Cheffelo AB (publ) (CHEF) Earnings Call Transcript & Summary

Hello, and welcome to today's webcast presentation where we have Cheffelo presenting their year-end report 2023. With us presenting we have CEO, Walker Kinman; and CFO, Erik Bergman. [Operator Instructions] And with that said, please go ahead with your presentation.

Okay. Thank you very much, and good morning to everyone joining us for this presentation of Cheffelo's Fourth Quarter and Full Year Results. My name is Walker Kinman. I'm the CEO of Cheffelo. I'm joined by Erik Bergman, our CFO, who will give you a short intro on the company and then take you through some prepared remarks on the fourth quarter development and financials before opening up for questions. First a little about Cheffelo and our business. So for over 15 years, we've been transforming people's eating habits and we thereby define our purpose as innovating the meal time experience. Our local brands in Norway with Godtlevert and Adams Matkasse, in Sweden with Linas Matkasse, and in Denmark with RetNemt, all have a rich history of entrepreneurship and innovation all year towards making our customers' lives easier. Our focus is on delicious, well-balanced and inspiring meals that make cooking a joy, while also promoting good eating habits and uniting families around the dinner table. We take the stress out of meal planning and shopping, so our customers can focus on enjoying their meals. Our meal kit business model is demand-driven. This means that we're able to maintain very low inventories and minimize food waste generated in our operations. Our local chefs and dietitians create recipes that reflect local taste preferences, while offering the broadest selection of recipes available in the markets where we operate. We provide a highly personalized customer experience across all our brands, powered by our in-house technology platform. The customer experience we deliver capitalizes on AI technology, driving, for example, meal selection options and our recommendation engine. This level of personalization is supported by the capability to produce each order individually using pick-to-light and automated production solutions. Our supply chain is well established, strong and scalable, enabling us to efficiently purchase and distribute our products in each country where we operate. Furthermore, we are constantly integrating our supply chain, enabling us to take advantages of sourcing opportunities across the Nordic region. Turning to Slide 6. Let's talk about some of the key figures for the quarter. So net sales grew by 8.3% in local currency in the fourth quarter, landing at SEK 270 million and marking an increase in the growth rate from the 2% we reported in Q3. While we experienced net sales growth in every market, the growth in Denmark stood out at a fantastic 47%, and continues to show strong momentum in the first quarter. We noted last quarter that the logistics teams had optimized distribution routes, which would lead to lower cost. We saw this clearly in the fourth quarter, where significant cost savings in logistics, among other things, has led to contribution margin hitting an all-time high at 31.8%. We wrapped up the total year at a 30.8% contribution margin, which is slightly above our 30% target. Despite increasing our spending in sales and marketing in Q4 to prepare for the launch of our new Nordic-wide marketing campaign, we still improved our profitability with adjusted EBIT increasing by 29% to land at SEK 16.1 million for the quarter. Finally, I want to highlight the change in order frequency, which grew by 7.9% versus last year. This exceeded our expectations and is a strong proof point of the impact our efforts to improve the customer experience and marketing efficiency are having. Our customer acquisitions grew by 18% in the quarter, which, all else being equal, would typically drive down the purchase frequency. Among other things helping contribute to this improvement was the launch of our new customer loyalty program across brands using gamification and a leveling up approach to service perks to motivate customers to remain with us longer. So let's focus briefly on how we achieve the return to growth with good profitability. We started 2023, and there we made it clear that being profitable and self-financing was our most important target in the near term, while we stabilized revenue and return to growth. Of the 3 must-win battles we communicated at the beginning of 2023, increased marketing excellence was a theme very much focused on acquiring more good customers at a lower acquisition cost. With the WeightWatchers partnership in Sweden and the acquisition of a competitor's customer relationships in Denmark, combined with the general improvement in tools for driving better search engine optimization, performance marketing tracking, and traffic conversion, we have been able to increase customer acquisitions during 2023 by about 29%. The increase in acquisition, while reducing the total sales and marketing expense, has led to a 27% decrease in the cost of new customer acquisition during the year. While we do not disclose discount voucher figures, we can also confirm a significant decrease in these, which additionally helps drive positive margin development. A general rule regarding new customer quality is the lower the discount, the longer the customer lifetime. So a reduction in discount vouchers has a dual effect in reducing costs and increasing customer lifetime value, when done successfully. Our second area of focus was the ongoing effort to continue improving the customer experience. We have worked a lot with feedback from customers, and we're delighted to experience an increase in the average recipe rating scores across all brands. In the fourth quarter, we increased the delivery option windows offered in Norway and Sweden and aim to continue improving this primarily in urban areas. Over the year, we have driven the customer