Coty Inc. Q1 FY2026 Earnings Call

Good morning, and good afternoon, everyone. My name is Madison, and I will be your conference operator today. At this time, I would like to welcome everyone to Coty's First Quarter Fiscal 2026 Question-and-Answer Conference Call. As a reminder, this conference call is being recorded today, November 6, 2025, at 9:30 a.m. Eastern Time or 3:30 p.m. Central European Time. Please note that on November 5, at approximately 4:30 p.m. Eastern Time or 10:30 p.m. Central European Time, Coty issued a press release and prepared remarks webcast, which can be found on its Investor Relations website. On today's call are Sue Nabi, Chief Executive Officer; and Laurent Mercier, Chief Financial Officer. I would like to remind you that many of the statements today may contain forward-looking statements. Please refer to Coty's earnings release and the reports filed with the SEC where the company lists factors that could cause actual results to differ materially from these forward-looking statements. In addition, except where noted, the discussion of Coty's financial results and Coty's expectations reflect certain adjustments as specified in the non-GAAP financial measures section of the company's release. We will now open the line for questions and take our first question from Rob Ottenstein with Evercore.

I have a few questions regarding Gucci. First, could you discuss how exiting the Gucci license will affect your overall portfolio and your thoughts on that? Additionally, does the announcement from Kering, along with L'Oreal, influence your overall licensing model in any way? Are there any adjustments to that? Finally, is there any chance that Kering might attempt to reclaim the Gucci license before its expiration, and could you negotiate an early termination of the license with Kering?

Thank you for the opportunity to discuss this important topic. To address your first question regarding the impact of the Gucci license exit on Coty's portfolio, with the public announcement that we will no longer have the Gucci license after its expiry, our focus moving forward will be on three main areas: First, we will prioritize the brands with the greatest long-term growth potential. Second, we will enhance the new licenses and brands recently added to our portfolio. Third, we will optimize the Gucci brand during its remaining time while respecting all contractual obligations. The uncertainty over the Gucci license has posed challenges for Coty, particularly concerning strategic brand development and our overall portfolio. However, with clarity now on the brand direction, we have a great opportunity to grow the remaining portfolio with a stronger focus, especially on the ultra-luxury segment, which includes brands like Atelier des Fleurs from Chloé, Burberry Signatures, Jil Sander Collection, Infiniment Coty Collection, and upcoming Etro and Marni collections. Despite the loss of the Gucci license, we remain among the top three global fragrance companies, including in the prestige segment. We will continue to optimize the Gucci brand in a tactical manner until the end of the license while also accelerating the growth of our other brands. Over the past five years, we have seen impressive growth in several of our largest brands, including Burberry growing by 140%, Hugo Boss by 33%, Chloé by 70%, and Marc Jacobs by 50%. This allows us to focus even more on expanding these brands while also developing new ones like Swarovski, similarly to how we grew Gucci by 60% in the same timeframe. I want to clarify that recent media rumors about Coty potentially selling some of our key fragrances are completely false. We are more committed than ever to establishing our place as a prestige beauty company, emphasizing fragrance and scenting along with top-tier capabilities in cosmetics and skincare. Our long-term fragrance brands are essential to this strategy. Moving on to the second part of your question regarding the impact of these events on our licensing model, it's clear that recent developments confirm that specialty beauty players like Coty will continue to be successful. The beauty industry is complex and costly for non-beauty companies, which enhances the attractiveness of our licensing model. Our licensing approach provides strong returns with no significant upfront costs, and established brand equity increases the likelihood of success. A successful licensing business relies on diversifying the portfolio and minimizing the risk associated with license duration. In recent years, we have proactively renewed and extended several key licenses, such as those for Hugo Boss, Marc Jacobs, adidas, and Davidoff, often for an additional 15 years or more. Currently, 85% of our portfolio consists of either owned brands, perpetual licenses, or licenses with a long duration of more than seven years. For our core beauty portfolio, approximately 80% of brands are either owned or under long-term licenses. We have also ensured that no single brand represents more than about 10% of our sales. Addressing your final point about an early exit from the license, I want to clarify that there has been no change to our ability to operate the Gucci Beauty license. All contractual rights remain in place, and Coty will continue managing Gucci Beauty under the existing structure. We are working amicably with Kering on this matter, and regarding potential deals, we are always open to assessing any proposals that could create genuine value for the company.

