DP Poland PLC

LSE:DPP

Earnings Call Transcript

[Alex Schlich, executive]

Good afternoon, and welcome to the DP Poland Half Year Investor Webinar. We're delighted to have with us today Nils Gornall, the CEO; and Edward Kacyrz, the CFO. I'm just going to go through a few admin points before I then hand over to Nils. [Operator Instructions] Today's webinar will cover the half year results and the current trading update. You'll also see a poll on the screen. We appreciate it if you could just complete that poll. And following today's webinar, you'll be redirected to a short survey, and it would be really appreciated if you could spend a few moments completing that.

I think that's all the admin points addressed. So I'd now like to hand over to Nils Gornall, the CEO of Domino's Pizza Poland to start today's presentation. Nils, would you like to now share your screen?

[Nils Gornall, executive]

Okay. How is that, Alex?

[Alex Schlich, executive]

Yes, that is perfect. Nils, that looks great.

[Nils Gornall, executive]

Excellent. Okay. Welcome, everybody, and thanks for your time today. You have Edward, our CFO, and myself on today's call. We'll be focusing on our half year results, the health of the business and then the main drivers for the business moving forward as we ramp up to grow our system sales, store counts and franchise-owned stores.

Okay. I won't go through these numbers in great detail. We'll speak more on future slides. But all the business KPIs are heading in the right direction and current trading is really strong. Delivered in H1, group system sales were up 5.6%. We have improving EBITDA. Edward will speak more on this in the next few slides. The big move for us was the acquisition of Pizzeria 105 and corporate store sell-downs to internal staff is progressing really well. We opened 4 new corporate stores and continue to renovate our older sites. Our franchisee store count is growing fast and margins remain healthy. H1 results was 8.4% EBITDA.

Post-period system sales is improving, and it's been a really, really good summer of sales for us. So we're really extremely happy. H2 focus. Look, we have more corporate store sell-downs, more corporate store openings and the Pizzeria 105 stores joining Domino's Pizza.

So H1 financial results. So the group delivered record sales in H1 2025 and also record group revenue, GBP 28.7 million. We want to be a franchise business. And as of June '25, 17% of our stores were franchisee-owned, up 7% from a year earlier. Group EBITDA increased by 22.5% and group pre-IFRS EBITDA was GBP 0.07 million (sic) [ GBP 0.7 million ] We remain focused on improving profitability and strengthening margins, incentives such as our commissary upgrade, where we're consolidating 2 commissaries into 1, our sub-franchising of corporate stores to franchisee partners as well as the growing system sales, growing store counts and -- growing system sales and growing store counts from our Pizzeria 105 acquisition will only strengthen profits coming into the second half of this year and into 2026.

Edward, if you want to go through our financial numbers.

[Edward Kacyrz, executive]

Sure. They are all, as you can see, our P&L is improving year-on-year for the first half of the year. What is very promising is the top line growth, both for the system sales as well as for the revenue. System sales here, as you can see, 5.6% is driven just on the Domino's stores, 105 stores due to the takeover in the beginning of this year, we do not have, let's say, a clear view on how they perform on the sell-out but they are also doing very well on the selling parameters. This is what we see. And we summarize it with the Domino's stores in the below section. So on the revenue perspective, they are adding about GBP 0.4 million to the business. We end up first half of the year with 8.7% better than the year ago. And this is a very good information, especially if we combine it with the cost of sales and with the main drivers.

As you can see, 2 lines that were a bit worrying for us for the last 2 years, definitely softened this year. This is materials and energy as well as the payroll and social charges. They grow much slower than the top line system sales and revenue. We see that the pressure on the cost in energy and materials is softening. It's just 5% year-on-year. On the other hand, the payroll despite the pressure on the minimal salary wages increases we found the way how to be more efficient at the production side, how to use more efficiently the resources that we have in the commissary and with this, we were able to keep the payroll and social charges under control.

Cost of goods sold, this is a mixture of 2 things. The first thing is connected with the food cost mainly cheese, which is driven by the milk prices on the commodity stock exchange. We secured this business with searching for the alternative suppliers. On the other hand, the cost of goods sold concerns the full cost that is generated on the supply chain. Revenue is an element of a mixture sellout from the stores, our stores and selling from the franchisees. So automatically, because the franchise network is growing, because of goods solds is the portion to the revenue is growing a bit faster.

