Blau Farmacêutica S.A. (BLAU3) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to our earnings call for the second quarter of 2025 of Blau Farmacêutica. We are live at the Blau studios in Sao Paulo with Marcelo Hahn, CEO and Founder; Douglas Rodrigues, the CFO and Investor Relations; and Matheus Fujisawa. Our call is taking place in Portuguese with simultaneous translation into English. It will be available on our IR website soon. At the end of the presentation, we'll have the Q&A session with prior for the sell-side analysts. [Operator Instructions] Now I pass the word on to Marcelo to begin his part.

Thank you, Matheus. Good morning, everyone. I would like to start off talking about the transformation the company has been going on in the last few years. So in 2019, the revenue was focused on 2 drugs to avoid this reliance, we really invest in the research and development, and we expanded our sales force in the private market, being closer to the private hospitals. But we're not giving up on the public market as well, reducing our reliance. So there was always a point of caution from investors that have been watching our work over many years. So this trend towards deconcentrating improved the company's performance, reduce volatility and improve our efficiency. But these products that lost the relevance, had a high ticket and we required a big volume of other drugs to compensate or offset this loss in revenue, which made our factories operate full swing in the last quarters with our full capacity. We just completed 2 new production lines, and we hope to complete a third line until the end of the fourth quarter. And we hope to bring in an increment of this revenue in the fourth quarter this year. Then at Blau Goiás, we're also building a new line, where we have been work -- we've been scheduling to finish at the end of August. And this should meet our needs in the short and midterm. But to address in a structured manner in the long term, we're investing in a factory with 3x more capacity, and we'll have tax incentives as well to develop the region there. With this challenge, the consolidated revenue in the quarter was stable in the annual comparison. It's important to highlight the resilience of our core business, but even with all these challenges and a comparison base from the second quarter of '24, it's still possible to really keep up with positive results. So in the last 12 months, the growth was 14% above market in the segment that includes the other business units. And we've already gone back to operating the 2 brands for Botulinum Toxin. And in the Retail business unit, we had some challenges also to keep our performance last year. That was favored by an environment that this business unit got back to competitive advantage this year, and we're very confident about our resuming growth in the short term, and then we'll get into more details about this and how we're going to accelerate growth in the end of the presentation. This important highlight was the operational margins with a positive trend. And quarter-over-quarter, we improved until we reached the current margins. The gross margins reached over 40% in the quarter, seventh quarterly advance with an important highlight to Bergamo, which has reached its consolidated level of margin. And so the recurring EBITDA reached a value of BRL 122 million in the third quarter, the biggest nominal volume with an annual growth of 34%. The EBITDA margin went over 26%, and that reached the highest level post pandemic. And so we had BRL 100 million in the quarter, it's important to highlight the investments and increase of the competitive advantage. We recently launched and communicated the company's decision to not convert shares for the loans for the Prothya, and that was operational results below expectations for Blau and the needed value for the acquisition will be very relevant. The turnaround risks and financial efforts also as well as high interest rates would inhibit the company to perform the proposal for 100% of the asset, the detriment of an offering provided to third party. Also the main reasons for this decision-making process as a preceding conditions, Blau will receive the BRL 50 million in euros invested -- sorry, EUR 50 million invested and the sector for the investment proven to be assertive, protecting the balance sheet and a quick exit possibility. And Prothya financial results were never consolidated in Blau. So we wouldn't have any kind of negative impact on the company's results. This value of investments in Prothya that gets back to Blau will be important to accelerate transformational investments we've been working on, especially to add productive capacity and develop new projects. So now I'll pass the word on to Matheus to continue the presentation.

