Earnings Call Transcript - CCU Q2 2025

Claudio Las Heras, Head of Investor Relations

Welcome, and thank you for attending CCU's Second Quarter 2025 Conference Call. Today with me are Mr. Felipe Dubernet, Chief Financial Officer; Mr. Joaquín Trejo, Financial Planning and Investor Relations Manager; and Ms. Carolina Burgos, Senior Investor Relations Analyst. You have received a copy of the company's consolidated second quarter 2025 earnings release. The call will start by reviewing our overall results and then we will move on to our Q&A session. As usual, before we begin, please take note of the following statements. The statements made in this call that relate to CCU's future financial results are forward-looking statements, which, of course, involve known and unknown risks and uncertainties that could cause actual performance or results to materially differ. These statements should be taken in conjunction with the additional information about risks and uncertainties set forth in CCU's annual report in Form 20-F filed with the U.S. Securities and Exchange Commission and in the annual report submitted to the CMF and available on our website. For today's conference, as we stated in our second quarter '25 financial report, annual variations and references regarding EBITDA and net income exclude the nonrecurring gain from the sale of a portion of land in Chile in the second quarter 2024. Also, organic variation to which we will refer next exclude the consolidation of ADO in Argentina and AV in Paraguay. For more detail to this, see Footnote 3 of our second quarter '25 financial report. It is now my pleasure to introduce our CFO, Mr. Felipe Dubernet.

Felipe Dubernet Azocar, CFO

Thank you, Claudio, and thank you, all, for joining the call today. In the second quarter of 2025, CCU delivered high financial results and increased profitability versus last year despite the volatile and challenging business environment. Consolidated EBITDA nearly doubled versus last year, mainly driven by our main operating segments, Chile, which expanded EBITDA by 59.1% and, to a lesser extent, by the 8.3% growth in the Wine Operating segment. On the other hand, we keep facing a challenging scenario in Argentina, impacting the International Business Operating segment's results. Higher consolidated EBITDA and improved EBITDA margin were driven by volume growth, revenue management efforts, and efficiency, more than offsetting cost and expense pressure from inflation. In line with the high operation results, net income posted a lower loss versus last year. Our first half results show that we are taking the right actions to keep delivering higher operational results and profitability in the context of soft volume trends for the beverage industry in the region. For the second half, we will keep executing our 2025-2027 Strategic Plan and its three pillars: profitability, growth, and sustainability, with a special focus on profitability supported by both revenue management efforts backed by a strong and diversified portfolio of brands and efficiencies across all our operating segments. Regarding our main consolidated figures in the second quarter, organic net sales were up 4.8%, explained by a 4.7% higher organic volumes while organic average prices were flat. Gross profit grew 6.7% organically and gross margin expanded 73 basis points. In addition, consolidated MSD&A expenses grew 5.8%, mainly due to the consolidation of Aguas de Origen in Argentina, although as a percentage of net sales, improved 197 basis points. Without the consolidation of Aguas de Origen that we started in July of last year, MSD&A expenses would have increased by 0.5%. In all, EBITDA expanded 97.1% and EBITDA margin expanded 150 basis points. In terms of our segments, in the Chile Operating segment, top line expanded 9.4% as a result of a 6% increase in average prices and a 3.2% higher volumes, where all categories posted positive growth with a better seasonally adjusted volume pace than previous quarters. Increased average prices were explained mainly by revenue management efforts, more than offsetting negative mix effects and were key to expand gross profit and gross margin by 12.5% and 115 basis points, respectively, in the context of cost pressure related to an unfavorable packaging mix and higher manufacturing costs, mainly associated with our PET recycling plant CirCCUlar. MSD&A expenses grew below inflation, expanding 2.1% and as a percentage of net sales improved 265 basis points due to efficiencies. Altogether, EBITDA increased 59.1% and EBITDA margin expanded 339 basis points. In the International Business Operating segment, organic volume posted a 9.8% expansion, although net sales recorded an 11.4% contraction driven by 19.3% lower organic average prices in Chilean pesos. The decline in organic average prices was mainly due to the devaluation of the Argentine peso against the U.S. dollar and also due to a challenging pricing scenario in Argentina. The volume expansion was mainly explained by a low comparison base in the second quarter 2024 in Argentina, while volumes seasonally continued in a recovery trend for the fourth consecutive quarter. Organic gross profit increased 11.6% and organic gross margin was flat. MSD&A expenses were up 10.5% mainly due to the consolidation of ADO and higher marketing expenses. As a percentage of net sales, MSD&A expenses decreased 301 basis points. Without the consolidation of ADO, MSD&A expenses would have increased 5.9%. In all, in spite of volume growth, given the effects mentioned above, EBITDA loss was similar to last year. The Wine Operating segment posted a top line expansion of 6%, mainly driven by a 4.2% rise in volumes and a 1.7% higher average prices. Larger volumes were led by a 17.4% growth in exports, partially offset by a 4.1% decrease in the Chilean domestic market while the industry posted a larger decline. The higher average prices were mostly explained by a weaker CLP and its favorable impact on export revenues and revenue management initiatives in domestic markets, compensated by negative mix effects in the portfolio. Gross profit was flat and gross margin deteriorated by 222 basis points due to cost pressures from a higher cost of wine due to a lower harvest and higher USD-linked packaging costs. MSD&A expenses dropped 3.7% with efficiencies and as a percentage of net sales improved to 174 basis points. Altogether, EBITDA increased 8.3% and EBITDA margin was up 32 basis points. Regarding our main JV and associated business, in Colombia, we delivered low single-digit volume growth in a soft industry context. We continue working in strengthening our brand portfolio, our execution to deliver sustainable growth in volume and results in Colombia. Now I will be glad to answer any questions you may have.