Group adjusted EBITDA GBP 2.5 million versus GBP 2.1 million last year is also a good sign for the future despite having in mind bit worse beginning of the year, especially quarter 1, we see that we were able to catch up with the EBITDA for the half -- for the first half of the year and we see coming quarter and coming months with much more -- with a better colors.

Below EBITDA, nothing big is happening. Depreciation and amortization is connected with introduction of the 105 into the system. So depreciation is growing, especially intangible assets from 105. We also got rid of the Malaccan loan that was paid off end of the last year. Therefore, the financial operations also dropped. End of the P&L is the loss for the period, still negative. We see GBP 0.5 million negative but this is an improvement versus the previous year already by GBP 0.5 million. So we believe that this trajectory will stay for the coming months.

Nils, if you could move forward?

[Nils Gornall, executive]

Yes. I'm trying to and it's frozen. There we go.

[Edward Kacyrz, executive]

With regard to the balance sheet, I would say it represents a very healthy situation versus the last year, no big material changes took place. There is, of course, 1 swap important, which is mainly connected with 105 takeover. As you can see, goodwill and intangible assets grew by almost by exactly GBP 10 million and at the same time, we have a cash outflow connected with the purchase price for this company. And I think that these are the main elements that I would like to concentrate here.

Nils?

[Nils Gornall, executive]

Thanks, Edward. Okay. So over to Poland, our core markets. And look, we certainly weren't happy with the sales early in the year. We're actually slightly down on like-for-like order counts for the first half. Our main issue was the e-com failures with our aggregators and our POS. And at the same time, we had the major QSR brands discounting heavily. So both combined, we had some pretty poor sales. The team reacted fast and reversed this trend. So e-com sales are back at record highs, and we're well positioned for what is traditionally the busiest quarter ahead of the year.

So in Poland, we have 118 locations, 17% are franchise-owned and the remainder are corporate-owned. Look, we're going to 200 stores in 2027, and we want to be the market leader here in Poland for peak to QSR. System sales in H1 increased by 4.9% whilst order counts declined by 1.8%. Like-for-like system sales were flat. Encouragingly, the average check increased by 6.8%. Look, we've had exceptional growth over the last 3 years. Now we're focused on driving store profitability and growing a higher ticket check. New stores, especially from the 105, we will strive for the same 3-year sales growth that we just did in the Domino's stores. So we expect to see that in new stores and newly converted stores. But in our existing business, the focus is now on store profitability.

Post-period trading has been really strong. System sales growth July was 5% considering the big footfall was on the year before. It's a good result and August finally blew out to double digits. Both months were positive customer order count as well, which is really what we're going for.

System sales in PLN. Look, I don't -- I think I've spoken enough on the sales, but with the growth plan ahead, I really don't see this trend changing. We've got more stores coming online, more sales and we've got all of this year and all of next year to convert all of the Pizzeria 105 stores. So plenty of growth coming in and expect this trend to continue on. So where are all the sales coming from the 3 key drivers? Our brand continues to become stronger and stronger with record new customers coming into the system H1 and a really healthy year-on-year growth of nearly 9% for new customers. Order frequency dropped over the period. This is certainly a trend that we want to reverse. We feel we know why it reversed and we've put things in place to change that trend.

Ticket continues to improve, especially the last period, 6.8% is a big jump. The higher ticket is from smarter time period discounting. And as always, we continue to bring out new pizzas, new side items such as fries. We just launched the pizza subs. So we keep on bringing more side items to our orders, and that lifts the ticket, bringing more profitability for us in our franchises.

NPS. So NPS continues to trend upwards, reflecting the growing strength of the brand. Our simple strategy continues to work and has worked the last 3 years. High-quality pizza delivered quickly at an attractive price. Technology continues to play a major role in customer satisfaction. The mobile app remains a main focus for the company to further improve its usage. We are seeing some good improvements in this mobile app usage grew 20% year-on-year, and it's now 40% of our digital sales. We want to double that. We want to get up to 80%, 90% of our digital sales coming through our mobile lab. So still lots of improvements in that area. But all in all, NPS looking go in the right direction, customers are happy and the brand is getting stronger and stronger.

Edward, if you want to take over the slide on the franchisees?

