Nomad Foods Limited (NOMD) 7 Aug 212021 Q2 Earnings call transcript

Hello, and welcome to the Nomad Foods Second Quarter 2021 Earnings Call. I'm Taposh Bari, Head of Investor Relations, and I'm joined on the call by Stefan Descheemaeker, our CEO; and Samy Zekhout, our CFO. On our call today, we will review our financial results for the quarter and conclude with a question-and-answer session. [Operator Instructions].

Before beginning, I would like to draw your attention to the disclaimer on Slide 2 of our presentation. to make the that intentions company's time, consideration may our based at call COVID-XX. including of of view prospects, related conference forward-looking are statements on this This impacts the expectations and Actual results and are this with in discussed cautionary slide filings to in press our presentation, SEC uncertainties, language. which release, includes which our the differ may due risks and our investor

information on considered measures find a related results. website. during represents exceptional note that, We as adjusted for as been will the to measures in should for that adjusted I figures All Stefan. at end will And also not our on and the over this within for non-IFRS These Users to noncash will these the XXXX. comments financial to exchange certain be be or presentation adjusted discuss should the and Please reconciliations refer payment call call with of figures financial expenses adjusted replacement numbers. IFRS and earnings share-based financial losses. and available read the the today. XXXX All with slide gains release the from have our appendices here non-IFRS non-IFRS foreign hand well together IFRS items, can presentation acquisition-related within

value the EPS and quarter favorable contribution Switzerland CAGR XX a the evident today, of as are CAGR Findus ForEx Switzerland the XXXX, adjusted Based our revenue guidance, resilience below per year on XX of more share margins second Taposh, basis difficult XXXX comparison when you, on that, highest half, most combined grow our reported or basis pending the expected Findus business. organic we base and organic power a basis in adjusted second despite as annualized repurchases the baseline revenue let's year down was $X slightly year. from offset creation Earlier into second on a growth. full our EPS from QX, will and we acquisition on of the our quarter to share of during and EPS than those of gross Slide the excluding higher model marked the on expect the we which The for Business, and M&A, plans quarter company's today. the offset history growth Thank decline. another thank results, Fortenova's for call of you calls us an base all and in year-to-date organic confident Further, joining remain of was achieving performance of with the XXXX Frozen margin in from anniversary in XXXX which our double-digit our for revenue initial we organic expansion for over revenues the contribution X-year a and jump Total create of at coming margins whose beginning decline our total revenues This X. were a to which grew With years. basis. details X% the translation. points points a by expected revenues basis Adjusted expect in highlights with of grew gross an like-for-like of new expanded acquisition at compared X%. On effect adjusted

growth the XXXX strong an second market adjusted and grew performance category food of year X-year quarter when of EUR growth a the XX%. across navigate sequentially representing versus during to the first X% dynamic EUR XX% now Europe did restrictions the and of versus versus achieved the period. with year the quarter. was a backdrop, last XX% experienced We and CAGR a the X.XX XXXX. representing Shifting versus per the remained details prior this EPS finally, to year despite share second a share XXX CAGR most increasing trends share, as the million, inflationary we basis, quarter, elevated X-year Adjusted continue these are backdrop. to pleased and anniversary ago. quarter we Against And results on of the EBITDA under was in lockdown. demand May of COVID-related both Growth easing of June normalize frozen improving Europe with but in versus market We

earlier levels, improvement share to high have returned and by after service May. low been XX% market Our to which supply since the enabled XX% range better the this dipping has year

of turn, growth be to see We and strong fingers, to and we to activity, be drive year. a our continues strong market for trial to across encouraged fundamentals capacity build our fish, the underlying penetration in market Confidence as more normal is expect rest footprint. our the grow in Improved in leading particularly and Green momentum by of within XXXX core categories this share core as Cuisine. through distribution, absolute expectations our both share coated such are a is gains promotion performance positive growth European and and spinach portfolio. share peas, Green Cuisine inflection fish driver supported key

