Full Year 2019 Sligro Food Group NV Earnings Call
Veghel Jan 27, 2020 (Thomson StreetEvents) -- Edited Transcript of Sligro Food Group NV earnings conference call or presentation Thursday, January 23, 2020 at 2:30:00pm GMT
TEXT version of Transcript
* R. W. A. J. van der Sluijs
Sligro Food Group N.V. - CFO & Member of Executive Board
Ladies and gentlemen, thank you for holding, and welcome to the Silgro Food Group event call.
(Operator Instructions) I would like to hand over the conference to Mr. Rob van der Slujis. Please go ahead, sir.
R. W. A. J. van der Sluijs, Sligro Food Group N.V. - CFO & Member of Executive Board 
Thank you. Welcome, everybody, to the call on our annual figure for 2019. I will start as usual with an elaboration based on the sheet presentation that you can download from the company website. I will refer to the pages I'm elaborating on. And then after that, I'll try to keep it to a 20, 30-minute introduction, and there's room for questions.
And I would like to start with Page #3 of the presentation and dedicate a few words to the development of the net sales. These were already published early January, of course. So no major deviations in that respect to those figures here. We see a figure where the sales in the Netherlands have increased with 1.9% and in Belgium with 3.8%. In the Netherlands, we had a tough year because organically sales were down. And in that respect, below market developments, that was compensated by the turnover we added as a result of the acquisition of De Kweker for EUR 70 million and with the combination of that led to growth in the Netherlands.
Specifically, in the Netherlands, we had some pressure with -- in the customer group that came to Sligro as a result of the deal with Heineken. So specific drinks segment. And the reason for that is basically twofold. We decided to depart from the earlier wine supplier that Heineken always used because Sligro is used to having direct imports with all the wine -- the wineries. And we had an intermediate situation with the supplier. So we decided to split. But at that moment, still a number of the customers were tied to the former supplier. And we lost approximately 2/3 of the sales at that specific moment in time, and that was in April of 2019.
In the meantime, we have regained quite a lot of those customers. And I think we have 2/3 of the portfolio back with Sligro, and that trend is still increasing. So that's a positive development. But during the year 2019, we lost approximately 40% of the wine sales to those specific customer groups. And that is more or less EUR 12 million on a yearly basis. And on the other hand, of course, we are working together with Heineken on a situation where the customers can have one order, one truck delivery and in the end, also one invoice for the combined deliveries. Many of the customers are very happy with that situation, but that is still the to-be situation. And in the intermediate period, some of the customers have chosen to go for a different supplier than Sligro. In the end, they are confident that once we have everything in place, they will return. But -- yes, in the meantime, we have lost quite a lot of turnover with those customers. But we are confident that we can regain.
And in Belgium, this fully organic -- the growth over there, of course, with the new outlets opened in November '18 in Antwerp. It's steadily growing. We had planned to migrate the customers that we supply from the Dutch space into Belgium in 2019. We did this only very limited because still the operational performance of Belgium in combination with supply chain arrangements with some major suppliers. There's still work to be done to create a stable situation in Belgium, and in that situation, we don't want to migrate customers. But we will do our best to accomplish this in 2020, and with that, generate more volume in Antwerp. And that will have a positive effect also on the operational performance there in the next year. And then in the mix, we see already for a long time, a shift from -- towards delivery and decline in cash-and-carry in the market. We also see this in the figures of Sligro. This year, we remained stable, and that's because the acquisition of De Kweker added more than average to the cash-and-carry sales. So we stabilized the split 1/3 cash-and-carry, 2/3 delivery for the year 2019.
If I then move on to the next sheet for gross margin. We -- again, a nice improvement of the gross margin percentage specifically in the Netherlands. In the Netherlands, was the result of adding De Kweker, which had a, at the start, already better gross margin profile than the other business of Sligro. And with the harmonization of the purchasing conditions between De Kweker and Sligro, we added another nice parts to the gross margin there. So in the mix that explains the increase in the Netherlands, both in the absolute terms and in percentage. And ongoing in the Netherlands is, of course, our effort to valorize the data that we have in the organization together with our suppliers, resulting in better promotional margins and better gross margins. In Belgium, there are a number of effects that are depressing gross margins. One is the aforementioned start-up of Antwerp as a new outlet, a big store with -- of course, starting from 0 turnover in the scale-up phase means that the level of shrinkage is quite high.
