Jerónimo Martins, SGPS, S.A. ($JMT)

Good day, and welcome to Jeronimo Martins' Full Year 2025 Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Ana Luisa Virginia, Chief Financial Officer of Jeronimo Martins Group. Please go ahead, madam.

Thank you, Nadia. Good morning, ladies and gentlemen, and thank you for joining this call. Before I take you through the Jeronimo Martins' 2025 full year results, I will give the floor to our Chairman and CEO, Mr. Pedro Santos. Mr. Pedro Santos, the floor is yours.

Good morning, ladies and gentlemen. After a very tough 2024, 2025 was again a very challenging year for our companies in the countries where we operate. We knew it would not be a walk on the park, and it wasn't. Quite on the contrary, we face pressure everywhere. Global geopolitical and trade tension, severe supply chain risks only aggravated by the very recent escalation in the Middle East has been weakening growth and negatively affecting consumers and also business confidence. Our solid sales performance in the year was achieved in the context of very price-sensitive consumers and of tough competition. Biedronka celebrated its third anniversary with a reinforcing commercial dynamic and price leadership. Despite the very intensive competitive environment driven by expand capacity of all players in a food market that lose volumes for the second year, once again, Biedronka gained market share. On top of the strong focus on sales, Biedronka adopt a heavy fist on costs and paid extra attention to productivity to compensate for raising costs, particularly wage related. We are fully aware of how much the sustainability of our business rely on sales momentum to dilute fixed costs, particularly when labor expenses across the group are increasing above the pace of the sales growth. Our extreme focus on the top line is rooted in this awareness, and I see no room for relief on this matter. In 2025, the response of our companies in face of multiple source of pressure on cost was decided to protect profitability. On top of the volumes growth, cost discipline, productivity initiatives and efficiency gains were crucial for the increase in EBITDA margin for the first time since 2021. In 2025, we kept a fast pace of expansion. And with Biedronka interest in Slovakia, we added one more country to our portfolio. In Colombia, Ara continues to strongly invest in a price-driven total sales to surpass the EUR 3 billion market and significantly improve EBITDA. In all countries where we operate, we made good progress in our sustainability agenda. We what regard the environment in 2025, for the first time, we were recognized by CDP with a AAA regarding all 3 of its programs, climate, forest and water. We are proud to be the first and only food retailer in the world so far to achieve this level of performance. Regarding the social dimension and on top of the company's own programs, I highlight the work of Biedronka Foundation to which EUR 20 million were channeled in 2025 and of the Jeronimo Martins Foundation that concluded its setting up process. As we ended the year with a solid net cash position of EUR 866 million, we increased the donation to Biedronka Foundation by EUR 5 million to EUR 25 million in 2026, and the Board will propose to the stakeholders' meeting the payment from 2025 net earnings of EUR 40 million as the [indiscernible] to Jeronimo Martins Foundation. In line with our definition -- defined policy, we will also present to the shareholder meeting a dividend payment proposal. I personally believe that profitable and sustainable business growth goes hand-in-hand with satisfied stakeholders and less an equal society. And this is why as long as our business keeps delivering on their targets, we will maintain our contribution as responsible corporate citizens. We can only truly help the others in a sustainable way from a strong and solid position. That means putting the best of our knowledge and capabilities at the service of business growth so that our business can then play an important social role they are expected to. As we move forward into the very uncertain and risky 2026, we will balance ambition and prudence and perform regular reality checks to make sure we are fast and effective in deciding and implementing whatever adjustments we might deem necessary. And Luisa will now take through the full year results. Thank you very much for your attention.

