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Edited Transcript of EATP.WA earnings conference call or presentation 29-Aug-19 11:00am GMT

Half Year 2019 Amrest Holdings SE Earnings Call

Sep 11, 2019 (Thomson StreetEvents) -- Edited Transcript of Amrest Holdings SE earnings conference call or presentation Thursday, August 29, 2019 at 11:00:00am GMT

TEXT version of Transcript


Corporate Participants


* Eduardo Zamarripa

AmRest Holdings SE - CFO

* Mark R. Chandler

AmRest Holdings SE - CEO & Member of Management Board

* Peter Kaineder

AmRest Holdings SE - Chief Strategy Officer


Conference Call Participants


* João Filipe Pinto

JB Capital Markets, Sociedad de Valores, S.A., Research Division - Associate of Equities Research Portugal

* Lukasz Wachelko

Wood & Company Financial Services, a.s., Research Division - Head of Consumer and Industrials




Lukasz Wachelko, Wood & Company Financial Services, a.s., Research Division - Head of Consumer and Industrials [1]


Good afternoon, ladies and gentlemen. My name is Lukasz Wachelko. I'm representing WOOD & Company and today have the pleasure of moderating the call with AmRest management. The company is being presented by Mark Chandler, the CEO; Eduardo Zamarripa, Chief Financial Officer; and Peter Kaineder, Chief Strategy Officer. And on top of it, we have also with us Global Controller, Aleksandra Tajak; and 2 IR managers, Dorota Surowiec and Robert Patrzykat.

Okay. So the -- guys, floor is yours.


Mark R. Chandler, AmRest Holdings SE - CEO & Member of Management Board [2]


Very good. Thank you very much. Good afternoon, everyone, and welcome to the -- our Q2 earnings call. This is my first call as CEO. I think over the years, you've seen me in a different position as CFO, but I'm really pleased with announcing another strong quarter of sales and earning growth. We've seen on our posting our Q2 EBITDA rose without the adjustment, 30%. And that's actually ahead of our internal plan and a really good indicator of how strong is our core business.

As I mentioned to you last time, we expect this year to be another excellent year of sales and earnings growth both with a focus on stabilizing our margins this year and then also, finally, returning back to margin growth in the next couple of years. With another strong quarter of earnings growth, we really are well on our way to meeting our yearly goal. (inaudible) across all our brands, in particular, in [Spain] and also in China. This is also our largest market pull and the second consecutive quarter of strong growth. Our revenue grew by 26%. We also improved our margins [along that] (inaudible) some very significant. As you've learned over the past couple of years, we've had some erosion. But now we're back on track again. And the third quarter also looks quite good in Poland.

We're also working on improving the margins in Western Europe, and then we'll talk a little bit more about that later on. The trends, they differ across our 26 markets that we operate in, but we do see a commonality. You see a strong consumer able and willing to spend. Overall, we're experiencing mid-single-digit growth in our same-store sales, which is above our internal plan.

So also in terms of segments, our QSR and fast casual segment has generally outperformed the market. That's very important given that over 85% of our total revenues are in this area. There are also though some patches of headwinds in casual dining, but we're also performing better than the market. We're tagged where we're right now with flat same-store sales but still ahead of the market and also very good results in Blue Frog in China. But delivery is still one of our key growth drivers. We're well positioned given our portfolio, which is ideal for delivery, also the size of our portfolio and the brands and our strategic partnerships, which has enabled us to have better terms in the market and also grow faster than the overall market.

I'm also very pleased with the traction we're making in Starbucks Germany. It's something we talked about on several calls. We posted, again, positive same-store sales and also margins have increased. And this is really -- we've said restructuring takes time, especially in Western Europe, and it is a good indication that once we put all our systems in place in such that we can return the business and turn it around and be positive on this, I believe that the balance of this year in Starbucks Germany will be very strong.

We also have some margin enhancement programs with our recent acquisitions, which I'll talk about briefly, and that's something that we'll probably see more of the impact next year.

Since I took over as CEO, I've also made some changes within our structure, and this has enabled us to be more able to react quickly to market dynamics. I'm very pleased not only with the executive level but also with their teams under them, and this has made us more efficient and also more aligned.

Meanwhile, in terms of strategy, that hasn't altered. We -- our 4-pillar strategy is still in place. And now we believe, with this, that we could be more able to grow faster and more efficiently than in the past. And one of the best examples of our -- one of our pillars of the foodservice group, and that has been even more visible with last -- the first half of this year.

