Logista Integral, S.A. (LOG) Earnings Call Transcript & Summary

Good morning. I'm Gloria Martin, Logista's Director of Investor Relations. Welcome to this audio webcast to discuss the results for the 2022 fiscal year. I remind you that you will find more details of the results on our website. Íñigo Meirás, Logista's CEO; and Pedro Losada, our CFO, will lead today's presentation. After the presentation, there will be a Q&A session, in which we will read and answer every question received in the webcast forum between the publication of these results at the end of the webcast. The document, which accompanies this presentation and the observations that will be made as it progresses include forward-looking statements and projections concerning future results. I invite you to read the disclaimer, which accompanies the document and which mentions the various factors that could cause the actual results to differ materially from the projections or forward-looking statements. Now I'm handing over to Íñigo Meirás. Íñigo?

Thank you, Gloria, and welcome, ladies and gentlemen. During this audio webcast, we are going to deal with the highlights of the results, a review of the businesses and financial review and followed by the outlook for the forthcoming fiscal year. And to finish, we will open a session of Q&A. Our results were positive in 2022, once again confirming the strength of our business model and our ability to adapt to difficult market circumstances. Although the pandemic has become virtually normalized, thanks to vaccination and other measures, several factors combined to complicate international macroeconomic scenario. Inflationary trends, particularly market in the case of fuel and electricity prices, heightened due to the conflict between Russia and Ukraine, causing interest rates to be raised by the central banks, which [indiscernible] the rate of economic recovery in the following months. In this context, through good business management, we managed to increase economic sales by 4.7%, adjusted EBIT by 5% and net profit by 14.3%. Net profit from continuing operations have been rising by 9%. Our efforts during the fiscal year continue to be focused on attracting our operation businesses to the environment, reorientating the business towards the areas with [ greatest ] capacity for growth through organic and inorganic development, continuing to support our customers through added value services, which satisfy their needs and especially important this year controlling cost while seeking maximum operational efficiency. Our successful business model whose essential characteristics are flexibility and a customer-oriented approach enable us to maintain a good financial performance, even in adverse circumstances. As I anticipated during last year presentation, our strategic focus in 2022 has been on growth. Setting aside the dynamics that can occasionally impact volumes distributed in a particular country, such as changing cross-border flows on tourists, total volumes of traditional tobacco distributed in our main countries fell in '22 against '21 by more than 1%, and this trend is likely to continue going forward. This mainly explains why we are exploring growth alternatives to complement traditional tobacco distribution. This does not mean that we are going to abandon the distribution of tobacco. This line of business as well as being profitable enable us to provide our customers with undoubted added value, as a result of our deep understanding of the sector and the efficiencies that our operations had acquired over the years. To achieve as a stable transaction, and increased growth, we need to expand our business through synergistic activities by providing new services and promoting other complementary vertical services. For example, the distribution on next-generation products, which in the specific case of distributed volumes of heated tobacco showed growth of over 40% or business development in both pharmaceutical distributions in which economic sales rose by 9%. And in Transport, where economic sales climbed 10%. We also focused on increasing the speed at which organically we achieve this objective of growth. And to help us to do that, we have announced the acquisition of 3 companies. These are small and medium-sized companies, nontobacco related, operating mainly in the value-added transport that provide complementary capacities and synergies with our businesses. As we integrate these companies, we will continue exploring other potential acquisitions in line with the strategy. In February 2022, we announced the acquisition of 70% of the Dutch company Speedlink Worldwide Express, as specialist in time-critical express deliveries with origin and/or destination in Belgium and the Netherlands, which serves the health care, high-tech and automotive sectors, among others. This acquisition favors the international expansion of Nacex services in Benelux, while strengthening Logista's position in medical-health care distribution by expanding our portfolio of services outside the Iberian Peninsula. Speedlink recorded sales of EUR 13 million in '21, has 30 employees and has been Nacex exclusive agent for the Benelux since 2006, making it a known partner [indiscernible] integration with Logista. The transaction was paid in cash for an amount of around EUR 19 million for 70% stake. The agreement invites the acquisition of the remaining 30% of the business in the next 3 years. This acquisition allows us to advance the internationalization of Nacex in the Benelux, a country that has the largest number of European distribution centers while at the same time, providing the group with potential growth in pharmaceutical distribution and courier activities in the Netherlands, Belgium and Luxembourg. It also provides a platform from which to undertake a potential geographical