Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the Delivery Hero Q3 2021 trading update. Throughout today's recorded call, all participants will be in listen-only mode. After a short introduction by the management, there'll be a question-and-answer session. If you'd like to ask a question, you may press star followed by one on your touchtone telephone. Please press the star key followed by zero for operator assistance. I would now like to turn the conference over to Christoph Bast, Head of Investor Relations. Please go ahead.
Hello and good afternoon, everyone. We hope you are well, and thank you very much for joining today's conference call as part of our Q3 trading update. We trust you have all received the press release and the presentation, which we published this morning and also sent out by email. These documents are, of course, also available on our IR website. Furthermore, this call is being recorded and webcast, as well as a replay of this call will be available later today. As always, Niklas and Emmanuel will summarize the most relevant aspects of our Q3 performance, and after that, we are looking forward to answering your questions. Now let me hand over to you, Niklas.
Thank you. Hey, everyone, hope you are doing well. Again, we are super excited to share our Q3 results with you. As always, we are trying to make it fast so that we have sufficient time for any Q&A. I think the vision you know by heart already. We have now also executed on this vision, and we are now by far more of a delivery multi-vertical than any of our comps or peers that are at large scale in Europe and America. Today, we basically deliver anything you want. You know the promise we have laid out in the past on slide three; these are still valid, and we continue to deliver on what we promised here. If we go to the next.
Before diving into details, quick recap that we continue to present numbers on pro forma basis as we have done already in the previous trading updates. We therefore exclude activities of Delivery Hero Korea for the full year and include Woowa for the entire year. Let's move to the key highlights of the Q3 here on slide six. First of all, Q3 marked another quarter of outstanding revenue growth of almost 90% to EUR 1.8 billion, despite gradual easing of COVID restrictions. Furthermore, we have accelerated our Dmart rollouts. You all know that we are strong believers in quick commerce. Therefore, we opened 174 new stores in Q3, following 84 stores in Q2. Today, we stand at over 900 Dmarts.
This makes us the largest global player in the entire industry by number of stores, but more importantly, orders and GMV, at least that is as far as we are aware. Once again, we are extremely happy with what we see at Woowa. In August, they generated more than 100 million orders in a country with a population of only 50 million people, or 52 to be correct. They have been massively pushing this market to incredible growth and expanding the gap to player number two and three. However, more impressively is that this has happened while significantly increasing our adjusted EBITDA level in the first nine months. We still operate on promotional pricing, so we are nowhere near what it could become. In addition to this, we have generated a further increase in contribution margin in our own delivery business.
If you just look at Asia, excluding Woowa and Delivery Hero Korea, we have seen a significant improvement in Q3 and are at break even after vouchers for the first time. We have successfully extended our footprint and service offering through M&A, which will add long-term value to our ecosystem. In Turkey, we have acquired Marketyo, which will allow us to scale faster in the quick commerce business. In Latin America, we further consolidated the market through the acquisition of hugo, a promising online delivery and quick commerce provider. In Greece, we acquired two quick commerce assets from Mouchalis Group, which will improve our product offering there. In Germany, we led the last financing round of Gorillas, as we believe they have a fantastic product and the best cohorts in the industry.
There are some further amazing investments we have made, but for the moment, I would leave it here. Last but not least, we completed the divestiture of Yogiyo, our own Korean business, and therefore fulfilled the requirement of Korea Fair Trade Commission, KFTC, and we managed it well ahead of the expiry of the extension period in January 2022. Let's move to slide seven. This gives you a very good overview of our outstanding long-term growth trajectory. As you can see, we have generated a GMV of EUR 9.6 billion in Q3. This marks a quarter-on-quarter increase of 14% and proves that we're growing significantly faster than all of our listed industry peers. While they declined on average 4% quarter on quarter, we grew 14%. That's an 18% difference in one quarter.
We are today by far the largest global food delivery company by orders, and now also overtaking the number two spot on GMV. Again, with this background, we believe it's fair to say that Q3 was another extremely successful quarter for Delivery Hero. With this, let me then hand over to Emmanuel for a deeper dive into financials. Emmanuel?
Thank you, Niklas. Good afternoon also from my side. Let me add a bit more color on our Q3 group figures on the slide eight. Despite the gradual easing of the COVID restrictions, we generated strong orders growth of 52% and generated 791 million orders in a single quarter. If you look at the over-proportional GMV growth of 65% in Q3, you can see how our initiatives to increase the average order value are really gaining traction, especially in APAC, which means Asia excluding Korea, and in Americas. For example, we have made strong progress in upselling products, adjusting subscriptions, reduced vouchers for low average order value customers. We increased the minimum order value, reduced the delivery fee campaign and so on.
Also worth mentioning is that our non-commission revenue, what we call the NCR, is now equal at circa 1.7% of our GMV by Q3, and we expect this to significantly grow in Q4, and long term, we believe that this can grow up to 3%-4%. In short term, there are some mixed effects with quick commerce, where we still have very limited focus on this. Even stronger revenue growth in total segment revenue of 89% in Q3 is supported by our fast-growing Integrated Verticals segment and its high revenues to GMV conversion. Just here, a reminder, the total segment revenue is defined as the revenue in accordance with the IFRS 15. That means excluding the effect of vouchers and all that is got.
I also would like to draw your attention to the fact that the total segment revenues of our Integrated Verticals are reported in Integrated Verticals where our orders in GMV are captured in the four regional business segments. Now let's move to the Asia platform business on the next slide. Here we generate strong growth of 55% year-on-year to 540 million orders. The overproportionate GMV growth of 72% year-on-year is mainly driven by higher basket size, which increased in all major APAC countries and showed steady development in South Korea. In terms of revenue, Asia is our largest segment now, contributing 48% of the total segment revenues.
Looking at profitability, the contribution margin of own delivery has significantly improved, and the entire Asia segment, excluding Woowa and Delivery Hero Korea, is now at break-even after voucher for the first time. As you all know, we usually don't disclose financials on the country level, but in Q3 we have seen the break-even of the certain large Asian markets besides South Korea on adjusted EBITDA level and after the group cost. We expect a further improvement in profitability in Q4 and beyond. Now let's move to and have a look at MENA on slide 10. The segment generate high order growth of 48%.