Thank you, Marcelo. On Slide 4, we can see the revenue and the launches in the last 12 months continues to grow, and that reached to BRL 111 million or 6.3% of the net revenue. And when it comes to the other investments in research and development, it has been stabilized, we see a level of about 9.5%. That's when we performed the first launch in the year, Imatinib Mesylate. This is an oncological drug that transformed the treatment of leukemia. And the market is being produced in our Caucaia factory. And besides the develop of new products, we've always been investing in incremental innovation and the packaging with a fraction amount of this product is an example of this. So it's an important competitive advantage as it makes it easier for health professionals and hospitals to operate it. And in the quarter, we had another set of drugs that are also approved. These are drugs that we already have in our portfolio in Latin America, and we submitted 17 drugs for approval, most of them in Latin America, where we're replicating the portfolio we have in Brazil in the region. And among the 17 submitted drugs, we also have some unpublished future launches, with about -- representing about BRL 100 million. That's why we updated the value of our drugs submitted to ANVISA to about BRL 3.1 billion that was submitted to ANVISA, the authority. With BRL 2.9 billion that are still going to be launched, most of them in '26 and '27, with part in '25 still. And on Slide 5, we can Blau reached its net revenue of BRL 465 million, which was stable year-on-year comparison mainly due to the issues related to capacity constraints in some specific lines and also some more unscheduled shutdowns of the plants. And in compared to the previous quarter, we had a growth of 25%, which was already expected due to the seasonality that was negative in the first quarter, we also counted on the normalization of the business unit of the Aesthetics services that had a temporary impact as well. And so the Hospital segment grew 2% and despite all the impact we mentioned, and we still have this comparison basis, that's a lot stronger in the quarter. Additionally, the segment that includes the Retail, Aesthetics and Plasma added an increase of 12%. The Aesthetics BU normalize its growth. And however, we do not have Plasma revenues and the Retail business unit had [indiscernible] it was a very strong comparison base of some relevant products last year. And so this year, the competition is normal. But what's most important is that the capacity expansion work have been advancing and we're able to grow even while the work is -- the construction work is still in progress. And we're going to provide more details on this at the end of the preservation. I pass the floor on to Douglas to continue the presentation.

Thanks, Matheus. Good morning, everyone. I think it's very clear, Marcelo also detailed that [indiscernible] moment of this quarter is a moment of transition. Yes, the company has been going through an important product mix. And these are products that were very relevant to revenue, with another dynamic for the utilization of this to expand this mix. This is very beneficial when it comes to results and creating more value over time. But it goes through this transition pain period. And more than ever with this moment of restrictions in productive capacity to accelerate the growth in the top line. The focus is always going to be the margin. So the company demonstrates this in a very consistent manner. And it's a seventh quarter actually, that's recurring where the company can expand its gross margin, looking at the best mix as well. And so Bergamo is a topic, we've always been discussing. If we look at this in the quarter, Bergamo already has the same margins that was consolidated in the company a year ago in the second quarter of '24. And then in the annual evolution, we have almost 400 bps in the gross margin. So yes, I do think the company is really performing the best it can and using it productive capacity at this moment. So it's important to highlight also that even at the Blau Day, we highlighted what were the investments the company would address in '25. And this is already something we are considering by the '24, where due to the shift in the mix, the capacity of the current production plants would have to be adjusted with some reflection in 2025 and a bigger unleash in '26. So that's why we're very confident in the perspective and expectations for the next quarters. Moving on to the next slide, I think we can even look at some comments in the analyst reports and the important -- when we look at the operational expenses comparing with the first quarter, you can see that we saw the same levels of expenses. And when you look at the annual comparison versus the second quarter last year, we have a positive effect, right, of the NPL. Just to remind you all, in the second quarter, the company had all of the provisions made for customers that got into Chapter 11 processes. And after the -- when you exclude the NPL, you have a growth of the commercial expenses due to an intention of accelerating the revenue in the company. And R&D is really in line with the development of products, which is a focus still. And so basically, the positive effect here is for the NPL. When we look at this, we can see that due to the Bergamo purchase or acquisition mechanism, there's an expectation for some contingencies and liabilities where we could have reimbursement by the old owners. So you can see liabilities, but you can also see assets where you have this other line. But besides this, the expenses are following a level, which is basically what we should expect for the next quarters. Of course, when we look at the percentage over revenue share, when you accelerate the sales in this quarter compared to the last quarter, we have an important dilution. And that, of course, has a reflex, but there's an EBITDA that's very strong with the best margin ever since 2023 and a growth annually of 34%, which is basically based on the gross margin issues and also in comparison with the quarter, the effect of the NPL. So this acceleration is also due to the dilution of the sales. When you keep this level, or you growing the top line, you would expect a dilution of the expenses. And so I think we follow this path here. And when you look at the curve of the net income, you can see the evolution of the annual base, that's really in line with the operational gains and especially in this quarter, we have a reduction in our margins. But because I want to remind you that in the previous quarter, we had the disclosure of the interest on capital to neutralize this as a strategy to perform the tax planning and we had the recognition of the sales in the Botulinum Toxin and that strategy for that quarter. But now in the second quarter, you have a different approach. But of course, this could be one of the strategies. So as Marcelo mentioned, with the returns on investments at Prothya, the company will have financial gains and probably that would also be a mechanism to start looking at this as a possibility to amortize this gain and bringing a rate at the levels we have. But of course, when you look at the annual comparison, it grows 22%, we should highlight this. So working capital as the challenge with the productive capacity. This is an important homework, let's say, we've been looking at this and when you look at the annual comparison it's basically the same cash cycle, but we were coming from a very positive trend. Now we're having some additional challenges, right? But when it comes to the inventory, we consider imported products, but we should also consider that they also have a higher average ticket. And then you also have the FX, which is where you have a stock, we don't have revenue at the moment. So these are topics for us to consider in the second quarter. And then once again try to find ways to have turnover of the stock and get back to the levels of the trend -- the positive trend that we had before, right? So basically, you're considering the seasonality in the sales in the first quarter and then we look at the next quarters, we'll probably get back to the level initially which is not in any way related to the new negotiation timing or some additional portfolio risk, right? Basically, it's the seasonality of the sales in the quarter. And that will be something we'll address in the second semester and get into a more positive trend, where we have the working capital consumption of the capital of BRL 100 million, which is really impacting the cash generation in the second quarter. And then moving on to the next slide. When we talk about CapEx, yes. It's natural that we would have to highlight the issue where we need to continue to look at the development of these products to accelerate productive capacity, and we had this quarter with greater amount of CapEx payments. But when we look at the second quarter, we can assume or consider, that the average of the first quarter should be expected for the next quarters. But the company keeps up with these investments to address the capacity, the productive capacity and also in line with what we mentioned in the Blau Day, the operational cash generation of the company, we can consider all of these investments for CapEx and productive capacity which will keep the company's leverage low. And additionally, with the arrival of the Prothya cash, the company would be in a lot better positioned to continue performing the assessments of its strategic investments. So Blau is in a very favorable scenario, positives scenario, when it comes to the leverage and cash. And you can see this in the previous slide, our leverage on the quarter is 0.3, and it's been actually evolving to 0.1 by the end of '24, but it's still really low level of leverage. And of course, to accommodate this in our operational cash generation, commanding investments. And of course, we have room to improve cash generation. And I think these are all topics and a possibility as well as being addressing the productive capacity. But to summarize, this is a very attractive investment thesis with consistency in deliveries of the results in the short term and already addressing a future return rate. So now I'll pass on to Marcelo, and then we'll get into Q&A.

