Earnings Call: Q4 2017

Mar 21, 2018

Good morning, and welcome, everyone, to our Full Year 2017 Earnings Call. I'm joined today by our CFO, Christian Gertner and our President, U. S, Toby Hartmann. And the 3 of us will take you through the slide deck and the numbers that can be downloaded from our Investor Relations website on hellofreshgroup.com. We'll be focusing on 4 main topics over the next half an hour. Number 1, we want to review our fully audited 2017 numbers with a special focus on the Q4. Secondly, we want to take a closer look on our adjusted EBITDA results after we have focused on top line developments in our pre release in January. Thirdly, we want to provide you with some on the acquisition of Green Chef that we announced late last night and fourthly, we want to present our guidance on and the outlook for 2018. Let me start off on Slide 3 with a review of our 2017 numbers. If you look at revenue, we've increased revenue by 52 percent to €905,000,000 compared to our 2016 numbers. It's even higher than that in constant currency, and I'm going to say a few words to that in a moment. Secondly, if you look at contribution margin, we've also increased contribution margin very significantly to 23%. That's an increase of 6 percentage points over the 17% in contribution margin that we had in 2016. If you look at the adjusted EBITDA numbers, we had adjusted EBITDA of minus €70,000,000 in 2017. That's €13,000,000 better than in 2016 in absolute terms. And in relative terms, we came in at minus 7.7%, which is a 6 point percentage point increase versus the 2016 results that we had. One thing that often gets forgotten, but we think is very important, is our cash consumption. Cash consumption for the whole year 2017 was €45,000,000 That's €31,000,000 less than what we consumed in 2016. So if you look at those 4 metrics, all in all, we're very excited about the outcome and think 2017 was really a year where we showed very strong progress on all key operating metrics. If you look at our actually have increased our revenue growth in each quarter of 2017. Since we're active in a lot of different countries with different currencies, we tend to be subject to FX swings. Hence, what we've shown on this slide here, Slide 4, is our constant currency denominated growth rate over the year. We think that gives you the best perspective on our underlying core business and how we have developed over the course of the year. But you will see that in Q1 2017, we grew by 43%, increased that to 52% in Q2 to 53% in Q3. And finally, Q4 was really a breakout quarter with 69% growth in constant currency terms. In terms of group EBITDA, Q4 2017 really marked by far the best quarter that we ever had. It's if you look at the historic performance and the improvement over time, we were at minus 32% for the quarter in 2015. We improved to minus 10% last year, Q4 2016, and now for Q4 2017 came in at minus 2.4%. That's a year on year improvement of 8 percentage points and a quarter on quarter sequential improvement of 6 percentage points. That development was really driven by both our segments. So the U. S. Adjusted EBITDA margin came in at minus 1.2%, whereas our international business, our international segment actually showed the Q1 of full EBITDA profitability in Q4 2017 with a 2.1% adjusted EBITDA margin. While 2017 has been really successful for us on a lot of key metrics and also in terms of the company's development, if we think about 2018 and beyond, I really want to spend the next 3 minutes on introducing you to how we think about our core capabilities and how we think about the infrastructure that we've built up because we think that will really help you understand why we are uniquely positioned to take advantage not only of the milk kit market but of the wider fresh food market in all the different geographies that we're in. If you think about the core capabilities, and there are really 4 of those which we have identified and where we think that there are very, very few companies, if any, out there who have those same core capabilities and to the same degree that we have. That's number 1, the growth engine that we've built up. So a lot so a couple of years ago, we really decided for ourselves that internally, we want to build up our own ad tech and attribution solutions. And we believe that we have shown that we can acquire customers like no other company out there at very, very stable customer acquisition cost. And that is mostly down to the fact that we have built up solutions in house that allow us to deploy spend in pockets of the markets where others can't justify that. The second core capability that we have are the huge number of taste profiles that we have. We have millions of customers of customer data. And for each of those customers, we have locked a lot of signals from them. So we think there is hardly any other company out there, no FMCG company, no CPG company, no food delivery company that knows as well as we do what customers actually like to eat, what food trends are out there. And going forward, we think that this also positions us uniquely to really capitalize on that data. The 3rd core capability that we have is our direct to consumer supply chain. It's one of the largest direct to consumers chilled food supply chain. If you think about our U. S. Business or our U. S. Segment, for example, then in the U. S. Alone, you will hardly find any other company that delivers to as many customers directly as we do, and that also applies to all the other geographies that we're in. We have really built up world class teams across those supply chain functions. And going forward, we wanted to leverage those teams and those capabilities to really put out new products and help us grow beyond 2018. And then