And -- yes, that means that in the start-up phase, we were actually operating on negative gross margins. Well, we are far beyond that period now. But this, in total, depressed the gross margins overall in Belgium for quite a bit. And the other effect is more technical one. In the Netherlands, all the fresh produce groups, so food and vegetables, meat and game and poultry are handled by our fresh partners in which we have a share in the company, and they also took over operations in 2019 in Belgium on behalf of us. So for the whole group, we have -- we use the same partners. But it means that they get a part of the gross margin, but they also bear the cost, for instance, of the staffing. So that's a technical shift but led to a more depressed gross margin in Belgium.
If I then move on to other operating income on Sheet #5. Relatively speaking, quite high figures for other operating income for Sligro. That's whole to do with the service fee that we got from EMTÉ. When we sold the EMTÉ business, we agreed that we will service the new owners for a period of maximum 12 months for all the central operations of finance, IT, HR. And for that, we got a fee in return. And that was reported under other operating income. In the second half of 2018, that amounted to EUR 8 million. In 2019 in the first half, that was still EUR 5 million. But these, of course, relatively big amounts under operating income. And as of second half of 2019, these services and, of course, the resulting fee have stopped. So that's going to 0 in the next year. We sold quite a bit of the remaining properties that we are not using anymore. Part of it had to do with retail. So we got rid of that in 2019. And as a result, we had a bit of a book profit on the sale of those items. So these are the main elements in the other operating income that I would like to elaborate on.
Then if we go to Sheet #6, it is about the cost structure. And there has been a lot going on in that cost structure. So I'll take some time to elaborate. Of course, we have a consolidation effect of De Kweker that adds cost to all the lines in absolute terms. And we had some one-offs as well with De Kweker. One-off is, of course, the acquisition-related cost, which we already disclosed at the half year, approximately EUR 1 million. But as announced, we are doing an integration effort with De Kweker, which means that we will dismantle the headquarters and we'll reduce the head count over there accordingly. And that meant that we took on a restructuring provision in the figures of 2019 to execute that in 2020, and that was another EUR 2 million involved. Then, of course -- and this is hard to quantify, we are in the midst of integrating Sligro and Heineken in one distribution center structure. And that means that a lot of time and effort of the people in distribution centers has been absorbed in moving around in reshelfing, in repacking and actually moving and preparing for the integration. And we have worked for quite a lot of time still in a very inefficient situation, all the locations of Heineken and all the locations of Sligro with double transportation cost, et cetera. So very inefficient situation. We are happy that in the course of 2020, we expect to finalize that phase, to a large extent, and that we can start banking on the advantages that it will bring once everything is put together. But I will speak about that a little bit later on.
Then in one of the next slides, I will elaborate on the impact of overheads on Foodservice as a result of the disposal of retail, also on the IT cost, of course, keep in mind that last year in the cost structure, there was a EUR 70 million restructuring cost of provision for the headquarters. Transportation costs, we spoke about quite frequently over the last year. Prices went up significantly, which led to an overall pressure of roughly 7% on transportation. Half of that price increase we could offset by further efficiency measures, and of course, we will continue to do that in 2020. But net effect of this price increase and the efforts of getting more efficiency was EUR 4 million pressure on results. The technical effects of IFRS 16, I also elaborated in one of the following sheets. And of course, our ongoing investment in the infrastructure has led to higher depreciation charges, which is a logical result of the past.
Then moving on to Sheet #17 (sic) [Sheet #7]. I think it will be a bit tricky to explain it through the phone, but I'm going to do an attempt to do that. Basically, what this sheet says, if we go to the left, then we see 2017, that was a situation where still Foodretail and Foodservice was combined. In that period out of the central overhead cost and central distribution center, EUR 19 million was allocated to Foodretail. And as such, the coverage of those costs was borne by Foodretail in complete.
In 2018, still the same level of cost. No savings and reduction of head count at that moment, but we had a half year of coverage from the business when it was still under our ownership. And in the second half, we received the EUR 8 million fees from the service agreement that we had with the new owners of EMTÉ, resulting in EUR 1 million additional cost on Foodservice. In 2019, of course, this service agreement came to an end.
