million loyalty members who generate 68% of total sales. Looking ahead, our strong competitive position and lean cost base should drive operating leverage and cash generation as consumption gradually improves.
I will now hand you over to Guillaume, who will analyze the performance from a financial perspective.
Thank you, Martín, and good morning, everyone. Let's begin by looking at how Spain's commercial success is translating into strong financials on Slide 18. Robust sales is driving operating leverage, generating a 17% increase in adjusted EBITDA up to EUR 160 million. This is a remarkable 30-basis point margin expansion to 6.5%, achieved despite the challenge of rising transport costs.
At the bottom line, DIA Spain's net income rose 6% year-on-year to EUR 51 million, despite the adverse comparative effect of a non-recurring tax benefit of EUR 9 million in the first half of 2025. Excluding this effect, DIA Spain's net income increased by 30%. This strong profitability directly fuels our cash generation, as you can see on Slide 19 . Cash flow from operations reached EUR 172 million. This is a 5% year-on-year increase despite the adverse comparative effect of a one-off tax refund of EUR 33 million in the first half of 2025.
Excluding this effect, DIA Spain's operating cash flow increased by 30%, driven by operating leverage and favorable working capital seasonality at the start of the summer. Most importantly, this strong operating cash flow is fully funding our higher expansion CapEx while allowing us to increase our cash balance by another EUR 45 million. Note that this expansion CapEx is highly disciplined. Our new stores are delivering fast payback periods and a strong return on capital employed, ensuring that our expansion is highly value accretive for shareholders. As a result of this cash generation, on Slide 20 , you can see a significant improvement in our credit profile. DIA Spain's net financial debt dropped by 18% to EUR 206 million. This brings our financial leverage down to a very conservative 0.6 times adjusted EBITDA.
This excellent leverage profile, together with a strong cash balance of EUR 345 million, gives us maximum financial flexibility ahead of the refinancing window, which opens next year. Turning now to the financial performance of DIA Argentina on Slide 21 . You will see that the lower volume translated into a 12% year-on-year sales decline in reporting currency due to a 37% average appreciation of the euro against the peso, more than offsetting food inflation. Still, the strong efficiency measures we implemented successfully protected our adjusted EBITDA, which stood near breakeven with a 30-basis point improvement year-on-year. Finally, on Slide 22 , we show how we are protecting the business self-funding capacity. Strict capital discipline allowed the Argentine business to end the period with a net cash position of EUR 40 million.
We are currently executing a sale and leaseback operation for a logistic platform and some store real estate that will bolster DIA Argentina's net cash position by over EUR 10 million. The business also has access to EUR 75 million in local credit lines, providing an additional liquidity backup. Now, I will hand the floor back to Martín for his closing remarks.
Thank you, Guillaume. To conclude our presentation today, let's consider the closing remarks on Slide 24 before we open the floor to your questions. Our first half results confirm the success of our proximity model and the real impact of our strategic plan. Our sustained growth momentum in Spain is driving operating leverage and strong cash flow generation. This allows us to accelerate our organic expansion plan, moving well ahead of schedule. At the same time, we are protecting DIA Argentina's competitive position and self-funding capacity to capitalize on the gradual recovery expected ahead. The progress of our Growing Everyday strategic plan is more visible today than ever before. Our customers trust us, knowing that we are by their side in every neighborhood and online, making their lives easier. We are continuing to grow profitably, accelerating our organic expansion, and strengthening our operational excellence while maintaining solid financial discipline.
In short, we are building a stronger company every day and creating sustainable long-term value. I would like to express my gratitude to all our teams, suppliers, and franchise network. Thanks to their effort, we are successfully translating our strategic plan into tangible results for our customers, our business, and our shareholders. Thank you for your attention. We are now open to your questions.