expansion through other activities carried by the group. In September 2022, we announced the acquisition of 100% of the refrigerated and frozen food transport and logistic activities spun-off from the Spanish company, Grupo Carbo Collbatalle. Carbó has a network of 14 logistic platforms, operates a fleet of 57 tractor units and employees around 360 direct workers. It recorded consolidated sales of approximately EUR 47 million and adjusted EBITDA under IFRS 16 of EUR 11 million in 2021. With this acquisition, we have boosted our customer services offering by incorporating complementary controlled temperature activities fundamentally in the frozen range. This will allow Logista, which already has frozen range logistical capabilities for pharmaceutical distribution to build a strong footing in food distribution by offering a free temperature service to customers that need. The acquisition of 100% of the share capital of Carbó for EUR 51 million was closed in October 2022. So it will be consolidated in our accounts in the first quarter of fiscal year '23 and it is not consolidated in the figures discussed today. In June 2022, we announced the acquisition of 60% of Transportes El Mosca, a Spanish company specializing in refrigerated national and international transport for the food sector. Transportes El Mosca has a fleet of more than 1,000 vehicles, employees about 1,100 workers and has a network of 12 national, international operations, totally more than 50,000 square meters of warehouses. In '21, recorded sales amounted to around EUR 250 million, of which 60% related to the international businesses. Pro forma EBITDA in 2021 adjusted to the scope of the acquisition and to the IFRS 16 reached EUR 26.6 million. Through these acquisitions, Logista has expanded its services portfolio, bringing in complementary capabilities in control temperatures, such as the maritime transportation of refrigerated containers to the Balearic and Canary Islands or international markets as well as a groupage service specialized focus on the fruits and vegetables sector. The combination of the 2 groups' capabilities will also allow the generation of synergies with our international food [indiscernible] business, Logista's freight through the combination of premium outbound and inbound traffic. The agreement contemplates the purchase of 60% of the company's capital for EUR 98.2 million, which was paid in cash included and advanced earnout payment of EUR 50 million and the acquisition of the remaining 40% over the next 3 years. Pro forma net financial debt amounted to EUR 32.7 million. The transaction was closed in October 2022. So it will be consolidated in our accounts in the first quarter of fiscal year '23 and there is not -- and therefore, not consolidated in the figures discussed today. In short, corporate activities carried out in '22 as part of the strategy previously announced to the markets have allowed us to boost and complement Logista's portfolio of services, particularly in the following areas: In express delivery B2B by expanding time-critical delivery services for the health care sector from or to the Netherlands. In Maritime transport, through national and international reefer services for the food industry. Long-haul road transport by combining national and international premium flows since tobacco flows from Northern to Southern Europe, and horticultural flows from Southern and Southeast Spain to Northern Europe. In many cases, allowed efficiency improvements in requiring routes for both product types in frozen product logistics for the food industry. The total economic sales of this acquisition reached EUR 310 million in '21 accounting for 25% of Logista economic sales in '22. The progress in ESG has continued in this fiscal year and our efforts, which form part of Logista's strategy were recognized by some of the most reputable external sustainability raters. Some examples are set out below. In October, Sustainalytics concludes his second assessment of Logista by assigning to us and ESG risk rating of 13.7 million which signifies a low risk of experiencing a material financial impacts due to the ESG factors and an improvement from the previous 14.1 points. This improvement is significant since the risk assessment in '21 was already low and the potential for improvement is therefore limited. Despite this, we will carry on striving to reduce this is as much as possible. That rate in place us at #4 out of the 81 companies evaluated in the sector, Air Freight & Logistics. We are ranked #11 out of 365 companies in the broader transport sector. We continue to hold on AA score in the MSCI ESG ratings on top of the inclusion for the sixth consecutive year in the CDP A List for climate change and recognizing as a leader in supplier engagement also by the CDP. In addition, this year, we are again being recognized by the Financial Times as a leader in diversity, and we are still included in the FTSE4Good IBEX Index. Logista's operational performance in the fiscal year was very positive, demonstrating once again the resilience of our business model. This was combined with the company's solid financial position. These characteristics are the basis for the commitment undertaken by the Board of Directors when the company went public entitling a high payout percentage, in every case, about 90% of the net profit obtained. In addition to this commitment, the Board has demonstrated in the past its preference for maintaining a dividend which is stable or waning in absolute value. The Board has decided this year to propose to the General Shareholders Meeting, the distribution of a total dividend of EUR 1.38 per share, implying an 11% increase over last year. And now I give the floor to Pedro Losada so that he can continue with the business and financial review of the fiscal year. Pedro?