complaints rate down by 10%, while hitting our customer service satisfaction target of 93%. Finally, against the backdrop of a sharp decline in delivery volumes in Denmark after the pandemic, we set a clear target to reverse this trend. Efforts to improve marketing excellence and customer experience were contributing factors to success here. We also acquired, as mentioned, the customer relationships from a competitor in Denmark. The conversion rate and purchase frequency of this group of customers has exceeded our expectations, and we were very pleased to be able to capitalize on the opportunity. Our top line development in Denmark took a decisive U-turn in the second half, and we see strong momentum going into 2024. We feel that both our offering and market conditions are right to see a high level of growth continuing through much of 2024. Let's take a closer look at how we stand in relation to short-term financial targets to stabilize revenue and return to profitable growth. And looking back to the second half, we were at a point where we can say that the top line has stabilized and returned to growth. The level of future growth is hard to predict and may be a little lumpy, but we see encouraging sales trends with the breakout growth in Denmark and an increase in order frequency across all brands. We're happy to see these trends, especially given the continued softness in the broader economy. On the profitability side, contribution margin was up sharply, and this falls through to the bottom line, where adjusted EBIT improved by SEK 55.2 million from 2022 to 2023. Improved profitability drives cash flow, and we generated SEK 45.2 million in free cash flow during 2023. The proposal to distribute 50% of that to shareholders, in line with our dividend policy, means the Board will be recommending a dividend of SEK 1.78 per share at the upcoming Annual Shareholder Meeting in April. So let's zoom in a little on the next slide and look at how the individual markets are developing. In general, we have noted a shift in the Danish market. Inflation has disappeared and the effects of higher interest rates are not as prevalent in Danish households as compared to Norway and Sweden. This has led to a rebound in consumer confidence in Denmark that was recently measured at its highest level since February 2022. Norway and Sweden are both experiencing more persistent inflation. More importantly, the cost of home ownership is going up as interest rates on flexible and short-term fixed mortgages roll over at higher levels. Consumer confidence is slowly improving in Sweden, but in the Norwegian market, it remains at a very low level, which is consistent with how we are seeing growth rates develop in each market. Public indexes we track for online food in Sweden and Denmark have been improving. Online groceries were up slightly in Sweden during Q4 and moved even higher in the January figures reported yesterday. The data in Denmark for November showed an increase of 10%. The last full quarter data was Q3, where the market index showed a 9.7% growth in Denmark. Looking at the growth rates in local currency, we are very happy to see growth in Q4, especially considering where we are coming from. As mentioned, Denmark landed at 47%, while Sweden was just under 8% growth, and Norway a little over 3%. Our Godtlevert brand is performing well in Norway, posting volume growth and double-digit net sales growth. However, our Adams Matkasse brand, which has a higher price perception and premium position is performing less well given current market conditions. So let's take a look at where we are focusing our efforts going forward. 2024 is really about continuing to strengthen the core, while we explore other growth factors. The themes of marketing excellence and epic customer experience have not gone away simply because they delivered a strong impact on our 2023 result. On the side of marketing excellence, we will continue driving performance marketing capability improvements, together with expanding our efforts on social selling. Our new Nordic value proposition is a big part of shifting the brand perception, while working to streamline marketing efficiency and product development alignment in all 3 markets. We will also continue to develop our partnership network that builds on both our own capabilities and the strength of other brands. In terms of improving the customer experience, we remain dedicated in our efforts to move beyond flexibility to a highly personalized offering, which is intuitively simple to use. A lot of energy is also going into what we call the kitchen experience. This is more than just the act of eating great food. It also takes into consideration the effort, skill and time needed to prepare the meal as well as cleaning up afterwards. We are concentrated on changing how we offer add-ons and groceries, both to improve visibility as well as relevance of the assortment. Finally, we remain very aware that the quality and consistency of our packing and delivery operations are an important part of why customers will keep coming back. So our operational excellence initiative retains strong focus. Our long-term financial targets now shift to growth targets of net sales CAGR of 6% to 8% and EBIT margins of 4% to 6%. At the Capital Markets event we hosted in November, I expanded on these ambitions. We feel that both of these targets are valid for our business with demonstrated discipline on unit economics and cost structure as well as the growth opportunities available in our markets. It is necessary to point out that long-term profitability margins are dependent on economies of scale, and we do not expect to be there already in 2024. Looking forward to 2026, this translates into roughly a 20% increase or SEK 1.2 billion, which is a revenue level where we see EBIT margins hitting the SEK 50 million to SEK 70 million range. With this, let me now turn it over to Erik to take us through the financials.

