Ricegrowers Limited (7H0.F) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the SunRice Group's FY 2022 Half Year Financial Results. [Operator Instructions] I would now like to hand over to the conference call host, SunRice CEO, Mr. Rob Gordon; and the company's CFO, Mr. Dimitri Courtelis. Please go ahead.

Thank you, and welcome to -- everyone to this morning's call. We appreciate you taking the time to join us following the release of the financial results from our first half of financial year 2022. My name is Rob Gordon. I'm the CEO of SunRice, and I'm joined today in Sydney by our CFO, Dimitri Courtelis. Our plan for today's call is to provide an overview of our financial results, then open for questions to all participants who have dialed in. Along with yesterday's announcement, we've also launched an investor presentation on the ASX, which I'd encourage you to read for more details on the results. I'll start today with some high-level commentary before handing over to Dimitri. The results announced to the market yesterday demonstrate a strong improvement in earnings, driven by the return of rice in the Riverina, a progressive turnaround in the performance of key Pacific markets and the accretive contribution of recent acquisition, KJ&Co Brands. After successfully navigating one of the most difficult periods in our history with the dual challenges of COVID-19 and 2 consecutive years of extremely low rice production, it's pleasing that we are now seeing a strong recovery in financial performance. Despite the challenges of the past 2 years, we continued making investments in strategic and organic growth initiatives, and a number of these are now realizing benefits. We anticipate that in the second half of financial year 2022, the rebound, which commenced in the first half, will accelerate. However, there are ongoing global supply chain challenges. Given the improved financial performance and outlook for the remainder of the year, we're pleased to have declared an interim dividend of $0.10 per B Class share. We've also updated the estimated range for the CY21 Rice Pool currently being processed and marketed, and that range has increased to $405 to $435 per tonne for medium grain Reiziq. This is despite the Australian Rice Pool being expected to absorb at least $40 per tonne of unplanned freight costs on a full year basis. SunRice also made further progress on executing its sustainability strategy in the first half of financial year 2022, including climate scenario planning as part of our commitment to adoption of the task force on climate-related financial disclosures recommendations. I'll now go into the results in a little more detail before handing over to Dimitri to step through our segment performance. As we reported yesterday, EBITDA and net profit after tax were $36.9 million and $16.7 million. This is higher than the prior corresponding period, up 32% and 38%, respectively. And these improved earnings were underpinned by an 11% growth in top line revenue to $564.8 million. A range of factors enabled the improvement in this financial performance. Firstly, our Australian Rice Pool business has been able to absorb its share of overhead costs as a consequence of increased crop of 417,000 paddy tonnes harvested earlier in 2021. This larger crop underpins the return of larger volumes of Australian rice to premium export markets across the Middle East and Asia in the first half. In contrast with the past 2 years where those markets were serviced from the International Rice segment. It also lowered the cost base of the Rice Food segment, which relies in part on rice byproducts from the pool. There was also continued positive performance of our International Rice segment, reflecting the group's multi-origin strategy and deep understanding of the consumer preferences, which enable the offering of high-quality products for each of our brands at multiple price points. This sourcing expertise, coupled with nimble commercial initiatives to adapt to market conditions and cost containment discipline delivered improved profitability in Pacific markets. We also had an accretive contribution from the recently acquired KJ&Co Brands in the Riviana Food segment and the organic growth in its Always Fresh Fehlbergs and Roza's Gourmet brands across most categories through innovation and increased ranging with our retail partners. There was upturn in performance in the Rice Food segment, particularly in microwave products, where SunRice gained market share supported by initiatives such as the relaunch of the "Our Best Yet" microwave pouch range. While performance has improved positively, there has been a number of challenges that the group has managed. While improvements in seasonal conditions in Australia benefited the group as a whole, these conditions and a range of other factors, including operational challenges, contributed to a slow recovery of the CopRice segment in the first half of 2022. And there are a number of other global challenges, including the ongoing effects of COVID-19 on the economies of countries dependent on tourism, with decimating effect of the prolonged lockdowns on the food service sector in New South Wales and Victoria and the pervasive disruption to the global shipping industry, inflationary pressures on manufacturing inputs and labor shortages in certain regions. Shipping, in particular, has proved a major challenge with impacts on availability of containers, scheduling issues and unprecedented escalation in freight charges of more than 1,000% in some cases. As a result, SunRice now expects to incur at least $30 million in additional and unplanned freight costs on a full year basis at group level in this full financial year. And with that, I'll now hand over to Dimitri to discuss each of our business segments, and then I'll cover off on our outlook before taking your questions.

