DO & CO Aktiengesellschaft ($DOC)

Ladies and gentlemen. Welcome to the results for the business year 2025, 2026. I'm [indiscernible] operator. [Operator Instructions] and the conference is being recorded. [Operator Instructions] Attila Dogudan, CEO. Please go ahead, sir.

Thank you very much. Ladies and gentlemen, good afternoon to Europe, Turkey and Middle East, and good morning to the. This is Attila Dogudan I'm together with Jones in Mexico. After the for joining Formula 1 in Roselona and the other are Chinese Indiana. So obviously, we are very happy to present our business year results of 2025 and 2026. . Last business year was the best ever in company history before we go quickly through the presentation, I want to say on a macro level that we have achieved all targets we wanted not only financially even more importantly, the right strategy, where DO & CO going to. I have to say, this was a super achievement of the DO & CO great teamwork. So we have to say a big venture to every single employee in this company. And it makes us proud that we are well prepared to the next round of growth, but smart growth, which does not low on revenue only, like we have proven out in the last couple of years, which goes on quality growth with further margin improvements in the future. DO & CO more and more is positioned as a premium brand on the 1 tenant or go from your championing, just 10 this 2 weeks ago in Budapest, which was very successful and up to where we are today in Mexico, where we are part of the biggest or demand in the world posting only today almost 8,000 VPs. We just opened the doors at [indiscernible] here remember that you have asked us many times what is the outcome of the tender of the people work cut and we couldn't give you the answer. As we have on our own answer, we did not get an answer. But finally, and this is sometimes the specific of this business. FIFA then who had basically sold the rights of the commercial programs or somewhere else with ownership and awarded us for the most important 3 locations, which is Mexico with the opening game and Miami and New York with the final and the same, I think, same time on qualified majority is taking place in this area. And believe or not, we have only signed this agreement last -- end of last week. So we are used to this. Maybe you are not so much. So we are so at the end of the day to the year, and we're happy that we are a global premium and reliable partner when it always comes to big cortile -- now maybe let's go quickly through the presentation. Obviously, I guess you read already the revenues of $2.461 billion, an increase of 7%, the highest ever we had on constant currencies, it would be even an 18% growth. EBITDA, the EUR 300 million was really products with an increase of 15%, maybe 12.3 million, 16% increase in net results of EUR 15.8 million, which is an increase of 14%. But even more important, we believe, is the development of the margin to 12.2% in EBITDA so 8.6% as we always promised 8.5% net results, 4.3 million. So bottom line, I think the team did a great job. And although there were a lot of a Middle East and these kinds of things, but then we're going to come back in a minute to this. The 3 divisions you see already a given 1.9 and 323 million and versus 18 million so you see all divisions have increased not only revenues, but more important, as we always focus on with the margin. First time the 2.4%, obviously, the free cash flow of EUR 225.1 million is an increase of 80% in comparison to last year not maybe everyone is happy with that. We are super happy with our net debt-to-EBITDA ratio 0.05, which gives us the opportunity of really that ceilings during announce Corona that we are strong enough on the market with an equity ratio of 42.7 to go to the next step as we mentioned -- as I mentioned earlier, with the growth strategy on -- based on product. In airline catering, we won more tenders we see it in the presentation then, we have a board letter from American Airlines in Chicago. Starting next year, the contract is not signed up we have been awarded with that. We've got years where you see in [indiscernible] which is a lot of flat too. So if you look to the portfolio, you see a lot of clients who are all over the world. and all of them obviously, like what we do, and we are very part this portfolio. In rent catering, Mexico, yes, this is emotional for us very important. As we did the [indiscernible] last minute in Qatar and now has been awarded for the 3 most important cities and the restaurant balances with margin improvement and is basically the basis of the success of the other 2 divisions. So innovation, quality and people are the drivers. When we come back to airline catering EUR 1.9 million and the EUR 230 million and the EUR 159 million in terms of EBITDA yield, strong numbers. We believe that what we do here really makes sense. The focus of quality on one hand and on the other side, anything which is commodity being as efficient as possible is a good mix for all the airlines who basically, at least in our portfolio, trying to increase quality. We see this almost everywhere of the network carriers. And we are not winning destination, I would say, for pure low costers but for any one with flight network and has a more complicated and complex product don't go direct partner. Turkey, always over the price of of the company yet. Why? Because Turkey and Turkish Airlines is almost focusing in every detail to deliver best hospitality, which is in the DNA of Turkish. So this really makes sense. We are working on ongoing product innovations with strong volume increase in the number of aircraft, which have been already ordered to the and will almost double in the next tenders