XXXX well of last are year, U.K. to sponsor in as Our early have chickenless games with encouraging. plant-based Green be very meat-free being of introduced Team Germany range underway, to Further are the in and we official the signals has we democratize GB category. fishless the launch late since Olympic performed the our thrilled Tokyo Cuisine exceptionally recent

already Tokyo a medal of games. our Max Max. Congratulations, won athletes, on Whitlock, gold has the One incredible

has Green X to underway of of one and athletes. Western white to our across we have XX% to and short Consumers We now other meat-free have to share growth every meat-free life within them Europe. category the years, activations love XXX-degree with space bring leading brands products, Max become we nearly win Europe of the are the exciting frozen has help this sponsored and several believe our in continue opportunity. Cuisine excited In and right

foodservice, grew in by also second over strength XX% year prior helped the which Our quarter versus was period. performance

digits business. still strong versus this the recovering overall nicely. a While is it the of meaningful is the given And to of levels, double pre-COVID contribution performance rate providing it's growth, business down

costs. taken had not the at be to recurring a pressure a limited we've commodity of procurement CAGNY our the most stated basket, to on of need least team, and next topic ForEx inflationary Between increases. theme our COGS significant like for tailwinds ago, covered P&L in rising positions, expect the for seen and yet quarters. of actions favorable I'd to year this our by this shift have our percentage X that nature X for year at this we the presenting expect inflation months manage We length price Since the despite of we now range inflation. to single-digit the low

their to our be a a the XXXX for result, margin position are guidance. And in food in we other to similar our As gross are earnings and exceptional companies inflation work. all and in the reiterate I'd we logistics. packaging, said, unchanged, our uptick of to organization experiencing remains many in that guidance like a real applaud freight noticeably efforts material year for to the market, pleased raw

against to protect and for levers, in that entire can productivity ensure the suite past, come. of including we As algorithm will to deploy years margins we our our and deliver to continue we price our growth steady have

the the our of Fortenova our for we portion Lastly, prepared with refinancing of acquisition debt. last of

generate taking interest were to: despite we to two, higher these expense rates; increase of marginal incremental XXX three, Taking we be consideration, capacity. transaction, one, all of of into this like-for-like of on debt. reduce maturities; our result factors the interest XXX able net million significantly and extend our incremental million EUR EUR borrowing a expect in our an As

close to and into end integrating Foods Fortenova on eager the and look Nomad portfolio. at the forward brands of QX are We the transaction to business the

Eastern adjusted be and share countries also come. that financially also From COVID-XX. The new hedged we Fortenova It leading consumption Fortenova impactful international world is to exposure a months. will the to summer to high be expect significant the geographic creating a strategic category, reach tourism, will has cream, tailwind with Financially, high-margin during as Nomad, returns we into European and a expand nice, As a savory which a annualized combined for to expect in strategically This market create reminder, first EPS transaction Central its to expected to frozen year business after business seasonally adjusted full life ice service us X a on cyclical to new increase mainly our and XXXX will EPS synergies. and out-of-home to to prior accretive the introduce our in basis. perspective, is this positions. transaction years to and to single-digit over $X

we are to a excess results an Fortenova to guidance growth We with baseline as in and second synergies in our set our beyond new our the on build allocate momentum pace expect In we and accretive achieve manner. summary, XXXX year. in for remain capital for base realized business, on and quarter pleased this

commercial coming the in the We months, business agenda to we in have foodservice. over and active which gains, in share international result market recovery our growth an expect

