Sphera Franchise Group S.A. (SFG) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen. My name is [indiscernible] representing [indiscernible] & Company, and today I have the pleasure of moderating the call of management of Sphera with the greater presentation from the side of the company with CEO, Calin Ionescu; CFO, Valentin Budes; and IR, Zuzanna Kurek. Not to prolong too long, Zuzanna, the mic is yours.

Thank you so much, [ Lucas ]. I would like, as always, just to draw your attention to the disclaimer that we have on Page 2. Please note we are discussing today the preliminary announcements, financial results for 2020. We might be sharing today during this call some forward-looking statements regarding our objectives, projections, estimates. Of course, as always, actual results could differ materially from those expressed or implied today. This call is not an offer to buy or sell any security. Please keep note of that. [indiscernible] I would like now to kick off our call and invite Calin Ionescu, CEO, to share the message from the management.

Good afternoon, everyone. You are all here both for the Q4 call and 2020 results. I will start with a summary of the main key factors, which have influenced in a way or another our 2020 results. First of all, the pandemic crisis that has affected any and each of us. This crisis pushed us all to change our life. It was certainly a difficult year for everyone in HoReCa industry. Our main goal were to significantly reduce operational costs, maximize revenues and remain right next to our customers. Sphera managed to mitigate the impact of the measures to contain the spread of the pandemic in Romania, Italy and Republic of Moldova by focusing on developing new sales channels, such as partnerships with food aggregators, promotions for the delivery and directory channels and managed to serve good via KFC delivery, KFC drive-thru and Pizza Hut delivery. The group has so far entered into partnership with 8 online food delivery platform on all market of activity, but it also has its own digital sales channels. Likewise, the group continued the expansion and investments that were made by the pandemic. And during the 2020, the group managed to open 5 new KFC restaurants in Romania, 3 KFC stores in Italy and 1 new Taco Bell in Romania. Further, following negotiation with our franchisors, Yum! Brands Inc., KFC Romania managed to implement a new development plan, which has 6 more restaurants to open by the end of 2021. However, even during these hard times, Sphera ended 2020 with 158 restaurants, out of which 138 were in Romania, 18 in Italy and 2 in Republic of Moldova. Bringing this to a conclusion, despite the challenging year, at the end of it, we managed to get results that are well above the revised estimate as communicated in October last year. We, as a team have made the right management decisions. We managed to maximize revenue and minimize the cost, thus providing the best possible results in what was definitely the biggest hit HoReCa industry took since forever. This year, we will continue to -- the improvement in terms of cost development and we will further focus on delivery service. We look forward to a better 2021, and I will take the opportunity to thank the whole Sphera Franchise Group team for their tireless dedication through this difficult period. Vale, now is your -- currently take the floor and start the presentation of the results.

