Jumbo Sa Unsp/Adr

Ladies and gentlemen, thank you for standing by. I am Maria, your chorus call operator. Welcome and thank you for joining the Jumbo conference call and live webcast to present and discuss the full year 2025 financial results. All participants will be in a listen-only mode and the conference is being recorded. The presentation will be followed by a question and answer session. Anyone who wishes to ask a question may press star followed by one on their telephone. For the webcast participants, you can submit your questions in English. Should anyone need assistance during the conference call, you may signal an operator by pressing star and zero on your telephone. At this time, I would like to turn the conference over to Mr. Apostolos Evagelos Vakakis, Chairman of the BOD, Mr. Polis Polikarpou, CFO, and Mrs. Amalia Karamizoli, Head of HR. Mrs. Karamizoli, you may now proceed.

Thank you, Maria. Good afternoon, ladies and gentlemen. Thank you for joining Jumbo's annual investor and analyst conference call. Before we begin, I would like to briefly walk you through the key highlights of our performance, and then I will hand over to our chairman, Mr. Apostolos Vakaitis, for further comments. 2025 was another year of solid performance and resilience for the group. Total sales increased by 7% on a year-on-year, reaching approximately 1.23 billion euros, reflecting sustained demand across all our markets. Gross margins stood at 54.7%, slightly lower compared to last year, mainly due to the increased contribution of franchise operations, which carry lower margins. On a comparable basis, EBITDA rose by 5% to 436 million euros, while net profit increased by 4% to €320 million. Importantly, we continue to maintain a very strong balance sheet with a net cash position of €473 million, providing us significant flexibility to support our investment plans. Return on capital employed remained very high, at 27%, underlying the efficiency of our capital allocation. During the year, we continued to return value to our shareholders. Total cash distribution reached 131.5 million euros, while we also proceeded with the buyback and cashing of 1.25% of the total sales. At the same time, we continued to expand our footprint. We opened our second store in Mesoara, we launched our online store in Bulgaria, and we acquired three previously stores in Greece, further strengthening our asset base. Growth was broad-based in all our regions. Greece recorded a 9% increase in sales, Cyprus grew by 8%, Bulgaria by 5%, and Romania by 4%. This performance reflects both strength of our brand and also our ability to adapt in local market conditions. Moving to the year ahead, we started 2026 on a positive note. Group sales for the first quarter increased by 7% year-on-year. Greece and Bulgaria posted a double-digit growth of 11%, while Cyprus reported a 4% increase. And Romania, on the other hand, saw a decline of 4%, reflecting more challenging microeconomic environment in the country. Also, during the first quarter, we proceeded with the cash distribution of approximately €67 million or €0.50 per share, further demonstrating our commitment to our shareholder returns. Our strategy remains focused on expansion and long-term value creation. In Greece, we plan to develop at least four new stores in the next three years. While in Cyprus, we see that there is room for two additional stores in the medium term. In Bulgaria, we expect to add one more hyperstore within the next two years. And in Romania, a new store in Baia Mare is scheduled to open in 2026. More broadly, our plan in Romania is to open at least one new store per year with the objective to double the number of the stores in the next decade. At the same time, our franchise network continues to grow dynamically, both within existing markets and to new territories. Currently, our partners operate 45 stores across seven countries. Specifically in Israel, we expect three to four new stores openings in 2026, while their entry in Canada is progressing, and the first store in Toronto is expected in early 2027. We also continue to invest in the improvement of our e-commerce platform. Our focus is on improving customers' experience, operational efficiency, and we're also exposing the expansion of new markets. At the same time, we invest in our logistic infrastructure. which is critical to support our expansion. We have agreed to acquire 60,000 square meter distribution centers in Romania, while two additional distribution centers are under development in Greece. Total investments in logistics are expected to exceed 95 million euros over the next three years. Looking ahead for 2026, we expect sales rules at around 5%, net income to range between 310 to 320 million euros, and capital expenditure close to 60 million euros. To conclude, Jumbo continues to demonstrate strong fundamentals, consistent profitability, and a clear strategic direction for future growth. Thank you for your attention. I now hand over the call to our chairman, Mr. Apostolos Evangelos Vakakis, for your question.

Good afternoon everybody. I'm ready for the first question.