Operator, Operator

Our first question is from Felipe Ucros from Scotiabank.

Felipe Ucros Nunez, Analyst

A couple on my end. So the first one is on the pricing in Argentina. Can you delve a little deeper into your pricing comments? You talk about a difficulty in pricing. So just wondering if you can talk about whether this comes from the competitive environment, with lack of discipline or perhaps it's just the state of the consumer that's keeping you from increasing prices faster and on pace with inflation. And then the second one is on SG&A in Argentina. Operating leverage seemed to drop pretty strongly this quarter, particularly when you compare it to the last three quarters since you acquired Aguas de Origen. So third quarter of last year, which was, seasonally speaking, kind of similar also winter, your SG&A was close to 50% of sales. But this quarter, it was closer to 66%. So pretty stark difference from one year to another. Perhaps the pricing issue has to do with it but just wondering what the drivers are on that de-leveraging pace.

Felipe Dubernet Azocar, CFO

Hello, Felipe. The key issue has been pricing, which has been quite challenging in Argentina, particularly over the past six months. Last year, beer prices in Argentina were higher than inflation by 4.4%. This year, however, they are 10.5% below inflation year-to-date. Since the new government took office on January 1, 2024, our prices are 6% below inflation. Real wages in Argentina are also lagging behind inflation, which is expected as the government's main goal is to bring down inflation. As a result, consumers have less money to spend, making things expensive in Argentina. While these measures aim to ultimately reduce inflation, the announcement of a new exchange rate policy in mid-April is also impacting the industry. Competition is tough, especially since recovering volumes has been difficult. However, we are seeing growth in our volumes for the fourth consecutive quarter. The mix of higher value brand participation is affecting our performance, influenced by deflationary pressures in Argentina. Our prices are currently below inflation. Looking ahead to economic recovery and further inflation reduction in Argentina, our pricing should be healthier. Regarding the synergies from our water business, they are present. While we bear the expenses of ADO, marketing costs are allocated to the category, and distribution costs have increased. Our ownership stake of 51% also gives us a financial advantage. There are more marketing expenses this quarter than last year because we did not have these previously. Notably, if we exclude ADO, our consolidated MSD&A expenses have decreased by 5.9%. This drop as a percentage of net sales is significant, especially in a high inflation environment where pricing is difficult. Despite disappointing volume recovery, the pricing scenario was even more challenging, Felipe.

Felipe Ucros Nunez, Analyst

No, understood. That's very clear. And if I can do a follow-up, on the other side on Chile, you have very good results on gross margins. Wondering if you can discuss what was the key driver here on the expansion of gross margins in Chile.

