Do & Co Aktie

Ladies and gentlemen. Welcome to the results for the business year 2025, 2026. I'm [indiscernible] operator. [Operator Instructions] and the conference is being recorded. [Operator Instructions] Attila Dogudan, CEO. Please go ahead, sir.

Thank you very much. Ladies and gentlemen, good afternoon to Europe, Turkey and Middle East, and good morning to the. This is Attila Dogudan I'm together with Jones in Mexico. After the for joining Formula 1 in Roselona and the other are Chinese Indiana. So obviously, we are very happy to present our business year results of 2025 and 2026. .

Last business year was the best ever in company history before we go quickly through the presentation, I want to say on a macro level that we have achieved all targets we wanted not only financially even more importantly, the right strategy, where DO & CO going to.

I have to say, this was a super achievement of the DO & CO great teamwork. So we have to say a big venture to every single employee in this company. And it makes us proud that we are well prepared to the next round of growth, but smart growth, which does not low on revenue only, like we have proven out in the last couple of years, which goes on quality growth with further margin improvements in the future.

DO & CO more and more is positioned as a premium brand on the 1 tenant or go from your championing, just 10 this 2 weeks ago in Budapest, which was very successful and up to where we are today in Mexico, where we are part of the biggest or demand in the world posting only today almost 8,000 VPs. We just opened the doors at [indiscernible] here remember that you have asked us many times what is the outcome of the tender of the people work cut and we couldn't give you the answer.

As we have on our own answer, we did not get an answer. But finally, and this is sometimes the specific of this business. FIFA then who had basically sold the rights of the commercial programs or somewhere else with ownership and awarded us for the most important 3 locations, which is Mexico with the opening game and Miami and New York with the final and the same, I think, same time on qualified majority is taking place in this area.

And believe or not, we have only signed this agreement last -- end of last week. So we are used to this. Maybe you are not so much. So we are so at the end of the day to the year, and we're happy that we are a global premium and reliable partner when it always comes to big cortile -- now maybe let's go quickly through the presentation.

Obviously, I guess you read already the revenues of $2.461 billion, an increase of 7%, the highest ever we had on constant currencies, it would be even an 18% growth. EBITDA, the EUR 300 million was really products with an increase of 15%, maybe 12.3 million, 16% increase in net results of EUR 15.8 million, which is an increase of 14%. But even more important, we believe, is the development of the margin to 12.2% in EBITDA so 8.6% as we always promised 8.5% net results, 4.3 million.

So bottom line, I think the team did a great job. And although there were a lot of a Middle East and these kinds of things, but then we're going to come back in a minute to this. The 3 divisions you see already a given 1.9 and 323 million and versus 18 million so you see all divisions have increased not only revenues, but more important, as we always focus on with the margin. First time the 2.4%, obviously, the free cash flow of EUR 225.1 million is an increase of 80% in comparison to last year not maybe everyone is happy with that. We are super happy with our net debt-to-EBITDA ratio 0.05, which gives us the opportunity of really that ceilings during announce Corona that we are strong enough on the market with an equity ratio of 42.7 to go to the next step as we mentioned -- as I mentioned earlier, with the growth strategy on -- based on product.

In airline catering, we won more tenders we see it in the presentation then, we have a board letter from American Airlines in Chicago. Starting next year, the contract is not signed up we have been awarded with that. We've got years where you see in [indiscernible] which is a lot of flat too.

So if you look to the portfolio, you see a lot of clients who are all over the world. and all of them obviously, like what we do, and we are very part this portfolio. In rent catering, Mexico, yes, this is emotional for us very important. As we did the [indiscernible] last minute in Qatar and now has been awarded for the 3 most important cities and the restaurant balances with margin improvement and is basically the basis of the success of the other 2 divisions.

So innovation, quality and people are the drivers. When we come back to airline catering EUR 1.9 million and the EUR 230 million and the EUR 159 million in terms of EBITDA yield, strong numbers. We believe that what we do here really makes sense. The focus of quality on one hand and on the other side, anything which is commodity being as efficient as possible is a good mix for all the airlines who basically, at least in our portfolio, trying to increase quality.

We see this almost everywhere of the network carriers. And we are not winning destination, I would say, for pure low costers but for any one with flight network and has a more complicated and complex product don't go direct partner. Turkey, always over the price of of the company yet. Why? Because Turkey and Turkish Airlines is almost focusing in every detail to deliver best hospitality, which is in the DNA of Turkish. So this really makes sense.

We are working on ongoing product innovations with strong volume increase in the number of aircraft, which have been already ordered to the and will almost double in the next tenders assembled to the strategic locations of relocation. We have a strong market position with third-party clients as well. So like over 90%, I been almost 95% of the market is covered by us.

And as you see at the picture on the left and below the back cranes and the construction has started with the biggest kitchen in Europe, I guess, is in the world this is participated one on this plan. IG growth with eos in Iberia, close partnership with [indiscernible] Why? Because we deliver what they expect on the NPS scores have gone up fresh menus and this is always the trigger is a driver of customer satisfaction, which an end of the day, product having no additional preservatives with all the hiccups in the radio production.

Obviously, we are not doing anything wrong every day. But overall, we see the great customer feedback, which is the driver then for the next contract. Iberia is the same ordering and gas experiencing more and more clients winning various competition awards, which makes us happen. New carrier in the U.S. as I said, the contract is not signed, but we have been awarded in writing.

American is the second biggest airline in the world, only behind United at 2.3 million passengers for us, a great opportunity, we should cargo from next year on to show that we can hopefully give the add value to American makes us very proud, and it's a good news I think, for the American market.

JetBlue, further strategic partner. I think the one reason just yesterday today, West American [indiscernible] terms of food and beverage. So again, there is a portion of us in this work, too. The other new clients I'm not going to mention all of them that you see in the presentation and the new contracts with it from the Canada is always getting more and more case of the world.

So it makes us very proud in terms of the portfolio. Coming to the next division, the International altering $222 million of revenue only 6% increase with EBITDA 9% plus EUR 23 million or 7%. So please keep in mind that the euro did not happen this year. Total sales growth with the 15%. But as we said, we need to go on quality only, and this is showing us, and you will see in the next 2 years, the next, I would say, steps in this division.

Formula One is doing super well always are sold out. And with our maximum number, we have been last week in Monaco with a completely new [indiscernible] on TV, where you have first time really is something impressive in the visual of Monaco when Super World incredible customer feedback this weekend from tomorrow is Barcelona and then Austria and Silverstone at the same time with the World Cup here in U.S. and New Mexico.

But it's everywhere strong demand. So we are increasing more and more the quality because we see that the money goes from luxury business to this kind of event business. People want to be in this premium demand, and this is something which really posts in social media. And in this game, I think we have 1 of the most reliable partners, brand in the world, being able to deliver the negotiation.

As you see in Mexico, we hope we can deliver it. It's a tough book year. We weave almost 7,000 guests in this for weeks. So we'll see that we can deliver what everyone expects from us. [ Alianterena, ] same game, super long partnership with F1. We're going in a new phase with renovation in [ Aliantarena, ] which will start next year where we hopefully get a new level of hospitality experience in the world, definitely in Europe.

Environment, if it's the right partner to support this, and we are very proud to be with them for a long time. [indiscernible] concept anyway. And I think as a [indiscernible] is only not so much here, but it's a great business case because it's first in a stadium, which has doubled utilization through skewed takes almost everybody 2 or 3 events, at least in a stadium, I think 10,000 or something like visitors.

We do the VIP and the public in a close relationship with by Munich and Red Gold, both of them, great partners for a long time. Ten with the Madrid, as you know. So growth seems to. So all these other events was not in terms of figure what I already mentioned, I think enough so we'll see where we are today in the afternoon of in Europe.

So we are well prepared. We have more than 1,000 people, 1,200 people working here in total 200,000 people working in the stadium so it's not a small operation, and it's a big opportunity for us to be the benchmark to especially the margin market, how we can run a football side.

So far, our visibility was only in Formula 1 with the races in Austrian [ DataSIM ] first time in stadia and Sadiola as a net driver in New York, the [indiscernible] Luckily, the stadium where the Formula 1 happened. So we left our equipment there, which during the raise a couple of weeks ago, and we know it is the circumstances of the whole setup in the harder stadium.

Maselis, the one which is for us emotionally and number wise, very important and EUR 18 million of revenues we million EBITDA and the EBITDA is an increase of 19% and 27%, which are great numbers. So we see more and more that this business, which for so long time did not make money is better managed, and we see that the portfolio we deliver in the mix of [indiscernible] airport as one really makes sense.

The hotel in Vienna is coming out to a renovation, we're going to close down next week for 2 or 3 months. 2 months and make a full generation of the building. [indiscernible] as you know, we won in Indiana for the next terminal extension next year, a couple of locations. So bottom line, it looks good and was a good year.

So thank you very much for listening. Johannes will then take over with the numbers, and then we are happy for the Q&A. Thank you very much.

Thank you. Good morning and good afternoon also from my side, and thank you for joining us today. Before going into the details, let me briefly summarize the key financials for '25, '26. Overall, we have delivered strong underlying growth, improved profitability and a significantly stronger balance sheet. Most importantly, our earnings are translating into cash at a very high rate underscoring the quality, resilience and scalability of our business.

Let me start with the income statement on Slide 28. For the full year, '25 '26, we generated record revenue of $2.46 billion, an increase of 7.1 on a reported basis while constant currency growth reached 17.6. At the same time, profitability also improved further. EBITDA margin increased to 12.2% from 11.4%. EBIT margin expanded to 8.6%, up from 8.0% and net result margin improved to 4.3%, up from 4.0%.

This is not just growth. This is higher quality growth with expanding margins across all levels. Turning to Slide 29. I would like to draw your attention here to the fourth quarter. Revenue increased by 13.4% year-on-year and 15.3% at constant currency. The FX impact was limited in Q4 with only a small gap between reported and constant currency numbers. EBIT margin came in at 8.3%, and broadly in line with last year and net margin remained stable at 3.6% despite the challenges in the Middle East. I will come back to this impact on the next slide.

On Slide 30, looking at our divisions, you can see across all 3 segments, we delivered constant margin expansion. In Air and catering, our largest division, Organic growth reached 19.5% at constant currency, supported by new customer wins and solid demand across key markets. In the fourth quarter, constant currency growth was 13.4%. This was impacted by the Middle East conflict for around 3 weeks in March.

Cantel Flights had a negative revenue impact of approximately EUR 23 million, partially offset by around EUR 7 million from additional flights. So excluding this growth would have been close to 17% with stable margins year-on-year.

In international demand catering performance remains extremely robust. EBIT margin at 10.4% and the business grew organically by 7%, again, driven by strong sustained demand for premium hospitality at major sporting events. Restaurant Lounges & Hotels, EBIT margin increased to 10.1%, up from 8.7%. This was supported by strong demand in airport lounges, high utilization in our premium restaurant portfolio.

Let me now move to the balance sheet on Slide 31. Cash increased significantly to EUR 240.8 million. Trade receivables declined by EUR 7.5 million, driven by strong collections and PPE decreased by EUR 21.3 million, mainly from currency effects on our U.S. assets. On the liability side, our equity ratio improved from 35.8% to 42.7%, supported by higher retained earnings. In '25, '26, we continued to reduce financial liabilities. Lease liabilities came down by EUR 20 million, largely in the U.S. And during the year, we repaid EUR 55.8 million of bank loans.

To put this into perspective, since 2022, '23, we have reduced bank debt by EUR 247.9 million. This reflects strong internal cash generation, disciplined financial management and this is a structural improvement, not a one-off.

So you can see, overall, our balance sheet is now very solid and well positioned. Turning to cash flow on Slide 33. We again delivered a very strong cash performance. Operating cash flow increased by EUR 70.1 million year-on-year, driven by higher earnings and positive working capital effects. [indiscernible] already mentioned, the free cash flow, which was very strong at EUR 25.9 million, 80% up from prior year.

Please note that CapEx was a bit below our expectations 1 year ago at EUR 52.7 million. And here's the key point of alive, even after repaying EUR 55.8 million of bank loans and paying a dividend of EUR 22 million to our shareholders, our cash position still increased by EUR 66.6 million.

Finally, on our leverage position, we are now very close to a net debt-free position, I think a major milestone for the company. This is a structural improvement driven by strong earnings high cash conversion and minimal leverage.

In summary, the past year reflects the consistent the continued improvement across all key financial metrics. The positions. This positions us very well for the next phase of growth and sustainable long-term value creation. Thank you very much for your attention. I think we are now ready to go for the Q&A session. Thank you.

[Operator Instructions] And the first question comes from Julien Richer from Kepler Cheuvreux.

Congratulations for the great results. A few ones for me, please. The first one if you could please give us a little bit more granularity on how you see 2026, 2027 in terms of revenue what might be the impact of the additional signatures airlines that will be partnered during the year?

Do you have any new bases in mind new kitchens in mind for '26, '27 and what kind of impact from Middle East do you expect and the World Cup impact also. So in terms of revenue, basically some granularity on how you see the growth next year. And in terms of EBIT margin, it has been slightly down in Q4. We don't know what is going to happen with the Middle East in the coming months. But do you see margin involvement in margin evolution, sorry, in 206, 27?

Second question in terms of capital allocation. As you said, you are now almost net debt-free. What is your capital allocation strategy? You have won a contract in Mexico City, where, correct me if I'm wrong, you have no basis not kitchen there. So you have Iberia also that is pretty strong with LATAM. So is it maybe the beginning of story in Latin America and Mexico.

Do you plan to make some M&A for growing your exposure to Stadium in the U.S.? So I would be interested in your view on the capital allocation strategy. And last thing, a quick one on the impact of the Middle East.

You said EUR 23 million of negative impact for the airlines during the 3 weeks in March. Is it something that we can extrapolate for April, May and going forward until the conflict is ended. And I calculated for March, a negative EUR 4 million impact on EBIT, just wanted to check this one.

I'm sorry. But I think the speakers might be muted. We cannot hear you currently. Sorry, Julian. So now it's working again.

We charge revenue -- the revenue for 2025 -- '26, '27. So it's the current development in the Middle East continues as seen in recent weeks, we are targeting around 7% to 8% revenue growth for 2027, reported and double-digit at constant currency.

Of course, so that's what we see for '26, '27. In terms of margins, EBIT margin, our guidance for this financial year is between 8.6% and 9%. Of course, it depends on the conflict in the Middle East, but that's what we have in our forecast at the moment. Regarding the EBIT margin in Q4. Yes, you're right. EBIT margin is impacted slightly by the Middle Eastern conflict. So I mentioned the EUR 23 million in revenue reduction. But on the other side, we have EUR 7 million of positive effects. So net is EUR 16 million you can consider about EUR 2.5 billion or EUR 3 billion impact on EBIT.

So if you add this to our numbers, you will see that our EBIT margin in Q4 would have been 8.6%. And 8.7% in total year. So that's the impact, not only on top line, but also on our EBIT margin. The third question forward now to Attila regarding capital allocation and Mexico.

Maybe first of all, the WA impact, I think, is between EUR 30 million and EUR 40 million, something like this, depending on what's been really happening. So we have indication obviously how many gas we have -- so it's at least the 3 something up to 40%. So this is what we expect. Can it be more?

Yes, more people simply buy in and here in the 3 locations where we are -- regarding Mexico, you're 100% right. I mean here we have a temporary kitchen next to the stadium where we can produce. But definitely Mexico and Latin America is especially in the context with Iberian with all these things we should do in this region how should I say, a business case, which really might make sense for the future.