And we will take our next question from Susan Anderson with Canaccord.

I guess maybe just a follow-up on the last question. I did see that Coty filed a lawsuit against Kering for recent contract. I guess maybe if you could just talk a little bit about what that means for Coty, if that maybe helps to sell the license back early? And then also, I don't think you talked specifically about any financial impact when the Q2 license does transition to L'Oreal. Not sure if you could give any numbers around that.

So let me maybe start with the second part of your question, which is around potentially the impact of this exit when it happens. As we have been discussing for some time now, we have been actively focused on risk management in the portfolio of Coty. And again, as I said it earlier, no brand bigger than approximately 10% of our sales. Now that the public announcement has been done that the license will no longer be part of our portfolio after the expiry date, our focus for the next several years will be on overdriving the brands with the biggest long-term growth potential. It's going to be also on building and amplifying the new licenses and brands we recently added to the portfolio and in parallel, optimizing the Gucci brand during its remaining term. As you can know it, Gucci is currently a sizable brand in the portfolio. So the loss of the brand at expiry will mean some profit impact in the year after. To address this gap, we will be overdriving again, all the other rest of the portfolio while also addressing our cost structure. Now regarding litigation, what I can tell you is that, of course, I will not comment on ongoing litigations. And I can tell you that we will defend our rights until the last day, until the last hour of the contract.

And we will take our next question from Filippo Falorni with Citi.

Sue, maybe can you comment a bit about the better performance that you're seeing in fiscal Q2 that is driving you to the higher end of the range? Are you seeing an acceleration in some category growth? Is it the inventory dynamic solving itself earlier than expected? And then I had a bigger picture question on the fragrance mix. Can you just help us dimensionalize the opportunity in that category and also just the margin profile as you expand there?

Regarding the better performance we anticipate for Q2, which has led us to adjust our guidance upward, it's a combination of factors. The fragrance market in the U.S. remains very strong, with growth in the mid-single digits, and we see Q2 market dynamics confirming this trend. We expect a successful holiday season. Additionally, our innovations, particularly the BOSS Bottled Beyond launch that began at the end of Q1 and was exclusive to Travel Retail until late August, have been very successful since it hit domestic markets at the end of September. BOSS Beyond Bottled is currently ranked #2 in Europe, #1 in volume in the DACH region, #1 in Australia, and #6 in the U.S. for a brand that has not traditionally been prominent in this market. This is a significant strategic move for us that we believe will enhance our market share in the growing male fragrances sector. Furthermore, the entry-level prestige segment is also very dynamic, particularly with Mist products, which currently account for about 2% of our Q1 fragrance net revenues. We have climbed to the #3 or #4 position in Europe and are #1 in Italy. Brands launching their own mists are experiencing a strong positive impact on their overall business, including Kylie, Philosophy, and Calvin Klein, with more brands set to enter the market soon. Lastly, concerning the gross margin of mists, we designed them to be fully incremental, attracting younger consumers from Gen Z who typically don't buy traditional fragrances at that level. Moreover, the gross margin aligns with that of our prestige fragrances, indicating no dilution in our approach. In summary, our better-than-expected outlook for Q2 is driven by our unique ability to balance various market segments while maintaining a focus on our premium fragrance business.

And our next question comes from Oliver Chen with TD Cowen.

Laurent, as we are excited about the second half here, what are your thoughts in terms of the key launches and how you'll think about categories and the comparisons as well that will give that return to that growth in the second half? Also, as you think about Consumer Beauty in Brazil, I would love your thoughts there on potential outlines and outcomes and timelines.