As you see in the -- before last line of this graph, we only received EUR 5 million of fees in the first half of the year. But of course, we already started to reduce head count as well on our central infrastructure, meaning a cost reduction of EUR 5 million. So netting out to pressure on Foodservice of 9 and that will continue further in 2020 where we have no fees anymore, but we will get the full year effect of the head count savings program in place. But in the end, it results, for now, in a dissynergy of roughly EUR 8 million on costs. And as we explained a few years ago, we estimated EUR 15 million to EUR 20 million dissynergy as a result of dismantling of EMTÉ in terms of cost. This is more or less in line with what we expected at that moment. We don't think that this will be an ongoing pressure because over the longer run, things are more flexible. But the best way to compensate this EUR 8 million additional cost is by growing. And the example I just mentioned with De Kweker, where we're going to dismantle the headquarters and don't have to scale up in the central infrastructure in Veghel means that by growth, we compensate this type of cost. An important impact on the figures, which is explained over here.
And then another one is IT cost on the next sheet, Sheet #8. There we see that, of course, we are in the midst of our implementation and build of the new IT environment. Program is nicely on schedule in timing, in budget and also in scoping. So we're happy about the progress there. We carefully planned it, and that is paying off in this phase. So that's okay. But still, we know that at the end of the line, it will cost us EUR 60 million to do the one-off implementation. That's one part. The other part is, of course, that we -- while we are doing this and also scaling up a new support organization, we still have to maintain the current systems. So basically, we are not able to scale down the old support organization yet, and we are scaling up the new organization already. So that means that costs are increasing for a period of time, and that's shown in the graph below on the sheet. We see in the light gray means that costs in the combination for the support organization are going up. And of course, what is going to be on top of that is the amortization of that EUR 60 million or EUR 53 million as mentioned above Capex, which will pass-through the P&L over a period of 7 to 9 years in the coming period. And that only starts in 2020 because that's when we have SAP in use in Belgium for the first time, and that's the moment when we start amortizing these costs.
So that is how the total picture of IT will look like in the next couple of years, and we'll give you an idea about the levels of cost and when it is going down again after the implementation period.
Then the impact of IFRS 16 is elaborated on Sheet #19 (sic) [Sheet #9]. In terms of cash, nothing happens. But in terms of P&L impact, we have some impact specifically on the EBITDA, EBIT and also net profit lines. Pretax profit is only EUR 1 million down as a result of the application of this new standard. But the big shift is from expenses -- lease expenses now to depreciation and financing expenses as explained in this graph. So a lot of disturbance in the P&L, and we are all hoping for a bit of stability on that front that will improve the visibility of our results in the next couple of years. Technical effect, no impact as such.
Then on the finance income and the taxes. On Page #10, we see the additional financing expenses as a result of IFRS as just explained. We see that our participations results are also a bit down, has to do with 2 effects. EMTÉ was also a big customer for one of our big fresh partners and, of course, with the sale of EMTÉ, they also lost a big part of their business and they had to readjust. And on the other hand, our partners have started up servicing us in Belgium as well, which is combined with some start-up losses for them. So also the results in associates has come down a bit in 2019 compared to 2018. And for taxes, no specific effects other than to mention the last bullet, that, of course, have we used all kind of facilities, specifically involving energy-friendly equipment, et cetera. And for that, we get fiscal grants. The size of that has not increased drastically compared to last year, but of course, in a year where we have a relatively low profit before tax from regular business. This facility depress the percentage of tax burden more significantly.
Then looking at the operating profit development, as we call it, on Page #11. If we look through the cost of Sligro in the P&L and we take out the -- well, more or less nonrecurring or dissynergy effects, we see what the actual business is doing and then still, the overall conclusion is that we had a relatively disappointing year in that sense. We took on a lot of big projects. We made a lot of progress and put a lot of things in place that will bring the success in the next couple of years, but a little to show for it in 2019 in terms of results. And on the right-hand side, I think is the summary of what was just explained the major elements causing the decline in the results in 2019.
That leads to a net profit per share on Page #12 of EUR 0.75. Of course, last year, we had a big good profit of retail in it. This year, mostly continued operations. And so EUR 0.75 earnings per share. We do understand and, of course, fully appreciate that in the longer term, dividend should always be based on solid results development and free cash flow projection. And we are confident that we have everything in place to see that through in the next couple of years. And based on that confidence, we have decided to maintain dividends at the same level as last year at EUR 1.40 per share, knowing that this year, it is not fully supported by results and the free cash flow. But again, based on the confidence that our plans in future, we'll make sure we have the recovery reflecting this decision.