Our food cost last year was 28.8% and now in the first half of this year, it's almost 0.5% lower. And that's when we have food inflation in Europe of about 2%. And in the markets like Poland, Hungary and Russia, that's actually above 5%. So this has helped us in terms of how we position ourselves against competition in terms of -- going forward, it puts us in a much stronger position than our competitors.

Regarding M&A, we have slowed down overall. As I mentioned before, we're still looking for opportunities. But we did have a transaction we just announced. That was the contribution of Pizzaportal to Glovo. For us, it's been both financially, strategically very beneficial. Peter will go into more details here in a few minutes on that transaction, but we're very pleased with the outcome of that.

And all -- there's one more on the area I think I'd like to talk about before I pass over to Eduardo, and that's actually in Sushi Shop, and it's something I think we've seen a few questions recently on and it's something that we still believe very strongly in this business. Our integration in Sushi Shop is underway. It's making progress. We're hitting the targets that we said. We did say also in the last call that we're going to book integration costs, and that was also to help us going forward to optimize the structure and also strategy.

Unfortunately, it's been -- it has weighed on our numbers this year, and it will probably also impact the balance of this year probably but not to the extent that it has been in the first half. But we will see some benefits next year, and we expect that margins will start increasing next year again in the business.

Also, we made some changes within the organization of Sushi Shop. One of our recent hires, Christopher Jones with a very extensive business, and he also is French. He's running Sushi Shop now. We thought we'd make a transition on management earlier than we had planned because we want to move forward much more quicker on our restructuring plans. But the business is solid. We still believe very much in the business. And I expect that next year, we'll start seeing, again, some good numbers in France.

Also want to tell you about our Capital Markets Day that's going to happen in the second of October in Warsaw. It is really an opportunity to meet not only the whole management team on all the 4 pillars, but also Finaccess will also be presenting as well. And it's an opportunity to meet and discuss where we're going with the business and where are we going forward. I had a good Board meeting this last couple of days with the full Board. We're fully aligned on our growth objectives and feel -- all of us are feeling very confident about where we're at today and then where we can go.

And with that, I'm going to pass it now to Eduardo. And Eduardo, this is his first call as CFO, and I want to welcome him to the team. So thank you, Eduardo.


Eduardo Zamarripa, AmRest Holdings SE - CFO [3]


Thank you, Mark. I'm very excited to participate in this, my first conference call as CFO for AmRest. It's an honor for me to join this great company, which has had such an impressive growth over the past few years and I'm sure has huge potential going forward.

Unless I specifically say otherwise, the comments that I will provide during the call exclude the IFRS 16 accounting standard. You can review IFRS numbers in the slides included as an appendix in our investor presentation

That being said, let's just start on Slide #4 of the presentation. 46 restaurants were opened in second quarter. The pipeline is strong, and we are confident that we will achieve the guidance provided. The total store count at the end of quarter -- this quarter is 2,179 units.

AmRest's net sales for second quarter show a strong growth of 32.5% to EUR 483 million. This solid growth is mainly driven by strong sales trends in comparable restaurants as well as M&A activity in the second half of 2018. Excluding our M&A activity, our core business grew 18.3%.

In terms of profitability, EBITDA for second quarter was EUR 52.4 million, which is 26.9% higher than last year, and margin stood at 10.9%. Excluding M&A activity, the EBITDA for the second quarter was EUR 48.4 million and margin increased 0.2 percentage points to 11.3%. As we have mentioned previously, M&A did impact our overall margins, and we are putting close attention into it.

It's important to highlight that in fourth quarter 2018, we reduced our final purchase price accounting and recognized a noncash gain from bargain purchase on Pizza Hut Russia for EUR 1 million. The comparative data for first half 2019 was restated to reflect the effect of this transaction and the date of the acquisition. This adjustment impacted a 0.2 percentage points lower margin in both first half and second quarter 2019.

Net profit attributable to AmRest shareholders amounted to $12.8 million with a margin of 2.7% and an increase of 0.4 percentage points. The net profit, including IFRS 16 impact, amounted to $6.1 million.

Moving to Slide 5. First half revenues reached EUR 927.7 million and were 30.4% higher compared to the previous year. Excluding our M&A activity, our core business grew 15.6%. During the year, we opened 84 stores. The consolidated EBITDA amounted to EUR 94.5 million, representing a 26% increase over the previous year. The margin stood at 10.2%. Excluding M&A activity, EBITDA reached EUR 85.6 million, which represents a flat margin versus last year.