Thank you. We are indeed confirming that we will return to growth in the second half of this fiscal year. The key driver behind this is the ongoing momentum in the beauty category, particularly within the Prestige fragrance segment, where we are seeing consistent and resilient growth. For instance, the fragrance growth in the U.S. for Q1 was up by 7%, and our sellout figures align with this growth. The efforts of the new management team in the U.S. are confirming that this positive trend will continue and even amplify in the second half. Last year, the U.S. was a major concern for us, but we are now recovering rapidly. This growth will be supported by strong innovation, with products like BOSS Beyond Bottled already showing great potential. We will also introduce an additional blockbuster in the second half. The fundamentals for our growth are solid. It’s worth noting that by the end of calendar year 2025, we expect our sell-out performance to align more closely with sell-in performance, as we are observing a significant decline in inventory levels with retailers. This synchronization will help us return to a well-balanced sell-out and sell-in dynamic. In terms of Consumer Beauty or Cosmetics, Gordon Von Bretten is now leading this division. He is well-acquainted with the company and is currently reviewing the division's full potential, focusing on all key aspects. His primary goal is to rejuvenate the profit and cash generation from Color Cosmetics. He is already moving quickly, has built a strong team, and is addressing all areas of the P&L, including revenue growth, gross margin, allocation of marketing spend, and fixed costs. I will keep you updated on our progress. Regarding Brazil, it remains a profitable market. The initiatives undertaken in recent years have yielded excellent results, and we expect conclusions on Brazil's performance to come sooner than those for Consumer Beauty and Color Cosmetics.

And we will take our next question from Olivia Tong with Raymond James.

With respect to fragrances, you've got really substantial growth both in Ultra Prestige and Mist. So can you talk about the opportunity you see for both of them? And more importantly, how to balance the 2, particularly in terms of the Mist side? And then just building on that, just thinking about the barriers to entry on Mist and then what your view is on price/mix impact over time given those dynamics?

Let me take this question. So again, let me start with the Mist part. So this Mist, as I said earlier, we really designed them with 2 or 3 principles in mind. The first principle is that we have to be where the Gen Zs and the consumers are shopping today, and they are shopping this kind of fragrances. You could think about a Mist like a kind of modern Cologne. It's not new, the Mist. But the way we've designed our Mist maybe is the comparison that could be done between a Nokia Mist and an iPhone Mist more or less. So that's exactly what we have done. And on top of this, we added entry barriers. Indeed, it's a very important element. First, in terms of our ability to use the library of winning scents from our Prestige division. And number two, I can tell you that the formulation of our Body Mist, whatever is the brand, are patented formulations using ingredients that are there to act on the longevity of the scent on the skin of the body. And this is really a unique know-how to the company, which allows us to do what a lot of brand Mist has not been able to do so far, which is to create a lasting impression. If you read online, what people love and hate about the mist, they love that it's easy to spray. It's also stackable. The mist phenomenon is incremental because a lot of young users use it as a luxury and then they add their favorite fragrance at the main outfit on top. So it's not instead; it's with the rest of the fragrance consumption. And if you look at social media, the #1 need gap is that it does not last. So this is where we use this patented technology that allows the fragrance to stay on the skin as true as possible from the moment you spray it on to the end of the day. So that's the first element regarding the mist. And for me, the mist is just a first step into what we call scenting everything, which I believe is the mission of the company, the know-how of the company and the competitive advantage of the company. So you'll see many more things arriving in the near future around scenting your body. Number two, which is around the ultra-premium part of the market. This part, we used to call it niche. I think niche is really a wrong word because it's not that niche. In fact, today, if you look at the biggest niche brands, they represent multiple hundreds of millions of dollars of net revenues. In a country like the U.S. or in a country like the U.K., it's close to 20% of the prestige fragrance market. So it's a sizable portion of the market and probably the most profitable part of the market too, given the high prices that are used in this area. There, it took us some time to build the portfolio, but now we have a portfolio. Again, there aren't that many companies that have a portfolio of ultra-premium brands. Again, I quoted earlier, of course, the Chloe, Atelier des Fleurs collection, the Burberry Signature Collection, the Jil Sander collection, the Boss collection, the upcoming Marni and Etro collections and of course, the own brand, which is Infiniment Coty Paris, and we are continuing to chase new names in this area so that we are able to build a Coty ultra-premium business that represents between 10% and 20% of our business. And today, it's only 1%. It's growing at 17%, but we start from a small base. So for me, this is a fantastic growth engine for the future of the company. So again, we are the only company playing high low on top of the core of the market.

And we will take our next question from Ashley Helgans with Jefferies.

This is Sydney on for Ashley. Can you talk a little bit more about what you're seeing in terms of promotion and how that maybe varies by region or channel? It sounded like there was some challenge from peers leaning into promo. So just curious if that puts pressure on you guys to shift your promotional approach at all. And then also just curious about any trade down or up dynamics. As you've mentioned, you are really spanning price point, especially within your fragrance offering. So curious kind of what you're seeing there in terms of consumption trends.