Thank you, Chairman. As a reminder, in our corporate website, you can find the results release, a slide presentation and a media presentation for the year. The group's performance in 2025 translates our company's strong commitment to deliver against a very volatile geopolitical context marked by global commercial tensions. In a demanding operating landscape characterized by cautious consumer food spending and heightened competition within the food retail sector, our banners were able to manage the anticipated challenging combination of low basket inflation with cost inflation, particularly on labor. Group sales grew 7.6% ahead of 2024 to reach EUR 36 billion as a result of consumers' acknowledgment of and preference for our strategic focus to guarantee price leadership, innovate in our assortment and improve shopping experience. Robust top line growth and disciplined cost management translated into EBITDA of EUR 2.5 billion, an increase of 11.1% year-on-year. Group EBITDA margin was 6.9%, 22 basis points up on 2024 despite persistent cost inflation and a highly competitive pricing environment. Building on this strong operational performance, cash flow reached EUR 537 million, further strengthening the group's balance sheet after the successful implementation of a comprehensive investment program. All in all, the persistent adaptability and responsiveness of our business models drove a pretax ROIC of 20.1%, broadly in line with prior year. Despite all the challenges and hard work to deliver growth, we also made good progress on our sustainability agenda. Later this month, we will publish our annual report, which will provide detailed information on what the teams delivered on all fronts of our corporate responsibility agenda. For now, I would mention a couple of achievements. First, Jeronimo Martins became the first international food retailer to receive a AAA regarding rate -- AAA rating from CDP on its climate, forest and water programs. And second, despite strong expansion and consistent sales growth, we achieved an 18.4% reduction in our Scope 1 and 2 carbon emissions since 2021, the baseline year for our science-based targets and climate transition plan commitments. A final word here on the investment of more than EUR 360 million in employee recognition. Our people remain as it should at the center of our corporate responsibility agenda. Looking now at the P&L for the year, I would like to highlight the following. At the operational level, the performance was driven by a combined focus on sales and cost discipline. Robust sales and reinforced cost discipline and efficiency protected EBITDA despite significant wage inflation and intense competition. The execution of the investment program is reflected in the evolution of both depreciation and net financial costs as the latter also include the interest expense of capitalized leases. The other profit and loss heading considers write-offs due to refurbishments, restructuring costs, provisions for legal contingencies and the EUR 40 million endowment attributed from the 2024 net earnings to the Jeronimo Martins Foundation. It also includes EUR 28 million, recognizing the extraordinary execution efforts of the operational teams who managed to deliver sales volume growth in highly demanding markets while improving operational productivity. Specifically on Q4, while EBITDA margin followed the pattern for the year, there are a couple of one-offs I want to pinpoint. The first relates to gross margin. The improvement in Q4 is primarily explained by a one-off adjustment on the provisions for inventory depreciation as our auditors concluded we were being too conservative on this computation. We also help -- it also helped the positive mix in Portugal and in Poland, mainly driven by successful Christmas campaigns in the case of Pingo Doce and Biedronka and by a proactive mix management at Hebe. The second relates to OpEx over sales as several factors resulted in more pressure on costs in Q4. There were significant store and DC preopening costs in some companies. It is the case of Ara and Recheio and also some further labor costs due to heavy execution during Christmas season as well as to the implementation of several material projects, being an example, the deposit return system. Cash flow for the year before dividend payment was strong at EUR 537 million, reflecting the solid operational performance of the banners and the normalization of funds generated by working capital following the adjustments recorded in 2024. The group ended the quarter with a solid financial position, comprising net cash of EUR 866 million. In 2025, the investment program totaled EUR 1.2 billion. The focus was on taking our banners even closer to consumers by opening new stores and at the same time, implementing the latest equipment and layout standards in existing stores, enabling us to improve the quality of the assortment and operational efficiency and enhance the shopping experience. All in all, we opened 448 stores. In this regard, I highlight Biedronka's entry into Slovakia with the opening of 15 stores and 1 distribution center in the year. Our remodeling program is of strategic relevance and in the year covered 281 stores across all businesses. Adding to the CapEx, there was an additional EUR 85 million of financial investments channeled mainly to salmon and cod aquaculture operations in Norway. Looking now into the detail of the performance, I will start with sales. All companies performed well, registering positive volume increases and adding also with a positive contribution of the zloty exchange rate, EUR 2.5 billion to the group's total sales. Consolidated sales grew by 7.6%, 6.7% at constant exchange rates to reach EUR 36 billion, driven by a like-for-like of 2.5% and a solid contribution from expansion. In analyzing each banner's performance, I'll start with a quick overview of the context, beginning with Poland. Despite solid economic performance, lower interest rates and almost full employment, Polish consumers remain cautious and restrained in food consumption. The average food inflation for the year outpaced the 2024 figure, but it is important to keep in mind that food prices evolution began slowing from September and ended the year at 2.4% with year-on-year deflation in some categories. In this context, Biedronka reaffirmed its price leadership and well-recognized promotional dynamic. In parallel, a lot of work was done to innovating the assortment and enhanced shopping experience. All in all, the banner delivered one more year of outperformance, having added nearly EUR 1.8 billion or EUR 1.4 billion at constant exchange rates to its top line and increased its market share. Total sales reached EUR 25.3 billion, 7.5% ahead of 2024 or 5.9% at constant exchange