Robinsons Retail Holdings, Inc.

Good afternoon, everybody. Thank you for joining us to review RRHI's unaudited 2020 financial results. I am Gina Dipaling, the company's investor relations officer. On this call, you will hear from our president and CEO, Ms. Rubina Gokongwepe, our CFO, Ms. Maylene Casiban, our managing director of the supermarket segment mr jody daria our deputy gm of our robinson's department store uh miss carmina the group general manager of diy effects and mass merchandise mr stanley paul our deputy gm of ministop mr shoresh Our general manager of South Star is Christine Tuarez. Next slide, please. This presentation will cover the financial highlights of our operations for 2020, an update on our store network, a detailed discussion on our financials on both the group and per segment level, some recent company developments and our plans and prospects. A brief question and answer session will follow the formal presentation to be answered by the management team. As a reminder for the Q&A portion, please use the Q&A function on your Zoom dashboard. We will appreciate it if you limit yourself initially to a maximum of three questions, including follow-up, so we can accommodate as many participants as possible. You may queue back. in for further questions. If you have any concerns regarding the sound quality of the call, please feel free to send your concerns via a private chat to the host, Eric Prisolubo. With that, I'll turn it over to our president and CEO.

Good afternoon, everyone. Let me summarize RHI's consolidated results for the 12-month period ended December 2020. Blended Saints store sales growth of minus 8.9%. Store portfolio of 2,157 stores and 2,025 PGP franchise branches nationwide. Online sales grew three times year on year. 7.3% shortfall in consolidated net sales. Gross profit margin at 21.8% of sales. Even the margin at 8.5% of sales after PMRS 16 and net income attributable to equity holders of the parent company was at 2.9 billion for 2020 after PMRS 16. Robinson's Retail ended the year with 2,157 stores. composed of 264 supermarkets, 49 department stores, 225 DIY stores, 472 convenience stores, 829 drugstores, composed of 532 South Star drugstores and 297 Rose Pharmacy stores, and 318 specialty stores, including the 2,025 franchise stores of PGP, the group store network totaled 4,182 stores. We currently have four banners on their supermarket, Robinson Supermarket with 143 stores, The Marketplace with 35 stores, Shopwise with 16 stores, and Robinson's Easy Mart with 70 stores. In 2021, we target to accelerate the expansion of Robinson's Easy Mart or Mini Mart banners. We have accelerated our e-commerce presence by launching our own e-commerce sites, namely GoRobinsons.ph, SoundstarDrag.com.ph, and RobinsonsAppliances.com.ph. We also sell via third-party platforms and have call and collect delivery service. GoRobinsons is a concierge service that picks up from the stores, so it is an asset-like operation. It now has a mobile app which can be downloaded in iOS and Play Store. The platform is also integrated with the Robinsons Rewards Program, whose 3.1 million members can earn rewards points if they purchase products through GoRobinsons.ph. RHI ended the year with consolidated net sales down by 7.3 to 151 billion, mainly due to the COVID and the lockdowns. excluding Rose Pharmacy net sales declined by 8% to 149.8 billion. Blended same-store sales growth was minus 15.6% in the fourth quarter and minus 8.9% in 2020. The supermarket segment posted positive 7.7 SSSG for the year, while the drugstore segment recorded flat SSSG given the high base of plus 9.9% last year and the reduction in sales of prescriptive medicines due to less people going to hospitals. Meanwhile, the rest of the formats registered negative SSSG, mainly due to the lockdowns imposed by government and ordinances prohibiting individuals below 15 and above 65 years old to go out. aggregate online sales rose to 1.4% of total RHI sales in the fourth quarter compared to only 0.2% in the first quarter of the year. It reached 1.6 billion in 2020, registering three times increase in accounting for 1.1% of total sales from 0.4% the previous year. With no change in full year figures, we restated our quarterly 2019 financials to make the impact of PMRS 16 comparable with 2020. Gross profit was 22.3% in the fourth quarter, mainly due to the consolidation of Rose Pharmacy. Due to lack of scale, Rose Pharmacy does not enjoy the same margins as South Star Drug. But matching trade margins will be our top priority, just like the time we gained margins from the consolidation of Robinson Supermarket and Rustam Supercenters. Excluding Ross Pharmacy, gross margin increased to 22.6% in the fourth quarter. For EBITDA, RHI has implemented cost containment measures to cushion the impact of weakened sales performance. OPEX has percent of sales declined by 80 bps. Net income attributable to equity holders of the parent company declined by 25.2% to 2.9 billion in 2020. The next speaker will be Jody Gadia, who will discuss the supermarket segment.