Thank you, Walker, and good morning, everyone. I'm very pleased to present the financial update for the fourth quarter and full year of 2023. During the quarter, we achieved a 5.8% growth, making it the second consecutive quarter with growth. We are growing all of our markets with an extra strong momentum in our Danish market, where we had a 47% growth in local currency. A large part of our sales is accounted for in Norwegian kroner. With a relative weaker NOK compared to our consolidated currency in SEK, we had experienced negative effects from currency fluctuation, which resulted in a negative impact on net sales of SEK 6.4 million in the fourth quarter. So adjusted for currency, we actually grew by 8.3%. This was driven by a combination of 4.9% more deliveries as well as 3.2% growth in our average order value when adjusting for currency. We had a slightly lower active customer base, which were 2.8% lower than last year. However, lower customer base was more than well-compensated by an improvement in the customer metrics that our customer base have generated. Among those metrics, order frequency sticks out as one, and it has increased by 7.9%. We are pleased to see the outlet from all of our efforts to improve customer quality. Among these efforts are the implementation of our loyalty club, a more efficient and selective way of handling discounts, and improvements in our customer experience. We have other initiatives to be launched also in 2024, and we remain optimistic that those will continue to have a positive effect on our customer metrics. Let's move now to take a closer look on profitability on the next slide. In the fourth quarter, we delivered a contribution margin of 31.8%, which was 2.1 percentage points higher than last year. This gave us a contribution margin of SEK 86 million, which was SEK 10 million higher than the previous year, which represents an increase of 13%. We have been communicating throughout the year that we are targeting a contribution margin of 30%, a tough target, as that would mean an increase of 5 percentage points versus the level we had in 2022. That is why I'm proud to say, thanks to all the efforts throughout the organization, that we have successfully reached our target of an annual contribution margin of 30% during 2023. That also means that we have achieved an all-time high when it comes to contribution margin. If you take a closer look of what that really means and put in relation to number of deliveries, this translates to that each delivery in average during the fourth quarter contributed about SEK 275. This is an increase of 8% for the quarter. If we look at it for the full year, that is actually almost 34% higher. To achieve this high relative contribution margin, we have not only made price adjustments, we have also lowered our costs. As a result, as highlighted in the graph, the average fulfillment cost per delivery decreased by 9% compared to the same period last year. This is a result from efficiency gains in production and logistics. This reduction occurred despite the inflation seen in these areas over the last year. Being in control of our unit economics is a key to our profitability and it establishes a foundation for achieving economies of scale. So again, a big thanks to the Cheffelo team for achieving this. Let's continue on profitability on next slide. Adjusted EBIT for the quarter amounted to SEK 16.1 million, which was SEK 3.7 million higher than last year. The reported EBIT actually increased by SEK 123.7 million, but last year included a goodwill impairment reserve of SEK 120 million, which we consider to be a noncomparable item. Sales and marketing expenses for the quarter amounted to over SEK 32 million. The increased spend is in line with what we said in our last quarterly report. Part of the higher cost was related to the production and launch of our new campaign utilizing a common value proposition across all countries. By investing in this shared value proposition, it will help us improve marketing efficiency in coming periods. If we shift focus to the full year perspective, to start with, we have continuously been talking about our must-win battles for marketing efficiency, and I'm glad to say that, that has given positive results. And improved marketing efficiency are evident in the increased new customer acquisitions by almost 25% versus last year despite that we spent SEK 7.5 million less in sales and marketing. On a full year basis, sales and marketing spend amounted to SEK 131 million, which equals to 13.1% of net sales. We have also talked a lot about our strict approach to costs. As an example, it's worth noticing in the report that cost for central function has been reduced by 13% or almost SEK 60 million during 2023. Full year adjusted EBIT was SEK 30.7 million, which was an increase of more than SEK 55 million. This equals an adjusted EBIT margin of 6%, which was an improvement of 1.1 percentage points versus last year. The SEK 55 million increase in adjusted EBIT was explained by improvement in contribution margin, good structural cost control, and controlled marketing spend. In summary, we have delivered on our target to reach a contribution margin of 30%. We are optimistic that we will see benefit from economics of scale and continued improvement in