Yes, we are observing some promotional activity, particularly from some of our competitors. However, we are maintaining a disciplined approach and are not being overly aggressive in this area. We are focusing on innovation and protecting our brand. Additionally, we are developing strategies to avoid excessive promotional activities by implementing dedicated teams for revenue management, which helps us navigate this promotional landscape. For instance, in the U.S., a rapidly growing category is pen sprays, which are smaller and priced lower. Instead of promoting our flagship products, we are guiding consumers to try this segment as a smart entry point before moving on to our iconic products. We are creating various formats and strategies to meet pricing expectations. Interestingly, the high-end category is thriving, demonstrating that our capabilities and formulations are driving growth beyond just price. We believe that addressing the full price range, from $5 to $500, effectively responds to the current promotional pressures by catering to all consumer needs. We are being selective to ensure we protect our profitability. Regarding the trade down or trade up dynamic, managing that full price spectrum is key. Body Mist, priced at $20 to $30, is particularly popular among Gen Z and serves as a gateway to more premium products. Overall, our strategies, teams, and tools are well-equipped to navigate this environment.

In fact, to complement what Laurent just said, we are seeing clearly that consumers are stacking the scents. This comes from the Middle East. This is a trend that's globalizing. We call it scent stacking or scent wardrobe depending on the moment. So it's about using a body mist on your skin and then using a lotion on the rest of your body. And on top of this, you have your favorite cologne for the day and your favorite elixir for the night. So that's exactly what we are seeing. So no trade down because the more expensive categories are the fastest growing, but it's a story of end rather than a story of either in fact.

And we will take our next question from Charles Scotti with Kepler.

Do you hear me?

Yes, we do.

I have 3 questions, please. The first one, how is the shift toward e-commerce affecting the sell-in, sell-out dynamics? I suspect that brick-and-mortar retailers are experiencing some destocking, partly due to the intensifying competition from online players. So I would like to understand whether the shift to online, particularly in the U.S., could lead to a prolonged period of net destocking in that market? Second question on EMEA, which if I'm not mistaken, was down 9% like-for-like in Q1. It seems that it's the mass color cosmetic business, which is dragging on growth. Could you comment on the trends of the Prestige fragrance business? You mentioned mid-single-digit growth in the U.S. What about EMEA? And if you could give us an idea of the price mix volume breakdown of the category, both in EMEA and in the U.S., it would be helpful. And lastly, in China, demand seems to be recovering. You are obviously under-indexed on the Chinese market. But you mentioned that the outlook for the fragrance category is quite promising. Who do you think will take the lion's share of the market between the niche brands and prestige brands? And with which brands are you going to tackle the Chinese market more specifically?

Charles. So indeed, I can take the first one, indeed, and we can complement on China. So indeed, on your question about brick-and-mortar and e-commerce, just to zoom out a little, yes, of course, I mean, e-commerce is growing very fast. And you know that now it's more than $1 billion net revenue for total Coty Link, and it's growing fast. In the Q1, we are seeing, I mean, the sellout of our e-commerce on both divisions is 5% to 6%. So indeed, we are really taking full opportunity of these channels. So that's, of course, very dynamic. From a destocking standpoint, no major difference between both. What I would highlight, though, is that, of course, e-commerce players and the #1 being Amazon, as you know, they are very strict and very well organized on their inventory management. So indeed, it means that it's creating, if you look at a full picture indeed reduction of retailers' inventory. So indeed, you have, I would say, I call it more a mix effect from between e-comm and brick-and-mortar. So that's a fact, but it's not material. The other element is also that it's putting pressure on the brick-and-mortar retailers. And as a result, they are also becoming more disciplined and strict on their inventory management. So I think you need really to look at it more this way between both channels. EMEA yes, down, indeed, yes, it's mostly color cosmetic, indeed, as you see for the whole company. Indeed, our Prestige fragrance sellout is positive. So it's really dynamic. And again, all the innovation that we are bringing, I mean, BOSS Beyond Bottled is the #2 male initiative in Europe. It's #1 in volume in Germany. And we are only at the beginning. So it's going to continue and amplify in the Q2. So you will see really the sellout in EMEA continue to increase. At the same time, same as in the U.S., yes, we are still facing, and we will close by the end of the calendar. Indeed, from a selling standpoint, facing the retailer destocking. And for example, Douglas made public that they are focusing on inventory reduction. So these are really on the first 2 elements. And yes, I will hand over to Sue.