Thank you, Rob, and good morning to everyone joining us on the call this morning. The first segment I will discuss is our Australian Rice Pool business, which is aligned to our A Class shareholders and deals with the receival and milling, marketing and the selling of Riverina Rice. Improved water availability at lower prices resulted in a 417,000 crop that was harvested in 2021, which was almost 10x the size of last year's crop of only 45,000 tonnes. This supported a strong increase in revenue to $89.9 million and saw our Riverina mills ramped up in the first half of this year, providing positive employment outcomes. The larger crop has underpinned the return of Australian rice to premium export markets across the Middle East and Asia in the first half. While these markets were primarily supplied from the International Rice segment in the last 2 years during the drought. Return of Riverina rice also delivered benefits to CopRice and Rice Pool segments as they rely in part on inputs and byproducts from the Rice Pool. The Rice Pool was once again able to absorb its overheads and will deliver a naturally determined paddy price this year. Now this contrasts with the Rice Pool losses incurred in the last 2 years, with this upside to become more apparent in the full year results as $19 million of the $22.1 million loss in the Rice Pool segment in FY '21 was incurred in the second half of last year. As Rob highlighted, the paddy price range for the C '21 crop has also been upgraded despite a range of volatile factors. I will now move on to our International Rice segment, which sources, processes and markets rice to global markets as well as into Australia when varieties cannot be grown here or when supply is low. Revenue was $253.7 million, down on a $271.4 million reported in the prior corresponding period, with net profit before tax in 2 million (sic) [ $12.2 million ] and EBITDA of $16.8 million, both up from $7.9 million and $13.5 million in the first half of FY '21. The return of key premium markets to Australian rice in the current year and the nonrepeat of government food security initiatives at the onset of the COVID-19 pandemic in the prior period, drove a decrease in the volumes and the revenues in the first half of this financial year. Strong brand performance and a range of successful initiatives to grow sales, increase prices and contain costs in the key Pacific markets as well as the segments continuing to successfully build on its multi-origin, multi-market focus and capability led to improved profitability. In total, the segment sourced from 9 countries to supply 34 destination markets. Difficult economic conditions in part due to COVID, unfavorable foreign exchange movements and aggressive competition, however, continued to hamper revenue and profitability in the key Pacific markets. The rapid disruptions to global shipping and the escalation in freight rates also put further pressure on margins. International Rice continues to deploy strategic initiatives in the first half. And with global supply chains fully operational, the segment is prime to focus on further expansion as part of our overall multi-origin, multi-price strategy. Turning now to our Rice Food business, which manufactures, markets and distributes value-added rice products. Revenue was $53.8 million, up from $48 million in the first half of last year. Net profit before tax increased from $0.2 million to $2.6 million, and EBITDA improved from $1.5 million to $3.5 million. Greater availability and lower cost of Australian rice used as an input in a number of the segment's products contributed to the performance uplift in the first half of this financial year. Innovation and quality improvements resulting from our recent $4.5 million investment in new cooking technology in Leeton also underpinned volume and sales uplifts in the microwave rice category. Our local manufacturing capability also meant that several categories were able to take advantage of a number of out of stocks from competing private label products sourced offshore for part of the period. The segment also benefited from new product launches for the last year, while the prior corresponding period was hampered by their launch costs. To ensure these benefits can be cemented in the longer term, the segment remains focused on identifying and executing strategies that will improve efficiencies, take costs out of the business and further support innovation. In Riviana Foods, our Specialty Gourmet and Entertainment Food business, revenue has improved significantly from $64.5 million in the prior period to $97.3 million, while net profit before tax has increased from $3.9 million to $5.8 million, and EBITDA has improved from $4.2 million to $6.7 million. The significant uplift in performance has been driven primarily by the accretive acquisition of KJ&Co Brands and demonstrates the scale and the impact of that purchase. KJ&Co Brands contributed $34.4 million in revenue in the first half of FY '22, while its net profit before tax contributed $3 million. Also in the segment, there were strong brand performance across most retail categories, including Roza's Gourmet, Always Fresh and Fehlbergs, fueled by higher demand for in-home entertaining during COVID-19. Roza's Gourmet Products accessed mainstream retail for the first time via Woolworths in that period, which is expected to provide future growth opportunities. Riviana continues to face challenges, including the ongoing contraction of the food service sector and the disruption to local and global supply chains, which periodically impacted availability of some of the products and put pressure on margins due to freight costs. Internal one-off restructuring costs were also incurred as part of the streamlining of some of the local manufacturing operations in that segment. The strong results achieved in the short time since the acquisition of KJ&Co Brands and Roza's Gourmet demonstrates Riviana's ability to successfully integrate and scale acquired businesses while leveraging its brands, its marketing expertise and the supply chain partnerships. On CopRice, despite gains in companion animal sales and favorable product mix, a range of factors continued to hamper profitability in our animal nutrition business in the first half of FY '22. Top line revenue was up from $53.1 million in the prior corresponding period to $68.5 million. Our net profit before tax and EBITDA improved from the first half of FY '21. There were still a loss-making territory at minus $4.5 million and minus $2.2 million, respectively. Favorable pasture conditions continue to contract the supplementary feed market in the first half, resulting in aggressive price competition and under recoveries in CopRice's feed mills due to low volume throughput. COVID-19 disrupted the supply chain of ingredients and containers for CopRice's New Zealand mill, while Australia's state border restrictions delayed the commissioning of the Leongatha feed mill in Victoria. CopRice faced some commercial challenges during the transition phase to integrate its mill in New Zealand, which is delaying the realization of the full potential of this investment. The segment also experienced other operational challenges, including production capacity constraints due to the growing complexity and diversity of CopRice's product portfolio. However, positive signs included the expansion of the profitable companion animal division, the reopening of the FeedRite facility in Wangaratta, which is supporting the fast-growing pet food business and the greater availability of cheaper Australian rice byproducts. Despite the multiple challenges experienced, CopRice continues to pursue its growth initiatives, led by a new leadership team, which it intends to build its multi-region presence, with a focus on mill proximity and operational excellence to accelerate the turnaround and to reduce costs. Finally, turning to the corporate segment, which captures the income and the cost of holding and financing assets that are used by both the Rice Pool business, represented by A Class shareholders and the profit businesses represented by B Class shareholders. Net profit before tax for the period was $5.1 million, down from $9 million in the prior corresponding period, while EBITDA was down from $14.8 million to $12.1 million. The return of Riverina rice in the first half delivered higher levels of brand and asset financing charges from the Australian Rice Pool, which in contrast to the 2 previous financial years, were fully absorbed by the Rice Pool business. This provided a significant uplift in B Class shareholder returns in the first half. Asset financing charges were $6.5 million, up from $6.2 million in the prior period, with brand charges at $2 million, up from $1.3 million. The overall profitability of the segment was, however, impacted by a general increase in overheads to support the execution of the group's 2024 growth strategy and a review of the central cost allocations to ensure the various businesses of the group remain competitive when pricing in market. I will now hand back to Rob to cover our outlook for the rest of this financial year and beyond.

