© 2024 Alpha Spread Limited. All Rights Reserved.
www.alphaspread.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on www.alphaspread.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Alpha Spread Limited be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.alphaspread.com, or relating to the use of, or inability to use, www.alphaspread.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.
You don't have any saved screeners yet
Intrinsic Value is all-important and is the only logical way to evaluate the relative attractiveness of investments and businesses.
Good day, and welcome to the THG Quarter 3 Trading Update. At this time, I would like to turn the conference over to Mr. Matt Moulding, CEO. Please go ahead, sir.
Good morning, everybody, and thank you for taking the time to dial in to our third quarter trading update. In terms of the people that I have with me, I have most of the senior management team, including Matt Rothwell, Deputy CFO; John Gallemore, CEO of Ingenuity; Steve Whitehead, our Group Commercial Director; as well as the CEOs of each of our divisions.We will be ready to answer any questions on today's announcement. However, first, I just want to give you a brief update on the trading performance of the business and the broader news in this morning's release. In terms of the financials, I'm pleased to report a strong quarter with Group revenue of GBP 508 million, which is up over 38% on the prior year on a constant currency basis, and that's plus-93% on a 2-year basis.We are particularly proud of the way Ingenuity continues to scale with a record number of new clients secured in Q3. The order book of websites to be rolled out in Q4 2021 and 2022 is testament to the many markets we are supporting our clients in entering, as well as re-platforming from other providers. Our confidence in the rate of growth for Ingenuity Commerce is such that today, we have provided an upgrade to FY 2022 revenue expectations by 20% to 25% for that revenue channel. By enhancing the KPI suite and highlighting the level of recurring revenue, we hope this helps support a more detailed view on how the business is growing, supported by the investment in people.As we move into our peak trading period, we are delighted that our new Icon warehouse is operational, which benefits from best-in-class automation. Product availability is good across all categories and following the migration of Cult Beauty and Dermstore to Ingenuity, we have the infrastructure in place to support the increased volume of orders placed during this period with an enhanced customer experience.Today, we also welcome Andreas Hansen to the Board. Andreas brings significant and valuable experience, both from SoftBank and his prior roles, and we are delighted that he is joining us as we further our partnership together.Further to our recent announcement regarding intentions to move to a premium listing, we have now commenced the process to appoint a Non-exec Chair and intend to update our progress in the weeks ahead. And so finally, we've got strong momentum going into this incredibly busy trading period and good confidence in both the near and medium-term outlook.And I'd like to take this opportunity to thank our shareholders for their support and all of our colleagues, once more, for the monumental efforts they've put in over recent months. We would be pleased now to take any questions you might have on any aspect of today's release.
[Operator Instructions] We'll now move to our first question over the phone, which comes from Anubhav Malhotra from Liberum.
I just had a couple of questions. Firstly, on the regional performance. And if you could give us some color on how the nutrition and the beauty businesses have been performing in the broader various regions like Europe, U.K., Asia and America. That would be very helpful. And then, secondly, on the guidance, so if I understand, you talked about GBP 112 million of annual run-rate in Ingenuity Commerce at the end of fourth quarter. And the guidance for next year revenue for Ingenuity Commerce is also GBP 108 million to GBP 112 million, but am I right in understanding these are 2 separate figures in the sense that that would be the annual run-rate basically for next year at the end of 4Q would be GBP 112 million, and GBP 108 million to GBP 112 million would be the actual revenue that you are achieving in FY '22? If you could just clarify that, that would be great.
It's Steve Whitehead here. If we may, I'll jump in and answer the second question first. And so you're right in your understanding, they are 2 separate numbers. So the GBP 112 million annual revenue run-rate is calculated 15 months in advance of getting to that Q4 2022 time frame, and it annualizes the recurring revenue from the 400 websites expected to be live at that time, which representing 60% of the sales mix has then grossed up for 40% non-recurring revenue to give you the GBP 112 million. Now that's 15 months out and doesn't include any new client wins, both in terms of the rolling out website model nor does it include any new client wins for the productized elements of the platform, which generate revenue without rolling out websites. So examples would be fulfillment-only services and personalization, both of which we've been announcing recently. And the third bucket that it does not include is what we touched on in recent disclosures is how we're maturing the revenue model. So the GBP 112 million assumes a GBP 170,000 per annum spend per website in that calculation. That's just a revenue share, which has been the primary form of monetizing the model to date. We updated recently that we're maturing that model so that we're going to start generating margin on transaction fees, postage, and fulfillment to further enrich that GBP 170,000. So there's quite a lot not assumed in there, no new client wins and no new revenues from those additional channels, and it's 15 months out. So what we would expect over the next 15 months is that ARR number of GBP 112 to increase as we get closer to the Q4 period. And as that increases, then, of course, that would create a greater delta to a reported figure, which is up a circa GBP 110 million with actual -- which is the upgrade versus the consensus of GBP 90 million.