Thank you all for your attention. The Q&A session is now about to begin. To ask a question over the phone, please press the asterisk, then the number five on your telephone keypad. As a shareholder, you may also submit questions through the red button on your webcast screen. Once we have verified your ownership, we will answer your question. If we are unable to do so during the session, we will respond directly to your email address. Questions received from analysts covering our stock will be addressed first. Thank you. All right. We have the first question coming from Luis Colaço from JB Capital. Luis, please go ahead. It seems Luis is having some problems with the line. If there is any other question, please press the asterisk followed by five on your telephone keypad. The next question comes from Juan Rios from Banco Santander. Juan, please go ahead.
Good morning, team. I don't know if you can hear me because I am facing some problems as well. But anyway-
We are hearing you, Juan.
on the impressive performance in Spain and two questions from my side. First, in terms of openings, you are already very close to the guidance for the year. I wonder which will be the pace of openings for the remaining of the year. Also, if you can maybe provide some details on the economics of these newer stores. My second question is that this strong pace of openings, along with the strong top-line growth that you are seeing in Spain, makes the current strategic plan to look a bit conservative. Are you then planning to maybe update this plan at some point this year? Thanks.
All right. Thank you, Juan. Very good questions. The first one regarding our store expansion plan, maybe it's a good question for Guillaume. Your second question regarding the potential upgrade of our strategic plan is maybe better for Martín. Guillaume, when you're ready.
Yes. Thank you, Alberto. We've opened 58 stores during the first semester. As announced, we plan to open 100 net store this year, representing a 78% year-on-year increase. In term of CapEx, this represents a total EUR 100 million invested CapEx in the first semester, all included, not only inspection. For the rest of the year, we plan the same amount of CapEx. Remember that this CapEx is fully financed by our operating cash flow, enabling us to maintain low financial leverage throughout our strategic plan.
Very clear, Guillaume. Thank you. Martín, can you answer the second question regarding the potential upgrade of the strategic plan?
Sure. Thank you, Juan, for your question. In fact, our strategic plan was launched just one year ago. Right now, our priority remains focused on discipline, execution, and building on consistent track record with the market. That being said, we are indeed accelerating the rollout of our store expansion, targeting, as Guillaume said, over 100 new stores opening this year. At our current run rate, we are effectively on track to reach our expansion goals well ahead of schedule. As we progress into 2027, we will have the sufficient visibility to assess a potential upward revision of our midterm targets.
Very clear. Thank you, Martín. I think Luis has been able to connect again. Luis, please go ahead with your questions. No, it seems not. Luis, please keep on trying, and we'll try to help your problems. There is another question coming from Pablo Fernández from Renta 4. Pablo, please go ahead.
Hi again. Can you hear me?
I can hear you now. Thank you, Pablo.
I'm having some issues with the line. I'm going to write the questions. Sorry.
We can hear you now, Pablo. Please, go ahead with your question. All right. It looks like we're having some trouble with the telephone line. Fortunately, analysts are sending me the questions via WhatsApp. Well, we have several questions. We've got one from Marisa Mazo from GVC Gaesco. She's asking about the potential of debt refinancing, how much would be the saving potential, and also what date are we considering for this. I think it's a suitable question for Guillaume. Guillaume, when you're ready, please.
Yes. As you know, the syndicated facility we signed in 2024 includes a standard two-year no-call protection secured by Make-Whole provisions. However, starting in 2027, the Make-Whole expires and the call premium gradually steps down, so that gives us the flexibility to refinance when the conditions are right. Ultimately, our goal is to align our cost of debt with the group's strong credit profile, reducing our interest expense and regaining flexibility over our capital allocation.
Thank you very much, Guillaume. Very clear. We have another question coming from Marisa regarding Argentina's net cash position and about the reduction in EUR 20 million of this cash position during the first half, and our prospects for the business remaining self-funded. This is another question, I think, for Guillaume. Guillaume, when you're ready, please.
The EUR 10 million in fixed asset classified as held for sale in Argentina correspond to a warehouse and select store real estate. We are currently structuring a sale and leaseback transaction for these assets. As you know, DIA Argentina closed the first half with a net cash position of EUR 40 million. Looking ahead, the proceed from this transaction, combined with the expected positive working capital inflow and our strict financial discipline, should further strengthen our net cash position by year-end.
