Earnings Call: Q4 2024

Mar 28, 2025

Summary

FY24 revenue rose 33% to EGP 16.1bn, while EBITDA margin fell to 15.7% amid inflation, devaluation, and repricing. FY25 revenue is guided up ~31%, with gradual volume recovery and regional expansion planned.

Hello, everyone, and sorry again for the delay. This is Mirna Maher from EFG Hermes, and welcome to Edita's fourth quarter 2024 results conference call. I am pleased to be joined today by Hani Berzi, Group Chairman and CEO, Sameh Naguib, CFO, and Menna Shams El Din, Chief Investment Officer. We will first start with a quick update from management, and then we will open the floor for the Q&A session. Hani, please go ahead. Thank you, Mirna, and apology once again for the delay. Good afternoon, ladies and gentlemen, and thank you for joining our full year 2024 result call. Once again, I would like to extend my gratitude to Mirna Maher from EFG Hermes for hosting today's call. Joining with me today is Sameh Naguib, our Deputy CEO, Menna Shams El Din, Chief Investment Officer and Corporate Affairs, and Ahmed Samy, CEO of Edita Food Industries Business Unit. We have closed another year with revenue record-breaking and operational achievement. I am very pleased with our ability to excel and deliver on our strategy in a challenging economic environment. One of the key factors behind our success was our ability to respond to shifting market dynamic. Revenue growth was driven primarily by strategic repricing initiative in response to devaluation of the Egyptian pound and the consequent inflation. Inflationary pressure had passed significant economic challenges and surge in costs. We were able to successfully navigate the environment through prudent pricing adjustment and by effectively leveraging our FX resources. Our business model is agile and continuously adapt to the evolving landscape, ensuring our pricing mechanisms are aligned to fluctuating cost structures. Delving into the number, Edita recorded revenue of EGP 16.1 billion, up by 33.2% year-on-year in 2024. At the net profit level, the company generated EGP 1.4 billion with a net profit margin of 8.8% for the year. The cake segment remained our largest revenue contributor, accounting for over 50% of the year's revenue. We are seeing strong migration in the segment or higher price point, which will support long-term profitability. In the bakery segment, we repriced our portfolio aggressively, with the highest price point now reaching EGP 20. We are actively working on increasing volume within the segment and expect to see a recovery post-Ramadan, which is typically a slow season for snack food product. Our smaller but high potential segment also demonstrated remarkable growth during the year. The wafer segment grew 60.8% year-on-year, supported by chocolate substitution. The candy segment posted an impressive 57.6% year-on-year growth, driven by both a surge in volume and price increases. Finally, the biscuit segment more than doubled its revenue year-on-year. This year, we expanded further in the multi-billion category by launching the plain biscuit sub-segment. We aim to capture a bigger portion of this segment, which is sizable relative to low to total biscuit market. Moving forward, we will continue driving revenue growth and profitability across our portfolio. We are continually expanding our capacity and investing in our distribution channel to enhance penetration within key segments, expanding into new revenue streams by starting third-party distribution. Shifting focus to the regional front, our net export sales significantly increased year-on-year and now contributed 9.7% of total revenue for the year. Edita Morocco continued to deliver good results supported by restructured distribution network. Edita Morocco now also serves as an export hub for us into West African market, and our first shipment to Mauritania was completed in November last year. Earlier this year, we signed an agreement to acquire 49% of Tuama Jebur Abbas in Baghdad, a local family-owned manufacturer. Iraq is one of the region's most promising and high-growth market, and we are delighted to have fast entry into an extremely under-served market that luckily we already have brand equity and strong presence in Iraq. Iraq is one of our main export market with an operational facility equipped with three production line. We are eager to begin operation in the second half of the year in what will be our second offshore facility. We also plan to add a new bakery line by quarter three 2025. Looking ahead, I am optimistic with inflationary pressure expected to come down in second quarter 2025. We are going to go through a more stable environment with real income improvement reflecting on consumer purchasing power. Our strategic priorities remain focused on portfolio diversification into new revenue streams, operational efficiency, and regional expansion. Our proactive approach, market leadership, and focus on providing high-demand products alongside our diversification and expansionary strategy position us well for sustained growth and profitability. With that, I will conclude my remarks and hand the call over to Sameh, who