That's very helpful. And just to add on that one can I ask that does -- the GBP 112 million annual run-rate revenue, does that include any of the take rate on revenues that you plan to take?
No. It's a good question. It assumes GBP 170,000 revenue per website, which is the achieved historic in the KPI table revenue per website, and that revenue per website is generated by, if you like, the v1 revenue model, which is simply a revenue share. It doesn't have those additional forms of revenue capture linked to GMV. So of course, as GMV increases over time, we would expect the revenue share to increase, which should support the GBP 170,000 increasing per website, but also GMV linked fees, namely margins on transaction fees, postage and fulfillment should also increase over that period.
Let's be absolutely clear we're not -- additional to the -- to that GBP 108 million to GBP 112 million revenue, which we expect to report in FY '22 would not include any of those take rate additions that are not included. We're not changing the definition at all. That is GBP 108 million to GBP 112 million based on the existing definition. But obviously, we expect those other things to come through as well.
And then, just as answer to the broader question around territory performance. Just to reiterate, I mean, the U.K. remains a very strong market for us. Other very interesting areas, India and the Middle East continue to be really strong. And there's an awful lot of energy going into the U.S. right now, the Dermstore re-platforming, Ingenuity rolling out an investment across key areas of the U.S. have been a particular success for us, but the U.K., in particular, remains quite a strong market.
We'll now move on to our next question over the phone, which comes from Rob Joyce from Goldman Sachs.
I've got 3. I guess, firstly, just let me follow on from that Ingenuity conversation. Should we read from this that you -- I mean, it seems to be that you consider that to be very well underpinned. Can you confirm that and the guidance for next year? And then, just in terms of thinking about new client wins in there, I think you mentioned 44 in the quarter. Does that seem like a sensible -- can you keep doing that given what you're spending on new business at the moment? And how long does it generally take between translating one of those wins into revenue generation? Sorry, that's a protracted sort of first question. The second one is, thanks for giving us the detail on what you expect from new acquisitions in the year, wondering if you could maybe help us understand what you would say the 2-year organic run rate is -- sorry, 2-year organic growth at the end of '21 would be, given a midpoint of current guidance? And thirdly, I'm just wondering if you can help us understand the -- in the short term, just the guidance for the year. It looks like there might be some FX impact on EBITDA in that sort of fourth quarter or second half of the year. Just wondering if you can help us understand that.
Rob, it's Steve here. I'll pick up given I was -- remembered the Ingenuity question earlier. So the degree of confidence is high for sure. We've put out that upgrade with 15 months to go and the assumption of no new business development wins, which to your point on 44 new clients in Q3, is clearly very prudent, nor are we using all of the committed pipeline order book of websites today to deliver those -- to get to 400 websites by the end of 2022, it's only utilizing 85% of what's on the order book today. So we are very committed to that number. In terms of how we think about the new wins and the cadence and how that's to be thought of going forward, the important point about the modeling disclosure that we've -- we're giving this time around, it's that that people focus on websites, and the revenue per website, and the recurring versus non-recurring revenue mix. That's the key metric going forward. Number of clients, how many websites per client, so ultimately, let's just get down to how many websites per quarter at what revenue and at what recurring versus non-recurring mix. So that's why we're focusing on it. But in terms of it being a record number, it's a record number of new client wins, but we absolutely have been building up to it. Every quarter is -- it almost beats the prior quarter, so that's the cadence. That's how -- when you're taking business development heads from 3 at the start of last year to 75 presently and continuing to invest, there's a very strong correlation, which we map internally between new business wins and new business development hires. So it's a really strong area for investment. So we have lots of confidence around that revised upgrade. If I think -- if I've covered everything in the first question, and I think, maybe we turn to second question.
