Bright Horizons Family Solutions (BFAM) 4 Nov 242024 Q3 Earnings call transcript

Greetings, and welcome to the Bright Horizons Family Solutions Third Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce Michael Flanagan, Vice President of Investor Relations. Thank you.

You may begin.

to Earnings welcome and Julian, Bright Call. Horizons' Thanks,

today's being available webcast we website, the begin, a is note please brighthorizons.com. our of be Before and call recording Relations section Investor under will

any participants, regarding to earnings those financial the to reminder harbor business, a forward-looking made included call future are on outlook and release. statement statements performance safe within this subject our As in

considered risks operating materially to our involve XX-K financial inherently in under and forward-looking conjunction be to and and section as in update Any also filings. website refer results statements of GAAP which may to which described measures, actual we other statement is uncertainties and any available cautionary the and Forward-looking date cause the earnings which the obligation is speaks differ statements. Today, non-GAAP financial on to detailed earnings release, should counterparts made, at their are Form statements IR only in and with that SEC forward-looking are our release, investors.brighthorizons.com. that reconciled XXXX, in our no we of detail undertake

questions. numbers Joining Boland. we our on will will Officer, over to and Financial our by that, today's before up Elizabeth fall with me the With a your Stephen Stephen. give let review Chief an call the Chief open Officer, detailed me Executive reviewing update provide of results Kramer; Elizabeth turn and start the on Stephen are business. to more call a it

evening good on Mike, call. to the everyone and Thanks,

heartfelt affected Hurricanes sympathies our financial results, everyone Helene Before want by I extend into we our to dive and Milton. to

Eastern in and was and a clients is Thank effect this truly principles to commitment. our however, heart the operational of such these the Horizon through dedication educators, employees disasters of those support on profound have you communities these show face are as Bright to and braking face areas. overall U.S. continued clients, storms with limited, embodying unimaginable resilience stepped impacted. In impact families is the across quite While families thoughts of showing unwavering devastation our inspiring. and South and for the challenges, for affected Their many our Bright the The in our heart Horizons the spirit during time. truly natural and up challenging had

in adjusted to centers $X.XX Moving I quarter. have line EPS full I including $XXX our far Total set was growing share. and through Colorado on million. and the while tracker added the revenue better and financial and its and our following service quarter. rate encouraging year to and with set on our million up work strength. To our New Regeneron adjusted expectations. our still stronger changes beyond, enrollment a Overall, pre-pandemic Haven segment to care up down XX% opened proud continued well In we margin with U.K. we return to generally use, EBITDA the with the make year's progress the to by last There XX% adjusted centers for performance, revenue performance in to as seasonal of increased client in pleased year. am I year be operational levels to performance in full U.S. of X more expected, our to with [indiscernible] per operations of get increased increased in driven particularly third initiatives quarter, third Pharmaceuticals in overall is our compared to service for some have we across centers the foundation international School of close revenue the results. the X lot occupancy We typical million revenue quarter, XX% pattern performance to XXXX of its but than largely X% EdAdvisory our losses than done a Yale specifics EPS backup to solid so and are into QX $XXX drive continued XXXX. $XXX and at to were third Mines, the operations. sequentially improvement and XXXX, and and Health in confident be third System. The established XXs. segment, continue an single-digit beyond. percentage of average a to U.K. in that The in low followed low been this narrowing to stepping

to expectations Let another engagement XX% outstanding Revenue the me use. our $XXX Backup and on quarter. increased turn quarter outpacing employee which for delivered now million Care, to stronger

We expand and and employer children Brookfield to use Property. notable robust Progressive launches, camps client the strength also centers Corporation with are across particularly back-up in new [indiscernible] including our care in Growth with continue needs summer over was school-age break. base the for as acute

supply have to the continue are growth summer goals types fruit us position technology backup building made again record element care our ahead. a delivering on [indiscernible] of achieving and As quarter, short critical and the supply personalized goals. The another and period. make the deliver exceptionally in this meet we the past, bearing of to in use operations over supply, growth initiatives in about is well years The and to to well spoken market on investments have level team performed the we our

Education portfolio, the University. Advisory grew Holdings Our to [indiscernible] new Enterprise quarter. $XX and We notably clients launching the business to in added million

last growth EdAssist However, several the remains as business our have discussed in muted. we quarters, for participant