rates, including a like-for-like of 1.9%. Q4 like-for-like growth was solely volume-driven as country food inflation slowed and Biedronka experienced basket deflation from November onwards. Hebe faced an extremely competitive market and operated with basket deflation. Leveraging the exclusivity of its assortment, the company protected its position and grew sales by 7.4%, plus 5.7% at constant currency to EUR 626 million. Moving on to Portugal. The economic performance was resilient and all the consumers remain focused on value and price, increased population, mostly migrants, supported growth in the food retail sector. Through an intense promotional dynamic and benefiting from reinforced differentiation enhanced by its all about food store concept, Pingo Doce grew sales by 5.5%, excluding fuel. Having increased volumes, clients and average purchase, the banner delivered a strong 4% like-for-like growth. Pingo Doce's range and quality of fresh products and ready meals now match the updated store layouts, providing a clear competitive edge in a market where all players are adding capacity. Recheio also enlarged its client base and increased volumes, having reached EUR 1.4 billion in sales, 3% ahead of previous year. This solid performance was supported by both segments, HoReCa and traditional retail. Recheio's unique B2B value proposition that provides competitive pricing, tailored offers and reliable service to its different customers has just been enriched with a long-time desired new addition, a major greenfield store in the Lisbon area opened last February. In Colombia, 2025 remained a tough year for families. Inflation stayed high, pressuring consumption and reinforcing a very price-sensitive and promotions-driven environment. Nonetheless, we did see early signs of macro stabilization as the year progressed with improvements in consumer sentiment and demand. Ara kept the intensity of its promotional agenda on top of everyday low prices. By reinforcing price competitiveness to be the first choice of consumers in the neighborhoods where it operates, our Colombian banner delivered a strong performance with sales growing by 13.3% or 17.4% in local currency to reach EUR 3.2 billion, nearly EUR 0.5 billion more than in 2024. Like-for-like growth was at 5.8%. Importantly, performance was mainly volume-driven as basket inflation remained consistently below country food inflation, reinforcing Ara's value proposition and price perception. This performance reflects strategic focus, rigorous execution and growing relevance for Colombian consumers. Consolidated EBITDA amounted to EUR 2.5 billion, increasing 11.1% or 9.9% at constant exchange rates over 2024. All business contributed to this performance with robust sales growth combined with cost discipline. Group EBITDA margin stood at 6.9%, 2022 basis points up on 2024. At Biedronka, EBITDA grew 9.8%, up 8.1% in local currency, with the respective margin standing at 7.9% versus 7.7% in 2024. Solid sales growth, disciplined cost management and increased focus on productivity mitigated the pressure generated by price competitiveness and cost inflation, mainly wage related. Hebe in a highly promotional environment, worked hard to protect profitability by optimizing its sales mix and deepening cost management, driving EBITDA to grow 9.7% or 8% in local currency with the respective margin reaching 10.4% versus 10.2% in 2024. At Pingo Doce, EBITDA grew 8.5%, with the respective margin increasing to 6% from 5.8% in 2024, driven by sales growth and systemic initiatives to increase productivity and offset cost pressure. Recheio delivered EBITDA growth of 4.6% with the margin standing at 5.2% versus 5.1% in 2024. In addition to a positive sales performance, growth was supported by Recheio's extremely competitive positioning in the HoReCa channel, enabling the banner to capitalize on stronger dynamics in this segment. Ara's EBITDA grew 37.6% up 42.7% in local currency with a corresponding margin rising to 4.1% from 3.4% in 2024. Besides sales growth, the strong margin performance reflects the consistent work started in 2024 to protect the company's gross margin and limit the impact on costs from inflation and labor reform. In 2025, we successfully navigated a highly demanding operating environment by remaining firmly focused on consumer needs while maintaining tight operational discipline. Leading price positions, continuous assortment innovation and enhanced store format allowed us to strengthen our value proposition and to keep consumer preference across all banners. This translated into solid sales growth, volume increases in every business area and continued market share gains. At the same time, we managed the business with a strong emphasis on efficiency and operational productivity, both in stores and distribution centers. This balance between commercial intensity and operational rigor enabled us to deliver robust returns with pretax ROIC reaching 20.1% and cash flow generation of EUR 537 million. We also delivered consistently on our capital allocation priority. An ambitious CapEx program was executed as planned, supporting network expansion, refurbishments and logistics development, while our dividend policy was fully met. As a result, we closed the year with a strong balance sheet, a reinforced positive cash position and a solid platform to face a very uncertain operating context. Looking ahead to 2026, our strategy remains unchanged. We will keep firmly focused on consumer needs and expectations across all markets. Our banners will continue to prioritize price competitiveness, supported by effective promotional campaigns and the ongoing development of their assortments in a context where consumers are expected to remain highly value-driven. The operating environment remains challenging. Heightened geopolitical uncertainty continues to weigh on the confidence of families and remaining economic agents and competitive intensity across our markets is very unlikely to ease. Against this backdrop, we will continue to enhance our market presence by executing our expansion plans with precision. Our primary focus will be on Biedronka, where we anticipate opening more than 120 new net locations in Ara, which is expected to see the addition of over 200 stores. Furthermore, elevating the quality of our store network and strengthening our logistics capabilities, both critical pillars of our operational competitiveness will stay as top priorities. As a result, investment remains our key capital allocation. In 2026, we expect the CapEx program to reach around EUR 1.2 billion, supporting growth, productivity and long-term value creation while maintaining a prudent and balanced financial profile. Thank you for your attention. Operator, I am now ready to take questions.

