Earnings Call: Q2 2019

Aug 9, 2019

Good afternoon, and thank you for waiting. Welcome to Ability Retail Earnings Call for the Q2 of 2019. We have Mr. Fabio Abarache, Financing and Investor Relations Officers for Pedro Pablo and Mr. Carlos Padilla, financing and Investor Relations Manager for LADA, who are here with us today. We suggest you access the company's support presentation atri. Bqw.digital to help you follow this call more closely. We would like to inform you that this call is being recorded and that participants will only be listening to the conference call during the company's presentation. We will then have a Q and A session wherein further instructions will be provided. Should you need help during this conference, The conference call replay will be available after closure for 1 week. Before we proceed, we would like to clarify that statements made during this call regarding BAWS Business Process, projections, operational and financial goals reflect beliefs and premises of the company's Board of Directors and current information available, which are not currently of performance. They involve risks, uncertainties and assumptions as they are related to future events and, therefore, depend on circumstances that may not occur. Investors must understand that general economic outlook, industry conditions and other operational factors may affect the BWST2 performance and lead to results that differ considerably from those expressed in the statements made during this call. We would now like to hand this call over to Mr. Abaci, who will begin the presentation. Mr. Labatchi, you can begin. Good afternoon, ladies and gentlemen. I would like to thank you all for attending this call. I would like to wish you a happy Father's Day and upcoming Sunday. And we will now begin the presentation on Slide 3, where we will show the highlights of this quarter. Total GMV reached €3,900,000,000 with a growth of €21,800,000,000 compared to a 10.8% growth in the market according to EBIT, resulting in a market share gain of 2.7 percent points, going from 27% in the second quarter of 2018 to 29.7% in the Q2 of 2019. Marketplace keeps on growing fast with GMV reaching $2,300,000,000 growing 51.4% and with 58.7 percent participation in total GMV, an increase of 11.5 percent points compared to the Q2 of 2018. In this quarter, 5,500 new sellers were connected in marketplace and we also connected 5,900 sellers in this is the impact, I'm sorry. In Slide 4, cash flow was positive in $6,400,000 in this quarter, the best results over the last 9 years in a second quarter. These results represents a growth of $40,300,000 compared to cash consumption of 33,900,000 dollars recorded in the Q2 of 'eighteen. In this manner, we reiterate our goals for 2019 to achieve positive cash flow. On Slide 5, we would like to highlight the marketplace growth with the GMV of $9,300,000,000 over the last 12 months with a growth of 57.3%. The robust performance of Multipla is a result of the joint efforts of Peugeot Global and sellers to offer the best value proposition for customers. And the second, Pedro DuPage keeps on supporting sellers so that they can keep growing and have their operations growing in a sustainable manner to encourage entrepreneurship and allowing new companies to start. We will now comment on operational highlights for this quarter. On Slide 7, we would like to highlight 50 W marketplace submit that took place in July 2019. This end includes a Tuesday of Immersion in the database of the marketplace universe with more than 100 speakers talking about different topics such as management, selling sales techniques and innovation and others. The summit had more than 6,000 participants among sellers, suppliers, strategic partners and developers Over the course of the event, important novelties were launched, such as O2O for marketplace, app BOE for crowd shipping, drone delivery, American App Lockers and WSW Analytics. Moving on to Slide 8. We will see seller space progression. In the Q2 of 'nineteen, we have expanded the connection of sellers in the platform with a new record of more than 5,500 sellers connected. Since the beginning of this operation, at the end of 2020, EZW connected more than 31,000 sellers. For 2019. We would like to reinforce our goals of reaching more than 40,000 sellers. We would like to highlight that we have very strict selection criteria for sellers in our platform. Reputation and quality of our partners are important factors in evaluation and are in line with our goals of creating the best marketplace in Brazil. In this manner, Pedro Espadrille includes the best sellers in the market in a reliable platform in which customers can purchase the product they want with information about origin and quality. On Slide 9, we would like to highlight the progression of our assortment. Over the last 4 years, we have experienced an exponential growth in products assortment going from $145,000,000 of SKUs in Q2 of 15,000,000 to 12,100,000 of pay terms in the Q2 of 2019. Affordment expansion is a vital pillar of our value generation cycle that consolidates the perception that in our brands, customers can buy everything. Up to the end of 2019, our goal is to achieve more than 20,000,000 SKUs. In line with this strategy in client 10, we would like to highlight the development of Americana Zmondo, a cross border operation from Vero Isabella that allow customers to purchase products from everywhere in the world. It was launched in March 2019. The operation keeps growing fast and already has an assortment of more than 4,500,000 SKUs. The operation also allows the 2W of EcoStafu to be competitive without carrying stock hours in new product categories. The cross border is an opportunity to offer average I can see