So we're evaluating this or have started to emanate this. That's the part on Mexico and South America impact of miles, I think Lane answered already. And please keep in mind that even the impact was not helping us in our numbers, we could manage it somehow. And sooner or later, they will come back to.

There's no way that Qatar and Emirates will not fly. I think MRs investing billions in better product on board and Qatar is the same. So end of the day, we have premium practice of them see their home base and see what happens when they are back.

So in total, what Johannes said EUR 2.6, EUR 2.7 billion for this year, I think is a reasonable estimation. And as we said in 3 years' time, we are adding the close to EUR 3 billion. I think this is absolutely reachable -- so we expect the year after something between EUR 9 million and EUR 3 billion.

So this is without any M&A. So this is the current business development, which we believe really makes sense and a reasonable internal operational tool. So if this okay? Or is there anything missing on your side?

In terms of new bases, do you have current discussions on potential large new kitchen at some airports or new airports where you could operate whether it is in the U.S. or in Europe?

Yes. We are looking at, just to be careful, but I cannot give you any more detail. I mean, obviously, if you have this kind of financial set up. And obviously, we know that not only you got will ask us what you're going to do with the money, for sure, we are thinking that the key is I don't know how much it came out, the quality growth means where can we grow, where we do not go in stupid commodity go margin business.

So this is what we do not want to do. So we want to go in partnerships. We want to do in joint ventures, we want to go in [indiscernible] on a net value, which we can create for our clients and then get a nice return on that which then in their balance sheet doesn't change their life, but in the image of an and really makes a big difference.

And at the same time, I mentioned already a few minutes earlier. The reason why we said the very last moment, yes, to do fleet we see how many tonnes you get the chance to show the American market that you can do hospitality in a different way.

So yes, for us, it's a tough cookie. Believe me, usually, we would plan the World Cup like for 2 years. We had, I don't know, 6 weeks and 4 weeks. And it was even not until the end, clear we're doing it or not. So we took the risk. And the only reason is we believe if we can deliver in Miami in the New York and in Mexico, obviously, a super product and in comparison to the competitors than the next business in U.S. canon. This is what we believe.

So our advertising is basically to make our clients happy and that's what we do. and not going for this revenue, which only we just revenue without any margin. So what Johannes said in terms of increasing the margin from 8.6% towards in is simply the next step. And then we always said the year after, obviously, we want to go having #10 under circumstances, which are okay. So it's no middle is in carrier is flying, obviously, then you suffer but to suffer on a different level than anyone else.

So I think we're still the strongest company in this industry now, and that gives us the opportunity to segment on all the premium leave the low margin commodity business to the others.

Then the next question comes from Patrick Scheiner from ABH.

2 questions from my side. Firstly, congratulations in American Airlines customer. How do you expect the business with them to scale over the next 3 to 5 years? How does award affect your group strategy in the U.S.? And secondly, the EUR 30 million to EUR 40 million revenue impact from the World Cup you mentioned is in U.S. dollar, right?

Yes, correct, Patrick. We're talking about dollar.

[indiscernible] I mean that relationship in a like Chicago is at least not long to flat today. And we have always a chance to convince your clients by doing it better than someone else. So we are everywhere in heavy competition. And I think the reason why we put in the presentation a recognized 223 million passengers is obviously showing you the opportunities and the upside.

But like tens tournament, you're not going to think in round one who is when you build against whom we were going to play in a final. I think the first step is now to do this around one with them. What we really like with American is the way how the chemistry works. So the whole relationship started in London with where we have them on some occasions, and then they like it, and then they got better NPS scores. And then -- so it's always the same story. So if you make someone happy and they rely on you and they see a partner in you, then we have opportunities. I mean someone with 10, I don't know, 200 aircraft or 1,000 aircraft is always a great partner for the future. But our first objective do this well, then I'm pretty sure it's going to be in the next 100%.

Then the next question comes from Vladimira Urbankova from Erste Group Bank.

Congratulations to your results and maybe some more details on some issues which were already touched Elias. So this American Airlines this contract, how much it brings you for now to your revenue line? And do you need to make any bigger investments in Chicago to accumulate accommodate needs of American Airlines. And with this respect also a question, how much do you think will be your CapEx in fiscal year '26, '27 then a little bit more on the Middle East. You were talking about net impact of EUR 16 million in March. Of course, this was the phase when almost all traffic was closed in the Gulf region so how does the situation develop now?

What are the currently net loss sales compared to expectations on last year in April and May. And how do you see it maybe if situation will not escalate for this year? What could be the overall impact of the Middle East on your company?

Okay. Thank you, Vladimira, for your questions. So let me start with the first one. American Airlines, the revenue, the starting point here is EUR 50 million around for one year. [indiscernible] have 17 flights but a lot of domestic flights, yes? And your second question that was regarding the space in Chicago. So we do not need additional kitchen space for that customer, but maybe logistics space. That's what we tell you all the time.

We have still a kitchen capacity in most of our kitchens. But what we need if we win a tender like that is normally a logistics space, which is also not CapEx intensive, to be honest. And yes, of course, we need also trucks. The second one on the CapEx guidance for this year is around 3.5% of our revenue.

So I would expect around EUR 90 million. Last year was a bit lower. We have a lot of projects as Attila mentioned, in our restaurants, but also with our units. So please expect EUR 90 million for '26, '27. And the third one regarding Middle East. So we see already improvement I mentioned the minus EUR 16 million net effect in March. So we saw that this number came down in April to minus EUR 14 million in May, minus 9%.

And we also expect improvement in tune. So then maybe July onwards, we expect something around EUR 5 million to EUR 7 million. So it's not a big impact in airline catering and then our last division of restaurant lounges hotels, the impact is low, to be honest, it's around 0.5 million per month at the moment, but it's getting better and better. I hope that I answered all of your questions.

Yes. Maybe can I add something no one is asking what happens for the Middle East and [indiscernible] full capacity, then you boom in the other way around. So we're just talking about what we are losing. But once there is a peaceful environment in the region, then it goes the other around because they will go aggressively on the market to get all the clients back on and attracts maybe people who do not like because they have to fill up all the planes.

And as you know, the culture of the Middle Eastern carriers is quality oriented. So they will invest to get clients and the fact people to fly. And we are very confident. That's the reason why we say sooner or later, it will come the other way around.

[Operator Instructions] And the next question comes from Miro Zuzak from JMS

I have a couple of them. Is it okay if I take them one by one.

Yes, of course.

Okay. So the first one is on airline catering. I mean now you've just given quite detailed numbers on the Middle East situation. We've also noticed the decline in organic growth in Still, full year growth in local currency was 19.5%. Now you mentioned the 7% to 8% growth in reported currency for 2027.

You said more than 10% or double digits in local currency. Now do you expect like an underlying decline in the growth of the airline catering business? Or is it just that you now expect in Q1 probably there's going to be some kind of, I don't know, EUR 15 million, EUR 20 million of impact from the Middle East, but the underlying growth is continuing or even accelerating. Can you comment on that, please?

Thank you, Miro for your questions. So please -- so maybe the first point regarding the difference between reported growth rate and constant growth rate -- for '26, '27 now we expect a difference of around 7 percentage points based on the FX forecast that we get from our banks. So the difference between those numbers should be lower than last year. as you know, in 2025, '26, the difference was more than 10 percentage points.

So that's why we're talking about 7% to 8% increase in reported currency, then constant tires should be somewhere about so close to the numbers we had now in Q3 and Q4, without the Middle Eastern effect. Because as I mentioned, without the 3 weeks in March, our constant currency growth rate would also have been at 16% to 17%, which is in line with our Q3 growth.

So we do not expect any decline except the situation in the Middle East, but I think I talked about that in detail. But yes, we do not expect any other decline, no.

Okay. And the second question is on the margin. I mean you mentioned, I think, if I understood correctly, you mentioned 8% to 9% in 2027. Now this seems to be like a broad range and even especially the lower end would basically mean that there is quite a significant decline. Could you qualify this a bit what the drivers are, whether you basically reach the top end or the low end of this guidance?

Yes. So I mentioned 8.6% to 9% so of course, we don't want to get 8.6%. So it's not 9%, it's 8.6% to 9.7%. So it's a very close spectrum, to be honest. And it's again a combination of, of course, new contracts or provisional leverage efficiency improvements. So all the topics that you know anyway.

And then I think for the next step, 9% to 10%, again, it's the same story together with automization and also provisional leverage I think we are well positioned to reach that. We started at 6.0% 3 years ago. So I think we can see this is really a sustainable margin development, which we also see in the next years. and hopefully not below 8.6%.

That's also very clear. Okay. That's clear. And that's reassuring. And one more question on the structure of the P&L. So if I look at the development of the personnel expenses versus the cost of materials, then the shift seems to be ongoing.

So your cost of materials are going down, your personnel costs in terms of -- like in terms of percentage of revenues are going up. Should we expect going forward that this is basically going to continue? Or is this at some time plateauing at a certain level?

Yes, that's a good point, Miro. That's a development that we have seen now in the last years, you are correct. It's a shift, especially from agency staff to fix stuff, which also improves our efficiency.

And you know that in our material cost also agency costs are included. That's why you see the shift here. I think the shift continues, but maybe a bit lower than in the past, to be honest.

But it's still for us a very important trigger to improve efficiency to get our own staff to train them so that the people are doing the same task every day so this is, of course, again, on our agenda and helps us to improve our results, of course,

And the next question comes from Marie Teresina from Cantor.

Excellent. All right. Great. So my question pertains to M&A. I mean, with PE potentially looking to divest part of LSG Get Gourmet everything that's going on, [indiscernible] preparing an -- and certainly, the opportunity to buy some local players as you see to grow your stadium business, especially after the fantastic showcase, you will be able to deliver at the World Cup.

So can you give us your thoughts at in on where your priorities would be, if any, in M&A for the next 2 years by business, by geography? And also, if you can give us some metrics in terms of your own sort of benchmarks, what kind of revenues, EBIT margins, what kind of multiples you prepare to pay or not go above just so we are with that when you decide to go the inorganic growth route?

Okay. Thank you, [indiscernible] So on the key element is, as we have already discussed to operate U.S. is a super key market for the future for us. It's that we see in terms of where but we are not ready with enough skilled people in all these locations to take over something what people expect the level locos to deliver.

So this is the reason. So we do not -- we are in a unlucky position that we are not suffering on demand. We're suffering on the precise delivery of a high-value experience no one else can do. So this is -- so we don't want to go in this commodity, as you know, anyway. So that's the reason. M&A is quite difficult.

What we're going to buy -- so if you go in airline catering, as you mentioned, at it will be -- or is on the market at the U.S. LSG, I think the others are sold and already did a great job. Obviously, honestly, so that is super. So would we buy something like with 8 a 10x multiple to get what -- to get contracts, which is pin a few years so I think this doesn't make sense, to be honest.

What makes sense is if you get a platform for a reasonable money, which is far less than the multiple I have mentioned that you can get at least the logistics side of the business, which others don't see in terms of products, and we could add our way of creating the product, then okay.

But for that, if you pay 8x and 10x EBITDA multiple, honestly, you're not going to end up there. It's not going to work. So if you take the same money and invest on your own and growing partnerships with the right airlines with the right partners, with the right media, then I think you can achieve the same in the same time frame on the long run with the far better margin.

So that's the reason that's the answer. So would you go for M&A, Yes, obviously. If we get an opportunity, which we were somewhat successful for and wants to sell the business because I don't know, noon is going to continue or this kind of thing, then obviously, we would go in. If this is in the premium experience business, 100% we will do.

So this making a long story short, the U.S. market is #1 in the past because we were so with the other stores and multiple wide, I think I gave you the right answer. Would you pay 8x multiple if someone is a great contract. And not only the great contract. It's a great product where you most likely may continue and so they're already doing a great job or do you say sometimes, obviously, you would do, but not, I think, in the circumstances where we are today in this industry.

And the next question comes from Christoph Greulich from Berenberg.

Yes, it's actually just 1 from my side. I wanted to circle back on the Middle East situation a bit more the indirect impact that it has on your industry. So jet fuel prices are obviously higher and putting some pressure on the profitability of the airline.

So I was wondering if you have seen any shift in the attitude of the airlines, if there are any signals that airlines might try to save costs on the catering side and if there has been any what difficult pricing discussions with your customers?

I mean, definitely the industry is suffering a lot due to the high fuel price. So everyone is trying to look at where they can be more efficient. On the other hand, the ticket prices went through the roof. So if you pay in the premium cabin first business and even premium economy is considered somehow as a premium cabinet, you charge what they charge today, all of them then you have to give them some copper product because people are getting upset otherwise.

So what we see is the mix of that in economy, you go for , let's say, budget driven, but still His something which does not cure product. And in premium and almost everyone has improved the premium of everyone.

So because the yield went up so much that no one can argue. So even the American cars partially think about doing something and on the other hand, the Middle Eastern definitely go for the better product. And I think they don't go as a good opportunity with the reputation with the brand. We are the only consumer one, consumer brand, so to say, so people see our chocolate and cookies on the desert with the DO & CO regardless of [indiscernible] or Turkish or member and then have a kind of cross-marketing to Formula One experience to the welfare this kind of I would say, marketing mix is another add value.

So if we are in the premium category, which is not the highest driver of the total revenue, slightly higher, which gives us the margins we have, and we don't have a problem to sell. But for sure, you have to work with every client to reduce cost, which is not visible for the passenger.

That's for sure. And this is what we are doing. So we were very open discussion with the airlines, and we do not give them a threat. Some competitors say, if you don't give me the business here, I don't want to give you the business there. so you cannot get the delivery there. So we don't do this. It's a matter of attitude.

And I think our attitude is slightly different with no IPO from the first. Our numbers of -- so thank you very much, honestly today, not too much to say. But we did now that we get come in. We are happy and proud of the results of these I think we have discussed the Middle East, and we believe we're in a good position. We were very flexible, by the way, with the Middle East in difficult time. So we did not insist on a detail of the contract, I think, which comes back to 100% and afterwards, our academy, which we believe is the trigger of the growth is developing very well.

As you know, we have this kind of cooperation with [indiscernible] which is the best in the world. And they will -- I think all these, let's say, details make the whole picture, curating us what is growth for the future and no margin impact regards has happened on the market. So bottom line, that's it.

So thank you much for your time for in us that we can deliver here. Please watched the TV, a great opening show. And we'll see what some happen then afterwards. Thank you very much for listening and hope to see you soon. Thank you.

Ladies and gentlemen, the conference has now concluded, and you may disconnect. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

Ladies and gentlemen, welcome to the conference call on the financial results of the first 3 quarters of the business year 2025, 2026. I am Sandra, the Chorus Call operator. [Operator Instructions] The conference is being recorded.

[Operator Instructions] At this time, it is my pleasure to hand over to Attila Dogudan, CEO. Please go ahead, sir.

Thank you very much. Ladies and gentlemen, good afternoon, and good morning to the U.S. This is Attila Dogudan. I'm together with Johannes, with both Johannes in Istanbul and Bettina and Attila Jr. are joining from Vienna. This time, we are very happy to share our Q3 results, and we'll be then ready for the Q&A, as always, once Johannes is finished.

We had, again, great 9 months, the best ever result in the history of the company. As you have already seen, I guess, revenues have increased, which you see then on Page 3 in the presentation, by 5% up to EUR 1.236 million in total revenues. If you look at the revenue increase at constant currencies, it's 18%. This is the first time we report this as well to have a good comparison for you without the FX up and down, so to say.

The EBITDA of EUR 227.7 million means an increase of 15% or 16% and the EBIT of EUR 163 million means 17% increase. Net result then is with EUR 84 million, an increase of 16%.