assembled to the strategic locations of relocation. We have a strong market position with third-party clients as well. So like over 90%, I been almost 95% of the market is covered by us. And as you see at the picture on the left and below the back cranes and the construction has started with the biggest kitchen in Europe, I guess, is in the world this is participated one on this plan. IG growth with eos in Iberia, close partnership with [indiscernible] Why? Because we deliver what they expect on the NPS scores have gone up fresh menus and this is always the trigger is a driver of customer satisfaction, which an end of the day, product having no additional preservatives with all the hiccups in the radio production. Obviously, we are not doing anything wrong every day. But overall, we see the great customer feedback, which is the driver then for the next contract. Iberia is the same ordering and gas experiencing more and more clients winning various competition awards, which makes us happen. New carrier in the U.S. as I said, the contract is not signed, but we have been awarded in writing. American is the second biggest airline in the world, only behind United at 2.3 million passengers for us, a great opportunity, we should cargo from next year on to show that we can hopefully give the add value to American makes us very proud, and it's a good news I think, for the American market. JetBlue, further strategic partner. I think the one reason just yesterday today, West American [indiscernible] terms of food and beverage. So again, there is a portion of us in this work, too. The other new clients I'm not going to mention all of them that you see in the presentation and the new contracts with it from the Canada is always getting more and more case of the world. So it makes us very proud in terms of the portfolio. Coming to the next division, the International altering $222 million of revenue only 6% increase with EBITDA 9% plus EUR 23 million or 7%. So please keep in mind that the euro did not happen this year. Total sales growth with the 15%. But as we said, we need to go on quality only, and this is showing us, and you will see in the next 2 years, the next, I would say, steps in this division. Formula One is doing super well always are sold out. And with our maximum number, we have been last week in Monaco with a completely new [indiscernible] on TV, where you have first time really is something impressive in the visual of Monaco when Super World incredible customer feedback this weekend from tomorrow is Barcelona and then Austria and Silverstone at the same time with the World Cup here in U.S. and New Mexico. But it's everywhere strong demand. So we are increasing more and more the quality because we see that the money goes from luxury business to this kind of event business. People want to be in this premium demand, and this is something which really posts in social media. And in this game, I think we have 1 of the most reliable partners, brand in the world, being able to deliver the negotiation. As you see in Mexico, we hope we can deliver it. It's a tough book year. We weave almost 7,000 guests in this for weeks. So we'll see that we can deliver what everyone expects from us. [ Alianterena, ] same game, super long partnership with F1. We're going in a new phase with renovation in [ Aliantarena, ] which will start next year where we hopefully get a new level of hospitality experience in the world, definitely in Europe. Environment, if it's the right partner to support this, and we are very proud to be with them for a long time. [indiscernible] concept anyway. And I think as a [indiscernible] is only not so much here, but it's a great business case because it's first in a stadium, which has doubled utilization through skewed takes almost everybody 2 or 3 events, at least in a stadium, I think 10,000 or something like visitors. We do the VIP and the public in a close relationship with by Munich and Red Gold, both of them, great partners for a long time. Ten with the Madrid, as you know. So growth seems to. So all these other events was not in terms of figure what I already mentioned, I think enough so we'll see where we are today in the afternoon of in Europe. So we are well prepared. We have more than 1,000 people, 1,200 people working here in total 200,000 people working in the stadium so it's not a small operation, and it's a big opportunity for us to be the benchmark to especially the margin market, how we can run a football side. So far, our visibility was only in Formula 1 with the races in Austrian [ DataSIM ] first time in stadia and Sadiola as a net driver in New York, the [indiscernible] Luckily, the stadium where the Formula 1 happened. So we left our equipment there, which during the raise a couple of weeks ago, and we know it is the circumstances of the whole setup in the harder stadium. Maselis, the one which is for us emotionally and number wise, very important and EUR 18 million of revenues we million EBITDA and the EBITDA is an increase of 19% and 27%, which are great numbers. So we see more and more that this business, which for so long time did not make money is better managed, and we see that the portfolio we deliver in the mix of [indiscernible] airport as one really makes sense. The hotel in Vienna is coming out to a renovation, we're going to close down next week for 2 or 3 months. 2 months and make a full generation of the building. [indiscernible] as you know, we won in Indiana for the next terminal extension next year, a couple of locations. So bottom line, it looks good and was a good year. So thank you very much for listening. Johannes will then take over with the numbers, and then we are happy for the Q&A. Thank you very much.