Thanks, Dimitri. As I mentioned earlier, we expect the performance in the second half of this financial year will accelerate through the remainder of the year despite ongoing supply chain challenges. We'll continue to look for synergies with our recently acquired businesses, so they can deliver additional benefits and contribute positively to consolidated earnings. The significant and rapidly escalating disruptions to the global shipping industry caused by the COVID-19 pandemic and other factors in the first half are expected to continue into the second half. And the group continues to monitor a range of other factors that have the potential to impact the scale of the recovery in full year revenue and profitability, which includes strong pasture conditions in Eastern Australia and a range of operational challenges, which are hampering the pace of CopRice's recovery in the short term. Now despite these global challenges, we are pleased that the recovery in the Rice Pool business is supporting an update to the estimated range for the CY21 Rice Pool to $405 to $435 per tonne for the medium grain variety called Reiziq. As we look forward to financial year 2023, with planting now concluded, the next Riverina rice crop, which is to be harvested from March 2022, is expected to be in excess of 600,000 paddy tonnes, could make it the largest in 5 years if long-term average yields are achieved. This larger volume of Australian rice will underpin the Australian Rice Pool's exports to premium markets in the financial year 2023, which is expected to support positive returns to our A Class shareholders and growers. And the increased availability of Australian rice should also continue to build momentum for the rest of the group and deliver incremental benefits to B Class shareholders. Based on the return to more favorable conditions, the group intends to continue to execute its 2024 growth strategy with a focus on new merger and acquisition opportunities, new product initiatives and various capital projects to support greater diversification and resilience. Thank you. I'll now hand back to the operator.

