Premier Foods plc

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the premier first quarter one training update conference call. At this time, all participants will be in a listen-only mode. After the speaker presentation, there will be a question and answer session. At which time, if you wish to ask a question, you will need to press star and one in your telephone keypad. I'm not surprised that this conference is being recorded today. And I would now like to hand the conference over to first speaker, Mr. Alex Whitehouse. Thank you. Please go ahead.

Thank you and good morning everybody.

Thank you for joining the call for our quarter one trading update which covers the 13 weeks to the 27th of June 2020. I apologise for the slightly delayed start. It seems to have taken quite a long time to process everybody and get them on the call so we thought it was wise to wait until we got everybody but now we can press ahead. So I'll give a brief introduction to the first quarter trading and then we'll open the call to questions. I'm also joined on the call this morning by Duncan Leggett, our Chief Finance Officer who will also be around for answering questions. So overall our headline group sales for the 13 weeks to the 27th of June are in line with what we highlighted at our preliminary results five weeks ago. with sales increasing by 22.5% compared to the same quarter a year ago. Now, of course, we all know a large part of that sales growth is due to people cooking and eating the vast majority of their meals at home. Obviously, there have been very few opportunities for eating out of home over the last few months. However, I think aside from that effect, I think it's important to note that we were, in any case, expecting to continue to deliver good progress to our branded growth model strategy and maintaining the positive momentum from last year. But I'll come back to that shortly. is take a look at that 22.5% growth in the quarter and draw out a few of the key trends as to how different parts of the business have performed during what has obviously been a rather unusual quarter's trading. If we start with the branded grocery business, sales increased by 39.2% in the quarter and this of course is where we've seen the main impact from consumers eating most of their meals at home and that's resulted in much greater demand for our grocery brands. So some of the major brands actually delivered particularly high sales growth, so above that 39.2% average and I'd probably pull out OXO, Ambrosia and Sharwoods in that. And also our Mission Noodles which have seen very strong demand continuing and with sales more than doubling as consumers continue to enjoy the authentic missing sober and missing cup noodles. It's also interesting that the growth isn't just due to the same households consuming more of the same stuff, it's also a result of additional households buying into our brands and if you look at household penetration for our grocery brands over the quarter increased pretty sharply by 620 basis points back over the 12 weeks of the middle of June. So what that's saying is that over 6% more UK households bought into our brands than in the same quarter a year ago. So that's up from just under 69% to now 75% of all households, which for a quarter is a really high number. So again, a significant increase and it serves to indicate that we're seeing new consumers coming in and buying our brands and encouragingly this appears to be quite broadly based across the demographic spectrum. A really good example of that is our Sharwoods brand where we saw an additional 2 million new shoppers buying at least one of our Sharwoods products over the last 12 weeks. And Charles isn't alone. We saw similar trends across many of the brands with around 1.7 million new shoppers buying each of Ambrosia, Bisto, OXO and McDougall's flour. So it's very much across the board. So all these data points I think provide further evidence that as I said before in the prelim results a few weeks ago that Britain has got cooking again and consumers are expanding their repertoire of meals that they are preparing and eating at home and then including our brands in these new recipes and that's important because if these consumers continue to cook and enjoy those new recipes we might expect them to continue to use our brands in those recipes into the future. We also see this trend for trying new recipes in the sales of our new recently launched products. So you'll be aware we have a very aggressive NTD agenda and our new products actually accelerated faster than the core range, again reinforcing the fact that consumers have been looking to experiment and try new things during lockdown. You may recall actually last year we reached an innovation rate of 6.5%, so that's 6.5% of our branded sales being derived from new products and this year in quarter one that rate has risen quickly above 7% and that's again indicating the acceleration of the new products as people try different recipes. One of the product ranges that's actually particularly popular is the Cadbury Baking Mixers and that's obviously due to the recent trend for home baking and we have actually just launched a range of Cadbury Baking Mixers and also Mr Kitchen Baking Mixers at the back end of last year, so in the right place at the right time of day. But also our Sharwoods 30% lower fat cooking sauce range has also performed very well. And these low fat versions are actually part of a wider commitment. We've got to offer at least one healthy option within each of our core ranges. So it's really good to see those products performing well. Now while our categories have seen some very strong growth, in the first quarter for all the reasons that I've just highlighted. I'd also just like to point out that, again, just as we did last year, we've grown faster in all the categories that we play in. So consequently, we've gained market share in all those categories. In fact, actually around 200 basic points of market share gain in several of our key categories. And that's typically come at the expense of own label in those categories. And we believe this is due to, primarily due to two key factors. I mean, firstly, we have strong market leading brands and we've got great new products. And we've already discussed that those new products can be faster than the core business. But what's also been key over the last quarter is simply keeping our products in stock and on the shelf and available for shoppers to buy. And I think we've done a particular job on that front actually. You may remember I said at the beginning of the COVID crisis We said we believe we've got an important responsibility to do our bit to keep the food supply going and keep the shelves stocked. Throughout, we've put a huge focus on maximising our output from our supply chain. And delivering a consistent high level of availability of our product ranges, of course, working really closely with our key retailers. And I think this is testament to the excellent, sustained and dedicated work of all our colleagues across the supply chain. And as I've also mentioned in previous updates, we took decisive action back early in March to put in place a raft of additional hygiene and safety measures across the supply chain to safeguard our employees. through these very difficult times and so far this has worked well for us and all our sites have remained fully operational so I would like to say a big thank you actually to all our teams which have consistently maintained these high standards and helped us to continue to do our bit towards