our operation, and we will continue to have a strict approach to cost and a tactical approach to sales and marketing spend. With this, we are confident that we have a strong foundation for future growth and profitability. Let's move on to the next slide and have a look at what that means for the cash flow. At the end of the year, cash and cash equivalents amounted to almost SEK 92 million. And for those of you that are not following us previously, I would also like to mention that we don't have any structured debt other than the IFRS 16 lease liabilities. The positive result in the fourth quarter contributed to a positive cash flow from operating activities, excluding working capital of SEK 25 million. Changes in net working capital amounted to minus SEK 27 million. I'm a bit repetitive in these presentations. But to really understand the cash flow and cash position in Cheffelo, it is important to understand the net working capital. We have a negative working capital model, where most of our customers pay shortly after the delivery, whereas we pay our suppliers later. For the fourth quarter, where we see volumes declining towards Christmas vacations, we are paying off our trade payables, which gives us a lower cash flow from net working capital. If we shift focus to the full year, the full year cash flow from operating activities increased by SEK 123 million compared to 2022, explained by a combination of both the improved profitability that I talked about in the previous slide as well as a positive change in net working capital. During the same period, lease amortization amounted to SEK 25 million, mainly related to our facilities. We have also had a CapEx investment of SEK 11 million, which was 1.1% of net sales. As we have said in the earlier presentation, this is at a low level, but in medium term, we are expecting us to be around 1.5% of net sales. All in all, this gives us a free cash flow for a full year of SEK 45.2 million, which is also SEK 130 million higher than for the same period in 2022. With that in mind, let's move on to the next slide and have a look at the dividend proposal. The Board will propose a dividend in line with our policy, that is based on our cash flow. This means a dividend of SEK 1.78 per share. This will be the third consecutive time that we have issued a dividend, reflecting our strong ability to generate cash and our dedication to deliver value to our shareholders. With this dividend, we will have distributed a total of SEK 48.6 million, which equals to SEK 3.83 per share. Let's move on to next slide and have a forward look. We remain focused on profitable growth, and we expect to see single-digit growth going forward. We anticipate a higher growth in Denmark, where we expect a double-digit growth. The market condition in Norway and Sweden are more stressed with a greater uncertainty regarding how consumer sentiment will develop. We don't see any material changes in our current unit economics or cost structure. Our ambition is to maintain a contribution margin of about 30%. We will continue to target marketing spend of 13% on a full year basis. But this will continue to follow the seasonal patterns seen in previous years with a higher spend in the first quarter. Zooming in on the first quarter of 2024, we will see a timing effect on volumes. The first quarter of 2024 contains an Easter holiday week, whereas the full Easter was in the second quarter last year. As many customers tend to pause the subscription during holidays, this will have a negative timing effect on delivery volumes of roughly 2% to 3% for the first quarter. However, we will see the opposite effect in the second quarter. With that, I would like to hand back to Walker for a quick summary.

All right. Thanks, Erik. So let's turn to Slide 19 and summarize, and then we'll open up for some questions here. So we were very happy to exceed our own expectations and end the year on a high note, delivering 8.3% growth and seeing adjusted EBIT profitability increase by over 29%. Denmark stands out with a surge in net sales growth. They hit 47% in local currency and continues with great momentum into 2024. We were also pleased to reflect on what we set out to achieve with our must-win battles this year and conclude that the successful execution of all of these has contributed to our strong finish, including an increase in order frequency of almost 8%. Contribution margin hit an all-time high for the fourth quarter. Good unit economics and structural cost control not only helped in boosting profitability, but driving free cash flow that reached a little over SEK 45 million for the year. In turn, the Board will propose an increased dividend to shareholders in line with Cheffelo's dividend policy. We will also remind our investors that we held our first capital market event in November. So if you missed that and are interested in learning more about our business, you can check that out on cheffelo.com. In conclusion, everyone at Cheffelo has done a fantastic job, successfully returning the business to a growth trajectory with solid profitability. The team deserves a big thank you for their efforts during the past year and has every right to feel very proud of where the business is headed. We're now going to turn the call back to handling questions.