will walk you through the numbers before we open the call to question. Thank you very much. Sameh, please take the lead. Thank you, Hani. Ladies and gentlemen, let's review the main highlights of Edita's results in 2024. Our revenues reached EGP 16.1 billion, a 33% increase compared to 2023. This impressive growth was driven by price adjustments. The average price per pack rose by 38% year-on-year to EGP 4.2, and we sold 3.8 billion packs during the year. In terms of segment performance, the cake segment led our revenue growth with a 37% year-on-year increase, driven primarily by a 43% year-on-year rise in the average price per pack. This was followed by the bakery segment, which grew by 14% year-on-year, supported by a 43% year-on-year increase in average price. Moving to the gross profit, we saw a 25% year-on-year growth to EGP 4.9 billion. Our margins remained solid at 30.4% despite the highly inflationary environment and a series of devaluations which continue to push up direct material costs. SG&A expenses as a percentage of sales edged up to 16.1% from 14.8% due to our ongoing expansion efforts. EBITDA grew by 7.3% year-on-year, reaching EGP 2.5 billion, with a margin of 15.7% compared to 19.5% in 2023. We achieved a net profit of EGP 1.4 billion with a net profit margin of 9%. Our balance sheet remains robust with cash reserves of approximately EGP 1.3 billion as of December 2024. Total loans and borrowings stood at EGP 3.5 billion, up from EGP 2 billion at the end of 2023. Our net debt to equity as of December 31st, 2024 stood at 0.55 times, coming from 0.2 times. Edita secured new debt facilities during the year, including a long-term EGP 990 million loan from Banque Misr to support the company's growth and expansion initiatives. Currently, 50% of our total debt is denominated in foreign currency and 50% in Egyptian pounds. This includes USD-denominated facilities and a loan from the IFC secured in October 2023 for a total value of $45 million, of which $10 million has been used for debt repayment. Our CapEx for the year amounted to EGP 1.2 billion, primarily driven by expansion-related investments in the cake and bakery production lines, followed by expenses for our fleet distribution fleet. This concludes our review of Edita's performance for 2024, and we can open the floor for discussions. Mirna, please open the floor. Thank you. Thank you. If you'd like to ask a question, please use the raise hand function, or you can type your question in the Q&A chat. We have a couple of questions in the chat from Omar. Could you please provide an outlook on EBITDA margin for the next two to three years, and do you have a long-term target over the next five years? Tamer, can you shed some light here? I think in 2023, our EBITDA margin stood at 19%. 2024, with the continuous devaluation and significant pressure on the operation, we dropped to 15.7%. We plan to regain our 19% within three years, growing probably around 1.2% every year to reach back 19%, which was the same case in 2016 after the devaluation, where we dropped from 20% to, I think, 15%, and we managed throughout 2017, 2018, 2019 to regain our EBITDA margin. Thank you. Thank you. The next question is, can you provide an outlook on SG&A costs and guidance as a percentage of revenue or in absolute terms for 2025 and in the long term? Tamer? I think the SG&A cost, we are planning for 2025 to be in the range of 18%-19% and start declining this percentage to 16% in the years to follow. Thank you. We will take the next question from the line of Sergey. Please unmute yourself. We cannot hear the question, actually. Sergey, we cannot hear you. Sergey, if you want, you can type your question in the Q&A chat because we cannot hear you. We will take the next question in the chat also from Omar. Are there any expansion plans organically or inorganically in Egypt or regionally? And what would be the investment criteria in terms of size and IRR? Yes, we will always be looking at expansion organically or unorganically in Egypt. Egypt will always remain our focus market, it is the biggest market in the region, and we are very well positioned there. And we are continuously looking at opportunity, but nothing that we can share at this moment or something solid. On regional front, yes, we are in the strategy that we have put for the year 2027. We have set a target to be present in two additional territory, in addition to Morocco, of course. We have already signed one for Iraq, and we are working very thoroughly to achieve a second territory in the region also, because we do believe that we need to empower and cement further our revenue stream in USD from the region, especially in territories where we had already good presence, like Iraq, where we had very solid export there. Due to some restriction from the Iraqi part, they have stopped importation of some goods to Iraq. And I am very happy with the quick and fast move that we have done in order to recuperate back our market in Iraq by this investment we have done. Thank you. Thank you. The next question is on your dividend policy. What is the policy in the medium to long term, and do you see