Thank you very much, Calin. Good afternoon, everyone, and thank you for joining us. We are all here today to go through the preliminary results of 2020, the year that, as Calin mentioned, will be forever remembered by humanity. It was clearly the most challenging year for our company, but our strong brands, successfully, they have managed to succeed. All these achievements were fueled by a very committed team with incredible courage and a clear vision, being every day focused on value, services, quality and safety. Now looking back and correlating the experience with the figures, it's obvious that our strong brands, even in very difficult moments, remained one of the first customer options. Even while the pandemic force lockdowns and prevent customers from dining in, most of our restaurants -- in most of our restaurants, people daily continue to choose our brands through our drive-through, [indiscernible] and delivery and takeaway. Our today presentation will have a slightly different format in order to have an improved logical flow compared with the previous time. So basically, we will have 3 big sections that will be covered today by us. We will start with the financial performance, where we'll count the numbers from both quarter and full year point of view. Then the second section will be mainly about business updates. And we'll have during our last part of the presentation a discussion about the brand performance. Obviously, after it, we'll go to the usual Q&A session, where we will be pleased to bring clarity to your questions. We are now on Slide 6, where we have our quarter performance. Despite the worst weather and the increased level of restrictions, we have managed to achieve sales higher by 5% compared with the previous quarter. This is the clear proof of our progress related to the recovery path. In terms of restriction for the ones not familiarized with Romania, which is our main market, during November and December, our restaurants were forbidden to sell inside and they had a limited operating schedule after 9:00 p.m. As after this hour, the traffic was restricted as well. By reaching RON 209 million consolidating all store sales level, we have a minus 20% variance versus Q4 2019. The restaurant operating expenses during Q4 recorded a level of RON 195 million which is 40.7% higher than the previous quarter levels. This was primarily driven by the main operating cost lines, i.e., COGS, payroll, rent and other operating expenses. So I will take them one by one in order to explain the factors for each one of them. COGS. In COGS in Q4, which was 6.4% higher versus Q3. However, in terms of weight in revenue, it was 32.5% in Q4 versus 32.2% in Q3. This 0.3 percentage negative variance of the cost of goods sold weight can be justified by the transition from the simplified menu proposition of KFC in Q3 towards the regular [ Romania ] proposition throughout Q4. Now payroll. Payroll stands to RON 44 million in Q4, meaning an increase of 27% versus previous quarter. Here we have the main factor, the variance of the booked state aid. In Q4, the state aids were RON 1.6 million, while in Q3, they were RON 7.7 million. If we normalize the payroll, excluding the effect of the state aids, we have a weight in revenue in Q4 of 21.9% versus 21.4% in Q3. The 0.5% negative variance of the payroll weight can be justified by the fact that we have reintroduced the performance bonus scheme restaurant level. Going now to rent. Rent in Q4 was RON 15.4 million, higher with 11.4% versus previous quarter. The main factor influence in this cost line was the level of the discount book in each quarter. We have succeeded to obtain some more discounts during Q4, amounting to RON 2.9 million. However, the amount was lower than the one booked during Q3, which was an amount of RON 4.3 million. If we normalize this cost line by eliminating the effect of the discounts, we will end up with a better performance in Q4, translated in a weight in revenue of 6.3% versus 6.6% in Q3. Now the last cost line I was planning to touch is the other operating expenses line, where we have recorded an increase of 26.6% versus previous quarter. If we are isolating the one-off costs related to the Italian subsidiary development agreement terminating in 2020 in the amount of RON 1.2 million, we remain with a negative variance versus quarter of 22.5%. This variance is attributable to the evolution of the aggregator fees which is directly linked with the contribution of the aggregators delivered in our top line. So in Q4, the cost increased 43.3%, reaching RON 10.5 million. Before switching to the EBITDA performance, we have our G&A cost line. Here in Q4, we have recognized an impairment for goodwill in the amount of RON 4.4 million. Without this item in the G&A line, we can see a better evolution versus Q3, having a weight in revenue of 5.1% in Q4 versus 5.3% in Q3. All this led us to a normalized EBITDA of Q4 in the amount of RON 15.6 million, with a margin of 7.5%, making out of Q4 our second best quarter from EBITDA point of view. We are moving now to Slide 7, where we have described our full year performance. Here, I want to emphasize that we have managed to finish this year with results well above the revised estimate as communicated in the current report published on October 22. All this is a result of tremendous work and the right business decision that helped maximize the sale of the group in the second half of the year. Our consolidated top line performance for the full year of 2020 was RON 710 million, being 25% -- 25.6% lower compared with the performance of '19. As you already know from our previous calls, we have mitigated the lost sales by different cost optimization measures in order to minimize the profitability effect. We ended the year having a normalized EBITDA level of RON 44 million, being 54% lower than 2019. Let's go now to the second part of our presentation where I'll take you through the business update of Q4. I will start with the outlook of our number of stores evolution. Exactly as mentioned by Calin in the beginning, at the end of the year, we had a number of 450 restaurants with the split Calin just mentioned. In a very difficult year from all point of view, we have continued to invest. We truly believe in the success of our brands and being committed to our growth plan. We want to be ready to harvest all the benefit once the effect of pandemic are over. Therefore, a number of 9 restaurants were built and launched in production during 2020 as follows: 5 in Romania; 3 in Italy, both of them KFC; and 1 in Romania for Taco Bell. Furthermore another 5 restaurants were work in progress as of the end of 2020. It is also emphasizing the fact that during 2020 we have decided to permanently close a number of these restaurants. We took a very pragmatic approach and we have decided to eliminate the nonviable location with no perspective under the new circumstances. 5 out of the 6 were locations operated under the Pizza Hut brand. In terms of development agreement with Yum!, as you probably know from our current reports published on the stock exchange for KFC Romania, we have agreed to build until 2020 a reduced number of standard restaurants compared with the original agreement. For this minimum number of 10, up to the end of 2021, we have embedded some financial incentives. If we'll be in the position to open more than 10 restaurants by the end of 2021, then we will benefit from further enhanced financial incentives. 