Robinsons Retail Holdings, Inc. (RRHI) Earnings Call Transcript & Summary

Well, good afternoon, everybody. I am Gina Dipaling, the company's Investor Relations Officer. Thank you for joining us today to review RRHI's unaudited results covering the third quarter and 9 months of this year. The panelists for this call are our President and CEO, Ms. Robina Gokongwei-Pe; our CFO, Ms. Mylene Kasiban; the Managing Director of the Supermarket business, Stanley Co; the General Manager of DIY and Pets, Mr. Ted Sogono; the Group General Manager of Robinsons Department Store and Toys ‘R’ Us, Ms. Celina Chua; the General Manager of our CVS business, Suresh Ramalinggam; the Group General Manager of the Appliance segment, Mr. Jovy Santos; the General Manager of GoCart, Ms. Edna Belleza; and the Senior Adviser for Corporate Finance and Strategy of the Gokongwei Group, Mr. BJ Sebastian. This presentation will cover the company's financial performance in 3Q and 9 months of this year and some recent company developments. A brief question-and-answer session will follow after the formal presentations. [Operator Instructions]. With that, I'll turn it over to our President and CEO, Ms. Robina Gokongwei-Pe.

Good afternoon. Here are the highlights of our consolidated results for the third quarter of 2022. Consolidated net sales grew by 19.3% to PHP 44.7 billion. Blended same-store sales growth of 15.1%. E-commerce sales accounted for 3.2% of total sales. 120 bps gross margin expansion to 24%, 50 bps EBITDA margin improvement to 9.1%. Net income attributable to equity holders of the parent company rose by 60.8% to PHP 1.7 billion, while EPS increased faster by 66% to PHP 1.13. Store portfolio of 2,261 stores and 2,111 TGP franchise branches nationwide. Robinsons Retail store count stood at 2,261 as of September 30, composed of 311 supermarkets, 957 drugstores, 219 DIY stores, 50 department stores, 433 convenience stores and 291 specialty stores. We also have 2,111 franchise stores of TGP. Serving as fulfillment centers for our store network, our e-commerce operations is complementary to our store network. GoCart, our [ delivery-only ] commerce site, currently has 14 banners in the platform. RRHI continued its strong performance, posting net sales growth of 19.3% in the third quarter and 16.7% in the 9 months to PHP 44.7 billion and PHP 127.1 billion, respectively, with both surpassing pre-pandemic levels. Most formats contributed double-digit growth rates in the third quarter and the 9 months. Improved sales were driven by 15.1% and 11.8% SSSG in the third quarter and 9 months, respectively. In turn, SSSG was largely underpinned by better mobility, revenge travel, back-to-school trends and return to on-site work, albeit hybrid arrangements. Various price adjustments also contributed to revenue growth. Top line growth in the third quarter and 9 months was supported by double-digit blended SSSG. Gross margin expanded by 120 bps year-on-year in the third quarter to 24%, mainly attributable to better product mix. This led to year-to-date gross margin improvement of 80 bps to 23.7%. Meanwhile, EBIT increased by 53.5% and 54.9%, respectively, to PHP 2.3 billion and PHP 5.9 billion in the third quarter and 9 months. EBIT was driven by strong SSSG, GPM expansion and operating efficiencies. Net income attributable to parent increased by 60.8% in the third quarter to PHP 1.7 billion, ending the 9 months period at PHP 4.4 billion, up 62.7%. The surge in profitability is attributed to the strong operating performance, ForEx gains and higher dividend income. Coupled with our share buyback program, earnings per share increased at a faster clip by 66% to PHP 1.13 per share in the third quarter and 68.2% to PHP 2.95 per share in the 9 months. Meanwhile, core earnings, which exclude interest income from bonds, ForEx, equity and net earnings of associates and others, came in at PHP 1.4 billion in the third quarter, up 91.4% and PHP 3.6 billion in the 9 months, higher by 72.6%. The next speaker will be Stanley Co, Managing Director of the Supermarket segment.