room to materially increase the payout ratio? No, the same strategy we always had. What we always have done over the past years is to distribute 50% of the realized profit every year to distribute to shareholder. This will eventually continue along the way. Thank you. Thank you. The next question is, could you provide a volume and price guidance for 2025? Ahmed Samy, would you like to take the lead here? Oh. Thank you, Hani. Actually, when it comes to volume, definitely as a reaction to the significant price increases that have been witnessed in the market, we are expecting to have a single-digit drop in volumes. However, when it comes to top line, it is expected to increase significantly in reaction, again, to the increase in average price points. When it comes to the revenue, we are expecting to have an increase of almost 31% in terms of revenues as a total top line. Again, as I mentioned, this is mainly a reaction to the increase on average price points, the introduction of new offerings and propositions across all categories at higher price points than the previous ones we had. This is meant to offset the impact of drop in volume that is witnessed across the whole macro snacks market in reaction to the price increase. Thank you. Thank you, Ahmed. Thank you. We have a related question from Sergey. The volumes have been dropping in the cake and croissant, and volume drops accelerated in Q4. Why is that, and what is your expectation for volumes for 2025? How much room do you have to raise prices? Okay, Ahmed, would you like to take the lead? Thank you, Hani. Yeah, definitely, as I just mentioned, we had a drop when it comes to the croissant and bakery in terms of volume. This drop was more significant within the bakery segment due to the fact that we exited from very strategic price points, which is, for example, the EGP 3 when it comes to the bakery segment. This has entailed a drop in volume of almost 20%. However, when it comes to the cakes category, the volume drop was less significant. It is around 4%, and this is due to the fact that we were able to sustain our price points across the different brands within this category. So we did not bump any of the price points that we had or the entry price points that we had previously. So it showed a more solid performance in terms of volume, and the drop was only 4%. Again, excuse me. Again, the increase in revenue on cakes was 37%, and here it is actually the impact of introducing new price points such as the EGP 10 across the different brands. For the bakery segment, as Hani has previously mentioned, we also introduced new price points such as the 15 and 20 EGP, which are growing in volume significantly month after month, and we are expecting that they will offset any drop in volume in the coming future. In addition to the fact that throughout the past month, we have seen that we are witnessing certain volume recovery, and this will continue to happen till the end of 2025. So we will see the recovery throughout the year very significant, and especially after the Ramadan, or post-Ramadan, after Eid, and because this is the normal low season for the macro snacking. We are very optimistic that this will also be reflected on other categories other than cakes and bakes as well. Thank you. Thank you. If you can provide guidance on the expected volume recovery in the cake segment for 2025. Okay. Ahmed, go ahead whenever you're ready. Okay. When it comes to the recovery in volume per piece, we are expecting that it will drop to around 2% in terms of volume drop versus the 4% that we had in the previous year. This will be reflected also in other categories going forward, that you will see that the volume drop will continue on getting less and less as we progress within 2025. I also, if you allow me, Ahmed, I also believe that the market will stabilize now that we see the inflation dropping. We have seen the inflation dropping to 12.4% last month. I think the market will stabilize. For sure, we have been very aggressive in pricing in order to at least try to maintain our bottom line, which despite that, has been affected. I have to say that we did not want to move in price increase post the devaluation. We want to give some time to understand the dynamics of the market before we do so. That is why, like you rightly asked, why the volume dropped in Q3 and Q4, is because we have started implementing those price increases. Eventually, like we have previously seen with aggressive devaluation, like the one we have witnessed, the market response is always defensive and that we lose a portion of our consumer. Nevertheless, as Ahmed said, we are expecting post-Ramadan, after we have adjusted all our portfolio, and hopefully we do not see further aggressive devaluation, which hopefully will not happen again. Things will stabilize, and we will start recovering volume slowly. Thank you. Thank you. The next question is, what would you highlight as the biggest risks for the next two years? That's a good question, but I don't know exactly what would be the two big risks. Personally, on company level, I don't see any risk. On country level, again, I don't see any