5 out of these 10 restaurants were already built as of the end of 2020. For Taco Bell, there is no minimum commitment in place. However, we have agreed a scheme of incremental financial incentives as well, depending on the number of units that we will open. For Pizza Hut, we are very advanced. As you know from our calls, we are under negotiation. And I'm sure that during the next week, we will be able to make it public on the stock exchange. For Italy, since 2020, when the development plan was terminated, there is no minimum commitment in terms of opening. So we'll continue to invest by cherry-picking the best location. I'm sure that you have seen our press release from February this year when we have inaugurated our first drive-thru in Italy [indiscernible]. Now the sections stated where during Q4 the compensation of the technical unemployment by the state was still in place for our industry. We took benefit of these measures, and we have utilized it in order to calibrate the resources with the demand. During Q4, compensation worth of RON 2.3 million were recorded in our books. This brings the total value of the support received in terms of payroll for the entire year of 2020 to the value of RON 28.3 million. As discussed before, under other income, there is an amount of RON 700,000 representing state aid received by the Italian subsidiary for the turnover reduction due to the COVID-19 business disruption. This is -- there is a similar measure in Romania. We monitor closely all the others related to this topic in order to be able to evaluate if our company's qualified for it. Regarding rent discounts, as I mentioned, we have managed to obtain during Q4 an extra RON 2.9 million, which brings the total value of the discount received during 2021 for this type of expenses to RON 11.6 million. On Slide 13, we have an update of financial measures, and I will present the digital -- our digitalization present in the group. In terms of financing, it is formation in the fact that we have agreed with our main bank the extension of the principal payment for 2021 as well. This is bringing us throughout 2021 liquidity of approximately RON 36 million, the postponement of the principal repayment that was applicable also during 2020. The balance of RON 27 million of unpaid taxes as of December was rolled in the facility offered by the Romanian state to be paid in 12 installments during 2021 without any interest or penalties. And as I have just mentioned, we are monitoring if we can apply in Romania for the state aid meant to compensate up to 20% of loss of turnover in 2020 versus 2019. This facility, however, has a cap of EUR 800,000 per company. And based on the latest instruction, it will be granted on a pro rata basis against the available fund of the state. All in all, we have closed the year with a very solid cash position, i.e., RON 122 million. As you remember, in each quarter, we were able to secure a very strong cash balance, in fact to be able to react to any kind of negative evolution in the market. Otherwise, in each of the last 5 months, the group secured a cash balance well above RON 100 million. For a company doing business in one of the most affected industry by the pandemic and without stopping its ambitious growth plan, continuing the investment, I personally consider an amazing achievement the fact that we have a net debt-to-EBITDA ratio of around 1. Just to remind you that we have room under the existing covenants to go up to 2.5. And of course, we will know that it works as well above it. Regarding digitalization now. It is compulsory to tackle this area by telling you that is one of our main pillars receiving our maximum focus. It is present in our strategy, both in front end, but also in the back end of our operations. As you remember from our last call, my colleague Monica was mentioning that during Q4 we'll pilot a partially secure ordering solution. This solution was very well received by our customers, and we have decided to go for a full rollout during Q1 2021 in Bucharest. On top, all our new restaurants will have by default the touchless kiosk ordering solution now on. During the second half of 2020, we have launched the e-commerce solution for KFC in Romania that enhanced our digital environment. What we are planning to realize during 2021 related to digitalization, well, during 2021, our Pizza Hut delivery e-commerce solution and app will stop for an upgrade for an enhanced user experience. During 2021, we'll launch for KFC Romania an app on top of the existing e-commerce solution just mentioned. One of the purpose of this mobile app, it will be represented by the introduction of digital loyalty programs for being able to drive sales and enhance the digital engagement into our community. During 2021, we'll launch an add-on to the e-commerce platform for both KFC and Pizza Hut. This will be represented by the click and collect facility, an option that proved to be a success in Italy where we already have it available for the operations there. Finally, I want to share with you that we are committed in our journey to identify solutions for Pizza Hut business. And during 2021, we are planning to convert one of our dine-in restaurants into a new concept, [ fast scheduled ] dining. Basically, we'll bring technology to our classical dine-in restaurant in such a way that our customers will be able to order and pay directly to the digital kiosk solutions and then to be served at the table and still be able to enjoy our unique dining experience. In terms of support functions, at the end of Q4, we finished the implementation of a new ERP system, Business Central, powered by Microsoft. So in January 2021, this year, we had a go live. It was a [ big ] approach, having all the companies launched simultaneously. Now all the financial operations run under the new system. Together with the new ERP, we have implemented the BPM, or Business Process Management, a tool which is natively integrated with Business Central. This solution has OCR facility, optical character recognition and machine learning capabilities. We speak here about the significant automatization in terms of invoice processing and [ not only ]. Anyhow, our plans for 2021 are to go even further and have the first robots implemented for one of our existing processes. Now we will spend some time analyzing our brand performance, which is the last section of our presentation before the Q&A session. On Slide 15, we have the KFC Romania. Here we can see our gradual consistent recovery that led Q4 to a significant progress. From both our store and same-store perspective, Q4 was the best quarter for the year in terms of top line. For the full year, KFC Romania had a decrease of 22.4% for all stores and a drop of 27.2% for same stores. The normalized EBITDA margin reached 12.5% in 2020 versus 13.7% margin in '19. And KFC Romania closed the year profitable with 34.9. Moving on to Slide 16. We continue with KFC brand in Italy and Moldova. The Italian market was heavily impacted by the COVID-19 restriction imposed in Q4. Consequently, sales across all KFC stores dropped 33.5%, driving a year-on-year decline of 22.3%. Same-store performance in Italy in Q4 dropped by 52.7%, while full year was 43% lower. On the other hand, KFC Moldova had a Q4 lower only 5%. This helped the Moldova business to close the year with 13.8% EBITDA margin last year versus 17.2% in 2019 and stay profitable. On our last slide, we discuss about Pizza Hut and Taco Bell. Regarding Pizza Hut, the effect of the restriction applicable during Q4 for dine-in drove the top line performance to a negative 56% variance. The weight of the delivery increased with 11 percentage points, compensating the gap generated by the absence of the dine-in. The full year performance of Pizza Hut was down 48% versus previous year. Taco Bell, our youngest brand, had a top line evolution for all stores in 2020, dropping only 9.5% versus '19. Here, we have also the opening, which is translating an EBITDA that stays on the positive area. Thank you very much. I'll pass the floor now for the Q&A session.