Thank you, Ms. Rubina. Good afternoon, everyone. The year-to-date consolidated net sales of the whole supermarket segment of RHI was at 94.1 billion. This was 66.3%. higher than last year's level uh this was despite uh fourth quarter 20 slow down uh where sssg or same source hills growth is to 2.3 percent minus 2.3 percent caused mainly by the decline in mall food traffic particularly in stores based in central business district malls or cbd malls as more people work from home now as well as increasing competition from social commerce and online grocery platforms. Year-to-date same-store sales growth, however, still ended at a robust 7.7% given the strong pandemic-induced sales in the first three quarters of the year. Our fourth quarter online sales amounted to 1.4% of total company sales. Meanwhile, year-to-date 2020 online sales breached already the 1 billion mark, representing 1.1% of total company sales and 3.1% of the total sales of all 58 stores that offer this online grocery service. Our gross margins expanded by 90 basis points up to 22.1% in the fourth quarter of 2020. driven by the recovery in back end margins or other income as we call it, narrowing the decline for the full year by 20 basis points to 20.8%. The margins likely declined by 10 basis points to 8.6% in the fourth quarter of 2020, but expanded by 60 basis points to 8.4% in the whole of 2020. due to the cost efficiencies from the integration of restaurants, rent discounts that we were able to avail of, and better DC, or distribution center, cost recovery. As of end of the year, December, we have 143 Robinson supermarket stores, 35 The Marketplace, 16 Shopwise, and 70 Robinson's Easy Mart, bringing our total network to 265. 264 stores. Our next speaker will be Nina to discuss department store.

Thank you, Mr. Dalia. Robinson's department stores net sales were down 45.2% to 3.4 billion in quarter four 2020 with full year net sales at 8.5 billion. The categories for the least decline were home at minus 33%, driven by kitchenware, small appliances, and storage at minus 19%, sports accessories at minus 24%, men's undergarments at minus 37%, health and beauty at minus 39%, and infants at minus 41%, driven by accessories at minus 27%. Online sales, including call-in collect, delivery, or reshop for use, increased 7x from the previous year. Although SSSG for the quarter was still weak at minus 45.6%, this was an improvement from the minus 59% and minus 79.6% recorded in third quarter and second quarter respectively. Full year, SSSG was at minus 52%, mainly due to the low footfall a low foot jacket and drop in back-to-school sales due to the shift to online classes and increased competition from online shops. Despite the 50 bps decline to 27.3% in Q4, gross margin for 2020 was up by 190 bps upon 29.6%, benefiting from higher DCPs that started in the fourth quarter of 2019 and improvement in category mix. Fourth quarter 2020 EBITDA margins was at 5.3%, an improvement from the 1.5% required in the third quarter of 2020, with full-year EBITDA margins at 3.3%. We ended 2020 with a total of 49 department stores. So let me pass you on to Mr. Stanley Paul.

Thank you, Mina. The DIY segment posted 3.7 billion in net sales for 4Q 2020, down by 8.9% from the same period last year. Full-year net sales reached 11.4 billion, 21% lower year-on-year. Total e-commerce sales reached 1.5% of sales in 2020 from 0.3% last year. 4Q SSSG at minus 11.7% was a vast improvement from the 49.8% decline in 2Q and 18.6% decline in 3Q due to a slightly better mouthful fall towards the end of the year. Full-year SSSG ended at minus 23.4%. Categories with the least decline were cleaning at minus 6.7%, pet food at minus 11.6%, and lawn and garden at minus 13.6%. Gross margins contracted by 170 bps to 29.1% in Q4 due to markdowns to flush out old inventories but was maintained at 32.5% level in 2020 supported by the gains achieved in the first nine months. OPEX as a percentage of sales improved by 30 bps mitigating the decline in gross margin with EBITDA margin down by 90 bps to 14.3% in Q4. We read EBITDA margin compressed by 70 bps to 15.5%. Our DIY portfolio totaled 225 stores, comprising of 177 hand-demand duitless stores, 32 true value, and 16 Robinsons builder stores. I will now turn you over to Suresh for the CVS segment.