Even more important are the margins, but we're going to come back then in a minute to this. You see in the 3 divisions, the Airline Catering with EUR 1.4 billion is a 6% increase, International Event EUR 274 million, 1%, and Restaurant and Lounges 8%. But if you look on the results, EBITDA and EBIT, it's far better, obviously, as you see. So we always overperformed the increase in sales with the results of EBITDA and EBIT. You will see that in a minute, I will come back in a minute then in detail in all areas.

Let's go to the highlights, so to say. The free cash flow of EUR 182 million in comparison to EUR 91 million last year and the net debt ratio of 0.2 makes us really, really very happy. Equity ratio of 41% is another part, which really works well for us in comparison to 32% in the previous years.

We have the 3 divisions where I go back in a minute, but I think it shows that as a team, we, in majority are doing the right things and even more important, keeping our promises to you, showing that our strategy of being financially very healthy and then invest in education and growth is basically the base of what we will achieve for the future.

We are now at Stage 2, means education and strong growth is on the map, so to say. And by keeping our innovation and quality level, we believe that we will be able to scale the business now and the right speed we always wanted.

You might have seen in our press release that we have announced today to commit to 7 new gourmet kitchens, 12 Demel cafe houses, 12 Henry retail, and 3 Do & Co restaurants. Furthermore, we expect growth in the segment of lounges and will go to all major airport tenders where we have a location anyway, wherever there is a chance to go our airport gastronomy, as I think we are now in the situation of being able to scale this in many other locations as well.

So if we go first to the Airline Catering, after -- I think the key, which is always the driver of the success of this company is innovation, quality. And I think the most important, obviously, is always the people who are the real asset of the DO & CO, and they make the culture and the differentiation in comparison to the rest of the market.

In Airline Catering, the EUR 1.45 million means a 6% increase in constant currency, even 22%. EBITDA increased by 16% and EBIT by 19%. There is -- we can go through all areas as we are in Turkiye now. This is an incredible great market. Turkish Airlines is doing very well. We have today the announcement or even a press flight of the 500 aircraft of Turkish Airlines and Airbus 350, where we had a 3-hour flight with journalists, and what was announced again to double this fleet of more than 500 aircraft to close to 1,000 aircraft.

So you see an incredible market, not only Turkish Airlines, all the other market participants, not in the scale like Turkish, but are increasing the capacities, which means for us on this market, very good opportunities to grow with our partner, Turkish Airlines. But as I said, even with third-party clients, we will head up to an incredible kitchen here. As you might know, the foundation is done of the new building, which will be the biggest kitchen of the world with 150,000 square meters and will be in operation in hopefully, latest 2 years and then go up to 500,000 meals. So this is a kind of doubling the capacity of today, and we are very proud to be part of this process.

The second biggest market or the second biggest area, so to say, is British Airways Iberia with IAG Group. So both of them are doing very well in both locations. So we have very good relationships. And I think -- I hope and we see on the NPS scores that we deliver a product which is appreciated by our clients, and at the same time, the clients of the clients of the passengers. This is basically always the most important thing. So Iberia has won, again, the ambassador of Spanish gastronomy and British Airways is very much focusing on quality increases as well.

Delta Airlines, we had trouble when we started, but it's already stabilized now in all areas. So at least we are in a regular business, which does not burn any money. So we're starting to make money out of that, which means on the U.S. market, we step increase and we'll do better.

The other U.S. carrier we have, we are very proud of is JetBlue. So JetBlue does an incredible job, especially with Mint Class, where we have them on the main JFK airport. So when you land in JFK, you see a lot of DO & CO trucks. I think we have a great market share there, which is one of the busiest airports of the world.

Furthermore, in Airline Catering, you have on Page 13, a lot of new clients. So we've got a lot of new clients. The ratio of winning contracts is more than 60% of all the tenders. And if we do not win is the majority that we are not willing to deliver a product, which is maybe not covering our cost only for the sake of market share, it doesn't make sense. So we will not follow this kind of strategy as some of our competitors do. So we see that there is enough growth on the organic side for us and get enough opportunities to get all these clients. So if you look at the list, Air Canada, All Nippon, Cathay, Etihad, EVA Air and so on, all of them are major airlines delivering a great product.

Coming to the second division of International Events, EUR 274 million is a small increase of only 1%, which is basically caused by the non-event of euro in this year. So last year, we had the euro in comparison to now. And if this would be the same size, then the growth would be 13%. So in real business, we grew, but as this event happens every 4 year, we have every 4 years the same problem the year after, so to say, in terms of growth.

Nevertheless, the EBITDA with plus 9% to EUR 35 million and 5% to EUR 28 million on the EBIT side shows that we do our homework. I would say we are proud of all the clients we have in this segment, not only this segment in all the segments, but Formula 1 is the one where we have the tightest relationship, so to say, where season #34 is going to happen now. So we started last week in Barcelona and this week with Bahrain this week and next week with the test, and then we'll go to Australia and then to China. And this season will end just beginning of December again.

So as you know, Formula 1 is now the benchmark of this industry, not only in demand, we have incredible pre-bookings for all the season, and I would say, almost all locations. It's very much appreciated what kind of level Formula 1 delivers in total experience, and you might have seen a lot of comments where money is shifting to hospitality and this kind of guest experiences. So people really like to go to premium events.

I think we cover a few of them, as you know, and Formula 1 is obviously one of the best. Allianz Arena, by Munich a long story, which is a very close relationship too. So it works super well in public and in the VIP areas. Olympiapark, which is under construction now for, I think, 1 year is SAP Garden. Additionally, where we have basketball and ice hockey. So we have every week, I would say, an average 2 to 3 events. So it's fully utilized stadium, which for us, regardless of what's happening is always additional business.

In Tennis, we are proud of the Tennis Masters in Madrid, which is, I would say, after the Grand Slam, the most successful tournament, especially in hospitality, I think half of the stadium is already hospitality. So people go to these kind of events as a social event, and they really appreciate.

The next on the line on what you read is FIFA World Cup, which we did in Miami and New York is a pre-World Cup. So I guess one of your questions is what's happening with the World Cup. So we thought it's done. But now we are sort of partially back in the game. So I cannot give you a clear statement, but it's not over, and we will know it in the next 2 to 3 weeks if we do something and which part we can do in this kind of business.

So it's a little bit weird because it's only 3 months to go, exactly 121 days, I think it was yesterday. But when we did Qatar, it was 100 days before the first match where we were -- we have been awarded. So we do not expect to get all of it, obviously, which does not make sense, but we might get a good portion of it with the important games and the important locations, but we'll come back to you as soon as we know something. The rest is business as regular in this division.

Coming to the restaurant business, plus 8%, EBITDA of 21% and EBIT of 30 shows that what we have promised you, I think, 2 or 3 years ago that we're going to focus in this division. And once we know the good recipe, how we're going to run it, then we will expand. This is the reason why we are now at the position to expand the retail, to expand restaurant business and to expand all the lounge businesses.

We believe we are now settled with the right setup with the right people, which we ongoing will invest in the Do & Co Academy, which we shared with you last time. But we believe there is an incredible opportunity, and this is a B2C business which is driven by us. And if you look to the margins, then I think it's a very interesting part, which was always the small baby in the group, and we believe very much that it will grow strongly.

Demel is a success story since COVID, to be honest, when we started with the Kaiserschmarrn, which is the Austrian pancake, everyone was just a little bit kind of oh, this is nice. But now we have really strong, not only demand, we have incredible frequencies through this product that all the other areas from the coffee shop to anything which is retail, which is merchandising is really, really booming.

The restaurants in Vienna and in Munich, same, nothing special. We will go in some refurbishment, especially in Vienna because it's 17 years old, and we believe the benchmark, we need to have a kind of flagship store and benchmark for the whole group in this one we have.

Hotels doing well, very profitable. We are very happy to go to [ Munich star ] and belonging to one of the best in Munich. Airport gastronomy, the same. We just won a tender in Vienna with a big den location, further Henry's and the big bar. So this business, I think, really makes sense now from now on to invest and to go to the next level.

Finally, in a nutshell, I would say that we are very happy with the steps we did, and we believe this is the best way to sustainably grow this company and develop this company. I can assure you that we are now on full gas, so to say, in this game again and will, as one team, put all of our power to realize all the targets we're sharing with you. And I can promise you on the macro level, so to say, that we are heading the double-digit EBIT in the next 2, 3 years and targeting the EUR 3 billion.

If you see the organic growth combined with what we have announced today, we still, I would say, the target of EUR 3 billion is very reachable in a decent period. FX rates always can interrupt or influence for a period something, but not the business case at all. And that's the reason why we decided to report constant revenues as well from now on. So you have a better comparison of real life, so to say.

I have to say a big thank you to you for your patience in the last months and maybe 1, 2 years when we said we don't want to go stupidly and burn money just for the sake of growth. I hope you appreciate that the strategy of going step by step, first of all, becoming financially super solid and consolidate after COVID, and then invest in people, which we will do constantly, and then going strong growth, I think, really makes sense. And now we are at a step 2 or 3, so to say, together.

So this is in a nutshell before I hand over to Johannes. Thank you very much for listening, and we're then ready for your Q&A. Thank you.

Thank you. Good afternoon, good morning also from my side. Thank you for joining us today. Before we go into our financials in more detail, let me first summarize our key messages for the first 3 quarters of '25, '26.

First of all, our organic growth is double digit across all divisions, as we've already mentioned, even when we exclude inflation effects in Turkey. Second, we have once again improved our margins in all our divisions. I would like to -- particularly like to highlight here the net result growth of 15% and our cash flow performance clearly shows that our earnings translate into cash. This underlines the high quality of our results. In addition, we have further strengthened our balance sheet. And finally, I think we have built our strong financial foundation for future growth, a message that we also clearly communicated in our press release.

Let us start with our income statement on Page #27. In the first 9 months, revenue increased by 18.3% at constant currency compared to 5.2% reported. I think this clearly reflects the underlying operational momentum across our business, while reported figures were impacted by FX movements. More importantly, the quality of earnings has improved. EBITDA margin increased to 12.2%, EBIT margin from 7.9% to 8.7% and net result margin from 4.1% to 4.5%. This margin development is the result of disciplined pricing, operational efficiency measures, strict cost management and a consistent focus on profitable growth rather than volume at any cost.

On next slide, I would like to highlight as well the return on capital employed of 39.8%, which highlights the capital efficiency and scalability of our business model. Looking at the third quarter, specifically on Page #28, we continued the positive trend. Revenue reached EUR 630 million, while slightly below prior year numbers on a reported basis due to FX translation, our organic growth remained strong at 15.9%. This underlines the demand in our core markets remains strong and robust, and our growth remains clearly in the mid-10s.

As you can see on the chart, in the prior year, Q3 benefited from positive currency effects, meaning reported growth was higher than organic growth. This year, the situation reversed. And again, margins in Q3 improved further compared to Q1 and Q2, to EBITDA at 12.4%, EBIT margin at 8.9% on a record level. Net result margin improved to 4.9%. And the bottom of the slide, we want to show you our FX development for the first 3 quarters. And as you can see, Turkish lira is down by 19%, British pound by 3% and the U.S. dollar by 7% compared to minus 6%, plus 2% and 0 last year.

So turning to our divisions on Slide #29. We see margin expansion across all 3 segments, which is particularly again, important from a structural and strategic perspective. So this is a clear sign of operating leverage is now fully visible on our P&L. Gourmet Catering improved from 7.4% to 8.3% on an EBIT level, the International Event Catering from 9.9% to 10.2%. And we made a big jump also in our last division, Restaurant, Lounge & Hotels from 8.4% to 10.2%.

On Page 30, I would like to start with our balance sheet. So I think the most important message on our balance sheet is very clear. We have strengthened again our balance sheet and further reduced leverage during the first 9 months. Total assets increased slightly to EUR 1.26 billion, mainly reflecting the strong increase in cash, which rose to EUR 267 million, up by more than 50%. This increase was partly offset by lower trade receivables, driven by payments received from Turkey, U.K., and U.S. and good working capital management as well as its related reductions in PPE within the right-of-use assets.

If we move on to the Page #31, I would like to draw your attention to the equity side first. Shareholders' equity increased significantly to over EUR 500 million, reflecting strong earnings generation. And as a result of this, the equity ratio is at 41.5%. At the same time, we continue to actively reduce financial liabilities. So our financial liabilities decreased, mainly driven by these liability reductions and also loan repayments. As communicated previously, we will repay the remaining bank loans of approximately EUR 65.8 million in the upcoming periods, of which EUR 56 million will be paid in Q4 now.

Let me walk through our cash flow statement on Page #33. So first, we increased our gross cash flow from operating activities to EUR 199.6 million, representing a 47.7% increase year-over-year. This strong performance was driven by a higher gross cash flow of EUR 220 million and a significant improvement in working capital in that period. So last year, working capital had a negative impact of EUR 27 million. This year contributed positively with EUR 17 million. Again, it clearly demonstrates that we are not only growing earnings, but also converting growth into cash at a very high rate.

Second, our free cash flow increased to EUR 182.9 million, almost doubling year-over-year. I think this also clearly underlines the strong cash conversion of our business model. Free cash flow after IFRS 16 payments is up by 140% to EUR 147 million.

In our last call, we communicated that CapEx will be at around 3% to 4% of revenue this year. So as you can see, year-to-date, CapEx stands at EUR 43 million, full year CapEx will reach approximately EUR 50 million to EUR 60 million, which is a bit lower than expected. And for next year, we forecast around EUR 100 million of investments. So despite investments and repayments, we increased our cash position by EUR 108 million. I think again, our cash flow statement also highlights as well the quality of our business model.

Let's move on to the last page, #33. The net debt-to-EBITDA ratio has decreased to 0.2. This effectively brings us very close to a net debt-free position. Importantly, this is not a temporary fluctuation, but the result of sustained earnings growth combined with strong cash conversion and disciplined capital allocation. Finally, as confirmed in our KPIs as return of capital employed or equity ratio, our results clearly show that our financial strategy is effective. Our organic growth remains strong. We are more profitable and our margin expansion is structural and sustainable. I think this provides a strong financial foundation for continued growth and value creation.

So thank you for your attention. I will now hand over to Attila again, and then we look forward to answering your questions afterwards. Thank you.

So thank you very much. Now happy to your Q&A.

[Operator Instructions] We have the first question from Julien Richer from Kepler.

Three ones for me, if I may. The first one, if we can have a little bit more details on what happened with the World Cup contract? What has changed for this new discussion with them? And if you think this might be the next step for maybe accelerating the penetration into the stadium market in the U.S. So that's the first one.

Second one, in the Event Catering division, the growth, excluding FX is double digit. Do you think that this will continue into 2026? And if you can detail a bit where this growth is coming from, if it's volume, if it's prices. So more details will be appreciated.

Last one on the EBIT margin. So it has been up 20 basis points. Over the 9-month period, it's well above what you initially expected for the full year. So what is your view for EBIT margin for this year? And where is this improvement coming from, especially when you look to cost of materials in the 9-month period, it has been slightly down. What's the reason for that? And how do you see EBIT margin evolving also for next year?

So thank you, Julien. Maybe I'll start and then Johannes will continue. On the World Cup, as you know, we have this reported a few times, and it was a tender process, which took 1.5 years. And as you know, FIFA is not doing it on its own. So there is an agency doing it. They bought the rights of the hospitality. So it looks -- we never got an answer, but we never got a no and we never got a yes, leave it on that, this is in this industry, something which happens. It's not like a big surprise. But we thought that we will say this time this is done, and we're sorry, and it did not happen.