Then on the next sheet, the cash flow statement. I think I mentioned a lot of the elements. We do have a lot of technical influences there, both from IFRS presentation, but also last year, if you remember, in 2018, in the deal with EMTÉ, we also got a compensation for working capital with this. And this presentation still part of the investing cash flow and should be corrected to cash flow from operating activities because otherwise, the operating activities are increasing significantly and that is, of course, not completely in line with the results development. So that's more of a technical shift in there. I think what is mentioning -- worthwhile mentioning here specifically, is, of course, the major investments that we've done. So our gross CapEx of EUR 129 million offset by the inflow of some divestments. But that level of CapEx is the highest in the company ever. And we expect that, that will significantly reduce as of 2020 and the years thereafter, more towards our long-term net CapEx target of roughly 2.5% of sales. And that will, of course, help -- besides recovery in results also less CapEx will result, of course, in a better free cash flow generation profile for the next period.
And of course, in a year where results are a bit under pressure and where you invest a lot then, of course, that is reflected also in the debt position of the company, specifically as we maintain dividends on the level that we are doing. But we see that by the end of the year, we already brought down the net debt-to-EBITDA ratio to 2.2 coming from 2.5, 2.6 around the summer. So also there, we are back in the right track to reducing this covenant. We are not close to any dangerous covenants. And in all of the documentation, we have provided for the impact of IFRS, which can be excluded from the calculation. So we think that we took a good step already there in the second half of the year. And of course, we'll go back to more normalized levels for Sligro Food Group in the years to come.
Then I will skip the segment figures and the segment cash flows, but I think these both reflects what has been elaborated in the previous sheets.
Then going through the highlights of the Netherlands on Sheet #17. We see the developments in the major indicators for us. So both consumer confidence and the unemployment rates are important leading indicators for where our business is going. This is shown in the third graph at the bottom of this sheet where the Foodservice Institute in the Netherlands has shown the correlation between -- for a long period of time between consumer confidence and the growth in the Foodservice sales. And what we've seen in the Netherlands in the end of 2018, consumer confidence really came down hard to levels that we haven't seen since 2015. So that also explains why there is a slowdown in the market in the growth percentages. And it seems to stabilize, which also bodes for 2020 that we will have more or less flat situation in the market, that's at least our expectation for now.
And if we then look at the market developments a bit further on Sheet #18. We see the overall market development and the growth in the specific segments. Keep in mind that we had VAT increase in the Netherlands, which accounts for approximately 2.3%, 2.4% growth just based on the VAT, which is included in the figures on consumer spending, on the left-hand side. If we then look at what it meant for the development of the wholesale -- so the market in wholesale value, then the Foodservice Institute estimates that the total market had grown with 2.4%. We mentioned before that we were growing with 1.9% in the Netherlands, so that explains a slight decline in our overall market share. Compared to the figures presented last year, you will see that there is a step down of roughly 1% on Sligro compared to the reports for the previous year.
That's because the Foodservice Institute has redefined their view on the market to include also retailers and logistics service providers to the market. That's an addition, which we think is worthwhile because there's more blurring and more impact of those markets. But they also excluded, for instance, tobacco from the market definition. And although it is consistently applied, keep in mind that by the meantime, almost 1/4 of the Foodservice sales of Sligro is now excluded from this market definition. But still, it is consistently done. We are still, by far, a market leader in the Netherlands and with a bit of decline over there. We see that Hanos, one of the local competitors, is growing, that is acquisition-related and expansion-related and the new players added, we think that is a world -- worthwhile addition to the market because -- yes, they're also playing in that area.
If we look to the developments at Sligro ourselves at the Sheet #19. Well, I -- we've had a lot of focus on our strategic programs. I mentioned most of them Heineken, IT, next-generation cash-and-carry stores, et cetera. And although we are happy on the progress that we made on those elements, of course, that took eyes off the ball on the normal operations. And that had some impact, of course, also on customer appreciation. And that's something we have to restore in 2020. IT implementation is running on schedule. And of course, our -- a lot of attention is going in the shift from cash-and-carry to delivery. We know that in market the delivery business is growing, but we believe in the combination of the 2, but think that cash-and-carry has to be reinvented and put into the context of the new positioning in the market. And that's what we call the next-gen cash-and-carry program. On the sheet following, we explained some of the elements that are part of this program. So both is changing the physical environment of the cash-and-carry in the network. On the other hand, introducing a lot of digital features and services for our customers. And the combination of the 2 should make the cash-and-carry strong also in the future, where sales might go down further in the cash-and-carry environment. And then as explained on Sheet 21, graphically, we have a true omnichannel proposition for our customers with the combination of online delivery and cash-and-carry in combination and all kind of digital features and services.