[Edward Kacyrz, executive]

Yes. So as you can see, we are just presenting the data for the H1 of the business, but of course, this is not the full scope of where we are going to. You can see that over the last 1.5 year, we were able to grow by 10 stores from 2023 year end to now by 10 stores growing the franchise network which puts us to the positions where they hold about 17% of the total network for Domino's Poland, this is a very good perspective. But even starting from here, we see that we are already developing with the plan of the franchise transformation. We have the first store under Domino's converted from 105 in July. There is another store already being converted. We have in the pipeline the next store to be converted soon. And also we look into the sale of the Domino's network to the new franchisees.

So from that perspective, we believe that we are on track with the delivery of the franchise transformation for our business. We see growing interest in the network to be taken over and we are doing our best to strengthen our franchise team and equip them with the right tools and head count to serve all the needs that are popping up on the market.

Just to close the slide, what is also very promising with the growing number of the stores. We see that the EBITDA margin for the franchisees still stays on a very good and acceptable level, which is close to 9% EBITDA. Having that in mind at the beginning of the year was not the strongest one. I believe this is also a very good sign for the future.

[Nils Gornall, executive]

Yes. Also, the first few internal sell-downs started. I think it was the 1st of February. So these guys have been going for quite some time now nearly 6 months and the internal sell-downs have been going extremely good. So -- and we know that success builds success. So once everyone can see these guys doing well, the flywheel should continue through.

So you finished with this slide, Edward?

[Edward Kacyrz, executive]

Yes.

[Nils Gornall, executive]

Okay. So Pizzeria 105 integration. So look, this is the company's main focus and the #1 growth driver for the next period. We started our first pilot stores in July. We now know what we're up against. Now the rollout begins. So sales growth in the pilot stores has been very encouraging, and I'm super excited to see more and more stores come online. I think once we do our 3 quarter or our full year, we can actually start talking about exactly what success we're having in these stores. But so far, it's going really, really well and getting franchisees to convert over is not a challenging task.

Conversion scheduling. So we expect to see a steady flow through the remainder of 2025 and into next year. After the conversions are done, we focus on operational excellence to ensure the Domino's service standards are met. And then we start to push volume growth, leveraging the Domino's brand, our marketing -- our national marketing campaigns and our e-commerce platforms. So this project is just starting to ramp up now. Pilot stores are done. We know exactly what we're doing. So expect some -- lots of stores coming on moving forward from now. And this is set to change the landscape of our business. It's a really exciting time for us, and we can't wait for more and more stores to come online.

So over to Croatia, strengthening brand presence in an emerging market. System sales for H1 was up 7%, all like-for-like stores at this stage in Croatia. Deliveries grew over 15%, nondelivery remained flat. Croatia is seeing -- still seeing high inflation. It hasn't let off. like the rest of Europe has. I think we're sitting second highest inflation levels in the euro region at the moment. So we've had to remodel our pricing strategy and adapt to what's happening in Croatia. Average ticket increased a crazy 13% year-on-year. That's what's happening in this country at the moment. Order counts have declined by 5.3%. So it is a big payoff at the moment, but we've got to move with the times. We're confident with our approach to the current landscape and the KPIs in Croatia remain strong. Post period trading, July grew by 8.6% and August was flat. We've got 2 additional stores coming online soon, bringing the total to 7 by year's end.

Okay. Edward, if you want to chat about our cash position.

[Edward Kacyrz, executive]

Bit about cash position. So we entered the year with more than GBP 11 million on the bank account. That was the moment already after the pretty strong stores opening in the last year and loan repayment close to the year-end. And as you know, we entered with one big project and actually, we executed the strategy that we presented to you. So majority of all our spendings that were served to some extent from the cash gain during the fundraise concerned the Pizzeria 105 acquisition. So with all the costs, including acquisition costs, it costed us about GBP 6 million. And this is one big element of the investments or cash outflow. The second one is definitely the further store rollout and renovation. We haven't stopped doing it enter into the HQ second half of the year with a clear plan for the conversion of the stores, 105 and the final openings of additional stores that we have in the pipeline.

We end up H1 with GBP 3.5 million on the bank account. July and August was, of course, cash positive on the EBITDA level. So we finance our operational needs from our cash generated from the business, from the operations. We look closely to the plans for the investments into the future and also think about some commercial loan leverage for the next periods.

[Nils Gornall, executive]

Awesome. Thanks, Edward. Okay. 3-year outlook remains the same as when we last spoke. So our goal is to double our system sales in the coming years. We keep on saying we want to pass 200 stores in the year of 2027. And the big one for us is the franchisee share. We have a company goal of over half of our system franchised by the end of 2027. And I think we're well on the way of achieving that.