Good afternoon, everyone. Thank you, Stanley. um we stopped system-wide sales at 1.4 billion in quarter 420 was a decline at 45.4 percent year over year but an improvement from the negative 47.77 percent in quarter 320 fully system-wide sales and Gross profit and royalty income margin dipped 90 bps to 34.2% in 2020 due to the higher number of the company-owned stores. Meanwhile EBITDA margin was lifted by the steep decline in operating costs advancing by 490 bps to the 8.3% in Q20. including subsectional rental discount being negotiated. This was turned around from the negative EBITDA margin registered in quarter 2020, bringing full-year EBITDA margin at 6.6%. We ended the year with 472 mini stock branches. Thank you. I'll hand over to next speaker, Christine.

Thank you, Suresh. So net sales of the drugstore segment grew significantly by 14.8% to 5.4 billion in the fourth quarter of 2020, and 7.8% to 19.1 billion in 2020, mainly due to the two-month consolidation of Rose Pharmacy. Excluding Rose Pharmacy, net sales increased by 1.1% to 17.9 billion for the full year. Contribution of online sales increased to 0.7% in fourth quarter from only 0.3% in second quarter when it started. The drugstore segment registered negative SSSG for fourth quarter of 2020 due to the following. High base effect of the 7.4% in 2019 from the meningococcinia scare, rapid progression of dengue in the country, and flu outbreak. and also the significant decrease in hospital visits due to the fear of COVID contamination and the imposition of consultation limits that hampered the growth of prescription medicines. Meanwhile, 2020, SSSG was flat. Blended gross margins declined by 180 bps to 16.7% in the fourth quarter of 2020, and 30 bps to 19% impacted by the consolidation of the lower-margin business of gross pharmacies. Excluding Rose Pharmacy, gross margins increased by 10 bps to 19.4%. Rose Pharmacy recorded higher operating costs, which dragged down the consolidated EBITDA margin by 30 bps to 9.1% in 2020. Excluding Rose Pharmacy, EBITDA margin of the drugstore segment rose by 10 bps to 9.4% in 2020. We ended the year with 532 Southstar drugstores, 297 Rose Pharmacies, and 2,025 TGP branches. Now I hand it over to Ms. Mylene Casiban for the specialty store segment.

Thanks, team. The specialty segment contributed $4.1 billion in the fourth quarter, bringing full-year 2020 net sales to $13.3 billion, down by 31.2%. The decline in sales was due to the shorter operating time as quarantines and LGU lockdowns remained in effect. By format, the consumer appliances and electronics format contributed 61% of total specialty sales, followed by Dyson and Grocery with 12%, Dyson Ask with 11%, and the balance from Fashion and Beauty, Super 50, No Brand, and Pet Lovers. We have been closing down fashion stores since 2018, with the last store closing in April 2021. We did not buy any new inventory for the whole year of 2020. SSSG of the specialty segment was at negative 27.6% in the fourth quarter. Holiday season lifted sales in December, but was not enough to upset weakness in prior quarters. Full year SSSG was at negative 28%. E-commerce for 2020 rose to 1.8% of sales from 0.7 last year. Gross margins shrunk to 19.8% in the fourth quarter and 20.6% for the year. Margins for the appliances remained compressed in the last quarter of 2020, partly offset by margin improvement from the toys segment. EBITDA margin fell to 6.4% in 2020 due to the challenged same-store sales growth. The specialty stores has 318 stores as of end 2020. Moving on to our working capital, our orange ice cash conversion cycle was at 1.3 days in 2020 versus negative 6.7 days during the same period last year due to the negative same-store sales growth. and the consolidation of Rose Pharmacy. We only have two months of sales, but we have the full amount of inventory. Moving on to Capex, the group spent 2 billion in capital expenditures for 2020. Supermarkets accounted for the biggest share at 61%, followed by department stores at 11%. I will now turn you over to Ms. Robina.