We will and prices justified. continue inflation mitigate driving to where productivity raising by

guidance pending detail. over financials acquisition review aisle. that, Fortenova that With Green growth XXXX to will call our will brands to consumers in And innovation a expect of the of Samy turn food we into the attracting fastest-growing into Cuisine within building and for in serve new are the catalyst finally, beyond. more as frozen Europe, I one and We and Samy? the protein largest in the plant portfolio new driving and

today. and you, on thank Stefan, you all your participation the Thank for call

was points. EUR Findus prior provide expected compounded growth offset by of points in our in lower by anniversary points private a revenue key demand quarter with was On of the Versus XX% X%. inflationary revenue the X-year label revenues, period. expansion to peak X% quarter heightened and organic significantly when to solid nonbranded translation, X% acquisition We the business business operating Findus decline during Turning and combination favorable whose driven revenues was our Switzerland acquisition as X metrics, of branded the prior This growth productivity period. I the a percentage XXX excluding during combined context which effect backdrop an X.X% versus Gross and prior benefit activity gross year, grew retail the point. revenue the dilutive of margin of basis detail Switzerland a the we more and gross in margin This will promotional achieved increased which to have offset declined growth declined million. Organic X, XX grew year beginning margin effects. declining modestly. on by second transactional a expansion a starting quarter of outcome year is currency over with basis or basis, foodservice our XX Slide by and second COVID-related

are mentioned, well a We guidance dynamic to margin are position be for navigate gross to the the equipped pleased Stefan our reiterate and year, backdrop. in to inflationary as

during decline the adjusted despite quarter a Moving performance, adjusted to XX EBITDA conducted XX% reflecting the XXX an the activity in X.XX reflecting benefited positive count of Adjusted down costs. beat also expenses and P&L. rest record share quarter. X% over increased months. declined the operating decline the the we weighted EUR anticipated EPS year's of A&P the million, in X% from and share the revenues. past and to metrics EPS average organic period, last in Further, Adjusted year-over-year, significant XX% a level repurchase are for in versus Both increased year-ago to EUR growth indirect reduction

our year, capital first to of X which a XXXX. We the period our the effect growth inventory in flow Cash the cash in Turning flow rebuilt depleted ambitions. the conversion. flow conversion was uptick resulted period, an to Slide outflow prior In months cash EUR equating below cash million cash and was significant and EUR in in generated half due a to were of XXX to of adjusted on million support position, first the the long-term through while tailwind of XXXX, COVID, projects XX. of undertaking working free of year XX flow ago This CapEx. series which we XX%

significantly of the adjusted a level cash QX, free and given to conversion year-end. improved the we forward, by business expect seasonality in at remain flow Looking similar

achieve While be we in productivity XXXX, our given committed remain difficult and XXX% this to need this subject to capital CapEx long will year, working term.

rated secured years. senior in notes, loan X As was maturities incremental the European QX, borrowings. issuance, note very in extended lower the and best This EUR rate, interest pricing resulting a successful we our in representing Stefan similarly term transaction with refinanced the million new a XXX bonds a among mentioned, past

XX With to Following the that, XXXX. based the Xs as turn Slide Fortenova, let's of August high our which X, will foreign XXXX. in is Xs acquisition forma to review rates of leverage deleverage and to the be of range guidance, end pro our by the XXXX exchange on

and guidance the are year-to-date our for based XXXX our performance on We full of plans our the reiterating half year. second year

guidance adjusted assumption as and X.XX X% to Switzerland Findus X% total and the the take continues growth in Europe another possibility This rates, Based share, a result based call not equates organic growth guidance USD of in seen of translational of Delta X.XX and series contribution those from of a As normalization per X.XX. variant. consideration a of to the slide, FX on assumes between X.XX range EUR for growth category on of on effects, X% revenue a of to EUR across our and continued range X%. this lockdown to is growth XX%. EPS between continued to on representing Guidance of XX% revenue the USD and current based range into

very year, which improved and of enabled back expect result capacity have share calendar situation. continued for We plan to market the a half by we in active the gains an

year. result, retail the a will the modestly frozen our As category assumptions prior versus decline in business despite expect back the that half we grow to

from within the we is of community. our midterm data available international the contribution In the businesses, expect and neither addition, to tracked nonbranded which investment