[Operator Instructions] And our first question comes from [ Christian Petri of NM Pensions. ]

In first of all, congratulations on results on a very difficult environment. I would like to have -- put 2 questions. First of all, if you can detail on your strategic options on Pizza Hut and on the negative EBITDA, let's say, lines what are your plans on KFC Italy and on Pizza Hut especially. And the second question is related to where are you now on digital? How much does it affect your margins? And where do you plan to be in terms of, let's say, share in weight in sales?

I'll answer for the first question regarding of Pizza Hut. We are in a process of turn around this brand. We -- let's say that we adjust a little bit the network on 2020. We closed few location. And now our main focus is to redesign or retailer the menu of the restaurants and to reposition the Pizza Hut on the market. And during the same time, we'll try to migrate from the, let's say, casual restaurants to fast casual restaurant in this 2021. And we will test in 2 location a new way to serve the customer. And for the second one, Vale will take the floor and answer to you.

Yes. Thank you. I will add a little bit more on this one the fact that there are different concepts that we are still evaluating to see if it's worth implementing in Romania in order to maximize the potential of the Pizza Hut business. And also in terms of delivery, we are planning to evaluate the potential of a more efficient routing platform for the delivery in order to bring even more efficiency in the -- in our couriers' ways towards the clients. Nevertheless, don't forget what I was mentioning in the presentation, where we have enhanced web and app solutions applicable for Pizza Hut as well. Here, I'm referring to click and collect and the upgrade of the website to the e-commerce. Now going to digitalization. Digitalization is especially in the new context. In -- it's part of our strategy, it's first on the list. Here, we want to touch everything, from ordering where -- on how we now have kiosk in the majority of our stores. Also in Italy, we started the deployment. Here, I can mention that the average ticket suffered a visible increase because of the implementation of the digital ordering solution brought by the kiosk. The apps, the e-commerce that we just launched for the KFC, the ERP and all the automatizations that are possible to have it inside the company.

But do you target any -- if you can detail also a little bit on what's happening in Italy and on digital. If you can tell us if you target a certain weight in sales coming from the aggregators or from your own channels or from your own site.

We already saw the benefit of digitalization in Italy and Romania. All this is already done, let's consider, yes? Because in -- once we implement the kiosk in Italy, we saw the average transaction increase also. In Italy, it's already in place, the app, yes? Also, the loyalty program works. Many -- we launched the e-commerce platform for KFC, we already have the apps for the Pizza Hut and Pizza Hut delivery. We were now to -- only to update the website and the application for the Pizza Hut and Pizza Hut delivery.