Thanks, Inigo, and good afternoon to everyone. Let's start with the financial review by country. Performance in Iberia was very positive, recording a 9.1% increase in economic sales, which brought the total to EUR 692 million. By activity, economic sales in tobacco and related products increased by 9.5%. The volumes of tobacco distributed in Spain and Portugal grew by 4.4% driven by the increase in Spain because of the normalization of the tourism and despite the retail selling price increase in tobacco products at the end of the last fiscal year. The added value services provided during the period an higher impact of the variations in the value of inventories because of the manufacturers price, increases supported the growth in economic sales in tobacco distribution. Besides the positive performance of Logista Retail, continued the double-digit growth rate trend of the previous years, boosting the improvement in economic sales in tobacco and related products. Higher penetration into points of sale mainly in tobacconist and Repsol and expansion of the customer base in the new channels were the key drivers. The economic sales from transport increased by 9.5%, growing double-digit in Logista Freight and Nacex and by a high single-digit in Logista Parcel. Economic sales in long-distance transport, Logista Freight, benefited from the increase in business and in activities in high-value sectors. In the courier business, Nacex recorded growth in deliveries and rate raises in the B2B business in line, which offset the reduction in the number of B2C e-commerce deliveries following the significant increase in the 2021 year. In addition to this, the acquisition of Speedlink in the second quarter of the fiscal year also boosted growth in economic sales. The growth in economic sales made by Logista Parcel was the result of the positive performance in deliveries for the pharmaceutical and food industries and the tariff update to reflect fuel prices. Logista Pharma continued to develop new services for customers, including among others, distributing medicines to patients' homes from the hospital and health center services pharmacies, managing logistics for raw and processed cannabis-related products for medicinal use, which require highly secure services and distributing veterinary medicines in accordance with the legislative change, bringing in new requirements for the distribution of medicines for animal use. The development of these new services and our commercial efforts allow us to expand the client base while increasing the business with existing clients more than offsetting the effect on economic sales of the significant fall in the volumes of medical supplies managed, particularly medicines that are critical to COVID-19 after the improvement in the pandemic situation. Total operating costs climbed 7.5% during the period and adjusted EBIT totaled EUR 154 million, rising by 15.2% on the previous year. Moving to Italy. Economic sales increased by 1.8% to EUR 331 million with a positive one-off effect of approximately EUR 5 million due to the change in value of tobacco inventories recorded last year. The year-on-year comparison base as this year, the net effect of the variations in excise taxes and retail selling prices of tobacco products was not material. Tobacco volumes grew by 3.3%, including significant growth in heated tobacco products, above 40%, while services rendered to manufacturers in all categories performed very well. Despite the negative environment factors, economic sales of convenience products grew double digit, helped by the wider commercial offer, sales force invigoration of the launch of new services designed for manufacturers as an evolution of our business model. The commercial efforts made to accelerate growth in the distribution of convenience products aimed at reaching new agreements for the distribution of leading beverage brands and disposable electronic cigarettes and also at expanding the customer base by entering new proximity channels resulted in double-digit growth in the economic sales of convenience products. Total operating costs increased by 1.4%, and adjusted EBIT rose 2.8% to EUR 101 million. Moving to France. The performance was negative and economic sales declined by 3.9% to EUR 217 million. The added value services provided during the period and the positive comparison based from the negative EUR 2 million one-off effect of the variation in the value of the inventories last year did not compensate for the 7.4% drop in tobacco volumes distributed. Now that cross-border mobility is normalizing. And therefore, the economic sales for the distribution of the tobacco were below the previous year figure. Economic sales from the distribution of convenience products and electronic transactions grew during the year recording a positive performance in the food and disposable electronic cigarette categories that mitigated the decline in products more directly related to rolling tobacco consumption, particularly rolling paper due to the sharp reduction [indiscernible] in roll your own volumes. Total operating expenses in France decreased by 