[Operator Instructions] Your first question comes from Allan Franklin with Canaccord Genuity.

Just a couple of questions, if I may. Perhaps the first one, just on CopRice, if you could provide any sort of color on this -- the shape of earnings that we might be able to expect just given byproduct coming back into the business and perhaps any sort of change in outlook of conditions for that business?

Sure. Thanks, Allan, and thanks for your comments. With regards to the CopRice's performance, perhaps we'll split it in two. I'd like to just talk to some of the things that I think have impacted the business and may change, and then I'd like to throw it to Dimitri for some specific commentary on New Zealand assets. I think it's apparent to most of the very good seasonal conditions for pasture, which you've seen amongst the wetter summers on record, spring and summers has seen phenomenal pasture conditions in most of the key areas that we normally sell our complementary fee into growers. You had a couple of years of drought and therefore, very high input costs for dairy cattle, beef, sheep, et cetera, and who have -- who would actually at the beginning of the drought being paying a lot for feed. I think have welcomed the opportunity to not have that particular input cost because they can put their livestock out to pasture. We think that's somewhat overdone. We'd argument for a number of those producers to continue to feed complementary feed, but that's a farm-by-farm proposition to make that argument when there's plenty of free feed as you can see from their farm window. So I think that's really crimped the opportunity to see sales volumes go up. And in fact, it has put a lot of pressure given that there's a good deal of capacity in the industry, a lot of pressure on margins as price competition is sought to those farmers who are still leading. Clearly, that is an unusual set of circumstances off the back of drought, and we would expect more normal conditions to prevail, and I'm certainly not looking to try and embrace further drought conditions, but I think it returns to more normal conditions where, particularly in the summer period, pasture dries off and complementary feed is a natural go to would see our earnings recover. So I think there's a lot of feed being cut. There's a lot of feed still available out there. And I think we're probably going to see that drag on performance in the second half. And I might throw it over to Dimitri with regards to some of the integration issues, et cetera, that have also in this first half result.

Thanks, Rob. Good to hear from you again. So if we just look at a couple of areas in CopRice, the CapEx expansion in our Leongatha mill took slightly longer than expected due to COVID. Now we only spent up to $6 million on that acquisition and the CapEx upgrade, but we were hoping to get that operationalized a lot quicker than it ended up being because it's just difficult to get to that mill. So hopefully, with that behind us now, we can then accelerate that going forward in the next period. With New Zealand, shipping costs increasing, made it expensive for us to move ingredients from Australia to New Zealand. It's one of the quite busy and quite expensive channels in the wider shipping program. So that hampered the ability to get some margin growth in New Zealand. And then with the operational and the CapEx upgrades in New Zealand being delayed again due to COVID, that's delayed the business program that we had envisaged in the first year of owning those operations. So a bit of teething issues and challenges over there, but we expect that to be behind us, and we'll grow that moving forward and look to update this more positive results going forward.

I think Allan, as I think about the recent acquisitions in the CopRice business, clearly, what we've done at the low part of it is to buy strategic assets in the right areas at what actually appear to be very attractive asset valuations. What we're seeing is a little bit of a attracted period of good pasture conditions, which is delaying us being able to fill that fresh capacity. So we have an overhang of capacity in this circumstance that should be filled much more easily as conditions improve. And that also relates to the investment we made in the byproducts, which is another part of your question. You'll recall, we invested in a rice brand stabilization plant, which we spent close to $11 million installing just as a rice byproducts. Actually, they're no longer available. Clearly, those byproducts are now available, but then we need to persuade and do trials with customers to convert them over to that ingredient and the inability of our technicians to travel to a number of different customers to do pilot plant trials and also those customers not allowing, in many instances, people from other organizations to visit their sites due to COVID restrictions. It's meant that converting people across to that ingredients have also been delayed. So seeing in these results, again, not just the cost of the additional dairy capacity fully utilized, but also the cost of that rice brand plant weighing on the result without necessarily return coming through just yet. We do expect, however, that with the lockdowns ending as they are, we're now getting into customers, able to work with development teams to get our ingredients incorporated into their products. So I think it is just a matter, as we say in the announcement about the sort of the pace of the recovery rather than whether there will be a recovery.