The core business profitability remains strong. Overall, we are facing in all regions higher labor costs, having the highest pressure from the recent M&A, but we are able to observe part of that with lower cost of sales and rent. We maintain focus on cost and expense following up to our margin committees across all countries. Regarding segments, we increased profitability in Central, Eastern Europe and China and some pressures in Western Europe and Russia.

Let's move to Slide 6 for Central and Eastern Europe. Quarterly sales increased by 18% with a strong performance in Poland, Czech and Hungary. In April, AmRest's entry to Serbia was first to Starbucks. The second quarter margin improved 0.3 percentage points to 15.2% or EUR 30.9 million. We are very pleased that the Polish market increased again its profitability. Also, Hungary business has been able to increase its profitability. Both the Polish and the Hungary business grew EBITDA in value of 26% for the quarter and 22% for the first half.

The Czech business is experiencing some pressure in margin mainly from cost of labor but continues beating the market with the highest margins in Central Eastern Europe. Overall in the region, the margin increase was primarily driven by higher food cost margin and positive impact from sales leverage and partially offset by parallel inflation across countries.

Now let's continue with Western Europe. It's the region with the highest sales increase for the quarter, 56.5%, and the EBITDA grew 54.6%. For the first half, the EBITDA grew 45.5%. The biggest improvement is coming from France due to the inclusion of Sushi Shop business. We continue with the integration of the company, and we are very excited about the opportunities and potential of the brand going forward. Also, we incorporated KFC France in fourth quarter 2018. For the first half, in France, the margin improvement is 3.3 percentage points, reaching 5.2%, and we still see room for improvement in this market.

Moving to Spain. For the second quarter, sales increased 19.9%. We continue having pressures in margin due to increases in labor costs and negative impact due to change in the mix. The sales growth is mainly coming from KFC, Blue Frog and Bacoa. For Tagliatella, same-store sales are showing improvement at the end of June and July.

Germany posted a negative margin for the quarter even with improvement in the Starbucks business. Later on in the presentation, we will enter into more detail on this. Concrete results are impacted by the acquisition of KFC and Pizza Hut, which we anticipated will take years -- a couple of years for turnaround.

We continue to work with initiatives including shared services, supply opportunities and brand leadership. For Russia, sales for the second quarter increased 22.6%. The EBITDA declined 1.4%, reaching 13.3%. In the quarter, 9 net openings driven by KFC and Pizza Hut. In that market, higher labor costs are impacting as well as energy and rent.

Final region is China with -- which continues delivering results. In second quarter, sales increased 21% and EBITDA, 22%. The margin for the quarter reached 18%. Two new stores were opened during the quarter, and same-store sales are driving the growth, definitely a market with great potential.

Our last segment is other. It had a lower increase in sales, which is positive for us. We had better performance in supply chain, Pizzaportal, our global G&A. Later in the call, we will address the sale of Pizzaportal business.

Now we dive right to the balance sheet. Net debt at the end of first half '19, excluding the impact of IFRS, equaled to EUR 595.8 million, which resulted in a comparable leverage level at 3x.

The cash provided from operating activities generated in the first 6 months of the year amounted to EUR 75.7 million without IFRS and EUR 147.7 million with IFRS. Among the adjustments for operating activities that includes the impairment for nonfinancial assets, non-IFRS amount is EUR 3.8 million for 2019 and including the effect of IFRS is EUR 8.6 million for 2019 and EUR 5 million for 2018. The impairment indicators are reviewed twice a year and respective impairment tests for restaurants are performed twice a year.

Upon the adoption of IFRS 16, the group recorded a right-of-use asset and lease liability for most lease arrangements in the statement of financial position, and these are subject to the impairment. Right-of-use assets are tested together with other assets on the level of restaurants as identified cash-generating units.

Recognized impairment losses do not relate to any individual significant item but to number of restaurants tested during the year. This reflects the specifics of group's operations where business is conducted through multiple individual and small operating units.

IFRS 16 impacted also significantly the finance costs. Interest expense on lease liability for first half 2019 was EUR 12.6 million versus 0 reported last year. Foreign exchange difference on these liabilities, EUR 1.7 million positive. In consolidated statements of cash flow, payments of lease liabilities, including interest paid, amounted to EUR 72 million, [EUR 40.2 million] reported in first half 2018.

Total CapEx excluding M&A for 2019 is expected to be in the range of EUR 250 million. For the first half of 2019, the CapEx amounts to EUR 79.5 million. Going forward, the impact of franchise issues allow us to level off on the level of CapEx spend and will improve our cash flow.