0.3% resulting in adjusted EBIT of EUR 57 million, 12.5% below the figure obtained in 2021 fiscal year. Let's move now to the next section to explain a little bit further the consolidated financial results. The group's adjusted EBIT increased by 5% to EUR 312 million, supported by a positive business performance, the net positive impact of the inventory valuation differential and a limited rise in costs. The growth recorded by all activities in Iberia and Italy as well as convenience and e-transactions distribution in France, largely offset the decline in the activity in France and resulted in economic sales growth of EUR 55 million, up 4.7% on last year's figure. Of this increase of EUR 55 million, around EUR 3 million resulted from the year-on-year difference in the value of inventories. The remaining EUR 52 million increase being the result of the solid performance of the regular recurring operations. The 4.7% growth in economic sales resulted in 5% growth in adjusted EBIT and a 4.6% rise in operating expenses. The tariffs update following fuel prices variations and especially the customary efficiency measures continuously undertaken by the businesses resulted in a slight margin increase of 10 basis points to 25.3%. Reported EBIT grew at a faster pace than adjusted EBIT despite an increase in restructuring costs, reaching to EUR 266 million, 10.9% up from the EUR 240 million recorded last year, thanks to the higher contribution from fixed asset divestments and supported by a better performance of the results from the book distribution business. The sale of 3 nonoperating fixed assets located in Spain generated a total capital gain of more than EUR 14 million, which was EUR 12 million more than the capital gain obtained last year. The company's bottom line net profit grew by 14.3% as continuing operations performed very well, increasing by 9% and the impact of the discontinued operation, the divestment of Supergroup was EUR 8 million lower than in 2021. Regarding continuing operations, the rise in interest rates initiated by the European Central Bank in July 2022, mostly offset the EUR 4 million positive one-off impact last year due to the collection of interest of an excessive interim corporate tax payments in Spain during the fiscal years of 2017 and 2018. On top of that, the increase in profit before taxes as well as a corporate tax rate of 26.2% compared to the 25.8% translated into EUR 8 million higher tax expense. The 2 effects were offset by the increase recorded by reported EBIT. The EBITDA has grown by 3.5%, in line with the positive business performance to EUR 383 million and financial results contributed EUR 19 million to finance the EUR 123 million cash outflow from restructuring and normalized tax payments and EUR 21 million net investments, which includes the cash flow -- the cash inflow from the divestments of fixed assets and the cash flow -- cash outflow from the contribution to restore the balance between Supergroup's equity and capital prior to its sales on top of the recurring investment in the business. 51% of the gross investment was devoted to increasing capacity in growing businesses like Logista Pharma and Transport in line with the group's plan to accelerate growth. IT represented at 26% and was mainly dedicated as usual to support the development of value-added services and the improvement in operations to increase margins. The normalized free cash flow before change in working capital and effect of cutoff date on taxes reaches EUR 258 million, more than covering the payments for the acquisition of the 70% of Speedlink and the payments of dividends during the fiscal year. The change in working capital reached EUR 270 million. The significant increase in change in working capital year-on-year amounting to EUR 870 million reflects last year's normalization of the extraordinary delay of excise tax payment measures undertaken by some of the governments due to the pandemic in 2020. The free cash flow generation at the end of the fiscal year was EUR 580 million. Finally, the EUR 67 million collection of the reimbursement of the excess interim corporate income tax payments of fiscal year 2020 resulted in EUR 580 million generation of free cash flow. Company dividend policy stated during the IPO in 2014 is to pay at least 90% of the net income as dividend, split in an interim one of 1/3 of the total dividend paid for the previous year in the fourth quarter fiscal year and a final one in the second quarter of the following fiscal year. The dividend for 2022 will total EUR 183 million, EUR 1.38 per share, up 11% of the previous year, EUR 1.24 per share implying distributing 92% of the net income. As a consequence, our final dividend of EUR 0.95 per share will be paid during the first quarter of the 2023 calendar year. During fiscal year 2022, the share price moved EUR 18.2 to EUR 18.7 per share. This positive performance of 2.4% outperforms IBEX 35 and some other comparables during the period. Total shareholders' return during the year was 9.4%. And to end up with this presentation, let me give back the floor to Inigo for the final remarks. Inigo?