As you remember, the year-on-year growth in the Q2 was extraordinarily high due to the negative COVID impact that we had last year in Q2. If you remember, we had a negative growth of 6% on orders last year in Q2. Even though these restrictions have normalized and we have generated a very different growth this quarter, and GMV grew by 46%, which is almost in line with the order development. Due to the higher own delivery share compared to Q3 last year, in particular at HungerStation and talabat, the segment revenues increased by 70%. We also launched a new tech hub in Turkey in September, which will be part of the Delivery Hero global tech team, adding to the current set of tech hubs in Berlin, Dubai, Singapore, Buenos Aires, Taiwan, and Seoul.
We expect the hub to scale to more than 500 talents. We will support our growth and innovation plan. Moreover, we would like to point out the strong performance of InstaShop, one of the largest online grocery platforms in MENA. In September, we generate revenue growth of 120% year-over-year, and also the numbers of stores is more than three times larger than last year. Now turning to Europe, on the slide 11. Despite the reopening and gradual easing of COVID restriction across many European countries, we generated a healthy growth of 44% in terms of orders and GMV growth by 54% during the Q3 .
Supported by our own delivery business, which increased to 32% of total orders, the segment revenue grew by 74% year-on-year in Q3. These numbers are on a like-for-like basis, meaning that this is adjusted for the investments of the Balkan countries, excluding Romania, as we expect this transaction to be closed in Q1 2022. Now let's have a look here at the last year's geographic segment, our America segment on slide 12. Here, we report a continued healthy performance with order growth of 48% year-on-year. Moreover, we would like to highlight the over-proportionate GMV increase of 70%.
This was driven by several average order value initiatives we have introduced, meaning fewer delivery fee campaigns, higher minimum order values, upselling, higher basket size, as well as continuous improvement in our dynamic delivery fee pricing. In addition, our own delivery business grew to 88% of orders in Q3, which supported the revenue growth of 82% year on year. Finally moving to our slide thirteen. Here you can see the numbers of our Integrated Verticals segment, which we are super excited about. In Q3 we opened 174 new stores compared to the 84 stores in the Q2 of this year.
This is a clear acceleration and bring us to a total number of 861 Dmarts at the end of September. Our successful rollouts result in a GMV growth of 200% year-on-year, and a GMV run rate of EUR 1.2 billion. In combination with the more than 900 stores we operate today, this clearly makes us the largest players in the entire industry worldwide as per our own estimate. Our footprint is mainly in MENA, where we operate around 50% of our stores, followed by Asia, America, and a small part of the business is in Europe.
As a reminder for those who are new to the story, the quick commerce can be separated into local store business, where Delivery Hero acts as an agent, and the Dmart business where Delivery Hero acts as a principal. The Dmart business is captured in the Integrated Verticals segment, which also includes the so-called Delivery Hero Kitchens and some adjacent business like restaurant supply, for example. Local stores are capturing our platform business within our four regional segments. Also here we see greater development as we keep expanding our offering to some great partners. In total we serve almost 100,000 local stores, everything from grocery to electronics to pharmacies to florists. Now let's move to the contribution margin slide.
In addition to the strong top line growth in Q3, we have also improved our profitability, and we expect this to continue. On slide 14, you can see the contribution margin development of our own delivery business. These numbers are before the deduction of voucher cost and excludes Delivery Hero Korea as well as Woowa. On the group level, we have been generating a gradual improvement of the contribution margin and we expect a further increase in Q4. Looking at the individual segments, our MENA and Americas have enhanced their contribution margin compared to our temporarily weaker Q2, and Asia has even reached a new all-time high. In Europe, the margin has declined, which is due to the own delivery rollout in Greece. Excluding Greece, the contribution margin in Europe would have been even higher than in Q1 2021.
The non-commission revenues on the group level increased slightly from 1.6% of GMV in the first six months to 1.7% in Q3. As a reminder, these revenues are not including in the contribution margin. Now let's have a look at the development of the contribution margin after the deduction of the voucher cost and jump into the next slide 15. On this slide, you see or we see our contribution margin in the own delivery business after voucher cost, standing at a record high in Q3. We expect this also to even improve further in Q4. This positive development is also driven by a constant profitability improvement in our segments in Asia, which is now at break even. Furthermore, we have continued to reduce the level of vouchering.
In Q3, vouchers as a percentage of total segment revenues stood at 10.8%, which is a decrease of 1.5 percentage points compared to the first half of 2021. Hence, like, we stick to our previous guidance for the full year 2021 and expect that to come out below the 2020 level when the ratios stood at 11.8%. On GMV basis, this translates into a 3% level. Now we move to the next slide and the portfolio that we have. We see here an overview of our large investment portfolio in the global food delivery space.
As you know, we are keen quite active when it comes to acquisitions, as we've proven in the past that we can significantly scale and improve the businesses that we acquire. To achieve this, we build strong reputation and relationships in the industry. When it comes to investments, we're convinced that we can leverage our industry learning, our great reputation and powerful platform to further build out our ecosystem via strategic minority investment. As part of our investments, we further improve our network. We extend our know-how, explore ways to collaborate and even drive consolidation. We see a lot of long-term value for this. Even short-term, investments have historically generated very attractive return. With that, let me hand back to Niklas for a deep dive on Asia, our largest and very exciting segment. Niklas?
Thank you, Manu. First, we would like to give you an update on the tremendous success we have made in South Korea before we share additional information about other Asian markets. On slide 18, we shed some light on our understanding on market position in Korea. As you can see on the left-hand side, our active user base has been growing quite significantly over the past quarters, where our main competitors remain stable or even lost market share. At the end of September, our active user base was 2.3 times larger than those of our two closest competitors combined. As you are well aware, one of our key competitors used the time, when we were dealing with KFTC to introduce their own delivery service offering.
However, since the beginning of this year, their position has stabilized and our brand, Baemin, has been even increasing its strong leadership. The main reason for this was the successful rollout of our own delivery service. Turning to the chart on the right-hand side, you can see the active user frequency. This is rather active visitors based on App Annie. I wanna be clear here, this is external data. We know that this is not directly comparable to order numbers, but we believe it gives a very good indication of our order frequency relative to competitors. Here you can see that delivery user frequency or user visit of 11 times is 70% higher than the average of our direct competitors. This is driven by our strong brand, best customer experience, and superior product offering.
To summarize, we have a significantly larger active user base and higher frequency among our users, which makes us around four times larger than the two of our main competitors, combined. Turning to slide 19, you can see that we not only double down on growth and our own logistics network, but we also see the significant improvement in profitability at the same time. We are still very far from where we believe we can get to with our 100 million monthly orders with still huge growth opportunities long term. Only a small EUR 1 EBITDA per order would generate above EUR 1.2 billion EBITDA a year at the current size. We are not yet there, and we still have a lot of improvements to make, but progress so far is pretty fantastic in my eyes.