[Operator Instructions] And we'll go to take our first question, and it comes from the line of Frederick Wild from Jefferies.

The first one, please, is -- could you confirm whether you've seen any impact so far on consumer behavior, either in current trading or just in sales trends from the Iran war? Helpful to contextualize the change in guidance. And then the second question is, so it still seems like you're operating in basket deflation. Given what we know now about how COGS inputs are trending and how the market is trending, what's your outlook for food inflation in Poland for the rest of this year?

So thank you, Fred. I don't think that we are really changing the guidance. Of course, what -- because, of course, it's true that when we published our trading statements for the year, there wasn't still an escalation of the conflict in the Middle East, but nothing changed. So we keep really the confidence on our businesses and on their readiness. What we, of course, mentioned is a little bit more caution because we state that we are prepared to inflect or to adjust some of our decisions according to our plan, depending, of course, on the effects of this escalation on different value drivers for our businesses. So we know that, of course, energy prices will be key. We know that also other effects that will take into consideration and will probably affect, as we stated, consumer and the business' confidence to continue to invest may be something that we have to monitor. Up till now, in all our markets, we really do not see a change in the behavior. So the consumer behavior was cautious and promotion driven and continues to be. But we don't see really a step back, let's say, following the Iran war at this stage. Of course, this doesn't mean that things will not get a little bit tougher. But for the moment, we do not see that on our current trading. What we see really, and we flagged this is that since the end of 2025, we are on all our businesses operating with very low inflation. And in the case of Biedronka, we flagged that we are operating in deflation. So we decreased a significant number of prices at the end of 2025. And that's, of course, not only to keep competitiveness, but to meet really the expectations of the Polish families and to keep up with our consumers. If for the future, this path will change, of course, it will depend on the number of circumstances. If this conflict continues, we expect, of course, this to have effect on the production factors. on the PPI that was negative in Poland also at the end of last year. And so there may be a change. So our baseline, I can tell you, and I think that we mentioned that previously, our baseline is to operate with quite low inflation, but we expect not to operate with deflation. But for the moment, that is the circumstances now in the first quarter for Biedronka at least.

Now we take our next question. And the question comes from the line of Will Woods from Bernstein.

My first question is just on the gross margin. Obviously, you've been operating in a low inflation and deflationary environment for a while, but you're seeing gross margin expansion. Could you just give us some of the details on the building blocks of that gross margin expansion? And would you expect this to continue? And then the second question is just on Biedronka expansion. Obviously, you brought down the number of net new stores that you plan on opening. And what's the rationale for basically opening fewer Biedronka stores this year?