XXXX participant marketing to We are our to growth investments make continuing product in team, the in and beyond. and revitalize

want There the [indiscernible] home leader clients as the support JPMorgan closing, including client our opportunity executives was each country visit and industries, early success welcome Valero. are Network Horizons across our including the Summit, were by a We who leading client in-person and from high-quality highlight Pan-Net. employees of up, first our across the excellence clients with underscored Before in innovation. thrilled I event Horizon incredible in our employers the across continued to Omni education. since and wonderful and as services seeing such for education Chase to our to our wrap office, we from I position and and [indiscernible] encouraged care and business. industry. In to employee commitment engagement our HR delivery operational summit growth hear reinforced productivity I'm other leaders a This that solidifying and the Bright innovation Accenture,

outlook who to dive and revenue will representing QX, quarterly around the more turn and With our and to to an $X.XX year are results refining that, full share adjusted billion, outlook. year-to-date the I'll our current XX% Given $X.XX. numbers, for range approximately into guidance be $X.XXX of EPS our we Elizabeth, details call over growth our

X,XXX enrollment X on centers of full revenue the growth. third adjusted everyone increased closing Thank QX hello, in revenue increased XX% over XX% $XXX of quarter, or break in while over Stephen, Again, third and you, the 'XX to $XXX income overall and million million on out revenue XX to Adjusted to quarter this a quarter. To XX% prior increased centers, up X% of year. low revenue pricing of single-digit service $XX increases XX.X% operating recap QX the the EBITDA million. the was XX.X% adding call. million further, of We [indiscernible] $XXX and with ended or of bit

the [indiscernible] centers to improving -- typical the particularly operations, from in the government prior prior $X received occupancy defined the year Stephen occupied in year averaged year over XX% cohorts than show 'XX. In in seasonality. In 'XX period tuition XX% stepped improving for And period. Adjusted XX% segment operating U.K. we As cohort, our from portfolio our given $X the previously, and centers, in as we've improved period. Higher the the XXXX. the our sequentially occupancy, across Service $XX the in occupancy opened improvement of of year. the program operating of QX as the offset from low in down quarter summer discussed mentioned, under continued bottom XX% levels our of million in of funding to QX increased ARPS for the our cohort X over million third prior center in support of third XX% leverage, XXs income of prior increases top-performing QX, Full represents than reduction more the enrollment, above quarter million XX% more centers

to stronger overall on care of XX% in back-up the grew new of growth $XX of in XX% reflected revenue. which income the also revenue ahead million, of our XX% quarter was $XXX QX million third 'XX, Our use was XX% to of operating which in adjusted expectations

this the in reflects in prior Advisory X% are QX making $XX delivered operating the revenue Educational to segment. margins Lastly, modest deleverage of XX%. million year we over the in The in increased margin segment that operating investments our and

of compared expense QX other Turning in of on overall to offset income couple average net QX lower $XX in 'XX higher XX.X% the tax adjusted of to statement. 'XX. interest reflects of effective components borrowings, quarter. outstanding our income million the quarter debt rate was structural as net on The by Net rates of a

compared We On million adjusted year. through ended we've for ratio million September made million million $XXX year, to in our of EBITDA. generated 'XX. We with reduced net debt period of same million cash the this of from $XXX cash investments balance and $XX to sheet flow fixed of operations last asset cash to and similar to the the XXXX, $XX X.Xx quarter in the leverage $XXX

to on our moving Now outlook. 'XX

to reflect of 'XX guidance revenue adjusted the the both expect to $X.XX performance We in ranges in our be EPS narrowing now we're EPS mentioned, stronger $X.XXX share. $X.XX Stephen to to a adjusted for revenue and As billion and approximate QX. range

in to the to year the $XXX XX% EPS relatively XX% $X.XX to $XXX of Advisory million year. QX Therefore, full year to revenue care of a the In Ed range our compared flat this outlook by and XX% overall share. expect range adjusted terms to updated in grow roughly prior segment, be revenue to million $X.XX full XX%, grow to and translates full-service we of back-up outlook to to

that, ready to Julian, go with we to Q&A. are So

question comes first from our Steinerman, JPMorgan. And Andrew

the center last growth post closings acquired that XX through you there's Elizabeth, could centers you us mentioned months. third And what the was revenue just organic over your quarter also been if in constant then the M&A mentioned? currency tell

Sure.

overall, constant basis and So service basis points. would have XX currency M&A full about Organic around The was XXX the was points X.X%. growth X%. revenue FX was been

