Robinsons Retail Holdings, Inc.

Good afternoon, everybody. Thank you for joining us to review Robinson's Retails and Audited Results covering the first quarter of 2020. I am Gina Dipaling, the Investor Relations Officer of RHI. The speakers for this call are Ms. Rubina Gokong-Wepe, the President and CEO of RHI, Eileen Casiban, our CFO, Stanley Call, the Managing Director of the Supermarket Segment, Christine Tuarez, the group general manager of the drugstore segment. Ted Saguno, the general manager of DIY and Pets. Selena Chua, the group general manager of Robinson's Department Store and Toys R Us. Sharesh Ramalingam, the general manager of Ministap. Jovi Santos, the group general manager of the appliance segment. And Edna Beliesa, the general manager of Go Robinson's. This presentation will cover the company's financial performance in first quarter 2022, an update on our store network and e-commerce business, and some recent company developments. 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 would appreciate if you would limit yourself to a maximum of three questions, including follow-up, so we can accommodate as many participants as possible. You may queue back in for the added questions. If you have any concerns regarding the sound quality of the call, please send your concerns via private chat to Eric or Jake Presologo. With that, I'll turn you over to our President and CEO.

Thank you, Gina. Let me summarize RRI's consolidated results for the first quarter of 2022. Consolidated net sales grew by 10.7% year-on-year to 39.4 billion. Blended same-store sales growth of 4.9%. E-commerce sales doubled both in absolute amount and as a percentage of total sales at 4.1%. 10 BIPs gross margin improvement to 23%. 60 BIPs EBITDA margin expansion to 8.5%. Net income attributable to equity holders of the parent company increased by 24.8% to $1.2 billion. Earnings per share increased by 29.2% to 78 centavos per share. Store portfolio of 2,203 stores and 2,057 PGP franchise branches nationwide. Jobinson's retail store counts to the 2,203 as of end March. Comprising of 291 supermarkets, 910 drugstores, 223 DIY stores, 52 department stores, 445 convenience stores, and 282 specialty stores. We also have 2,057 franchise stores of PGP. Our store network is complementary to our online strategy as our stores serve as fulfillment centers for e-commerce operations. GoRobinson, our very own e-commerce site, currently has 14 banners on the platform. RRHI recorded solid performance for the first three months despite the different alert levels imposed given its diversified formats. In January, the government reinstated Alert Level 3 in response to the rapid transmission of the Omicron variant. South Star and Roast Pharmacy posted SSSG of 37.4% and 42.9% respectively for this month of January, fueled by the strong demand for vitamins and OTC medicine. The government eased the restrictions to Alert Level 2 in February and further to Alert Level 1 in March, which boosted consumer spending given increased mobility and traffic. All our discretionary formats registered double-digit SSSG for the month of March, especially the department store and specialty segments with SSSG above 30%. As a result, consolidated net sales of RHI grew by 10%, 10.7% to 39.4 billion for the quarter. E-commerce sales doubled and accounted for 4.1% of total sales from 2% last year. First quarter, SSSG was at 4.9% with positive contribution from most segments. Drug stores, department stores, and specialty segments delivered double-digit SSSG. Gross margin expanded by 10 dips to 23% from better product mix and higher vendor support. OPEX as a percentage of sales declined by 50 dips supported by the cost efficiencies achieved across most segments, resulting to the 60 dips improvement in EBITDA margin to 8.5%. Net income attributable to parent increased by 24.8% to 1.2 billion pesos due to better operating performance, forex gains, and higher dividend income. Coupled with our share buybacks, EPS was lifted higher by 29.2% to 78 centavos per share. The next speaker will be Stanley Codd, Managing Director of the supermarket segment.

Thank you, Ms. Rubina. The supermarket segment posted net sales growth of 6.3% to 22.4 billion, mainly due to the sales contribution from 23 new stores, Same-store sales growth was flattish as the strong performance in the business in Mindanao region from the relief operation for Typhoon Odette was negated by the lower sales due to ASF and supply chain issues. E-commerce as a percent of sales doubled to 4.2% from 2% the previous year. Gross margin expanded by 30 bps to 20.9% due to the increase in indent penetration, improvement in assortment and price adjustments in Robinson's EC Mark banner. The improvement in gross margins trickled down to EBITDA with margins up by 10 bps to 8.2%. At the end of March, there are 146 Robinson supermarkets 84, Robinson's Easy Mart. 34, The Marketplace. 16, Shopwise. And 11, No Brand Stores for a total of 291 stores. Here's Finn for the drugstore segment.