Will. So on the gross margin, I think that here, of course, you have several effects on the yearly gross margin, which is the one that you should take into consideration because, of course, as I mentioned, in Q4, we have a one-off effect affecting the gross margin, and that's why you see such a progression quarter-on-quarter. And as I mentioned, we had at the request of our auditors to slightly adjust our inventory depreciation policy, which they consider to be a little bit conservative, and that had an effect on gross margin. So -- but if you look at the progression on all the other quarters, and if we take out this effect, of course, we had, I think, a very resilient gross margin in all the businesses. We have also the effect of the mix -- and we have, as we flagged throughout the year, particularly in the first 3 quarters as the fourth quarter is already a little bit more comparable, Ara really rebuilt the margin, the gross margin in 2024, and this is already reflected in a stronger gross margin. So I think that as for the improvement for the years to come or for this year, I think it's something that will depend, of course, on the market, particularly because as I mentioned, our priority is clear. We want to be and to keep to be very competitive in the market. And we are going to respond to whatever be the consumer behavior. So in this aspect, we will have to take this into consideration. Also, of course, the situation across and depending because the gross margin is, of course, also part also -- or it has to do with the situation of the different categories. It may happen that depending, of course, on the deflation on this matter on the PPI or on the volumes in the production of our suppliers. This will depend and may affect the margin. But for now, we do not expect to have a strong expansion of the margin. So the one that you see in the fourth quarter is not to be repeated, at least as such. What may bring the margin a little bit up on the gross margin can only be the trade-up or a different mix from our sales. On Biedronka expansion, so I don't think that there is -- in our guidance, it seems to be a slowdown in expansion. But in fact, we are mentioned the net openings, which doesn't mean that we are not open more stores because, in fact, we continue to replace some older stores in neighborhoods where it doesn't make sense either to operate with a certain store. And so -- in fact, we continue to see white spaces in Poland, and we see space to continue to open. And for -- it's true that we also expect some speed up in the refurbishments. So all in all, no change really on the opportunities that we still see in the Polish market in terms of expansion.

Now we're going to take our next question. And the question comes from the line of Luis Colaco from JB Capital.

I have a couple of questions, if I may. The first one is related with the gross margin expansion. As you said, the 37 basis point expansion in the fourth quarter was mainly driven by one-offs. Can you tell us without this one-off, if you would still would be able to have increased and expanded your gross margin in the fourth quarter? My second question is regarding the nonrecurrent items. It was roughly EUR 65 million in the fourth quarter. Apart from the bonus to the employees of EUR 28 million, can you provide us some more color on what is driving this EUR 65 million in the fourth quarter? The third question would be on the expectations for wages in Poland for 2026. How much can we expect wages to go up in Poland in 2026? And the last question, if I may. Can you provide us some color on why the effective tax rate was a bit higher in the fourth quarter?

So on the gross margins, so it's true that the margin mix also played a role, but most of the increase in the fourth quarter was really the one-off adjustments that we did. So there is a slight increase also explained by mix, as I mentioned, but most of the increase is explained by the adjustments. On the nonrecurring items, I would highlight 2 that are quite important, of course. One is that we really reinforced our provisions for legal contingencies. And we also have the restructuring and write-offs weakening on the -- on this nonrecurrent items. So some of them, of course, are or are not considered in terms of tax. And this, together with a different mix in our results, makes the effective tax rate going a little bit higher, but there is no main difference that comes out of that. For the expectation of the wages in Poland, as you know, the proxy is the minimum salary increase. But Poland has a very tight labor market, as you probably know and are aware. And so in terms of our wages, we already did adjustments in our salaries. And -- but we do not -- what we will do, of course, is to stay competitive to really make sure that we have the proper remuneration in place to also be a reference employer in Poland. So I don't think that it's true that the reference, as I say, the reference is lower, but that doesn't mean that we will not stay competitive and we'll have to do the adjustments in the salaries to be competitive and to, of course, have the respond to what we expect to continue to be the growth of our sales and of our operation.

Now we go and take our next question and the question comes from the line of Matthew Clements from Barclays.

Two questions, if I can. One would be you continue to describe the Polish consumer is cautious and restrained despite lower interest rates and low unemployment. What are you seeing in terms of volume and mix in early '26? And you're cautious on the outlook for the rest of the year, but as of the day before the Middle East conflict, what was your assumption that volumes and mix improved through the year? That's the first question. And the second one would be on energy costs. Can you remind us what energy costs are as a percent of sales and what your hedging policy is for the year ahead? And the final one, actually, if I can squeeze one extra one in would be, can you just give some color around your discussions with suppliers in terms of timings and how input cost inflation might come through the transmission mechanism, how that might come through into inflation for the year ahead?