Now I will turn the call to Peter for his remarks.


Peter Kaineder, AmRest Holdings SE - Chief Strategy Officer [4]


Thank you, Eduardo. So overall, as Mark mentioned, we are very pleased with the results for the second quarter. And even more importantly, we're optimistic for the full year, and we are confident that we can deliver on the targets which we shared with you in the last calls, in the last -- first quarter call and in previous calls, which are top line growth of at least mid to high 20s and an EBITDA margin equal to last year, so a level of about 11%.

Also, we are standing firm on our target of about 300 openings. Similar to last year and as visible from openings we did so far this year, those openings are not equally distributed over all 4 quarters, but most of them are happening in the second half of the year. But be aware that for the vast majority of those sites, we already signed leases, so those are secured.

There are 2 items visible in our results I'd like to talk you through in a bit more detail. The first one is the deal in Pizzaportal, which we announced earlier this month, and the second one on Sushi Shop integration efforts.

With regards to our deal in Pizzaportal in one line, it's a great deal, as Mark already mentioned. Firstly, from a financial perspective, we'll be booking a solid profit on the sale. Remember that we have acquired the business for less than EUR 8 million in 2017 for the 51% stake, and then in 2019, so early this year, for the remaining 49%. And jointly, with additional investment over this period, we have not spent more than EUR 12 million on Pizzaportal overall.

I'm also pleased to announce that the KPIs for the EUR 5 million earnout have been achieved already, which puts the total and final price of this transaction at EUR 35 million. Secondly, we are deconsolidating a loss-making business, which by itself and without looking at potential reduction in debt will reduce the group's net debt to EBITDA by about also at 1x.

Lastly, from a strategic viewpoint, it was very clear to us, and I assume that it was pretty visible to the outside world as well, that AmRest on its own increasingly competitive segment of digital food delivery, confronted with many platforms with ample access to capital and ready to accept multiyear losses -- multi-based owner-operator of the digital delivery platform.

We didn't sell to anybody. We sold to Glovo. And we think that under the management of Glovo and with sufficient marketing muscle and budget supporting the business, that platform can be in a leading position over the next 1 or 2 years in Poland. And with Glovo, we are also selling to one of the winning platforms in Europe and even beyond Europe. And by our Board's seeds and equity stake, we'll still benefit from potential upside.

Remember also that there is an option to receive a significant part of the price in cash. Our investment in Glovo is giving us a unique edge on digital delivery. But at the same time, the character of this exposure and the deal in

Pizzaportal, it allows us to focus on our core business, which clearly is building a portfolio of Class A franchise and increasingly proprietary brands in running profitable restaurants.

On Sushi Shop, a few words. Just like in the first quarter, it's visible again that integration efforts are burden for this year's results. We talked at our last investor call about us growing multi-aggregator in France, and that's the big decision end of last year, ending our exclusivity with Delivery Hero, which meant that we have to book provisions for potential penalty as a result of the early exit from the Delivery Hero deal. We're quite confident that we can resolve the issue and unwind those provisions.

Other examples of integration costs are the optimization of franchise networks, which also includes the closure of the business in Iran and simplifying and optimizing some of the other markets, but also the severance payments of staff we're booking as we're optimizing key structures, which, as you know, also includes the departure of the CEO and COO, which we felt already, as Mark said, to replace even earlier than initially planned. And as Mark also mentioned, with Chris Jones, who recently had -- and who has been taking over, we have a great man in place and so far, he's doing an outstanding job. Overall, we are focused on completing those integration efforts this year and to be ready to visualize the positive impact of those actions with the beginning of next year.

The last point, and again, I'm repeating something which Mark already mentioned. I'd like to remind you that we're hosting the Investor Day, the AmRest Investor Day on the 2nd of October in Warsaw. We would like to invite anyone interested to take a deep dive into our business strategy and brands, to meet the team, Finaccess, the team of AmRest at this event. We're arranging this event, frankly, with WOOD & Co. So please feel free to reach out to them or to our IR team if you'd like to register for this event.

And with that, I'd like to open for Q&A. Thank you.


Questions and Answers


Operator [1]


(Operator Instructions) Our first question comes from João Pinto, JB Capital Markets.


João Filipe Pinto, JB Capital Markets, Sociedad de Valores, S.A., Research Division - Associate of Equities Research Portugal [2]


The first one on expansion plans. You reiterate your target of 3 and there are openings for the year. I understand these openings are gross. What about the net openings? What could we expect for the full year?