Thank you, Stan. So net sales of the drugstore segment expanded by 19.4% to 7.1 billion due to the same-store sales growth and sales contribution of 78 new stores. E-commerce sales tripled and accounted for 5.5% of our sales. Blended same-store sales growth of South Star Drug and Rose Pharmacies surged to 39.3% in January due from the stronger demand for vitamins and OTC medicines in response to the surge in COVID-19 cases from the Omicron variant and the sustained growth in prescription drugs. Quarter same-store sales growth ended at 14.6%. The increase in vendor support and lower shrinkage from Rose Pharmacy from the process alignment initiatives led to the 50 BIPs growth in gross margins to 19.9%. EBITDA margin grew by 180 BIPs to 9.2%, boosted by the significant improvement in Rose Pharmacy at 410 BIPs to 7.5%. We ended the quarter with 582 South Star drugs and 328 Rose Pharmacy's and 2,057 PGP stores. Now I turn you over to Ted for the DIY segment.

Thank you, Tim. The DIY segment recorded net sales of 2.9 billion pesos. E-commerce sales doubled, contributing to 4% of sales from 2.2% last year. Quarter SSSG was flattish as the double-digit decline in January was negated by the strong performance in February and March from increased food traffic and more promotional events. The sales promotions to move out aging inventories resulted in the decline in gross margins by 190 bps to 31.9%. This was slightly offset by the 130 BIPs fall in cash OPEX as percentage of sales. As a result, EBITDA margin contraction was only 60 BIPs to 14.3%. Our DIY portfolio totaled 223 stores comprising of 181 handyman do-it-best, 31 true value, and 11 Robinson's Builders. Next speaker is Ms. Selena, Group General Manager of the Department Store Segment.

Thank you, Ted. The 33.8% growth in net sales of the Robinsons Department Stores to 2.6 billion was driven by the double-digit SSSG of 22.4% and sales contribution of three new stores. The surge of The same store sales growth was attributable to the increase by both foot traffic and transaction count. Categories with the highest growth were shoes, bags, and luggage, with 55% lifted by the opening of borders and easing of travel restrictions. E-commerce sales doubled, accounting for 1.3% of sales. Gross margins advanced by 50 bps to 30.7%, coming from the increased share of outright sales versus concessionaire sales. While OPEX grew by 12.4%, this was lower than the 33.8% top-line growth, resulting to the turnaround of EBITDA margin to positive 3.4%, 400 BIPs improvement from last year. Robinson's department store ended the quarter with 52 stores. Let me turn you over to Suresh for the convenience store segment.

Despite the lower number of convenience stores, system-wide sales and net sales increased by 1.6% to 1.4 billion and 5.5% to 1.3 billion. E-commerce sales rose to 3.4% of the sales from 1.9% last year. Same-store sales grew by 4.4% as the number of stores open for 24 hours grew to 394 from 229 last year driven by the using quarantine restrictions. The sales from commercial areas, where 55% of our stores are located, continue to recover by posting 3.1% SSSG for the quarter. Gross margin and royalty income expanded by 70 bps to 38.6%, driven by higher sales mix of RTE products, which also saw improved margins from the cost efficiencies implemented and higher vendor support from improved sales. The robo-sales performance, improvement in gross margins and decrease in OPEX contributed to 380 bps gain in EBITDA margin to 9.8%. The next speaker, Mr. Joey from Specialty Sports Segment.

Thank you, Suresh. The specialty segment registered net sales of 3.1 billion, an increase of 23.6% from last year. e-commerce sales grew by 25.7%, equivalent to 2.6% of sales. SSSG leaped to 21.2% with all formats posting double-digit SSSG driven by the easing of restrictions. Gross margin declined by 130 bps to 26.1% from the sales promotions of the appliance format in preparation for the new models coming in the second quarter. Despite the decline in gross margin, EBITDA margin improved by 30 bps to 7.9% from the increase in sales. The specialty segment ended with 282 stores for the quarter. The next speaker is our CFO, Mylene Casiba.

Yeah, thanks, Jovi. Robinson's Retail's cash conversion cycle was at 24.8 bps, mostly due to the lower payable base. to 57 days as we pay our vendors faster to be given priority to load up purchases at lower prices before the price increase. Moving on to the capital expenditure, the Q1 capex doubled to 835 million with 73% from the supermarket segment as we added new stores and renovated shopwise. I will turn you over now to Gina Depaling for the next slide.