Thank you. Good morning and good afternoon also from my side, and thank you for joining us today. Before going into the details, let me briefly summarize the key financials for '25, '26. Overall, we have delivered strong underlying growth, improved profitability and a significantly stronger balance sheet. Most importantly, our earnings are translating into cash at a very high rate underscoring the quality, resilience and scalability of our business. Let me start with the income statement on Slide 28. For the full year, '25 '26, we generated record revenue of $2.46 billion, an increase of 7.1 on a reported basis while constant currency growth reached 17.6. At the same time, profitability also improved further. EBITDA margin increased to 12.2% from 11.4%. EBIT margin expanded to 8.6%, up from 8.0% and net result margin improved to 4.3%, up from 4.0%. This is not just growth. This is higher quality growth with expanding margins across all levels. Turning to Slide 29. I would like to draw your attention here to the fourth quarter. Revenue increased by 13.4% year-on-year and 15.3% at constant currency. The FX impact was limited in Q4 with only a small gap between reported and constant currency numbers. EBIT margin came in at 8.3%, and broadly in line with last year and net margin remained stable at 3.6% despite the challenges in the Middle East. I will come back to this impact on the next slide. On Slide 30, looking at our divisions, you can see across all 3 segments, we delivered constant margin expansion. In Air and catering, our largest division, Organic growth reached 19.5% at constant currency, supported by new customer wins and solid demand across key markets. In the fourth quarter, constant currency growth was 13.4%. This was impacted by the Middle East conflict for around 3 weeks in March. Cantel Flights had a negative revenue impact of approximately EUR 23 million, partially offset by around EUR 7 million from additional flights. So excluding this growth would have been close to 17% with stable margins year-on-year. In international demand catering performance remains extremely robust. EBIT margin at 10.4% and the business grew organically by 7%, again, driven by strong sustained demand for premium hospitality at major sporting events. Restaurant Lounges & Hotels, EBIT margin increased to 10.1%, up from 8.7%. This was supported by strong demand in airport lounges, high utilization in our premium restaurant portfolio. Let me now move to the balance sheet on Slide 31. Cash increased significantly to EUR 240.8 million. Trade receivables declined by EUR 7.5 million, driven by strong collections and PPE decreased by EUR 21.3 million, mainly from currency effects on our U.S. assets. On the liability side, our equity ratio improved from 35.8% to 42.7%, supported by higher retained earnings. In '25, '26, we continued to reduce financial liabilities. Lease liabilities came down by EUR 20 million, largely in the U.S. And during the year, we repaid EUR 55.8 million of bank loans. To put this into perspective, since 2022, '23, we have reduced bank debt by EUR 247.9 million. This reflects strong internal cash generation, disciplined financial management and this is a structural improvement, not a one-off. So you can see, overall, our balance sheet is now very solid and well positioned. Turning to cash flow on Slide 33. We again delivered a very strong cash performance. Operating cash flow increased by EUR 70.1 million year-on-year, driven by higher earnings and positive working capital effects. [indiscernible] already mentioned, the free cash flow, which was very strong at EUR 25.9 million, 80% up from prior year. Please note that CapEx was a bit below our expectations 1 year ago at EUR 52.7 million. And here's the key point of alive, even after repaying EUR 55.8 million of bank loans and paying a dividend of EUR 22 million to our shareholders, our cash position still increased by EUR 66.6 million. Finally, on our leverage position, we are now very close to a net debt-free position, I think a major milestone for the company. This is a structural improvement driven by strong earnings high cash conversion and minimal leverage. In summary, the past year reflects the consistent the continued improvement across all key financial metrics. The positions. This positions us very well for the next phase of growth and sustainable long-term value creation. Thank you very much for your attention. I think we are now ready to go for the Q&A session. Thank you.

[Operator Instructions] And the first question comes from Julien Richer from Kepler Cheuvreux.