the lower average ticket with a higher number of transactions and higher frequency of purchase by customers. On Slide 12, we would like to highlight the important initiatives of O2O and Los Angeles Medical Nurse and Businesses Hospital. With the customer of everything, anytime, everywhere, these initiatives are transforming the experience of our customers who now have multiple options of purchase and delivery and can choose the more convenient manner according to their consumption desires. On Slide 13, we would like to highlight the O2O approach, designed by allowing customers to purchase what they want, as they want, where they want, when they want. And on Slide 14, we would like to highlight the progression of O2O over the last 12 months. More than 2,000,000 customers have purchased via the joint initiatives of Losers Americanas and the orders from customers from more than 2,800 cities. The Click and Collect program is when clients purchase online and have the product to stay in a physical store. This program is available in 1 1015 Los Americanas in all states of Brazil. Also, this model is already available in 102 physical stores of sellers in Iberico de Cartier. The Click and Collect button and Click and Collect now allows customers to collect the product and they're in stock in the store for free in up to 1 hour after the online purchase. And this is available in all our 1518 OZYZ Americana stores. Raden Freitas ships on store is when trying to purchase online products that are in the closest largest American stores and purchase products in up to 2 hours. And this program is available in both cities in 82 stores. On Slide 15, we would like to highlight the integration of O2O and marketplace initiatives, transforming sellers, stores and successful fulfillment centers. And this manner, the Click and Collect, Click and Collect Now and Shoot from Store initiatives can be expanded to more than 15,000 physical stores of Baby Double sellers. On Slide 16, we will highlight the launching of Boe, BOA, a protein platform for independent believers. The solution is aimed at accelerating O2O initiatives by connecting different models, which is muscle cycle, bicycles and others, so that delivery can be achieved in up to 2 hours from physical, logical, medical stores and sellers. On Slide 18, we would like to highlight the 3 extension of Rami, I, AMA, which is one of the most important initiatives, which is a mobile business platform that Los Altosamericanos and Digital Digital are developing together. With a little more than 1 year in operation. The Honey app already has more than $3,200,000. Honey has been growing in VW Brands by optimizing discount offers for customers with more purchase recurrence and more spending. On Slide 19, we would like to highlight the past extension of EMEA and the physical work Largos Americanes is on investing in proprietary technology to expand acceptance and improve the purchase experience of clients and their stores. Naomi systems have been growing in a short period of time from 6 stores, pilot stores at the end of 2018 in October to 774 stores at the end of June 2019. Over the course of 2019, Ami will be present in all Los Angeles Americanica's physical stores and in other shopkeepers. On Slide 20, we would like to show the progression of products and services available in Germany. We have highlight for the launchings that occur over the Q2 of 2019. Customers can now buy credits for CapEx and for public transport by recharging BH2 Onico and Visa version. In Visa version, we have also launched a service marketplace, the sale of gift cards, digital gift cards and the possibility to cash out in Los Americanas over the course of the second semester as part of the business plan. And now we will have an incredible road map of novelties that will represent an important contribution for the future of Largest America and the best data. And finally, I would like to give up this opportunity to thank our team for their work and dedication. I would like to thank our supplier for their partnership, Marketplace Dallas for choosing our platform, our market share holders for real trusting us and in particular, our customers for the preference. These were the most important highlights of the Q2 of 2019 regarding our performance. And I would like to open for the Q and A session for clarification of your doubt. We request you to be briefing your comments so that all can participate. Our first question comes from Mr. Bonaventure from My question has to do with AcmeDigital. You did mention about the progress of all the functionalities, what we can weigh going forward. I'd like to have some more color on the services marketplace. I think this will help the company expand its digital portfolio. If you could follow-up a little bit, I'd appreciate it. Thank you. Good afternoon. Thank you for your questions, for participating in our call. Ami has been speeding up its user base. As I mentioned, we already have 3,200,000 downloads in 92 months. And we have been continuously improving the user experience for both, for B2, better than these brands, trying to create a huge exchange through larger Zembe Ricano sites. And Plaza, we are already available at 7 74 stores, as we mentioned. And on top of paying for their purchases, customers can also work with cash in and cash out possibilities directly using the PDV as a point of sale. In line with the strategy of taking the company towards a mobile platform option, we are also spinning up our launches of new functionalities, out of which I could highlight the purchase of ride sharing credit for apps as the cabify example for public transportation, people can load their public transportation cards. In the first half of the year, the service market place