Felipe Dubernet Azocar, CFO

Of course. Thank you for noting our strong results in Chile. We've performed well across all categories, including beer, nonalcoholic beverages, and spirits. Our brand equity remains robust in Chile, which supports our pricing power. We increased average prices by 6%, significantly outpacing inflation. At the same time, we've maintained and even recovered market share, particularly for our iconic products compared to previous quarters. It's a positive scenario, as we see price increases alongside a recovery in market share for alcoholic beverages. We achieved low single-digit growth in overall alcoholic products while competitors faced declines in a challenging industry. This growth is underpinned by our strong brand equity. Alongside these positive results, we've also made significant efficiency improvements, especially in logistics. Overall, it has been a strong quarter for our core operations in Chile.

Operator, Operator

Our next question is from Vidhi Vira from Goldman Sachs. Can you give guidance for the second half of 2025 profitability and revenue expectations? Can you share color on the free cash flow you expect to generate this year after interest, tax, net working capital, CapEx, et cetera?

Felipe Dubernet Azocar, CFO

Thank you, Vidhi, for your question. First, we don't provide forward-looking estimates, so I can't answer your question directly. Additionally, the U.S. dollar is quite volatile; for instance, it was at 940 a month ago and we saw a 5% devaluation. Consumption, particularly in Chile, appears to be in the low single digits, but we'll need to wait and see. The pricing environment has been favorable thus far, but we cannot predict how competition will influence that. Therefore, I can't give you more precise guidance on this matter. As for free cash flow, we have a positive outlook on operating cash flow, driven by our increased EBITDA and improvements in working capital, such as inventory reduction and efficiency initiatives. We are implementing a new planning platform along with an updated logistics and planning process, which is yielding positive results, particularly in terms of inventory reduction and improvements in accounts receivables. In this quarter, we also adjusted our operating model with Red Bull, which has helped us unlock additional cash flow. Regarding CapEx, we are slightly behind the timetable we outlined in our 20-F, but this has been more than offset by our strong working capital performance.

Operator, Operator

Our next question is from Kevin Cheng from Western Asset Management. Okay. Looks like Kevin dropped. We'll move on to the next question. Our next question is from Lucas Ferreira from JPMorgan.

Lucas Ferreira, Analyst

My first question is on your expectations on COGS for the rest of the year. There was an important drop in aluminum prices, right, in the beginning of the second quarter. Wondering if some of these already was reflected in this quarter's results, or if you expect that drop to be something in favor of the company in the third quarter. And then if you can comment a little bit, especially in Chile, how you see your expectations. You had an important improvement in margins year-over-year in Q2. If that's still the case for the second half, especially in the fourth quarter, right, company had a good improvement in profitability, if you think this is offering tough comps for you? Are you comfortable to once again, especially in the fourth quarter, reach the near 20% margin in Chile?

Felipe Dubernet Azocar, CFO

We are observing an increase in commodity prices, particularly aluminum, which is up 5% from last year at $2,500 per ton. Since we do not hedge, we prefer to adopt a cautious approach, particularly due to the ongoing trade discussions between the U.S. government and countries like China and Brazil. Other raw materials show more favorable trends, with sugar down 14% compared to last year and barley down 60%. This indicates a more stable outlook for aluminum prices moving forward. However, we have some concerns regarding the U.S. dollar, which was around 970 last quarter and averaged 933 for the entire second quarter. The pressure on the U.S. dollar may impact margins significantly depending on our ability to maintain pricing. On a positive note, the second quarter was very encouraging for finance, with our equity levels at an all-time high across all service categories. Consumers continue to favor our products despite the price increases, which provides a solid foundation for our business. While I won’t provide a forward-looking outlook, if we can maintain our current price levels despite the challenges posed by the depreciation of the Chilean peso, we anticipate low single-digit volume growth. Therefore, we could see a strong second half of the year.

Operator, Operator

Our next question is from Orazio Elera from MBI Inversiones. How do you see the situation in Argentina? Is there any green shoots in terms of profitability?

Felipe Dubernet Azocar, CFO

Orazio, I appreciate your question. We are indeed facing a challenging pricing environment. Argentina is experiencing deflation, and if this trend continues, it reflects the necessary adjustments we've had to make given past inflation levels. A few years ago, we dealt with hyperinflation, during which we raised prices without suffering a decrease in volume, but we were unable to generate profit from that operation. Currently, we are in a period of transition. If this new macroeconomic program succeeds, it could positively impact our business in the long run. We have a strong presence in Argentina with solid brand preference that aligns well with our market share. Our operations are focusing on efficiencies, and we've also expanded by incorporating the retail water business. I remain optimistic about the future if the macroeconomic plan is effective and attracts more investment. We are indeed transitioning from a hyperinflationary environment to deflation, which is impacting our profit and loss due to lagging salaries that make it tough to increase prices further. Additionally, competition remains strong. However, we can control our brand equity and the positive initiatives we are undertaking.