But just a week ago, we received a call saying, are you interesting or can you still do some locations with a decent volume on a double-digit million, but on the lower end of it, obviously, but in prime locations. So we gave, I think, 2 days ago, 3 days ago, we looked and then submitted an offer where we said, if this and this and this happens, then we might jump in it as we have, as you know, existing equipment and everything on the U.S. side and Mexico.

So these are the locations where we have some infrastructure. We have some people, so to say, and we are used to have the Formula 1. And I guess in the next 2, 3 weeks, it sounds weird, but this is, I would say, is the time frame. We'll get an answer if this works or does not work. So I cannot promise you it's going to work. If you ask me today, it's more than 50%. If you ask me what is the size of the business is something 25%, 30%, 35%, something like this for 1 month. So depending, this is the scope, which is possible to happen.

On the event side growth, what we see is a high demand in regardless what kind of premium event we do. And if you look to Formula 1, if you look to Champions League, prices and it's a volume issue. For us, it's less price than volume. But for the organizers, it's price, so they can increase the price now. And we have been asked to go on a different level of experience, guest experience to make the experience like unique. You can talk about Instagram or whatever you want.

So to have a clear answer from our side, we expect higher volumes with some price adjustment, but it's not like doubling. But we see it everywhere that the demand is significantly increasing. So I don't know if someone of you have seen -- there was an article, an economist, I think, saying from the luxury, it goes to this kind of hospitality, and I've been at the World Cup, I've been at the Champions League final, I've been in [ Wimbledon ], I've been here and there. So people take care of this kind of business. And I think we will benefit out of that because there are not so many companies around the world being able to do this. So we will have a double-digit growth in revenue next year. That's what we think is realistic.

On the EBIT side, maybe Johannes give the right answers?

Yes. So regarding the EBIT margin for this year, Julien, you know that our guidance was 8.0, between 8.0% and 8.5%. So to be honest, after 8.7% now for the first 9 months, we are on the upper end. So hopefully, we can also surprise you at the end of this business year. Regarding to the costs, you're right. So material costs are down. I think last year, we had 42.3%, 40.1% this year. Please consider that also agency stuff is included in that line. And we had start-up costs in [ GFC ] last year. That's for sure also has one impact on that. And the other thing is, of course, operational leverage, cost efficiency for material costs and the same for OpEx, OpEx are down from 14.5% last year to 14.1% this year. That's purely driven by operational leverage.

Julien, maybe one more sentence to add. Maybe you guys all underestimated the impact of COVID, not only in terms of revenue, but in terms of hit in the organization. So it took a while until the engine comes back to the regular speed, which is now happening. So we will definitely improve our efficiency in all areas. We'll do better procurement. We'll do better products with less cost.

So as we are on track again, and we feel confident with the financial situation we have as a company, we have the power to improve on one hand, our cost management. And on the other side, we are happy to invest and can invest and we'll grow the business. So it's a dual effect.

Julien, sorry, one answer, which I forgot. So regarding the guidance for next year, the EBIT margin guidance, was 8% to 8.5% this year and then for next year, 8.5% plus. So we're again confident with that number. Although we are now opening a few units in stores, this is still not changing our guidance for the next years on the margin.

The next question comes from Vladimira Urbankova from Erste Group Bank.

Maybe I would like to a little bit elaborate on the latest issues with the guidance. So if I understand correctly, for this year, EBIT margin guidance is above 3.5%, maybe heading 8.5%, maybe heading towards 8.7%, which we have seen in the first 9 months. But on the top line, I think we will have some ForEx headwinds. Maybe if you could elaborate on those ForEx headwinds anticipated for the fourth quarter, respectively, for the full year '25, '26 for your top line?

Then my next question would be related to this announcement about 7 new Gourmet Kitchen, 12 new Demel, 12 Henry, 3 new restaurants. What is the time frame for this? What is the investment volume, which territories you plan to strengthen your presence or possibly enter maybe some new markets. So a little bit more on this plan.

Thank you. Let me start with our guidance. So top line, our guidance, yes, we have to adapt slightly due to FX to 2.4 -- between 2.4% and 2.45%. And on the margin side, you're right. So it's 8.5% plus. Maybe please give us some room to surprise you at the end of this business year. But that's now our current status.

I think in absolute numbers, we are still in line with our guidance for the EBIT and also for the net results. And then for next year, I think which is important for you, if you look back, for example, in the last 10 years, the difference between our reported currency growth rate and constant currency growth rate was always between 5% and 12%. Now it's 13 points, which is quite high. But I think you have clearly seen now the devaluation in dollar and the pound. But normally, the difference should be at around 5% to 6%. So if we grow organically by 15%, 15% to 20%, this should be 5% to 10% on a reported level.

I hope this helps again for your guidance and for your model for the next years.

Vladimira, maybe you asked the regions and locations. So I would say it's 1/3 is U.S. 1/3 is Europe or maybe U.S. is a little bit more, and we will go first time to Middle East, including kitchens for airlines. So we plan to have 3 to 4 kitchens in the U.S., 3 of them most likely in Europe, 2 for sure already, but not so sure that I can tell you where we have to sign it and 2 in Middle East, which will come up, I would say, in the next 3, 4 months as an announcement, hopefully. So we are in a final stage there. And we believe very much that in all the other areas of the retail, we have the same split, so to say, as we can take the risk on the bracket, so to say.

Restaurant-wise, we'll have the first restaurant next year in London. We are ready to sign 2 and then the one is coming to New York. So all what we are talking is -- it's just a 3 to 4 years plan. And as you know, we are always conservative. This is what we have kind of for sure, so to say, and then see what additionally we can do or not.

We feel confident to scale these kind of things, which we stopped for the last 2 years, as I've mentioned, the reasons why. So this is the split of the region. So we will first time be in Middle East and grow our U.S. business. There is no here as a big story. Maybe we -- do something we can do, but we combine always all the businesses and for that, it makes sense like we do it now.

The next question comes from Simon Keller from NuWays.

First of all, thanks for the FX insights you already provided. They were helpful. Still one FX question from me. In Q3, the FX moves have impacted reported revenues more strongly than typically. Now clearly, FX volatility plays a role with that also the comparable base and IAS 29. But was there anything in the commercial setup that increased the sensitivity this quarter, for example, repricing cadence or a timing lag? And also as a more fundamental follow-up for me, also mostly targeting Turkey and the lira, how are your major airline contracts priced? Is it inflation-based or lira-based with periodic repricing or something completely different?

Thank you. So yes, if you look at Q3 numbers, you can see that last year, the reported currency growth rate was higher than the constant currency growth rate. That was purely driven by the effect that in last year Q3, the lira was appreciating by 3%. And please consider due to IAS 29 hyperinflation accounting, we do not take the average FX rate of the lira.

We always take a fixed cutoff date, which means that, for example, after Q3, if the lira is going up, we have to do the exercise for Q1 and Q2 as well. And that's why you see a big impact last year, which was approximately 9, 8 basis points higher on a reported level than on a constant level.

Normally, as I mentioned before, the difference between constant and reported growth rate is always around 5%. That's what we saw also last year. So for last year, again, on Page #28, the difference between reported and constant currency rate was 4 percentage points.

Regarding Turkish lira, so in Turkey, we have part of our business is there on a cost-plus model. So we are in a position to move on any cost increases immediately. And then for the third-party clients, of course, we have our CPI and price adjustments like in all other contracts. So I think the main message is, yes, FX impacted our top line, but not our bottom line. I think that's the most important one for you, and we proved that now for a lot of quarters. So I think that's the main message here.

Maybe let me add on the Turkey side. So with Turkish Airlines, we have obviously a budget, which we have to fulfill and which we monitor every month jointly, which really makes sense. So as we get Turkish lira paid, but the expenses in Turkish lira too is a natural hedge in the same currency. So it just at the end of the year, when you turn it in your consolidated balance sheet into euros, then whatever the FX effects is the FX effect. But it doesn't affect the margin. With third-party clients, well, all the international clients, we have dollar and euro contracts. So over there is more safe, so to say. And this is a business which grows significantly too.

The next question comes from Miro Zuzak from JMS.

Can you hear me?

Yes.

Two questions from my side. The first one on Turkey. You mentioned that you -- with the new kitchen, you can go from 230,000 to roughly 500,000 meals per day. What's in the -- like from the budget from Turkish Airlines, what's the time frame that you need to get there? How many years? In how many years will the 500,000 meals be served?

The current -- I mean, it depends obviously on the number of aircraft Turkish Airlines buys. But as far as we know, and I think this is a public information, Turkish Airlines will double the fleet within the next 10 years. So it's a step by step. So it's...

The second question relates to the announcement you've made with the additional kitchens that you're going to build. Without any further kitchens, I mean, it's a hypothetical question, but without any further kitchens, what's the revenues that you could generate today? And with the new kitchen, how much capacity for future revenues are you building?

I think from our side, the utilization is like in the 70s or something like this. So we can have another 1/3 additional revenue within the same infrastructure, which does not mean that we don't have any CapEx, but reasonable local CapEx, so to say. So this is where we are. It's not every location the same. I'm saying it as an average. There are some which are 85 and some maybe 69.

Okay. And if you build the 7 kitchen, what's the revenue capacity of the entire group afterwards, roughly speaking, EUR 4 billion?

Yes, maybe added to EUR 4 billion. So I think our forecast is between EUR 3.6 billion plus because what can you expect from a kitchen? I think Miami is a good example. I would assume now maybe in the EUR 10 billion and then increasing the kitchen to EUR 40 million, EUR 50 million is reasonable. And if you now consider that we're opening a kitchen or 2 kitchens every year, then I think you will come up with that number approximately.

Yes. But to be honest, I think your EUR 4 billion is the right estimation -- it's not that wrong. I mean we are EUR 1.8 billion now. It exactly -- this is the number which will happen.

[Operator Instructions] The next question comes from Christoph Greulich from Berenberg.

It's three from my side, please, and I will take them one by one, if that's okay. I would initially come back to the expansion plan. And I was just wondering what time plan you have in mind for those expansion projects? What's the phasing of the openings of the new locations? And also, what is the CapEx ticket associated to them? And I was also wondering if you already had pre-discussions with potential airline customers that gives you, let's say, a good sense of the demand that you would meet them at these new locations? And then also if you anticipate any negative margin impact from the openings, we have seen that with some other larger new contracts that in the beginning, there are some ramp-up costs or start-up costs. I'm just wondering if we have to anticipate anything there in the coming years?

Yes. Let me just start and then Johannes, I think, will continue. The announcement what we did today is only for the next 3, 4 years, more 3 than 4, which we believe is super realistic. I mean you're asking customers and who requesting what we would not go to a location if we don't believe that we're going to get clients. So we have everywhere a potential, which we believe we can get.

So we have a portfolio of 60 airlines. And the majority of this expansion is based on a multi-line deal, so to say, on locations where airlines ask us to go there. And if you open a kitchen, then we're going to come to you. So this is the one part.

The other part is on -- obviously, if you open a kitchen, you have some start-up costs, but believe me, we will never hopefully never have -- can experience again what happened in New York. So we had a big running out of that. And this was an extra big animal, to be honest. If you do in JFK Delta with 250 flights is almost you take over, I don't know, no need for something like that. And what we are having here is more a solid how should I say, reasonable, manageable and scalable business, which makes sense. And if we go somewhere, if you have the chance to go in a home base, then definitely, our contracts will be in a way that we will not burn the money which we did in New York. Maybe Johannes, you will add something.

Yes. So from my side, Christoph, I think for a kitchen, you can expect, I would assume an average of 15 -- maybe EUR 15 million to EUR 20 million CapEx per kitchen. On the Henry payment side, the CapEx is, to be honest, not a big number. For the restaurants, maybe slightly above. So I think, for example, if you open 2 kitchens, payments 3 a year, I would assume it's approximately EUR 50 million. So maybe 50% of our CapEx guidance at the moment, which is EUR 100 million from the revenue perspective, I think you can expect maybe EUR 50 million for all these projects in year #1 and another EUR 50 million adding up to EUR 100 million for the next year, then maybe EUR 200 million in year 3.

So yes, we have a clear plan for that. But from the CapEx side, I would assume it's EUR 50 million a year if we open that in the next 3 or 4 years. So it's not a big number, to be honest, because we know that Miami was a bit more expensive, but I think we learned a lot and we have a system now in place to need lower CapEx for a kitchen. And regarding the margin impact, sorry. So I think it's now the level that we have easier for us to absorb start-up costs. So that's why we do not change our guidance on the margins, to be honest. So on one side, we want to improve them, and we are able to also absorb some start-up costs. I hope this was helpful.

Ladies and gentlemen, that was the last question. I would now like to turn the conference back over to Attila Dogudan for any closing remarks.

So ladies and gentlemen, thank you very much. I hope the first 9 months was okay for you, and you like the way how we proceed. And basically, what we did always is have an open communication with you. And I think if there is something, hopefully, you think which fits to us is that we always tell you what it is. And we went this step-by-step strategy in full perspective of growing the company without losing margin, without losing quality and reputation. This is one of the assets and culture.

So we feel very confident now that we can give, as I mentioned, full gas now still in a proper way. And as far as we see, no surprises for the year-end. And the forecast looks from our side, very good in all the pre-bookings and all indicators, as I mentioned, regarding hospitality, all the flights are full. So we -- currently, we have to knock on wood. It looks very good, to be honest, as good as never before. But we're always humble and feet on ground and are always well prepared if something happens on the world. So I hope this is what we can continue.

Thank you much for listening and hope to see you soon. Thank you very much.

Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

Thank you very much.

Ladies and gentlemen, welcome to the conference call on the financial results of the first half of the business year 2025-2026. I'm Sergen, the Chorus Call operator. [Operator Instructions] The conference is being recorded. [Operator Instructions] The conference must not be recorded for publication or broadcast.

At this time, it's my pleasure to hand over to Attila Dogudan, CEO. Please go ahead.

Thank you very much, ladies and gentlemen, good afternoon, and good morning to you. This is Attila Dogudan. Our team today is Bettina, Johannes, Attila Jr. and myself. We're very happy to share our half year results, and we'll be then ready for the Q&A.

We had the best and strongest half year results ever in the company's history, and hopefully, therefore, have met all your expectations. As you have seen, revenues have increased by 9% to EUR 1,236.80 million in revenues. EBITDA is EUR 149.7 million, which is an increase of 24%. EBIT is EUR 106.7 million, which is an increase of 28%. And the net result is EUR 53.5 million, which is an increase of 21%. And I think even more important for us are the margins as we have promised to increase them step by step. EBITDA has increased from 10.6% to 12.1% and EBIT from 7.4% to 8.6%, net results from 3.9% to 4.3%.

So we've improved in all divisions and markets which we're proud of. We, therefore, believe that the team did a great job, and we're definitely going in the right direction. As you know, our clear goal was to improve margins, digest the high growth rate of the last year, create a financially healthy setup for solid growth in the upcoming years. We have reached a very good level of financial stability. And what we're working on is to get now the right people, as I already mentioned a few times and educate them for the next step of growth.

You all know this only works if we can manage with the right people and the level of quality, which is expected at the same time of different locations only works if we put this kind of focus on education. So once again, this is the reason why we put this on our headlines on the corporate news, hiring the best talent. So when we say we're going to get 2,000 people, it doesn't mean we're going to get for the same business, 2,000 people. It means we're going to prepare for the next step from next year on.