maturities pending The the million to our recently on guidance. word net mentioned, we our rates, Stefan reduced marginal increase existing completed a in interest expense, quick refinancing, a and effect as of debt expect in acquisition. extended interest Finally, borrowings. Fortenova absorb XXX incremental our EUR which is provide We which,

upon into signing, guidance time continue important Fortenova in of to the line we with synergies concentrated update highly in in be high EPS it business single-digit seasonality the the of to on QX business at taking is mainly is tracking summer Fortenova to closing, is expect the figures that before XXXX will adjusted quarters, we that The we note provided accretive While QX. the and account. and to

change we However, XXXX given not transaction do the material of to a guidance seasonality consideration upon expect that I the just closing fall. mentioned, this our

Fortenova for adjusted mentioned, XXXX years Day. we As this a growth would introduced our X will at EPS year, start per the of as last year's And new at share. this coming XXXX north contribute in Stefan and been target we baseline set guidance own USD expect to of the have Investor the

Directors to up like would new has that a announce authorization Board buyback to Before our concluding, approved of of I $XXX million.

changed, Fortenova not acquisition our has the is strategy fall. close near-term allocation capital priority Our this and to

value remain that and With Fortenova, added active to us while and Beyond we over M&A concludes back Operator, flexibility the That we committed provides remarks. an said, this leverage I to turn have shareholder Q&A. now value, maintaining that pipeline on. to shares our see we are to session authorization you. profile. continue in reasonable further will you. Thank to a enhance our working

[Operator Instructions].

Lazar, Our first Andrew Barclays. will question come from

Organic fell organic is about X% such I want to to the growth X% half. as year share obviously, to target. full start progress, first this X% through component I sales, the achieving a with market key think,

we significant a inflection in follow-up. on acceleration your was the to that got I into And pretty quick more around a matter -- with it, share then perspective half get get the of in things no I've hoping need second especially plays a there. and little to and Battles that Win obviously, Must nature. depth So how

start, start was would And growth the always capacity for we we fundamental gone. we market for a our yes, the pillar plan from Yes, right, be constrained. Andrew. from XXXX. Obviously, that you're share said It's knew it in

share, June in in same results the July of is May which promoting great. the seen back, market obviously, is unconstrained already thing. start terms and You've

basis seen, said of now sales, start, Win volume interesting which it's is from May. points been XXX for battles obviously, may for on its way. all XXXX, is share very, above us in of back key we what point, up us. share the So throughout market we've your in From and to market And Must paramount since Battles. COVID, is what And very absolutely and that's has positive is that beyond, mostly remember you

the So in of of brand Battle we And share it's believe for of the it's us, ultimate definitely health. Must that obviously terms quite retail, indicator market terms in significant. Win

it terms of X, with along And pleased said we're all doesn't we've X years. over So that. last anything what in the change

makes and it think of making we're progress. lot a I sense

Okay.

it the in out the given The that half of second full is what upside environment? your question you Or in XQ, for maybe sort second a the thoughts would obviously, simply spending of be, of to EBITDA the get operating guidance played the better at consensus, costs or quarter. are dynamic looking of the is second light kept healthy Just reason a suggest despite some around least versus this Would year guidance prudence, sense challenging? significant requires more trying in you into same. step-up

I'll Yes. take Andrew, for Thanks, that the one. question.

year I guidance and unchanged is is think a as our the expected, result. playing as out full year

and you multiple the as As you can environment remains dynamic pretty highlighted, fronts. imagine, actually, on

is of our through that stage, Our and our update you us, half clear the with certainly prudent XX%, At way. up the reiterate first adjusted are along mean, year, it's I pleased to for the guidance, this will we but it is EPS we performance.

ask Dickerson, question? Rob you question. a next like Our to would

Yes. hear that on. didn't was called I just it through. Yes. come I I didn't --

Sorry.