finally, the 4th core capability that we have is a very likable and approachable brand. Over the last 7 years that we've been around, we've built up a very high brand affinity and very high brand awareness in all the geographies that we operate in. And we think that the brand that we've built up really lends itself well to being featured in related verticals, in new products, in innovations that we're going to come up with. If you look at those 4 core capabilities and you also look at the infrastructure that we've built up at the same time, then I think you'll understand why we do believe that there is a lot of growth to come beyond 2018, 2019, 2020, and we're kick starting a lot of those initiatives right now. When I talk about infrastructure, I'm talking mostly about 3 different things. That's number 1, the team that we have hired in all the different geographies and where we really have managed to attract and retain top talent. Secondly, the fulfillment centers that we've built up. We've built up 8 fulfillment centers, spent about €50,000,000 in CapEx on those fulfillment centers. And at the moment, we have in our network a lot of capacity that we can fill with new products with growing in our core functions and with experimenting and prototyping new products that we want to launch to our full customer base going forward. And thirdly, it's really about the tech architecture that we have. So in terms of tech architecture, I think we've built up a very strong engineering team, a very agile organization. And that talent will really help us to, going forward, become even better in offering our customers exactly what they want and what they need. On the next page, you'll find what that really means for us. So merging those core capabilities and the infrastructure going forward, we think that allows us to really rapidly experiment with new products, with new consumer food products, given the data that we have, given the supply chain that we have, given the brand that we have and the fact that we know how to acquire customers at very efficient customer acquisition cost, We really think this sets us up together with our infrastructure that we can rapidly innovate. And while we had a limited a very limited product range for the first 5 years of the company, over the last 2 years, we've already kick started quite a few new initiatives. And a couple of those you can see on that page here. I just want to pick out 2 to underline how we think about that. So for example, if you think about broadening our product portfolio, then we had a number of initiatives. What we did, for example, after customer feedback was we launched desserts in our first geography in Benelux. That's for us a way to better monetize our customers and to increase our share of market or share of mail with those customer groups. Another example would be the smart fridges project that we launched in our German market. So in our German market, we entered the B2B market, where we partner with companies where we have smart purchase, where you have a credit card for every employee registered, and they can basically take snacks, they can take lunches and they can take other food from those fridges. It's digitally registered and directly deducted from their credit card. It's very easy. It's healthy snacks, and it helps us target different knee locations. So those are just two examples of many, many more examples that we have here on the page. And beyond that of many more initiatives that we have kick started over the last 6 months and that will help us to really, in the long run, drive growth beyond the core business and venture out into new areas and really take advantage of the core capabilities and infrastructure that we have. I hope that visualizes a little bit how we think about our position in the market and how we think about the growth strategy going forward. I'm going to turn over the word to Christian, who's going to take a closer look with you on the financials. I told you. Sorry. First, we'll also briefly comment on the acquisition. So Toby is going to Toby, our President of U. S, is going to take you through our rationale and some context of the Green Chef acquisition that we announced yesterday. Thank you, Dominik. Hello, everybody. Joining you today from Colorado. And as we had shared with the public yesterday, we have acquired Green Chef, which is the only true organic meal kit player in the U. S. Green Chef was founded in 2014 and offers a variety of specialty and dietary meal plans that are really truly complementary to HelloFresh's current offerings. What's important to know is that the company has been the 1st meal kit provider that is fully USDA certified for organic and gluten free meals and has thus pioneered its markets with a focus on organic, vegan and gluten free menus. We're very excited to welcome about 600 employees from Green Chef to the HelloFresh group. We're also adding 2 state of the art food manufacturing sites to our existing network. The sites are located in Colorado and also in New Jersey, where we already have another operating site. In terms of financials, we believe that the impact will be approximately $15,000,000 to our revenue per quarter starting in Q2 2018 as well as about negative 2 percentage points margin impact each quarter starting in Q2 to Q4 2018, however, broadly margin neutral in 2019. In summary, we believe this is a great addition to what you heard Dominik explain as part of our strategy because it is absolutely complementary in terms of meal plans. It's a complementary footprint, which gives us access to complementary assets, and it's leveraging our strong operations, logistics and culinary platform over here in the U. S. Lastly, what's important, it really offers us and allows us to