Operator, Operator

Our next question comes from Ewald Stark from BICE Inversiones. I noticed that exportation volumes increased by 14% year-over-year. What are your expectations moving forward? Do you believe volumes will continue to rise by double digits, especially since you are actively opening new distribution channels?

Felipe Dubernet Azocar, CFO

So yes, on why our main priority in the export business was to recover scale. Remember, we had a terrible 2023 with the global de-stocking of inventory. And this is, I would say, it's a very encouraging quarter where our volumes grew by 17.4% with very good performance in Japan, Brazil, and South America, while the U.S. market continued to be very complicated. Going forward, we expect, let's say, for the overall year, to continue the recovery we did in 2024 and let's say, something like mid-single-digit growth in our exports. But the second quarter was very good, also above our expectations somewhat. So as I mentioned, in other businesses was below our expectation, the volume in Argentina. But on the other hand, export of wine was above our expectation. This is the multi-category. As I said, there are some businesses that we do good performance, some quarters, some businesses we do. This is why CCU is a leading multi-category company in order to have a good diversification.

Operator, Operator

Our next question is from Álvaro García from BTG. Can you comment on the dynamics of beer versus soft drinks in Chile?

Felipe Dubernet Azocar, CFO

No. Both categories have practically the same growth, low single-digit growth, I would say, beer and nonalcoholic. In the case of spirits, we have a very solid growth because we are the market leaders in the new trendy categories such as ready-to-drink with our neutralized brand. We are a sound leader there. So both were in line in terms of low single-digit growth. In the case of beer, we also improved our market share in quarter 2 versus what we had in quarter 1. So with a good market share recovery in beer across all the brands. So that was good. In the case of nonalcoholic, we grew low single digit, despite an unfavorable mix for us as Colas continue to take more of the whole nonalcoholic beverage or within soft drinks, Colas where we are not the market leaders are taking a greater portion of the mix. But this has been a trend since the pandemic. However, our Pepsi brand continues to gain brand equity, which is important to compete against the market leader in costs. But despite all of this, we experienced low single-digit growth in a very competitive scenario in nonalcoholic, also in beer. But in nonalcoholic that usually sometimes is more rational has been very competitive in the last quarters.

Operator, Operator

Our next question is from Constanza Gonzales from Quest Capital. Thank you for taking my questions. I have two. The first one is in relation to Argentina. You said before that you cannot give us guidance for the year, but could you give us more details about the pass-through to prices of inflation in the month of July? And also just to clarify, in the short term, the priority of the company is to keep the market share in Argentina instead of increased profitability?

Felipe Dubernet Azocar, CFO

Yes, I mentioned that over the past 18 months, the gap between beer prices in Argentina and inflation was 6% lower. We expect to close this gap by the end of the year. It has been challenging to align prices with inflation, particularly considering salary trends in Argentina, while still preserving volume and scale. For us, Argentina is a mature market, and we do not intend to increase our market share through aggressive promotions. As I noted earlier, we believe we have our fair share relative to our brand equity. Therefore, if we maintain our brand equity, we are likely to maintain our market share. Additionally, the water business has performed better. I did not mention earlier, but for the past 18 months, water prices have been only 3% below inflation. This explains why soft drinks and non-alcoholic beverages are experiencing less pressure on profits compared to alcoholic beverages, which have faced more currency devaluation in the past. It is also important to consider that there was significant devaluation in April. If the current impact persists, as indicated by government announcements, we anticipate inflation levels will continue to decrease in Argentina, which is the government's plan. In the long term, as I mentioned, this is a positive development. Argentina is in a unique situation, transitioning from a hyperinflationary economy to a more normal one. This shift has certain costs for consumers, but it is aimed at ensuring a better future.

Operator, Operator

Our next question is from Martin Caldente from BTG. He has a few questions. I wanted to ask how the implementation of the r-PET law has impacted your operations so far and how you're preparing for the upcoming more demanding targets? What kind of operational and financial implications have you seen? And to what extent have you passed these additional costs through to consumer prices? And secondly, how are you currently seeing the outlook of key raw materials such as sugar, fruit pulp, PET, aluminum, and other relevant inputs across your main categories?