So this year will not affect any cost of these people and give them the right education in our own DO & CO academy because the portfolio of activities DO & CO has no one else has. So it's a business case on its own and is unique. So therefore, we can get people, but we need to train them then to deploy, so to say, on various locations at the same time. So I think you heard this a few times, but we think it's very important to say it again because this is the driver of the next development and the next growth, so to say.

Before Johannes will go through the numbers, then after my presentation, we're going to go now, let's say, to Page 2. So you see on Page 2 of the presentation, Airline Catering, EUR 981 million, 11% plus with an EBITDA of plus 26% and EBIT of plus 31%. Event Catering only 1% [Audio Gap]. And the Restaurants and Lounges with plus 11% and 30% and even 46% in EBIT, I think, are very promising numbers.

Highlights, the EUR 1.5 billion in sales first time, 8.6% EBIT in kind of first time and 4.3% net result, we really like. Free cash flow, EUR 107.8 million means 40% increase in comparison to last year and net debt-to-EBITDA ratio of 0.4 makes us honestly very happy because we believe that we have to be strong for the future in terms of financial power and no [ wrong ] debt, so to say, to be able then to go for the next level of growth. Equity ratio, 38% makes, I guess, everyone happy too.

If you look on the 3 divisions, nothing special than what is promised and estimated basically in Airline Catering, the construction has started in Istanbul for the biggest kitchen of the world. I think it's really the biggest kitchen of the world. And in any case, the most sophisticated and modern one, which will be very efficient I think once it's operating. We won the majority of tenders we went in and expanding our customer base. Event Catering, same for all areas, which you already know.

And I think the really good news is in the Restaurant, Lounge & Hotel, which is a clearly B2C business where we have improved our margin from 7.7% to 10%. So I think we do well. And with the mix of the right education and the financial strength means innovation, quality and people will drive this company to a next level as we have estimated and all the time shared with you.

Coming back in detail to Airline Catering, the EUR 981 million, I already mentioned, I think we can pass this slide to go to Turkiye. So Turkiye is doing very well. Turkish Airlines is very much focusing on product. They're doing, I think, a very good job in terms of how they sell the tickets and how it works. We got -- again, this is one of the airlines really taking super care of the clients, of passengers in lounges and on board, I would say, almost like no one else. It's all about Turkish hospitality and driving this as a trigger to get clients on board of Turkish Airlines. And I think it works quite well. Additionally, I think in Turkiye, we have additional third-party business, which is developing in a good way as well.

IG Group London, Heathrow and Madrid, very proud of this kind of close relationship and partnership. I think we have a very good operational performance in Heathrow and in Madrid Barajas. We have fresh menus everywhere. So what we see is basically that on both locations, these are key European hubs, which so far, knock on wood, work very well.

Delta. Stabilized. One of the reasons why I'm proving is that the start-up cost of last year, which was a headache for us and cost us a lot of money is no more in place. So this is a stabilized account. And step by step, I think we get better and better.

JetBlue, one of the few airlines focusing on quality on the American continent, so to say, we are proud of this partnership as well. And additionally, we see some clients which we got like Aer Lingus or WestJet in various locations.

New contracts, last page. So you see, again, a few airlines from Air Canada and All Nippon Airways, Cathay, Etihad, so you name them. This is basically all -- these are all these airlines who take care of passenger satisfaction, take care of on board quality. And I think, hopefully, we are not only a good partner for now and for the future.

Event Catering, as mentioned, the only 1% increase is because we have no chance to replace the European Football Championship last year. We have this problem every 4 years when we do this kind of events, which are one-off. So if this was in place, it would be a different growth obviously.

Again, here, no surprises. Formula 1, as everyone knows, doing very well, strong demand on all locations. We just finished last weekend, Brazil. Next weekend is Las Vegas, which is one of the biggest of the whole tour and not only of the whole tour, I think it's one of the biggest sport events at all. So we see strong demand this year for the remaining races than in Qatar and Abu Dhabi, but we already see a very good demand for next year. As you know, the teams will -- from 10 to 11 teams will be increased. So by nature, we get more guests, so to say. And additionally, the interest in Formula 1 has increased significantly and still increasing all the time. I think is today the sport, which attracts, I guess, most of people of the world.

Allianz Arena in Germany, including Bayern Munich, home city, so to say, home stadium, we're very proud to be there. It's a very good relationship, nothing new to report. The same is Olympiapark, a lot of concert, Dua Lipa and Robbie Williams and you name it. And the same is on in the SAP Garden Munich, a new arena, as you know, where you have a split between basketball and Ice hockey, which gives us the opportunity to have a very good allocation -- utilization throughout the week with the 2 segments.

Tennis, we did last year a little bit FIFA World Cup. The other open as we have, I think, is regular business, as you know.

In terms of Restaurants, very good news if you do the comparison with the old years. Now I think we learned how to approach these kind of clients and we will grow in this division, as mentioned, once we have settled the right people, the right education. It's a DNA where we come from. This is basically where the driver of the quality in both -- in the other divisions are impacted and affected. So that's the reason why we take very much care of this.

Demel Pastry is doing super well. Kaiserschmarrn, the Austrian Pancake is already a kind of signature product. The restaurants in Vienna and Munich work well. So it's nothing special to report.

Hotels. Do & Co in Vienna and the hotel in Munich. The one in Munich already got a Michelin Key and was awarded to, I think, the best boutique hotel in Germany. So it's only 30 rooms and the other one is 43 rooms. But I think it -- first of all, it's making money on its own. And secondly, I think for the brand awareness of the group makes really, really sense.

Airport gastronomy, on one hand, we serve clients who focus on quality and serve something. On the other hand, we have an airport gastronomy where these airlines who do not buy have clients and passengers who at least consume at the airport, which gives us another driver of the whole, let's say, business case.

Finally, in a nutshell, so I would say we are happy with the development of the company, although we know that some of you always expect more and more growth rate. But we shared already with you a few times openly that we will need this year to prepare ourselves for the next level in order to take the strong growth in the following years.

We have to think about delivering the expectation of our clients to keep our margin, to increase our margin. I think it's the right step. And it was openly communicated. I hope you agree with the strategy, and I can promise you that our, let's say, macro goals, heading a double-digit EBIT in the next 2, 3 years and targeting EUR 3 billion of revenues has not changed. Some FX effects were in this half year, which were not in our favor, but Johannes will then come to this in a second. So that's, in a nutshell, what I could wanted to report to you. Thank you for listening.

Johannes will now take over, and then we are happy for the Q&A. Thank you very much.

Good morning, afternoon and evening. Thank you for joining us today. My name is Johannes Echeverria, and it's my pleasure to take you through our company's best half year results now.

I would like to begin with our detailed income statement on Page 27. Let us first consider the revenue which has increased by 9.3% and now exceeds EUR 1.2 billion for the first time at the half year mark. It's worth highlighting that we achieved this increase over the past 6 months despite a fixed headwinds, with the Turkish lira devaluating by 16% compared to 9% last year and the U.S. dollar devaluating by 7% compared to 0 last year.

Higher than most significant outcome is that our profit margins remain unaffected. In the first half year of '25-'26, we saw an improvement in our EBITDA margin which grew from 10.6% to 12.1%, and our EBIT margin, which increased from 7.4% to 8.6%. We are pleased to announce that our net results has also improved from 3.9% to 4.3%.

A big thank you goes to our more than 16,500 employees worldwide whose daily commitment is the key to Do & Co's success. So all in all, we are pleased that our philosophy and company culture are reflected on our financial performance with consistent bottom line improvements and an increasingly robust balance sheet.

If we move on to the next slide, 28, we can see the development of our results quarter by quarter. I would like to draw your attention to the Q2 figures. As you can see, we have succeeded in increasing our EBIT margin from 8.1% last year to 8.7% this year and another step as well from Q1 to Q2. If you look at the margins at the right, it is obvious that our EBIT margin has consistently been over 8% since the second quarter of last year, which demonstrates once again our margins have increased sustainable over the last months.

Now let's review the results for the first 6 months in our divisions on Page 29. In Airline Catering, we have seen a significant improvement in the EBIT margin rising from 7.0% to 8.3% in the first half of the year. This was driven by start-up costs of JFK last year, as mentioned in our last call as well as improvements in all other units worldwide. In Q2, our EBIT margin increased from 8.2% to 8.4% versus the last quarter.

In Event Catering, revenue increased by only 1.3% as we experienced a substantial one-off effect last year in the form of the Euro '24 tournament in Germany. For this reason, we would like to present our growth for the first half of the year without this effect, which is plus 22.3% versus the reported 1.3%. Nevertheless, we were able to improve our margin in that division from 9.1% to 9.7% for the first half year.

The margin improvement from 7.7% to 10% in our last division, Restaurants, Lounges & Hotels once again demonstrates the great potential in this division. Demel, as well as our lounges, Henry shops, restaurants and hotels must be mentioned here. Looking again at the absolute numbers in the boxes on the right side, we see that the revenue increased by EUR 9.1 million, of which EUR 2.8 million ended up in our EBIT.

Let's move on to the balance sheet on Page 30. Firstly, I would like to highlight the overall increase in our balance sheet to 4.4%, almost EUR 1.3 billion. This is the result of an increase in trade receivables of EUR 37.9 million and an increase in cash of EUR 34.1 million to EUR 208.3 million. We will discuss our cash flow for the first half of the year shortly. In contrast, property, plant and equipment decreased by EUR 17 million, mainly due to FX differences from U.S. assets.

Turning to Slide 31. I would first like to draw your attention to the equity ratio of 38.3%, which is the result of an increase in retained earnings and bond controlling interest. The reduction in other financial liabilities of minus EUR 17.7 million is mainly driven by a decrease in leasabilities, mostly in the U.S. of EUR 9 million and the repayment of loans of EUR 8 million. The left-hand box displays the outstanding loans as of September '25. The total remaining amount is EUR 68 million, of this, EUR 2.1 million and EUR 55.8 million are to be paid back this year.

Please find our strong cash flow statement on Page 32. Firstly, I would like to highlight that gross cash flow has increased by 22.5% compared to last year, amounting to EUR 155 million. The company's free cash flow stands at EUR 107.8 million after a 6-month period. If we review last year's results, we will see that we had EUR 125 million for 12 months. The cash flow from investing dividends has been seen a decrease of EUR 13.5 million. Please be advised that our capital expenditure for the first 6 months was EUR 29.2 million.

As illustrated on the left-hand side, the figures in comparison to EUR 36.5 million last year. It is anticipated that our CapEx will be higher in the second half of the business year. Our guidance for that remains the same between 3% and 4% of our revenue.

I would like to close the presentation on Page 33, where you will find our new net debt-to-EBITDA slide. We would like to demonstrate our progress over the last few years, beginning with 2021, period that was impacted by the pandemic, resulting in an 8.2%. Further improvements can be seen down to 3.3%, 1.9%, 1.1%, below 1 and 0.4% now.

I would like to thank for your attention. I will now hand over to Mr. Dogudan, who will be happy to answer your questions afterwards.

Okay. Thank you very much. Please go ahead.

[Operator Instructions] The first question coming from Julien Richer from Kepler.

I have 3 questions, if I may. The first one, we have been facing mixed comments about the U.S. consumer environment recently with record jet cuts, but at the same time, some decent consumer figures based on credit card data and the like. So have you noticed any areas of weakness in your 2 main divisions recently, whether it is in the U.S. or Europe, if you can talk about it? That's the first one.

The second one in terms of new contract contribution, are you still in the 40%, 45% of revenue organic growth revenue coming from new contract contribution? And do you still expect this level of contribution in full year '25-'26?

And last one, in terms of EBIT margin evolution, do you expect additional H2 EBIT margin pressure because -- so you are above the 8.5%. And if I look to the figures you just discussed in H1 for the Airlines Catering activity only, the increase in revenue and EBIT implies something like a 20% EBIT margin, the marginal EBIT margin was close to 20%. So is there any reason for deceleration in margin improvement in the second half of the year.

So thank you very much for the question, Julien. So let me start maybe on the U.S. side. We, at least, so far, don't see any changes on, let's say, on the attitude of, behavior of -- on the American market. And I would say we have 2 segments. The one segment is all international carriers. So they have to have their global product anyway, which is their product regardless where they fly to. So we don't see anything there at this stage.

And then you have the American carriers where money is always a big issue, as you know, so there is always a pressure, but this is part of the game, honestly, but we don't see any additional pressures than the one which we have all the time because everyone is asking us for more efficiency, obviously and getting especially on the invisible side of cost, which is the logistics side, something which reduces their cost.

But whatever, I think, happens so far, we don't expect any margin development. There might be some, let's say, nominated items someone could ask for, but it doesn't affect so far our margins. So this is the number one.

I think on the new contracts, I don't know, Johannes, if you can say something.

Yes. So thank you for the question, Julien. Last year, we mentioned that our shares 50-50. This year is slightly down because we had the ramp-up of Delta last year. So yes, you're right, it's between 30% and 40% coming from new contracts. And regarding your third question, it's true pressure on the EBIT margin, we do not expect that, to be honest. Q3 should be in line with Q2. And then you know that Q4 is our lowest amount. So our guidance on the EBIT margin stays the same like in our last call at 8.5%.

Julien, let me add something on the EBIT margin. And this is, I think, this is a great question because it's basically reflecting very much when we say we're going to get the right people, educate and train them. So when do we get a better margin? We only get a better margin if we are able to differentiate from the rest of the market. So does the premium product apply to everyone? No.

But those who like this, and this is a good chunk of our clientele. They only would go for the premium, so to say, if they had really visible, testable, realizable better products. So this is exactly why we are playing in the premium league. And the problem, so to say, is if the gap between us and the rest is not big enough, we would not get the premium. This is the reason why we have to invest in people, education, systems, procedures in a better way to have this innovational part, which is consistent throughout the network.

So this is the driver of the business case. So it's not like we are not putting this on a corporate news because we don't know what to say, it's simply significantly impacting and securing the future growth and to keep the margin and not to go under the pressure, almost everyone in the market is offering for cheaper. So we still get, I would say, the claim of the airline industry.

And the more we give them something which they differentiate, so their clients have a good voice and everyone has an NPS score. Everyone has customer satisfaction and they see them, and especially on the premium cabin that this makes a big difference so far to the pressure on the EBIT margin.

Very clear.

This is very much, by the way, valid for the airline which is completely different than the other 2 divisions. And the reason is because in big sport events or in big corporate events and at the same time, on the side of restaurant, lounges and these kinds of things. It's anyway a lot of B2C, so to say, where the margin of our clients are pretty high. So no one is going to go for a 10% discount and risk operations, right? So this is on the 2 divisions.

I think it's more safe on the airline. You're right. There's always the pressure but the answer is what we're trying to explain to you. I hope that's beneficial.

That is. But just as a quick follow-up, if you are talking about the new academy that you are launching, if you are talking about 2,000 people i.e., it's more than 10% of your total staff. Does it mean that we have to take that into account for the next 2 years, 2 to 3 years? And it will be more or less in line with the 4% increase in staff you posted in H1. So maybe 4%, 5%, 6% on a yearly basis. And so you are going to have that through 18 months, 2 years period.

Exactly. Completely right. We wanted to give the market the message. Hiring 2,000 people doesn't mean that we increase our cost. It means we expect business in the next years where we have indications, good indications that we'll get this. So that's the reason why I said in the very beginning, all the targets we have are in place and all, let's say, activities we have shared with you are in place.

So the FX, which was this half year or quarter a kind of disadvantage for us does not say that this company will not grow in the future. So the 2,000 people means, as you said, a couple of hundred millions of additional revenue. So 100% right, what you said.

The next question comes from Vladimira Urbankova from Erste Group Bank.