Okay, last April 27, the board has approved 1 billion peso additional share buyback, increasing the total program to 6 billion pesos. As of yesterday, we have purchased a total of 83.48 million shares at an average price of 56.26. The board has also approved the declaration of a 2 peso per share cash dividends which is 9.3% higher than the cash dividend we declared in 2021 amounting to 1 peso and 83 centavos per share. The 2 pesos cash dividend is equivalent to 3.7% dividend yield based on yesterday's closing price of 54 pesos and 5 centavos and a payout ratio of 68% EPS of 2 pesos and 95 centavos. The cash dividend will be payable on June 10 for shareholders as of record date May 20, 2022. We are delighted to announce that RHI was recently included in the Philippine Stock Exchange Dividend Yield Index and the PSE Mid-Tap Index as of March 28, 2022. The PSE DVY Index consists of 20 companies that consistently give high-yielding dividends, which qualify based on liquidity, free float, financials, and three-year average dividend yield performance. Meanwhile, the PSE Mid-Cap Index is designed to capture the performance of mid-sized companies of the Philippine market. The constituents are selected based on market cap, liquidity, financials, and free float as well. On GroSari, RHI through New Day Ventures infused a total of $9.5 million of the Series C funding round, of which $4 million came from the conversion of the convertible nodes of GroVento Supermarket and GroSari Inc. to G2M shares. Resulting stake is now at 14.0%. 7%. Free money valuation from the Series C funding was 3.3 times from its Series B free money valuation. Our investment has gained 230% increase based on the recent false money valuation of the company. Grocery sources products from Robinson Supermarket. Sales accounted for around 6% of total supermarket sales in first quarter of 2022. Last January, select branches of our drugstore banners, South Star Drug, Rose Pharmacy, and TGP participated in the Risk Vacuna Sabotica program of the Department of Health. In partnership with local drugstore chains, the program is the most recent vaccination drives spearheaded by the government to provide greater access to vaccines as a measure of Robinson's Retail won three awards during the GCAS Digital Excellence Awards 2022 held last March 31, 2022. The event gave recognition to enterprises and MSMEs who contributed to the growth of GCAS as a platform for digital payments, especially during the height of the pandemic. RHI was a recipient of the Industry Pioneer Award, signifying that RHI was one of the first movers to pursue digitalization in service of the Filipino public. Our banners, Robinson Supermarket and Ministop, were also conferred the Innovation and Growth Award for outstanding performance in the past year. We are pleased to welcome our new independent director, Mr. Enrico S. Cruz, who was elected on April 27, 2022, replacing Ambassador Roberto Romolo, who passed away on January 23, 2022. Mr. Eric also serves as an independent director of various companies. He was the chief country officer of Deutsche Bank. Manila branch from June 2003 to July 2019 and was concurrently the bank's head of corporate finance. He previously served as a director of the Bankers Association of the Philippines and was past president in the Money Market Association of the Philippines. This ends our presentation. We are now open to questions.

Once again, we're open for Q&A. Please use the Q&A function on your Zoom dashboard if you have any questions. Okay, our first question is from Christine. What would be the margin improvement of the supermarket segment if we exclude no brand and grocery?

Almost the same.

Yeah. Hi, Stanley here. It's almost the same if we exclude both no brand and grocery.

Okay, thank you, Sir Stan. Again, we are open for Q&A, please use the Q&A function if you have any questions.

Okay, we have one question. Based on your 1Q22 results, effective cap rate was 15.8%. Would this be the prevailing cap rate moving forward, or did the company book any one-offs last quarter? One question is, based on your first quarter 2022 results, effective tax rate is at 15.8%. Would this be the prevailing tax rate moving forward, or did the company book any one-offs last quarter?

Oh, last year, in quarter one last year, we threw up the create tax because in 2020, quarter four, Our provisioning is still based on the old tax rate, which is 30%, because the actual regulations were not issued yet. But we paid the lower tax rate of around 25%, 26% in Q1, hence the adjustment in Q1.

Thank you, Ms. Mylene. The next question comes from Kanglin Tan. Can you please give us a breakdown of growth targets for each business segment this year?

Right now, the discretionary formats are performing strongly, mainly because of what happened last year when they were affected with a series of lockdowns. If it's sustainable for the rest of the year, I think so.

Okay, thanks, Gina. The next question comes from Stephen Gabriel Oliveros. Hi, thank you for the presentation. Just wanted to ask if management can confirm if their 2022 guidance provided for the full year 21-20 remains intact?