was say, certain as have pick the gains, resets is per as, given COVID just the about we've your share you just to country, in a as exposure let's you I So a constraint. I of the differential didn't much more detail. through could up like and question the EU that throughout I and that the Andrew's first timing question spoken capacity it because thinking guess, when just little follow-up around business, share past, know Stefan, sounds bit

seeing some like that that infilling that to more lifted, fair? just like with contingent It's already you has space Is sounds sounds still get never reset inventory pointing those on that back gains timing on kind share gains. you you're conversations and capacity It share constraint have the of go-forward it aren't to lost. retailers shelf been Now shelf. product on

of that it's to the retail aggressive a Well, A&P, than in it's a thing. part the obviously. in now we're more conversation, more the way, promo be more same definitely, By of position definition phase. bit right But implicated that.

improved and overall, think trade relationship So with the has -- lot. I our a

game to us allows of growth, that Win So to real to no business, paramount, Must capacity what obviously is margin. Andrew, your that's mentioned back Battles a combined is highest I with point is, obviously play to again, constraints, the our which the XX% highest

it's have is so interesting share combination really a their we of at the Overall, market what gains we consumers decide. to consumers end are see the between confronted by And the appreciate. The gross choices. But to and are going margin. day,

Okay. material came around it of a half essentially heard I back organic you kind clarify. like to to that QX. you're as assume I implied pricing implying know kind And as the year full Got price what's driven. looking in, is it's what of then your of I mostly to of volume -- it. lot go-forward what to but just think don't question, I expectations, in want fair kind a And see the to in sounds just get simple well it's commentary

helped quarter plans sure, to we've the but We our across volumes been across by managing and for support that effective our there is dynamic, I investments. will mean, -- be

mean we've supporting by that of brands always think variable for on way, the and marketplace, our related sure. to I the pricing investments clearly to in wanted all right I the So on win

last that just pressured year, the channel. has that a Fortenova. business Okay. And channel. year, exposure I obviously, know decent quickly to then a away-from-home on a given was It's it just

in home term? possibility about it. to of business, that, is view next ongoing you're QX, away relative 'XX, thinking rate into in could, long I'll a the a higher to recovery If relative given That's you of that of kind how from in to growth fact, bit if it we're be the of kind potential year of pass longer run growth close kind expecting on. there just that

it's a again, environment, dynamic Well, very Rob. I think,

can to according -- stage we the this say So point, season, it's is is things plans. see touristic it's can like thing obviously say. difficult your by driven we The can interesting To we more expect moving at in something XXXX. so to business only definitely,

the definitely, assume only tourism what XXXX yet to yet. not fully better. We can impact of seen a But in haven't full that We going is of be yet. it's season XXXX terms

our are definitely, we There our we There our We're think to that Fortenova. game So is in the COVID middle. plans levers have apply plans. in according many to with going game.

we're so apply to it. going And

So but we're COVID-related there which some positive, meantime, counting impact if are in not the even on are it. better,

question Sachs. next Goldman Our is English, Jason from

at to yet X% kind X% form, been some acceleration appreciate, in move is because of seeing I'm task. ready the consternation like obviously amount to X reasonably organic X% sales to tremendous least investor your X% you'll to guidance outlook, to at daunting that come to optically, has or an data. way, which now light we've a to So around implying the there's And first questions of in get of get a looks your off sure not that that in shape to ability been I'm X% range, to what Nielsen X% and

tease things? and those outside put nonbranded walk a of the large or little the quantification us you that and are Nielsen. expecting. what how can of maybe through, scope international these more So some building again, Remind So of mentioned like on us blocks you're are you

back going to a dampen dampener. half? be as situation And does longer contemplating in much the capacity we puts that's have your X% growth? takes no should that are confidence a and How what be ability mentioned to get that in X% dampener other that to to the You your

Okay.

let part which with forward. the Jason, answer, first today, as situation part the -- with which second will go the looking me of start is of start Samy on is the me Let and

us. know at So and you something story for It's best, this, probably as the only thing, the usual, Nielsen first is XX%. like of part

several percentage Street X% Wall better is a XX data the of months. Foodservice, include Nielsen it's So data. than Green obviously Cuisine, drag past which been the all

was is a definitely Nordics tailwind X% been the a tailwind. Nielsen. there. starting past, starting It in Now QX. has will to it's International get a QX, in drag not in tailwind in be a

So X first part, results. to word obviously obviously for what Nielsen will big With the our I for that's quarters Samy is the the second difference obviously which the says the the final latest and between that, for give estimate year.

