Good morning, ladies and gentlemen. Welcome to the third quarter results of Eurocash for 2022. Together with me, we have Paweł Surówka, the CEO, and Jacek Owczarek, the CFO of Eurocash. We will start with the presentation of the slides, and then we will have the time for the Q&As. Paweł, go ahead.
Yes. Thank you very much, Adam. A short introduction and one slide that we've added to this presentation. After our strategy, we decided to also give you a pit stop on each of those quarterly results where we are standing in terms of realization of the strategy. A lot of you have commented on our strategy that it is ambitious, that it goes in the right direction. Obviously, you've also highlighted that there's a certain execution risk linked to it. We would like to, you know, address this head on and give you a transparent feedback on where we are standing in terms of realization of that strategy.
In this respect, one can say that the third quarter of 2022 brought us a decisive step towards realization of our strategy for 2025. Obviously with, you know, the biggest ambition out there, reaching the PLN 1 billion EBITDA at the end of this term, 2025. As we've already said last quarter, we see ourselves as starting with 2022 going well above PLN 500 million EBITDA, which will be a first for Eurocash. You know, we say so being given that on the last 12-month average, we have already reached PLN 516 million.
Being given that we're looking relatively favorably at Q4, we believe that it is safe to say that we will pass that threshold of PLN 500 for this year, and that's how, you know, pre-IFRS we set to be well-positioned to reach the PLN 1 billion within three years. Obviously, it's an ambitious target. It's doubling our EBITDA, but we believe we are on track of reaching it. Another strategic commitment that we have set for the end of this year was to go below debt to EBITDA of 1.5, and we set this target for end of this year. As a matter of fact, you know, Jacek and his team were able to reach it even by the end of this quarter. You can see 1.48.
This is our commitment to constantly deleverage the company, which we believe is the right path forward given the interest rate environment we are in. That's going to be also a key focus of the management for the next year is to reduce our leverage and reduce our financial costs so that more of the EBITDA actually translates into cash generation and into net income. Another commitment and strategic target that is quite important for us, it is making the traditional local stores more efficient, taking out costs and helping us work on data. A key enabler for this strategic target is the connection of those stores to our POS systems.
That's a very important step, which allows us to talk more efficiently with those stores to get more data, work more efficiently also with suppliers. That's in this respect, the number of connected stores is a key KPI that we follow. We've told you that by the end of 2025, we would like to have 12,000. It's an ambitious target. We started with a little bit less than 3,000 when announcing the strategy. Now we can say we moved a decisive step by signing a strategic cooperation with Comp, which is running another platform called mPlatform that we are now working together under the Eurocash umbrella. We have two key benefits from that.
One is that Comp, as one of the leading providers of POS systems in the country, will be, we believe, a much more efficient player to roll out our POS systems for us in the market. The second is, Comp brings already a lot of connected stores, including our own stores, to that deal. That means that, through that very cooperation, we were able to add over 1,000 stores with one stroke to our connected stores. That means that for the Q3 we already reached 4.7 thousand. A good step forward to reaching the 12,000. I think that being given the level of cooperation and dynamism that we see here, that bodes well for reaching that target altogether.
Another goal that a lot of you have hinted, you found ambitious in the current competitive environment, that is, our commitment to add 500 franchise stores each year to our network. In this respect, you know, we'll also want to communicate on that. In that last Q3, we've added 171 stores. I said that it's a good figure being given that we want to have that figure by 500 every year. You know, still investing in the market. We do that a little bit more, you know, disciplined in terms of really payback period and also, how we're investing between franchise systems. But still, we are adding those stores and they are also adding to our loyal customers and building our sales in the wholesale part.
Speaking of which, a very broad highlight of the quarter. Overall, you know, we can say that the quarter has been good. We've been able, for a fifth consecutive quarter to increase EBITDA, increase sales successively, and therefore also increase our performance. On the wholesale part, pretty much everything was growing and that sales growth that came from leverage from inflation, but also still recovery from the post-COVID, has helped, you know, using the operational leverage to also increase our EBITDA margin, and therefore a very strong rebound and very strong figures in the wholesale part that we also see continued into quarter four. In terms of retail, also good like-for-likes, particularly in formats like, you know, our own stores rebounding strongly. Inmedio rebounding.