provide the customers with the maximum choice win new customers in those segments. So we are very excited, and we'll start integrating the company today. With that, I'll hand it over to Christian Gartner. Hi, everyone. It's Christian, and I would like to spend a few minutes now to discuss in a bit more detail the development of our margin profile and talk about our outlook for 2018. So first, let's have a look at the development of our contribution margin. So we are very proud that we have managed to further expand our contribution margin in Q4 to a level of 25.7%. That represents an 8 percentage points increase versus the same period last year and a full 2.5 percentage points increase versus the Q3 2017 on a sequential basis. So we're very well on track versus our internal plans with the development. With that, when you think about Q1 2018 now, you should expect from us that we will manage to stabilize the margin on this very attractive level of to 26% in Q1 2018. Now let's have a look how that strong performance on contribution margin has actually translated into expansion on our EBITDA margin. And there you see on Page 10, and Dominik had alluded to that already, we effectively saw the same trend on the EBITDA level, I. E, a year on year improvement of a full 8 percentage points to 2.4 percent negative EBITDA margin in Q4 2018. That's the best quarter ever from EBITDA margin perspective that we've delivered. When you look at our underlying segments, it's also the Q1 where our international business as a whole is EBITDA positive with a margin of roundabout 2% in that quarter. From my perspective, that's even more remarkable if you keep in mind that, that business grew by north of 30% in the same quarter. So super robust top line growth in combination with profitability. Also, our U. S. Business has expanded its EBITDA margin very respectively in that period with a margin of roundaboutnegative1% in Q4 2017. Now when you think about Q1 this year, obviously, you have to keep in mind the seasonality that we have in our business. As you know, Q1 is a great period for us to bring in a lot of new customers, I. E, that's the period when we invest quite robustly on marketing. So the benchmark for our Q1 2018 adjusted EBITDA should be basically the value of the same period previously in the previous year, so the negative 14.4%. We are confident that we will continue the trend that we have delivered on over the last 2 years, I. E, expanding from that level by another 5 to 6 points in Q1 this year. With that, let me now talk about our overall outlook for 2018. So here, we are happy that we can confirm to you the outlook that we have discussed over the previous quarters as it concerns 2018. So from a revenue perspective, as a group, we're targeting growth of 25% to 30%. We're targeting growth in the U. S. Somewhat above that range. We're targeting our international business to grow at 20% -plus in 2018, and we're targeting growth in the Q1 somewhat above that range for the group. Now on a contribution margin level, we are targeting to improve that contribution margin versus the 23% in 2017 to north of 25% in 2018. And on the adjusted EBITDA level, unchanged to what we had discussed previously, pre any acquisition, which would also include Green Chef, we're targeting adjusted EBITDA breakeven in Q4 this year. So with that, I will pause here and would ask the operator to open up for questions. Sure. Thank you. We will now begin our question and answer session. We've received the first question. It comes from 2 of them from me. The first, is just a quick one on Green Chef. Just how you're thinking about M and A versus organic growth. So obviously, chosen to buy a competitor versus kind of replicating what they're doing. I'm just interested to know speed to market, the relationships, the operations they have, certification. I'm just wondering how you choose whether to do something yourself or to make an acquisition. And the second is on segmentation of customers and further developments there. So this Green Chef deal is targeting organic, perhaps higher end customers. Are you doing anything in terms of targeting the lower end, much like some of your competitors? So maybe I'll start by answering the second question first. In terms of segmentation, you're absolutely right. We do believe that Green Chef's customer base is very different from our customer base. We've obviously looked at that in due diligence in great detail, and we do think that this opens ourselves up to a larger target market than what we've been serving previously. Going forward, we're definitely always looking at additional avenues to increase our target market, whether that be on a sort of like other niche segments, whether that be on a different price level, etcetera, I think generally there's a lot of things that given our core capabilities and our infrastructure, we'd be perfectly set up to do. As to this date, we haven't made any sort of like decision or investments into other segments or M and A. And hence, I think right now, I'll leave you with the sort of like theoretic observation or theoretic approach that we have when it comes to customer segmentation and how we think about our target market. When it comes to M and A, I think what we have definitely seen is that there are a lot of players out on the market. I think for ourselves, so far, we have been very successful in building up businesses. I think if we were to do M and A, then there's definitely a lot of different variables that need to be fulfilled. What we particularly liked about this opportunity was the very strong manufacturing footprint that they had, the difference in customer groups that they had. So we really think that we can add to the capabilities that we already