So we've received a number of questions in through the chat channel, and we'll be addressing those one at a time. So the first question is, in your opinion, why is the Danish market stronger than Sweden and Norway? There's a couple of reasons for this. I think the #1 reason is what we've been doing in our own business in terms of sharpening up messages with regards to the value proposition in terms of getting a lot better at how our forward customer-facing systems are interacting with search engines, how they're interacting with our customers, how that user experience is changing over time, as well as the product. So I think, from my view, when I look at the market and I look at our performance in the market, I think we have every right to take a little bit of credit for why we see the growth there. I think on the other side, we also can acknowledge that the Danish market is experiencing a better economic climate and consumer sentiment than what we see in Norway and Sweden. And as mentioned in the prepared remarks, this has a lot to do with how interest rates don't impact Danish households, especially the mortgage rate level, the same way that they are in Sweden and Norway. So that's the summary or at least, in my opinion, why I think we see the Denmark market stronger than Norway and Sweden. Don't forget, you can still post questions, so I'll be going through a list of questions here. The next question is, you mentioned that you haven't raised prices since 2022. How do you stand in terms of prices against your competitors? So when we look across the markets, we see, in general, a premium price positioning. Obviously, when we talk about competitors in the market, the largest competitor in the meal kit space, which is the most sort of comparable product is, of course, HelloFresh. If we look at the market in terms of Denmark, we see the price premium is quite low across the spectrum of offerings that we have in terms of number of portions and number of people. So you're talking mid-single-digit price differences in the Danish market across the offering. When we look at Sweden, we have a little bit of a different situation here, because in the Swedish market, the price premium on number of portions for a 2-person box with a small number of recipes is probably in the order of high teens compared to HelloFresh in the Swedish market. And I think when we look, though, at the other end of the spectrum, where we have most of our business, which is with 4 portions and with more meals, the price premium, again, falls back to single digits. In Norway, we see something quite similar, although the price premium difference, again, on more portions and more recipes tends to be even lower in the Norwegian market versus the market leader. What we said -- the next question here is, what was your organic growth rate in the second half of Q4, excluding the customer relationships you acquired? What is your full year '24 revenue growth guidance on an organic basis? So if we take the second half of that question first, we're not guiding specifically with regards to revenue. We've never given specific guidance. I think you can see from our financial long-term targets that we're looking to a 6% to 8% CAGR over the long term. And that translates in 2026 to roughly SEK 1.2 billion in our view. In terms of the organic rate, excluding customer relationships, we don't disclose that figure. I would say that the impact is at a very low single-digit impact in the second half anyway. Most of what we're seeing in terms of growth is coming from all of the other initiatives that we're doing. The next question here, what is your strategy for growing in Sweden and Norway? And I think here we were talking again about, as I mentioned in my remarks, the focus in 2024 is really about strengthening the core of the business. We continue to see more opportunity for us internally and in the existing market with continuing to drive this marketing excellence equation, allowing us to capture customers and retain customers based on improving our tool set and improving our ways of working. So I think that's a big part of making the marketing spend go further and have more effective in the market where we're operating and be more competitive. On the other side, we're very, very much focused on what the customer experience has -- what that experience is for the customer. So there's quite a number of different initiatives. As I mentioned, increased personalization is up there, working very closely with the kitchen experience. We think we do have a great opportunity in add-ons and groceries. It's a very small portion of our business today. It could probably be expanded by a factor of 4 or 5, if we get some things right. And a lot of that has to do with visibility of the offering and then the relevance of the offering to customers. Let's move on to another question here. And the question is, what explains the high active customers decline in Q4 versus Q3?

Part of that explanation is due to the how customer behaviors. So we have acquired a lot of new customers lately. And the cohort from a new customer is that, to a large extent, try out a couple of deliveries, then keep the ones that we needed. So that is what we see in the active customer numbers that we have high share of new customer spend previously.

We have another question here, what are your food input assumptions for 2024 after 2 years of high food inflation? And do you intend to keep prices unchanged this year or pass on to customers the potential input savings?