feeding the nation. I also want to talk about online, so the online channel and by that I mean the sales that we make via our retail partners online services and websites. And I know we're all aware that this channel has seen very significant growth since lockdown, as many households have chosen or in fact actually have been restricted to shopping for groceries from home. And in fact, sales of our brands online more than doubled over the first quarter, so increasing by 115%. And we're going ahead of the channel and taking 270 basis points of market share. And the background for this is that we've been working hard on our online presence now for the last couple of years actually, investing in our online capabilities, ensuring our brands are presented and marketed effectively online, using the tools that are available in that channel, which are a little different from what you've got in standard bricks and mortar retail. And that's now clearly working really well for us. If I now switch to Sweet Treats, For our Sweet Streets business, we saw a more modest trend in the quarter, sales up 0.7% and branded up to 0.5%. And this is a mix of a soft April with volumes down for the entire category as consumers focus on buying core essentials and then a much stronger performance and with our brands very much back on track through May and June and supported by strong commercial plans and with Mr Kipling back on TV using that successful Little Thief advertising campaign he had. Sales also helped there actually by recently launching new products so I'd include in that the Mr Kipling's mini range and the Signature premium ranges but also actually the core Cadley mini rolls also had a really strong growth quarter And manufacturers took on non-branded sales which overall were down 3.3% with grocery down 4.5% and sweet treats growing by 1.7%. And the two key factors here sitting behind that grocery decline were declines in our business-to-business volumes from our Knighton and Charnwood businesses and they both supply out-of-home food and drink outlets so that's not really surprising. And it was partly upset by stronger demand for non-branded grocery products that we sell into our retail customers. And then moving briefly on to our international business, so sales at constant currency were up 13% compared to the same quarter a year ago and you'll recall that at the prelims a few weeks ago I outlined our new strategy for international. We believe there remains an interesting opportunity for our brands to grow in international markets and we're well into the implementation of that new strategy and I think we're making good progress. But it is early days and I don't want at this point to give you the impression that the course of performance is a result of that strategy already bearing fruit. That's going to take a little more time for the results to start to take effect. and in fact those Q1 numbers are really more down to a spot comparative in the base in Ireland where we have lower volumes last year than the aftermath of Brexit stock bills in the previous quarter. But in terms of how we're getting on in implementing the new international strategy, we've recruited a number of the key roles that are in the new structure and with the recent appointment of a head for Australia and New Zealand, we've now got three of the four market heads in place and we're also on the brink of appointing an American distribution partner for our cakes in the US. We're also now operating our Irish and UK businesses much more closely together. This is leading to a number of the successful UK new product launches being rolled out much more quickly into Ireland. And we're also working to replicate the success in the last couple of years with Mr. Kipling in the UK, which includes getting that UK TV campaign on air now. in Ireland and also making some tweaks to the promotional strategy. So I think early days but good progress in terms of implementing the strategy. And then lastly, just to touch a bit on capital structure, you'll remember that we redeemed £8 million of our £210 million selecting late notes in the quarter, and that was using cash that we generated during the course of last year. Those notes attract a coupon of 5% above LIBOR, so consequently, you can do the math, we expect to reduce the ongoing interest costs by over £4 million a year from now on. So now if we just look forward to the rest of the year, we expect that volumes are likely to return to more normal levels as we progress through quarter two and into quarter three, and that's obviously as the out-of-home sector opens up and we all start to feel more comfortable going out deep. However, as that happens and the current elevated levels of demand subside, we would expect a pick-up the positive momentum that we had last year by continuing to deploy our branded growth model that's now delivered as 12 quarters of back-to-back sales growth in the UK and I've said many times before but I'm going to repeat our branded growth model strategy is all about leveraging our well-known market leading brands and it continues to work well and is at the heart of everything we're doing and specifically bringing insightful new products and innovations to market based on really an in-depth understanding of current consumer needs and trends, supporting our major brands with emotionally engaging and meaningful marketing and advertising, and working closely with our key retail partners to deliver excellent in-store execution to our brands. So we'll be continuing to deploy that model, and we've got a number of exciting new products to come for the balance of the year, and we'll also be increasing the number of our brands supported on TV from four last year to six, this year, funded in part by the previously announced Cost Saving Initiatives Programme, which in particular I'd single out our Operational Excellence Programme, which includes things like the Smart Energy Initiative. As a reminder, by the way, we did double our median investment last year, some of which was new investment and some of which was achieved by switching other marketing spend around to put more into advertising. So with that in mind, I'm looking forward to the rest of the year. Quarter two has started strongly as we expected. However, as I've said, we expect this to steadily fall back to more normal levels as we go through the quarter and as we move into quarter three. And we expect to see progress then being picked up by our innovation plans and our brand support. In terms of the full year, therefore, we expect to continue to make good progress, employing that successful branded growth model strategy, and our recent upgraded expectations are unchanged, which includes further anticipated net debt reduction in the year. So, in summary, I'd say a very strong start to the year, very much helped by all those additional meals that have been eaten at home. But still to come, a strong pipeline of new products and brand support plans in place for the remainder of the year. I'd just like to take the opportunity to say a big thank you again to all our colleagues who've worked tirelessly over the recent months to help keep the food on the shelves. We are outperforming in all the categories in which we play and which themselves have been going incredibly strongly and that's a reflection of both the strength of our portfolio and I think the fantastic sustained efforts of all our teams to keep our product ranges So thank you very much for your time. I'll now pass back to the operator, and we'll be very happy to take any questions.