Second question on shadow kitchens. Could you please tell us how the testing phase is going? Have you already found the right model to expand on this format? And lastly, could you please quantify the like-for-like of Q2? You mentioned it was strong. How much was it?


Mark R. Chandler, AmRest Holdings SE - CEO & Member of Management Board [3]


So maybe I can address the -- first, the openings. Gross, we said it could be around 300. Net is going to be about 280 as we continue to clean up the portfolio, especially in Western Europe, and that was planned at this point. So we're on target in terms of both the openings and both gross and net.

In terms of the shadow kitchen, we're still moving forward, we'll be testing the shadow kitchens in the fourth quarter of this year. We will be starting actually the first one in Wroclaw in October. We're very excited about it. We've -- not only are we happy about our portfolio of brands that we have such as KFC, Pizza Hut and Burger King and such as that, we also have developed our own virtual brands as well, which is a very good addition to it. In fact, yesterday, with our Board of Directors and exec team, we actually were able to experience the -- what our R&D and innovation centers they're able to come up with for new products. I'm very excited about that.

And so that will be our -- so again, we have expanded our range. We are going through very carefully and make sure we execute this very properly, but we will be launching in October and testing a couple of other locations after that. So that's something we still think is going to be an advantage for us, especially given our portfolio of brands. Our brands are something that really few companies can match in terms of quality and breadth of that. And also, when you look at aggregators who are running kitchens, they're not operators. So for us, we see a lot of advantages to what we're doing in shadow kitchens.


Eduardo Zamarripa, AmRest Holdings SE - CFO [4]


Let me maybe add one point. The big contrast of us to other players in shadow kitchen, and as Mark said, the product is ready. We've tested it. It's highly competitive. I think that we were all been positively surprised by how great the different concepts were, which were presented to us.

But the big contrast to other players in the shadow kitchen arena is that we can and we will operate with multi-aggregators. So we will not be exclusive with one delivery platform. We'll be in all of them. A big part of the players in the shadow kitchens are the delivery platforms. So obviously, they are exclusive and most of the others are as well. So we have an outstanding -- we'll have an outstanding reach to customers and amazing products. So that puts us into a very good spot.


Mark R. Chandler, AmRest Holdings SE - CEO & Member of Management Board [5]


And then I guess, on the last question, like-for-like, we don't give it out by brand, but in country. But I would say that we had the -- with the KFC brand, which is our biggest brand in our portfolio, it's -- we're talking about low double-digit number. We're having very good bounce back, especially in -- with Starbucks in Poland and Germany. I mentioned Germany already.

Burger King has also turned into, both Czech and Poland, a profitable business for us, again, double-digit increase we've seen in that brand and also Pizza Hut in some markets. We're still in -- the Western Europe is still new to us, but Poland has been a very good market both for not only our quick -- for the casual dining -- or not, the casual dining part has been strong, but also for our Pizza Hut Express concept. So that's been a good foundation.

China, also, we can see the numbers on China because it's separated very strong. We've seen a slowdown, though, as I mentioned, on the casual dining business overall in Western Europe and see -- also probably in Central Europe as well. So we are positive in terms of the sales we have on TAG, but it slowed down as I mentioned in my introduction. So it is something that we're dealing with. But -- and Sushi Shop is also in a positive area as well.

So it's -- overall, I think for brand by brand, we don't have anything that was actually running negative, but it varies by portfolio. And that is the level of detail I can go into at this time.


João Filipe Pinto, JB Capital Markets, Sociedad de Valores, S.A., Research Division - Associate of Equities Research Portugal [6]


Just a quick follow-up. In terms of store openings, do you expect them to accelerate in 2020, right?


Mark R. Chandler, AmRest Holdings SE - CEO & Member of Management Board [7]


Yes. The 2020 is going to be interesting because I mentioned the -- I could see people before on calls, meetings that -- I view that our CapEx number is going to be fairly flat from year-to-year because as we grow, and they're looking at probably approaching close to 400 openings next year if we can continue to grow our franchising business. So I don't see that we're going to be, from an equity business, they'll -- that's going to change a lot. We still see a lot of white space out there, but the opportunity for us is on our brands in terms of franchising.

So we will grow year-on-year for sure, but also our franchise number will be higher year-on-year. But I don't see that we're going to, in terms of CapEx, grow that much versus what Eduardo mentioned this year.