Overall, you know, sales growth of 26% which is good. Obviously we were not able to expand the EBITDA margin like we did in the wholesale part because partially we need also to invest into the consumer who, it needs to be said, becomes more cost sensitive and that is definitely something that we see happening through inflation. We can come back to that a little bit more. Still, we can definitely see that Delikatesy Centrum are getting on top of their operational challenges. You know, EBITDA and sales performing in line with our expectations.
In terms of the projects, Frisco adding to sales as expected, and we believe well on their way to reach the PLN 1 billion sales target for 2025, and also the target of being profitable by the end of that term. Another, I would say, rising star that we believe really aspires well to become a part of our core retail segment, which is Duży Ben and has shown 26% of like for like, which is, you know, by any means and standards a very, very strong, very strong figure for a player that becomes a sizable player by now. Obviously that still does not show in the EBITDA part because, you know, we are still investing very heavily in the growth. Duży Ben having added almost 150 stores within the last three years.
Those stores need to mature. They need to reach necessary scale. But they do, and we see that coming up as we expect. We also see Duży Ben gaining not only scale and growth, but also profitability in the foreseeable future. With that, you know, I would maybe pause here as a you know round out view for that quarter that we believed was very good. I will hand it over to my friend and colleague, Jacek, who will take you through the figures. Thank you very much.
Thank you, Paweł. Welcome, everybody. Let's start with our view on market and trends. As you can know, we are living in the inflationary environment, so there are no surprises here. The inflation, of course, it's impacting our consumer. What we can feel on our side of the market, that the consumer is still there, which I will present you know, few slides in later, showing the number of transaction in our segment, and it seems like it's supporting our sales growth as well. Going into details, I think that's the slide which is showing the rebound. As you may remember, because a big part of you are following us for quite long, the fact is that during the COVID time, the so-called small format or independent shops were under big pressure of discounters.
Still discounters are growing the fastest on the market. On the other hand, all segments we are cooperating with, if you are looking into the details, are also having positive dynamics. The highest ones are in stores between 40 sq m -100 sq m . For example, big part of our ABC and Groszek stores belongs here. Then the second one, it's in the small supermarkets, 100 sq m -300 sq m . The stores are growing more or less with the food inflation in our segment. Looking into the transactions, what I mentioned before, please have a look at the comparison of September 2022 with September 2021.
The fact is that more or less, we are at the same level of transactions estimated by CMR, which is one of the agencies who is trying to do it. The average basket is growing too in line with the inflation. The number of the items in the basket, it's still very comparable with what was happening last year. The same results you can find out on our website. You could see that the number of transactions during the COVID was really affecting our segment much more than what is happening right now. The total food inflation. We know that we had the peak on seasonal products during the summer.
Right now somehow the number of the increases we are receiving from the producers is stabilized. Let me go, you know, into the details. First, the wholesale segment. As Paweł mentioned, we are growing 14%, which, you know, on our B2B clients, it's quite a remarkable number. Also what is happening, we are improving our operational leverage. As we are mentioning over the years, we are diluting the fixed cost base not only on the logistical platform, but also through using digitalization tools more and more. Also on the right-hand side on the slide, you can see that we are growing across all segments also, as it was mentioned by Paweł.
That's good news because, you know, of course, that seems like, you know, we are distributing all assortment altogether. Going into the details of digitalization, right now, 55% of sales is done through eurocash.pl. It's growing, you know, from 44% last year. Also number of the shops who are cooperating with us is growing and reached 14,440 stores. In retail, I think I'm quite happy to say that we have the fifth quarter of improvement of our operations. If you are looking at the top line growth is 26%. Part of this, of course, is going from the consolidation of Arhelan.
That's the last quarter, which Arhelan acquisition is not yet in the base. We started to consolidate from Q4 last year. In Q4 last year, you will start to see the nominal growth rates not coming from consolidated numbers. At the same time, I'm happy to say that we are growing in all other segments, including the franchise business, own stores, and also in media, which is allocated to this segment. At the same time, EBITDA grew to more than PLN 100 million, which represents quite stable percentage of margin. You know, here the variation which you could see here, which is 0.2%, it's really coming from the precision of IFRS, you know, the lease contracts.