Patnak, comes next question Our Barclays. from Manav

past, time? give the given I in was U.S. I breakdown what went age could I think just was. enrollment how growth hoping and the single that you digits. just group and what track this you mentioned was the us toddler enrollments that infant you've and growth was us total older know even low to

Yes.

we're that Manav, enrollment last the about has couple and with internationally in the single digits more broadly pretty was seeing it's and low speaking, Infant quarters, we've been of enrollment range. line both coming with talked that as growth in So consistent, preschool. toddler domestically stronger and

those speaking, broadly in them. of So came why which we is isolate didn't line, statistics kind

And Okay. any just Got guide peek I into out? early, it. trying then moving it's a ranges, to give want that when we there. get you'd still pieces 'XX, I call but set to just it's perhaps to early first but know out know look

your we're providing complete think in for question Is us to detail, as I understand and into -- of to that. early obviously didn't it's that 'XX, we the get I we're whether not budget. we're quite process for mean end So year, to closer was a the sorry, I'm out full our looking guidance I but XXXX. hear -- be

do thinking. lines are we we sight have into some where So

would digits year, enrollment we for half the single a low of similar this be second pace year. of this The that just as growth, for but reported rest QX,

range QX, So wage enrollment been with basis We be next something as would tuition that average. would Price points we see. and would gap similar on between tapering and be see more digits in X% single like a increases that's XXX where low well. looking year have to of in expect X% we that that in to the increases cadence bit,

line to has of historical full XX% that in sustaining at -- that off that's looking to sequential growth translates indicators. these more quarters is be a performance the of year, strong at in digits, the we'd coming years of service double this performance, less bit year. So been to XX% number guided and like a Backup little just XX% range arena. of But looking operating margin for course, of our top low very full key something robust performance growth, the XX% that

Tong, Goldman comes George Our next from Sachs. question

timing Can for are for end this the occupancy you rates to by pre-COVID the year the rates expectations XX% levels discuss overall your in range. recover back and what of when will

Sure.

the uniform range since I'll a expect XXs the completely low around rest George. answer, maybe we're we parts a this would to of breaking the So for take The overall, year. stab that down continue piece in of quarter, at utilization it's not that this

in XXs. So low the exiting the year

be QX above up their to as year watermark we high the be our us the aprt would Overall, about, enrollment centers their early tends -- up half. so at cohort that Our of back to top building and first talk you've of next heard top sort in in that occupancy. are already the

lot a but come this from -- to it's growth will Gamba occupancy other roughly of the about a not at enrollment centers, half the precoded So point, to of centers need that get of their level. XX% the

call the getting are enrollment entire occupied. it's bottom momentum. it's centers too good that getting good and very but the group. say most close is XX% those XX% mid-cohort That base. where will to be progress that their They given And is It's making to back in are We of the the making so cohort lagging XX% to now in are enrollment expecting clear. challenge performance under when off They're in way low of group soon gains, to that, less 'XX. it, think a levels more of a see that I there having the

progress And towards XX%, so back that range is volume. XX% plus that making slow

around address the helpful. That's bottom point, that trying geography? to that Like And say work-from-home is where key could the that cohort the elaborate Got perhaps improvement of centers what the these have the centers dynamic? some it. bottom you what operating, cohort. just challenge on to are it -- in Is in you that are in occupancy? drive commonalities of Is it momentum last this would are

I'll Stephen that. answer let

this of no overall, microgeography in they straight either the centers operating right, typically would than centers. a them where cohort line, center. of are are What lease a is about of obviously, or analyzing think And the It's of spend certainly, terms of that segment [indiscernible] of great we an there's And sort client are lot that time client question. say within. centers client our aspects and would as say would a I of in terms through sort is are certainly that vendors. our occupied you there there a what But segment What of higher are them is, consortium centers. I other

at the those of discretion client. client course, are the Of centers

a earn fee. And so we

would client's And that's the is they're the extent there that -- imbalance lease say, consortium, so in discretion. here the to of the underutilized, between an certainly, the amount the at are in then I that U.K. versus U.S.