At this occasion, I'd like to point out, and this is just another testament to our ability to do smart M&A, but also improve businesses we acquire. So far, this has been repeated over and over again. I believe we have the best technology and execution team in our industry. I'm going to the next slide. It's not only South Korea that makes us happy, but also the APAC countries show a very strong performance. Just for clarification, when we speak about APAC, we refer to Asia excluding Korea and Japan. On slide 20, we provide an overview of the market position compared to the direct competitors. On the left-hand side, you see that our market share in terms of app downloads is 2.5 times larger than our closest competitor in the markets we cover.
The lead over the number three and number four player is even larger. The higher number of downloads has resulted in a higher active user base. As illustrated on the right-hand side, we have significantly outgrown our main competitor in our core APAC markets, and today we have an active user base which is 1.7 times higher than number two. App Annie and other third-party tools can be misleading at times, but in this case, the numbers being consistent with credit card data and public reported numbers. As referenced, our GMV growth of 78% year on year in Q2 was noticeably higher than our main competitor's. We grew 58%. However, it's not all about growth, but also about profitability. Hence, we are proud to show that we have made very good progress during the last couple of quarters on slide 21.
Here it becomes clear that the investments we have made in APAC are really paying off. Since Q1 2020, the adjusted EBITDA margin has improved by 22 percentage points. Compared to Q2 2021, so last quarter, it has improved by four percentage points. This proves that there is a clear path to profitability while still growing faster than our closest competitors. For clarification, the numbers we provide here refer to APAC platform business, meaning excluding Korea, Japan and Integrated Verticals. It includes all group costs in contrast to how most of our peers are reporting. Group costs to be even more clear as both for our Singaporean hub as well as Berlin. All group costs allocated.
On slide 23, we have the outlook and as a result of the strong performance in Q3, we update our full year guidance and now expect GMV and total segment revenues to come in at the upper end of the previously announced guidance range. In addition, we confirmed the adjusted EBITDA margin to GMV target of 2%. Let me also make a few comments on Q4. First of all, we had a very good start, but we're also facing tougher comps. Last year, Q4 was marked by strong COVID restrictions, in particular during December. This of course provides some tailwind for us. We expect this effect to be much less pronounced this year.
At the same time, we have seen very rational competition in the last six months, and if this remains, then we see good room to improve our unit economics in many markets further. This might weigh a few percentages on the order growth. If competition heats up, then we may again step on the gas and grow a bit faster again. Either way, we are of course, confident to reach the top end of our guidance. If we are lucky, maybe even beats here. On the last slide of today's presentation, we would like to give you an overview of why all of us here at Delivery Hero remain so excited about our company and the industry as a whole. We believe we really have a unique position to drive long-term value and have summarized the key tailwinds for our business on this slide.
First of all, food delivery offers a massive growth opportunity and is still underpenetrated across all markets. This is not only true for food, but the entire grocery and quick commerce business. Our current footprint is covering a population of 1.7 billion people in fast developing markets, which gives us a large and quickly expanding TAM opportunity, that is beyond any of our peers. Another important aspect is our strong market leadership. 95% of our GMV is generated in markets where we are clear number one, and 75% of GMV comes from markets where we are 4x larger than the number two competitor. No other player in this industry can show this, and I think when it comes to our assessment, I believe we are not doing an optimistic view here.
I think we have always been very conservative on showing where we are leader and where we are not. I think this is also a very representative view of reality. 75% of GMV comes from markets where we are four times larger than the number two competitor. This is unique. We at Delivery Hero are at the forefront of product innovation. Our entire business is based on superior technology, and we are constantly ahead of the curve when it comes to driving innovation around logistics, quick commerce, subscription, kitchen concepts, and many other core areas. Therefore, we are operating 15 tech hubs around the globe, which helps us to continuously innovate our customer experience and improve operational efficiency.
Our superior product offering and better customer experience result in sector-leading frequencies and growing average order values, which helps us to achieve highly attractive unit economics, and also increasing the stats. Furthermore, we see a clear path to generating an EBITDA GMV margin of 5%-8% long-term. As we have outlined already in the past, there are so many different levers we have at hand. Increasing scale, better ride utilization, operational efficiency through tech and automation, higher basket sizes, less delivery fee contained, dynamic pricing, lower discounts, lower customer restaurant acquisition costs, and many other things. I haven't even mentioned the huge opportunity of advertisement revenue. Manu spoke about it before has grown to 1.7. I personally or we believe that this could easily go to 3%-4% in the long-term.
There is some mixed effects with the quick commerce business where we have not yet been pushing these levers, and as this is growing, it has a little bit of a dampening effect until that is being rolled out. Either way, advertising, huge opportunity, and this is only one out of the many levers we have for the long-term profit. Last but not least, we have shown a strong track record of value accretive acquisitions to our business. We have a strong record for successful M&A at good prices, and we have been using those to further accelerate our growth and help us to expand our market leadership. That's it from our side. We are very much looking forward to answering any of your questions. Operator?
Thank you. Ladies and gentlemen, at this time we will begin the question-and-answer session. If you'd like to ask a question, you may press star followed by one on your telephone keypad. If you wish to remove yourself from the question queue, you may press star followed by a two. If you're using speaker equipment today, please lift the handsets before making your selection. Anyone who has a question may press star followed by one at this time. One moment for the first question, please. Joseph Barnet-Lamb, your line is open. Please go ahead.
Hi, Niklas, Emmanuel, thank you very much for taking my questions. Firstly, thanks for the great disclosure around Asia. I'm sure you'll get a bunch of questions on that, but I'll start with a couple of high level ones, if I may. Firstly, in only narrowing towards the top end of your GMV and revenue range, it implies materially slower performance in Q4. Niklas, you mentioned comps, improving economics and a few factors. I guess my first question is if you were to hit -2% of GMV as adjusted EBITDA, would you only hit the top end of your GMV guidance or do you think you would exceed it? I'm just trying to see how those two pieces of guidance line up effectively.