I would like to discuss two minority investments of RRHI. Number one is Grocery. GroSari is the Philippines' first tech startup which provides B2B grocery delivery services to Sari Sari store owners through a mobile app. Merchandise is sourced from Robinson supermarket branches and GNV has grown exponentially to 2 billion in 2020. 2021 target is to increase GNV two to three times and to double the number of Sari Sari stores. The second one is Data Analytics Venture Sync, or DAVI, where RRHI has a 40% stake in. DAVI manages the Robinsons Rewards Card Program, and as of January 2021, it has approximately 3.35 million Robinsons Rewards members, and a total member spend of 5.7 billion, or a 49% increase year-on-year. As part of our initiatives to foster more in-depth conversations around sustainability, we conducted a town hall on sustainability and the supply chain. We got to visit the speakers from RHI and JGDEV to talk about how the supply chain has improved over time and what opportunities there are to make it more sustainable. Tandyman do it best in our J.D. Parker and Bender Earth Trading Launch Relief Efforts in the Gaspi City, Albine, Guiraca, Taduanes for communities affected by typhoon Rolly. That was in December 11 and 12 last year. South Star Drugs' most recent run of outreach projects were conducted from November 11, 2020 to February 4, 2021, gaining over 1,300 beneficiaries across cities and provinces in the Philippines. Last February 5, 2021, Robinson Supermarket and Shopwise handed over a combined donation of around 2.9 million to World Vision in cash and in time. World Vision is a global humanitarian organization devoted to improving the lives of children. We go on to our financial expectations and guidance for 2021, which are as follows. New store additions of 80 to 120. Organic capital expenditures of 3 billion to 5 billion. Since store sales growth target of flat to 3%. gross profit margin guidance of flat to 20-inch gain. And lastly, we will continue our sustainability journey as we further embed ESG into our business. For e-commerce key priorities, GoRobinsons.ph currently serves as an online store for Robinson Supermarket, The Marketplace, Shopwise, Toys R Us, No Brand, and Handyman. It is set to onboard additional formats this year. We also plan to activate more formats in Go Robinson's and other third-party platforms. Last year, we will leverage on the Robinson's Rewards loyalty base to increase awareness to our online stores. We target to achieve e-commerce sales of between 2% to 3% of total sales in 2021. At this point, we will now open up the call for Q&A.

Okay, once again, we are now open for Q&A. Please send your questions via the Q&A function on your Zoom dashboard. Okay, we have one question via chat from Jess Fabrogo. Can you break down new stores of 80 to 120 by format? Again, can you break down new stores by 80 to 120 by format?

For supermarket, we're looking at 15 to 20 stores. For the drugstore business, including Rose Pharmacy, we're looking at 30 to 50 stores combined. For DIY, We're looking at 10 to 15 stores. Convenience stores, 20 to 30 stores. And then for specialty stores, because of the closures, probably less than 10 stores.

Okay, thank you, Ms. Gina. Okay, we have three questions from Friedrich Daniel de Guzman. Okay, the first one is, how much did Rose Pharmacy contribute to EBIT and net income in 2020? What is the glide path profitability for Rose? And what is the expansion plan for this format? Start with that one first.

Rose Pharmacy has posted negative EBIT in 2020, just for two months of operations. Oh, sorry. two months since we took it over, the business, but it's very minimal. It's less than 20 million pesos only. For 2021, we're expecting the business to turn around, mainly coming from the Alignment of trading terms. We're expecting gross margin to increase between 100 to 200 BIPs for this year. And also because of cost containment measures that we are implementing.

Okay, the second question is, can you share how much one-time cost did you book in 2020? Any one-time store impairments from the closure of stores? And how much was FX gain or loss and other income expense?

The forex loss was around $171 million. We posted positive $170 million on equitized earnings from our affiliates. In terms of other income and expenses, it's around positive $150 million. The bulk of it is coming from the gain on sale of Schick Center.

Okay, for his last set of questions, can you walk us through the per segment SSSG assumption for 2021? Given the low base in 2020, why are you expecting a 0 to 3% SSSG in 2021? And lastly, are you seeing any weakness in the early part of the year?