Thank you, Ms. Robina. The Supermarket segment posted net sales of PHP 25.5 billion in the third quarter of 2022. This is 16.8% higher versus the same period last year. Same-store sales growth in the third quarter came in at 9.2%, which is a turnaround from a negative 3.7% within the same period of last year. This is on the back of higher transaction count, which more than compensated for lower basket prices. A better supply chain situation also helped drive same-store sales growth. Meanwhile, year-to-date 2022 net sales ended at PHP 72.2 billion, up by 12.8% year-on-year, with same-store sales growth coming in at 6.1% versus a negative 11.2% last year. Gross profit margin increased to 22.2% in the third quarter from 21.6% last year. This brought year-to-date gross margin to 21.8%, up by 60 bps year-on-year. This is attributable to better pricing, increasing Indian penetration, protection buys, assortment alignment and discontinuation of bulk sales. EBITDA margins, however, is from 8.9% in 3Q last year to 8.7% in 3Q this year. The improvement in gross margins was offset by additional expenses from new stores and the new DC, which we are preparing for future expansion of stores in Northern Luzon. As of the end of September 2022, the 145 Robinsons Supermarket, 100 Robinsons Easymart, 16 Shopwise, 35 The Marketplace and 15 No Brand stores, for a total of 311 stores. Turning you over to Mylene for the Drugstore segment.

Thanks, Stan. Moving on to the Drugstore segment. The Drugstore's net sales reached PHP 7.7 billion in the third quarter, up by 1.6% and PHP 21.7 billion in the first 9 months, with year-to-date growth of 9.4%. The blended same-store sales growth of Southstar growth is at -- was at negative 3.8% in the third quarter given the high base last year. Recall that last year's Delta variant surge resulted in a very strong third quarter for the Drugstore segment. Year-to-date 9-month same stores has remained healthy at positive 4.2%, supported by the strong performance at the start of the year during the Omicron variant surge. In terms of category performance, prescription drugs remained as a top driver, while non-pharma categories are also growing. Gross margins are up by 70 bps and 50 bps, respectively, in 3Q and 9 months to 20.3% and 20.2%. Margin expansion is largely due to category mix improvements, pricing adjustments and the alignment of trading terms and supply chain synergies between Rose and Southstar. EBITDA margin declined 30 bps to 9.2% in the third quarter due to the negative same-store sales growth. Year-to-date EBITDA margin has expanded by 50 bps to 9% with a significant margin improvement from Rose in the first half of the year. We ended the quarter with 603 Southstar, 354 Rose Pharmacy and 2,111 TGP stores. I'll turn you over now to Ted, the Group GM for DIY and Pets.

Thank you, Ms. Mylene. The DIY segment delivered 12.7% growth in net sales, [ PHP 14 billion ] in third quarter of 2022 and 8.9% to PHP 9 billion in the first 9 months of 2022. Same-store sales grew 24.1% in the third quarter, with transaction count increasing by 16.1% in the third quarter versus last year. YTD September SSSG ended at 11.8%. Categories of growth -- top line growth were hardware and lighting. Gross margins turned around in the third quarter, expanding by 120 bps year-on-year to 33.1% due to new higher-margin merchandise. This brought YTD September gross margins to 31.7%. Significant EBITDA margin improvement by 150 bps to 13.2% in the third quarter is attributable to GPM expansion and better operating leverage from stronger SSSG trends. OpEx as a percentage of sales declined substantially due to the increase in productivity. YTD EBITDA margin has expanded by 90 bps to 13.5%. The DIY store portfolio had 187 Handymans, 32 True Value stores as of end of the period, totaling 219 stores. I'll turn you over to Ms. Celina, Group GM of the Department Store segment. Thank you.

Department store net sales more than doubled to PHP 3.6 billion in the third quarter of 2022, which brought the 9-month sales to PHP 9.7 billion, higher by 87.7% year-on-year. SSSG in the third quarter accelerated to 123.9%, pulling up 9 months SSSG to 76%. Key drivers for top line sales are the resumption of face-to-face classes and the increase in travel. Our top categories are shoes, bags, sportswear, children's and ladies departments. Strong top line growth more than compensated for increased OpEx, resulting in EBITDA margin expansion of 690 bps year-on-year to 7.2% in the first 9 months. And in the third quarter alone, EBITDA margin expanded by 910 bps year-on-year to 8.8%. The Department Store segment ended the 9-month period with 50 stores. The next speaker is Suresh for the Convenience Store segment.