Yes, sure. No, that is helpful. Perhaps one more question for me. Just -- and we're fairly broad in nature, but just thinking about the branded conditions in the markets, mostly sort of in retail, Coles Myer and the like, but just in terms of how you're finding competition changes to prices, whether it's inflation and/or shipping costs related? And yes, I guess, how you sort of finding -- is there a snapback of sort of mix in the food service channels in recent months? And how are you sort of feeling about that sort of branded side of the business more broadly, I guess?

Yes. So I think given the sheer scale and nature of the various challenges, particularly -- and particularly around supply chain in this first half. We're pleased to see the level of recovery. And I think it talks to the strength of our brand in many markets. On the shipping front, I mean, quite frankly, the shipping situation is chaotic. And I've never seen anything quite likely, but I think it is unprecedented. And whilst we called out a 1,000% increase in some of the freight legs, 500% is pretty much the norm across the various shipping freight legs. And when we talk about shipping from 9 different countries, clearly, all of the things that we're seeing an enormous amount of cost, and we're anticipating more than $30 million of additional costs versus what we had anticipated in this year just in price escalation in the shipping side, which we've had to recover. The -- obviously, our retail partners are always very good at representing their own shareholders and consumers when we approach to be able to pass some of those costs on, and they're very deliberate and conscientious with regard to assessing that level of cost, but we have -- and therefore, usually there's something of a lag in take -- in the price we take or offer up. [Audio Gap] Okay, executed. We are pleased to have worked with the retailers to have passed on a number of costs, and therefore, we should expect to see those flow more fully in the first half because that lag has now worked its way through. The strong branded demand, certainly on the KJ&Co side, I'd argue that we've seen -- we've got Belgian waffles and pizza bases, et cetera, in the portfolio, and people locked up at home, it tends to increase demand. And certainly, demand has remained strong for our branded rice products. And we've seen a little bit of a windfall on the microwave pouch side where supply chains, the retailers tend to use product that is imported, and therefore, they've seen the same sort of delays and disruption that we see on our exports. They've seen on their imports. And as a consequence, we've seen an uptick in our microwave pouch business. Also combined with the fact we've got an improved process that really delivers a great place in products. So that combination has really worked well for us there. I think on the food service side, in the first half, we haven't anticipated the 3-month lockdown in New South Wales, so that's weighed on us. But yes, we are seeing -- I'm not sure I quite described it as a snapback. That's certainly a significant uplift as the trade restocks ahead of the festive season, and we see the food service market open up. So we believe that all things being equal, I don't want to call the second half from COVID because it keeps surprising. But we expect to see the food service sector sort of rebuild itself in the second half, and that should help us.

[Operator Instructions] Your next question comes from Craig Haskins with Eastern Hill Advisors.

Just a very quick one. Just can you just give a bit more color around the comment around M&A? And then also, obviously, gearing is going to come down from the 2.3. So how do you sort of see potential sort of M&A capacity? And is there a sort of a thinking around sort of debt versus equity in that strategy?

Yes. Perhaps, again, I'll share the answer with Dimitri. We exited last year having spent a reasonable amount of money on KJ&Co Brands and the acquisitions in the CopRice segment. And the leverage at the year-end, therefore, reflected all of the debt because obviously, calculated at the point in time, but the EBITDA was only a few months' worth. So therefore, our leverage went up to close to 3%. What we've seen as we hit the half year is that we've actually had a half year of EBITDA from these businesses, still got full year debt in the number, of course. And we also see working capital climb as we -- in that first half as we received a crop and paid for the working capital associated with it, which obviously had an impact on increasing the debt. So we're pleased that the leverage number has come down the way it has, and we would -- all other things be equal, expect to see that drop still further during the second half. Gearing has remained well within our target range. And on the M&A side, therefore, we still think we have ample dry powder. We've got good debt headroom, and we've got leverage rattling off because it's largely high as a consequence of that timing issue. So we'd expect to be able to use our balance sheet for bolt-on acquisitions and increasing in scale. If you look back over the history of probably the last 3 years, we had a couple of very small acquisitions where we sort of proved out the -- and they muscle the ability to integrate, and we gradually scaled up to the KJ&CO being the largest acquisition we've made. You should expect to see us investigate acquisitions of a similar sort of scale and larger over the course of the coming period, but with a very strong discipline to make sure that its earning is accretive, and it's absolutely on strategy with regard to the particular segment that we might look to require within. Dimitri, do you want to make a few comments about perhaps sort of our equity and debt ratio into the future?