have built up in house by doing that M and A transaction. Going forward, we will always look at things on a case by case basis. I think generally speaking, you should expect from us that we are definitely rather builders than financial engineers. Hence, we'll be focusing mostly on increasing the penetration in our core markets. But if a good opportunity comes our way, then we'll certainly have a deeper look and look at that from all different angles. I just have one quick follow-up in terms of valuation in M and A and how you think about that. Is there anything you can say on this transaction or any transactions you might do going forward? How do you think about what to pay? So on this transaction, we've agreed basically with the party involved to not disclose the purchase price. But what you should assume is, as you know, at the end of 2017, our cash level was around about €340,000,000 that you should expect for the end of the Q1 of 2018 the debt cash level is still north of EUR 300,000,000, including this acquisition plus including any cash consumption that we have in the Q1. So it will not meaningfully impact our robust liquidity situation and balance sheet. Overall, when we look at the transaction, we think the, let's say, the opportunities that it gives us versus the consideration that we paid is quite attractive for us. Great. Perfectly clear. Thank you. Thank you. The next question comes from Andrea Faras of Morgan Stanley. Please go ahead. Your line is now open. Hi, good morning guys. I have two questions please. I wanted to check on the Q1 guidance for somewhat above the 25% to 30% range. I just want to make sure it's not lost in translation. What level you're thinking of? Because going to say 30% to 35 percent growth in Q1 would still be a really sharp deceleration from 59%. So are you thinking about sort of that type of range? Or are we talking higher? And then the second question is, you've clearly done tremendous progress operationally on driving up that contribution margin. But marketing costs have remained broadly unchanged on a year on year basis. So I'm wondering if you feel like going into the next years and moving into the sort of EBITDA profitable level, if you can sort of maintain the growth rates that you want with lower marketing spend as a percent of sales? Thanks. Yes. So Andrea, on the top line growth for Q1, we would overall stick to what we have said. That's going to be north of 30%. It will probably be north of 31%, but let's keep it until we are fully through that quarter to show you what exactly that is. And we see a very robust trend across both of our segments. In terms of marketing expense, unchanged to what we had discussed in the past. So from absolute perspective, you should expect that versus last year, marketing is our marketing spend is going up. As a percentage of revenue for 2018, you should assume that it's going to come down slightly versus 2017. 2017, it was around about 26% of revenues. So for this year, we'll come down by 1 to 2 points, yes? But within that area, it goes hand in hand with the robust growth that we're seeing in our business. And as we look towards 2019 onwards, it will then more migrate towards around about 20% level in 2019 and then below that level in the subsequent period. Great. Thank you very much. And so just one addition, when we look at our CAGs, we see a very constant level to what we've shown you in the past. So we continue to bring in great new customers at effectively the same cost to us as we did last year the year before. Thanks. Thank you. The next question is from Georgios Palakides of Exane BNP Paribas. Please go ahead. Your line is now open. Good morning, guys. First one is just on you kind of saw improving marketing efficiency through the year, whether you can add any reason for why you saw that? Was that due to issues going on with competitors? Or was that due to kind of the concept resonating with consumers? Secondly, on the contribution margin, could you give us any color on some of the drivers in and amongst that? Was that just natural leverage? Was that some of the early benefits started to come through from some of those product extensions that you've kind of given us some examples of? And then thirdly, just plans on Green Chef integration. Is that something that you're going to keep the Green Chef brand? Are you going to roll that out to new geographies? Thank you. So first on marketing efficiency. Marketing efficiency, I think, was mostly driven by 2 trends. Number 1, what I alluded to before, we have deployed a lot of technology over the past year that allows us to much better analyze spend in the different pockets of the market, much better make sense where we're actually targeting customers, how often we target customers, whether we need that incremental impression or not. So that is something where we have deployed the technology that we've built in house to our marketing efforts that has shown very good efficiency gains for us. Secondly, it's definitely also been a favorable trading environment. If you look, for example, at the U. S. Market, we have massively increased our share of voice in the categories. If you look at Google Trends, if you look at Facebook share of voice, etcetera, there is definitely you can definitely see that while we have spent very efficiently on the category, a few of our competitors have pulled back in spend, and that has certainly helped us to deliver that very good quarter. When it comes to contribution margin, the improvement the sequential improvement was partly down to ingredients where we have onboarded more and more suppliers from fully sourced directly. So once again, that's something that we have kicked off probably like 12 months ago. But over time, it always