Thank you, Ms. Celina. CVS net sales continued its growth momentum in the third quarter 2022, jumping by 37.1% to PHP 1.6 billion to end the 9-month period at PHP 4.4 billion, up by 23.1% year-to-year. Same-store sales growth was up 39.3% in third quarter and 25.4% in 9 months, underpinned by the spike in our transaction count and the increase in number of stores opened for 24 hours to 397 from 243 last year, on top of the new product launches and consistent marketing promotions related to the rebranding. In terms of cluster BPO commercials areas were and consistent market asset. BPO and commercial areas, where 63% of our stores are located, are leading the growth with SSSG of 32% and 23%, respectively, of 9 months. Strong top line growth, better margin driven by the push in the [ RTs ], CVS sales mix ratio and [ RT ] from margins improvement and controlled OpEx lifted EBITDA margin by 480 bps to 9.7% in third quarter and 540 bps to PHP 10.1 billion in 9 months. I'll hand over to Mr. Jovy, GM of Specialty segment. Thank you.

Thank you, Suresh. Net sales for the Specialty segment posted sustained growth in third quarter this year, up by 23.7% to PHP 3.4 billion, with year-to-date sales at PHP 10.1 billion, up 24.6%. SSSG remained robust at 22.4% in third quarter of this year and 22.6% in the 9 months this year. All formats delivered strong performance with double-digit growth. EBITDA margins expanded by 70 bps to 8.9% for the first 9 months of this year, supported by healthy SSSG and gross margin gains, slightly offset by the increase in OpEx as rental rates are already back to pre-pandemic levels. I'll turn you over to the next speaker, Ms. Mylene Kasiban.

Thanks, Jovy. Moving on to our working capital. RRHI's cash conversion cycle was at 24.6 days in the 9 months versus 14 days last year, still reflecting faster payments to vendors to be given priority to load the purchases at lower prices before the effect of price increase. Here's our balance sheet. Cash and cash equivalents plus liquid marketable securities is at PHP 22.7 billion as of end September. We are in a net cash position of PHP 15.4 billion, with borrowings of PHP 7.2 billion. ROA and ROE increased to 4.7% and 8.8%, respectively, driven by higher profitability coupled with increased dividend payout and our continuing share buyback program. Lastly, CapEx has -- moving on to our CapEx. It has increased by 76.2% to PHP 2.7 billion, with bulk of -- or 70% of spending will lean to the Supermarket segment as we added new stores and renovated Shopwise. The Supermarket segment opened 27 new stores in the 9 months of 2022. So now, back to Ms. Robina.

On corporate highlights, RRHI was recently recognized as one of Asia's outstanding companies in the Consumer Discretionary sector in Asiamoney's 2022 Outstanding Companies Poll. Over 958 fund managers, buy-side analysts, bankers and research analysts responded to the poll and rank-listed companies across 12 Asian markets. RRHI was also recently recognized as one of the best employers in the Philippines by the Philippine Daily Inquirer and Statista. RRHI ranked third in the retail and wholesale industry and 87 overall. Robinsons Supermarket was also in the list and ranked 233rd overall. Inquirer and Statista pre-research an initial list of 2,000 eligible Filipino companies and rank only 30 -- rank only 300 companies. On September 5, 2022, Robinsons Supermarket, together with Century Pacific Food and impact company, Friends of Hope, held a groundbreaking of Trees of Wellness, a joint tree planting program in General Santos, South Cotabato. Through the partnership, 100,000 coconut trees are to be planted and donated to small, older coconut farmers in Mindanao. A total of 3,000 trees have already been donated to farmers in General Santos during the groundbreaking. Digital bank, GoTyme, was launched on October 20, 2022. Robinsons Retail takes a 20% stake in GoTyme Bank Corporation, a joint venture of the Gokongwei Group and the Tyme Group of South Africa. Through the JV, Robinsons Retail is set to leverage its retail footprint in the Philippines, integrating it with an innovative banking platform that Tyme is introducing to the Philippines. With 15 GoTyme kiosks already available and more in the coming weeks at Robinsons Retail stores, customers will be able to easily open their accounts at these kiosks as well as deposit and withdraw cash at the POS. TGP recently held its eighth Annual Franchisees' Summit on September 16, 2022. The event was attended by close to 500 franchisees. 55 suppliers set up booths in the morning expo and directly engaged with franchisees. TGP awards are also given to franchisees, frontliners and trade partners for their contribution to the success of the business. Earlier this year, RRHI acquired a 40% stake of Ministop Japan and Robinsons Convenience Stores, Inc., or RCSI, making RCSI a 100% owned company of RRHI. RCSI is allowed to use the banner name Ministop until the end of December 2022. The new banner name is now Uncle John's. The Ministop brand has been around for 20 years and gained prominence through our #1 product, Uncle John's Fried Chicken. The new brand name is also a celebration of the legacy of Mr. John, our founder, as we embark on a new and exciting journey for our Convenience Stores business. The respective Boards of Directors of BPI, Robinsons Bank, Robinsons Retail and JG Summit Capital Services Corp., or JG Capital, recently approved the BPI-Robinsons Bank merger, with BPI as the surviving entity. In exchange for 100% of Robinsons Bank, BPI will issue common shares to Robinsons Bank shareholders, which is owned 60% by JG Capital and 40% by RRHI, which will result in them collectively holding approximately 6% of BPI's outstanding common shares. RRHI will be owning 2.4% of BPI post closing, which represents the former's 40% stake in Robinsons Bank. The merger is expected to unlock synergies across several products and service platforms, expand the customer and deposit base of both banks and, at the same time, by capitalizing on BPI's expertise and network, enhance the overall banking experience of Robinsons Bank customers. The merger should also benefit RRHI as we will be able to tap the extensive customer base of BPI to cross-sell our retail products and services. Also, our suppliers and service providers will be able to tap BPI's commercial loans to finance their working capital requirements as they expand their business with us, which will likewise translate to better service levels for RRHI. The transaction is being targeted to be completed before the end of 2023. Finally, here is our 2022 guidance. Net store additions of 100 to 122 -- 100 to 120 stores and gross store openings of 185 to 190, organic capital expenditure of PHP 4 billion to PHP 6 billion, SSSG target of between 10% to 12%, gross margin guidance of plus 50 bps improvement and e-commerce target of 3% to 4% of total sales. At this point, we will now open up the call for Q&A. Thank you.