more the relative So on in the we relative U.K. the see the U.K. a of basis, size in centers to portfolio

the improvement there. seen we have hand, On other

with individually sort to And against the in is to and actions planning while and of overall, so prototype one, each ultimately treating love be this is are them are we able what performing say, a Each actioning specific underperforming. we'd individually. are one very of and

question next Meuler, from Baird. Our comes Jeff

be kind can greater and occupancy But just enrollment is in to as Like more have I in sense would of occupancy cohort in it constraints and than pockets trends all? the you us mean, trends sales a the enrollment of of bucket? bucket. mortars XX% the the long-term has average you growth me what been XX% the normalizing at the capacity slowing same-store sense that give makes to XX% it towards that

enrollment a with the have there say, in getting fit single they're the the -- children percentage building is growing there's have to XX% those would cohort from enrolled their away there enrolled top they're are both the the think capacity in in but is they're X% I of as continue well still low XX% sound cohort good consideration our XX% base. even be some a together opportunity on in so because so their mean well were where as of under digits, but and most growth range to course, digits is the X% steady. -- that just -- ways sort which in to momentum I enroll. But average as enrolled. both very that in and space, -- lower That to you of it constraints keep mid-single the rooms middle breakeven high, to to we centers But sort and of obviously. that the under that is that group are smaller growing to of The have still it cohort, percentages numbers cohort

the And you holding as Was this been went process has through year? back-to-school I the middle growth there acceleration? guess deceleration Or the any in or cohort, steady?

the the I if back There year, of think turnover, from a bit seasonality it's normalized the steady. little this relatively to we've -- you of enrollment at [indiscernible]. is gotten more a much time been seasonality, know,

So bit growth XXX not little a we points, there, certainly but did points. basis slower see basis XXX it's

there then sort And know it. QX financially operational you impact meaningful but enrollment or was not of of QX did discernible reimbursed in in Got impact overly hurricanes you care? any either I impact self-sourced impactful, full-service on from any was the see said the [indiscernible] ? And

Yes.

I on saw we care in and then not about to transition think asking full-time of also terms backup, you or enrollment. whether were self-source care

the think we see the backup care on gone to has deceleration we meaningfully what side, types. would care. that call towards traditional use our And of shift on continue a self-source I

obviously, network financial we to need, resources support on perspective, in our have to it that's be the the from a people own. find didn't So for positive where were their the to really able we [indiscernible] then because trend COVID providing the

On what proud care. the is at are are the deliver other of we when actually can really we best hand, what and we

the care any out-of-network meaningful And that during a sort seen definitely not a quarter so in manner. this see did bring in did nor of spike we've hurricane We out decrease.

because in then QX and for of spike centers need camps that we and home really, So saw the the care. was in

In period things meaningful within was didn't a meaningful a our are client of had time. period again, for terms any of closed time. change center again, centers Asheville, that located, was or of any context, in a the that for part, center. center single most was, start of North We dates, of not for that And again, it that enrollment, see where one terms we impacted And were Again, nature. in only significant Carolina. people's they

open. Back

comes Kaplan, Our next Stanley. Toni from question Morgan

back-up within the I you more little quantification could was hoping a give drivers growth. care on

talk could clients about If factors growth, maybe I price, want to really from little you understand how days great plans, include and camps, whatever existing you clients it new adding bit is versus either to much just to a better. wanted just

Sure.

couple So thanks by utilization new for existing than who care typically launching I clients are being -- they the at by put, primarily Tony. question, driven more We simply more season have over think, primarily do a eligible is it's rather clients of in to and tend years. new employees, It it then clients.

aren't ways camp your it's care in growth. So a to whether new or that program are out from use necessarily or to in or velocity But clients lot tutoring high responsive schools backup types having a on options academic that of summer parents and care other available holidays contributing time. it's additional needs the it's

reach their of at clients that even in to therefore, uses I either. adding their users more basket we've it's life. user care space been used And more different awareness by newer that growing stages able as think builds, needs that new of to employees

any willingness seeing I to what sell the industry? independent more about programs the anything ] we you're wanted some to rolling M&A started within from of just on M&A. Great. [ the with to And see and COVID pipeline ask off, Have

Yes.

high-quality to and what therefore, versus of mean, keep many that operate at point is financial continue locations to continue enrollment they still So certainly, us. they enjoyed back that The we enjoy perform this may those are relationships and are valuation Tony, to reality have strategic the progress [indiscernible], mismatched given XXXX. that expectations programs in today providers programs strong in I with

about we for not our continue short and valuation we that prospects we're we what near what reflective capital disciplined is making thinking need strategy long-term see the in would of be in But term, be say to how and is require. still very and I of the allocation So term reflective to the acquisitive future. any sure beyond