Let's go into the projects. Of course, the three major projects which we are running right now, Frisco.pl, which, you know, the number of clients is growing steadily, not only in the new areas, which is not a big surprise, because we double the number of clients year-on-year, but also in Warsaw, which is the most stable market we grow the number of clients by 15%. Sales in Q3 was year-on-year 47% up and reach PLN 85 million. Please also remember that for Frisco.pl, actually, the Q3 is the weakest one, so we have a little bit different seasonality than in the rest of the business because we are placed in the big cities and of course, during the summer, people are going for summer holiday.
The bigger cities demand, it's lower. That's a little bit different pattern for those of you who would like to dig a little bit into the details. Average basket is PLN 297, which is very satisfactory. It represents stock admissions, so it's equivalent of hypermarket visit, if you wish. Duży Ben. We keep continuing going into the expansion of Duży Ben. The network reached 277 stores. We're on the good track to be near 300 at the end. At the same time, like-for-like same-store 25% and then total sales 73% of total growth.
More or less, you know, 40% of network it's profitable as of now. As we said, next year, we're expecting that over the next year we start to have breakeven in Duży Ben as a project. The last also, maybe I will only shortly summarize, as mentioned by Paweł, our strategic cooperation with Comp translates into more almost 5,000 right now installation of EPH machines or POS systems, which is big part of our strategy regarding the data. In summary, of course, we are keep investing. The investment, I think it's also comparable on quarter-over-quarter.
The biggest growth in Duży Ben and Frisco.pl. I think it's right now Duży Ben, the biggest project contributor from the perspective of sales for the group. Let me summarize consolidated numbers. Maybe I should start with the phrase that actually, you know, our 12 months EBITDA is the highest in the history of the company. Also the Q3 nominal EBITDA, it's the highest in the history of the company. Somehow this year it's quite favorable for us. Also, we improve year-on-year all financial indicators, including net profit, which last year was lower than by PLN 10 million than this year.
All together, I look at this quarter and also the performance of this year as a good one and also we want to keep it going. The last element I'd like to share with you is cash conversion. We keep the cash conversion at around 18 days. It's a little bit differently this quarter than in the previous one. First of all, we have some seasonality in payables, which you can observe also in the historical data, if you would compare, you know, 2022 or previous years. We compensated partly with a little bit higher usage of factoring in receivables, but altogether, the conversion rate is kept. Financial costs, of course, are growing due to the increase of WIBOR.
We try to manage this through the financial incomes, which is mostly representing the discounts we are getting from suppliers.
All in all, the net debt situation is under control. As again, we pointed out at the beginning of the meeting, we reached 1.48x net debt EBITDA based on our banking covenants after IFRS, it's three times. As I said, EBITDA 518, which is 12 months rolling. EBITDA is the highest in the history of the company as well like EBITDA, which is after IFRS. Altogether, I think that's the summary, financial summary. Let me go into Q&A.
Yes. Now we start the Q&A. We already received three questions. Let's start with this one about the ambitious target of 500 new stores annually, currently at +171 in this quarter. Are we able to achieve such increase? The clarification about Arhelan shops, are they within this number or not?
Yeah. The 171 that we are showing in terms of new stores for this quarter do not include Arhelan stores. Obviously, you know, they are not in the base, but we didn't count them as expansion because this is something that we have already communicated to the market and everybody's counting with them. The 171 are new stores that have been added to our franchise systems, be it ABC, Groszek, Duży Ben. Each of them, and Delikatesy Centrum, obviously, each of them is doing their expansion work. We are working quite selectively and now, you know, looking holistically at which store openings add most to our sales value and pay back as quickly as possible.
I can confirm that the 171 do not include Arhelan, and that is part of our organic growth that we've been doing for the last quarters and will be continuing. Therefore, we do stay quite optimistic that we will be able to reach that 500 store target for the entire years.
The next question from Sebastian Walentyńczyk is about the sales of own shops of Delikatesy Centrum. How is the process going? The second question from Sebastian is, are we going to further deleverage to reduce net debt?
The first one is, you know, no change in the status. We maintain our, you know, point of view that those stores are not strategic. We're not investing in new own stores. If I say we added 171 stores, it's only franchise stores. We keep this asset as non-strategic. We are still under a regime where we say, you know, options review is underway. We have no new elements to add to that. Should there be any elements, we will inform you in due course. That's for the first question. The second question, yes, our target is to deleverage the company further in two ways. I think Jacek has pointed out. First of all, we would like to bring the net debt EBITDA level even lower.