And if I can add something about the delivery versus nondelivery split, because I guess you are actually referring to this through digitalization also in terms of our collaboration with the food aggregators. So basically, indeed, the delivery services grew in Q4. As we mentioned, it was a difficult quarter. So the inside restaurants were closed in Romania. Also, we had the colder weather. So that somehow justifies also why delivery grew. Here, we are talking about both delivery through food aggregators. If you perhaps remember from some of our calls in the past, the collaboration with the food aggregators is twofold. So on one hand, we have a partnership under which we deliver through our own means. And on the other hand that we can also deliver through the delivery capacity of those aggregators. As you look -- if you look at our results from -- if you look at our financial results, you will see that the evolution was pretty rapid from 2019 to 2020. And we are still somehow assessing what would be the perfect split. And we are focusing on our own delivery capacity in order to build it as fast as we can.

[Operator Instructions] And our second question comes from Bogdan Caraghiaur of FIS Bank.

This is Bogdan from FIS Transilvania. Regarding this stake, 8% to 20% of the sales in 2020 versus 2019 that could be recovered, does this apply to all 3 companies altogether, in examples, at most EUR 800,000? And -- this will be the first one, please. So if you don't have an answer, could it be answered by the Ministry of Finance which you write them a letter and they get back to you, I think? A possibility that we could have an answer on this.

Yes. Basically, here, probably you know there were quite a few changes in the way in which this was made available for the companies. Even now, we are waiting for the clear implementation to evaluate the applicability for our companies. Obviously, we are targeting to enroll all the companies and to take benefit of it as much as possible. What is clear now in terms of how it works is the fact that everybody -- I mean, it's not the first in first served as it was supposed to be initially or as we understood initially. Now for sure, how it works, it's everybody will apply. And then based on the volume of the application, the amount related to the available fund will create a pro rata that will be granted to each company. Still, in this moment, we are not able to answer if we are eligible with our companies or not. I think it's a term in which they should come with the real details of the implementation of this help.

I would like to add something. But it was at the beginning, the budget, the [ acting ] budget for the industry was 2.5 billion, right? And now they decreased to only 1 billion. And also, they extend the payment term to 2022 June, end of June, which is mean cannot be a real help probably on this year on 2021.

And our next question comes from [indiscernible] of NM Pensions.

Just a quick question from my side regarding your comments on the redesigning the menu. If I recall right, there was another redesigning of the menu 3 years back. What was the feedback from the customers from that reshuffling of the menu? And what do you expect to achieve with this, I assume, new round of changes that you are going to implement on Pizza Hut?

You say 2 years ago?

Yes, I believe like 3 years ago, there was a significant menu changes regarding -- including under options besides like pizza like burgers, pasta, wings and stuff.

Yes. Yes, yes, correct. The customer was very happy. All our research highlight this. And they appreciate our initiative. But in the same time now, we're in a different reality, yes? And we need to all digital for a dining restaurant. Now where we want to take the restaurant as without table service, Pizza Hut. And nobody is to adapt a little bit the menu.

Yes. And I will add on top to understand where we want to bring all this, the [ FCDI ] concepts, theoretically should allow for delivery as well in order to maximize the efficiency of the restaurants. So there will be locations that will have on one hand the efficiency from not having waiters and the hurdle of people paying and having tips. So basically, it would be very time-efficient because everybody will work then [ on cure ]. Still enjoying the experience of being served at the table and having all the facilities of our dine-in experience. But on the same time from this location, in order to make them as efficient as possible, we need to be able to deliver as well. And what Calin was mentioning one part of his statement was related to this as well from our point of view of the menu, because in this -- I mean, in order to be able to deliver from a location at this service also inside should have a manual alignment in order to -- the product to respect all the conditions for delivery as well. So this is one point of speaking on menu repositioning.

[Operator Instructions] Our next question comes from Christian Petre of NM Pension.

Yes. If we look at this -- all this cost reduction and the state scheme that you were able to achieve support, which one do you think are sustainable? How we should look at them in the future? I mean, trends and also the state scheme, can you comment a little bit on that? When -- what are the terms here?

Sure. Sure, Christian. So first of all, I will take them one by one because there are not so many. Under payroll, we had 2 initiatives. One related to the technical unemployment, where the 75% were compensated by the Romanian state. This facility is still applicable to our industry as far as we are under restrictions. So on top of this one, under the payroll, it was another initiative where it was reimburse the 41.5% of the salary for the people that were under technical unemployment for 3 months. This one was a limited option, a limited facility that we don't expect to have it in the future as well. So you cannot count on it anymore.