Thank you, Ms. Robina. Good afternoon, everyone. So this is Angelo Torres, Deputy for Corp Plan and IR of Robinsons Retail. I will be moderating the Q&A for this afternoon. All right. So there are a few questions that were sent in beforehand. The first one is, what is the outlook for the fourth quarter? Can you let us know how fourth quarter so far is doing? And are the trends being sustained?

For the month of October, we're seeing double-digit same-store sales growth, more or less the same trend as in September. For the first few days of November, we're also seeing stronger growth, it's even stronger than in October.

Great. Thank you, Gina. There's a second question. This is for the Supermarket segment. So how are basket sizes in the Supermarket segment given the persistently high inflation? Are we seeing down-trading?

Basket size in the Supermarket has been down the past consecutive months. And yes, it's a great indication of down-trading, and we're also seeing an effect of what we call shrinkflation.

All right. Thank you, Stanley. So there's a question from the floor. This is from [ Hiep Nguyen ]. So what drove the year-on-year drop in EBITDA margins in Supermarket and Drugstore, despite the year-on-year increases in gross margins? We'll let Stanley answer that.

Drop in EBITDA margin is actually higher operating expenses in some stores, particularly the newer ones, and still underutilized distribution center in Pampanga.

All right. Thank you. How about the Drugstore segment?

For the Drugstore, the EBITDA margin declined due to the negative SSSG. Note that last year, the same period last year, there was a spike in COVID cases, and we had extremely high SSSG for the Drugstore segment last year.

All right. Thank you, Stanley and Ms. Robina. The next question is from Karisa Magpayo. So this is on the Department Store, so what drove the year-on-year GPM decline in the third quarter?

Okay. Despite the decline in gross profit margin in the third quarter, total gross profit in terms of amount is up by over 100%. Yes. So it's actually relative to the increase in our -- growth in our sales.

All right. Thank you, Celina. This -- the next question is from [ Nadine Bautista ]. So what is the breakdown of the non-operating items in the third quarter as well as in the first 9 months?

Yes. So first, as of 9 -- for 9 months, there's interest income, around PHP 100 million, and then others, FX gains, it is close to PHP 300 million. And of course, interest expense and loans. For the -- yes. And then, of course, year-to-date, in other expense, there's the one-time gain in the GrowSari conversion to GPM.

All right. So we'll go over -- okay, hold on. All right. There's another question from the floor. Please, can you elaborate on the Tyme JV for the bank? What would be the effective stake for Robinsons Retail? What do we plan to achieve from here that the relationship with BPI does not bring in?

The JV is owned 60% by the Gokongwei Group and 40% by TymeBank of South Africa. And out of that 60%, we own 1/4...

1/3.

Sorry, 1/3 of the 60%. We anticipate that GoTyme will bring in more customers to our stores because GoTyme is a digital bank, and it's really for the advanced customers who can deposit their money through our POS counters from our tills and also withdraw through our tills. So that is going to bring in more customers and more transactions to our stores.