Thanks Douglas. Now on Slide 12. We analyzed the period. It's a little extended. We can see some phases at Blau in the last few years. Where we've been evolving. First of all, in 2021 and '22, we had a favorable period for our revenue and our margins driven by the pandemic and the company's merits as well. Now the period immediately after the pandemic was very challenging, especially in '23, where we even managed to maintain the level of revenue, but margins were heavily pressured. And then we also had the acquisition of Bergamo in the period. In 24, it was a year of strong recovery in growth and margins as you can see in the chart. In '25, despite some impact that momentarily reduced our growth in the first half. We kept up with a positive trend in margins. The positive results in '24 and '25 are just really the beginning of a transformational cycle that we've seen ahead. Now on Slide 13. Our last slide, we're going to provide some more details on this growth path and transformation of the company. In the short term, on the production side, we should complete the authorization of Bergamo and reduce unscheduled shutdowns in the factories to increase our availability of products. Even in the period where we're still having to expand our capacity -- contraction capacity work. And we also have -- we should be accelerating the sale of imported products, which should contribute to greater growth and optimization of our working capital. Although these products have a lower margin than the company's average. We're also accelerating or growth in the Aesthetics and also stabilized Retail and resume our revenue at Hemarus. In the medium term, we have prospects that are more encouraging and more positive with the additional production of our current construction work, accounting on the acceleration of launches and also expanding more towards Latin America. In the long term, the prospects are even more exciting with transformational projects to centralized production and investments also in biotechnology, especially the monoclonal antibodies, which would provide not only an increase in scale for the company, but also medicine with greater added value. So we're just starting, join us and this is just the beginning of our journey. Thank you all so much. And I'll pass the floor on to Matheus, so we can start our Q&A session.