[Edward Kacyrz, executive]

Yes. So H1 seems to be maybe not the strongest, but having in mind 3 years of a very strong growth, I think we also concentrated a bit more on the efficiency of our processes and on the purchase prices on the supply chain, and we were able to deliver strong -- relatively strong EBITDA with a positive trajectory versus previous year. The profitability of our stores rising. We closed the gap also on the franchise profitability. So building this environment gives us also the possibility for further transformation of the business. Poland is doing relatively well with regard to the system sales growth. We have some backlog on the order count, but it has changed already in July and August. We see a similar trend already on the Croatian market. So having that in mind, I believe we have a good forecast for the quarter 3 and quarter 4 of the year.

Nils?

[Nils Gornall, executive]

Fantastic. Thanks, Edward. Okay. So H2 2025 and the outlook. So the company is in really good shape and our strategy are super clear. Profitability, key drivers are trending in the right direction. Our system is growing rapidly, especially with the acquisition. A market opportunity. We're in emerging markets. Poland remains one of EU's fastest-growing economies. Pizza demand is certainly growing. We're in the right place. Brand dominance and market position is super important, enables greater leverage with suppliers, aggregators, landlords and strengthens the company's pricing power. With the recent acquisition and store growth plan and our market presence will grow quickly and we will pass our competition very, very soon.

So main drivers of the business for our system sales growth. The main one is the conversion of the Pizzeria 105 stores to Domino's and all of the sales that we can bring -- that we can grow into these outlets. We're expecting double-digit growth for 2, 3 years out of these stores until they catch the levels of Domino's. New store rollouts, we will slow the corporate store openings and focus on the conversion of Pizzeria 105, and we're going to be really pushing franchise openings rather than corporate openings moving forward. And of course, like-for-like system sales. We have plenty of room to grow in our own stores. We haven't taken the foot off the pedal for that. We're just concentrating on store profitability and moving with the times of the inflation. The big one for us is the franchisee-led strategy. 17% of that portfolio is now franchisee-owned. We target over 50% by the end of 2027. This brings scale to the business and accelerates growth.

So that's everything from us today. Thanks for your time. Exciting future for us, and we're really happy with the 6-month results. Thank you very much.

[Alex Schlich, executive]

Fantastic. Thank you, Nils and Edward. We are now going to take questions. [Operator Instructions]

So here we go for the first question. How many stores does the largest franchisee operate? And is there a plan to manage concentration?

[Nils Gornall, executive]

Yes. So our largest franchisee owns 7 stores. The next highest franchisee would own 3. So we've got a lot of single franchisees. I think in the Pizzeria 105 brand, they are mainly single franchisees with a handful of 2 to 3 stores. And I think that's fairly similar in our portfolio as well. For the internal guys, they've all got one store each. They're young entrepreneurs. We can't load them up too much. But once they've had 9, 12 months of business experience, then they can start to scale and go into their second store.

[Alex Schlich, executive]

Thank you. Next question, when do you expect the business to be profitable?

[Edward Kacyrz, executive]

Okay. I mean on the net profit, we said last year, we would like to be on zero. We were just slightly -- we have a slight gap. The net profit is an element of EBITDAs of the operational profitability, which is already here and also is an element of the investment plan, right? So we have a close look into not overinvesting into some areas. We have some investments that simply needs to be finished like the investments into the commissary in the coming half year because beginning of the next year, we will be transforming the business to one commissary-led business model. So from that perspective, I think we are on track to come to the zero net profit or being positive in this year, maybe next year. Let's see how it will go.

[Alex Schlich, executive]

What is the store renovation and rollout spend anticipated in the second half? And has the Pizzeria 105 cumulative 2-year refurbishment CapEx estimate of GBP 2.6 million changed?

[Nils Gornall, executive]

No, not, that hasn't changed. Our pilot stores, we've kept exactly right on budget. So what we predicted is about exactly what the cost is going to be. What was the first part of your question, sorry?

[Alex Schlich, executive]

The first part of the question was what is the store renovation and rollout spend anticipated in the second half?

[Nils Gornall, executive]

Okay. Edward can answer that -- most of it's already been prepaid for the -- we've opened a whole lot of stores in the last few weeks. I believe we've got a handful to go all the way up to Christmas, and most of this is already prepaid for.