also advanced. And we saw the sale of digital based cards and also the possibility of working with cash out at Punta Sur at Laza. So this is just a first step. The platform intends to come across as a broader platform for both merchandise and services, service that can be either financial or not. And in this context of increasing user frequency for the Honey app, we see a big opportunity. And that has been happening through more optimized ways in terms of granting discounts. We have already reached important results in that front with our key functionality, which is the cash back option. In addition to be able to make purchases using the Ami app, we can actually transform that business into something bigger to the next level and include a series of other services and functionality so that Ami could offer possibilities to customers from the time they get up from the bed to the time they go back to bed at night, whatever their needs might be. Another important point about the platform is that we started the year 2019 with a high acceptance beyond our brands, our own brands. And in that respect, we launched a specific solution for merchandise, which has been gaining significant traction in the past few months. And an important landmark for this industry was the definition of the corporate structure that was quite important. So we'll have the creation of the new company in the coming weeks by the end of August. And this will allow us to speed the business plan even further with new partnerships, which are already in a very advanced negotiation phase, just about ready to be implemented. This will be announced in the near future. The next question comes from Thiago Macruz from Itau. Thank you for taking my question. This is Vinicius actually speaking. The results surprised us possibly. And I'd like to have some more color on the work you've been doing around the short mid-1P? What category has increased the most or decreased the most within the 1P? The second question would be about the performance of the app. We saw a very interesting growth in terms of active users for the app. And the question is, have you been analyzing data to identify migration of customers, customers who are now migrating to the app from the Facebook Store? Have you identified the higher frequency of those users using the app? So those are my 2 questions. Thank you. Well, thank you, Vinicius, and thank you for your participation and for your questions as well. As for the results, which were positive, as you mentioned, I think we were able to deliver good results in Q2. We have accelerated total GMV by almost 50%. In other words, growing twice as much as the market did, which was our objective, driven mainly by the growth in marketplace, which grew above 50% and also with a strong contribution of a normalized 1P early on in the winter. As you mentioned, we have been working hard at LUMPM, which has been continuous, ongoing in terms of watching it closely and reviewing assortment issues. And we are now seeing the benefits of that work. When we first migrated back in 2017 from 1P to 3P, So those categories we understood made more sense if used through the marketplace option. From that point on, we started looking at those issues from a more expert point of view and we concentrated the number of categories where we understood was the best option when compared to the sellers option. We have a great relationship with the providers, we have the suppliers. And we are now, as I said, seeing the benefits of all that hard work. And this will be important going forward for the second half of the year where we have our main sales event. Next week, we have aneliconos.com anniversary to celebrate and we have all the indications that it is a very promising event. After that, we have Black Friday, the largest, the most important event of the year and then Christmas. And our platform is running really well, ready to grow. And we are moving strong towards our target of growing at least twice as much as the market in 2019. As for your second question, the app question, we have been increasing our share within the whole of the company. It accounts for something like 75% of the traffic on the Internet, we're talking about the app, and accounts for 50% of all sales. So we see a migration from the URL from the website to the app. And we have been working on it with our developers to make the app easier, more friendly, to navigate and also increasingly lighter. And that's what apps are all about. Once you have the app downloaded in your cell phone, there is a process linked to loyalty, which leads to a higher purchase frequency. So we see a very positive uptrend within this mobile dynamics as a whole within the SW. Okay, that appears. Thank you very much. Next question from Joseph Giordano from JPMorgan. I have 2. The question about the progression of marketplace. We see a very important growth in the number of sellers, and the platform itself has been growing, GMV growing at 50% rate. What I'd like to ask you the following. When you look at this marginal growth, Vericanas Nungu, the JW, does Mericanas Mundu gain relevance? What's the share? What's the stake of Mericanas Mundu in that sale? Also in terms of frequency because we have some categories and some items which are aspirational, which are, which have a ticket, which is quite competitive when compared to the market prices. And the second question about marketplace, I'd like to know about the ecosystem around the Entega option. You've added 3,000 sellers to the platform in the last quarter. I'd like to see how is this going to play out in terms of fulfillment by Bakersfield. When you have a seller with inventory at the distribution center, then you have the whole logistics process to be