Very clear, Guillaume. Thank you. We have two final questions from Marisa. First, regarding the deferred tax assets in Spain, if you could update us on how much is left to be accounted. Also, regarding the working capital in Spain. When you're ready, Guillaume.
Regarding the income tax, as guided, the effective tax rate of DIA Spain in the first semester was below 20%. Our effective tax rate should remain below 20% in the medium to long term. DIA Spain still has deferred tax asset totaling almost EUR 200 million pending activation that will not expire. We plan to activate this asset progressively over the coming years, which will result in an effective tax rate below the 20%. Now, regarding the second point about the working capital change. The positive working capital seasonality of DIA Spain at the start of the summer resulted in a EUR 41 million inflow in the first semester. We expect the strong working capital inflow in the first half of the year to be partially offset in the second half due to the same seasonality effect.
In any case, we expect to close the year with a net working capital inflow due to higher year-on-year sales.
Thank you very much, Guillaume. Very clear answers. We have also received questions from Bruno, from CaixaBank. The first one is regarding the margin expansion in the first half. If we can provide more color on the building blocks for DIA Spain. I think this is a good question for Martín. Maybe when you're ready, Martín, please.
Sure. In H1 2026 in Spain, our gross margin experienced a 20 basis point decline. It is important to know that this was entirely driven by a mixed effect resulting from the growing penetration of our franchise operating stores. As a reminder, while our franchise model is mechanically dilutive at the gross margin level because we share that profit with our partners, it is highly accretive at the EBITDA level. This is clearly reflected in our adjusted EBITDA margin, which reached 6.5% in the first half, a significant 30 basis point expansion. This remarkable performance was driven by a strong operating leverage and rigorous cost discipline, completely offsetting the headwinds from rising transportation cost.
Thank you, Martín. Very clear answer. We have a follow-up from Bruno regarding like-for-like growth. He's praising our impressive performance in the second quarter, despite the context of rising transport costs. He asked about our low-price inflation and also about our margin prospects for the second half of the year, regarding the pressures in the transport costs. Martín, please, when you're ready.
Yes. In terms of gross margin, looking ahead to second semester 2026, while we do not provide guidance, we are mindful that the energy and raw materials inflation could influence the exact base of our margin expansion. In any case, we expect to continue our margin improvement trajectory, keeping us on track to reach our target of exceeding 7.5% by 2029 at adjusted EBITDA level. In terms of sales growth. Yes. Effectively, our growth was based in volume steps. You have seen we have small level of price increase. Our internal price inflation was just 0.4% in the first semester. This was 2.2 lower than the general food and beverage inflation rate. Especially, this is based on a higher private label penetration, and it doesn't connect with any price investment.
Super clear, Martín. Thank you very much. We have a final question from Bruno, from CaixaBank. He asks if we can detail on the one-off costs for more than EUR 10 million in the second quarter alone. If we can detail them, precisely the advisory fees, what is it related to, and how do we see these one-offs through the end of the year? I think it's very good questions for Guillaume. Guillaume, when you're ready, please.
Yes. Indeed, the year-on-year increase in restructuring costs is primarily driven by one-off expenses, which have no impact on underlying performance. This comprise EUR 4 million relating to the termination of the Amazon partnership and the transfer of the León warehouse, as well as EUR 5 million in advisory fees for strategic evaluation that have not materialized. These fees relate to several due diligence processes that were shelved after our capital allocation criteria were applied and to ensure long-term shareholder value. Looking ahead, we expect non-recurring expenses to be mainly driven by accruals for the long-term employee incentive plan. This plan accounted for an expense of EUR 6 million in the first half of the year.