us 3 months, 6 months and 9 months until we have some of the merchants online onto our tech platform until they can start delivering to us. And some of those new suppliers came through in Q4. We've also benefited from lower fulfillment costs. Those were mostly economies of scale, where we had a slightly better fixed cost aggression and where we also benefited from the renegotiation of some of our key supplier contracts that we had. So really, those were just some of the examples that I gave you, some of the main drivers. As we gain scale, you can definitely see us incrementally improve that contribution margin going forward. And in terms of the benefit of some of the range extensions, you still think it's quite early days and that's still another lever to come? Range extension is something that we do step by step. I think it's important to understand that this is not something where you can, for example, scale from 12 meals to 20 meals to 25 meals on the menu or to launching a lot of new add on products. Given where we are right now with our product portfolio, we see us definitely as market leading and having a very attractive consumer proposition. We think it's going to be very, very hard for other companies to mirror the proposition that we have when they don't have the scale or when they're just starting out. Hence, definitely expect some more to shine through going forward. We're consistently investing in making our customer proposition more attractive. And some of that has come through, some of that will come through over the course of the year. Some of that will also take longer to come through and will be more an impact for 2019 and beyond. Has your question been answered? Great. Sorry. It was just on the plans for the Green Chef brand. Is that going to be integrated into are you going to keep that brand? Are you going to roll out into new geographies? Toby, do you want to take the question? Sure. So we have not made a decision in terms of branding when it comes to how we're going to roll this out to the market. As Dominic had shared, there's lots of other things, how we're thinking about the value proposition going forward and the offerings. So that's part of our integration work. The integration work will start effective today, and we think there's a number of opportunities how we can market that going forward. One thing that was for sure, you should expect that we will offer over time the offering of the Green Chef meal plans also to the customers that we have currently under the existing HelloFresh brand. Great. Thank you very much. Thank you. The next question is from Lisa Nizar of Deutsche Bank. Please go ahead. Your line is now open. Thank you and good morning everyone. I just have two questions, but I guess each question has a few elements. My first is revolving around Green Chef. Could you perhaps give us some idea as to how fast the company is growing in terms of its year over year growth? And when you talk about the 2% impact on margins, does that is that the underlying losses of the company itself? Or does that also include still expect HelloFresh to breakeven on a group level in Q4 2018? Then my second question revolves around margins in general. When you talk about the marketing expenses having benefited from the competitors pulling back a bit in Q4. Has that trend continued in Q1 from what you've seen? We've seen a lot of news around new entrants entering the market. Just wanted to get an understanding about how the competitive environment may have changed for you in terms of the marketing side. And also, Christian, if you can tell us the Q1 guidance for revenue growth, what sort of a ForEx impact can we expect on top of the organic growth from what you've seen thus far? Thank you. Okay. It's Kristian. I'll try to answer it in that order, Nizla. If I forget anything, please remind me. So in terms of revenue impact in 2018 of Green Chef, you should basically expect them to contribute as of the Q2 around about $15,000,000 In 2019, as respect to their growth, you should expect that Green Chef is growing broadly in line with the growth that you also assume for our overall U. S. Business. Now to your second point on impact on our breakeven timing, so the guidance that we've given is pre any acquisition, so especially pre Queen Shelf, both from a top line as well as from a margin perspective. We still strive to achieve EBITDA breakeven in the Q4 of this year, including Green Chef. But it will somewhat depend on basically the timing of the synergies that we are planning to realize, how quickly they come through. Yes, on the synergy side, we feel quite robust that there are a number of quite attractive synergies across procurement, logistics services, some other functions that we will realize over time. But the timing of those we need to work out as we as it's day 1 now of the acquisition that will impact somewhat basically the overall impact on our near term margin profile. Midterm, we feel very robustly and are convinced this is an attractive move. So understand if the 2% impact to margins included just underlying losses or just also the integration related expenses for HelloFresh to sort of bring it into the group? Yes. That's all in. Great. And my next question, Christian, was on the Q1 guidance, the ForEx impact and whether the marketing expenses have changed somewhat in 2018 with a step up in competition, for example? Yes. So on the ForEx, they are like for like, especially from the weakening dollar. There's about a 10 percentage point headwind because of that weaker dollar versus the same period last year. Still incorporating that, yes, we feel good about the guidance that we will be above the 25% to 30% top line growth range in Q1. Competition, we don't really think