Thank you, Marcelo. Now let's start with the Q&A session. [Operator Instructions] So we'll start up the sell-side guys. But I already see there are a lot of questions in the chat. We will answer them all as much as we can. Now starting with Felipe Amancio from Itaú BBA.

Well, we have 2 questions here from our side. First -- the first question is we've seen results with this margin reality and the reality of Bergamo with this closing of the gap. And I want to understand that there's room for an increase of margins coming from Bergamo, just to understand what you guys consider to be the main leverage to profitability in the second half. And the second question is about the unscheduled shutdowns. So if you could provide more details on the shutdowns, it would be great because you could also understand more of the nature of these. And if we should expect something different, a new scenario with shutdowns throughout the year as well.

Felipe, we'll start off with our margins. Yes, for Bergamo, we still have room. We've mentioned that there's a potential to reach the same consolidated margins of the company. And it's already very close to this, and we still have 2 quarters to reach this till the end of the year, and we have the intention to use this better. Then we have the operational challenges with factory shutdowns, which is kind of about what Marcelo mentioned, which demonstrates the shift in the mix and the setup and the changes in the production lines of products that need to enter the factory always require more complexity. It's a bigger challenge. And so a bit of this, but the company has already been addressing this of new equipment, new flows and the new areas Marcelo mentioned as well. And then myself I can provide more details about this as well, but it's kind of the pain point of this transition. Well, when you change the product mix a lot, you end up having these shutdowns to switch the tools and all the exchange and equipment. So with the new lines, we'll be able to produce greater scale, leading to better profitability. And also, we'll have the performance we need for deliveries of the demands that we've been suffering with due to the lack of certain products that we had considered also in this new product mix. And we've been suffering a bit to get these deliveries done, right? But I think that now with -- at the beginning of our operations and the new product lines will be able to meet this need in order to avoid the shutdowns with less shutdown, then you have this -- this is a positive trend actually in the company. The transition has challenges, but the risk return ratio is a lot better and you rely less on the [indiscernible].

Thank you, Felipe. The next question is from Maria Eduarda Resende from BTG Pactual.

Recently, you announced you were not -- the decision right with the different reasons Marcelo mentioned at the beginning of the call. But my question is, if the company is still considering the complete process in the Plasma chain or the focus is going to be just Hemarus. If you could also talk about the beginning of the negotiations with the acquisition Prothya, plasma? And also, what would be the perspectives for presuming this in the long term?

Well, do you want to answer part of this? Do you want me to part? Well, first, thank you for the question. You was kind of cutting through a bit, but I think it's about Prothya then the plasma and Hemarus life. I don't know if you want to talk about Prothya bit?

Well, yes, about Prothya, I think, clearly, Prothya was connecting to the company's strategy, especially when it comes to verticalization, since once you have the plasma collection, that was already actually a strategy in the company, and it is independent. Of course, it would generate more value. There's a greater synergy in a verticalized process. But the company, of course, would have to reassess this, but the company will always look at new operations and new issues and models because the more you have opportunities to optimize this although it's probably not 100% verticalized the cash -- the value generation is going to be higher, right? So we wait on analyzing possible senior, right? Well, it's not even about analyzing other scenarios, but it's providing disclosure, right, what the company is going to do and how they're going to decide this up ahead. So we made the decision to not continue with this investment due to the risk that the company would take on. And how this would impact the company's results, and that would be a really difficult turnaround for the company. So the company made the decision of not continuing with this investment. But yes, we do have other strategies. And as soon as we consolidate the strategy better, we'll provide this disclosure to the market. Now about Hemarus, we continue to mention that we've been improving our operation there, plasma growing and we're negotiating with different players and different pharmaceutical industries that are interested in the plasma. So that we can get the best contract for the sale of this plasma. There's a long-term investment. And we are in a quite comfortable scenario, but structuring and searching for long-term partners. We don't want to just have spot sales, right? So we're really on this journey. And as soon as things are more detail, we'll get back to present more of this information.

Next question is from Renan Prata at Citi.

First of all, you talked about the release and the management's letter as well, the Board's letter. And you also mentioned that maybe in the second quarter, you'd maybe have more revenue coming from imported products. And I wanted to understand if this would increase the growth or the maintenance of what we've seen in the first quarter. That's an initial question. And then the second one is a follow-up, right? On this CapEx point, Douglas, about if we should wait for the third or fourth quarter and consider that it should be like the average of the first and second quarters, would that be it for the CapEx? That's the only question.