Steve, just the one question was how -- in terms of revenue, when those new clients start to become revenue-generating, is there any help on the lead time to that you can give us.
It's completely mixed and that's the point. So we've got the pipeline of -- to go live websites now, which we've already been through like that incubation period and continue to do. The reality is very, very few websites go live later than the 12-week road map that we have as a go-live program, and we comment to that in the slides that are on the website, where in those very few instances, websites are late, it's at the client request, perhaps, they haven't got packaging or local product registration ready, or perhaps some internal resource point. So for us, it's absolutely a 12-week onboarding process, always subject to the client readiness. The second point, there's a very, very strong underlying organic growth rate in the Beauty and Nutrition division. As a group, the 2-year organic growth, excluding M&A, is over 50%. And that's, of course, the case for Beauty and Nutrition. We've got these global leading positions in big towns with a 15%-plus channel shift in those markets and 15 years of having outperformed the markets that we are in. The reason why we're able to outperform those markets is because of the high repeat nature of the customers, both Beauty and Nutrition, around 80% of revenue every year comes from returning customers. And then, when you look at why customers return in the slides on the website, you've got all of those EUX conversion benefits we talked about with Beauty. The NPS score for lookfantastic, for instance, according to BCG, being miles ahead of any of its competitors. But that's what gives us the confidence to then look forward to next year and go on next year to another 20% to 25% organic growth business, which we then look at how do we augment that with M&A. Even this year, we're continuing to augment with M&A, building big positions, as Matt said, in the U.S. with Dermstore, in Nutrition with ready-to-drink and convenience products now coming through and localized flavored products coming through. So we got real confidence on that organic growth and then, the investments we're making around M&A. Does that cover the second topic?
Yes, yes, very clear.
And then, though, Matt Rothwell would jump in as well. But the point I want to make on the third point around FX is our business model has been able to accommodate all of the inflationary pressures that we're seeing in the marketplace today. And that's some statement and its automation is vertically integrated. We're fully stocked. That's a very strong statement. Over and above that, you've then got FX headwinds. FX headwinds we've mitigated those by natural hedging in 2 of our 3 regions, U.S. and Europe. There's one region left to go to the FX headwind, which Matt can touch on in a moment, is in Asia. We will localize production in Asia from local sourcing for local customers as we have done in Europe and the U.S. That's not a pipe dream, it's something that happened in the medium term, and we've already done it at scale in 2 of our key foreign 3 markets. So it's coming and not every business model has the optionality. And so we will remove or naturally hedge the Asia position in the medium term, but that's been in the area for headwinds.
Yes. And simply, Rob, the fact that we're selling, we've got a very strong international mix in the business. We're selling into Asia, we sell in local currencies, utilizing local payment solutions. The pound is just particularly strong. So for every sort of 100 bps you get of constant currency headwinds, it's translating to about 30 basis points on the bottom line for the full year.
Thank you. We'll now move on to our next question over the phone, which comes from George Pilakoutas from Numis.
Firstly, I just want to confirm, you mentioned you expect 20% to 25% organic growth for Beauty and Nutrition next year. The second one was on the slides that you presented, it talked to FY '23 GMV of GBP 2.5 billion for Beauty and Nutrition. Is that where your heads are at? It just doesn't seem consistent with kind of where consistent is at with that kind of 20% to 25% corridor. The third one was, could you confirm guidance on the GBP 50 million Ingenuity revenue for FY '21? Just kind of thinking what that implies for, for the fourth quarter. And then, the fourth and final one is, you've kind of provided the 4% GMV share for Nutrition and Ingenuity or kind of implied within that SoftBank deal. Can you just confirm that this kind of 60% to 70% EBITDA margin that you've historically spoken to would still apply to that?
Yes. Look, it's absolutely the case. Having said it, IPO-ed and this is a 20% to 75% growth business we made organically for Beauty and Nutrition. We made a distinction then, which we hold now that you probably see Beauty at the upper end of that and Nutrition at the 20% end. So that absolutely holds for next year. What we've put in, in the slide decks on the website is absolutely an illustration. I think the GBP 2.5 billion GMV is a sensible reference point for the illustration. There's a reference there as well into the 4% revenue share. Again, just a very simple illustration, which would be in line with our current pricing for existing clients and would also support the 60% EBITDA margin that we talked to for THG Commerce, so it's all entirely consistent. And then, in terms of what -- in the RNS, we tried to reconfirm the consensus for '21. I think it's in the same bullet point as we upgrade for '22. But for the avoidance of doubt, we confirm that position for '21 of consensus is circa GBP 50 million.