Thank you, ladies and gentlemen. We will now begin the question and answer session. And as a reminder, if you wish to ask a question, you will need to press star and one in the cell phone keypad. Hello, and the first question comes from the line of chat.

Good morning, everyone. Morning, Scott. Morning. Could you just provide a bit more detail on those impressive online numbers? Could you just talk a little bit about what you're actually doing in order to promote your products online and also comment on how broad-based it is? Are there any particular brands that stand out? And also, with the growth in the online channel, will you be looking at your portfolio line up and see any tweaks or changes or new product developments that might be more suitable for the online distribution model?

Yes, of course, Joel. So, as I said, we've been focusing online now for a couple of years or so. And, you know, obviously, it was anyway a high-grade channel that's clearly been accelerated quite dramatically during lockdown. But having identified it as a high-grade channel before, we've been working pretty hard on it. And, you know, my experience, the way you make this work is actually by A couple of things. It's doing a lot of what seem like fairly basic things very well. So it's things like making sure that your product naming strategy is very clear. So if you were to type in cooking sauce, that actually our products appear in your search. It's things like making sure that we've got product labels which are simplified so that if you're shopping from your mobile phone, which a lot of people do, clearly those images are pretty small and if you just had your normal product image it would be so small that you wouldn't be able to see it. So we work quite hard to make those things very clear so that people can see what they're searching for even from their phone. But in terms of the product range, the product range actually is pretty consistent with what we would sell in bricks and mortar. Whilst we would tend to see people will buy more and they'll buy heavier items online because they don't have to carry it, but broadly speaking there's no real need to tailor the portfolio if you like to the online channel.

Great and just one other question. With the lockdown period, did you see any material extra costs during that period?

As we talked about in the prelims, we've got some additional costs in the supply chain. So those incremental measures I talked about that we put in place very early in March, that extra clean downs and ways in which we separate people and keep shifts separate from each other. There are some incremental costs associated with that, but they're more than outweighed by the upside from the volume. Lovely. Thanks.