Food inflation is present in our markets, mainly in Norway and Sweden. We have a great team working with this, both when it comes to purchasing as well as menu planning. We offer variable recipes, including many different ingredients. So we are able to direct our purchasing towards the items that we find most suitable. And as an example of what we are doing when we're working with food cost is for the menu team, we are focusing on recipes with great menu ratings, but maybe not at the expense of high cost. When it comes to purchasing, we're working together with our suppliers to find the best solutions. We are also working -- continue to work with the Nordic agreements, utilizing higher volumes, as well as we are utilizing fixed price setups and we're also working with item types, to mention a few examples. And in addition to the initiative within food cost, we have also been able to reduce our fulfillment costs. We are actually focused on improving the physical product rather than finding ways to take away cost. And we do believe that those other efforts are enough to counteract the effects of inflation. And so shortly, we don't have any plan to increase our prices now.

Our next question here is the 27% CAC reduction only reflecting the WeightWatchers partnership and the lower vouchers or other measures we may not be aware of? So when we talk about customer acquisition costs, we are looking at our total cost of sales and marketing divided by sort of the number of customers that we acquire during the period. So with something like the WeightWatchers partnership, it is clear that there's a large inflow of new customers coming in as we open a new sales channel. We would never expect that to be sort of at that initial level -- during the course of 2023, we also achieved exclusivity in that relationship, which means that other channels that were open for WeightWatchers meal kits closed during the year. But essentially, there's an element of that, which is more of a one-off effect to open a channel, and that is definitely going to have a positive impact on the CAC calculation due to a large inflow of new customers. I think even though going forward, as we compare that, it wouldn't be fair to have an expectation of maintenance of the flow of customer acquisition given that we're not opening any significant new channels in a comparable period. I think the lower vouchers also has an impact. Quite frankly, that's not in the calculation here when we talk about the 27% reduction, but it certainly is the same order of magnitude when we look across the amount of vouchers that we issue. Vouchers would not only include customer acquisition, though, it would also include efforts to reactivate or actively retain customers. We have another question here and a comment. Congratulations to the improved profitability. What are you going to do to grow active customers? I think this is a good question because as we show the active customer being slightly down even year-over-year, it obviously raises the concern out there that perhaps there aren't enough customers or the customers aren't growing. So I think the most important thing in terms of the efficiency of the profitability is that the customers that we have are good customers. So the active customer measurement is really sort of a measurement over time, looking at the purchase behavior of customers over the last 90 days. So 1 delivery by a customer in the last 90 days will drive a -- will register as 1 active customer. Obviously, if that's at the beginning of the period, and they don't take any more deliveries, it doesn't necessarily gauge the quality of the customer level. So the important thing that we're looking at when we look at sort of how do we grow the business, is how do we get the order frequency up? How do we make sure that the customers stay? How do we get churn rates down? But obviously, a portion of that is acquisition. So as we look at the must-win battles, marketing efficiency is really about driving those customers in efficiently at the lowest price point. So we maximize acquisition with the budget that we're spending. The other side of that is to make sure that the customers stay, and that's where this epic customer experience mindset that we're trying to deliver is really about making sure that, that last delivery knocks their socks off, and that they just want to keep coming back. So that's where we're headed in terms of growing active customers. We have another question here. Can you tell us something about what are the most important metrics that you're following? I understand everything is important, but what is the 1 or 2 most important metrics for understanding the development of the business? So I think when we think about -- there's 2 aspects of the business, how do you grow the business? How do you make it profitable? So for us, we've been really forced to look at the profitability side to the greatest extent over the last several years. So as we look at profitability, unit economics remains a big part of that, which is ultimately about contribution margin. So as we talk about contribution margin and follow the contribution margin development, it is important for us to maintain strong contribution margins, which gives us room to have the overhead that we need to run the business, but then also to make sure that we have a good bandwidth on the sales and marketing side to drive in new customers. I think when you start talking about the growth side of the business, the one number that I'm looking at, but we do not report, is it has to do with the actual number of subscribers that we have active at any point in time. And I'm following that very closely. I also look very closely at these order frequency measurements, as order frequency is an indicator of sort of not only just the engagement level of the customer, but also the -- it's sort of a proxy for churn in some respects, because the longer a customer stays, then the more orders that they will take over time. Yes. And I think we have exhausted the questions that have come in. I'm just looking around at my colleagues here to make sure that we haven't missed any other channels. Obviously, if we have missed your question, you can always reach us on [email protected], where you can reach out to Erik or myself, and we'd be happy to take or try to answer your questions. Thank you again for joining us for this fourth quarter earnings call of Cheffelo, and we also look forward to seeing you perhaps at the Annual Shareholder Meeting that's planned for April 25, or again, when we report our results for the first quarter on May 7. So have a nice day.