We'll now move on to our next question, which comes from James Grzinic from Jefferies.
Just a very quick question really around price recovery. I'm wondering whether, especially in Nutrition, in Asia, you've started the process of price recovery of those input pressures.
James, do you mean in terms of the commodity pricing that's been -- the significant increasing commodity pricing through the year if we're recovering that through price increases?
Yes, correct. Whether you've started to adjust the local price points?
I mean, look -- so yes, I mean, the short answer is you can't pass all of it on all the time because according to advertising standards, you only increase your pricing with certain breaks in between. You can't just keep changing them on a week-by-week basis. But yes, the intention is obviously, we passed those prices through accordingly. And then, we may take some strategic decisions where we don't pass it all through, but then we would look to get that back through synergies in other areas elsewhere. But I mean, you're absolutely right. There's been quite some significant moves in commodity prices certainly in the last few months.
Understood. And perhaps as a follow-on on another topic. On the recurring revenues per website, can you perhaps talk to the history of how those are developed? And I presume, of course, there have been very different dynamics for different clients, but more broadly, what the cadence of maturity and how that revenue per website develops as that maturity profile improves?
Yes. So we're currently around returning revenue across the Ingenuity business. That's increased from 25% around a year ago as more sites are being launched, and we've got more returning revenue coming through. We do expect that to be a stable number going forward over the next 12 months or so, James.
We'll now move on to our next question over the phone, which comes from Charlie Muir-Sands from Exane BNP.
They all relate to Ingenuity. Apologies if some of it's been answered because it took me a while to connect. You've kind of indicated, I think, for now aiming to get to 400 websites live by the end of 2022. I think the CMD recently talked about 450 websites. I don't know whether that was just a phasing thing, but I wondered if that number has changed and yet you've kind of raised your expectations around the revenues you're expecting to generate. Is that because each site is anticipated to turn over more and therefore, you take more? Or I'm just trying to understand the moving parts around the revenue upgrade versus a slightly lower website number? That's the first question.
It's Steve, and it's just a prudent point really. So the 450 is how many websites we've got on the order book in order to demonstrate the ease or the confidence, if you like, with which we view that rollout to hit 400 websites. It's only 85% of the order book, so the remainder of the order book is upside. As we increase the cadence, we can look to get through that. And of course, as I perhaps, said at the early part of the call, when unfortunately, you may not have been on, in that GBP 112 million, there's no other benefits from business development. So all 15 months out of business development, the new websites being added to that 450, will go into the pipeline, therefore, effectively always extending that order book of websites, plus there will be business development for the productized areas of the platform where we're monetizing the tech without rolling out a website, so fulfillment-only services as one of the Q3 client wins for a brand called BY TERRY. Equally, we've had a personalization as a service for [ one of those ] as recently announced. So there's significant areas of new business development over and above that as well as headroom in the secured pipeline. So that's the difference to the 450.
Fantastic. And the second question is related to the Group, I guess, disproportionately Ingenuity. Have you got any early thoughts on what your capital expenditure budget might be for next year?
I can take that, Charlie. And we -- so we guided this year to sort of 10% to 12%. We're probably looking at the lighter end of that range for FY '21 and then, a similar level of cash next year on CapEx, but that cash will obviously be a lower percentage as we then see CapEx as a percentage of revenue reduced down to the medium-term guidance of sort of 5.5% to 6.5% over the next few years.
And then, one point to add to that -- sorry, if I can add just to remind the people then that as the Ingenuity KPIs that we're being given now, you can -- if people are modeling them outright, then at a 60% margin, a GBP 400 million revenue commerce business should be funding the cash requirement CapEx for the whole Group, which predominantly that CapEx obligation or need sits within Ingenuity. But if you just take the Group numbers or read across, then that GBP 400 million revenue number in Commerce will be self-funding for the Group's CapEx.
Fantastic. And then, the final question relates to Group-level guidance. You've obviously maintained your view on 35% to 38% reported currency sales growth for the year. If my math is right, that kind of implies that an acceleration at least on a 2-year basis for the fourth quarter. I just wondered if there are any sort of phasing dynamics or run-rate comments that gives you confidence in that.