Operator [8]


(Operator Instructions)


Lukasz Wachelko, Wood & Company Financial Services, a.s., Research Division - Head of Consumer and Industrials [9]


Okay. So maybe taking my privilege as a moderator, I will have a couple of questions. First of all, I would like to -- I wonder if you have any specific targets for the profitability of a business in the Central, Eastern Europe because in fact, that was the reason why the full set of numbers was delivered so nicely. So what do you expect going forward? Should we pencil-in our models that the margins will continue to widen or level off and not above 15% is just where it should be and that should be set going forward?


Mark R. Chandler, AmRest Holdings SE - CEO & Member of Management Board [10]


Well, I think let's talk about the overall numbers. I have made the commitment that we would develop -- or would deliver flat margins in the last couple of years because the acquisitions, we've actually had our margins go down. Very confident that we're ahead of our plan internally in terms of where we at margin-wise for this year.

So we will deliver on the flat margin or slightly better than flat margin for this year and the next couple of years on our internal plan and what we also believe based on the integration plans we have and the turnaround plans, such as you saw in Germany, which is also being applied to the other markets and other new acquisitions that we will start seeing margins go up.

And so within the next couple of years, our target certainly internally is to try to see if we can get 1.5 to 2 points more in another -- in the next 2 to 3 years' time frame. A lot of things have to happen. But again, you see in the Western Europe margins, the gap between Western Europe and Central Europe in terms of that margin should be shrinking, so that we're going to start seeing probably stable margins in CE and Russia, staying probably slightly higher in China, but let's see. Western Europe was where we see a lot of opportunity in the businesses we bought.

And again, it takes a long time to turn these things around. I think the calls we had before, we've always mentioned that it takes several years to do it and have seen -- we've now seen that in Starbucks Germany, and the same thing will happen there. So that is -- the driver for me is still some upside on some of the existing markets that we've been in for a while but also see a lot of upside in Western Europe.


Lukasz Wachelko, Wood & Company Financial Services, a.s., Research Division - Head of Consumer and Industrials [11]


Okay. Great. And can you possibly comment on the trading so far in the third quarter? I understand that in La Tagliatella, the business started to improve over June and July. But how are the other funds?


Mark R. Chandler, AmRest Holdings SE - CEO & Member of Management Board [12]


The -- overall, we're -- July, which we just closed, has done very well both from a top and bottom line standpoint. August, we're into it and coming near the end. It's really continuing the trends that we've seen across in each of the brands and markets. So it's -- and I want to make sure that it's very clear, too.

In Q2, we didn't have any one-offs that changed our numbers in terms of profitability. Everything was a direct flow-through from volume. So we're seeing the same sales numbers on the brands that we saw in the second quarter and the first quarter. So there's not been any surprises on that. And then we've also seen a good flow-through to the bottom line as we saw here in the second quarter. So we're very happy so far with the first 2 months of the quarter.


Lukasz Wachelko, Wood & Company Financial Services, a.s., Research Division - Head of Consumer and Industrials [13]


Okay. And the final one from my end. You may estimate that your current stake in Glovo is worth like EUR 100 million if the valuation on the recent capital increase of Glovo would be taken into the consideration. Do you have any specific plans what to do with this stake? Or is it just still a pool to be decided?


Mark R. Chandler, AmRest Holdings SE - CEO & Member of Management Board [14]


I mean I think right now, we're impressed -- we're happy with the investment we have with Glovo as a partner. Certainly, with all the activity in the marketplace, I think it's very hard to say what's going to happen in the future given the reason why we just need some takeaway transaction and others. So right now, we're content being on the Board and our investment in Glovo. And I guess we take it year-by-year or month-by-month in terms of how the market is there, but we don't have any plans right now to exit our investment.


Operator [15]


(Operator Instructions) We have no other question. Dear speakers, back to you for the conclusion.


Mark R. Chandler, AmRest Holdings SE - CEO & Member of Management Board [16]


Well, thank you very much again for attending the Q2 earnings call. Again, as we have mentioned, I hope that some of you can join us on October 2 in Warsaw for our Capital Markets Day. Again, we'll have an opportunity to see the full management team discuss the strategy, the 4 pillars, but also meet our largest shareholder, Finaccess.

So for us, it's -- we're going to make ourselves more available as we go forward to continue to tell the story we're having. But we're very pleased where we're at. I think the second quarter is a good indication, but we see a very bright future ahead of us. So again, I'm looking forward to meeting each one of you. Thank you.


Operator [17]


Ladies and gentlemen, this concludes our conference call. Thank you for your participation. You may now disconnect.


Lukasz Wachelko, Wood & Company Financial Services, a.s., Research Division - Head of Consumer and Industrials [18]


Thank you.