It is already in a quite, you know, comfortable level for a trading company like ours. Being given the interest rate environment, we just want to keep our financial costs as low as possible and therefore believe that we should deleverage further. We will, you know, use the operating cash flow that we are able to generate through stronger quarters like these to deleverage further. On the other hand, as Jacek also pointed out, there's financial costs also linked to our trade financing. We are constantly in discussions with our suppliers to also get them offset by cash discounts for paying on time. Obviously, with the interest rate hikes that we have all the time, these are discussions that take some time.
You might have some lags between one and the other, and therefore, you know, that's something that needs to be managed by us. You know, we are on top of this, and therefore, we believe we'll be able to bring the financial cost of the company to a level where, you know, a big part of the operating cash that we generate will end up also net income. That's our target as management.
A follow-up question on Frisco.pl and Duży Ben, third quarter results. In terms of the results, so EBITDA for such formats. One comment on our side is that we report EBITDA on the segment level, be it in retail, wholesale, or projects. Generally, we do not go so much into details per particular format. However, we've presented the EBITDA of the segment in the slide. Of course, the EBITDA is in the negative area. I don't know, Paweł, if you would like to comment on the expansion of Frisco.pl and Duży Ben versus EBITDA.
Yeah. I'm afraid not much more detail I can add here. You know, Frisco.pl and Duży Ben are both in quite competitive landscapes. We therefore do not, you know, comment on their respective profitability per detail, but only per segment. That's particularly true for Frisco.pl.
You know, we maintain our guidance. Frisco.pl will become profitable at the end of 2025, and it is profitable in Warsaw. We are currently, you know, investing into an additional warehouse and also adding sales in the locations where Frisco.pl already is. That, you know, takes something of a cash burn, and that is kind of factored into the business model. What we are doing currently is we are reviewing together with the management board of Frisco.pl also their operational effectiveness in terms of handling those cities outside of Warsaw, looking at whether we can get profitability there even sooner. In terms of sales development and clients, we see, you know, their growth is in line. In terms of average order value, it is growing.
We would like to have it growing even further with the inflation, and, you know, they are working on it. That there could be a little bit more coming our way, in the future. In terms of cost management, that's a key highlight of ours. Again, nothing more I can add here than we really believe Frisco.pl will be profitable by the year-end of 2025. In terms of Duży Ben, I'm not sure that we give guidance in terms of their break-even. Well, definitely we see the break-even of Duży Ben in the three years period of the strategy. When you look at, I think we've also highlighted in terms of stores that are profitable.
When you look at the maturation of the stores, we already have almost half of the stores that are profitable per se. As I mentioned, 150 stores have been added in the last three years. We see them, you know, coming over break even, you know, every month. It's really a matter of a couple of quarters until Duży Ben as a company will become profitable again. This is a little bit, you know, really the moment where the EBITDA reflects the buying of the growth, but it should come back into at least neutral territory quite soon.
Next question from Tomasz Sokołowski and similar from Grzegorz Kujawski about this quarter and the following quarter, so forth. The first about the retail stores traffic, taking into account comments from Jeronimo Martins and Dino that customers started to shift formats from small stores to discounters and similar trading down behaviors. How do we see the margins like-for-likes in the fourth quarter and going forward?
Okay. Let me take this one. The fact is that we are also observing that consumer is much more cautious in terms of price. If you are talking to, on the other hand, about the our possibility to sell to the small stores, we don't see this drop. As you could see, we are growing with a little bit higher than the normal growth presented by by Nielsen. Also in the volume terms, we are growing as well. I think our market share, I'm just talking from the top of my memory, but was growing something like 0.04% or 0.05% in relevant wholesale market. That's the fact of historical fact.
Also, what is happening, I think, which is new phenomenon somehow is helping us, is the fact that the sales to the independent guys is growing a little bit faster right now than to our franchisees. Franchisees are very stable, normal business as usual, and we started to grow to sales to the independent guys. If confirmed, you know, in the coming quarters, which I think we can talk about in coming quarters about it, that would also indicate that we are gaining market shares and somehow we are more attractive than our wholesale competitors to our clients. I assume that we would not have this demand to us if our clients would not sell to consumers. That's a little bit probably different view than Biedronka or Dino.
The fact is that consumer is much more cautious. That's also I could confirm, yeah, as stated.