That's exactly. It would be -- the most natural would be to wait for the third and fourth quarters and basically get an average of what the first quarter was -- the first half was, sorry. And then when we consider the year's composition that was probably a lot of the guidance you provided of what we would do to expect when it comes to the level of investments, the company's leverage and operational cash generation throughout the year. So that's pretty much the trend. And while then about the second quarter versus the first, of course, the company is more confident and will also present a bit more of our higher level of confidence in the second half. Well, we also have an improvement when it comes to the market structure. And we're also qualifying and validating the possibility of also getting revenue from these two lines and in the fourth quarter as well. And that's where we get into the third line that we plan to finish by the end of this year, and then we'll start getting some more revenue next year, and that should contribute also to this. But besides this, we also have opportunities in the market for growth and we have products that are arriving from our portfolio, we have our geographic expansion. We've been registering more products and selling more broad as well, which compromises our productive capacity, really having different locations and products and all of this movement we discussed, right? With the mix of products and the setups and how this brings in a reduction of this performance. But we do plan to improve. And of course, to continue with this improvement in results. And that's all going to depend on the continuity of this market scenario, right? So we understand that a market for Hospital segment, which is where we're positioned. And it's a market that doesn't -- didn't see new hospitals and it's expanding, more beds opening and access to the health system, et cetera. So all of this considers the directions and consumption of these hospital market. And so we also have a better expectation also for the working capital. And we'll be launching a lot of products, we acquired as well. And just to reinforce our inventory to be able to also meet the needs of the second half of the year. So the second half, we also expect to maybe have significant improvements. And in '26, we should have this new capacity available fully, and we should even be able to accelerate this growth. And then you also consider the company's potential in the long term, right, with the monoclonal antibodies in the Pernambuco factory.

Now we'll move on to the chat questions. The first one is from Antonia [indiscernible]. And he is a shareholder of the company, congratulating us on the results. And he wants to about the factory Pernambuco, when it's going to be ready, and when it will be 100% operational. And the second question is a bit of his concern also on the free flow. We have a waiver until the end of December '26. And what we are going to do about all of this. So that's the question.

Well, we'll talk about Pernambuco first. Thanks for the question. And -- well, we're going to be working on this investment in a phased-out approach. So what's most important is to have each phase 100% complete. And that will help also with manufacturing and commercializing these drugs. And that way, we will be able to include each phase in each plant quickly and that will contribute also to the company's revenue. So the company doesn't intend to perform the investment all at once. This will be phased-out and it could take maybe, 3, 4, 5 years until we complete 100% of all of the investments of the company. So we plan to already be operational in our factory within the next 2 years, and that's a commitment we have with the local authorities. Now on the free flow, as a shareholder, I would actually like to have a bigger free flow. I would like to have -- actually mentioned this more many times, I would like to have all of the shares placed back then when we had the IPO. And we're waiting on the improvement of the company's performance and we're waiting on recognition from the market. So that we can have an acceptable value to be able to expand the free flow and use this even for M&A, right? So these are opportunities we have in the market. Now I can't provide precision yet about what will be the plan at this moment, right? So very far from to date, but the company will be communicating to investors whenever there is a definition of this topic. At the moment, what's public in the information we've got, considering the macro scenario, which is so challenging. And what we see is companies are bringing positive results and -- but the share value hasn't reflected the actual company value. And in Blau case, that's filling a gap.

Now our next question on the chat is Rodrigo [indiscernible] from [indiscernible]. And he said, well, thanks, good morning. Well, the first question was about the public bids, and then we also talk about -- you also has tackled about the Hemarus contract product bids, generally speaking, the bids at a state level are taking place normally. I don't see in the drug at Blau is involved with -- I don't see probably bids from like the federal market, or the public federal market. We have been waiting and expecting for new product bid openings from immunoglobulin and other drugs that we're waiting on this still. And we've been monitoring this closely. We don't have any news yet of a bid in a short period of time. But we've been monitoring the challenges towards the budget. And every day that goes by, we've been reducing -- there's been a reduction also in the public bids from the federal level, right? Now the next question -- well, thanks Rodrigo [indiscernible]. The next question is from Paola Mello at GTI. And she's saying, well, good morning. About the Prothya resources, do you plan to use part of this capital in the investments for Pernambuco? Yes, no doubt. And that reinforces the company's capital -- working capital, not only in Pernambuco, but to continue all of the investments we've been working on in CapEx and R&D, and we'll keep up with the same levels, but that really reinforces our cash position. It makes us maybe a little more distant from the need to search for the market or the overall banks, et cetera, to gear up the fundraise and that also strengthens us even to think about a possible M&A, when we consider the market difficulties and that maybe even have opportunities for M&A that could fit in to our pockets. I'd say.