My second question is we saw a return to improvement in contribution margin, and that's obviously thoroughly encouraging. When we think about the factors that impacted 2Q, particularly rider shortages, Saudization, are those issues now behind you? I think Emmanuel mentioned he expected further improvements in 4Q and beyond. Could you contextualize where you think that could go through 2022 and beyond? Finally, we obviously saw DoorDash announce the acquisition of Wolt yesterday. A couple of related questions, I guess. Were you in the running to buy that asset? How do you view the gap in multiples of yourself versus entities like Wolt? Does that valuation gap effectively leave you constrained from an M&A perspective? Thank you.
Thank you very much. Maybe I cover the first one, you do the second one, and finish off with the third one, Emmanuel, if that's fine for you.
Yeah.
I think I dive a little bit on the different dynamics. I know one being, you know, COVID, especially in December, which I have not yet seen. We still don't know really the latest development in terms of pandemic across the group, what impact that will have and potential lockdowns and or curfews and so on. Therefore we like to be very moderate and conservative in our approach, in our communication. We do not want to let any investors down, or in any way misleading here. We are maybe taking a little bit cautious view there, on the growth side. I think we have deployed a significant portion of the, what we priorly kind of gave ourselves as investment opportunities for this year.
I'm not sure if they're gonna crawl back anything of that. Of course, with higher growth and better margins, we might give some room. At the same time as we're making some of these adjustments, let's say we're driving a little bit of the economics, we sometimes have to do a little bit of short- term marketing spending or short- term activities to make sure that we balance a little bit that growth aspect as well. I don't wanna change our guidance in any way. I think 2% is where we're planning for, and we are planning for the upper end now, with potentially some flow-through for possible overperformance if reopenings and so on are not dramatically changing the picture.
Emmanuel, do you want to cover the Saudization and that?
Yeah. Like, yeah, like your, you know, the question was around the improvement of contribution margin. You know, over the last quarters, we continuously focus on the improvement of our contribution margin by capturing first the benefit of the economy of scale. Also the improvements of these very important items I've described in our comments. I mean, like it was the management of upselling, the management around the minimum order value, the management of our customer profiles, the efficiency of partnering and other also like delivery fees optimization. There are many items that we are covering and taking care and they're driving to this improvement of contribution margin.
Concerning, you're right, the aspects or some aspects highlighted in our Q2 2020 update, some of the impact were more seasonal or extraordinary. Like, for example, the rider shortage that we had in Taiwan, you do remember like, you know, it was the shortage was due to a certain sudden COVID restriction. Remember we had also some structural reasons, I call it that way, like the Saudization or Omanization. On that note, in particular for KSA, the Saudi authorities substantially since then the timeline and also the depth of the implementation of the measure to be done until on the Saudization.
This had a positive impact on the contribution margin. Now the question is, when this consolidation will kick in, it will be during 2022. We also made the experience in many occasions that, between announcement and then sometimes measures following and have been quite different and sometimes very, I mean, in many cases, very positive for us. Means, like, less pressure on us to implement the measures. That was the impact on Q2 was clearly see for consolidation, organization, when we talk about structural.
Yeah. Overall good development, there was not permanent issue with Taiwan and so on. Then on the Wolt, and if you're wondering, I think it's fair to assume that we are always part of any M&A process. In this case, we quickly understood that having looked into data room and so on, that we wouldn't be able to compete on price and therefore we dropped out. We think impact should be very limited to us. The overlap is small in the markets where we do have overlap, I think it's around 5% of our GMV. The biggest overlap are in Sweden and in Greece. In Greece, we're at least five times larger. In Sweden, we believe that we're close to ten times larger in that market.
I think that goes for actually every market where we compete. We believe that we're largest. Finland being the market where we are most at par, I would say. We were smaller in the past. I believe we have now at least caught up in possibly even ahead at this point in time. I think two points on the valuation gap. Of course, it's a little bit challenging to pay significant amount in M&A transaction if you're not in your own opinion at fair value, because in the end, you give out stock in yourself, you have to raise at unfavorable terms. It does give you a big disadvantage in large M&A transactions.
Smaller things that don't think it matters so much because in the end there is so much. Either you have value in that team or that thing that it won't really turn the needle. Of course, in large M&A transaction, you're massively disadvantaged. We don't see any of those, or we don't have any big M&A acquisitions in mind at this point in time, therefore we don't care that much. Or I would say we don't really care at all. In that sense, I don't think we are disadvantaged. We'd rather focus on our business.
Thank you very much for the answers, gents. Thank you.
Thank you very much.
Thank you. Thanks.
The next question comes from the line of Monique Pollard with Citi. Please go ahead.
Hi. Afternoon, everyone. Just a few questions from me, please. If we could start first on the D Mart. Obviously significant acceleration in the D Mart rollout in the Q3 , up 174 in the quarter versus up 84 last quarter. Maybe if you could just give us some indication of how we should expect this to trend in 4Q and whether over time, the regional split that you gave for 3Q, so, you know, 50% MENA, 35% Asia, 10% Americas, 6% Europe will change materially over time. Second question, also on the D Mart. Could you give an update as you did at the 2Q about the average basket size for D Mart versus food delivery? So I think it was 1.17 times bigger the basket size in June.
Whether you still have a-
Uh.
Oh, sorry.
Sorry. Come again.
Whether you still have about 50% of your Dmart that are generating more than 400 orders today in the 12 months post-opening. Final question, just on the DoorDash and Wolt tie-up. Just wanted to understand what you thought it could mean for Japan. Obviously, it's a market that you've been investing in significantly and Wolt's also there, and how much disruption that could cause.
Okay. On the first one, yes, we did a significant rollout of Dmart. We've been very happy and therefore we see that we have to double down a little bit. I think you would expect us in Q4, there will be a significant ramp up. I think as we come until the end of the year, we will continue to grow the number of stores, but the acceleration will not happen. We will have then a very good network of stores covering the footprints that we wanna have with enough density and order distances to having good unit economics. Of course, we will continue to grow that, but I think there will not be that acceleration.
The growth will come down as we go into next year. Rather the order per store will keep going up. To that question, if I answer question three, as we rolled out a lot of stores now, it means that the order in those stores are of course lower. It takes some time to ramp them up, and that means that this 50% may have shifted. I don't have the number at hand, but I could imagine that will have been marginally dropped down, but it should then very quickly move back up to at least that level. If you look then into next year, that level will be overachieved, hopefully by far, if you don't keep on rolling out at the same pace as this year.