risk. I think we are, on the economic side, we are on the right track. We got another revision from the World Bank that it was approved. One risk that I would see, if you want me to be honest, is what was declared today about some reforms on the VAT tax and try to normalize all VAT to 14%. That could have an impact on our portfolio, definitely, because we are in the bracket of 5%. Yet, that's a risk, but I don't know how it will be tackled, and I don't know what legislation will come out for. Apart from that, I don't see anything that can affect our business. Thank you. Thank you. The next question is from Sultan Al-Shalan. How would the 30% increase in sales translate to bottom line? Do you expect any headwinds related to raw materials and other expenses in 2025? Sameh, you want to tackle this question? I think we were just speaking at the beginning of this call about the improvement on our EBITDA margin, and that we should be growing by an additional 1.1 average percent every year. The 30% top line would translate to somewhere around 40% on EBITDA level, 37%-40% on the EBITDA level. On net profit, it could go a bit higher with expectations of the interest rates dropping as well. Thank you. We have a couple of questions on CapEx. What is your guidance for 2025 and for the next three to five years? What is the expected split in CapEx between local and regional markets? Okay, next year, current CapEx, including some overflow of existing projects in 2024, would amount to EGP 1.2 billion. Most of this CapEx is for the local market in Egypt. Additionally, we will still need to reflect on top of this EGP 1.2 billion required investments for the Iraq project, which would be around $8 million for 2025. Going forward, we expect to have a similar split of around EGP 1 billion, mostly in capacity expansion in the Egyptian market, and around $10 million-$15 million for the regional expansion. Okay? Thank you. The next question is, have the aggressive repricing exercises led to market share losses at any of your segments? Ahmed, can you take the lead in this question, please? Yeah, sure. Definitely, it was slightly reflected on market share, especially due to two main factors. First of all, if we recall during the volatility time that was witnessed in early Q1 2024, a lot of the main players within the macro snack segments were not able to source raw materials. Now, with the stability that was established in the market, we see these players going back to the market, and we see that their offerings have started to be reintroduced to the market. So this will have an impact on one side. The drop in volume was definitely reflected somehow on market shares. However, we still maintain our dominance when it comes to the cakes category with almost 64% market share. In bakery, we have 54.3% in terms of market share, and in wafers, it is 15.4. In salty snacks here, we saw a more significant drop, reaching 45% in terms of market share, and this was again due to the fact that we exited certain entry price points. However, in the following year, the readings we see that this drop has been recovering with the introduction of additional and new higher price points. When it comes to candies, we reached 8.4% market share, and in biscuits, which is still definitely a new segment that we introduced, we are still below 2%, but we are growing this as we go because, as I mentioned, this is a newly introduced segment. Across at least five out of the six categories that we operate in, we still have leadership over these segments, and we are still maintaining this leadership despite minimal drops across each and every segment as a reflection for the different pricing resets, excuse me, that we conducted. This is definitely going forward, we are expecting to see a rebound for these market shares as a reaction to the newly introduced price points, which were not yet reflected in market shares within the census of very clear vote. Thank you. Thank you. The next question is, what is the strategy for maintaining working capital in the near term? Just to clarify, are you putting a pause to price increases to support volume growth? Talking about working capital, on the receivable side, we remain selling on cash, and we do not see changes in number of days outstanding on receivables. One of the biggest challenges that we had in 2023 and 2024 was the availability of materials, the possibility of importation to the Egyptian market with the whole ongoing challenges that we faced, and hence we had to increase our inventory levels. We have seen we lost probably around 10 days of inventory, of incremental inventory, that increased our inventory to EGP 3 billion by end of 2024. We currently plan to reduce our inventory levels again to the stability we see in the Egyptian market and availability of commodities and so on, to reduce our working capital by an additional 10 days. This should help improving significantly our net debt position. This is for the working capital. For the second part, I leave it to Ahmed. Okay. Thank you, Sameh. When it comes to price increases, actually, we do not foresee any need for further price increases going