BMO comes question Silber, from Our Jeff Capital Markets. next

Is latter, business, a talk little participation you wanted think more -- off do I a to bit there. anything And used ask might an actually an that? you is the I this Is it about I industry there growth, issue? I what you can talked about But that? know portion small EdAssist. do execution think about the can you been but issue? muted relatively it's have it's the you of about if Toms

It's Jeff. question, Yes. a great you. Thank

has I EdAdvisory business clients. emissions that, is continues So XXXX. would look, garner supporting employee business One say in dependence the through segments, college We've X right? to that been that our business And process. since

what We to see larger employees of participation improvements Advisory Ed the continue levels. on The EdAssist EdAssist. school going in themselves. to call we is who part are business is back focused

the services So ultimately, employers participant tuition are our programs we like driven. manage assistance for and other

the is their say back context us, say what fair would feel the people skills. is need that I to certainly versus economic what so is market feel of school, sort that of what that to it times, extend incentive to fewer say stronger would fewer to in in people is go And I the

So little behavior relates I generally. just as of a see from bit to think we're a change it market perspective, to starting

to terms what of sure to want a in this area. doing, what that we employers and need think business. on responding that very are employees we I make In the of aspect We that focused are we're need their within particular what transformation

the And certainly in have refreshed area. that team we so

did many in we that do the in efforts then are attract the we and in are outreach product. over years process We personalized care marketing investing and investing backup users. the in And the finally, platform of really like

And growth, then slightly say this would And things been that hoping over own we next doing in I that. focused of are again, our sort the fairly to within EdAssist. of on year. we're investing would so improve little than a X long categories year, a those But last business as the year better And are for really situation term. have within we're specifically for bit of growth enter advisory,

That's revenues really I a don't proposed forget the would really I via federal a tomorrow. election business? government. had costs. this, small know Vice in but believe this know household a the President number, kind we've something get of happen, Harris cap external it right. of was on country much you All that total I presidential don't you I if childcare helpful. got this anything about relatively your what impact income. could percentage if heard more like of your have on But

Yes. is they Look, federal that of having reality this a may for have involved child certainly lifetime many over there that I the been think more company, and government of the care regulations has suggested. in lot different years, get rhetoric

of the to right? outsized At requires day, suggest would of country prepared here media been say amount not the that gotten might we I to care. always government most But support an think the federal for government possible resource this to involved the limited its focused child in financial, end sure, I certainly politicians that reality this involvement broadly here of the more government governing get need. families, the factor has the invest. has in which is resource those that is area is has in kind in U.S. that never the

early families education disadvantaged. government categorically not most those So again, this the investment just more in in are that prioritizing beyond U.S. about political here is just less childhood about and which party

And our from next Chan, comes question Josh UBS.

do that metrics the in terms your as care, track percentage in are of share guess. you your available consumers that baselining I allowed with Is of penetrating of On you can you us such back-up total terms the where utilizing? or are days, customers there any actually anything days

we we do client for and But have the person Josh. overall some its use on really arrangement that's that. may and use We but -- majority an what component They be a then our track, respects, parts been of have base about paper I Yes. of have an population we've it's have cast isn't after variety individual broad-based on may a have more use. -- think the a partners participation publicly, in talked because us that fee, tapped

so many And many it's limited have employees not how days. to may how

a without entire different ways of able regard to having participation different how care to of people basket. some lives their times is in of variety their types stages available employees grow and in for consuming at So different that we're

think see a anecdotally is or and they what are a of it but sort that who as are I those useful as most backup tends be benefit, we it are are people good users. with find can. qualitatively, some who to who just generally dabblers, much more care There they using utilize benefit has penetration

going trends service fall color. helpful what really you And enrollment enrollment fall kind versus season. would full Any to That's the you're then on of how the into side, characterize expecting? deviations compared what think you

digits enrollment first than robust the a mid-single about half. second year being talked bit for So and little as overall half more we

I came Broadly in So quarter we speaking, think as the would have third expected.

talked continue enrollment the that we X part be -- space get we've centers our than is in because fully are last cautious. think as we is enrollment in that outlook not to will challenging enrolled, and the available about And I X, with been what X, the having that able opportunities quarters. to more over of the

their and I low group what continued levels. for centers outlook that so this year not of yet into pre-pandemic digits growth the [indiscernible] single then both rest XXXX informs that's across that in being are think of our And that

Alwy, from comes our And question Deutsche next Instructions] Bank. [Operator Faiza

wanted you gave Elizabeth, for there's I changes first to don't your that just those the confirm clarify by year. and no I think to margin segment. expectations

the for mid-single-digit style? I care? margin to of talked XX% we XX% maybe think ballpark for and back-up we operating about similar a low in sort service full business Are to