My first question will be still related regarding your targets. Earlier you said that you target growth on the top line of some 8% to 10%. Should we expect 8% because of the ForEx. What was the ForEx impact in the first half? And how do you see the situation developing going forward, especially with respect to the Big Dollar as a new element of that kind of ForEx pressure on the top line.

Then next in 3Q, we have seen this government shut down impact in the U.S.? Does it impact your 3Q results? Or what is your observation in this respect?

And then last but not least, again, U.S. market related. Do we have any new developments regarding your catering for the FIFA World Cup or when do you think you can update us on this?

Thank you, Vladimira. Let me start with your first question regarding the guidance for the top line. So it's still in line with what we told you so far. So between [ EUR 2.450 billion and EUR 2.5 billion ] depending on FX. So for FX, we still have the same assumptions like in our last call.

Regarding the FX impact for the first half year, let me explain to you the situation. So if you look to the U.S. market, our revenue in U.S. dollar increased by 15% for the first half year. In Europe, it's only 9%. So we are missing approximately 6 percentage points, which is EUR 15 million. In Turkiye, if you look to the lira revenue, it's up by 51%. In Europe, we see a 19% increase, which is more or less the organic growth in T rkiye. So if I only consider now the revenue in the U.S. that we lost the 6 percentage points, and if I add it up with our revenue in Airline Catering, our growth rate would be at 12.4% for the first half year, so that's more or less our organic growth rate for the first half year in Airline Catering.

Regarding Q3 shutdown, so you don't have to expect any reductions in revenue there. Yes, we might have some cancellations, especially in domestic flights, but that was kind of our normal business. So no big impact on that.

On the FIFA front really, still they just came back now and we are still talking to them for the guidance, as I mentioned, I think, last time, we don't expect too much of the FIFA World Cup, still did not decide anything, and it's very little time to go. So I think we shouldn't count on that. If there is something that it's low numbers, honestly, we are all ready for next year, very well booked for this period. So we don't expect too much.

The next question comes from Henry Wendisch from NuWays.

Congrats on the strong results. I just have 2 questions left. First one is regarding the segment, International Event Catering. We've seen that the EBIT figure was more or less flat despite a 10% decrease in sales due to the aforementioned effects, and I was wondering what -- so the underlying margin actually increased quite a lot, and I was wondering what was the main driver of this development. I have 2 hypothesis, maybe that -- the one is that the positive sales effect of the Euro '24 was actually at a relatively lower margin, now explaining the higher margin or it could be something different. So what is the development here? Or what am I missing?

And then the second question is, I would like to know we've seen overall on the group figures, a slight decline in material expenses. And I guess this is due to the higher start-up costs at JFK. And so they were still present.......

Henry, so, thank you much for your questions. So let me just give you an answer on the Event Catering side. Yes, you would see that you had a bad margin, but that's not basically the case. It's better now because we have at the big event, we have more guest than the year before. So we have a better economies of scale on every location. So this is especially driven by Formula 1, but it's the same with all the other sport events we did. So we had more people in Madrid at the tennis. We have more people at the golf. We had more people, and in one location, after [indiscernible] number of people, if it deploys by another 500, 1,000, you simply have a better margin. So this is because your infrastructure is already paid and like this.

So coming back to the Euro. Was the Euro the highest margin? Not. But was it a driver in terms of no margin? No, it's not true. So the key answer is that we have, at the same location, more people and better through that better profitability.

And regarding the cost structure, let me start with the numbers first. So material costs at first half year went down from 42.5% to 40.3%. Personnel costs increased slightly from 33.7% to 34.2% and operating expenses at 14.2% compared to last year, the same amount. So yes, you're right, this reduction is mainly due to the start-up costs last year. Please bear in mind that agency staff costs are included in material costs as well as purchase services. So this is why start-up costs always increase this cost factor.

So if we switch from agency staff to fixed staff, we will also see a shift of towards personnel costs for material costs. You're right.

But in the underlying, so the food prices and all of that, you just pass that on more or less. We've talked about this quite a lot. So that is not the reason why sort of the ratio in terms of sales and percent of sales has declined.

No, that's not the reason. The main reason is agency staff and purchase services.

The next question comes from Marie-Therese Gruebner Cantor Fitzgerald Europe.

I had a few, and I would ask them one by one, if you don't mind. The first one pertains to the FIFA World Cup. I know there's a change of language on your side. And maybe you can elaborate what which has happened? Is it a question of you being so booked out that you really can't accommodate or maybe it was not that interesting from an economic standpoint, apart from the prestige. So maybe if you can add a bit more color on what has changed .

And then secondly, if you could give us some guidance on the minorities, which are always a topic for the full year, if you can give us some guidance of where do you see that?

And then last but not least, my question regards the minorities. And the reason for it is the -- again, the minorities [indiscernible]. Is it okay-ish to ask why you don't buy out those minorities and take completely control of the Turkish business? Is this something impossible at this point or something you've thought about?

Let me start with the FIFA World Cup. So the language we have is basically the language we get from FIFA, so to say. I think we did last year or this year, a very good pre Club World Cup in Miami and then in New York, the problem in U.S. with the stadia is that the stadia have their contract with the incumbent caterer on-site, on location. And I think FIFA underestimated how to get rid of them, and it's not so easy like it wasn't -- or it is with UEFA or EURO and so on.

Basically, you have always a stadium. And we have 16 stadia with different incumbent caterers. And this was a problem why it did not come up in the same way like European championship, which no one knew. So what we have been offered now is doing the VVIP and VIP areas, just have to explain the terminology. This is -- this would be the top segment of every match, but just for a couple of hundred people. And if you go for a couple of hundred people in 16 locations, if you don't have the critical mass, it doesn't make sense commercially. So if we would not get more than it doesn't make sense.

So it's not like that we are completely out. But I think in terms of effort you put in and you do, let's say, only the top, top notch, then you still need the best people which you have, otherwise, you would not deliver. But in terms of revenue -- so if you add another 5,000 people, you would have the same management structure in the stadium.

I don't know if this is clear to understand. So we have -- we do not get as it looks like the critical mass of number per match. And if this is not the case, you cannot say you have 100 for matches and you get a, I don't know, 500 or 1,000, then you have 100,000, the cost structure will be completely different than you have 15,000 or 10,000 per match. And this is not the case, and it does not look that they can get rid of this setup in U.S. So this is the explanation of the language, and it's going up and down all the time.

We had the last call just a couple of days ago. So I don't -- but I don't expect other experience that we're going to get the same like we had in Europe.

So maybe, Johannes, the next one.

Yes. Regarding minorities, let me start with our last year's number, which was EUR 23.4 million, including IAS 29. So for this year, our forecast is EUR 30 million to EUR 35 million. Keep in mind that the Q4 is always lower because the hyperinflation effect is the biggest one. So our guidance is between EUR 30 million and EUR 35 million for this year.

I think in terms of relationship, and you know that anyway for a long time, we have a very close relationship with Turkish Airline. So this is more than a joint venture. So it's not just a financial joint venture. It's very much emotional joint venture. And I think you can expect even more activities in other areas, in other regions where Turkish Airlines might be strong, but there is no idea that someone buys the other share or something like this. So I think it stays like it is.

We are happy with this kind of setup. I hope Turkish Airlines is happy with this. And the more we can do together makes sense as the airline is heavily growing. And on the other side, the more we can make joint businesses with other areas, which reduce the end of the day, the cost of Turkish Airlines makes sense for them and makes sense for us in increasing our partnership.

If I may ask a follow-up, an additional one. It's regarding the interest income line and how sustainable it is for you to invest your cash balances at these rates? And what should we expect for the full year and maybe next year, if you can give us some color.

Yes. Of course, the highest position within the financial result, positive one is the income, which you mentioned, which is mainly due to the Turkish lira exposure with a high income. So I think you cannot expect or you do not have to expect any big changes until the end of the year. So that's still in line with our expectations so far and also for the whole entire business.

[Operator Instructions] There are no more questions at this time. I would now like to turn the conference back over to Attila Dogudan for any closing remarks.

So thank you very much for your time, and I hope we could clarify the open issue. So as I said, I think we're at the right path. And we are not have any doubt that exactly this way is the right one and hope to see you soon, latest at the Q3 results. Thank you very much for listening. Have a good evening. Have a good day. Thank you very much.

Thank you.

Ladies and gentlemen, the conference is now over. Thank you for choosing Chorus Call, and thank you for participating in the conference. You may now disconnect your lines. Goodbye.

Ladies and gentlemen, welcome to the conference call on the results of the first quarter of the business year 2025-2026. I'm Sergen, the Chorus Call operator. [Operator Instructions] The conference is being recorded. [Operator Instructions] The conference must not be recorded for publication or broadcast.

At this time, it's my pleasure to hand over to Attila Dogudan, CEO. Please go ahead.

Thank you very much. Good afternoon, ladies and gentlemen, in Europe. Good morning to the U.S. Welcome to our Q1 results. Our team today is twice Johannes, Attila Dogudan and Bettina. And in general, I think no more to say than that we had a very good Q1 and believe that we have hopefully met all your expectations. Revenues increased by 11% and more important, profits increased significantly higher. We've improved in all divisions and markets, which we are proud of. The team, I think, did a great job. And I think we do the right things and go into the right direction.

We have already mentioned a few times that we have clear goals for this business year, which was smart double digit growth, I think, which we are completely in line with. One of our clear goals is to improve our margins step by step in the next couple of years, and I think we did another step now. And we have to do this year some homework to prepare ourselves for the next step of growth means focus on people, education, product innovation, efficiency internal processes and do organizational changes to go to the next level, which was always, as you know, the EUR 3 billion within the two to three years' time, which we always said. And I think the goal is obviously to be in the right shape to be able to digest and manage these signs of business on a global scale and at the same time, further improve the margins.

Overall, the team is in a very good mood. The business case is great and unique. We see good demand and incredible market opportunities in all divisions, as you can see in Q1. And I think it's very important to say and it makes us safe, secure and confident that we are financially very healthy now as one of the few ones in this industry, I would say, means that DO & CO is not only far more resistant in bad times, whatever comes, it means that we can attack the market at the right time while maybe other competitors might have not the opportunities at that time as we could have.

We are now going to a next level. Let's go quickly through the presentation. So I'll give you a quick update on the divisions. As you already know, the revenues of EUR 611 million means an increase of 11%. EBITDA EUR 73.2 million means 33% EBIT EUR 52.5 million means an increase of 43% and net result is 26.8%, 44% increase. I think the most important part, as we always mentioned, is our long-term business case and profitability. EBITDA margin has increased to 12% EBIT margin from 6.6% to 8.6% and net result from EUR 3.4% to 4.4%. This is all because the business case is a unique business case. It would not work with one of the divisions. It's only working because the combination of these three divisions.

You see on the next page, the three segments, Airline Catering, EUR 467 million, event, EUR 100 million and EUR 44 million on the restaurant, lounge and hotel. We always promised you that the restaurant, lounge and hotel will improve, and I think we are there now. So all the other divisions are in line where we are and how we deliver, so to say, in the single area. But as I said earlier, it's always a mix of all of them.

If you look to the highlights, the free cash flow of EUR 23 million in comparison to minus EUR 5.8 million in last year is, I think, great. The net debt-to-EBITDA ratio, we might be a little bit old-fashioned of the 0.5, we like very much as much as the equity ratio of 37.8%, which is a great improvement in comparison to last year, where it was 27.9%.

All the divisions, strong demand. We -- I think we are the right partner for all the quality-focused global network carriers. And we see this kind of relationship is unique because it's very difficult to deliver all the setup what we have in terms of R&D, in terms of product, in terms of cabin routine and how to serve, what to serve, when to serve and these kind of things.

We learn in the restaurants and we learn in the event catering, as you see. So we do the most prestigious event in terms of sport. And at the same time, we see that the starting point and the learning curve always starts in the restaurant business and the lounges and hotel where we have an EBIT margin of 10.0%, meaning it's B2C, and this is definitely an area we will go ahead for the next level, so to say. All the ingredients are people, quality and innovation without any compromise. It's all about customer satisfaction and guest experience. This is where we start from. We are not starting at the logistics side. We are starting on the experience side and then end up what is right and wrong.

If you go to the divisions, we mentioned already the numbers. I think it's quite satisfying, impressive if we go now to quickly to the countries. Turkish Airlines and the other clients, but it's incredible what kind of hospitality approach this kind of airline, especially Turkish Airlines has. It's all about satisfaction of the client. It's all about innovation. We won again twice the SKYTRAX Awards for the best airline in Europe and for the best business class catering worldwide.

We're talking significant volumes of 500-plus flights a day. which means 250,000 to 300,000 meals, which are produced every day with fresh ingredients as much as possible from the local market with a clear proposition with a clear product and market position for Turkish Airlines. But at the same time, we are very strong in the third-party business. So the growth in the third-party business was really, really good. And as you know, the big kitchen, which will be, I think, the biggest in Europe is one of the biggest in the world, is going to hopefully go in operation end of '27 or beginning of '28.

Next area is the IAG Group, so to say, British Airways and Iberia. We are very proud of the close relationship and partnership. We have very good operational performance in both locations, London Heathrow and Madrid Barajas. So I think is again, it's in all cabins, very positive customer feedback. Iberia won awards and is a kind of Ambassador of Spanish Gastronomy. And on the BA side, I think it's getting always better and better. So I think we are everywhere kind of tailor-made concept for an airline, which we do not replicate somewhere else. So the only thing which is the same is the focus on quality fresh ingredients and the focus on detail.

Delta and another strategic partner on the U.S. market as much as JetBlue on the next page, you will see. So we have managed now to do our start-up or to solve our start-up problems in New York. So we have a smooth operation after 1 year now. And as you know, is one of the biggest hubs of Delta in the world. So we have more than 220 flights a day. So this is now a significant place where day by day, we are getting better, and we are no more bleeding as we did a year ago. So I think that's good news.

The same is on the JetBlue side. For us, is another strategic partner with a contract extension for another two years on the JFK location, which is one of the main hubs as well. We do long haul and short haul up to 180 flights. And if you count this and if you go -- if you land in JFK, you see a lot of the DO & CO trucks, which shows you basically the market share we have there.

Other locations, Miami, Chicago, Detroit, we get here and there more and more clients, which then end up in this mix where you improve your margin as your, let's say, base cost stays the same and then you go on incremental. And if you do a great product, then you make someone happy and get them in a different location.

You see on the further pages, new contracts for the rest of the world, Air Canada, All Nippon, Cathay Pacific, Etihad Airways, Oman, Scoot and Vietnam Airlines, I think it's very important. that you see the portfolio, which is super rich and that makes really -- that makes us very proud that it's not focused in an area. So I think we are a good partner for all of these clients coming from different regions regardless they came from Asia, Middle East, U.S. or European carriers.

Event catering, a very good season start with Formula 1. All races have a great demand. Champions League final was great at Allianz Arena, which is our home base in Munich, Bayern Munich. And we did first time some jobs in Miami and New York for the FIFA World Cup only in the VIP area. I think we delivered in a very proper way, and we'll see what's going to happen with the tender, which is still not done, not finished. So we're in a tender process. We'll see what's going to happen. So -- and then we decide for Formula 1.

On the next page. So it's all about, again, customer experience. So we have to deliver something people talk about. And I think we are proud -- we are a very proud partner of Formula 1. And for us, it's an incredible platform to deliver something, hopefully, others cannot deliver. So it's an ongoing push on innovation and getting things done others cannot do in terms of events, and this is one of the triggers where you learn a lot and go to the next area.