Congratulations for the great results. A few ones for me, please. The first one if you could please give us a little bit more granularity on how you see 2026, 2027 in terms of revenue what might be the impact of the additional signatures airlines that will be partnered during the year? Do you have any new bases in mind new kitchens in mind for '26, '27 and what kind of impact from Middle East do you expect and the World Cup impact also. So in terms of revenue, basically some granularity on how you see the growth next year. And in terms of EBIT margin, it has been slightly down in Q4. We don't know what is going to happen with the Middle East in the coming months. But do you see margin involvement in margin evolution, sorry, in 206, 27? Second question in terms of capital allocation. As you said, you are now almost net debt-free. What is your capital allocation strategy? You have won a contract in Mexico City, where, correct me if I'm wrong, you have no basis not kitchen there. So you have Iberia also that is pretty strong with LATAM. So is it maybe the beginning of story in Latin America and Mexico. Do you plan to make some M&A for growing your exposure to Stadium in the U.S.? So I would be interested in your view on the capital allocation strategy. And last thing, a quick one on the impact of the Middle East. You said EUR 23 million of negative impact for the airlines during the 3 weeks in March. Is it something that we can extrapolate for April, May and going forward until the conflict is ended. And I calculated for March, a negative EUR 4 million impact on EBIT, just wanted to check this one.

I'm sorry. But I think the speakers might be muted. We cannot hear you currently. Sorry, Julian. So now it's working again.

We charge revenue -- the revenue for 2025 -- '26, '27. So it's the current development in the Middle East continues as seen in recent weeks, we are targeting around 7% to 8% revenue growth for 2027, reported and double-digit at constant currency. Of course, so that's what we see for '26, '27. In terms of margins, EBIT margin, our guidance for this financial year is between 8.6% and 9%. Of course, it depends on the conflict in the Middle East, but that's what we have in our forecast at the moment. Regarding the EBIT margin in Q4. Yes, you're right. EBIT margin is impacted slightly by the Middle Eastern conflict. So I mentioned the EUR 23 million in revenue reduction. But on the other side, we have EUR 7 million of positive effects. So net is EUR 16 million you can consider about EUR 2.5 billion or EUR 3 billion impact on EBIT. So if you add this to our numbers, you will see that our EBIT margin in Q4 would have been 8.6%. And 8.7% in total year. So that's the impact, not only on top line, but also on our EBIT margin. The third question forward now to Attila regarding capital allocation and Mexico.

Maybe first of all, the WA impact, I think, is between EUR 30 million and EUR 40 million, something like this, depending on what's been really happening. So we have indication obviously how many gas we have -- so it's at least the 3 something up to 40%. So this is what we expect. Can it be more? Yes, more people simply buy in and here in the 3 locations where we are -- regarding Mexico, you're 100% right. I mean here we have a temporary kitchen next to the stadium where we can produce. But definitely Mexico and Latin America is especially in the context with Iberian with all these things we should do in this region how should I say, a business case, which really might make sense for the future. So we're evaluating this or have started to emanate this. That's the part on Mexico and South America impact of miles, I think Lane answered already. And please keep in mind that even the impact was not helping us in our numbers, we could manage it somehow. And sooner or later, they will come back to. There's no way that Qatar and Emirates will not fly. I think MRs investing billions in better product on board and Qatar is the same. So end of the day, we have premium practice of them see their home base and see what happens when they are back. So in total, what Johannes said EUR 2.6, EUR 2.7 billion for this year, I think is a reasonable estimation. And as we said in 3 years' time, we are adding the close to EUR 3 billion. I think this is absolutely reachable -- so we expect the year after something between EUR 9 million and EUR 3 billion. So this is without any M&A. So this is the current business development, which we believe really makes sense and a reasonable internal operational tool. So if this okay? Or is there anything missing on your side?

In terms of new bases, do you have current discussions on potential large new kitchen at some airports or new airports where you could operate whether it is in the U.S. or in Europe?