First quarter of last year was Yeah, we posted strong same-store sales growth, mainly coming from supermarket and drugstore because of pantry loading and because of people panicking and buying vitamins and minerals. And of course, the first two months of the year was pre-pandemic, so we had positive same-store sales growth. We're expecting a turnaround in same-store sales growth starting 3Q because we're coming from a low base as most of our businesses already posted weak same-store sales growth, negative same-store sales growth, including supermarket.

Thank you, Ms. Gina. The next question comes from Rainer Yu. What is... What has been done to minimize OPEX for all segments in 2020? And will it be sustainable for 2021? Again, what has been done to minimize OPEX for all segments in 2020? And will it be sustainable for 2021?

Yeah, the biggest would be the rent concessions. And then we have some headcount reductions.

Synergies, of course.

And then the synergies savings from the integration of the stacks.

Thank you, Ms. Gina. Okay, the next questions come from Berlyuan Yen. For supermarket, Q4 SSS and whole year SSS versus revenue, i.e. contribution from SPAR count was their supermarket closures?

As I mentioned earlier on, the fourth quarter seeing store sales growth of supermarket was minus 2.3%. And for the whole year, was it the whole year question? 7.7, so minus 2.3 fourth quarter, but overall 7.7 because we really had a strong head start the first three quarters. There was not much growth from new stores because we only opened three stores, barely, well, two small ones, Robinson's Supermarket and one Robinson's Supermarket. And there was one closure. We closed one Shopwise Express store.

Okay, thanks, Sir Jody. So the next question comes from Stephen Oliveiros of ChinaVac Securities. So he was asking, Can you provide full year 20 revenues, gross profit, EBIT, and at the mutual net income, excluding Rose Pharmacy?

We'll get back to you on that. Can you just please send me an email?

Okay, thanks, Ms. Gina. The next question is from Janet Butan. What was Rose Pharmacy revenue in 2020, and what was the two-month contribution?

Sorry, what was the sales?

What was the Rose Pharmacy revenue in 2020 and what was the two-month contribution?

Net sales was around 1.2 billion.

Thank you, Ms. Gina. We also have a question via chat from Jess Todrogo again. What is the expectation of SSSG for supermarkets in the first quarter 2021 and 2021?

First quarter 2021?

Yes, sir. And full year 2021.

Double digit decline.

Starting slow, actually, but we do expect a very tepid performance, primarily because March last year was the highest, highest ever same-series sales quote that we had, no? But we're looking at basically a flat performance for the first quarter for the supermarket. Flat to a little bit negative, single-digit negative, yeah.

Okay, thank you, Sir Jody. So the next set of questions comes from Carissa Magbayo. What's the reason for the significant decline in royalty rent and other revenues in Q4, and was it a bigger decline versus previous quarters? And the second question is, for supermarkets, why did it beat the margin, did not expand, despite GPM improving year on year in Q4 2020? And lastly, for department stores, Why the GPM decline year on year and for Q20?

We are planning to introduce a new franchise package for Ministop. So a number of our franchise packages were converted into outright before we will, sorry, to direct before we will resume on increasing the number of franchise stores. That's the reason for the decrease in royalty income. The other reason is because rental income was also down because some of our stores, especially supermarket, were the number of for recess decline.

Yeah, that's one of the reasons also. But to answer the decline in Is it a bit back? The question is a bit back. Primarily, this is driven by lower back-end margins. Due to the pandemic, there were less new product launches, so lower listing fees. And then we deferred some of our, during the first three months of the ECQ, we deferred implementation of category promotions that usually fetch hefty backend margins. And one of the single biggest declines also would be on new store opening fees as compared to 2019, where we opened close about 15, 16 stores. As I mentioned earlier on, we only opened three. So those were the three major reasons. In addition, maybe I guess, well, we have to be one of the key revenues of driver of revenues also for supermarket would really be the penalties that we impose on our vendors for late deliveries and non-fulfillment or lower fill rates for orders. We waived those penalties when the ECQ was imposed all the way up to the third quarter of this year. So we restored the imposition of penalties starting the fourth quarter.

What was the question in the department store?

Why did GPM decline year on year in 4Q20?

We see from the aggressor that were given for the last quarter of the year. In addition, some of the debt subsidies have gone down because some of the store officials have no money.