Thank you, Pedro. And in view of the current market situation, adjusted EBIT at the year-end 2023 is expected to grow about mid-single digit over adjusted EBIT of '22 taking into account of the foreseeable contribution from the businesses acquired, once they have been included in the consolidation scope. In line with Logista's strategic plan, the essential focus of which is additional growth and diversification of the existing businesses. The group continues to seek opportunities to acquire complementary and synergetic companies. Logista will continue to prioritize the same dividend policy applies today. Thank you very much.

Thank you, Inigo. I will read out now the questions received via the audio webcast platform since the results were released identifying the person who formulated each question and avoiding duplicities. The first question comes from Exane, Francisco Ruiz. Good morning. I just want a clarification on the outlook. You guided for at least mid-single-digit growth in adjusted EBIT, all inclusive. If we assume that the new businesses should add circa EUR 20 million of EBIT, this would mean a negative evolution for the existing business ex-acquisition. Could you confirm that? If this is not the case, could you give us an idea on how much EBIT could grow ex-acquisition? And another question is on your assumptions in terms of tobacco volumes given the possible impact of the economic recession in consumption similar to what happened in 2009.

Well, thank you, Gloria. This is Íñigo Meirás speaking. Francisco, thank you for your questions. We're -- regarding the outlook full year '23, there is growth above mid-single digit, including consolidation of the acquisitions taken into consideration. We are taking into consideration a similar performance of the organic business to the evolution recorded in full year '22. And as you can imagine, a conservative performance of the acquired businesses, while we are still landing in the companies. Remember that we start to [indiscernible] at the beginning of this October, and we signed the final agreement with shareholders of El Mosca last Friday a week ago. This conservative approach in any case is in line with our traditional guidelines. Logista is very happy with both acquisitions, and we are confident on the value creation that will bring to Logista. Regarding the second question about tobacco volume taking into account a possible economic recession in Europe, in '23. Well, as you mentioned the similar environment that we had in 2009, but if you remember the outcome of the results for Logista in 2009, in any case, Logista business model, so with at this time, the resilience on our business model. And our view for this coming year, even assuming a recession scenario is that I think that we don't see a major impact in tobacco volumes other than the current trend. And as you know, probably that we are always assuming a decline in volumes in Spain and in Italy something between [ 2% ] in volumes, not in revenues. And in the case of France, depending on the new tariff increases that we are considering probably the drop in volumes in France will be double that in the case of the Spain and the Italian market.

Next question from Barclays, [indiscernible]. Your fiscal year '23 EBIT guidance is above mid-single-digit growth, but El Mosca and Carbo acquisition should itself at EUR 27 million, EUR 28 million plus EBIT or high single digit to EBIT growth. Can you please help us understand the mid-single-digit guidance?

Okay. Gloria, I think it's a similar question to the previous one that I already answered. But in any case, I tried to be more specific in our expectations. We believe that altogether, the year-on-year variation of the adjusted EBIT figure could be close to the high single-digit growth. Reality is that we prefer to say about mid-single-digit growth, and as I said before, taking always into account that we prefer to be conservative when we share with you our guidelines for the year. .

Other questions from Pallav. Earnings per share growth will be 5%, 6% ahead of EBIT growth due to higher interest income on Imperial Brands cash arrangement due to higher interest rates. Is that a fair assumption?