[Edward Kacyrz, executive]

If I'm not mistaken, we still have in the pipeline about 4 stores on the Polish market, one in Croatia. The Croatia is fully paid. We were waiting for the electricity regulations approval. So it's to be opened in the nearest future. With regard to the Poland, as Nils said, some of this is prepaid. I suppose that for those stores, we would go for about GBP 600,000 still to be paid more or less. For the renovations, I think majority of the renovations has been finished already. So the only thing that -- not the only thing. The majority of our focus goes towards the 105 conversion stores. There is a big plan to have as many of the stores with Domino's as soon as possible. So therefore, we do not want to have any distractors around our network. We believe that our network was moved -- was upscaled to the Domino's standards. We do not see any big urgent topics to be dealt with. So 105 is our main focus for the coming months and years.

[Alex Schlich, executive]

Thank you. I've got a couple of further questions on the Pizzeria 105 acquisition. So firstly, how did you select the Pizzeria 105 franchisees for the initial conversions? And how has the reaction been of other franchisees?

[Nils Gornall, executive]

So look, we tried to do just a range. So in the portfolio of businesses, there's a range of stores from [indiscernible] stores that was one of the stores that we converted over to a traditional delivery takeaway outlet to a 50% dine-in, 50% delivery establishment as well. So we tried to take examples from across the board just so that we know exactly what we need to do to renovate these stores and what we're expecting once we do convert them.

[Alex Schlich, executive]

And how many have already been committed to converting and how many are waiting to see the results of the initial franchises?

[Nils Gornall, executive]

Look, we haven't announced exactly how many are in the pipeline. Like I said, we've just started the ramp up now. So between now and Christmas, there will be more and more stores coming on every week. We'll take a break for the Christmas period and also allow the franchisees to have some good Christmas trading, and then we'll start again back in the new year. So I think once we do our full year, we'll be able to let you know exactly how many we've opened. But yes, obviously, there's still people sitting back and watching and waiting, but we've got plenty of franchisees and plenty of stores to convert right now.

[Alex Schlich, executive]

And could you quantify the sales and order count uplift from a Pizzeria 105 conversion based on the pilot?

[Nils Gornall, executive]

We haven't announced that. So all I can say is the sales have been strong. So yes, we haven't actually announced exactly what the increases are.

[Alex Schlich, executive]

Okay. When you sell a corporate store to a franchisee, do you supply the finance? Or do they arrange it themselves?

[Nils Gornall, executive]

It depends on the scenario, mainly with the internal -- their internal sell-downs, mainly we are being the financier for the first year. We do have a relationship with a bank. And so basically, the franchisee can go and see them after 1 year after their business has been open for a year and they've got a nice track record. So that is the one issue with internal people is that for the first period of time that we have to be the bank. That is correct.

[Edward Kacyrz, executive]

But one comment on that because this is a bit of the regulatory reasoning behind it is just because of the finance expecting like 1-year history of running the business. So from that perspective, those stores that has been already sold their performance or the trajectory proves they can easily be loaned from -- or support the leverage by the bank. The point is that the bank is waiting through their KYC regulatory requirements. They are waiting for this yearly proof or data record. And when we have it, definitely, some of the current franchisees will be transformed to the loan-driven franchisees. We will not serve everyone as a bank in the future.

[Nils Gornall, executive]

Yes. So that will start rolling in early next year after they've been in business for a year. So we already have the relationship set up with the banks. We just need that time period, and then we'll take the loans off our books and replace it with cash.

[Alex Schlich, executive]

Have you found any positive or negative surprises in the Pizzeria 105 acquisition?

[Nils Gornall, executive]

Look, I think the positive thing was the sales. We're really quite surprised with what we can do with the brand once we turn on -- I mean you used to say turn on the phones. But once you put that sign out in the front, it's amazing what the brand actually does. So that was a bit of a surprise. And everything else, look, no surprises. We knew what we're up against. It's not easy. We're dealing with a lot of franchisees. We have to change the mindset and the way that a Domino's franchisee thinks. We're more about times and getting the product to the consumer as fast as we can. So look, there's certainly some gaps that we need to bridge, but we just need to do more training and more support, and we'll get there. So no major surprises. It's sort of exactly what we expected.

[Edward Kacyrz, executive]

But on the other hand, I think this is also a very good catch-up for us with regard to how to run the franchise business. So I think we got also a very nice set of tricks and concepts how to run the franchise business on the Polish market. So I would believe that this is of common good for both the franchises from 105 as well as for us, and we'll try to leverage in both directions the situation. Of course, it is some learning curve behind it, but I would say we are on the positive path.