And [indiscernible] it was only visible in Q3.

Exactly, because it was during 2020 in Q3. So on top of this one, there are hopes for the 80 -- for the 20% compensation of the negative variance in the turnover versus 2019. But for this, we need to evaluate and to see how it is applicable. And the majority of all other helps coming from the states were, from a cash flow point of view, not necessarily from a cost reduction point of view. And here, as I mentioned, is installments for the due taxes.

And also they canceled the payment of the fee, the specific -- employee specific.

Yes. The specific income tax applicable for the restaurant industry, which was temporarily canceled. So more or less, this is the overview of the status in Romania.

Our next question comes from Reino Pent of Avaron Asset Management.

Just wondering if you could comment on the potential incentives that you will receive if you manage to open more than the planned amount of restaurants. And secondly, also, the current agreement with Yum!, if I understand correctly, is only for -- I mean, ends this year. So what should we expect looking forward? So longer term plans, if you have any. And would you kind of guide us on also opening costs of KFC restaurants in Romania. I mean you gave a really good guidance years ago during the IPO process. So could you -- just some kind of elaboration where we stand at the moment.

Okay. Regarding of the development agreement with KFC international, we decreased the number for 2020 and 2021, but we are still under the 2023 under agreement with them. The incentive is applied for the existence, these 10 units that will be developed in these 2 years. And for the next, if we develop more, yes, the incentive is higher. The initial fee is [indiscernible]. Also there, we have payback, it's amount of money for each restaurant that is developed, yes? And also, there are other fees that will not be applied for the sale of this restaurant.

Yes. Unfortunately, we cannot go to specific details, but more or less -- this is the kind of incentives that we have embedded in the agreement.

Yes. Regarding of the investment in the new stores, depends of the format. And Vale can explain better.

Yes. So here, if we are thinking about food court, this is everywhere, around EUR 450,000 to EUR 500,000. And the other format that we are building is related to drive-thru. And the drive-thru, again, is very important, the size, the location and how it is structured. Usually, it's around EUR 1 million, but can go even above if we are speaking about bigger drive-thrus with the house built by us and owned by us.

Plus compared with what we declare when it was the IPO, the cost of the construction in Romania, especially in Romania, increased year-by-year because of the labor cost, because of the price of the -- the construction material and so and so.

And I think it's a good linked with one of the previous questions which was related to the digitalization. Do not forget all these extra costs that came in the meantime. And here, I'm referring to all the kiosks. This bring cost all the licenses to it and all the automatization we have with the boards in the kitchen.

[Operator Instructions] We currently have no further questions, so I'll now hand back over to Lucas for closing.

Yes. So maybe while taking the privilege of moderator, I will ask one question from my end. Can you please comment on the current trading environment? Are you seeing any changes in the trends and the improvement in traffic in the shopping malls because of the lockdown was lifted? Where that is going currently in the recent months?

I'll answer. Of course, because of the evolution of the pandemic crisis, then the number of cases decreased starting with January, January and February. We are in a better position now because all the restaurants are open with restriction. There are cities with only 30% number of sitting inside for only -- or in the best case, that's 50% capacity. But we are not optimistic because the number of cases start to rise again, not only in Romania, also in Italy and in Europe. And most probably, we'll face with some new restrictions in the next 2, 3 months, yes? And -- but as we proved already, we adapt our business for this new reality.

Okay, great. I believe that it will be on my end, unless there's anyone willing take a question from the room.

I would like to add the vaccination program, it's one of the best in Europe. In Romania, they have a very good result. But we'll benefit on this vaccination program only in May or June, when we'll see more relaxation measures in place.

Yes. Anyhow, it's obvious that our recovery path is going forward. So being also in advantage of the new conditions which allows dine-in inside in the first quarter, we are progressing well. However, Q1 generally, it's a totally specific quarter. Remember that always even before pandemic, this quarter comes after holiday, so it has a specificality. But we are on the good path.

That concludes today's questions. So I'll hand over to Lucas for the closing.

Okay. So I believe that we've touched almost everything, Zuzanna, unless you have anything to end up with.

No. Thank you so much for joining us today. We will be with Valentin next week at Wood Conference. So you can request a meeting with us, we'll be happy to discuss with you further details next week if you have any follow-up questions. And of course, as always, you can reach us on e-mail [email protected]. Thank you so much, and we will hear you in May at our Q1 2021 call. Thank you.

Thank you.

Thank you. Bye.