Felipe Dubernet Azocar, CFO

Okay, thank you. Again, we have technical difficulty using the platform. But here we go, I think the second part of the question, I already answered. Where we saw better prices in sugar. We pulled, especially sugar. PET is, I would say, is stable, we import from China. Aluminum, I said we are seeing a 25% price stable, let's say. But as I mentioned, input costs are subject to the U.S. dollar. And this is not a good week for us regarding the U.S. dollar going forward. The first part of the question regarding CirCCUlar and the r-PET Law regarding packaging recycling or PET recycling or PET bottle recycling, I will hand over this question to Joaquín Trejo to give you some color on that.

Joaquín Trejo Darraidou, Financial Planning and Investor Relations Manager

Thank you, Felipe, and thanks, Martin, for your question. Yes, the impact of the r-PET law can be seen in the costs and expenses associated with our PET recycling plant CirCCUlar. To give you more color on that, in the second quarter, the impact is approximately MXN 3 billion. This is mainly due to two factors: one, the manufacturing expenses; and second, the additional costs of the recycle we've seen over the building we see. And on a year-to-date basis, it's about MXN 7 billion more or less. And obviously, this is a significant impact considering our total sale because we are talking about more or less 7% of the EBITDA of the Chile operating segment in the quarter. So yes, definitely. And regarding prices, we think it's difficult to pass this on to consumers. In fact, the prices of the nonalcoholic categories in the second quarter grew in line with inflation. So I would say that passing on the cost to prices is difficult to do so as long as consumers actually don't or do value that. So I would say that, yes, it's a challenge because prices in nonalcoholic categories in Chile grew in line with inflation in the second quarter, not above or well above inflation.

Operator, Operator

Our next question is from Fernando Olvera from Bank of America. The two are related to Chile. Regarding the billing performance that we have seen year-to-date, I was just wondering how does this compare versus your initial expectation at the beginning of the year. And my second question, also related to Chile, is, based on the strong pricing that we have seen, how your market share has performed on beer so far this year.

Felipe Dubernet Azocar, CFO

It's great to hear your perspective, Fernando. Regarding our volume performance in Chile, we experienced low single-digit growth, and overall, our year-to-date volumes are flat. This is partly due to the high comparison base from the first and second quarters of last year. However, we've seen a stable trend for beer, which has been capped but remains seasonally adjusted. Over the past three quarters, the industry volumes in Argentina have stabilized as well. It's important to note that we have lower volume and per capita consumption compared to 2021, influenced by factors like the pension fund withdrawal in Chile. Nevertheless, we are observing stability in beer volumes. On the other hand, nonalcoholic beverages are showing a positive seasonally adjusted trend, with the latest quarter performing significantly better than the same quarter last year, even after adjustments. We have seen improved volumes in nonalcoholics over the past four quarters. In summary, I believe we can expect low single-digit growth for beer this year, while nonalcoholics are likely to see growth between low single-digit and mid-single-digit levels, and we're performing strongly in spirits, particularly with ready-to-drink products. I'm not sure if I fully addressed your question.

Fernando Olvera Espinosa de los Monteros, Analyst

Yes, that's great. And Felipe, and regarding the market share now on beer?

Felipe Dubernet Azocar, CFO

No, I already mentioned in the previous question about the share. Overall, it's stable compared to last year, I would say, stable, which is very encouraging is that it's not stable because it's growing, is our brand equity in the year. This is why the pricing power we have.

Operator, Operator

Our next question is from Thiago Bortoluci from Goldman Sachs. I have two, but let me start with Chile, right? When I put together, Felipe, a few of the things that you said, you said stable market share in the year. You said consolidated prices moving above inflation with nonalcoholic growing at inflation, right, which implies you are growing materially above inflation on the year, right? What is driving this momentum for beer, in your view? Like you are growing real prices still keeping market share. Is this about competition moderating? Is this to do with channel mix? What is your assessment on this? I'll pause here, and then I have another one in international.