Thank you. And your next question comes from the line of Nicola Muller from Investbook. Your line is now open.

Hi. Good morning. A couple, if I may. First off, could you give any guide to how July is? You said all three months were in double digits, but clearly a stronger start to Q1 versus the end of Q1. I mean, my anecdotal evidence of how much people are reaching out is it's very patchy and people are still pretty cautious, I'd assume that the eating at home is still very much a valid point. And secondly, in terms of meeting that 39% increase in grocery, did you have a sort of a big stock depletion? I mean, obviously you've managed to keep your factories open, which has been fantastic, but just wondering whether you had to then give in to stocks as well and whether that needs to be replenished.

Thanks Nicola, hi.

So July we've said has started strongly. To be fair that's what we expected. So I think if we go back to previous we said we expected July to start pretty strong and then as we got to the end of September we'd be then starting to get more back to normal. The thing we're not clear about of course is what the shape of the curve looks like in between the two. And that really is going to be a function of the amount with which there is eating out capacity opened up and then the extent to which it's filled by people feeling comfortable with it. And again, that remains something that will play out and we don't know yet. But I think probably the only thing I can say at the moment is the lie started strongly, but we expected that. In terms of that 39% increase in the impact on stock, so at the end of the last financial year, so the end of March, I think you might recall we said that there was an incredibly strong peak of people stocked up their kitchen cupboards ahead of lockdown. And during that period, we did see a significant decrease of our warehouse stocks. Since then, obviously we've been backing from a low stock base, but we've serviced that demand therefore through incremental capacity and incremental output from the factories. So there are many examples where these new factories that were working 24 hours a day, say five days a week, up to six days a week and up to seven days a week. And that's where a lot of the capacity increases come from.

Okay, thank you very much.

Thank you. And your next question comes from the line of Martin Deboe from Jeffreys. Your line is now open.

Good morning, everybody. It's Martin Deboe at Jeffreys. I've got three, I'm afraid, that are sort of completely disconnected. So let me go through them. First of all, just a slight flip from Nicola's question about manufacturer stocks into consumer pantry stocks. Obviously, a concern of all companies that are benefiting from COVID like yourselves is What's the risk of any sort of unwind of pantry stocks? You know, particularly when you've got long shelf life products and the sort of nightmare scenarios, people with a pantry full of Lloyd Grossman jars they've hoarded. What is your sort of own internal analysis telling you about that? Clearly, the further we get from lockdown, the less of a risk that looks to be. But just what's your sense of that? First question. Secondly, conscious the government has launched these new draft regulations on high fats, salt, sugar, foods and restrictions on promotion. Early days, what is your initial assessment of that vis-a-vis premier food threat opportunity or something in between? And thirdly, if we just play out the scenario of a more permanent structural increase in demand, What is your sense of your available capacity? I'm sure you can manage a 20% quarter by building stock and whatever, but if you're in a permanently more structural demand scenario, what can you comfortably service from existing infrastructure before major capex? Is it 5% higher sales? Is it 10%? Is it 20%? Sorry, those are all rather different questions, but they're all important to me.

Sure, thanks for asking. So I think in terms of pantry stock unwind, it's difficult to be sure but it is our belief that the majority of that has actually unwound during the last quarter. So as people got comfortable that the food was available, that they gradually wound down their cupboard stock. But it's anecdotal. I mean, it's not that we don't have a quantification of that, but that's our current assessment. So we're not currently anticipating any any major snapback on that. We think it's already happened and it's buried, if you like, in the already strong growth from the quarter. As far as the government's anti-obesity strategy is concerned, I think overall we support the government's desire to improve the nation's health and I think we've got an important role to play that we've recognised for some time, in particular providing consumers with healthy choices and I know you're aware Martin we've done a lot of work on that in the last few years and I've talked a lot about the five key consumer trends that drive our innovation thinking. And health is the number one trend we work on. So we've now got better for you versions of more than 80% actually of all our core ranges. So things like low-salt versions of Bisco and OXO, the low-fat Charlotte sauces that I talked about. We've got 30% reduced versions of some of our best-selling cakes. And we've also, of course, launched entirely new, healthier products, including plant-based brand Plantastic. We'll have to wait and see the full details, but I think we're broadly supportive of the overall intent. I think specifically on the advertising point, for us, we're not actually advertising our brands to children anyway. Our brands are generally bought by adults as part of creating a meal, so the impact of advertising restrictions I think will be very limited for us. And then from a promotional point of view I think it's also important to recognise that we've got a very broad portfolio and there's a large number of products in there which don't fall into the high fat, salt and sugar restrictions. But we'll continue to work with government on it and give our input and we'll see where it lands. I think the first question was our ability to cope with the structural increase in demand. Should it happen? I think if I go back to the question that Nicola asked, I mean, we have serviced that 39% increase in grocery demand from production, not from stock. because our stock was already depleted by that cupboard stocking phase at the end of March. So on aggregate I'd say we can comfortably cope with what's likely to be down the road given that we coped with what we saw in quarter one. Obviously it depends on product range because you've got some lines more subscribers than others but broadly speaking I'd say that we're pretty comfortable that we coped with that 39% uplift in Q1, and therefore we're probably feeling pretty comfortable with what's likely to be ahead.