Thank you, Ms. Robina. There's another question from the floor. This is from Stephen Oliveros. A couple of questions from my end. Number one, do you see the 50 bps GPM guidance holding over the coming years? That's his first question. And then the second one is can you provide some indications on the potential one-off that you would book from the RBank merger?

On the GPM guidance, this year is an unusual year in a way because there's a lot of price increases this year. Next year, we're expecting it still to increase but at a lower rate than this year.

Great. Thank you. There's a second question. Can you provide some indications on the potential one-off that you would book from the RBank merger?

We'll let you know the next earnings call.

All right. Thank you for that, Ms. Robina. We'll also go over some questions that were sent in beforehand. This is specifically for the discretionary segments. So how is demand in the fourth quarter supply?

As mentioned earlier, same-store sales growth in October and first few days of November remains high. It's actually driven by the discretionary formats, which are registering high double-digit SSSG.

All right. Thank you, Gina. So the next question is for the Ministop or CVS business. Can you please give us an update on the Ministop rebranding?

So far, all the projects we have created a so-called a [ bible for rebranding ] is on -- we are following the time frame even though we have some challenges like securing some raw materials for mass production of signage. Still manageable. We are looking for some of the sources for additional raw materials. For example, one of it is like franchising is on progress, working with all the franchisees to secure the packages, working together with the government agencies to secure all the necessary permits and the changes in the names and all the removal of Ministop logo in its interior, inside the stores and repaint the whole store to the approved colors. That's all. Thank you.

All right. Thank you, Suresh. So the next question is from Veronica Carlos. So her question is, do you disclose specifics on price hikes in percentage, specifically for the Supermarket and Department Store segments?

For Supermarkets, price hikes, [indiscernible].

I did?

Are you seeing now? Looking...

Yes, I think we did 9% to 11%, within that range.

Yes. For Supermarket, between 9% to 11%. Department Store?

For Department Store, around 10% to 15%.

All right. Thank you, Stanley and Celina. So there's another question from the floor. This is from Rainier Ivan Yu. So as a follow-up for the RBC and BPI merger, RRHI share will shrink to 2.4% in BPI. With the size, is it likely that Robinsons Retail will sell this small block? Also, can you provide indications of foot traffic in 3Q and 4Q so far?

We're not even thinking about selling that block because even if we have a small share, I mean, the -- this merger can -- this merger is going to help our business a lot. BPI has a large customer base, and as we also mentioned a while ago, because of the size of BPI, we can provide credit to more suppliers and service providers, and in exchange, they can give us better service levels. I think this is the -- following the success of the collaboration between SM and BDO. So it follows that path.

Great. Thank you, Ms. Robina. So there's another question from Rainier. So he's asking for foot traffic trends that we saw in third quarter and fourth quarter so far.

Well, we can see it in our sales. Our sales are doing very well, so it automatically means that foot traffic has increased.

Right. Thank you, Ms. Robina. So there's a follow-up question for the CVS business. How much will be the rebranding before Uncle John?

You did CapEx asking about it? What is -- how much is the rebranding of Uncle John?

Well, we're just going to change the store signs and the -- do a little painting inside. So...

CapEx is minimal for the rebranding.

Yes. And we're going to finish all the Ministop packaging anyway. It's not like we're going to throw it away.

Yes. It's all been planned to be deployed before launching here.

All right. Thank you for that. We have 2 questions from [ Hiep Nguyen ]. So the first one is, did we exit Robinsons Builders? How much was Robinsons Builders' annual EBITDA before the closures?

We are rebranding the Robinsons Builders into Handyman. How much is the EBIT?

Yes. We have some loss there, but negligible in relation to the total DIY segment.

Yes. Yes, very small.

Okay. Thank you for that. Another question from [ Hiep ]. Can you share some initial thoughts for next year regarding revenue growth and profit margins?

We are expecting the discretionary formats of sales to go back to the 2019 level. Right now, it's still lower. And we expect a continued increase in growth -- sales growth momentum for the Supermarket and Drugstores.

Okay. Thank you, Gina. We'll go back to reading some of the questions that were sent in beforehand. This one is your thoughts on GoTyme. How are we expecting to leverage on GoTyme given its recent launch?

Yes. I think I already mentioned it a while ago.

Okay. So yes, this has been answered already. Okay. This one is on ESG. Can you please give us an update on your ESG initiatives so far this year? What will be the focus for next year on this front? For this one, we have our ESG Manager, Paul Bayan, who is available to give us a thought.