forward, given the stability that we are currently witnessing on macro level. However, as we have mentioned before, we have introduced a richer experience with the consumer at higher price points that are expected to affect our average consumer price, but this does not indicate that we are planning for any further price increases at the moment. As the usual practice, when it comes to our pricing strategy, we have been always reactive to what is happening on a macro level, and we never move into price increases unless we need to pass the inflation to the consumer, and that we have been successfully doing for the past year. Thank you. Thank you. The next question is, how are cocoa prices impacting you in 2024, and do you expect any pressure from cocoa in 2025? Sameh, you want to state our position here when it comes to cocoa and what stock we have and where we are exactly? We have the different types of cocoa we are using, and we have inventory covering up to Q3 2025. So we do not expect a significant impact on most of our categories. Some specific types, we have to face price increases for sure, and it will be reflected on our costs as of end of Q2 in the local market. Seeing cocoa prices grown for Edita based on our long-term contract, cocoa prices doubled. Cocoa represent around 10% of our cost of material, so that should, doing the math, this should be the impact on overall cost of materials for the year. Thank you so much. Thank you. The next question is on bakery volumes. What is the bakery volume growth expectation for 2025, and how much are the newly introduced categories growing? Sorry. Excuse me, can you repeat the question again, please? What is the bakery volume growth expectation for 2025, and how much are the newly introduced categories growing? When it comes to the bakery segment, definitely we are expecting an increase of around 35% in terms of top line. We're not what I can say regarding the new segments that we're penetrating, definitely in this case, we're leveraging on the fact that we stepped into toll manufacturing agreements on the biscuit side, and this is- No, Ahmed, we are talking about the bakery segment, not I don't know, biscuit is not included, I think, in the bakery segment. Okay. Excuse me. Thank you, Hani. I thought that the second part of the question is related to the biscuits. I misheard. No, no. No worry. No problem. Okay. When it comes to the bakery, as I mentioned before, we're expecting a revenue growth of over 30% versus the previous year. And definitely, we're planning to have new introductions at different price points. And we started the year by introducing a new premium offering, which is Molto King, and that have been significantly performing well month after month since its launch. And we're expecting to see further growth on this segment, specifically coming from the one-piece offerings. Yeah, the one that we really suffer because of price increase is on the mini Molto croissant, because it is the most really difficult, and the most difficult SKU really when it comes to repricing, because the consumer doesn't buy by weight, he buys by number of pieces. It's always very complicated to come up with an offering that will be value for money to consumer. If you want to go to a nice proposition, we always have to price. Anyway, we have repriced the whole portfolio, beginning of a month, a month and a half ago, and we expect this to be reflected on volume. What is the percentage of volume recovery? We cannot really assume it at this stage. Thank you. Thank you. The next question is, any update on the competitive landscape? No, there is no update. We don't see the competitive landscape remain the same. Always new smaller entry penetrate the market from time to time. As you can see, and Ahmed mentioned earlier, despite the volume drop, we have not been impacted significantly on our market share. Let's say, rephrase, the impact was really insignificant. We will continue defending those market share, that's for sure. Again, on the competitive landscape, we don't see any change at the time. Thank you. Thank you. The next question is from Ramy Hajjar. What are the metrics or guide for your expansion CapEx, especially regionally? Do you consider an IRR target, and how will you fund these investments? Sameh, I'd like to thank Denise. I think for the expansion CapEx, we set the annual theme in the middle of the core of adding two additional markets. The first one, now that we signed the Iraqi deal, I think we are planning to invest over the next three years in Iraq around $30 million. The second opportunity would be more or less in the same size. That's in terms of sizing for the investment. The funding, we have already a facility with the IFC for $45 million. We consumed out of this facility drawdown of 20, and we still have $25 million. First part will go to finance in Iraq, and the remaining portion will go to finance the additional opportunity. We will still look within the local markets for minimizing our exposure to raise local debt in Iraq and in other markets, looking for around a 50/50 debt-equity ratio. In terms of returns, I think we cannot really