Yes.

are But will you we It to -- think here. expect very an think for where to for continue but that Full in little where margins basis of this of were for overhead the the having about still be year. full rest year, from a XX% the of be range basis [indiscernible] the XX caught about we've about this I but we XXX the level we to quarter. where a I points. north from be, backup. margins I full year, just rest QX, in issue on backup were similar or little tailwind of of similar Yes, the improving to little bit talked distribution and So this when low tailwind digits, compared be to quarter, the where continue microphone we question a not I it's bit in segments, very overhead full the expect that improving margin year, were up a we service would would back a would points similar single of the note QX in It's quarter. so between we But XXXX. bit to X in service to were to of to elevated the a in to of headwind to

broadly similar XXs And in and get us sort and the But be double advertising to into of that so high -- behind teens we business. that QX, XXXX. low them effect speaking, will would then impact as high low in

XXXX to think you still around your would pricing can views And and take that thinking you you ask additional you're to on if then me bit little to I'm seems to gave less about me, pricing. pricing. elastic more but is strategies? Okay. color love your a enrollment Great. how category broadly, hear It opportunity about but the growth I And wanted curious hear hopefully, there's some

frankly, action. decisions. and to has mindful actions than seeing we the of little balance an Yes. are I strategy a -- environment heard an environment have taking coming we service speaking, deliver that recognize are for April some [indiscernible] drive inflation I some a year. in we're the against the talk mean bit pricing we always us by this being average growing It some the January center, been able on that think the price structure elevated that's to and up it varies those to we've want investments as through. working time to price cost broadly wage, where think are continue we make maintain and center on would what tapered that are, We to our to lower to has we made They still price saw where about. be we in way wages, but seen and discipline certainly we But the you've price increase

general those, time this have our point. we that's So thinking but consider at to

next Ante our Jefferies. from Harold comes And question

This is Stephanie to Moore. Harold [indiscernible]

the U.K. on And you the Just cohort, things seeing centers improvements get could But on you've wanted I closing wage if update the with give now the could U.K., the compared percentage in you've have to been an you inflation lowest with if how there provide us a just are levels I there. us [indiscernible] employment on U.S.? I been because know trending the [indiscernible] there. there guess, you just of know of that sense to

closure the take can I question.

a was first the say that fact piece, with performance It start talked fair the certainly in that XXXX year-on-year. which line can a quarter. the I to in expectations was about in challenging it's was the largely nice with very U.K. the We U.K. our year improvement

some we've And good progress. so year-over-year, made

I cut called we've ] going about the out XXXX, $X,XXX, year. in that think full-service [ that lose we and to in business half we're in had this

be and the we still progress in We making so about U.K. the And closure made good comment [indiscernible] on feel side. the that then to maybe progress we're

Yes.

have XX has the year. we part a close the centers centers So track strategy, of there. that overall. U.K. And to on plus/minus been portfolio closed this rationalizing We're of certainly number globally

point... up closure circled docket We this some are in at on have for the that But XXXX.

or XX that weighted XX centers the or more U.K. you the Harold, when so some there, also U.K. cohort about as quarter. XX% But in year, [indiscernible] we're earlier, close bottom particularly look all of mentioned in we third year's Elizabeth to if you in said, portfolio that For so at in the in bottom that Stephen optimize this have as to about circle and there. that the up the U.K., will to QX look and to centers close here in towards we XXXX it this

you that a there's side the you're be inflation it's the in Would there? in line bit little you the on pricing would more seeing in U.K.? that just Or say guess with I the aggressively anything the U.S.? then And U.K.,

average So operations. was the general our gave I a that global around figure

aim of vary been of that are remain we tuition U.K. Inflation with comparison there U.K. at labor we a the exact there as of out be environment, the aim U.S., still the geography balance to of overall pressures and we the may considering environment supply see number has lower, that's increases the particularly the So it parts and come some some as on hand challenges side I others that where the bit to both services high, we have was some where that right tapering will and little the certainly as of labor acute higher global wage. do don't a in a the we areas like view. by that well. the of have but energy and continue but encompassing food pressure but well

much thanks free-election and for all great joining a Well, very have the call, evening.

Thanks, everyone.

for conclude does your We This thank you. Thank teleconference. you today's participation.

disconnect your time. lines may at this You