Yes, it remains intact. We're still looking at 20 to 30 BIFs improvement in GDP margin 100%

that's the original 50 store opening yes and on topics of four to six billion okay thank you miss gina your next question comes from can you share some updates on grocery or the series in particular the sari sari for coverage and growth gmv run rate etc um

From what I know for the month of March, they're already doing at 1.2 billion in GMV, around 700 million for 1P and the balance from 3P. For the number of active stores, the target for the year will be around 160,000 to 170,000. It will be back-ended, meaning they'll be opening a lot of hubs in the second half of this year. I think around 10 to 15 hubs in the second half of this year.

See, the next question is a bit similar. Can you please share the updated Rosari GMP in the first quarter of 2022? I think it was answered earlier.

No, that's for the month of March. For the first quarter, I think they're doing around 3 billion plus.

Okay. Good to see that. Our next question again comes from Pasin Ratan Alert. Can you comment on the correlation between REHI sales performance and Google mobility trends? Should we expect continued better momentum into the second quarter of 2022 given that mobility numbers have improved?

Yes. I think there's a strong correlation. Just to give you an idea, for the month of April alone, we're seeing double-digit same-store sales growth, mainly because of increased mobility.

Thank you, Ms. Gina. The next question is for the drugstore segment, coming from Rainier Ivanew. Are we seeing 2022 figures to be sustainable for the rest of the year? given the Omicron wave during the first quarter of 2022?

I think it will be sustained and better as long as, you know, there will be no more variant that will come up.

Thank you, Ms. Gina. The next question is, how should we think about seasonal split of earnings for the full year 2022? Would it be even across the four quarters or is the second half of 2022 expected to be stronger than the first half?

For seasonality, usually for retail, the lowest quarter will be first quarter. The peak is fourth quarter. The second highest will be second quarter and the second lowest will be the third quarter. But second half is usually higher than first half. by around 400 to 500 bps.

Thank you, Ms. Gina. Our next question comes from Nadine Bautista. Appreciate if you can share more color on cost efficiencies done in the first quarter of 2022, and how is supplier support trending so far in the second quarter?

Stand. Stand.

Supplier support. Supplier support.

Supplier support for Q2. I think one of the general comments that we got from the vendors is that there will be less new product introduction this year. So it would somehow probably equate to slightly less vendor support I think with the supply chain disruption that is happening right now, all of our vendors have shifted their focus towards making sure that the basics are available. So there are less new products and a little less support.

However, just to add what Stan is saying, however, we're going to open more stores this year relative to last year. So there will be...

So there will be additional business advancement support that we'll get because of the new store opening. So all in all, the lift in margin this year will be coming from that. And it will also somehow come from the windfall that we'll get from protection order coming because of the price increases. So all in all, I think it will still be a net positive increase.

Thank you, Mr. San. Okay, the next question is on convenience stores. Our question comes from Jello Lugto of Daiwa. How many more store closures should we expect in convenience stores for 2022 and any update with regards to strategy for the rest of the year?

most probably will be closing less than 30 store based on the stock profitability which we are monitoring month by month the numbers can be go down if the sales and EBITDA improve for the particular stores for the strategy we are working on it and it's too early to announce it anything once we finalize it and get an XCOM approval then we will publish it thank you

Thank you, Suresh. Our next question again comes from Pasine. Can you please give us margin improvement breakdown of the drugstore format, in particular Southstar and Rose Pharmacy?

Okay, GP margin, both for Southstar and TGC, improved by 50 dips, while Rose Pharmacy improved by 70 dips.

Thank you, Ms. Christine. The next question comes from Fancy Supido, and this is for the supermarkets. What is the target market for the supermarket segment, and how have increasing raw material costs and global supply chain issues affected those margins?

Target market would largely differ according to Banner. and Robinson PC Mart being our community store is obviously targeting the closer to home shoppers. Robinson supermarket is our mainstream supermarket whereas Shopwise and the marketplace are towards the premium market. In terms of increasing raw materials. So far, the effect to us is upward because of windfall coming from the protection orders. I guess I think some of our vendors also resorted to switching their source from from their original source to a different country, depending on the availability. So at least by and large, our shelf supply is still very stable at this point.

Thank you, Sir Stanley. Okay, so the next two questions are quite similar. So let's just read them out together. Okay, so did any of our HI segments experience any boost from election spending in the first quarter And any indications of tools in the second quarter so far? And from Carissa McFay, are you seeing election-related spending positive impact on sales? And do you see this in 1Q 2022? Did you see this in 1Q 2022?