Follow-up question from Grzegorz, a more detailed one about the basket value. I guess we can bring back the slide on the basket value reported by the market agencies. Grzegorz is asking about the basket value evolution in October and November. Already Q4 in small format. How do we see that, especially since last year, the growth was accelerating exactly around October. How is it going this year?
We don't have the details here, but what we are discussing at our, of course, board meetings with our business units or our sales formats, the fact is that, as it was presented on CMR slide, that the value of basket is growing faster than number of items inside of basket. Somehow, you know, these volumes are lower. On the other hand, I'm not recalling really, you know, any fundamental change in October, which is close or beginning of November. I think from our clients' perspective shops, I think the only difference here could be that last year, the increase of excise tax on vodka was bigger than this year. For sure, appetite of our clients was bigger to stock up than I, we're expecting this year. That's the only indicator I have off the top of my head.
One more in this direction. Third quarter volumes at cash and carry and Delikatesy Centrum. Not only the sales itself, but how it breaks down.
I think again, we don't have this kind of details here, so please if you could contact, as you know, offline, and we'll try to provide because otherwise it's guessing.
The question from Sebastian Burczyk about the reverse factoring in the third quarter. As we've published that in the financial statement, it was more or less PLN 1.2 billion at the end of the quarter, further being reduced in the fourth quarter currently.
The usage of the factoring was maybe a little bit lower, but I'm not recalling that we reduced the lines. Lines are exactly the same like last quarter. Let me check, you know, in the financial statements. The fact is that the lines were reduced at the end of last year. In reality, from cash flow generation perspective, the fact is that we generated enough cash to, you know, go into the normal activity without this factoring clients. Plus, we reduced the nominal value of Eurocash Group debt. We have the- Year-over-year.
No. Year-on-year, it's true. Quarter-over-quarter, if I understood correctly, the question is not true. Year-on-year, yes, we had the reduction of factoring, last year, fourth quarter, and it could start in previous months. Okay, I would just recall it and come back. Let's take the next question, please.
Meanwhile, we have a question from Tomasz Sokołowski about when do we expect Duży Ben to reach this breakeven that we see within the framework of the strategy?
Yes. Within the framework of the strategy, I think you can, you know, you can assume that being given that, you know, there's a good part and almost half of the stores that are already profitable and another half that has been opened within the last two and a half years. You know, it takes a maturation of, you know, almost two years for them to reach breakeven. You can see that there's a runway of one and a half years that most of those stores should be profitable. I think that's a fair assumption.
Coming back to the previous question, please refer to pages 16 and 17 on our financial statements. I think it's the whole story with comparable numbers. As I said, the factoring was cut last year, not this year.
Another question from Tomasz Sokołowski is a follow-up on this independent stores that Jacek mentioned. Why do we think they buy more than our franchising partners? The first feeling is, of course, that we tap into the market that we were not there before, right?
Yes, of course. Unfortunately, we don't have 100% market share yet, but on the other hand, we can grow out of our competitors. I think that's the biggest difference which is happening here. Also, we know, whatever, we could think, but the fact is that from the producer's perspective, I think it's also we feel it, that they support much more bigger organization than the smaller ones, even from the like we do from the perspective of allocating credit limits or, you know, how to secure the cooperation, how to secure the relationship, you know, volumes, market shares. Of course, you know, somehow this trend of concentration, it's really happening.
Yeah. Just to maybe to build on what Jacek was saying, as you probably recall, within our strategy, we also guided you that we see wholesale as an institution, also, you know, after the integration that we are now performing should add market share coming from almost 23%-29% overall market share for the wholesale segment. We see that, you know, the market share gain. We will see that this year, and we believe that our wholesale segment will add almost one percentage point of market share overall. That is also a function of the stores that we've added to the franchise system that we have seen.
It's also a wholesale, gaining ground also in terms of independent players that are not part of our franchise network and that we are selling to. As Jacek rightly pointed out, a big part of that is also our service level that becomes key in situations like these.
New question comes from Przemysław Staniszewski about the costs in other segment, which came in above PLN 40 million, so higher than last quarter and a year ago. Just checking back on the quarters last year in 2021, the costs in this other segment were between PLN 26 million and PLN 41 million. Not so far away to this figure that we reported this time, but there is also some seasonality to that, right?