Yes, I think that's why the thesis become so attractive. We already have a comfortable position. It will be a lot more comfortable to address and assess strategic investments. So especially even more in a scenario of high interest rates, you have very few companies in this kind of position.

Well, thank you, Paolo, for this question. Our next question is from Guillermo Rodriguez, and he's also a shareholder. He says, good morning, 2 questions, what's the expectation of the market in the company to have the normalization of plasma. The second is about the manufacturing expansion in Sao Paulo will provide growth in which lines of drugs. And that includes Caucaia, the macro region or metropolitan region of Sao Paulo.

We'll have -- we have lines -- [indiscernible] lines and injectable drugs overall, geophilic products as well and another line that we also discussed last year. These are all plants that are very dedicated to the specific productions. And then the next question about the plasma [indiscernible]. We've already discussed how we've been addressing this situation. We've been searching for some way -- or some customers to meet our demand, timing demands and recurrences. And we're in this expectation of closing as soon as possible.

Okay. Perfect. Once again, make so much Guillermo for the question. Now our next question is from Vitor Kietzmann, I'm sorry if I've pronounced this wrong, then from the SmallCaps Portal. And with the sales results at the end of the year, does Blau plan to expand CapEx and the payout?

Well, we don't know about the payout yet. We're still going to have to wait and see what the results are going to be like in the third and fourth quarters. But we have also another situation that is a new tax on dividend. So and a possible tax reform. So we're definitely going to have to think about something, but we don't have anything planned in the sense yet. And then as I mentioned, probably to neutralize a bit of the effect -- the tax effect and the return on investments at Prothya. We can maybe have this buffer because that would lever our capacity, and that would -- we would have the 25% of distribution in the year. But it's also very conditioned towards entering the exercise in '25, right? So I think it could even be interesting to mention that we have we have BRL 265 million, and the financed assets at a fair value, which has stopped. We're going to receive the amount of EUR 50 million, plus the interest correction, right? So this difference should affect the results positively, although bylaws consider at least 25% of the profit for the shareholders, and that's going to be fulfilled. But then if you get into the accounting value, that would give us more room for possible distribution, which is maybe not extraordinary, but it is a condition to this process.

Thanks, Vitor, for the question. We have another question from [indiscernible]. He says, congratulations on results, and he's asking about the dynamics for the tariffs in the U.S. and if there's going to be an impact on the company.

Well, initially, there's no impact because you don't have reciprocity. We don't export anything to the U.S. Meanwhile, we're in importers especially when it comes to biotechnology. Most of the inputs come from American companies. But at the moment, we don't have any news from the Brazilian government about having any kind of reciprocity in tariffs with the American market.

The next question is just -- actually, I'm sorry, Antonia made the first question. It was also agreeing with you about how the [indiscernible] price doesn't really correspond to the company's valuation. And so I'm not sure if you want to share any final messages, but we continue to be very confident. And I would say that in every quarter, I feel more and more confident and certain that we're really doing extra work, searching for results and operational improvements, increasing our portfolio and our geographies, and we've been developing in-house some monoclonal antibodies, we're conducting clinical trials. And I think the future of the company is just wonderful, and I'm very confident about the company's operation with have so many investments and working on and thinking about the future growth of the company, but the company continues to bring in results that are sustainable, month after month, quarter after quarter, they're recurring, right? So they're like exceptional, and that demonstrates the resilience of our portfolio and our positioning in the market. And every day goes by, we're closer to the market with -- and we're active as well with the hospitals, not only meeting the delivery of drugs, but also the joint development of new opportunities and products and improvements as well, incremental improvements in the products. That's it. So I'm super excited. Great. Well, we want to thank you all and wish you all a great day. And if you haven't been with us yet, you're not a shareholder yet. I want to invite you all to participate the different opportunity and buy some stock in the market. So have a great Blau Day, all of you.