Okay, thank you.

Thank you. And your next question comes from the line of Clive Block from Sure Capital Markets, your line is now open.

How's it going, Jasmine? A couple of questions, please. Just building on Nicola and Martin's question actually, does that capability to meet the elevated level of demand imply that you're enjoying particularly positive operational gearing through the quarter and indeed into July? And could I just also ask about both the coronavirus-influenced market, how you see your SKU count panning out on an ongoing basis and indeed promotional participation, please. Thank you.

Yeah, sure. Thanks, Pat. I'll take the second one and then I'll pass the first one to Duncan, actually. If we look at SKU counts, we have worked really closely with our key retail partners and in a number of cases we've what we call rested certain SKUs and the logic there is If you've got a range of eight flavours of something and demand is on the brink of what supplies we can both cope with between us, if you drop off the last two or three flavours temporarily it just allows longer production runs in the factory, a synthesised supply chain and it just allows you to keep in stock. back end of that quarter and into quarter one when that was the case but gradually the vast majority of those SKUs are now back in production and back in store so that is essentially a temporary adjustment to help cope with the extraordinary levels of demand and so I don't really see any significant long or medium or long term change in SKU count as a result of that to be honest guys. The first question I think probably Duncan you might be in a better position to answer this one.

Sure. I mean, I think in terms of the gearing, more volume tends to be good, but I think it really does depend on what product, what lines and at what times. I think, obviously, the benefit in volume is predominantly through grocery. So that is reasonably helpful, I guess, Clive. So I think it's generally positive for us, but it does depend on exactly where the volume's coming from.

Okay. And if I just made a quick follow-up on market shares, just to be clear, within your major categories and brands, have you seen any notable movements in market position? You already had a reasonable number of number one and two positions, but could you just give us some colour maybe if there's been any adjustment in that this year. And maybe just comment on your sweet treat market share.

Please.

Yeah, sure. So I think, you know, we've Our market share gains have been very strong as I indicated in a number of categories. We've taken approximately 200 basis points of market share and we've actually increased market share in every single category. But that hasn't really changed the relative position, it's really just strengthened the already strong positions that we'd already got. In terms of street treats, yes, we've seen very strong share gains in street treats as well. The overall market volume was soft. at the beginning of the course, as I said, because everybody was focused on buying core essentials. And then as Steve implemented our commercial plans in what for us was periods two and three, and with Mr. Crickland back on TV, obviously in a low-cost media market as well, then that's really helped get our brand back into strong growth through periods two and three, but also very strong share gains, yeah.

Cool. Okay, well done. Thanks very much, guys. Have a good one.

Thank you. And your next question comes from the line of Atis Ali from Big Hall of Capital. Your line is now open.

Hey, morning, guys. Two questions from me. The first one is, when would you like to see net debt before you consider a refinancing of your debt stack? And secondly, would you consider achieving an investment grade rating as a management target? Thanks.

And I think both those questions are coming to Duncan, actually.