Yes. We are looking at, just to be careful, but I cannot give you any more detail. I mean, obviously, if you have this kind of financial set up. And obviously, we know that not only you got will ask us what you're going to do with the money, for sure, we are thinking that the key is I don't know how much it came out, the quality growth means where can we grow, where we do not go in stupid commodity go margin business. So this is what we do not want to do. So we want to go in partnerships. We want to do in joint ventures, we want to go in [indiscernible] on a net value, which we can create for our clients and then get a nice return on that which then in their balance sheet doesn't change their life, but in the image of an and really makes a big difference. And at the same time, I mentioned already a few minutes earlier. The reason why we said the very last moment, yes, to do fleet we see how many tonnes you get the chance to show the American market that you can do hospitality in a different way. So yes, for us, it's a tough cookie. Believe me, usually, we would plan the World Cup like for 2 years. We had, I don't know, 6 weeks and 4 weeks. And it was even not until the end, clear we're doing it or not. So we took the risk. And the only reason is we believe if we can deliver in Miami in the New York and in Mexico, obviously, a super product and in comparison to the competitors than the next business in U.S. canon. This is what we believe. So our advertising is basically to make our clients happy and that's what we do. and not going for this revenue, which only we just revenue without any margin. So what Johannes said in terms of increasing the margin from 8.6% towards in is simply the next step. And then we always said the year after, obviously, we want to go having #10 under circumstances, which are okay. So it's no middle is in carrier is flying, obviously, then you suffer but to suffer on a different level than anyone else. So I think we're still the strongest company in this industry now, and that gives us the opportunity to segment on all the premium leave the low margin commodity business to the others.

Then the next question comes from Patrick Scheiner from ABH.

2 questions from my side. Firstly, congratulations in American Airlines customer. How do you expect the business with them to scale over the next 3 to 5 years? How does award affect your group strategy in the U.S.? And secondly, the EUR 30 million to EUR 40 million revenue impact from the World Cup you mentioned is in U.S. dollar, right?

Yes, correct, Patrick. We're talking about dollar.

[indiscernible] I mean that relationship in a like Chicago is at least not long to flat today. And we have always a chance to convince your clients by doing it better than someone else. So we are everywhere in heavy competition. And I think the reason why we put in the presentation a recognized 223 million passengers is obviously showing you the opportunities and the upside. But like tens tournament, you're not going to think in round one who is when you build against whom we were going to play in a final. I think the first step is now to do this around one with them. What we really like with American is the way how the chemistry works. So the whole relationship started in London with where we have them on some occasions, and then they like it, and then they got better NPS scores. And then -- so it's always the same story. So if you make someone happy and they rely on you and they see a partner in you, then we have opportunities. I mean someone with 10, I don't know, 200 aircraft or 1,000 aircraft is always a great partner for the future. But our first objective do this well, then I'm pretty sure it's going to be in the next 100%.

Then the next question comes from Vladimira Urbankova from Erste Group Bank.

Congratulations to your results and maybe some more details on some issues which were already touched Elias. So this American Airlines this contract, how much it brings you for now to your revenue line? And do you need to make any bigger investments in Chicago to accumulate accommodate needs of American Airlines. And with this respect also a question, how much do you think will be your CapEx in fiscal year '26, '27 then a little bit more on the Middle East. You were talking about net impact of EUR 16 million in March. Of course, this was the phase when almost all traffic was closed in the Gulf region so how does the situation develop now? What are the currently net loss sales compared to expectations on last year in April and May. And how do you see it maybe if situation will not escalate for this year? What could be the overall impact of the Middle East on your company?

Okay. Thank you, Vladimira, for your questions. So let me start with the first one. American Airlines, the revenue, the starting point here is EUR 50 million around for one year. [indiscernible] have 17 flights but a lot of domestic flights, yes? And your second question that was regarding the space in Chicago. So we do not need additional kitchen space for that customer, but maybe logistics space. That's what we tell you all the time. We have still a kitchen capacity in most of our kitchens. But what we need if we win a tender like that is normally a logistics space, which is also not CapEx intensive, to be honest. And yes, of course, we need also trucks. The second one on the CapEx guidance for this year is around 3.5% of our revenue. So I would expect around EUR 90 million. Last year was a bit lower. We have a lot of projects as Attila mentioned, in our restaurants, but also with our units. So please expect EUR 90 million for '26, '27. And the third one regarding Middle East. So we see already improvement I mentioned the minus EUR 16 million net effect in March. So we saw that this number came down in April to minus EUR 14 million in May, minus 9%. And we also expect improvement in tune. So then maybe July onwards, we expect something around EUR 5 million to EUR 7 million. So it's not a big impact in airline catering and then our last division of restaurant lounges hotels, the impact is low, to be honest, it's around 0.5 million per month at the moment, but it's getting better and better. I hope that I answered all of your questions.