Laurent, maybe I can complement your answer regarding the dynamics of the fragrance market in the U.S. versus in Europe. Again, what we can say is that the Prestige fragrance market grew by 5% during the quarter globally, which is a little slower than months ago, but it's ahead of many other consumer categories, including color cosmetics. In the U.S., the market remains very strong, as I said before, 7% of growth in the quarter. And very importantly, this is to answer your question. This includes low single-digit volume growth since the category continues to gain users and additional usage occasions. In Europe, the picture is a bit different, where the market has been growing only by low single digits in Q1, coming from mid-single digits. This is mainly due to one market. It's very important, where, by the way, Coty is quite small. It's the French market where the likes of L'Oreal, are very big. It's the market that is really very big and not very dynamic, whereas markets like the U.K. and Spain remain very strong with a mid-single-digit growth, including here again low single-digit growth from units. So that's the picture between U.S. and EMEA value/volume growth. Now on China, the market is recovering. That's good news. It's recovering on all the categories that the company is playing on, be it skin care or fragrances or color cosmetics. Coty has posted 15% sell-out growth in the market to be compared to a market that was around 7% of growth, which is a good growth. And this was driven by our skin care business. Lancaster is doing wonders in this market, which is very important. It's the most competitive skin care market in the world, even if it's from a small base. The brand is doing 90% of growth on a market that's more or less 8% to 9%. So we are growing 10x faster than the market, both in photoprotection, which is UV care, but also on traditional skin care with our moisturizer among the best-selling moisturizers of the Chinese market. The other part, which is the biggest part of our business, it's 70% of our business, it's fragrances. And there, the market is back to growth, and we are growing 2x faster than the market. So your question is what is needed to compete on this market? Exactly the brands we have at Coty, in fact. There, it's not a question of high, low. It's all about high, high, high, high. And the higher you go, the better it is. And again, I've been describing at length the very comprehensive portfolio of ultra-premium brands that we have today in our hands. Again, Atelier des Fleurs which is phenomenally doing well in Asia, Burberry Signature, BOSS Collection, Jil Sander Signature, Marni and Etro upcoming collection, Infiniment Coty Paris, and I'm sure I forgot 1 or 2, but this is really a portfolio that will allow us to play in this area like never before to reach here not 20% of the market, but likely 40% to 50% of the Chinese market are ultra-premium brands. So there, there is really a big game to be played with a very, very profitable business to build.

And we will take our next question from Anna Lizzul with Bank of America.

I was wondering if I could follow up on the Prestige fragrance expectations for just the holiday season. Gifting is such a big driver of fragrance sales for many retailers during this time. And should we expect trends, I guess, be more similar as you saw in fiscal Q1 on the more difficult comps for prestige fragrance gifting despite some of the sequential improvement that you might be expecting in the next quarters? And then on the mass beauty side, I just wanted to follow up on the comment regarding the rapid channel shift. If you could elaborate on where you're seeing buyers gravitate in mass beauty and how it's impacting your business?

Yes. I mean, just to confirm again, and we shared with you a few numbers. I mean, we are very confident, again, about the prestige fragrance performance and category. Again, you know the numbers. I mean it has been very resilient for many years, many quarters. The fragrance index that we talked a lot about, I mean, is fully at play. So we are expecting a similar trend for Q1, also amplified by very powerful innovation and BOSS Beyond Bottled is one of them. We are seeing Gen Z being very excited by the category. And again, back to the previous point, what's very healthy is $5 to $500, where we are seeing the high premium category growing double digit. And of course, holiday season is a great season for that. And at the same time, we are seeing entry premium being very dynamic. So yes, we are expecting really very dynamic trend in the U.S. and also in Europe. So now on the...