Felipe Dubernet Azocar, CFO

So as you know, the beer business all over the world has suffered from very high inflation in the last year. The driver is our priority in recovering profitability in our businesses. And the category that suffered the month after the pandemic because of raw materials, because of exchange rate, is beer, particularly beer. And the driver is that we have solid brand equity so it's an internal driver at the end in order to increase prices. So we need to recover the profitability we had before the pandemic and that's clear. So we continue our revenue management efforts, working on our mixes. So the good news is that the mix has not deteriorated in beer in the last two years. Despite having a softer industry, mixes remain the same. And of course, we have a higher market share in mainstream, lower market share in premium, but in spite of this, our market share is almost stable. Of course, in the first quarter, we lost a little bit market share, but we recovered then in quarter 2 while increasing prices. So that's good news, I would say. Did I answer your question?

Thiago Bortoluci, Analyst

Clearly, if I may follow up on the International situation. We are all aware of what’s happening in Argentina, including the activity momentum, inflation, and volatility. However, this is not new; everything was in place at the start of the year, except for the significant changes in foreign exchange rates. My question is more conceptual than about specific numbers. What led to the shift from a mid-teens EBITDA margin in the first quarter to a negative twenties EBITDA margin in the second quarter? I am aware of the foreign exchange factors, but beyond that, how should we view the underlying momentum, particularly when comparing your quarter-over-quarter performance?

Felipe Dubernet Azocar, CFO

Our pricing, when compared to inflation, worsened in the second quarter along with the currency devaluation. I want to start with the devaluation because it’s an important factor to consider for the second quarter. We included this information in our press release, specifically in exhibit 7, which outlines the impact of hyperinflation accounting. This significantly affected us, costing around $3 million at the EBITDA level due to IAS 29, which also influenced our first-quarter results that were adjusted into the second quarter. I apologize for the complexity, as hyperinflation accounting is quite unique to our situation. Despite these accounting challenges, the pace of recovery has slowed down, even though there is still some recovery happening. The first quarter recovery was much stronger compared to the seasonally adjusted fourth quarter, but consumers seem to have reduced purchasing power as salaries are not keeping up with inflation. Additionally, the product mix in Argentina has worsened, contributing to the decline. This trend of slower volume recovery has been evident from the first to the second quarter, alongside wider pricing gaps compared to inflation and increased competitive pressure. We need to continue focusing on efficiency and cost control. Looking ahead, we hope that with a positive trend in inflation in Argentina, consumer purchasing power will improve, creating a more favorable environment to narrow the pricing gap against inflation.

Operator, Operator

We have a follow-up question from Vidhi Vira from Goldman Sachs. Can you provide insights on the health of the consumer in Chile? How are you observing changes in volumes and pricing in July 2025? Are you able to raise prices in the second half of 2025 to sustain and enhance profitability?

Felipe Dubernet Azocar, CFO

Yes, I believe the consumer sentiment in Chile, particularly regarding alcoholic beverages like beer, has stabilized. It's still too early to predict the volume since our business is quite seasonal. Anticipating the fourth quarter, which is crucial, is challenging. Comparisons from July are affected by last year's price increases, but seasonally adjusted beer volumes in July were better than in the second quarter. That's the key point. In the nonalcoholic segment, the seasonally adjusted figures for July were consistent with the second quarter, maintaining a steady performance in that low middle-digit range. Regarding the pricing landscape, Chile remains a highly competitive market, making forecasting difficult. However, if opportunities arise, management will certainly pursue them while considering other key performance indicators. It’s not just about pricing; the stability in the volumes for July 2025 shows consistency. We have not observed any major changes that would impact the prices we have already set. Enhancing our revenue management would be beneficial, but I can't make any commitments due to the competitive nature of the market. Hello Everyone, to attend this conference call. In summary, in quarter 2 2025, we almost doubled consolidated EBITDA for a robust expansion in our core operating segment, which is Chile, and a high single-digit EBITDA expansion in the Wine Operating segment. As I mentioned, we still face a very challenging scenario in Argentina. But for the future, we think it is for good, as I said. Revenue management and efficiencies were key to achieve this quarter 2. Moreover, we were able to deliver volume growth in all operating segments and core categories in a context of soft industries. To conclude, and I would like to mention that at the end of this call, this is a very symbolic year for CCU as we are celebrating 175 years of history. We will continue implementing in this year our 2025-2027 strategic plan, supported in our multi-category strategy and our vast business experience to ensure sustainable and profitable growth for our company. I wish you a wonderful afternoon. Thank you, all of you.

Operator, Operator

That concludes the call for today. Thank you, and have a nice day.