Yes. Maybe can I add something no one is asking what happens for the Middle East and [indiscernible] full capacity, then you boom in the other way around. So we're just talking about what we are losing. But once there is a peaceful environment in the region, then it goes the other around because they will go aggressively on the market to get all the clients back on and attracts maybe people who do not like because they have to fill up all the planes. And as you know, the culture of the Middle Eastern carriers is quality oriented. So they will invest to get clients and the fact people to fly. And we are very confident. That's the reason why we say sooner or later, it will come the other way around.

[Operator Instructions] And the next question comes from Miro Zuzak from JMS

I have a couple of them. Is it okay if I take them one by one.

Yes, of course.

Okay. So the first one is on airline catering. I mean now you've just given quite detailed numbers on the Middle East situation. We've also noticed the decline in organic growth in Still, full year growth in local currency was 19.5%. Now you mentioned the 7% to 8% growth in reported currency for 2027. You said more than 10% or double digits in local currency. Now do you expect like an underlying decline in the growth of the airline catering business? Or is it just that you now expect in Q1 probably there's going to be some kind of, I don't know, EUR 15 million, EUR 20 million of impact from the Middle East, but the underlying growth is continuing or even accelerating. Can you comment on that, please?

Thank you, Miro for your questions. So please -- so maybe the first point regarding the difference between reported growth rate and constant growth rate -- for '26, '27 now we expect a difference of around 7 percentage points based on the FX forecast that we get from our banks. So the difference between those numbers should be lower than last year. as you know, in 2025, '26, the difference was more than 10 percentage points. So that's why we're talking about 7% to 8% increase in reported currency, then constant tires should be somewhere about so close to the numbers we had now in Q3 and Q4, without the Middle Eastern effect. Because as I mentioned, without the 3 weeks in March, our constant currency growth rate would also have been at 16% to 17%, which is in line with our Q3 growth. So we do not expect any decline except the situation in the Middle East, but I think I talked about that in detail. But yes, we do not expect any other decline, no.

Okay. And the second question is on the margin. I mean you mentioned, I think, if I understood correctly, you mentioned 8% to 9% in 2027. Now this seems to be like a broad range and even especially the lower end would basically mean that there is quite a significant decline. Could you qualify this a bit what the drivers are, whether you basically reach the top end or the low end of this guidance?

Yes. So I mentioned 8.6% to 9% so of course, we don't want to get 8.6%. So it's not 9%, it's 8.6% to 9.7%. So it's a very close spectrum, to be honest. And it's again a combination of, of course, new contracts or provisional leverage efficiency improvements. So all the topics that you know anyway. And then I think for the next step, 9% to 10%, again, it's the same story together with automization and also provisional leverage I think we are well positioned to reach that. We started at 6.0% 3 years ago. So I think we can see this is really a sustainable margin development, which we also see in the next years. and hopefully not below 8.6%.

That's also very clear. Okay. That's clear. And that's reassuring. And one more question on the structure of the P&L. So if I look at the development of the personnel expenses versus the cost of materials, then the shift seems to be ongoing. So your cost of materials are going down, your personnel costs in terms of -- like in terms of percentage of revenues are going up. Should we expect going forward that this is basically going to continue? Or is this at some time plateauing at a certain level?

Yes, that's a good point, Miro. That's a development that we have seen now in the last years, you are correct. It's a shift, especially from agency staff to fix stuff, which also improves our efficiency. And you know that in our material cost also agency costs are included. That's why you see the shift here. I think the shift continues, but maybe a bit lower than in the past, to be honest. But it's still for us a very important trigger to improve efficiency to get our own staff to train them so that the people are doing the same task every day so this is, of course, again, on our agenda and helps us to improve our results, of course,

And the next question comes from Marie Teresina from Cantor.

Excellent. All right. Great. So my question pertains to M&A. I mean, with PE potentially looking to divest part of LSG Get Gourmet everything that's going on, [indiscernible] preparing an -- and certainly, the opportunity to buy some local players as you see to grow your stadium business, especially after the fantastic showcase, you will be able to deliver at the World Cup. So can you give us your thoughts at in on where your priorities would be, if any, in M&A for the next 2 years by business, by geography? And also, if you can give us some metrics in terms of your own sort of benchmarks, what kind of revenues, EBIT margins, what kind of multiples you prepare to pay or not go above just so we are with that when you decide to go the inorganic growth route?