Yes.

think gets piece in are momentum the category in have you our you assumption The Green up XXXX, as are the clearly, will Jason, you included X% that go. step-up all overall. growth in clearly that versus guidance for you there. our expect I our said, and the recently, which branded X the first to that the as clearly, the the but Stefan mind internationals Clearly, slightly include if gains have half keep that us is to the on grow we than foodservice building there. for that want, other effective easier And retail the think I that would X% in you element we is not on effective half decline X -- of need reiterating, combine is modest in as fact year-on-year. the comes has numbers, confidence seen, of that to in And Must I mean, the with share one Cuisine actually we Win foodservice fact Battle stepping

Our question Suisse. is next Moskow, from Robert Credit

different. question X, -- but same the Bad as last little news is so a to the going be maybe it's

a like, Is or Did a in did of half average XXXX? of there You data gain that you don't on And in us your data peers has Do of portfolio. a you then have a you share basis market follow-up. share give time? lot any XXXX? how think lot way ever share a trended lot you depends from internally? over And of a share of seen share I've but of could gain us how lot gains, weighted do data your back And sense on give you think share on said percentage Nomad I their market trending. a is the

-- only that And terms Well, I our appreciate in more think share terms again, sales, in would past. was in up of of overall, is market not absolutely consistently in even but you which think terms fundamental. importantly, margin, of the I

really also combination, it's and Must Battle. a margin will Win mean So

profit Battle, terms gross gross And Win Must is as even is even the of So -- a market result, in our share market up margins bigger. more. share margin,

that. that's So

In market was terms modestly, we mentioned say, share share said that XXXX, down. constraints. by QX. I driven Same that, capacity the thing said, would mainly market for we as of We was

level You remember XXs. that service down to the our low went

are So look with this we is go can up, flat. you can that, But only incomplete, we obviously, we up. a intensity, unsurprisingly lower it May promotion and and but with and knew what July down, June is happen. at at QX, what with would still QX was we and see this stage

we but And make already fine, more will we So stand. think I that we something communicated, it it's that's even straightforward. where

it. appreciate I'd Right.

from Inflation, are right XX%. they're of it a Is you it companies Another by seems us even digit, where Is maybe you follow-up. getting. single heard higher other I mid-single? that? It be can currency? to how give as quantification sense high But you. than from heard inflation to it offset we've now? much Is haven't

is fact other clearly, inflation, instance, We the mean, and us for in FX in position given structure similar goods we share the great vegetable are actually order tailwind, our say, reality that through as say, our scale. portfolio putting market mean, we is #X I seeing not a is I stronger let's inflation of portfolio buy have And business for us, playing and packaged of companies. mean, is inflation a clearly And that fish helping us navigate, you the buyer, us example, know. for we mean, fish see I to our in -- our inflation is indicator modest in definitely here to are high that mix world. a the because let's more is clearly, and But I white necessarily there. a with we

perspective. able, leverage I So from we to that clearly mean, are scale our

But navigate I scale, of is and as you indeed, help revenue all have is. well, manageable lot a the for. we ways we very continue want have, deploy pricing the as year year. if that factors have way after Mix to mentioning there clearly mentioned. inflation, a I and a we management, productivity, definitely not net So through well had given which efficient already to And more as which of called mean, effects, in I

[Operator Instructions].