So thank you, Matthew. So in Poland, as I mentioned, I don't want to go a little further in our current trading. So we are flagging that we have deflation. Our base case was, of course, as I mentioned, to operate in low single-digit inflation and having most of the growth coming from volumes and mix. So of course, we expect and we are working to have growth on our top line. So volumes and mix are something that we expect to have for the year also and playing a role in the growth of the company. On energy costs, in the case -- and this is a little bit similar across all banners is around 1 percentage point or slightly less of 1 percentage point in sales. Of course, you then have the transport costs on the logistics that's also linked to fuel. But on the energy cost is slightly less than 1 percentage point. On the discussions with suppliers, of course, and we have our business partners, and we have to align with them also on the context. But this -- so I think that we want to have a win-win situation with them. And of course, we will take into consideration the situation of the market and simultaneously also the impact that may come. We still have to see because we -- at this point, we don't see still, as I said, a direct impact and many changes in our dynamics, commercial dynamics, but that doesn't mean that we don't have to take into consideration the pressure on production factors that may arise from further commercial tensions or from the -- some disruptions that may come at the level of the -- or following the escalation of the tensions, particularly in the Middle East. But it's something that at this point, no big tensions. We need our suppliers and we need to be with them. And the negotiations will be, of course, to have win-win situations also for the consumers, don't fight. So as always, it will be fair, but tough negotiations, but also -- and having them also wanting to increase volumes because as I stated, at least in Poland, the PPI was in deflation. This means that they also want to drive volumes and Biedronka is making sure that this happens.

[Operator Instructions] And now we're going to take another question. And it comes from the line of Rob Joyce from BNP Paribas.

So first one -- 2 quick ones. Just to confirm the provision reversal -- inventory provision reversal in Q4, that's a one-off, and we won't see that repeat. Effectively, it won't impact the margin in '26. Second one, could you just give us an update on the market share evolution in the fourth quarter and maybe even early '26, if you have it? And then the final one, just in terms of the Polish market, you mentioned the negative PPI there a couple of times, but the CPI remains around 2.5%. Just wondering, do you think is the market capturing a bit more gross margin? And at this point, does this reflect any change in the competitive dynamics? Or is there something we're just missing there on that gap between CPI and PPI?

Rob, so as I stated, I confirm that it's only a situation that affected in terms of the reversal on the provision, it's a situation that affected, as I mentioned, the fourth quarter. And as I stated, so we continue to be very competitive, and that reflects in our gross margin, although we also improved part of the mix. So for the year, I think that the progression is to be taken into consideration. What I'm saying is only on the fourth quarter, most of the increase that happened, so the 37 basis points was explained by this reversal. So I confirm that. It's a one-off. It has to do with accounting policies. On the market share for Biedronka, so we increased market share for the year. I would mention for the year because I think that, that comprises or at least has total comparability with no effects or at least effects that are diluted from a calendar point of view. So according to the same basis that we have, we have increased our market share by 20 basis points. On the -- so I mentioned the PPI, and it's true that the CPI is around 2.4%. Now it's not the situation of Biedronka, we have -- and it's not a situation of the PPI because you have different factors that you have to take into consideration. I think, of course, I'm not totally into the way that the CPI is fully computed. But what I really think that happens is, first of all, the CPI has into consideration all the different taxes that apply, including the excise taxes that have been changing in Poland and that in our net sales, we do not have them affecting sales. So there is a couple of factors on one hand. And secondly, of course, we have a different mix probably from the mix considered by the statistical office. And we are, in my opinion, a little bit more exposed to categories where deflation has been higher. And namely at the end of the year, for instance, on dairy, that was quite significant. And secondly, again, I've already mentioned that, I'm not so sure if the statistical office considers the whole promotional efforts, namely part of promotions that, of course, the price for 1 unit is 1, but if you take 2, it's much lower. So I don't know how that really goes into the computation. And I think that it's part of what explains the difference. This being said, I can tell you that Biedronka maintains a strong competitiveness and -- but nevertheless, was able even incorporating some one-off was able to be very resilient in its gross margin. And that, in my opinion, has to do also with the opportunities that it provides to its suppliers that if they want to increase volumes to improve their cash situation, of course, is with Biedronka that they have to be.

Just to round up, do you think your price gaps have expanded versus the competition with the deflation in your basket? Or do you think it's broadly in line with what the market is doing?

I think that we have defended the price positioning of Biedronka. So I don't see -- I don't think that has enlarged a lot, particularly from the remaining discounters, but we continue to be the most competitive.

[Operator Instructions] Dear speakers, there are no further questions for today. And I would now like to hand the conference over to Ana Luisa Virginia for any closing remarks.

We delivered well in 2025, good sales, good margins and good returns. Adding to this, and more importantly, we have consumers with us. To protect all these in 2026 implies maintaining flexibility and responsiveness as we execute our plans, closely monitoring changes in an unpredictable context, particularly in the first half of 2026 to make timely adjustments if needed. Thank you for your questions and for attending this conference call. I wish you all a nice day.

This concludes today's conference call. Thank you for participating. You may now all disconnect. Have a nice day.