So, if I understood why your question, it's about the shifts that are happening between, let's say, the brick-and-mortar/e-retailers on one side versus Amazon and TikTok Shop on the other side. If I'm not wrong, then I will elaborate on this. What we are seeing indeed is a shift that's very important. And it's a story of end rather than a story of either again here. It's a question of funnel. And what we see is that a lot of the youngest consumers at least are really looking for what's new on TikTok, almost like a search engine and a hype engine at the same time. It's already also an e-commerce engine, not in every country. It's the case in the U.K. I think it's the second beauty retailer already in the U.K. And this is where we learned our lesson with Rimmel, where we really tested the channel to understand how to play with this channel. And we understood that we need to see it as an investment channel now more and more as an e-com channel, but this is really where you create the cool factor for your brand. And then you move to Amazon, where you get the ratings and the big numbers. And then after you go to the rest of the retailers, including dot-coms from retailers. So that's really a way that is today played by key players when it comes to how to create virality or how to create desirability and demand. So we are doing this in the U.S. also with CoverGirl that also did a test on TikTok Shop recently, and we are amplifying these 2 moves in the coming quarter with the new innovations that are going to be done in Q3. The other thing that we are also seeing is that there is also a shift in terms of the share of what we call indie mass color cosmetics brands. If I take the example of MCoBeauty in Australia, which was kind of this kind of indie brands that are quite cheap in terms of pricing, very nimble, very agile, mainly from the shelf innovation from TPMs, et cetera, they are collapsing. They are collapsing after 1 or 2 years, and this is really something that we are seeing across many regions with this kind of players, including the key ones in the U.S., but also in the U.K. who are starting to lose market share and who are not giving the growth of the category that retailers are expecting. So we expect a kind of inside the channels, we expect a kind of rebalancing between these indie players, which are more or less new players and the more traditional players, which are learning the lesson quite quickly.

And we will take our next question from Shovana Chowdhury with JPMorgan.

I have a couple of questions. You addressed the strategic review earlier regarding Oliver's question, but I'd like to explore further how you're evaluating the different options. Can you provide more insight into the results that will guide your decision for each option from this review? For instance, are you considering keeping the business, especially given the management changes and the recent attempts with CoverGirl testing on TikTok? Or are you looking at a joint venture or a complete sale? In light of the strategic review, how do you balance the decision from the review with the wellness sale?

Okay. Let me take this last question. So indeed, what we are doing are 2 stories, 2 very different stories. So you have on one side, the Brazilian business, which, as Laurent stated it before, is a very profitable business, a business of $400 million, a business that doubled its size in the last, I would say, decade, a business that has its own factory that produces more or less 0.5 billion units per year. R&D specialized in melanin-rich skins. You have also end-to-end capabilities, be it in terms of digital capabilities, commercial capabilities, marketing capabilities. And last but not least, with a portfolio of brands that are very different from the global portfolio of brands that Coty is operating elsewhere. So it's really local players, the #1 nail maker, Risqué, the #1 nail skin care brand in the market, big growth in terms of face skincare, leadership position in terms of body scenting. So it's really a business that we believe have potentially more chances to continue to do its journey with a new acquirer, if I may call it like this, and this could happen quite quickly given the size of the business, the profitability, and the dynamics. So that's one. On the other side, regarding the color cosmetics business, there, again, the strategic review is a real one. It's not just a word to mean something else. It's really reviewing our strategic options. The first one is by nature to do the job of making this business as growing and as profitable as possible and as quickly as possible. And there, the go that Gordon and myself are having at the helm of this business, hopefully will produce quick results that we will see in the coming quarters. Then there is a deeper work that's going to be done on the cost structure, on the gross to net ability to lower this part that is today very, very heavy, but also on the A&CP allocation. We believe we went too far in terms of by nature, the least loyal consumers on earth instead of keeping our key loyal millennial and Gen X users, which are the big portion of the market, but also the ones that are growing more and more this kind of market, given the indie brands are not growing anymore in the market. So in a way, that's really the outcome potentially of this part. And there, the first results in 12 to 18 months, but it could take longer. So there is not the idea to sell the business tomorrow. There is the idea to really assess all the possibilities and see if this is an area where we want to continue to play or not, specifically given the fact that it's going to be more and more, and we see it, a business of in and out small players, sometimes they go big, but they become smaller later and they take a shelf space and they disappear. So that's really something we need to pay attention to. Do we want to play this game or not? Are we equipped to play this game? And are we able to do, I would say, positive progress in this area. Now does it have any impact on wellness? Absolutely not. Wellness is a very separate topic. As Laurent said it several times, the standstill period is over since the end of calendar '24. We are actively more than ever working on this topic right now. So stay tuned.

And at this time, there are no further questions in queue. I will now turn the meeting back to our presenters.

Thank you, everyone, for your questions, and see you soon.

Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.