Very clear, Guillaume. Thank you. We just received a final question from Bruno regarding Argentina. He says, "A great restructuring execution, but it's still partly a financial project that deviates investors' focus from the terrific performance in Spain. Do you still believe that not having Argentina on the sale pipeline is more value accretive for shareholders versus selling now, even at a depressed price, and focus financial chest and rerated stock to reinforce the business plan in Spain and possibly accelerate the expansion plan?" There's a very good question, Bruno. Thank you. This one is for Martín. Martín, please, when you're ready.
Thank you, Bruno, for this question. I will say that DIA is today a standalone asset operating a unique proximity platform with a strong brand equity and a leading loyalty program that is navigating clearly an economy that is currently in a challenging situation, but on its path to stabilization. All I can tell you is that the company's priority today remains focused on strengthening its competitive position and keeping this asset as a self-funded business.
Thank you, Martín. Very clear. Let's shift to more questions coming from Juan from Banco Santander. He says, "I have two questions from my side. The first one." We already addressed this one regarding openings. Sorry. Let's continue with Luis Colaço from JB Capital. He's asking, "Given a strong like-for-like performance in Spain last year and in the first half of this year, the 3%-4% like-for-like sales growth guidance appear conservative. Is there any update on the guidance?" His second question is regarding the margin expansion achieved in the first half of the year regarding our expectations for the second half of the year, and I think it has already been addressed. If you can answer the first one, Martín, regarding the possibility to update our guidance.
Sure. Luis, happy that finally you could connect your questions. Thank you for that. I will repeat a little bit what has been said in terms of the refresh of our targets in term of expansion. Today, clearly, we are, I will say, ahead of schedule in general about what we have communicated in our strategic plan, but it was just one year ago. As we progress into 2027, we will have the sufficient visibility to assess potential upward revision on our midterm targets.
Thank you, Martín. We have several questions from Francisco Riquel from Alantra. He ask about like-for-like sales growth in Spain. It's moving even faster in Q2, which is quite impressive, and mainly volume driven and with a low-price inflation. He asks about how sustainable do you think these trends are into the second half of the year and also in the midterm? Very good question, Paco, regarding the sustainability of our momentum. Martín, can you answer this one, please?
Sure. Also, thank you for this question. Absolutely. Our 11.6% sales growth in Spain during the first half was not just strong, was really exceptionally healthy. It was almost entirely driven by higher volumes and fueled by an expanding customer base and higher visit frequency that show a real health of our business. What is really important is, and it's the direction of the question, is how sustainable this growth is. Looking ahead, we really believe that we will continue to lead the market in this profitable growth, supported basically by six structural drivers. The first one is the value of proximity. Consumers want to save time and money, and shopping more frequently to strictly manage their budget. This trend heavily favor proximity supermarkets, as evidenced by the near 200-basis-point market share shift from hypermarkets to supermarkets over the last three years.
The second point is the private label penetration. The competitiveness of private label in Spain has driven a market-wide share gain of over 300 basis points in three years. At DIA, our private label penetration grew by 190 basis points only in the first half, reaching 61%, which translate to a 14% sales growth in this category alone. The third element is capturing fresh and convenience. The traditional trade has lost over 300 basis points of share to modern retail, due basically to pricing gaps. Additionally, prepared meals are growing at a 5% annual rate, four times faster than other categories. We are actively capturing this. Our fresh produce penetration rose now to 29.4% in the first half, delivering 14% sales growth. The fourth structural element is the closing the brand gap perception in DIA. This is really strategic for us.
While almost 90% of consumers know DIA, only 40% are active customers. This 50-point gap is tied to a legacy perception of our old stores. Whereas our peers operate with a gap below 30 points. Our recent brand campaign are successfully closing this perception gap. The upside is massive. Converting just a fraction of that dormant awareness will exponentially grow our active customer base. Fifth element is the Club DIA multiplier. We have now around 6 million active customers, 60% of whom use the app. A loyal customer spends twice as much as non-members. We were able to expand this highly profitable base by almost 9% over the last 12 months. Our goal is to add 1 million more by the end of our strategic plan. Finally, I will also point to our expansion plan.