Yes, sure. So obviously, getting that balance between debt and equity is going to be key moving forward. But when you consider the environment in the last 2 years with the pricing we've been able to get away, particularly with interest rates. It's enabled us to go after those acquisitions funded via debt in the context of things because -- so when you consider our daily yield and anything between 5% and 8% over the last few years, it's actually quite expensive when you compare that to debt. So fortunately, we've funded via a pretty low interest rate regime at the moment. But as I said, we'd like to obviously get that mix and that balance back into the picture going forward. So we feel we're getting ready and we're quite primed with that shape up. And to Rob's point, with leverage coming back to 2.3, again, underpinned by those acquisitions. And good to see the accretiveness of EBITDA coming through, particularly from KJ&Co Brands and some other exciting opportunities on the radar.

I think what you'd expect us to see, Craig, is -- what you'd expect to see is that when you have a look at the KJ&Co Brands, it sort of is a diversification away from the ag cycle exposure to an extent. I mean, we've managed to find other exposures. We're buying what was out of volume. But nevertheless, it's sort of -- it doesn't have the cyclicality. And therefore, we expect it to underpin our earnings in a nutshell to a much more stable extent than perhaps some of the volatility we've seen in some of our more ag exposed sectors. So expect to see us investigate acquisitions that provide more stability of earnings branded. And they're the sort of things you'd expect to see us bring in to the portfolio, and we are active. I think it's no secret that what we're looking to do is to accelerate the business through both organic and acquisitive growth and use the debt headroom we have and when we run out of debt headroom, then that will hopefully lead us to being able to tap the equity market. It's part of the reason we went to the ASX in the first place, bring some liquidity into the register and therefore, give us the ability to -- for this to be a long run strategy of acquisitive not just a short-term thing.

And hopefully, with the introduction of the interim dividend on the ASX, that's sending a strong message to the market with branded retained earnings in our business, moving away from the ag cycle and into the place of more consistency of earnings going forward. So pleased to have made that announcement yesterday as well.

[Operator Instructions] There are no further questions at this time. We have a question from Ian Hardy with Private Portfolio Managers.

It's a great result. Just a quick question on Riviana. So when I back out KJ&Co, the margins for the existing business seem to be under pressure. Is that correct?

Yes, that's right, Ian. When you consider the exposure to food service, particularly over the last period, primarily driven by COVID, all restaurants and et cetera, being shut and the inability to drive further growth in that sector has dampened the results on the stand-alone revenue business. But when you look at the complementary of that portfolio coming together, we feel that the business is prime to bounce back and once food service reopens, which -- we're seeing those positive signs starting to occur in order to make up that difference going forward, but primarily driven by that slump in food service.

Yes. And I think I'd add to that. Some of the -- I mentioned earlier, the effective the cost, the inflationary cost pressure, we're shipping an awful lot of products. The Riviana business looks for this real provenance positioning of getting olives from Southern European clients where we can get the best possible product. But of course, what it means is that it's quite heavily exposed to this current shipping issue. So as the shipping costs hit, we then sought to pass that on to the retail customers, and there's always a bit of a lag. So that in combination with that food service sector being quite badly down, and that's a fair chunk of the business. It's not quite half of the business. We're pleased that the real underlying result has held. And in part, that's not just the KJ. It's actually the Roza's Gourmet business starting to really come through as we get fresh listings, as mentioned in the narrative earlier was fresh listings in Woolworths, et cetera. And again, you should expect to see some of these branded businesses that we have that were listed in the independents, gain increased listings in the majors and therefore, start to scale the revenue from those acquisitions as well.

There are no further questions at this time. I'll now hand back to Mr. Gordon for closing remarks.

Thanks, operator. Well, look, on behalf of myself, and I'm sure, Dimitri, thanks again to everyone for joining this morning's call and for your interest in the business. We really appreciate you taking the time. And if I may just wish everyone on the call, a really Merry Christmas, and let's hope next year has less negative surprises than the last 2 years, and we can actually see some sort of return to normalcy. But Merry Christmas to everybody on the call. Thank you.

That does conclude our conference for today. Thank you for participating. You may now disconnect.