Hello. Good afternoon, everyone. So, so far, we have been focusing on communicating to various ESG raters so that -- with the intention to improve our ESG scores or ESG disclosures, specifically. We have been also continuing to improve our ESG data collection and as well so that we can set more ESG targets in the coming years. And we also continue, as we have seen, we have added new programs, community programs such as the Trees of Wellness. And you will expect that in the coming years, we will also -- we will be focusing more on the S part of the ESG or the Social part. Not taking aside -- but also not neglecting or not neglecting our initiatives on climate action and in terms of our plastic footprint reduction and diversion as a partner.

All right. Thank you very much, Paul. So we have a few more questions from the Q&A chat box. Next one is from Karisa Magpayo. So she wants to clarify the reason for the GPM contraction in the third quarter for the Department Store segment. Was it due to product or category mix or some other reason?

Okay. The slight decrease in gross profit is actually because our sales growth was like 131% increase. So relative to the sales growth, that drops profit -- gross profit as a percentage of sales actually went down. And our front margins actually improved by 10 bps.

Thank you, Ms. Celina. So there's -- next question, this is from [ Prasim ] [indiscernible]. So can you provide some guidance for store network expansion in the next few years? Will Supermarkets and Drugstores remain key priorities? What about Uncle John's CVS expansion plans?

I think for next year, we're still looking at more than 40 stores for Supermarket. And then for the Drugstores, another 100. The other formats, we'll also be increasing the store opening. And then for our CVS business, in particular, since they've been reporting a declining store numbers over the last 2 years, they will be opening stores starting next year.

All right. Thank you, Gina. Another question from [ Hiep Nguyen ]. So what is the remaining budget for the share buybacks if we plan to do another top of?

For now, we are having difficulty finishing the last PHP 600 million share buyback because of very thin volume. I don't know when we can finish that actually.

All right. Thank you, Gina. Another question from Rainier Ivan Yu. So are we looking at adding more brands in specialty retail to replace the brands that exited during the pandemic?

I think we're looking into adding more stores with our existing brands. Retail is a scale game, so you have to have more stores of one brand instead of a picket fence where you have very few stores and so many brands. You're not going to get scaled that way. So if we're going to add stores, it has to be within the same segment.

Thank you, Ms. Robina. So far, we have no more questions from the floor. Maybe we'll give them a few more seconds to type in some of their thoughts or anything they want to clarify. All right. I think there are no more questions from the floor.

Just one -- just BJ want to say. BJ, would you want to say more -- do you want to expound more on the BPI-RBank merger? I don't think he can hear me.

Are you on mute? Yes. Are you on mute?

Madame, were you addressing me?

Can you talk more on the BPI-RBank merger or I said enough?

No. I think like you said earlier, the merger is actually a very good development for Robinsons Retail. Having a much larger bank with a much larger network of branches and facilities, not to mention its much larger customer base, will really widen the kind of ecosystem benefits that retail can have with a banking network. That is really one of the pluses of this deal. Of course, to be part of a top 3 bank in the Philippines with a lot more quality assets that can improve its earnings capabilities, I think, will also benefit Robinsons Retail in terms of it being a financial investor in the bank, sharing in the dividends that we expect to be declared in the future from BPI. BPI is known to be a very consistent dividend payer. So that will, of course, be a substantial improvement from a situation where RRHI before was really a shareholder of a growing bank that really could not declare dividends yet because of its growth trajectory. But now, Robinsons Retail will also benefit from being a shareholder of a dividend-paying bank. With a much larger trading volume, hopefully, the trajectory of the stock price also, BPI will benefit the Robinsons Retail going into the future. So those are just some of the financial benefits that we see, not to mention the strategic and operational benefits that you already mentioned earlier, Ms. Robina.

Thank you, Sir BJ. There are new questions from the Q&A box. The next one is from [ Ali Hussain ]. So what is the sales contribution of GrowSari in the third quarter of 2022?

It's about 4.5%.

Okay. That's 4.5%. And then there's a follow-up also in GrowSari from [ Prasim]. So just any updates on this business?

What do you mean by updates?

Updates?

Yes.

Maybe the GMV demand [indiscernible].

Growing.

It's growing so fast.

Continuously growing.

Yes.

Its name says GrowSari, it's really growing.

All right. Thank you for that. We have no more questions from the floor, so I'd like to turn it over to Madame for closing remarks.

Okay. If there are no other questions, thank you very much, and see you at the next earnings call.