Okay. Thanks, Pallav. I take this question. It is a fair assumption depending on the numbers that you are handling. Just to put an example, based on the agreement that we've got -- and I remember the loan agreement that we've got with Imperial with a limited amount of EUR 2.6 billion and with a return of our reference rate, which is nowadays in 2% plus, 75 basis points margin. Based on that and the movements of the interest rates in the future, if you take into account, an average cash amount of around EUR 2 billion, a 1% increase could end up with this around 7% EPS impact after taxes. So your assumption is close to be fair, yes. .

Next question from JB Capital, Miguel González. Spanish government seems willing to force the sales of some vaping products through regulated shops. How do you think this could impact your economic sales? And do you think there could be a similar action in France or Italy? And how could this impact your volumes?

Okay. Miguel, Inigo speaking again. Regarding the Spanish market and the possibility that the Spanish government force to sell some vaping products through the tobacconists. I think that, first of all, this is only a draft, and we don't know exactly what happens at the end. If something happens, we are assuming that this new regulation will come definitely on his final version by the second half of next year. And in any case, we don't see any negative impact for -- in our numbers, okay? And if something similar can happen in France or in Italy? Until now, as far as we know, there is not any draft of a new regulation regarding this new vaping products in Italy or in France. But our view in any case is that it doesn't matter for us it is a regulated and the only way to acquire the products through the tobacconist. This is not negative or positive for Logista. This is neutral or if something, a little bit more positive than negative.

Next question from [indiscernible]. Hello. If you have the opportunity to acquire a tobacco logistics business in Northern Europe, would you consider it?

I think that we are open to consider any opportunity looking for growth. But as you know, and we remain with the same strategy. We prefer to be focused in nontobacco growth opportunities.

Next question from [ CaixaBank ] Andre Fernandez. What are the expected tobacco volumes for fiscal year '23 and price increase in each region.

Okay, Gloria. In terms of tobacco volumes for '23 is that -- after the last 2 years, with the COVID impact, I now think that -- we believe that we are back to the normal trend. And I think I already answered this question to one of your colleagues is that we -- you can expect a decline in volumes in Spain and in Italy around 2%. It's a similar trend in Spain and in Italy. And in the case of France, I think that we consider a decrease in volumes probably at least around 4%. Like that we are considering an increase one more time of taxes -- prices of tobacco in France, but we are not expecting increases in prices in Spain, neither in Italy.

Next question from Kepler Cheuvreux, Pablo Cuadrado. Can you please help us to understand which would be the net cash position of Logista, excluding the cash linked to tobacco tax collection at the end of 2022 and or alternatively, which is the level expected just considering the announced acquisitions?

Thanks, Pablo, for the question. Well, we do not differentiate cash with or without tax collection. We just use 1 account and well, cash position for the organic and also as we have demonstrated in this fiscal year for the inorganic growth.

Some top-up questions. Can you help us which is the group's adjusted EBIT margin expected for 2023 at group level? 25.3% last year once reflected the acquired transportation assets. Looking to the current Euribor references, which is the expected rate of return expected for the credit line available to your leading shareholder for 2023.

Yes. Thanks, Pablo. Well, we are not giving guidance on the margin evolution for 2023. With respect to your second question, I think that I partially answered before, but just to give you simple math, we don't know how the interest rates will evolve. But if you assume EUR 2 billion cash as an average for the year, a 1% increase would mean around EUR 20 million gross, around EUR 15 million net impact on the net profit.

Next question from Banco Santander, Joao Safara. What is the expected CapEx excluding acquisitions for 2023? And what was the average cash position during 2022 and minimum/maximum levels through the year?

Thank you, Joao. The CapEx we are expecting is slightly above what we have to -- in 2022, but very, very similar to the CapEx that we have expensed during this year. In relation to the cash position, the average cash position has been around EUR 2.3 billion. The minimum cash position -- the minimum cash, that we have had, has been EUR 1.5 billion and the maximum has been EUR 3.1 billion in 2022.