In terms of average basket size, we haven't or we are not disclosing at this point in time, nothing has really changed. So, we continue to look for opportunities to further increase basket sizes. But I think at this point in time there is no material difference that is worthwhile highlighting today. Then on DoorDash and Wolt, on Japan, it doesn't change much I guess. I think I don't know exactly how they will operate and which technology platform, et cetera, but it essentially means there is one less competitor. If that is gonna be DoorDash, that is gonna be Wolt, brand name or technology is to be seen, but it essentially means one less competitor in that market. Yeah. I hope that answers your question.
Yes. Just the final one was on whether the regional split of DMart, we should expect that to change over time.
Apologies. Yes. There will be of course some changes. In some markets we are closer to a good coverage. In other markets, we still have some way to go. But it will not be dramatically different from one quarter to another. This will be more of the long-term. Of course a market like Asia should have a large split. I think we do in Germany as well, in Latin America. Europe is of course a little bit less of a focus of us and we invest less in Gorillas and we back and support them. That means we have a little bit less focus potentially ourselves.
At the same time, we are still very small there, so the percentage might still go up, even if there will be less stores per in comparison to the other countries.
Yeah. Okay, that makes sense. Thank you.
Thank you.
Next question comes from a line of Adrian de Saint Hilaire with Bank of America. Please go ahead.
Thank you very much. Good afternoon, everyone. So I've got a few questions, please. First of all, can you spend a bit more time discussing how you're able to achieve that much EBITDA growth in Korea, despite the shift to own delivery? And perhaps related to this, given the very sharp improvement that we are seeing in the rest of Asia and the improvement that we have seen in Korea, should we expect that Asia approaches break even in 2022? That's the first question. Second question. I know we're only at the Q3 stage, but one of your competitor has provided some guidance on 2022, expecting that mid-teens% GMV growth. Just wondering if you have any thoughts there.
Just a bit of housekeeping perhaps, but I'm just a little bit surprised that the share of own delivery went down, I think in Asia and Europe, in Q3 versus Q2. If you could just spend a bit more time explaining what happened there, that would be super useful. Thank you.
Thank you. On the EBITDA in Korea, despite significantly boosting our own OD and the promotional pricing and scaling up to 100,000 restaurants and all of that while actually improving EBITDA. Thank you for pointing that out again. I think the team has done a tremendous job, but we are by no means close to where we want to be. We had to focus now a lot on the OD. There's still a lot that we can learn on other aspects of the business. I would expect that this development will only improve. I think we are now at a very good position to keep growing at good profitable level.
We have shown that we can fight very hard and still increasing profitability, and we'll continue to do that. I said a little bit in my opening remarks. I don't see a reason why Korea shouldn't be moving gradually towards the 1 EUR EBITDA per order. You can count with 100 million monthly orders. That means EUR 1.2 billion EBITDA per year. The business is not standing still. We do 100 million orders a month now, but it's still growing fast and there's still tremendous opportunity to grow this business significantly over the next year. So this is of course a business where we can continue to drive a lot of profitability or start driving profitability.
To Asia, yes, also there significant improvement, and we have indicated this before, that we have so many levers. As we felt like market has been a little bit more rational, we have seen a little bit less competition. We felt like maybe this is the moment where we can move a little bit on the unit economics, start pulling a little bit on those levers that Manu mentioned before.
It’s always like a couple of cents in dynamic delivery and improving your logistics with a couple of %. Making sure that the worst customer who only orders with vouchers never happens or that small minimum order values that we incentivize to go away, improving a little bit in our subscription plan, which is, in my view, a fantastic subscription offering. Very small things. We haven't done anything drastic, but on those small EUR 0.003 here and EUR 0.005 there, EUR 0.02 there, all of that is making the difference that we see now. This will continue to increase significantly in Q4 unless there is a change in competitive environment and also beyond.
To your question, does it mean that Asia will be breakeven soon or next year? I think it's fair to assume that we are very close to be there, and as we continue to evolve, I think it's fair for an investor to assume that our food business will go to profitability fairly shortly. I don't wanna give a quarter now, because that would be inappropriate, but soon is probably a good answer. And we also wanna keep the flexibility. That's also why we are a little bit less hesitant to give guidance. I hope you respect that. Because we know that we wanna have the flexibility. Competitors is pushing down and pushing hard. We will push hard too, and we need to have that flexibility.
We never wanna be cornered or being put in a spot where we cannot respond because we gave promises to shareholders. We wanna operate on the best for the long term, and that's why we are a little bit hesitant in giving forward-looking guidance on specific competitiveness. Then growth in terms you mentioned from one of our peer. I think in general, we should be in a position to grow faster than our peers in the long run or in the short and the medium term as well. I think we have higher frequency than any other competitor, and that gives a lot of room for growing. I think we are less penetrated. I think we have the best product and the most multi-vertical offering of all listed peers at least.
That's why I do believe that we should be able to execute better and grow faster in the mid and the long term, and hopefully also in the short term. I can't give you a number on exactly how much more, but I clearly hope that it will be visibly more. Share, OD slight decline.
Yeah.
Do you want to cover?
Oh, yeah. Sorry. Your question from the OD decline. Yes, you're right. There's a slight acceleration of the OD share in Asia, which is due clearly to our market mix effect, you know, where Woowa in general has a lower OD than the rest of the region of APAC. Q3 in general was a very strong season in Korea, as you've seen, like with the 100 million orders in August and almost one million orders in July. So that's the market mix effect. On Europe, I must confess, I would have to dig into it to explain the reason for the acceleration. But for APAC, this is clearly due to the stronger Woowa or the market mix that we've seen there.
Thank you very much, both.
Thank you.
Next question comes from the line of Andrew Porteous with HSBC. Please go ahead.
Oh, yeah. Hi, guys. A couple from me, if I may. Could you just give us a bit of color on sort of the Dmart competition, probably? Obviously, you know, where we sit, it's a very crowded market with lots of names in it. I guess, Getir aside, I mean, do you see a lot of competition in your Asian business or really just about you guys dominating that space? And then I guess second question would be, you know, you talked a little bit to some opportunities to be more aggressive at the Q2 stage in the food delivery side of the business. Has that come to pass? I mean, have you been more aggressive? 'Cause you sound like you're a lot more constructive on voucher and competition right now than you were at the Q3 stage.
Yeah. Emmanuel, do you wanna cover it first, or should I cover it first and the second?
No. As you want. I mean, like, you're on the competition. I can give some color if you want to. Up to you. You decide.
Yes. The first question, it was a little bit around contribution margin, but also competition involved in Middle East. Could you repeat the first one maybe? I missed that one.