share the details of this information, and they are varying depending on the risk appetite within each market. Thank you. Thank you. The next question is from Ali Sarwat. If the government decided to standardize the 14% VAT versus the 5% that you're currently paying, how will you react in terms of pricing? Will you fully pass the increase in VAT to the customer? That is not an easy one to answer because I think It will be a mix of different things. Some segments, we can have a full pass-on or we need to evaluate the volume impact and maybe absorb part of it. It is important that the 14%, currently we pay only 5%, but we do not collect VAT on the inputs. So the 14% moving from 5% to 15% would be partially compensated by collecting our inputs. So the impact is 6% on top line. This 6%, how we will split between the company and the consumer, I think that is another exercise we still need to conclude internally. Thank you. Thank you. The next question is, can you talk about competition in key categories? Ahmed. Thank you, Hani. If we start with the bakery segment, as we have seen throughout the past period, this category has been stable overall. We have seen that a lot of competitors have now been following our footsteps in terms of introducing high price points or new offerings at the same price points that we recently introduced to the market. However, given the equity of our brand, we still maintain our dominance and our leadership. When it comes to cakes, what I can say about cakes is that most of the competitors were not able even to follow the high price points that we introduced to the consumer. They tried again to give bigger size offerings at low price points in order to gain market share. However, as I mentioned before, we have been stable. We showed a lot of strong equity when it comes to our brand, and consumers still prefer to go to high-quality offerings across the different price points. If we look into wafers have been a success story. We have seen that we benefited a lot from the fact that people are migrating from the chocolate category, and now they are the wafers, especially the coated segment of it. It represents a good substitute for chocolate. We had an increase of 60% in terms of revenue, and it was also reflected on volumes. We are expecting this trend to continue, especially with the uprise in cocoa prices that we have seen lately. We are expecting further and further growth when it comes to the wafer segments, mainly triggered by the coated segment of it. If we look into rusks, we did not see any new introductions that has been done to the market, and we have seen that we are sharing leadership on this segment with PepsiCo, with their flagship Sunbites. We are still playing musical chairs when it comes to the leadership on this segment. We are expecting that the situation will continue as such. If we look into biscuits, the market again has been growing. Definitely, we had a good opportunity to grow within this segment based on our newly introduced coated offerings, which are again benefiting from the fact that people are migrating to more affordable offerings coming from chocolate, which have witnessed a significant price increase. As I mentioned, this trend is expected to continue given the increasing prices of cocoa. I think that, again, as we mentioned, Hani, currently there are no disturbance in our markets, and we have seen stability, and we are expecting that the new offerings that we introduced across all categories to continue to grow given the stability that we are currently seeing in the market. Thank you. Thank you. We have a couple of questions from Hany Genena. What is the optimal SG&A to sales given mounting competition in Egypt, and are there any restrictions on profit repatriation from Morocco and/or Iraq? Samir. I think we are looking to SG&A at 16% to normalize, and I think this should be adequate within our competitive market, whether on distribution cost, whether on recruitment and maintaining our talent. This would allow us to remain competitive on the different fronts of the SG&A and the SKU. We don't see any issues on dividend repatriation from Egypt to our foreign shareholders. We do not see as well, though we've not tested in Morocco or in Iraq. The current regulations in both countries are flexible and fair, allowing dividend repatriation schemes. A bit lengthy process in Iraq, but still doable and foreign currency available and should not be an issue. Thank you. Thank you. We have a follow-up question on CapEx. What is the guidance beyond 2025, if you can repeat that? And is the $8 million for Iraq included in the EGP 1.2 billion CapEx guidance for 2025? It's not Iraq, it's Iraq. Sorry, the question says Iraq. I think that what we said that the 1.2 billion, that's the local market, and we expect in Iraq to spend $30 million inclusive of the first $8 million over the next three years. What was the second part of the question? Sorry. The guidance beyond 2025 in terms of CapEx. Yes, we spoke about maintaining probably the level of EGP 1 billion to the local market, mostly on expansion, and $15 million externally. But these numbers could be for