I think for 1Q, not so much. But I think in April, we're seeing some. Yeah. Across blended same store is around double digits.

for the month of April, I think.

Thank you, Ms. Gina. The next question comes from John Peck. Can you clarify why supermarket gross margin was to the second and third quarter of 2021?

I think this is a question for you.

Oh, I think it's also caused by timing. I think it's because of the timing of booking. Gross margin is generally stable. It's the booking of the other income that somehow fluctuates. And this is largely affected by the opening of stores. So you would see fluctuations depending on the number of stores that we open for that particular month or quarter.

Thank you, Sir Stanley. The next question is on supply chains. Has the company across all segments encountered any issues in logistics containers when it comes to supply or inventory? Is the company also increasing their inventory to mitigate the risk?

Speaking for the... Hi, this is Joe Vino. For the appliances... We've actually not made any deliberate effort to increase inventories. There hasn't been a need to do so. We continue to operate at the total level and just manage stock aging and transitions from old models into new ones.

Yeah, for the supermarket, we... We were cognizant of the disruption, the supply chain disruption, so therefore we hedged early on, but then it's only up to a certain level where the distribution centers and the stores can accommodate In the supermarket, we deal mostly with food items that has shelf life. So we, in as much as we want to gain heavily on the margin windfall, we also have to make sure that we don't hit obsolescence in disposals.

The department store, we faced some delays in the arrival of the containers of our concessionaires. So there's some delays in the stocks or maybe two to three weeks delay. And also increased in the cost of raw materials as well, around 10%.

For the DIY, we also encountered some delays in the arrival of containers. So what we did is we adjusted two more months to anticipate the delay in the production from China.

For the drum stores, our suppliers are actually still encountering supply chain issues. I think that's global. Not just raw materials, but also the packaging materials. So we're actually hedging inventory for that.

Thank you, everyone. The next question is on gross salary. What is the valuation of gross salary?

Based on the Series C funding round, the post-money valuation is already at $410 million.

The next question comes from Teresa Magpayo. Can you elaborate on cost efficiency measures undertaken in the first quarter?

actually okay on the cost efficiency measures actually that's a combination of the store productivity uh that's why you can see that uh we have a better level of opex now and then the other thing is that since we did some cost optimization initiatives the past two years, whether it's on the manpower side or the other areas of the spending. So you're seeing it on an annualized basis starting this year as well, on a quarter-quarter basis.

Thank you, Ms. Maylene. The next question comes from Anonymous. Congratulations on the results and happy to see the recovery in the deportment score segment. How do sales in the first quarter compare to pre-pandemic sales? And are there any noteworthy changes in consumer preferences or behavior compared to before the pandemic?

For the department store, we are still a bit below our pre-pandemic levels. What's the question? Okay. Okay, in terms of changes in consumer preferences, it's really evolving. So previously during the pandemic times, we saw that as I have reported recently with the opening and the easing of restrictions, sales of shoes, bags, shoes and luggages and apparel has increased. has all started to lift. So when previously during pandemic times, you know, those were the categories that were really affected.

Thank you, Selena. Our next question comes from Christina Ulang. Are you comfortable with the longer cash conversion cycle or it's a concern you're addressing and how?

Yeah, the longer cash conversion cycle for quarter one is just a result of our loading up on inventories as we took advantage of rebates and then also to do some protection buying for price increases. And that is flowing through our gross margins. The other one is typically you will see quarter one cash conversion cycle actually higher versus year-end, but we should go back to the low levels towards year-end quarter four.

Okay.

The next question comes from Keith Nguyen for the supermarket segment. Can you break down the 0% SSSG and 1Q by price increase versus volume growth? uh hi yep i will get back to you on that okay uh the next question comes from a scene once again can you help us understand why royalty rent and other income was still subdued versus pre-pandemic levels and can you provide the recovery outlook for this item please

Okay. Generally, it's just because of the lower franchise fees from MiniStop. As we have, of course, closed stores, and then we converted some franchise stores to direct stores. And that actually improved their profitability and the store productivity, given the situation right now.

Thank you, Ms. Maylene. Next question, again, is for the supermarket segment from Kiev. What would be the projected price increase for the rest of the year on a blended basis?

I think that would be very difficult to project at this point because it's a very fluid project. You know, we're seeing price increases as high as 40 plus percent on certain products. But at this point, it's an average of about 9, 10 percent. Whether it's going to get worse or not, I think it remains to be seen.

Thank you, Sir Stanley. Again, from Kiev. Now, this time for the DIY segment. What was the reason for the year-on-year drop in gross margins?