that will impact our marketing efficiency. If you look at our customer acquisition cost and how we spend against that target that we have defined internally how much we want to spend on the incremental customer, then that doesn't change with the additional competition. To be fair, we still see a very favorable trading environment. We haven't seen the entrance of any big players that will market online against us. And again, to be fair, it's not so much that we are in direct competition with other MeerKit players. When we think about how we deploy our marketing spend, it's much more that you're up against other e commerce categories, etcetera. And just thinking about the technology that we have deployed, we're very confident that we can continue to perform very well when it comes to marketing efficiency. Great. Thank you very much. Thank you. The next question is from Iza Brinsig. Please go ahead. Your line is now open. Hi, good morning. It's Kristinig from the German Magazine, Gundersen. I've got a question particularly concerning Germany. Could you tell us about any developments in Germany, the loss and growth maybe? And second, I didn't understand, because it'd be if you said that you want to roll out the Green Chef boxes in Europe as well or not? Thank you. So we have 2 segments that we disclosed separately. That's our U. S. Segment and the alluded to, for the first time reached EBITDA profitability. Within that segment, we have businesses at very different stages, some very early stage that we only entered in the last 2 years, others that we have been active in over 5 or 6 years already, and those businesses are at different profitability stages. We don't make any comments as to any individual country within those segments. But I think it's important to understand that within the international segments, we also have chopper fees that are at very different growth stages, some of them very profitable, others around breakeven, others still in the early days. And the number that you can see is obviously the sort of like weighted average across all those countries. When it comes to Green Chef, it's day 1 of integration today. We have spent significant time in our due diligence, and we have identified a number of areas for large synergies between the 2 different businesses, definitely on the operations side, definitely by rolling them over to our more favorable framework contracts that we have by giving them access to prices that benefit from much bigger scale than what they had before. And when it comes to marketing efficiency, deploying the technology that we've built up around marketing, around procurement, we do think there's quite a bit of synergies that the brand can benefit from. When it comes to international rollouts, we're certainly thinking about how to target those segments and international contacts as well. Again, since it's day 1 of the integration, it's too early to tell whether we're going to be rolling that out over the next 12 months to any other geographies, whether that's going to take a little longer. 1st, we want to realize the synergies, get the business in line with all the metrics that we have for our core business, and then we think about international expansion. Okay. Thank you. Thank you. We've received one follow-up question of Robert Berg. Please go ahead. Your line is now open. You can ask your question now. Hi. Yes, thank you. Just a quick clarification on whether I heard correctly on a question 2 questions ago. The 10 percentage point headwind in Q1, but you'll be above the revenue guidance of 25% to 30% even incorporating that? So are you saying you'll be at least 35% to 40% like for like? Or did I misunderstand what you're saying? So the 10% headwind was referring to the U. S. Dollar, yes? Our U. S. Business is roughly is roughly 60% of our business. So it's on the if you look at it on a group level, it's a 6% headwind. And yes, you could add that on top of that to account for like for like, yes. Okay, great. Thank you. Pleasure. We will have to dash unfortunately. So if there's one final question. Yes, there's one final question of Andrea Faras of Morgan Stanley. Please go ahead. Your line is now open. Thanks for taking the extra question. Just one more. On Dominik, you've mentioned that some geographies in the international segment are already very profitable. Could you give us maybe without giving us maybe the name of the country or whatever you feel comfortable with, what the highest sort of EBITDA margin is for one of your individual geographies? Thanks. So given that the 2% EBITDA adjusted EBITDA margin was the weighted average for all geographies, you can assume that the best geographies are meaningfully above that, but we don't go into more detail here. I think it's still early days for our business. And hence, I think reporting on 2 segments is the right level of detail that we want to provide here. All right. Thanks. Thank you. As there are no further questions, I would hand back to you, gentlemen. Thank you, everyone, for attending our 2017 full year earnings call. I hope we could shed some light on not only the 2017 performance but also the outlook for 2018 and how we think about our growth strategy over the course of the year and beyond. One of the things that you also heard about was the Green Shelf integration, and I think we answered quite a few questions around that. Going forward, I think we're still in high growth mode. Hence, I think definitely expect from us that you'll see more and more initiatives that will continue to drive really long term growth and long term profitability. And we're very excited for what 2018 will bring and look forward to welcoming you on the next quarterly earnings call then for the Q1 results. Thank you, everyone.