Yes. Przemko, I'm sorry, we know each other. The fact is that the seasonality here comes really from, as you know, from the two main factors. First one is timing of creation or not provisions between our management account system and the statutory numbers. We have the difference in recognition of provisions. That's number one. Number two, it's really connected with the fact that the bonus for the employees, somehow, you know, we accrue over the period of the year and based on the accounting policy, we can release it faster if we know that part of the business units are not performing well to receive this bonus.
This year we're expecting everybody to deliver budget because we have very good year from the perspective of operational performance. That's probably the two biggest items. If needed, we can dig a little bit more into the details.
I don't see any further questions in the panel. Is there still anyone willing to ask questions at this Q&A session?
Just to build because, you know, because actually the question of Sebastian was what is the factoring limit use today? The answer I think Jacek has given. By the end of this quarter was PLN 1.2 billion, that is, compared to almost PLN 2 billion same time last year.
We have a new one from Sebastian Walentyńczyk. What's the assumed increase of payrolls for the next year considering the minimum wage increases?
Of course, we'll increase payroll based on the minimum salary like we did this year. Elasticity of the model, I think it's very similar next year like this year. As you can see, we improve also our gross margins. Part of this goes into the prices, part of this goes into this effectiveness, especially on the wholesale side. The most labor-intensive activities like, you know, own stores, cash-and-carry or logistics somehow are covering this one. We are not expecting much bigger salary increases than the regular increase as per year. I think it's worth to mention, maybe Paweł can build on this a little bit more.
The fact is that right now we don't have any special pressure on salary increases or shortages of employees. Somehow the situation I think on our side is quite stable.
Yeah. I think I can only confirm that we, you know, there is a certain influx of people and, while at the beginning of the situation in Ukraine, we did have a lot of churn in the warehouses. I think the situation has now stabilized, so we do not see our logistical operations struggling to get people. Obviously, you know, we are prepared for cost increases and, you know, those discussions will be ongoing. We believe we can keep this to a level where we also will be able to, you know, offset it partially by productivity growth.
A new question from Przemysław Staniszewski about the estimation of net financial costs for the next year. Having in mind the high interest rates in third quarter, it seems quite high and consuming much of EBIT.
Okay, we are not giving forward-looking statements, so I can tell you how to calculate. I think our assumption, as Paweł said, is to deleverage the company further. Also if you are looking in our cash flow, operational cash flow this year, it's after three quarters around more than PLN 600 million. Our CapEx on annual basis, it's somewhere around, you know, PLN 250 million-PLN 300 million per year. The rest is really going into the serving of debt. Depending how you, what's your view on the reduction of this debt, somehow it translates into the reduction of the financial cost. Of course, you know, if central bank will increase reference rate, it will directly go into the cost itself.
Generally speaking, I would assume historically that we are in the normal cycle of Eurocash, so we are deleveraging the company and delivering the cash flow. Maybe one more point, we are not planning any, you know, big one-offs like M&A right now. That was always a distraction in the picture. That's really normal cycle of 18 days, which we're showing negative cycle of cash, which we're showing on our presentation.
Mm-hmm. About the cost, the financial cost itself in the P&L, as we have not yet not only the debt servicing within that position, but also the other things like currency changes.
The only difference as Adam said this quarter is that we have negative impact of revaluation of IFRS 16 contracts -PLN 15 million due to the fact that zloty was weakened between Q2 and Q3. That's the only one-off really. The rest it's much more proportional. We'll have slight increase of costs connected with interest on IFRS 16 due to the fact that the reference rate I mentioned, central bank reference rate, as I mentioned, is growing, but that's not very significant. I think really the clue is in the assumption regarding what's the deleveraging capacity of Eurocash.
Okay. As we don't have any further questions in the panel, Paweł, any final comments for the record-breaking quarter in terms of the EBITDA?
No, I think, you know, I will only restate that, you know, I feel that the company is very focused on delivering the strategy and delivering ever better results. I think we have a very good energy within the management board and the wider management team and also the entire company to really, you know, show the power of our company. You know, I think that shows and I believe that we will be able to continue delivering even if, you know, obviously times are challenging. Nobody knows what this next year will bring. There's still a lot of organic operational improvement that I see within the company where we can unlock the value for us and for you, the shareholders.
You know, whatever the headwinds, I think that Eurocash will be able to improve on its past performance and hopefully, you know, the macroeconomic headwinds that we see now will you know be not as present as we all expect in the next year. Thank you very much.
Thank you.