Really, the effort to bounce back is more on the promotional events. So that affected our margin.

Thank you, Sir Ted.

We have a question again from Nadine Bautista. How much of margin improvement are you expecting to gain from the protection buy-in?

Well, let's just see that we're better off in terms of the rebates that we're getting versus the cost of money.

All right. Thank you, Ms. Maylene. The last question so far on our roles. Could you share the amount of forex gains, dividend income, and other items below operating income? And the question is, could you share the amount of Forex gains, dividend income, and other items below operating income?

Okay, in terms of Forex gains, for quarter one this year, it's 51 million. Dividend income, it's 43 million. The rest of the other items are actually the usual interest income on bonds, earnings from our investments, interest expense,

Thank you, Ms. Malina. We have another question on election spending. Did RHI benefit from election spending this year and please provide more in color?

Well, if April same-store sales growth is of any indication, then yeah, we're probably benefiting a bit of it.

but we have no open questions at the moment.

So once again, please use the Q&A function. Okay, we have another question from Fassim. Can you provide color if there are any relocation, rationalization, or right-sizing plans for department stores?

Again, can you provide color if there are any?

For the department stores, yes, we're reviewing. We are right-sizing some of the stores.

Thank you, Ms. Selena.

The next question comes from Francis Supido. Do the price increases in the supermarket segment result in lost customers? If so, how much is the decline?

I wouldn't say that it resulted to lost customers because transaction count is still up by a high single digit. It's basket size that's going down. So it's probably an indication also that people are fading down as a result of the price increases.

Thank you, Sir Stanley. Okay, our next question comes from Teresa Magbayo. How much was the interest income, interest expense, and equity earnings in the first quarter?

Yeah, interest income is 100. Yeah. Interest expense is 36. Yeah, but of course, that excludes the impact of PFR 16, yeah. So there are... you know, the interest expense and the amortizations of PFR 16 adjustments flow through net income. Equity is 59.

Thank you, Ms. Nadine. The next question comes from, again, Nadine Bautista. Can you share with us the score opening targets per segment for this year?

Supermarket, we're still looking at 40 to 50. 40 to 50 stores. Drugstore, we're looking at 80 to 90 stores combined. Rose and South Star.

18 for DIY.

18 for DIY. One for department store. And the whole specialty stores will be around 10 to 20 stores.

Okay.

The next question comes from Christina Ulan once again. What did you do right in the first quarter that helped you achieve the resulting earnings growth? And what do you think could you have done better? Is 1Q earnings within budget or target? And are you happy with it?

We are very happy with it. Actually, largely coming from higher sales or sales productivity. Because as what Mylene mentioned a while ago, we implemented cost-cutting measures over the last two years, and we're actually already experiencing the fruits from it, from the cost-cutting.

All right, the next question comes from Rainer Ivan Yu for the department stores and specialty stores. So what are the expectations for the department stores and specialty stores, and are they expected to reach pre-pandemic levels this year, or will sales be affected by the rise of other e-commerce platforms or shops?

Okay. Speaking for the specialty appliances, we are optimistic about our prospects for the year, especially in this particular year where we will go through a full summer. We missed out on summer because of all kinds of restrictions in the last few years. We are closely watching the shift. or how e-commerce behaves, especially now that with lower restrictions, we're beginning to see more people go to malls as an alternative to shopping through e-commerce platforms. So that's something that we'll see monitor.

Yeah, just for purposes of comparison, specialty stores still... 25% lower than pre-pandemic level in terms of sales. Department store, between 25% to 30%. But it's closing up fast. The high department store was down 50% at the height of the pandemic. And specialty also more or less the same, declining sales.

This is Edna for GoRobinsons. I'd also like to share that the strategy for GoRobinsons as the e-commerce platform for RRHI is really to move towards a more omnichannel experience. And one of the things that sets us apart from pure play e-commerce platforms is the existence of our store network. We have actually started to experiment on other models to help leverage our store network, such as click and collect. We're starting into the supermarket segment, and we hope to extend that to all the other formats of the platform. And then the other thing that also sets us apart from our competitors is the link to the loyalty program for the whole store. which is Go Rewards. Right now, our customers are able to earn points when they buy on GoRobinSense, which they can use to buy offline. And hopefully by the second half of this year, they will also be able to use those points to buy on GoRobinSense.

All right. Thanks, everyone. Once again, if you have questions, please use the Q&A function.

Since there are no more questions, thank you, everyone, and see you in the next earnings poll. That will be it.