carried out. How is this going to be playing out going forward? Well, thank you for those questions. As for the first one, yes, you're right, marketplace has been growing quite fast, and we have managed to maintain a growth rate of above 50%. And we expect to maintain that rhythm with that pace in the coming quarters. And that, of course, is driven by the progress of the platform itself. We have managed to attract more sellers, as you mentioned. And we did that in a way that sellers themselves also advance within the platform. We have been offering a series of services. So everything we put together early on for Big Red WN1P today, it can be offered to sellers in the marketplace. Specifically about logistics, which is your second question, we also have all the intelligence, services, advertising. We have our own commercial know how, which is very, very important. The know how we have been acquiring throughout the years in negotiating with suppliers and so on. So now we are bringing sellers around the table to plan sales, plan items, plan SKUs and helping them buy from suppliers as well. So there is not one single factor to explain that effect in the marketplace. It is a sample of a series of initiatives that let us, after 4 years, have a very mature marketplace reaching a number of 9,300,000 BRLs exceeding surpassing other online competitors. As for the cross border option, it is part of our strategy and marketplace. It actually opens up a new avenue for growth and profitability. As you saw, all our initial expectations have been exceeded. We launched it in March. And now by the end of June, we already have 4,500,000 SKUs, out of which 2,000,000 or half were added to the platform in June. So cost per individual is a €12,000,000,000 market, which was dominated by international players. BMW was not part of that market before. And maybe Canas Mundo, as you'll ask, allows us to get into that market in a very competitive way and is very appetite, if you will, and contributing to aspirational categories, as we also mentioned. In particular, those with a lower average ticket will, of course, generate leads to a higher number of transactions and also helps increase purchase frequency on the part of customers. So all those numbers are very positive around the marketplace and also around cross border. So your second question about the BMW Entrega, which is our service logistics service, logistics and distribution service for sellers at the marketplace. So ship to store, numbers have been growing fast. We're talking about 92% of all sellers base, 92% are already using the ship to store or Entega function. And one of the options includes the VW fulfillment, which has been performing quite well. And new sellers now, they already changed level right off the bat because we provide a complete sales solution and that at the end of the day translates in better payment terms. Expedition and shipping happens in a shorter period. We have a priority list in the expedition list and that, of course, results in May lower delivery time. So everybody is happy at the end of the day. Customers, sellers, they sell more at a better service. And at the end of the day, as I said, it's also good for better SWF 4 because we are able to meet all the needs of all the stakeholders in the process. Next question comes from Gustavo Libero from UBS. One additional question, if I may. A question about fulfillment. You did mention performance has been quite positive. Last year, if I recall well, you opened a new distribution center, which was quickly filled. Do you expect a need of additional CapEx on the fulfillment front? And if you could give us an estimate of how much will that entail for 2019 2020? A second follow-up question is about the AME Digital, AME Digital. From what I understood, you said that by the end of August, you'll have a license from a payment entity. And from Vena, you'll be able to give a little bit more detail in terms of revenues, the economic indicators of the business? That I understand. And you did mention we're going to announce something. Are you talking about some strategy for, to fund that operation? And one last question. We've been talking, we haven't been talking a lot about the Prime option, but we realize there's been a consistent growth in prime users. Could you give us some more color on why that is happening? Well, thank you, Gustavo, for your participation and your questions. As for the BW Fulfillment, today we have 11 distribution centers, 200 hubs. When we look at the platform from end to end, we're talking about 15 distribution centers. So we have been trying to strike a balance between what we are carrying over and the distribution centers and also the, we list the breakdown between the different categories of the leaders that we have. So by the end of 2019 and including 2020, as you asked, we do not have, we do not, we do not expect to be opening new distribution centers. As for the A and E app in your second question, As I mentioned in the previous answer, we have given an important step towards changing our corporate structure. So in the coming weeks, a company will be created. We'll have a new corporate identity number and that will unlock a series of new opportunities, which includes an opportunity to request licenses from the Central Bank that can only start once we have a company which is operational, just to clarify your question. As for the funding question, this operation is a lot of BW, 5743, the breakdown of percentage points. All funding needs for ANI will be supported by both companies following their respective stakes. As for your third question about the Prime option, the Prime has been growing throughout the years. It is an operation which started under the Sudmarino brand. It