Yes. I mean on a 1-year, Charlie, it implies a slight reduction in the run-rate. As you know, year-to-date is ahead of that at the current point in time. And the 2-year -- and yes, there is a slight acceleration in the 2-year growth. And you got to remember this is the first quarter we'll be trading both Cult Beauty and Dermstore on the Ingenuity platform. We're really excited about the prospects of trading both of those through Q4. The benefits we're all getting through those on the platform already are quite strong and Beauty as a business model has a natural slant towards peak trading in Q4.
We'll now move on to our next question over the phone, which comes from Andrew Ross from Barclays.
My first one is just to clarify the margin for this year. So I think the guidance is flat, excluding FX and dilution from Dermstore. So just to quantify the bridge, are we talking 9.3% from last year that's kind of 30% to 40% from Dermstore less now around 100 from FX gets to around 8. Is that correct? And then, if you could just give us a flavor as to how to think about margins into '22, both with currency, I guess, leverage from Ingenuity Commerce, Dermstore synergies, et cetera? That would be helpful. And then, second question is on AutoStore. And I noticed you called out automation as something that is helping you mitigate inflationary pressures in the underlying margin for this year. But can you just talk a bit about how AutoStore is now up and running in the warehouse and the benefits that's giving you?
You can start with the AutoStore. Go on, Johnny.
Yes. Okay. Just to remind everybody then about the AutoStore configuration here up in the Manchester campus. So what we've effectively got is a building with a footprint of just over 500,000 square feet with under 300,000 of mezzanine. And within that, we've got the AutoStore setup. We only accessed this building back in April. So we've been in there just over 6 months now. We commenced to move beauty products into that site 6 weeks ago. We've now moved 9.5 of the 10 million units we need to do in there. 85% of the beauty orders yesterday relocated to that site. So it's performing extremely well. And just to remind everybody, we expect this site to be 40% more efficient than the previous one we're moving out of, which in itself had some automation. So it's a huge capacity increase and a huge efficiency saving over what we've had previously. And that's helping us to absorb an awful lot of the inflationary pressures, particularly around headcount costs rising in that type of environment.
And then, in terms of the EBITDA bridge there, Andrew, yes, you've got it pretty much bob-on in terms of what the expectations are there. And yes, into FY '22, you'd expect benefits from both the Dermstore margin, where we expect to be able to get that back to Group levels by the end of that financial year, and then, the benefit of that Ingenuity Commerce increasing in the mix will also play through.
We'll now move on to our next question over the phone, which comes from David Green from Boldhaven.
A couple of questions. In terms of the Ingenuity contracts, where you obviously talk about the recurring component of those. And obviously, revenue share is part of that, is there anything else specifically that comes under the recurring revenue heading? The second question is just really around Beauty and the competitive landscape. So I guess more recently, you've had Sephora buying the Feelunique asset, Zalando has sort of put its flag out in terms of wanting to grow the segment. So just your overall sort of thoughts on that would be really helpful. And I guess, just really the final question is on M&A and your visibility on the pipeline and how you're thinking about that in the context of liquidity.
If I have to take the recurring point first. Look, so it's worth highlighting that our average recurring revenue per site is so high at 170 despite the fact it was so disruptive on price because of the full breadth of services we actually provide to these clients. So wrapped up within that would be any ongoing license fees and managed service fees, which are the digital trading and marketing performances that we provide, the content we provide from the studio here in Manchester, then, any revenue share that's linked to that. So there's a broad range of components that make up the recurring revenue. And then, if we just touch on the competitive environment for Beauty, so yes, do you want to let go, Rach, and jump in?