No, I
Do you take it?
Yeah, sure. It was about Dmart competition and the landscape, if I understand correctly.
Ah.
Please correct me if I'm wrong. What we see-
That's right.
That's basically you're right. You're right. I mean, in Europe or in the Europe region, this is pretty crowded these days. You've seen a lot of actors, especially probably if you're based in London, you will have seen a lot of new companies kicking in. Also in Germany, we see the same evolution. This is less crowded or we don't see the same dynamic in other regions. Here I'm thinking about the LatAm and also like your, the Asian countries where we don't have the same kind of evolution and development that we see here. Also in MENA, I will also like say, I don't see a major competitors. Having said that, there's one exception, Turkey.
As you know, Getir started this business on Dmart a little bit more than five years ago. This is a strong competitor that now is also available in the U.K. and in France, and also now, I think, shortly in Germany. Really credit, I would say summarize in the regions where we are, so in Europe, less in the other three regions except Turkey. Niklas, anything I should add for that?
No, I think and then the question, if we are a little bit more rational or sort of constructive. I think you used the word. I think, no. We're not yet in the Dmart space so much. I think it's an early stage, but as we now build such a leading position, I think there are many places where we don't have to make that trade-off really. Because we have such a lead that if someone comes in, yeah, then we will probably step on the gas and go a little bit more aggressive. Overall in the markets where we compete, which is only really one market, Turkey.
On a global basis, we focus on making sure that we become the market leader, and we are not yet market leader and therefore we still have to work hard.
Thanks for that color . Question on competition side was more on the food delivery side where you seem to be a bit more aggressive, two stages. Are you more constructive on that side of things now, is that fair?
I think that is probably fair that we feel like we are in such a strong position in the food side. And it's. When you reach a certain size, being aggressive or constructive doesn't make such a big difference to your growth. If you go very aggressive, you can take one more market share or you lose one market share. At that size, it doesn't really matter if someone goes aggressive on vouchers and discounts. They will get a couple of users, and they will disappear. I mean, look what happened in Korea. Coupang probably spent hundreds of millions trying to make a dent in the market.
Of course they got some market shares, but for them to maintain market share, it's gonna cost them hundreds of millions. Therefore, I think we are coming to a size and stage where we can focus even more on ourselves and what we do and a little bit less on what competitors do. Of course, if we see someone of size challenging us, then we will bite back. If not, then we might be able to be a little bit more constructive. That's great.
That's very helpful. Thank you.
I think maybe we often sometimes get asked about Japan and Germany. I think what we always said here is that we will take it very slow and step by step, especially with Germany, where we built the product, having a product that we can use, that we can order from, that we can innovate, that we can test. We think it's gonna be the best product in the market. I thought, well, if we have the best product in the market, why not make it available to everyone? We gradually gonna grow from that basis. There is no plan to make sure we win the market in the next three years or four years. I don't know.
We'll see. We play the challenger game here. We play the efficient, smart, good player. A little bit of a, call it, a number two, number three player, but still a very, hopefully a very good unit economics. Then we can always decide in five years if we wanna double down and win this or not. I think in Japan, maybe we invest a little bit more there, but the same philosophy, we are not gonna try to win this market in a short term. We're gonna fight this market by having the best product and gradually step by step, taking market shares.
That could take 10 years, that could take 15 years, but it's a little bit less of longer time, but less spending.
All right. That's it.
The next question comes from the line of Rob Joyce with Goldman Sachs. Please go ahead.
Hi. Good afternoon. Thanks very much for taking the questions. I've got three. The first one, just to confirm on the Q4 guide, I think implying a Q-on-Q decline in GMV. Is this a conservative view on the next six weeks, or is this a slowdown you've already seen in the sort of first six weeks of the quarter? Second one, sounds like you're pretty comfortable on the food delivery business, or should be profitable next year. Just building on the comments you made around Germany there. Do you have any guide on that EUR 550 million that's been on quick commerce, Germany and Japan, those investments this year? Do you have any idea where that would go to next year in 2022?
Again, linked to that, just on Germany, now you've got your stake in Gorillas, you've obviously made a lot of comments. Just made comments there on the crowding of the European space. Any changes in your thoughts on the investments going into Germany? Thank you.
Sure. Yeah. The first one, no, we have not seen a decline. We had a good start of the quarter, but we're also coming from a very good Q3, so we should keep that in mind. I would be very surprised if we end up with a decline quarter-on-quarter on the GMV side. Again, we don't know what happens with COVID restrictions. We have Vietnam more or less shut down. We can't do orders there, so of course that is weighing on us. We have a little bit also impact at Taiwan and a couple of other places. They had some lockdowns in Q3 that helped us a little bit there.
Those have been completely removed, so there are some removal of restrictions that could potentially be a little bit of a tailwind. In general, so far the quarter is very good. I wouldn't expect that it would be a decline quarter-on-quarter. There will be a drop year-on-year. That's what we expect, especially because December was so incredibly good, in particular in Korea. That was of course also driven down by COVID restrictions, lockdown, same with Latin America. No, right now we feel good. In terms of the spending on new markets, quick commerce, we do not give any guidance now. We still, it's still early stage and therefore we need a lot of room and flexibility.
We don't know what competitors will come into the quick commerce space in the markets we operate. We also have to see the results and returns that we see in customer lifetime values and customers in places like Japan and Germany to see at what level can we rationally spend money with a return. Therefore, I can't really give guidance on that at this point in time, but I would assume that it's not gonna be less than this year. We are gonna improve profitability in our core business, but I wouldn't expect the new markets in quick commerce yet to have turned the investment curve. When it comes to Germany or I think Gorillas, you mentioned.
First of all, we've been extremely positively surprised by the performance of it since we invested. That is not thanks to us. That is simply that the business has done better than what we expected. We knew that they had the best cohorts and user frequencies of all players that we had looked into. That has not gone worse. This, I should say, is on single digit voucher usage. This is not 60%, 70%, 80% voucher usage as we see in other places. This is single digit incentive of GMV. Very low incentives and very good customers, loyal customers. Of course, we think that. We believe in that company, but we also see certain benefits of working together.
We will look into those benefits and see what kind of partnerships that we can potentially do here. Nothing done or signed, but we are looking into how we can benefit our customers as well, Gorillas business et cetera. Hopefully then also save our own cost in expanding into a lot of warehouses they already have. Thank you very much. Really appreciate it. Yeah. Thanks. Thanks a lot.