Our Bank. Faiza from Alwy, Deutsche question next come will

about you again. much I up core So in follow your the I first decline guess, also just into expect on go top line the are half this back we markets? category to how as wanted able talk to to you

that one. assumption modest as in mentioned. for actually single have sure. our Actually, overall. that's low already is category digits growth on we take And for expected where is we our branded the business, are to I'll decline And

I wonder the it's initiatives you bit of if can variation have the little through Because as we the back but tougher or quarter. And go that is some towards some the that international of product comp have, more about you Okay. talk you I of fourth in half? a more of know sort any XQ, might other that are sort the whether initiatives quarterly catered

the So back the just in any X on half. further color quarters

a on the Sorry, just for I point sorry mean line, that. there was

I So significantly comp, in we mean, QX, modeling. mean I we're to easier. really SG&A. detail. the the the are I walk going Taposh And would walk will I to through get invested sales mean, mean QX then you -- through

well. present comp that as So easier an

So will the modeling that specific through that. I relates requesting, you take you're it to Taposh mean, as

Got it.

to some I doing gross about gross the you you of might be think incremental might if of Okay. margin, around talk And maybe that much then you your related versus it line? as on margin, back about inflation highlighted boost wonder just the that the promotions cost just conservatism how the top to we half, could be

Yes.

Our full year are gross margin Faiza. unchanged, expectation

already I mean, year. we our you see. really think, And I have are cover, material a and the have locked seen, raw for to continue we as good

where overall. value is of grow which top up I needed stepping important part line the promotion, promotions an of are gain is let's contribute we and want to to, are category consumer mean, say, growth promotions share and us, how you For our if the sure. for And model. business course, a Retailer this

So close think, I mean, I is I gross year are the expectation, the just full I the our I to overall, margin reality for clearly they said on your are to year. question, unchanged, mean, mean, unchanged,

from is from Jon Securities. CJS question next Our Tanwanteng

freezers? retailers cases variant. I net a can't Is of and with you one, get like not the talk since consumption labor stock... resulting specific between you're the just wondering, headwind? desperate played the in market, July empty rise Delta empty your Maybe a biggest in first and tailwind things fall Or for other My out more that maybe can how and shelves and more is you trends the you shortages that's was and for guidance around providing know COVID stock? it But the U.K. I about is

big July when When can market the it's will is, our is Yes. overall, -- what it point. to think remains a an picture U.K. one, Nomad you the share. in is I improvement, what's think it's interesting be important It small happened but month. for -- But improving be, your

of happened the is there a what that's the in bit the retailers after tailwind U.K., even with And if that. result So better. of

obviously, so Fortenova, ourselves. with going to we're close preparing So of QX, probably end as we're

also obviously So ice interesting to of interesting an complement that's us. in cream, terms an one

that's with Delta stage, So any Delta the haven't with to thing. that change we game. is, but come

lockdown. we're think stage, So expecting any not at this I additional

the versus more Okay. level shares? comfortable see But Great. to it maybe in how your to on should it's we given good leverage there what of Xs And to near authorization. repurchase the debt actually willingness debt in leverage just paying makes net then the share your and capital down of -- just term, repurchase high allocate think

unchanged. is position Our

decided, was let's think the exhausted. shareholder on trying mean, our say, agreed the value program I old Board has XXX and And EUR I authorization enhance to, continue million. to We clearly have overall. to to focus

now is authorization. focus level M&A. near-term and flexibility on Fortenova Our of And another added with we've this

we questions. no Instructions]. present, have At further [Operator

Okay.

we questions, remarks. back for Stefan further why to no don't if are go his closing So there

Okay.

Let to the to point, final me Taposh. go your remark

participation your today. thank you again, So for

targets. on balance peak Second In have achieve as day. to and see, navigating to creation are return our with build model. we're out-of-home a the we to anniversary we and year of pace the our sheet of And and a we to power scale quarter welcome portfolio. new a of financial EPS resilience you continue great year, and our brands, summary, record the number performance and results the the achieve this dynamic factor you, can adjusted foundation XXXX strong to We in our inflation. ago. are consumption Thank pace our meanwhile, COVID demonstrate acquisitions on despite deleverage demand of value on remain macro guidance long-term received But our for