Then I'd like to skip to Sheet #23. An update on the Heineken partnership. The partnership is strengthening year-after-year. We're very happy about the relationships that we are building between the sales forces of the 2 companies and really feel that we are close to putting the value on the collaboration. Of course, last years have been all about investing and setting up the infrastructure for that. We have rebuilt a number of -- and expanded the number of the distribution centers of Sligro to be able to absorb all the volumes of Heineken. In 2019, we already closed down 3 locations of Heineken and integrated there. And in those locations, we are at least already able to supply the customer in one truck. It's still 2 orders. It's still [2 roll pages]. And customers still have to order on 2 different platforms. That we will remedy in the first half of 2020. And then we have fulfilled our promise to the customers. And we can start optimizing the situation for them and also, of course, for ourselves. So looking ahead, we are going to complete the integration in 2020, go back to the service levels and the quality of the process that customers are accustomed to with us, but also start to take some of the benefits in terms of cost savings and upsell potential.
And on the next slide, you see where we are on this physical integration. So Rotterdam, Hulst and Enschede were done in 2019. In the meantime, at the beginning of this year, in the northern part of the Netherlands in the city of Drachten, we merged the Heineken and Sligro DCs. And in the next couple of weeks, a lot will be done, including Amsterdam. And once that is done, then 80% to 85% of the job is done. And in those locations, we can start the optimization process, which will bring us a lot of benefits in the next couple of years. It will be a gradual process. We have to convert 35,000 customers in the Netherlands onto our new online platform, which will be launched in the second quarter of the year and renegotiate payment terms, renegotiate drop times, drop moments, et cetera, et cetera. But in the meantime, try to generate upsell and concentration of their business with Sligro. So a very interesting time where we can really start reaping the benefits from this deal.
Then a few words on De Kweker acquisition on Page 25. So in the summer, we were able to acquire De Kweker. A very strong, a very nice player in the heart of Amsterdam. We bought the company for EUR 52 million cash and debt-free price, including a lot of real estate in a value of EUR 19 million. The good thing is that already EUR 12 million out of that real estate is already resold in 2019. So that was a good thing. And De Kweker contributed already EUR 70 million to net sales in 2019. Keep in mind that they report on 13 4-week periods, and 7 out of those were reported in the second half of the year. And of course, also for De Kweker, the holiday season fourth quarter is the best one of the year. So for next year, we expect another EUR 55 million to EUR 60 million in sales from De Kweker in the first half of the year as nonorganic sales growth.
The integration process is running smoothly. We already announced and planned dismantling of the headquarters of De Kweker. We took the provision in the 2019 figures, but we'll execute that in 2020. We harmonized purchasing conditions, which gave a nice uplift to the gross margin percentages of De Kweker. And the integration of the cash-and-carry is being prepared and also the delivery, and we will move that in the course of 2020 in -- under the Sligro umbrella, at least on the back end, because on the front end, we want to keep De Kweker as a name and as a proposition in the market because of its strong position in the specific area of Amsterdam.
You can see our building activities on the next Slide 26, a number of cash-and-carries we converted, a number of delivery service outlets that are converted or rebuilt on Page 27.
And on Page 28, you see the summary of the 5 key priorities for the Netherlands in 2020. We are finalizing a lot of the big programs, so there's a bit of a relief also in the company within -- amongst our employees, which is very important because we need a year or a period at least to focus again on customer satisfaction and on improving the results of the group. And these, I think, are very nicely presented in these 5 priorities.
Then moving on to Belgium. In Belgium, we see similar market developments on Sheet #31. Also there, consumer confidence coming down, but unemployment still relatively low. So there, we also think stabilization is the way forward. Figures on the markets, Page 32, are still not as consistent and frequently available as they are in the Netherlands with a lot of changes during the year. So over the first 3 quarters, minus 3% was reported to end up with plus 3% the year overall with a new definition and a new (inaudible) market. So -- well, we can't really base ourselves on these kind of figures. We know that the market for 1/3 is in wholesalers and for 2/3, the buying of professionals is still done in the supermarket and fresh specialist channel. So given these numbers, we estimate that our market share is roughly 3.5%. And that in 2019, we were able to outgrow the market, but more detailed analysis than that and more proof I don't have at this moment. We still see that the market is really fragmented. We see that the big players besides Sligro Food Group. So Makro/Metro, Conway, Bidfood, Trendy Foods, Solucious are all more or less of the same size still. So that means that there's still a lot of opportunity to grow and consolidate in this market and to strengthen our position.