sure impacted with currencies and evaluations. Historically, we have been focusing as an 8% of revenue in general on our CapEx split as five expansion and three replacements. We usually at 10, but with the different level of the company now, we implement 8% of revenue. Thank you. The next question is on the Iraqi market. If you can talk about the market, how big it is, what categories are most promising, and how does competition look like there? Well, Sameh, you want to share some of the information we have? Yes. I think we have been operating in Iraq for the past 12 or 13 years on the croissant or on the bakery and cake segments, where we developed a leading position there. I think the overall market, we are talking about $250 million for the cake segment and a bit less for the croissant, $180 million market on both segments. Other data, market data there is very difficult, and these numbers are really on a higher level. In terms of competition, the Iraqi market is we do not have a lot of local producers, and the competition is either import products from Saudi or from Iraq or Turkey, with the Turkish products having the lead currently on importing the cakes. Nevertheless, as of the beginning of 2024, the Iraqi government stopped and put a ban on the importation of similar products. We should start seeing local producers getting a higher market share. This is one of the reasons for sure why we moved to local production, and we expect other competitors from the GCC area to follow as well with local production, benefiting from bigger than Edita, giving us a stronger advantage. Okay? I think you have already answered this question, but do you provide any ROI target for your regional expansion? We said we will be drawing for our target, and we could vary based on the risk at the time for each area. Thank you. We will take the last question in the chat from Mohammed Hosni. What is the expected exports contribution to revenue post-Iraq and the third territory? I think we would like to maintain our export level in the guidance of 10%-11% of our top line. We are cementing our position in important market, like Libya, like the West Bank in Palestine, like Jordan, and many other country that we have recently penetrate. We are also very keen on increasing our export from our Moroccan subsidiary there to West Africa. As we mentioned in the beginning of the call, we already penetrated Mauritania, and we have plans to penetrate other countries in the Western African continent. So, a 10%-11% percentage of revenue will be a target for next year. Thank you. Thank you. We actually have one last question in the chat from Hani Mina. Would you consider entry to the healthy snacks business? Wouldn't it cater to a fast-growing segment that is becoming more health-conscious? Yes, this is definitely in our agenda. We are working with our innovation, with our R&I center, which we have in the company. As I said, we have a research and innovation department that is quite solid, and one of the mandate on the roadmap of product that we would like to launch is the healthy snacking proposition. We are considering, and we are evaluating at the moment which of those categories that we can penetrate. And definitely, once we have something solid, we will launch to the market. Thank you. Thank you. We have covered all the questions in the chat, so back to you, Hani, if you have any concluding remarks. Well, thank you, Mirna. I think we have covered most of the questions that we were asked today. Yes, we understand that results are not the best, even for me and my team. We are not very satisfied of what we have achieved in 2024. Nevertheless, I am also very happy that we managed to navigate safely in a very turbulent environment in 2024. We have seen severe inflation. We have seen severe devaluation that have impacted our cost of goods sold and all cost center in Edita, and we had to react. We were a little bit slow than usual on reacting to the price increase because, as I early mentioned, we needed to see and understand clearly the market dynamics and where they will land before we move and then change our prices. Changing prices is not something, a push of a button. It entail a lot of adjustment and change, whether on machine, whether on packaging, whether on dimensions of product and volume. This is not a quick fix. This is something that take a lot of work. I hope, I sincerely hope that we do not see such move, aggressive move in 2025 because it disturbed the whole business. Anyway, we are on track. We are back on track. We have revamped the whole portfolio. We have secured our raw material. We have all the talent in place to come back to what we used to achieve in the past, and we will do. That is our job. I am very confident that numbers and bottom line, whether on EBITDA and profit, on top definitely of top-line revenue and market share, will remain solid over the next years, Inshallah. Thank you very much again for joining the call, and happy Ramadan. Kul sana wenta tayyib. Thank you. Thank you, everyone, for joining, and thank you, Edita's management, for your time. This concludes today's call. Thank you. Thank you.