Your next question comes from the line of Andrew Ross with Barclays. Please go ahead.
Great. Thanks, good afternoon, everyone. I've got two left. First one's a specific one on Korea. I think the share of delivery was 8% in June. What is that number now if we look at October? And then the second one is a bit harder in Asia. Can you just go through the moving parts of what rising COVID cases did to the Asia business in Q3? Because there's quite a lot going on there in terms of country mix, AOV impact on delivery economics, et cetera. That would be helpful. Thank you.
Sure.
Okay. Sorry. Go ahead.
I think the first one is sweet. I can quickly say it. It has increased. It is still probably a little bit lower than what we would have initially expected. It is a little bit above 10%. I think that is also testament that the marketplace is very good because we offer 100,000 restaurants, great service. It's still. Customers are still very loyal to the marketplace there. I think long term it's gonna dramatically change, so it's probably gonna take longer than what we initially thought, I would say. On COVID. Yeah. It's been a little bit small impact here and there over the last 1.5 years.
It goes in, goes out, goes in, goes out. The difference between in and out or restriction, non-restrictions is fairly low with exception of, I would say, Vietnam, where there's a complete lockdown in Hanoi and so on, where we are strong. That is easing up a little bit, but it is drastically worse than our business in that market for the time being. We have seen in the past, in other markets, once it opens up, we usually come back very quickly. Still restrictions there. I think Taiwan was a place where we did see some positive momentum because of tougher restrictions during parts of Q3. Apart from that, there are small things here and there, but nothing material.
I think in terms of economics, Q3 got a little bit negatively impacted actually with Q2 getting negatively impacted on gross profit due to Taiwan flew into. Was Q2 or Q3 that happening. I wouldn't say this is a material driver at this point in time into this unit economics. Also not orders, except Vietnam.
Thanks.
Next question comes from the line of Giles Thorne with Jefferies. Please go ahead.
Thank you. My first question is on dark stores. Niklas, I'd be interested to hear your view on the franchise model for dark stores. Second question is on Greece, and I'm curious why you bought a 500-chain convenience store business. That feels like quite a big departure from previous capital allocation. The final question, still on dark stores, is that we've now seen it's probably happened elsewhere, but it's finally bubbled into the public domain, a dark store partnership for general retail, and I'm thinking of Glovo in Poland here. I'd just be curious if you thought that is something you would be interested in doing. Again, a dark store for general retail or 15-minute delivery of general retail.
Yeah.
That's it. Thanks.
On the franchise model, I think economically, of course, early stage it makes it look very good. I don't know, you basically let the costs being absorbed by someone who's willing to start a business and invest there. There is a couple of years there where you save money, obviously, and move that off your balances. The question is still, can you then, over time, over let's say one year or two years, start giving enough business and enough economics to those franchise takers such that they stay on board and that they wanna keep running it and that they make profit? Because in the end, if they don't make profit, they will not wanna be franchise owners any longer. I think on a short term it looks fantastic.
Long term, you still have to make the economics, but of course it will take a couple of years to move on some to your balances. We are obviously also looking into that and we have launched also some number of franchise model similar to what Getir is doing. Similar terms and similar set up. I think in some markets it might be the right way. In other markets it may not be, but economically it will look very attractive at the beginning, at least. On the Greek acquisition there. So what is not clear from when you look at it, because they do have 500 or so kinda kiosks there with all having around 1,000-1,500 SKUs.
It's not always so small, but it can actually be more than just ice cream and a newspaper. But what they also have, they actually have 45 or so convenience stores and distribution centers and extremely good terms and conditions with for procurement. Therefore what it does give us is 40-50 convenience stores which are suitable for our business. And it gives us a distribution centers and procurement capabilities, and we could technically also deliver from these kiosks. We have a high density. We can also work on the inventories in those kiosks as it also works with delivery. Those kiosks are not necessarily the full-fledged kind of Dmart 3,000 SKUs that we have.
At least it will be a lot of them and we will have easily deliver things in a fast manner from them. Those are again a franchise, so from that point of view, we are also not operating those kiosks. From that point of view, I think it makes a lot of sense for us. It really moves us fast on the Dmart side, procurement side, cost side, and so on. On the third one, with the kind of Dmart as a service is what we call it. We have also done that as you have come to know, we are usually the first one to see innovation and testing innovation.
In some cases we realize quickly that something doesn't work and we step away from it. In some cases when we see that it works, then we step on the gas and expand it, such as Dmart in general. We see a good possibility to do Dmart as a service, but we're still in early stage and working with different partners to help them there.
Thank you very much.
Thank you.
Next question comes from the line of Sarah Simon with Berenberg. Please go ahead.
Yes. Hi. I've just got a few. First one, just wondering your thoughts on comments made by a competitor about the own delivery business being more sensitive to COVID restrictions being dropped, i.e., the marketplace is more resilient. If you could talk about what you've seen, that'd be helpful. Second is on Dmarts. Given that you've got to have locations for those Dmarts in densely populated areas, you know, obviously there's a rush to get customers, but do you believe there's a real first mover advantage because there's a limited number of locations where those can be sited? Then the third one was just a clarification.
Niklas, you said you didn't think that there would be a quarter-on-quarter sequential decline in GMV in Q4, but I think you said there will be a decline versus Q4 last year. I just wanted to check what it was you actually said, because that's not really consistent.
Perfect. Thank you very much. Yes. On the OD being less resilient, I will say no. I think there is some truth to that a typical delivery restaurant, they will stay open during the whole COVID lockdowns while a normal restaurant with mostly in dining might have shut down. At the same time, a lot of those in dining restaurants, when they lost customers, they still needed to stay alive, and therefore they opened home delivery during that time. I think net-net is probably a similar resilience between OD and marketplace. On Dmart location with the kind of first mover advantage. Yes, there is some degree of getting the locations, but I think by far more relevant as a first mover advantage is that you need a lot of scale per store.
If you only do 200, 300, even 400, it's not enough. You need to drive these orders per store high. You need to get to the five, six, seven , or in some cases, maybe even 1,000 orders a day, and we do that in some cases. That's when you start driving economics. Before that, it will be a tough time unless you have very limited SKUs or very small store, et cetera, et cetera. That is also not a competitive proposition to our customers. If you want to have a relevant Dmart store, it needs a lot of orders, and it needs to be significant, the number of them, because otherwise delivery distances gets too long, which is bad customer experience, but also the cost gets too high.