Yes, certainly. Yes. So David, just to touch on the competitor landscape, as we see it, we're obviously very aware of the Sephora deal with Feelunique, and we're excited to see those guys come to the U.K. market. And we're very close to the business that Feelunique have been building over the years. So we're quite familiar with the asset that Sephora have bought. I think we're very interested to see how they replicate some of the success that they've had in the U.S., leveraging Sephora as a platform for launching the LVMH brands, which were already quite well distributed over here. And it's not a point of advantage that they're necessarily going to bring to the market. And we're also working very closely with LVMH. It's probably worth my notes on that point, retail and their own brands through our Lookfantastic platform over here in the U.K. Zalando, we're also very close to what's happening there. Again, really interested to see how that evolves within that space. I think the key things I would pull out here as we think about the competitive landscape because we are tracking every competitor in every territory that we're operating. There's no one yet that's quite doing it the same way that we're doing in terms of how we're operating our beauty model. And I think that's one of the key things we draw out here is giving us that position within the center of the beauty industry really. So there's lots of other beauty retail platforms out there. Traditionally, these have been built through traditional bricks and mortar ways as opposed to online, which is the way we've chosen to do it. And when we then look at the rest of our model and how that plays within that retail environment, we've got one of the leading sampling mechanics within the beauty industry through our Beauty Box subscription base. We've just got over 500,000 subscribers there and with appetite for that as a model really increasing in a world post-COVID, where that need for beauty consumers to try our product before they buy being more important than ever, and -- but customers not necessarily wanting to go into store and purchase. When we combine our ability to do that sampling through the data that we're able to listen to what our consumer needs through our retail platform, it really becomes quite powerful in terms of the return on investment we can drive for our brand partners and being able to get the right product into the right consumer's hands. And we're, of course, also able to support in the production of those samples through THG labs and our ability to manufacture in-house. And so we're really excited about the proposition that this is going to build out for next year as well and the opportunities this gives us as we work with brand partners. And then, of course, we've got our own brands as well, which we're taking into different territories and working with different retailers as well within these territories, and sharing those learnings with our brand partners, so the ecosystem combined becomes quite powerful. And we then obviously factor into that retail platform the breadth of brands that we're able to work with as a digital player. And so when you look at our proposition versus most of our key competitors in different parts of the world, we're working with over 1,100 different beauty brands. You compare that to a Sephora or Feelunique, where you've maybe got 200 brands quite heavily focused within cosmetics as a category. Our mix is very broad. Our category mix is very well spread across hair care, skin care, cosmetics. And as we go into Q3, more importantly, fragrance, and Christmas gifting, at the moment. So we're really excited to see what the guys will do in summary within the U.K., but we're very confident in the position that we hold with our unique model.
And then just answering the question on M&A. We've obviously got significant resources available if we wanted to go and do some M&A. I think we had GBP 700 million of cash available to us at the end of the quarter, and we now come into our cash generation period as well. That said, at the moment, in terms of investments we've made, our investments so far, we don't really have any near-term pipeline to do anything more than that. But if anything did change there, then, we obviously have the capability to do that.
[Operator Instructions] We'll now take a follow-up question from Anubhav Malhotra from Liberum.
Just 2 questions from me. On the 450 clients that you have already won, would you be able to give us a sense of how many of them are going to be using the full suite of e-commerce in the box service? And then, secondly, on the CapEx and the long-term guidance of 5.5% to 6.5%, would you say that includes -- that would cover you for all your investments into, say, localizing production, automating all the warehouses, expanding the warehouse distribution. And if you could possibly split it up between what would be the maintenance part of it, what would be the expansionary part of it, if possible?
So I'll just pick up the first question. So just to clarify, at the end of the quarter, we've got 140 clients who have contracted with us to provide 450 websites. And so those are the data points. In terms of the percentage of clients who use the full end-to-end suite is actually 95%. So a vast majority is all services that we provide.
And then, in terms of the CapEx guidance. So yes, 5.5% to 6.5% and above in the medium term, that is adequate to cover off all of the fulfillment and manufacturing expansion capacity that we will be doing. It's elevated in the short term because of the investment we're putting into facilities worldwide. But to your point, that is expansionary CapEx on the whole. And whilst it's only indicative of -- our sort of maintenance CapEx level is probably only a quarter of that CapEx investment.
It appears we have no further questions queued over the phone at this time. So I would like to turn the call back over to Mr. Moulding for any additional or closing remarks.
Well, thank you to everybody for the significant time that's coming to today and here in our update. I'd just like to say, look, it's been a very progressive 12, 13 months since our IPO. I'm super proud of the team and everything we've delivered in Beauty, and the forecast and the various initiatives we set out at our IPO. And we look forward now to a key trading period in Q4, Black Friday ahead, and very well positioned in terms of taking advantage of that. But thanks again to everybody for today, and we look forward to updating you in due course.
Thank you very much to our speakers. Ladies and gentlemen, this does conclude today's call. Thank you very much for your participation. You may now disconnect.