was limited to a few items to a few cities. And then we proceeded to expand to other brands. We include assortment. We included sellers from the marketplace. And you have more learning curve with Prime. And very soon, we hope to be able to announce a positive change in this program. And that's as much as I can tell you right now, but I cannot show it will be good news for the market and for our customers. Okay. So one last question, if I may. Out of those 12,000,000 SKUs that you already have for the end of this year, how much is, of that is covered by Prime? Around 2,000,000 net revenues. Okay. Thank you. Next question is from Hubenkoto Santander. I would like to go back to your previous question about business performance. You've talked a lot, Fabio, about assortment, division, involving categories. But can you give you some examples? I don't really know what has changed between both quarters of this year. Just to clarify, what has changed? And a second question, can you give him an update about Credit Sella, how this is being adopted? What's the size of the portfolio? How it is growing? And I would like to know how it talks to personal loan by Army because they have a credit initiative that may come to be concentrated in Army. And I would like to know what can happen in this area. So could you give us an update? Thank you for your question, Robin. As regards to the payer, I think it's important to understand the movement that happened in 20 17. We, from a deep analysis of the company's assortment with a vision of final contribution margin, including all variables, financial variables, the coming 1P or 3P category. And at that time, we decided to move $2,000,000,000 on I-1B to 3B. So try to do what we understood there will be a better balance in terms of distribution. And this is a process that took our model in 2017, but it's a continuous process of planning. And what we saw between the 1st and the second quarter is that, in fact, we had an adjustment regarding the law of goods, which is an excellent benefit that we had, particularly regarding telephone rather. And this benefit has ended at this beginning of this year, not the 2nd January. We could no longer continue it. And this has had a negative impact of the IT growth in the Q1, but we have done the adjustment that I required in this category. And we've seen an expansion in the second quarter That took us back to growing in terms of total GMV, about more than 20% growth and a very good rhythm in the market. So this is the movement that we had regarding 1P and this is what we have been doing with the help of specialists. As regards to the second question of the credit seller, This is more a solution that we can offer our sellers from the very beginning of marketplace in 2016. We already offered 1 financial product and this was the discount that was given. And over time, we noticed the need of sellers regarding these sort of products, only the discount was no longer enough for sellers to grow within our platform. And this is why we developed Credit Stellar. This operation is going to complete 1 year in the near future and the results have been very surprising. In particular, results that have been helping sellers to sell more. So basically, sellers, you optimize the use of that cash to purchase more merchandise and rather there are sort more of the volume of products that they already operate there, they also end up in promotions, competitive dividends and price. And some of them use this money to invest in structure because as sellers grow, they need to reformulate their structure, they need more people, more training. So basically, these financial resources are for these aims. And what we see is that this is one important point for our revenue and these help us to accelerate marketplace. And sellers are then going to be able to sell more and this is a place on marketplace. We have an analysis done in the 1st year to evaluate the results of sellers that have used this service and comparing to sellers that did not. So we compare bananas and bananas. And those who use the financial benefits have had a sales growth of about 40 points more than those who did not. And this is a very positive result. And obviously, this is an argument that we can use to sell the start ups to sellers, for sellers that didn't have the opportunity to contract the service. Consumer requirements, as you have said, that will be the personal loan within Omni. This credit seller is for companies and personal credit for people through Ami, so we're talking about people. And for us, this is a complementary approach. And another important point is that the expertise that we have gained by acquiring credits for companies that will be is being purchased out of the marketplace. This in the near future will also be directed to measure up earnings. These are complementary approaches using complementary channels, which is very good. This is Fabio. Can you tell me something about the size of the portfolio of credit sellers? This is a very strategic point for us. We're still not disclosing the sort of data. The next question is from Tobias Espiniti, Citibank. The first question, I would like to understand, because you had this better performance that you had in IH1P, what you had the growth of the raw margin and that's something we didn't see over the last year. So this drop of the raw margin in the Q2, is this related to Codadolino, the categories that you have included? Or just, is this just the participation in that, a big greater participation that has decreased at this 3P margin? I would like to understand this sequential drop in the crude margin. And the second question is that you had a good performance as a company, and you have shown that in the second half of the