Allianz Arena, you know it anyway. This is kind of one of the best stadiums in the world, I would say, not only in Europe, and getting more and more Olympic Park in terms of concept and public events, so to say. And the same is with SAP Garden, which is half basketball and half Eishockey Red Bull München on one hand and Red Bull on the other side. Tennis is the usual game. FIFA, I mentioned already and [ Rotos Platos ] is one of the biggest open airs in Europe, which we do for like since 1992, I guess.

Revenue in terms of restaurant business is EUR 44 million, which is an increase of 8%. Obviously, in this division, you cannot do 30% if you don't open more restaurants or shops or whatever, which we will do. But in a, let's say, more reasonable size, the profitability has increased in EBITDA numbers in 35% and 57%. So it shows that our key DNA where we come from really makes sense. And I think this is one of the triggers why we do good and better in event catering and especially in airline.

So I would say majority of products, food recipes and meals, which we serve all around the world come from basically come -- always come from the restaurant business and from the event business. If you just imagine that we go every two weeks and sometimes every week in a different country with Formula 1 or big sport events, you have always to adapt to the kind of, let's say, demographic and people eat obviously different in U.S. or slightly different in U.S. than in Budapest or we go to China, we go to whatever country. So you learn a lot of these authentic kitchens in these regions and then bring this know-how to the other Do&CO network, but with -- it's a know-how of people who do authentic their own food and they do their own hospitality, which we then can mingle and mix and may create new products, others, I think, have simply not the access like we have.

They may since funny enough, since Corona, an incredible story with the Kaiserschmarrn, which is the Austrian pancake, it's still attracting incredible number of people queuing and getting this kind of affordable branded luxury. And additionally, obviously, we do far better in our sales, not only in the coffee shop, we do better with all these merchandise products and all the chocolates and any kind of candy suites, whatever you call it. So then the brand goes up and out. The restaurants are doing well in all locations. The hotels are doing fine. We got from Michelin, Michelin Key. We are one of the best kind of newcomers hotels in Germany with our boutique hotel. Is this something which is changing our balance sheet at the end? No, but it changes or improves our DNA, which then is scaled in all the other divisions to achieve all these results.

Airport gastronomy on one hand in Vienna, I think we're going to go step by step now to other countries as well. We were simply not able after corona to digest all of this, and now we can go step by step to improve -- not improve, to increase this business segment.

In lounges, you obviously know Turkish Airlines lounge one of the biggest and best in the world. So we're going to have another relaunch now of the product together with Turkish Airlines, and we are very proud that there are good airlines like Turkish and like sometimes Middle Eastern airlines, which are really focusing on an add value for passengers. And I think it really makes sense to work in such an environment.

So in a nutshell, this was, let's say, the presentation. I hope that these numbers and the business development make all of you very confident that we are at the right path and we do the right things in order to prepare ourselves for the next round of the high growth, so to say. So we focus on these ingredients this year to get the right people in, to put all efforts in education, attitude, company culture. These are the intangible assets which make us different. And innovation is something which I think we are really strong in comparison to all the others. I think we have, on the other hand, and we've touched already some efficiency improvements.

This is one of the reasons why we had more profitability increase than revenue increase. We even did not start on a bigger scale on robots. So this is one of the next step on the logistics side, which does not affect any guest experience. So in total, I think we'll end up in a competitive advantage at all these markets and areas, and that's the reason why we are confident to get better margins for the future.

So flexibility will be another crucial tool for the future. Markets will change quickly. We are fully aware and we are thinking in 3, 5 and 10 years ahead. So what can change? How can it change? What is what we have to be prepared. And I think this really makes sense.

DO & CO is so far, at least so far in a lucky position that demand is higher than what we can deliver, which is good and the part of the luxury -- the secret of a luxury business desire always is good for margin, so to say. So if we stay unique with our proposition and question daily ourselves in our business case, we will be always ready for quick adaptions at the market.

So overall, we are facing a positive outlook. So we have very good reasons to expect a very good business here. So far in Q2, we do not see any changes and the prebookings are fine. I hope this update and our short midterm -- short and midterm strategy makes sense for you. And I would like to say thank you for listening.

I will hand over now to Attila Jr., both Johannes and Bettina. Many thanks for listening.

Thank you. Good afternoon and good morning also from my side. I would like to start with our income statement on Slide #27. Mr. Dogudan has already highlighted the margin development compared to Q1 last year. Part of the increase comes from our start-up costs in JFK, plus we also made additional improvements in all our units and in all our divisions. Once again, I would like to point out as well that these figures are the result of the unique interaction between our three divisions within the group.

The other income statement items are in line with our expectations. Depreciation is up by 11.6%, but in absolute -- and sorry, the financial result is slightly affected by FX, but in absolute numbers, only an impact of EUR 1.7 million, financing income higher than financing expenses by EUR 1.3 million and the tax ratio of 24.2% is consistent with the previous full fiscal year when it was over 24%. Guidance for this full year is between 24% and 26% for the tax ratio.

On the next slide, #28, we see the financial development of our group over the last few quarters. As you can see on that slide, we continued our successful path of sustainable margin development. After achieving an EBIT margin of only 6.6% last year in Q1, we increased it to 8.1%, 8.7% and 8.4%. This year in Q1, it stands at 8.6%, slightly above Q4 of the previous year, which is a very encouraging progress.

I would like to direct your attention now to Page 29, where we'll be focusing on the results of our divisions. We are pleased to report that all areas have performed strongly in the first quarter. The division Airline Catering is benefiting from a strong U.S. business and strong demand from new customers, especially in Turkey as well as other locations. This leads to a top line growth of EUR 11.3 million, amounting to EUR 47.6 million. In Airline Catering, we see a significant improvement in the EBIT margin from 6% to 8.2%. As already mentioned, I would like to point out that last year was impacted by start-up costs in JFK.

For International Event Catering, Q1 closed with a strong revenue growth of 10.2%. Last year, in the first quarter, we received a portion of the revenue from the Euro '24 in Germany, which kicked off in mid-June. This reduction in Q1 this year was compensated by Formula 1 with a strong start of the season with one additional race, a successful ATP Tennis tournament in Madrid, which attracted more visitors than last year. Next, the operation at SAP Garden in Munich was conducted in comparison to last year. And in June '25, we had the privilege of hosting the Champions League final at the Allianz Arena in Munich. So all in all, the EBIT margin in that division increased from 9.4% to 9.8%.

In our last division, which includes restaurants, lounges, hotels, there has been a significant margin improvement from 6.9% to 10%, highlighting the substantial potential within this division. All areas of this division have shown improvements in profitability, which is a result of focus on efficiency and sustainable growth. If you refer to the absolute numbers in the boxes, you will see that there was a revenue increase of plus EUR 3.3 million, of which EUR 1.6 million ended up in our EBIT.

Moving on to the balance sheet on Page #30. Total assets decreased by 1.7%, mainly from PPE with a slight offset from higher trade receivables. Property, plant and equipment decreased by EUR 27 million. This is mainly due to foreign currency effects resulting from the weak dollar in Viva. Just please note that we have a very high fixed assets in the U.S. Trade receivables increase is driven by the business growth.

Moving to the liabilities on Page #31. The equity ratio increased by 2 percentage points to 37.8%. The reduction in other financial liabilities of EUR 18.2 million is an effect of FX translation losses, approximately EUR 11.9 million, EUR 2.1 million repayment of loans and EUR 11.7 million repayment of lease liabilities. At the bottom on the left, you can see our outstanding loans amounting to EUR 74 million, which will be repaid now in the coming months.

The cash flow statement on Page 32 also demonstrates a clear improvement compared to last year. The cash flow from operating activities increased by EUR 19.8 million due to higher gross cash flow and changes in working capital. Our free cash flow stands at EUR 23 million. You can see again a repayment of financial liabilities of EUR 10.1 million. The overall cash is at EUR 170.9 million, which is also a very high level. Total cash decreased by EUR 83.8 million compared to last year, especially driven by the bullet loan repayments of approximately EUR 164 million last year.

Finally, on Page #33, the new net debt-to-EBITDA ratio decreased to 0.5. I would like to highlight here the reduction of our net debt to EUR 151.4 million compared to EUR 232.6 million last year and the increase in EBITDA from EUR 214 million to EUR 280.4 million.

Thank you for your attention. Now I would like to hand over and to start with the Q&A session. Thank you.

[Operator Instructions] The first question coming from the line from Vladimira Urbankova from Erste Group Bank.

Of course, after such an excellent quarter, I would like to know if you are going maybe to raise your guidance or stick to it for the fiscal year '25, '26 in terms of revenues, revenue growth and EBIT margin? And also, if -- is there any change or what are the current midterm targets, both in terms of revenues and profitability margins by segment?

Then next area would be the FX. Of course, we have seen in the past, Turkish lira, we have got used to it. Maybe now U.S. dollar is another element. So what were the effects of ForEx effects in first quarter on your revenues and financial results? And if you have any crystal ball to see how the situation might look like for this fiscal year. So this would be my question for the time being.

Okay. Thank you, Vladimira. Let me start with the first one. Regarding the guidance, our guidance for sales remain between 8% and 10% like last time. The target for the EBIT margin this year is 8.5%, which should be coming from efficiency gains step-by-step compared to last year, but also operational leverage.

And regarding FX, yes, you're right.

On sales, we were impacted by the 4% U.S. dollar devaluation, approximately EUR 6 million. Turkish lira was minus 12%, amounting to approximately EUR 20 million. But as you can see in our numbers, there was no impact on our margin. I think that's a very important information due to our natural hedging. The financial result was impacted by approximately EUR 3 million, as I mentioned before.

And with regard to the outlook, in our last call, we mentioned that we expect a 15% lira devaluation. Now, of course, we have to adjust this. But however, our guidance remains unchanged because we believe that we can compensate for this. And in dollars, to be honest, we do not expect -- we only expect minor changes. And same for the hyperinflation, we expect 30% to 35%. So that's what we expect at the moment. But as I mentioned, no change in the guidance and our target for the EBIT margin is still 8.5%.

And maybe some midterm targets.

Yes, of course. So regarding midterm targets, I think organic growth should also be between 8% and 10%. In the midterm, as Mr. Dogudan mentioned, EUR 3 billion in the next two to three years on top line is possible for sure. And regarding margins, as you can see also in our numbers, our target is sustainable margin growth, leading us to double-digit EBIT margin. And I think we are on the right way. And yes, let's continue this path.

[Operator Instructions] We have the next question coming from the line of Henry Wendisch from NuWays.

Thanks for the presentation. I have, I think, a bit more interest on the material cost ratio. Was this margin increase or the cost ratio decreased actually from 42% to 47% to 40.7% now in Q1. Is that solely due to the JFK ramp-up costs? Or is there anything else that you also were able to get better prices on, for example, material expenses such as ingredients? Or is there anything else that we might be missing?

Thank you, Henry, for your question. Yes, you're right. So that's mainly due to our ramp-up cost at JFK. So we significantly reduced our agency staff costs but not only in JFK, also across the organization.

So as we mentioned in our presentation, we are working on efficiency gains in all our stations. We're tracking our personnel costs on a daily basis, and that was also leading us to the significant decrease here as you are right, interest stuff is included in material costs, yes.

Great. So yes, we should not expect sort of further developments like this in the coming quarters because the base effect is gone then?

Yes, correct.

Great. And then, yes, maybe also going into a little bit more detail on the restaurant, lounge an hotel segment. I think the margin expansion was quite strong and the incremental margin, as you mentioned, was also very, very big coming, I think, mostly from stronger utilization rates. And you said already that you also plan to open up new restaurants, new hotels and whatsoever. But on the current status, I think your utilization rate, is there still room to grow based on the current setup that you have? Or -- and then also what does it mean for margins? So if we -- should we expect a further margin improvement there? Or is this sort of the cruising attitude of margins that we see in this segment?

Let me start. So we believe that we still have room, to be honest, for further margin improvement in that division, especially in retail. So you know that we had 0% EBIT margin two years ago. Now we increased it to 10% already. And as you have seen, out of EUR 3 million revenue increase, EUR 1.5 million was in our EBIT due to very low fixed costs. So yes, we still have room for further improvement here. We believe in that division. We see that's a great potential.

And yes, from my side, I would be happy to increase our business there because it's doing really well across all our units. It's not only one or two outlets, it's really across all our units in that division. So I think it's not the end of our level, to be honest. So there's further improvement for sure, possible.

Let me maybe add. I think this year, it's in line with these 8%, 10%. And I think next year, once we are ready to deploy in this area, then you can expect like 20% or something like 20%, 25%. This is what we believe is possible. Because especially the one is the retail business. The other one is any kind of food production, which where you sell then components to the market. This is something what we see, which really makes sense.

Well, that's giving a bit more color. That's very interesting. And then my last question for today, the debt repayment that you mentioned, the EUR 10 million, is that sort of according to your general debt repayment plan? Or is there anything that you sort of went ahead and repaid debt early? Or is this -- and where is it coming from? Is it the classical debt? I think the German word is schulden? Or was it also principal payments for leasing? And yes, maybe to give you a bit more color on your debt situation and going forward also, how far further you want to go down in debt? And what's sort of the optimal level of debt?

Yes, of course. So repayment of financial liabilities according to our cash flow statement was EUR 10.1 million. thereof EUR 2.1 million in Q1 was a loan repayment and the rest IFRS 16 lease abilities. And regarding the open loans, we included as well in our presentation. So by end of June '25, the remaining debt was EUR 74 million and thereof EUR 64 million are paid back this business year. So the remaining debt by the end of this business year is only EUR 10 million. That's our plan at the moment.

The next question comes from the line of Patrick Vermeulen from Ascot House Advisers.

I've got a question regarding the capital intensity. I mean you've got this ambition to grow your revenues by 8% to 10%. And my question was, how much do you need to invest for that year in, year out to achieve that growth? And at what level would you situate your sort of maintenance investments to keep the business performing as it is now? Just if you could give some color on that would be great.

Yes, of course. Thank you for the question. So CapEx guidance in the past was 3% especially last business year, I think we achieved EUR 68 million, which is -- which was 3%. For this year, our guidance in our last call was between 3% and 4%, slightly higher because we have to invest. We want to invest in our units, but not only in our units, also into innovation, people, education. So that's why the CapEx guidance for this year is slightly higher, between 3% and 4% in absolute numbers between EUR 75 million and EUR 95 million.

In Q1, CapEx was around EUR 16 million, maybe slightly below your expectations. Last year was quite high with EUR 22 million due to the Delta start-up with JFK. But for this year, you can expect higher numbers in Q3 and Q4, but the guidance for total year is still the same like in our last call, between 3% and 4%. That's, to be honest, what we need to invest into our units and to be able for further growth.

Okay. And is that -- when you talk about those -- that 3% to 4%, is that all going on to the balance sheet? Or does it include sort of investments, but which are being expensed like Software-as-a-Service and things like that?

So, that's only CapEx. So that's only related to the balance sheet. Maintenance is in our P&L. So that's not included in that number. You're right, yes.

[Operator Instructions] We will have a question coming from Christoph Greulich from Berenberg.

It's three from my side, please. First one is regarding the FIFA World Cup next year. Just wondering if you could give us an update what are the latest developments here? And if you could remind us of the scope of what you're tendering for what it could mean in terms of additional revenues and event catering.

The next one is a follow-up on the balance sheet. So obviously, the leverage has come down to a very comfortable and low level. Maybe if you could give us your latest thoughts about how you might plan to utilize this financial flexibility in terms of potential M&A or also increased shareholder returns.