Okay, thank you, everyone. So the next questions come from Ruthie on GroSari. For your GroSari investment, can you provide more detail on how many Robinson supermarket stores now cater to sales made through GroSari? As the sales through GroSari grows, should we expect GPM to come down or are margins for sales to GroSari consumers the same? Also, in terms of their Sarisari store customers, how many are they serving now? We assume this is a base you will be using for the target to double this year.

Would you like to answer the first part of your question is how many stores now? We have 10 actually servicing grocery, 10 hubs, we call it, or 10 supermarket stores. What's the second question?

As the sales through GoSari grows, should we expect GPM to come down, or are the margins for sales to GoSari customers the same?

Are you talking about margins? Are you talking about margins of vendors just to GoSari?

No, these are margins, Nathan, because we're selling more our margins. I guess it's off the Robles Supermarket P&L, right? Yeah, it's in a separate P&L. that we don't record is basically impacting our GP, gross profit margin. Because primarily, I guess the way the business model states, we just basically pass on our goods to Grocery, which handles essentially the selling directly to the Sari Sari stores. But it's a different P&L.

So last set of questions. In terms of sari-sari store customers, how many are they serving now?

They're currently servicing 20,000 direct accounts and growing.

Okay, thank you, Sir Jody. So let's first have the questions from Kip Nguyen. Could you share the reasons for deteriorating year-on-year growth trends in specialty and 4Q? And could you share some color for 2021 year-to-date SSSG by format, especially in supermarket?

By format?

By format.

What's up for the next year-to-date?

What's the question again? Is that year-to-date target for 2021?

What are the reasons for deteriorating? Can you make it darker?

Could you share? In fourth quarter, could you share some color?

Is that here today?

What do you mean by trends? Is that sales? Yes. So gross margin trends.

I mean, historically, G4 is our highest for specialty last year, hence the high decline in the fourth quarter. We also have a sludge that hits October, November.

Yeah, and also some storms. Major typhoons. Typhoons, yeah.

Thank you for... Okay, the second question is, could you share some color on 2021 year-to-date SSSG by format, especially in supermarket?

Same store for... Is it year-to-date, Jan Coupang? Well, we will report the SSST once the quarter ends.

Okay, thank you. Okay, let's move on to other questions. Next question comes from Miguel Ong. Were there one-time gains or charges associated with acquisition of Rose Pharmacy?

No, there's no one-time gains.

Okay. For his second question, could you provide the full year and fourth quarter SSS sheet for Rustam stores in particular, and how much did they contribute to total supermarket sales?

The Rustam banners contribute about 23% of total turnover, close to about 25%. They did well last year. The marketplace same-store sales growth was 12.6%. Shopwise, though, was pretty slow at 4.5%.

And for his last question, what will be the key priority format for specialty stores, considering that the company is veering away from fast fashion?

We have so many formats under specialty stores, and fast fashion is only one of them. So the format that has the biggest share is appliances and consumer electronics at 60%. And then aside from that, we have Toys R Us. We have our Korean franchise from E-Mart called No Brand. We have Daiso. We have Super 50. And we have Pet Lover Center. E-commerce. E-commerce. And then we have also e-commerce. We have a new business unit called Go Robinson. That's our e-commerce business. new e-covers format, and it's going to serve all our formats by next year, by this year.

Okay, thank you, Mr. Bina. Our next question comes from Bennett Fajardo. What was the driver for the high effective tax rate in Q4?

Some business units are at a minimum corporate income tax.

Thank you, Ms. Mayim. Again, we have other questions from Berlio and Yen. So for supermarket, Q4 revenue was negative 4.9 and SSS was negative 2.3%. The difference is 2.6% from store count. But you added stores. Usually the difference should be positive. Why is that?

We barely added three stores. Those were just small stores I mentioned earlier on. So very immaterial in terms of contributing to real growth.

Thank you, Sir Jody. The next question comes from Linbo. Can you share how much did Dristan's profitability improve and how much more are you targeting this year?

We have already integrated two businesses. robinson supermarket and uh the stand super centers uh last september so we are operating and have pnl by banner but not by you know entities anymore okay thank you miss gina and next question is on diy on diy inventory inventory markdown

Which product categories have seen the most markdowns and should we expect more in the coming quarters?