year, the expenditure should drop because at last year, you have started a more robust investment process. And should we really expect this to happen in the second semester of the year? And the third question is about our sellers. Tobias, thank you for your participation. As regards, we have seen an expansion of crude percent crude margins on 2.2 percent points. And we reached a balance between 1p and 3p in the Q1. We had a greater percent progression. We saw that in the first quarter. Marketplace was experiencing greater representativeness with an ultra low GMV. So I think we should think about a nominal process when we have greater participation of 1B. And this has represented €32,000,000 more in the second quarter compared to €9,000,000 dollars of the progression of 2019 compared to 2018. So the effect is what we saw in our expectation over the course of the year. She keep on progressing as regards to company's gross margin. I think I addressed you. The sequential drop is, you had a growth in the year, but this is the first time it dropped sequentially with a marketplace growth. So my read is that 1P is what had the greater impact. Is that am I correct? Yes. You're talking about mix. But I prefer to emphasize that the margin is typically extending in percent basis. And when we analyze the nominal, we have put 33,000,000 more compared to 9,000,000 that was in the first quarter as regards to mix. So it's just that if 1P is improving your 1P performance, so 1P is going to grow and it's going in marketplace. But what I mean is that this gross margin has growth compared to the first 3, is this going to increase again sequentially, this 30.8% will go to whatever figure that is? What I can tell you about the good margin, again, if you observe, compare 2019 and 2018, regardless of the balance that we have between 1Q and 3Q, I think the expectation is to have margin expansion. Okay. Thank you. As regards to your second question, expenditures. We tend to analyze percentage of total GMV. So over the course of the Q1 of 2018, we had higher volume of investments to provide an assortment for customers compared to 2018. Well, this represents 1200% of the total GMV And this has struck over the 2nd semester of 2018 and over the course of the 1st semester of 2019. So it would be 10.2% that we saw last year. Are now less than 9%. So 8.9 to be more precise of what we have communicated, which is the trend of SG and A. This is something that we are really seeing and it's reflecting the extension of EBITDA nominal and EBITDA margin. As regards to your third question, same store sales of sellers, We do not disclose this sort of information, but the results are being very positive as sellers have plenty of opportunities within the VW platform. It takes some time to mature this sort of thing or the things to develop and to understand or have a complete view of the opportunities that are available for operation in a broader scale. And we tend to support sellers in different fronts. And in this manner, we are able to extract over time some value or greater and greater value from sellers that are at stake. So we keep on growing in a very good rhythm in same store sales. And this is a combination, growing more with our previous sellers and connect a larger number of new sellers to our platform. The next question is from Bank of America. Congratulations and thank you for taking my questions. Fabio, just to clarify, how do you expect to escalate the digital as part of your platform? Several competitive efforts, do you expect to have a growth boosted by Boca Boca, greater functionality, financing or a source of resort associated partnerships that will contribute you to Genskale. Thank you for your participation. We have been creating traction in the first moment through earning in what we call Big Does W Brands and also within Losos Americanos. We have more than, a bit more than top notch of operation and our business base is growing fast. The next step is Nuno Acorns, as you have ability and we have several merchants operating with our solution, which is Amit Luz. And since the agreement has been created about 3 weeks ago, we expect to accelerate even more the performance, which includes the expansion to Mondraff French. And as customers in this platform, with the clients in the platform, it's much easier to achieve acceptance by merchants in more restaurants. So we are creating this company, as I have mentioned. We should be ready to start up to the end of August. And we are in an advanced state of negotiation with other partners. So the creation of this company is a hallmark that will help us to accelerate in our entry in more growth. As regard financing, I have talked about it in the previous question. The most important, the insurance companies, our partners, And if we understand it, at some time, it will make sense to accommodate other investors, we will think about it. But the idea is to work, with the perspective of knowledge. We have a lot of good people all around the world working very well with this sort of initiative. And this may come to, might just decide to bring a strategic partner into our business. We'll now close the Q and A session. I'd like to turn the conference back over to Mr. Labracci for his final remarks. Please, Mr. Labracci, you may carry on. I'd like to thank you all for participating in our earnings call. And I'd like to invite you all to the largest Internet festival to party a faster for americanos.com, which will start next Monday, August 13. We will be celebrating 20 years of the brand on the Internet and 90 years of La Jamblicana. If you have any additional questions or comments, our RI team remains available. Thank you and have a nice day, everyone. BPW conference call is now over.