Next question from [indiscernible]. Could you provide an indication of the goodwill related to the recent acquisitions?

Thanks, [ Juan ]. What we can provider as of today is the outcome of the audit performed by KPMG on a Speedlink, ending up with a PPA and a goodwill of spilling of EUR 11.6 million. For the other acquisitions, El Mosca and Carbo, we have another 12 months to close the final goodwill amount. Thank you.

Next question from Societe Generale, Patrick Jousseaume. What is the adjusted EBIT of the acquired companies, please? Why do you focus on EBITDA when the key metric for the group has always been adjusted EBIT?

Yes, we have been providing the audit numbers of the companies including the EBITDA. Still the adjusted EBIT the main metric that we focus on. But once we enter into the companies, we could make these adjustments, including IFRS 16 and other adjustments to end up with the metric that keeps on being the main one for Logista.

Next question from Exane, Francisco Ruiz. What are the acquisitions payments are included in Q4 '22 net debt? What is the firepower you have for now to do further acquisitions?

Thanks, Francisco. Well, the answer to your first question is none. I mean, there has not been acquisition payments other than Speedlink, during fiscal year 2022, and that has been the outflow of EUR 15 million. With respect to El Mosca and Carbo, those transactions has been paid and signed in Q1 '23. I remember that the amount has been EUR 51 million in Carbo and EUR 98 million in El Mosca. And with respect to your second question of the firepower, a few months ago, was stated from the company that we had a firepower of around EUR 700 million for the next few years. The better answer that I can give to you now is that we remain the same in terms of the firepower capacity even after the acquisitions that we have done during this year. Thank you.

Next question from [indiscernible]. Could you please remind us of the agreement for the credit line with Imperial Brands? When is it due for renewal? Do you expect any changes in the terms now that interest rates are rising.

Okay. Thank you, Alvaro. The agreement today, as I mentioned before, it's a loan agreement between Logista and Imperial Brands up to an amount of EUR 2.6 billion. The financial conditions and the return that Logista received is a reference rate, which is nowadays in a 2% level plus a margin, which is as stated in 75 basis points. This agreement is due in June -- until June 2024. And with respect to any changes in the terms, we are not expecting changes as of today, but it's a matter of also the position for Imperial. And once we are entering to the negotiations with them, nothing that we are expecting different today.

Next question from Societe Generale, Patrick Jousseaume. Good amount of minority interest in the P&L, should we expect in 2023, given you do not have 100% of the companies acquired.

Sorry, Patrick, we are not providing any impact on the net profit for 2023. So we cannot give a guidance on that. Just as a reminder, the only one that has minority interest is a little one in spilling and the remaining 40% for El Mosca. But sorry, bear with us, we are not giving guidance with -- on 2023 on this. Thank you.

Next question from [indiscernible], has somehow been answered, but there is a slightly different. Are you negotiating the terms of the credit line with Imperial. Will Euribor 12 months be a better reference than the deposit rate set by the European Central Bank?

We are not yet negotiating the terms of the credit line with Imperial. As I mentioned, the maturity of this contract ends up in June 2024. So we will start negotiation sometime probably during next year. But with respect to the reference, it depends on what do you think. Over the last few years, the reference that we have had has been a good protection as well. We will see afterwards, which is the appropriate one and the one that we can negotiate because remember there is 2-party negotiations, both need to be in line, could be the same reference or the one that you are mentioning. Thank you.

Next question from Banco Sabadell, Ignacio Romero. Sorry to insist, but the guidance for 2023 is still not clear to me. So please could you clarify what organic growth excluding acquisition is included in the guidance?

Well, thank you, Gloria. But I think that I already answered that question. And what we are saying is that you can expect a similar performance in our organic businesses, okay, to the evolution of [indiscernible] that we finished last September 30. And I say that you can expect above mid-single digit or high single-digit growth and the difference between this similar performance of last year for organic growth and the new outlook is the contribution of the new companies to the EBIT for this coming year.

There are no more questions other than some that have been already answered. But I would like to remind you that you can contact Investor Relations for any further questions you might have. Thank you very much for joining us today.