Okay. Thank you, [indiscernible] So on the key element is, as we have already discussed to operate U.S. is a super key market for the future for us. It's that we see in terms of where but we are not ready with enough skilled people in all these locations to take over something what people expect the level locos to deliver. So this is the reason. So we do not -- we are in a unlucky position that we are not suffering on demand. We're suffering on the precise delivery of a high-value experience no one else can do. So this is -- so we don't want to go in this commodity, as you know, anyway. So that's the reason. M&A is quite difficult. What we're going to buy -- so if you go in airline catering, as you mentioned, at it will be -- or is on the market at the U.S. LSG, I think the others are sold and already did a great job. Obviously, honestly, so that is super. So would we buy something like with 8 a 10x multiple to get what -- to get contracts, which is pin a few years so I think this doesn't make sense, to be honest. What makes sense is if you get a platform for a reasonable money, which is far less than the multiple I have mentioned that you can get at least the logistics side of the business, which others don't see in terms of products, and we could add our way of creating the product, then okay. But for that, if you pay 8x and 10x EBITDA multiple, honestly, you're not going to end up there. It's not going to work. So if you take the same money and invest on your own and growing partnerships with the right airlines with the right partners, with the right media, then I think you can achieve the same in the same time frame on the long run with the far better margin. So that's the reason that's the answer. So would you go for M&A, Yes, obviously. If we get an opportunity, which we were somewhat successful for and wants to sell the business because I don't know, noon is going to continue or this kind of thing, then obviously, we would go in. If this is in the premium experience business, 100% we will do. So this making a long story short, the U.S. market is #1 in the past because we were so with the other stores and multiple wide, I think I gave you the right answer. Would you pay 8x multiple if someone is a great contract. And not only the great contract. It's a great product where you most likely may continue and so they're already doing a great job or do you say sometimes, obviously, you would do, but not, I think, in the circumstances where we are today in this industry.

And the next question comes from Christoph Greulich from Berenberg.

Yes, it's actually just 1 from my side. I wanted to circle back on the Middle East situation a bit more the indirect impact that it has on your industry. So jet fuel prices are obviously higher and putting some pressure on the profitability of the airline. So I was wondering if you have seen any shift in the attitude of the airlines, if there are any signals that airlines might try to save costs on the catering side and if there has been any what difficult pricing discussions with your customers?

I mean, definitely the industry is suffering a lot due to the high fuel price. So everyone is trying to look at where they can be more efficient. On the other hand, the ticket prices went through the roof. So if you pay in the premium cabin first business and even premium economy is considered somehow as a premium cabinet, you charge what they charge today, all of them then you have to give them some copper product because people are getting upset otherwise. So what we see is the mix of that in economy, you go for , let's say, budget driven, but still His something which does not cure product. And in premium and almost everyone has improved the premium of everyone. So because the yield went up so much that no one can argue. So even the American cars partially think about doing something and on the other hand, the Middle Eastern definitely go for the better product. And I think they don't go as a good opportunity with the reputation with the brand. We are the only consumer one, consumer brand, so to say, so people see our chocolate and cookies on the desert with the DO & CO regardless of [indiscernible] or Turkish or member and then have a kind of cross-marketing to Formula One experience to the welfare this kind of I would say, marketing mix is another add value. So if we are in the premium category, which is not the highest driver of the total revenue, slightly higher, which gives us the margins we have, and we don't have a problem to sell. But for sure, you have to work with every client to reduce cost, which is not visible for the passenger. That's for sure. And this is what we are doing. So we were very open discussion with the airlines, and we do not give them a threat. Some competitors say, if you don't give me the business here, I don't want to give you the business there. so you cannot get the delivery there. So we don't do this. It's a matter of attitude. And I think our attitude is slightly different with no IPO from the first. Our numbers of -- so thank you very much, honestly today, not too much to say. But we did now that we get come in. We are happy and proud of the results of these I think we have discussed the Middle East, and we believe we're in a good position. We were very flexible, by the way, with the Middle East in difficult time. So we did not insist on a detail of the contract, I think, which comes back to 100% and afterwards, our academy, which we believe is the trigger of the growth is developing very well. As you know, we have this kind of cooperation with [indiscernible] which is the best in the world. And they will -- I think all these, let's say, details make the whole picture, curating us what is growth for the future and no margin impact regards has happened on the market. So bottom line, that's it. So thank you much for your time for in us that we can deliver here. Please watched the TV, a great opening show. And we'll see what some happen then afterwards. Thank you very much for listening and hope to see you soon. Thank you.

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