And we spent our time as shown on Sheet #33. Of course, Sligro, Antwerp to grow the business, also support the operational performance specifically more dominant from the Netherlands as of the fourth quarter to make sure that also with these lower levels of sales, we are able to operate at a higher profitable level, which is really important. We made a lot of adjustment to the infrastructure to make sure that we can grow also in delivery in Belgium, which is important. We prepared for the IT integration. So in the second half of 2020, we have the first go-live of our SAP platform in Belgium, and that will help to overcome a lot of the challenges that they are facing today. We are maintaining 3 different ERP systems, but it means 3 different pricing systems, 3 different promotional flyers for customers, customers that have to order on 3 different platforms, et cetera. So it will help a lot if we convert all the business onto one platform in 2020. And that will bring us also some cost savings in the headquarters of Belgium.
And of course, very important for that was the simplification of the organizational structure. With the acquisitions that we've done, we had a lot of different entities in Belgium. We merged them all into one Sligro Food Group Belgium and only one associate there, the production company, but that helps to simplify on our way to SAP, but also in daily business. It's much easier to show yourself in the market as one Sligro Food Group Belgium. Then on Antwerp on Sheet #34. We see the revenue development. We didn't hold on to the line that we expected at the half year figures. One major reason for that is that we postponed the transfer of the Dutch-based service customers in Belgium, that is EUR 150,000 to EUR 200,000 a week, which closes the gap to breakeven quite significantly. But as explained before, we can only do that if there is a stable situation. And if all the suppliers in the market are willing to service us also in Belgium in central structure. And we are on our way to achieving that, but we're not there yet, and we want to have a stable situation before we do the migration. It is expected that we can do this in the course of 2020.
Then on the network in Belgium. Physically, we're going to move further towards a one Sligro look and feel. But then we will first do the SAP implementation and then the full-scale rebuilding of the outlets that are still under the ISPC brand. We will do that later in 2021. And for 2020, it's important that we get the look and feel in the same way and that we get the SAP up and running. And that's also summarized on Sheet #36 and 37 under the same theme, the 5 key priorities for Belgium.
If I then move to the outlook for 2020 on Page #39, and this is the last sheet. Within stable markets comparable to 2019 in terms of market development driven by price, by the volumes in decline, and as a result, a bit of growth in the market. Cost inflation on transportation is normalizing again to the levels we saw before. So we're happy about that. Still a considerable wage increase to come. Negotiations are still ongoing. But we expect 3% to maybe 3.5% wage increase in 2020, which we have to absorb as we are used to, but that is still a significant cost impact to take into account. Of course, the focus will be on the 5 priorities as described. And given the uncertainty in the market still today, we are, of course, optimistic about that. Our plans are going to contribute to a improvement of our results. And we expect in a stable market to be able to do that. But that's too dangerous to make specific forecast for the year. So we're not going to do that for the year. For the longer term and then looking through the cycles that are typical for our market at the site and down site over the cycle, we think that based on the plans that we have today, we should be able to go for long-term recovery to an EBITDA percentage of sales of around 7.5%, which is more or less equal of the previous guidance that we gave on EBITDA of 5% before IFRS impact, et cetera, et cetera. So based on all the information that we have today in the accounting system that we use today, this is the reported number that we are working towards and we are confident that the plans we have in place today and all the things we set in motion are -- eventually could lead to this kind of profitability.
That's my part of the elaboration of the sheets. And now there is room for questions if there are any.
(Operator Instructions) There are no questions, sir. Please continue.
R. W. A. J. van der Sluijs, Sligro Food Group N.V. - CFO & Member of Executive Board 
Okay. Thank you, and I would like to thank everybody for dialing in to this call. I hope we gave everybody a view on what happened in 2019 and the positive view we have on 2020 on our way to recovery. So thank you for listening now, and I know that I will speak to some of you at a later stage. Thank you, and hope to speak to you again. Bye-bye.
Ladies and gentlemen, this concludes the Sligro Food Group event call. You may now disconnect your lines. Thank you.