Okay. So, in terms of that target, we've obviously just come off of the back of the previous three times that target, and everyone constantly thinks that at year end. I think going forward, we haven't set an explicit target. What I would say clearly is, you know, we've been through the progress we've made over the last, 12, 18 months or so in debt reduction, but there's still a long way to go. So definitely looking for leveraged targets much, much closer to two. In terms of interest bill, clearly we used some of our free cash flow generated last year to sort of start a portion of the floating rate notes. That gives the £4 million benefit that Alex mentioned earlier. And clearly there's still some of that a quarter of a part. So I guess that could be a use for some free cash flow to get rid of relatively expensive debt. But clearly we've also got quite an expensive fixed rate note that we're well aware of. And and with the positive momentum. And, you know, that is something that we will be taking a look at for sure. I think on the specific ratings, clearly B-flat is somewhere off investment growth, but clearly, clearly with the positive momentum, we'd like to think that we might be able to improve on the current cost of violence that we've already got.

Thank you.

Thank you. And your next question comes from the line of Norwin Madda from Surrey Investment. Your line is open.

Thank you very much. Great numbers. I have three questions and I'll take them one by one if you don't mind. Number one was basically if we benchmark our products of fat and sugar compared to competition, how do they stack up?

Hi, thank you.

Good question. We've put a lot of effort into reducing fat, salt and sugar across our product range, actually going back over a number of years now. And as I mentioned earlier, producing healthy versions and healthy products has been at the top of our priority list within our already aggressive innovation pipeline. So we've made quite a lot of good progress. I think it's fair to say in a number of categories we would consider ourselves to be in a relatively strong position versus competitive set in terms of our credentials in that respect. So where we've taken sugar out of products, where we've taken salt out of products and where we've taken fat out of products. So we would consider ourselves to be in a relatively strong position compared to some other people.

Thank you very much. And my very limited research, nothing compared to yours really, has really, I mean, one common denominator that comes out is people's really lack of cooking skills in spite of buying many cookery books. Yeah. And my question to the management here is, Are we taking any initiatives and creating any programs, media, videos, whatever, whatever, to really thrive the cooking skills? And actually, that's confirmed by your sales of Nissen, the Nissen noodles. It, of course, requires very little effort, except something in the class of boiling some water. But are you doing something to drive up people's cooking skills, is my question.

Well, actually, we look at it in a slightly different way. But first of all, I think you're absolutely correct. And what we have seen so clear in our research is that the tapping down of core cooking skills from generation to generation has sort of peaked out. and you know I think the period of lockdown is slightly different so we can treat that separately but if we look slightly broader and slightly longer term and you know there is a diminishing skill set actually and that is actually the second priority within our renovation pipeline so if the first one is health then the second one is Actually we dub it as convenience but actually what we mean by convenience is finding ways and products that actually help you make a tasting healthy meal even if your skill set is more limited. And you see it in things like if you talk to consumers about scratch cooking, a number of years ago scratch cooking for most people would have meant buying individual herbs and spices and creating something absolutely from basic ingredients. But now, you know, if you talk to consumers about scratch cooking, what a lot of people will talk about is, well, you know, I cooked the chicken and I chopped the vegetables and did the pasta and then poured the sauce over it. And so our role there is in providing the sauce and making it easy to use so that people can still make a really, I would say, a very tasty, high-quality but healthy meal without necessarily, you know, being able to make a roux sauce from scratch.

Yes, sure.

That's probably the biggest way in which we tackle it.

Sure, thank you very much. And my last one, slightly connected on branding really is, Obviously, apart from TV and advertising, have you been active on social media and what has been the response to that?

Yeah, we are in some cases. So if you take our new Plantastic brand, it's a small brand in its infancy and with a very specific target audience that lends itself very well to social media but actually if you look at the majority of our big brands the sheer scale of the number of purchase acts means that actually you know television is the is the best way to reach a very broad audience very quickly so if you think about And if you think about it, to deliver our total sales number, we sell somewhere between 1.1 and 1.2 billion consumer units, just to put it in context. So it's millions and millions of households buying multiple products multiple times a year. And having a social media following of a few tens of thousands of people or whatever really doesn't help significantly with that. What makes a big difference when we're talking about that many units is actually having really great TV campaigns that build strong emotional connections with consumers, coupled, of course, with all the activities that we do in store.

Thank you very much and all the best.

Thank you. There are no further questions at this time.

Please continue. Okay. Any last questions or should we wrap it up there?

Then no further question at this time. Please continue. Okay.

All right. Thank you very much, everybody, for dialing in, and have a great day. Thank you.

Thank you. That's the end of the conference for today. Thank you all for participating. You may now disconnect.