Therefore you need a lot of stores in a city, and you need a lot of orders per store. If you are the second player coming in, you will never break that catch-22. You will not get enough stores. You'll not get enough orders. It will cost you immense amount of money to advertising and building and so on, while a first mover will have this advantage. That's why I think it's a massive disadvantage, anyone coming in late. That's why it was also important for us to build a strong coverage very quickly, and building our service offering, increasing our SKUs such that anyone who comes in will be massively disadvantaged, and I think not very successful. The decline.
What I said is that it will not be a decline. I'll be very surprised if there's a decline quarter-on-quarter. It may not be as much increased quarter-on-quarter given that we grew 14% in this quarter. I would be very surprised if there's not a growth quarter-on-quarter given how good the start has been in Q4. What I did mean on year-on-year, I said year-on-year will go down. That is because December last year was so good.
Yeah.
in particular in the recovery system. Year-on-year will go down.
Okay. Year-on-year growth will go down.
Growth rate.
Yeah, yeah.
Not in absolute numbers, but in growth rate.
Yeah. Okay. Perfect. Thanks a lot.
I think so we have one or so question max?
The next question comes from the line of Andrew Gwynn with Exane BNP Paribas. Please go ahead.
Hi. A bit of an epic session, so I'll keep it to just one. Just going back to South Korea, but obviously very good profit progression in the first nine months. I'm not sure if that was significantly different to where you expected, but obviously very good progression there. The investment in own deliveries may be a bit less than you expected, yet the overall guidance still at minus 2%. I'm just wondering what else has moved to compensate, or actually have I misunderstood and South Korea has done what you expected? Thank you very much.
Thanks. Yeah, no, Korea, as I said, is doing really well. I think we're still so early here, and we are still commercial pricing. We still don't have an NCR product. You could easily, especially in a market in like Korea, we should be able to drive easily 3%-4% on an NCR product such as C2C or Joker or other things that have been developed and innovated on. You haven't even, you don't have any of that. It's close to zero. There is still so much to be done. We haven't sold our Open Listing over the last six months, which is a marketplace product, because we have been focused on getting 100,000 OD restaurants on board. There are many things that we didn't do last year and/or last six months intentionally.
We had to pick our battle. We had to focus. We had to get our resources on the most important thing, which is to turn the tide against our second or maybe third competitor, which is Coupang. Because they came from behind, and therefore it was the key priority. If we see that this is a little bit more under control, then we can work a little bit more on the other aspects, and that's why I think profitability should then also even further materially go up. I think this was just a first small taste, hopefully, on what to come.
I think, yeah, highly gross profitability is moving the right direction, but at the same time, I know that we did invest aggressively in end of Q2 and at least during Q3. We still invest aggressively to making sure we keep our share. We are following our plan, and the plan was to be at 2%. I think we still stand there around that level, I think.
I think.
Clearly room for improvement next year, especially because then we carryover, and that's important. As we move toward doing the slight improvement on gross profitability and contribution margin, there is sometimes that we overcompensate a little bit with visibility and so on. That's the gross profitability has a long-term effect that once you're there, you're there, and you will benefit from that profitability, while short-term, let's say awareness or so on is. That those costs are more temporary.
Thanks a lot. Thank you.
Both get both valid for the future. Can we do the last question? I think we're over time, and I don't wanna waste everyone's day here. Last question, please.
The last question is from the line of Clément Genelot with Bryan Garnier. Please go ahead
Hi, everyone. Only two. The first one is on Dmart. Would you be willing to, let's say, consider partnership between Dmart and some food retailers to get access to all SKUs and also private labels in order to accelerate in solar? My region says as much as you are making Gorillas as fast as Wolt thinks. The other quick question is on inflation. Do you see any food inflation, I mean, in some regions with restaurants raising prices of their meals and potentially-
Yeah.
harming the consumer demand? Thanks.
Yes. Yes, Dmart. We work very closely with a lot of big retailers, and we wanna be the best partner. The offering that we have now is so we can list them on our platform. They can deliver via us much cheaper than they can do themselves. We really care for that relation, that partnership. When customers really want to have more of this top up, instantly some top-ups, instantly this, cannot wait. I cannot wait an hour, and that's what the Dmart covers. The Dmart is really a complementary product to our customers, and it doesn't really substitute the larger shopping basket and so on that they will do from Carrefour, et cetera. Therefore, that's how it's been.
I'd also realized that some players like, let's say Carrefour and others, they feel like, "Well, we also wanna be able to deliver fast and having the economics even if the baskets are small and so on." We just wanna be the best partner. We will work hard to help them there and also then build Dmart for those retailers who wants to build it. We have no incentive. We don't want to compete with them in any way. We just wanna build a good consumer proposition. If we do it with them, it doesn't really matter. We just wanna build the best consumer experience, and for that, they need the Dmarts with them or we do it ourselves.
In terms of inflation, yeah, you see very quickly that if there is inflation in economy, you will also see inflation in food prices. The good part of the marketplace is that we charge a commission. If there is inflation in food prices and then there is also an increase in the money that we make, then you can argue there's less value of that money and such. We are pretty inflation-hedged, and we've seen that in many cases before. We had Turkey in the past. We had Argentina with hyperinflation. Those businesses are doing tremendously well. They grow faster than ever on GMV basis in euro terms, not in local currency, but actually in euro terms. The inflation hasn't really.
It can short-term impact us, but very quickly prices will be adapted and consumers will also get used to new prices. We don't see a reduction in consumer usage. Rather the opposite. Crisis countries or countries with inflation have done extremely well in euro terms.
Yeah. I think that's it.
Thank you.
Thank you very, very much, and thank everyone for listening in. I know this was longer than what we planned. I'm very sorry for this, and we just wanna be transparent and share all the details. Again, thanks for your tremendous support. It's always a pleasure talking to you. I think Q3 was another successful quarter for us with an outstanding top line, but also start moving on the gross profitability side. We also activated Dmart. We have improved on gross profitability in other areas. I looking forward to Q4 results. Yeah. Last but not least, enormous thank you to the working heroes. You are fantastic. You really rock. Thanks, everyone. Have a good day.
Thank you, everyone. Talk to you very soon, I'm sure.
Thanks.
Thank you so much. Bye for now.
Thanks. Bye.
Ladies and gentlemen, the conference has now concluded, and you may disconnect your telephone. Thanks for joining, and have a pleasant day. Goodbye.