Hi, Elaine. This is Stanley. It's actually across all categories, predominantly impulse items. There are still a few. There are still a few, so some were carried over to the first quarter this year.

Thank you, Sir Stan. Okay. Lynn's next question is for drugstores. Excluding ROSE, how did the pharmacy segment fare in terms of GPM and EBITDA margin for 4Q?

Hi. Excluding ROSE pharmacy, gross margins increased by 10 bps from 19.3% to 19.4%. As for the EBITDA, the drugstore segment rose by 10 bps to 9.4% in 2020.

Thank you, Ms. Christine. Our next question comes again from Janet Yutan. Why was effective tax rate in Q4 significantly higher than previous quarters and also year-on-year?

As mentioned earlier, even the decline in same-store sales growth, hence the net income is lower. Some business units are on a minimum corporate income tax position, which has a higher tax rate, higher effective tax rate.

Okay, thank you, Ms. Mylene. Okay, the next question comes again from Yip Nguyen. When will revenue in Ibiza go back to 2019 levels?

I think the catalyst would be the availability of the vaccine. Although our goal this year is to hit the 2019 financials, but you know, It's really largely dependent on, you know, the confidence of people to go out. So that will only happen if there's an available vaccine.

Thank you, Ms. Fina. Okay. Our last question comes from Linbo. Can you share based on your stance banner only? How did profitability improve? If you can.

I think we were able to hit our target of synergy savings last year of around a billion pesos.

Thank you, Ms. Gina. So at the moment, we don't have any open questions in the Q&A. Once again, if you have any questions, please use the Q&A function on your Zoom dashboard, and we will do our best to answer them. Thank you. Okay, so seeing as they're, okay, we have another question from Ali Al Nasser. What was the key effects in supermarkets for? What was the key effects in supermarkets for? New storage, right?

What was it last year?

Yeah, there's a modern variant.

A lot of them would be on the renovations when we converted Shopwise Express and Welcome to Robinson City Mart. Remember, part of our strategy was to go bannerize and to cut down on the number of brands that we carry. So earlier on, we were transparent in saying that we'd like to simplify our mini-mart or neighborhood store banners from three banners to only one brand. with Robinson's EasyMarket as the surviving entity. I think we easily converted close to about 35 of these stores, so that cost us a lot of money though. But they're doing good now as we projected them to deliver in terms of sales and margins. And then we added three new stores. What else? I guess those are the bulk of our capex.

Okay, thank you, Sir Jody. So the next two questions are actually quite related. The first one coming from Linbo. To follow up on the tax rates question, which are the business units operating on minimum tax rates at the moment?

Yeah, the contributors would be the specialty stores and department stores.

Okay, another question from Ali. Please explain the tax point again.

Given the decline in change stores, the net income declined as well. So some of the business units that declined in terms of net income have to be taxed at a higher tax rate. Because there is a minimum corporate income tax that large taxpayers have to pay.

Thank you, Miss Marilyn. Okay, another set of questions from Ali. First one is on GoRobinsons. How many GoRobinsons monthly active users are there? Active users. Okay.

I have the PC here.

It's already 12,500.

Yeah, that's right.

Based on the manpower investment. Transaction count is close to 35,000 per month.

Okay, we have more questions from Allie. The next one is, please, can you remind us on the DC fees you earn? DC fees? And moving on to his other questions as well. How is foot traffic and average basket size trends here today for stores versus percentage pre-COVID, perhaps on a segment basis? And then lastly, what were the key factors driving weaker for Q20s?

On the PC and basket size, maybe I can send a separate email on that. We don't have it available right now.

Last question is, what were the key factors driving weaker for Q20? This is from Allie, and the previous question is from Ben.

What are the factors? Can you make it bigger?

Social commerce, food traffic.

We have the macroeconomic headwinds, right? Higher unemployment rate.

We had two typhoons in November. They were really bad.

There is no more government subsidy amelioration.

Okay, thank you. I think without those typhoons, we would have done much better.

All right. Thank you, Ms. Urbina and Ms. Gina. So, okay. All our questions are answered so far. And we have no open questions at the moment. Okay, once again, if you have any remaining questions for the last five minutes of the call, please use the Q&A function. And if there are no more questions.

So if there are no more questions, thank you very much for attending this session. We'll see you at the next investor's call.