[Nils Gornall, executive]

Yes, agreed.

[Alex Schlich, executive]

Thank you. In an ideal world, how much should a single store make in revenue and profits?

[Nils Gornall, executive]

In the ideal world, $1 million a year. Look, it really depends where you are. I mean each country has different economics and so the Domino's stores in each country make different profitability. So that's a hard one to say. I mean a good return on investment, I feel is 3 to 4 years. So that's what a store should be making, an ROI of 3 to 4 years.

[Alex Schlich, executive]

Thank you. Next question here. Can you describe the headwinds for the in-store channel in Poland? And are there any specific headwinds which may finish in the coming year?

[Nils Gornall, executive]

Headwinds in -- sorry...

[Alex Schlich, executive]

Headwinds in the in-store channel in Poland. I think you commented before how strong the delivery was. And the question is, can you describe what the headwinds for the in-store channel?

[Nils Gornall, executive]

Yes, yes. Yes. So look, I think delivery, we are a clear market leader. No one can deliver as fast as us. We've got the systems. We're definitely first-in-class or best-in-class for delivery. As far as carryout, whether we like it or not, we're in competition with the big guys. We're in competition with McDonald's, KFC, Popeyes, all of these type of people. Hence a competition that we forget about is the convenience stores. So there's a company called Zabka. There's 13,000-odd in Poland. Every one of our Domino's stores has a Zabka right next door.

And earlier this year, they started to sell -- traditionally, they were hot dogs and now they're doing frozen burgers, pizzas. So that started in January. I'm sure that's knocked us around a little bit as well. We've come back. We're doing a Polish pizza. We're calling it a pizza sub. We price pointed the same as Zabka. And I think the initial trial has been done. I mean it's a frozen product pizza. So initially, I'm sure it affected our sales, but in the long term, it should only grow the pizza -- the whole pizza business.

[Alex Schlich, executive]

How much are you selling your stores for when you sell them to a franchisee?

[Nils Gornall, executive]

So we sell them on a multiple. And if the store is not profitable, then we will sell it depending on the sales level that it has. So it's either selling it on potential or selling it on actual times EBITDA.

[Alex Schlich, executive]

Thank you. We've got a couple more questions just to go through. Here's one. What do you attribute Pizza Hut's strong trading in the first half to? Is it fair to say that they outperformed Domino's in the period? And what is your competitive response?

[Nils Gornall, executive]

Look, I mean, we respond -- we have responded. We've reversed the trend, and we're having a record month after record month. Our e-com at the start of the year definitely had some issues with the integration with our aggregators. We've turned that around, and we're having record e-com week sales as well. So I think we have reversed that trend around. It's a pity we gave some sales to our competitors. But yes, we need to grab them back.

[Alex Schlich, executive]

Thank you. And I think we've got time for one last question here, which is, how does the performance of a franchise store compare to a company-owned store?

[Nils Gornall, executive]

So as far as profitability, look, we haven't put that out into the market. But generally, as a general statement, franchisees can, over time, drive sales higher than a corporate store just because they have that skin in the game. It's their profits at the end of the day. So they'll do whatever it takes to move that dial. So I think our franchisees are definitely more profitable as well for exactly the same reason. They're in the business. It's their sweat and equity as well. So I think skin in the game is the big difference between having a corporate store manager and a franchisee. So there is no doubt that franchisees make more money and they also grow sales further than a corporate store.

[Alex Schlich, executive]

Thank you, Nils. Can I hand back to you just to say a few concluding remarks before we close today's presentation?

[Nils Gornall, executive]

Absolutely. So yes, thank you very much for your time today and all of your good questions. If there's any follow-up questions, please let us know. My e-mail and phone is always on. But yes, look, we're really happy with the way things are going. Tough start to the year, but I think we've turned that around. Everything is going in the right direction. We've got a lot of drivers to move this business moving forward. We've made that acquisition. Now we just got to execute. And once that's done, the company will be in a really good shape and making some very good profits for us. Thank you very much for your time.

[Alex Schlich, executive]

Great. Thank you very much, everyone. And just as a reminder, as you leave the webinar today, if you could complete the feedback form, that would be greatly appreciated. Thank you, and see you soon.

[Nils Gornall, executive]

Awesome. Thank you.

[Edward Kacyrz, executive]

Thank you very much.