Our pipeline of 300 net store openings over the next five years represents a 2.5% annual growth in retail space, 100 basis points above the market average, projecting a structural mechanical boost to our top line. What is really important for me is that all these drivers are structural and reflect lasting changes in customer behaviors.
Well, that is a very good answer, and Martín, thank you so much. Paco has another question that has been already partially answered, at least, regarding our debt. He says: I understand there is a window to refinance your debt in 2027. Could you comment about your plans here, and what would be the potential conditions and timing of the new financing? Guillaume, this is a question for you.
Yes. We are currently assessing the optimal financial structure. It is premature to share specific terms today as all options remain open. However, given our strong operating performance and solid credit metrics, we expect a material reduction in our annual interest expense.
Thank you, Guillaume. We have more questions coming from Pablo Fernández from Renta 4. He says: Well, following the recent press reports in Argentina, do you still consider the business in the country to be a core asset, or are you exploring the possibility of a disposal? I think this question has already been addressed by Martín. He also ask about the assets held for sale in Argentina, which has also been answered by Guillaume, and also about our expectations for working capital and CapEx in Argentina during the second half of the year. This is a question for Guillaume.
Well, regarding the working capital in the first half, first of all, in Argentina, the dynamics are completely in line with our standard seasonal patterns. In the first half, the usual seasonal fluctuations in inventory result in a modest outflow of EUR 2 million. However, as we look to the second half of the year, this trend naturally reverses with the peak summer campaign. We expect to close the full year with a net working capital inflow driven by the expected year-on-year sales growth. Regarding CapEx, in the first half of this year, DIA Argentina's net CapEx stood at EUR 8 million, allocated strictly for targeted maintenance. For the second semester, we will maintain this financial discipline. We anticipate a similar level of CapEx as for the first half, reflecting our selective approach here to capital allocation in the current macroenvironment.
Very clear, Guillaume. There are no more questions from our analysts. We do have two questions from the webcast. The first one coming from a shareholder, Manuel Unzué, who's asking, "Could you please comment on the partnership with BP? Because to date, we know that has been provided." This is a good question for Martín.
Sure. As we have already communicated, we have signed an agreement with BP to open DIA stores in some of their service stations across Spain. This agreement will allow us to use BP's prime locations to expand our store network beyond the 300 new stores set out in our strategic plan. This will benefit for both DIA and BP customers, who will enjoy cross-promotions and discounts, combining the two company's services and customer bases. Just to update you where we are, we are currently testing what we did with a few operating stores in Madrid. If this is successful, we could consider a broader rollout across Spain starting next year.
Very clear. Thank you, Martín. We have a final question from Fernando Unzué. He asks, "In your opinion, what is the potential of our share price? Why is the stock price failing to meet the consensus target price, which is displayed on the company's website? And what is the rationale behind it?" This question is for Guillaume, I think.
Thank you, Alberto. Well, for compliance reasons, we cannot provide any guidance regarding our share price. Of course, we are pleased to see that the market begins to reflect our solid operating performance. As you rightly point out, we are still trading at a significant discount to the current analyst consensus target price of EUR 51 per share. We believe that this highlights a clear fundamental upside, which is anchored through five elements. One is our unique business model, which delivers sustainable competitive advantages. Two, an organic growth that consistently outperforms the broader market. Three, with an average profitability above the industry. Four, with a robust cash flow generation, and five, with a rapidly de-risked and low-leverage balance sheet. We believe, and what we are doing now to help to close this valuation gap, we have enhanced our investor relation outreach.
Our goal is to broaden our investor base, building long-term relationships, and ensure the market fully understands our track record of delivering on our value creation commitments.
Super clear, Guillaume. Thank you very much. There are no further questions from the webcast. If you require further clarification, please contact us through the investor relations department. You'll find our details on the last page of the presentation or on our website. Thank you very much for your attention. We wish you a very nice summer and look forward to connecting with you again at our annual results presentation. Thank you.