And then lastly, on the tender pipeline in airline catering. In the press release this morning, you described it as flourishing. Maybe you could give us a bit more color on what exactly that means for you? What would be a realistic assumption of additional revenues that you might win this year? And is there anything that stands out size-wise in terms of the upcoming tenders?

So let me -- Christoph, thank you very much for the question. Let me give you just an update on the FIFA side. We had as a kind of trial for this World Club -- World Cup this year, just a month ago, we did Miami and New York. So we did Miami for seven, eight matches. And I think we did four, five for the finals in MetLife Stadium. So this was, I think, a good performance to show to the organizers how we could do it. The tender process is currently in place, and there is, I think, end of August or beginning of September is the next round. It's quite tight in time. But I can't tell you anything of size and these kind of things.

I would be careful in terms of what's going to come because it depends very much how much the VIP package on one hand and the other one is the commercial package can be combined or not. And it depends very much how the contract situation with the local stadium caterers is and how much it's allowed to bring in other business or other partners, so to say. So it could be anything, I don't know, from 10 million, EUR 20 million up to EUR 50 million, EUR 70 million, EUR 100 million. So it's like it's an open book. But I think for the next call, we'll know far more. But in any case, it does not reflect this business here. It's going to happen in June, July. So it's not '25, '26. So this is the only thing I can say to the FIFA because we don't know any -- we didn't get any better information than that they liked what we did.

So at least we have a business card there and everyone likes it. And FIFA, I think, likes it, and it depends on the local organizing committee, how it's going to work.

Maybe balance sheet-wise, Johannes, you can continue.

Yes. Yes. Regarding balance sheet, you're right, Christoph, of course. So thoughts about M&A, shareholder return, those are topics that we discuss internally on an ongoing basis. So we don't have anything to announce yet. But of course, we are thinking about how to use our strong free cash flow effectively, which would be slightly higher than last year. So that is an ongoing discussion. I think you know that our target was to strengthen our balance sheet in the last two years. That's what we did to grow sustainable our margins. That's what we're working as well on. And yes, regarding M&A, shareholder returns, I hope that we can tell you something more in our next calls.

And Christoph, from a tender pipeline perspective, we're basically -- as to my father's comments and Johannes' comments, we're seeing the same type of demand, the two, three, four flights across individual locations and broadening the collaboration with newer, but also existing customers.

We have a follow-up question from the line of Vladimira Urbankova from Erste Group Bank.

I would have really a follow-up question related to all this. So what are the current plans for expansion on the U.S. market first?

And secondly, is there also other territories, let's say, Asian markets or Latin America or something else on the agenda where you would like maybe to expand in coming years.

Yes, Vladimira, maybe let me say for the U.S. market, I mean, we see on the U.S. market definitely a great opportunity. So I think in the next three years, we're going to open another three, four units for sure and get our footprint in a better way as clients ask us to go to other locations. So the beauty of this business is that we're not going to go to one location and then wait until someone comes. So if we get kind of indication from potential clients, if you go there, then we will join you within the next two years. This is exactly what we need. And for that, we have a clear expansion plan for the next two, three years to at least have another three, four locations.

Combined this one with a central production unit where you can distribute food throughout the whole United States gives you a business case, which I think honestly is in this case, unbeatable. And I think this is the plan in terms of airline catering.

Additionally, as we have learned now how to make some money on the B2C business with the coffee shop, [ steamers ] and these kind of things, so we will try to go to the next step, which, as you know, took us some time until we are there. But now I think we know the recipe how to make it, and we'll do it. So I believe that the U.S. market in the next couple of three years, four years will definitely double in revenues.

[Operator Instructions] We have a question coming from the line of [ Jerome from Lido Partners ].

Good set of results. I have a question when it comes to the MotoGP that has been borrowed by the same owner of F1. Any idea when they will put the tender in place maybe to organize the same type of club as F1 as they are pretty happy of what you are doing. So just wondering on that front, how does it go?

I mean, as you know, MotoGP just was recently signed off that Liberty can get it and the new owners. First of all, I think we're the wrong party to ask. So are we willing to help to work in this environment? Definitely, we will do. So see what's going to happen now as a next step. I think there is some logic behind.

It will not be exactly the same like the Paddock Club, I'm pretty sure because the product of MotoGP is different than the one which is in the Paddock Club. But we'll do our best to perform in Formula 1 and to be a super partner for Liberty that they, I think, at least will think about us. And I hope that we'll have then the opportunity to do something. But I cannot give you like a guarantee today. It just happens.

We proceed with the next question, and we have a follow-up coming from Patrick Vermeulen from Ascot House Advisors.

I just -- just two questions. One is, can you give us a better idea of what is the -- what the M&A opportunity is and how that's evolved sort of in recent history? That's my first question.

My second question is in terms of new business opportunities, are you considering for example, doing the catering in the airport terminals themselves in other locations than just for Turkish Airlines or even for the restaurants that are in the airport. And secondly, there's also a lot of festivals happening all over the world, which have an increasingly VIP component. Is that something you've looked into that you would consider and so on. So maybe I'm sure there's other opportunities, but if you could talk to those two, that would be great.

Yes. Thank you for this question, Patrick. So -- I mean, the reason why we want to have a strong balance sheet is exactly what you said. So we're pretty sure you will get some opportunities whenever we don't know when it's going to come on M&A. And definitely, you have to be on the spot when something really makes sense. We don't want to buy business, which is low margin and which has no cultural impact, so to say, from the product they have because it's more headache to convert such a business than invest on our own.

In terms of airports, obviously, after these post-corona times, so to say, when it was very difficult for us and with all the business, not knowing what kind of business is going to come. Now the company is consolidated. Now we have the right approach for this year to invest in people and in all the infrastructure and all the setup I have mentioned in the presentation, definitely, we're going to go for airports. And the same is valid for festival. You're right.

So what we see, we have been recently in London and Hyde Park in a festival where -- I mean, you know better, I guess, where for weeks, you have events and big companies are buying compounds and chalets and whatever you call them. So I think there is super potential to grow this kind of business out of the existing units because it's basically full production and logistics comes from the existing back office or gourmet kitchen, you call it. And this is -- let's say, the rent is paid by the regular business of airline and then you start to go in these kind of regardless it's airport or it's retail or it's festival. Now we have, I think, the right setup to go exactly in these areas.

And I think we have industry-wide a super brand and all big event organizers in the world know that we can handle on different locations in a quick way, scaling up and down and not only this, giving them the right concept to sell the right tickets for the right experience.

So yes, all 3 questions are clear, yes, which is one of the drivers for the future to achieve EUR 3 billion. So you're not going to achieve EUR 3 billion just for organic growth.

The next question comes from the line of [ Youssef Lubokidi from Emerald ].

Ladies and gentlemen, there are no more questions at this time. I would now like to turn the conference back over to Mr. Attila Dogudan for any closing remarks.

Well, thank you very much for your time. Thank you very much for the Q&A and the questions. I hope that we can convince you once more that we are working hard as a team and all team members of the world, to be honestly, 16,000, 17,000 now going a direction to create a unique product, which is not easy to replicate. And we think about all these market changes.

I think about innovation. We question ourselves every day, are we doing the right things or not? And how can we react if something changes quickly, which you always have in these industries every five, seven, eight, nine years, whatever, all these up and downs. And we are preparing ourselves definitely for further significant growth, but with the right pace. And this year, if we end up with delivery we have promised and you see the margins, then I think we then do the right thing.

So thank you very much for your time. Hope to see you soon and always ready whenever we can do something for you. Thank you very much.

Ladies and gentlemen, the conference is now over. You may now disconnect your lines. Goodbye.

Ladies and gentlemen, welcome to DO & CO Investor Call for 2024-25 Fiscal Year. I'm Sergen, the Chorus Call operator. [Operator Instructions]. The conference must not be recorded for publication or podcast. At this time, it's my pleasure to hand over to Attila Dogudan, CEO. Please go ahead.

Thank you very much. Good afternoon, ladies and gentlemen, in Europe. Good morning to U.S. We appreciate very much that you all have joined us today for an update of the last business year as today is a good day for us, and hopefully, for you, too.

DO & CO has achieved the best ever business year in its history, and together with all our colleagues and teams around the world, we are very proud to be able to present these good results to you guys. At this stage, I have to say a big thank you to all my Board colleagues and all employees of the group worldwide and obviously, to you too, you stayed with us in challenging times, and hopefully, you will get another fruit of the good times and can enjoy DO & CO year-by-year as a sustainable long business case.

The growth and margin improvement we have achieved in all divisions show clearly that the DO & CO business case is unique and makes really sense. After a few difficult years, we have finally reached a level of financial stability, which I guess is one of the best in our industry and is a strong base for further growth and margin improvements.

The company is almost debt free in terms of bank loans, as you know, and super ready for the next steps of growth in all areas. You know DO & CO is all about people, innovation and best quality. We have passed first time. Let's go through the presentation, we have passed first time the threshold of EUR 2 billion of revenues exactly EUR 2.2981 billion, which is a step change in our market position. We are now definitely one of the key players in the league of the biggest companies in the airline hospitality industry worldwide and guest commercially, one of the healthiest.

In terms of product quality and brand portfolio, I guess, we're the leader of the industry. And please keep in mind that every single penny we produce is a kind of handmade effort. We have no machineries like other industries, therefore, a growth of 26% in sales, EBITDA of EUR 262 million, EBIT of EUR 183 million and a net result of EUR 92.4 million which is even a growth of 40% is very special for us and makes us really proud that we have reached all targets, which we communicated and we had for the last business year.

If we go to the next page, you see the breakdown of the division basically, EUR 1.8 billion in Airline Catering, Event Catering EUR 305 million and Restaurant, Lounges EUR 172 million. All the growth numbers you see there, I think, which is really good is that the profitability is in line and sometimes even over the growth, which shows that we can utilize the economies of scale in a good way.

On the next page, you see highlight, so to say, at the glance, free cash flow of EUR 125.2 million, net debt-to-EBITDA ratio of 0.6% and equity ratio of 37.6% is a strong improvement in comparison to the last year. All divisions have done well. The focus in Airline Catering on the premium side, looks like it's the right strategy, by covering the front with something others can hardly deliver and doing something in economy, which is still better than, than the rest of the industry, so to say, we won numerous tenders. We're going to come back in a minute to this.

Event Catering, and you know that we are doing big events, all sports events majorly around the world and the Restaurants, Lounges & Hotel with an improvement in margin is very nice too. We have already mentioned innovation quality people are the three pillars of our group.

Coming to Airline Catering, you see an EBITDA of EUR 200 million and EBIT of EUR 137 million shows exactly what I've mentioned before. Turkish Airlines going down to the big markets, Turkish Airline Turkiye is still best quality experience, many SKYTRAX awards, 500 flights plus a day, which is an incredible number. The new airport is working very well. We're doing between 200,000 and 300,000 meals a day, which is, I guess, one of the biggest kitchens in the world. I think it's very important to know that we produce almost everything in-house, so we don't buy-in a lot like our competitors. So this maybe is even the 300,000 -- 200,000 or 300,000 meals in this perspective has more value, so to say, as every single dish is produced in-house.

We have increased our third-party customer share. I think we have an incredible market share over there, and have almost all of the third-party clients, the most important ones. We invest on innovation and the new gourmet kitchen as reported last time, the construction is now going to start and opening is expected latest in 2028.

IG Group, which means London, Heathrow and Madrid, two major hubs, DO & CO is running very good operational performance in both locations, fresh menus, Iberia won international awards with outstanding food service by carrier in Europe in last year 2024, is a kind of ambassador of Spanish gastronomy. So you see more and more airlines are focusing on hospitality where I think DO & CO is a really great partner to achieve this.

Delta. The other big client -- one of the other big clients we have, and we're proud of serving them in many locations. New York, as you know, was a challenge to start with, with more than 300, 350 flights a day starting from 220, but going up to this in peak season is one of Delta's biggest hubs and international hubs, not only for domestic, as you know. We have consolidated the location. We were doing far better than at the beginning now. There's some homework to do, but I think we are at the right path.

JetBlue, another big one in U.S., another client, we are proud of and some new clients, as you see in the presentation in almost all locations from various airlines coming to us. New contracts Rest of the World from Air Astana, All Nippon up to China, China Eastern, Ethiopian-Gulf, Hainan and Singapore. So you see it in different locations Swiss. A lot of Asian carriers, they do a little bit more or even more than a little bit in focusing in product quality. And I think this is one of the reasons why they choose us.

International Event Catering EUR 305 million of revenues, plus 6%; EBITDA 39%, 15% plus and EBIT 31%, 8% plus is basically is a [ who and who ] in the world of sports. You see all the Formula 1s, UEFAs, FIFAs, Bayern Munich, Tennis, Golf altogether, we are very proud to be a partner of all these corporations, federations, clubs. This is something we really rely on as its long-term relationships.

UEFA, for instance, started 2000 and 2004 with the First Championship. We just did recently the Champions League Final. Formula 1 is, as you know, 33 years, another 10 years contract signed. FIFA will have on Saturday the opening match in Miami for the Club World Cup, which is very tiny in Miami and New York, but we are in a tender process for next year, where we just submitted the tender. So there is no results so far. We're going in the next phase.

So you see all these clients when we click quickly through our loyal, long-term clients, and I think they appreciate the efforts, the passion we have and the liability in terms of serving them what they expect. SAP Garden in Munich has developed very well capacity of 11,000 guests with a lot of VIPs, Ice Hockey and Basketball games. So going very well. Ski World Cup we have, I think, mentioned already works very well. The ATP tennis, the Masters in Madrid is not one of the grand slams, but I guess in hospitality, it's definitely the grand slam with having, I think, 37,000 guests or almost 40,000 guests in 2 weeks' time. So this is one of the biggest hospitalities ever in tennis.

The same is with golf, but is obviously far smaller for Austria Hahnenkamm Races and other festivals are included in this division.

The third one is Restaurant Lounges. This is the product where we come from, and we are very proud of. We believe this is the DNA of the DO & CO blood and delivery, so to say. We did great improvements in -- especially in the profitability and in the sales too with 15% plus and EBITDA and EBIT by [indiscernible] increase. And we believe that there is an incredible market for the future. Now as a stabilized -- financially super stabilized company, we can step by step then invest in these areas where we have a B2C business, which is on its own a good business and additionally, the R&D of the whole group, which really makes sense as this is the competitive advantage which we have in comparison to all other Airline Catering.

Demel is doing super well. So we have increased the product portfolio of the chocolates and sweet in terms of gifts and kaiserschmarrn, which is the Austrian pancake is incredible, which started during Corona and is still incredible in sales numbers. So the Restaurants are doing well in both locations, Munich and Vienna. So is the Hotel.

Munich Hotel has been awarded by Michelin with one of the Keys, Michelin Key Awards, which we are very proud of. The airport gastronomy, we have extended the partnership in Vienna for another 10 years. And we're going now in a new tender process for the extension of the terminal, which will be due in, I think, 2 or 3 years' time. So this process just started and will be decided until the end of the year.

Our clients in all divisions expect from us extraordinary delivery of customer experience. Just to deliver something is not good enough in terms of comparison with other suppliers or caterers or hospitality companies. This is the reason why our top clients are willing to pay a little premium for all this effort and know-how advantage which we can deliver. To ensure a sustainable business case for the future, we need far more to invest now in people and work on further efficiencies to improve further our margins. That's the reason why our internal focus this year will be very much getting more people with the right hospitality fashion to our family.

DO & CO is now one of the best and biggest in this industry, but definitely the premium one. And whoever is interested in this industry, I guess, will rather come hopefully to us. The limitation of our growth is always finding the right people. It's not the business. This is the good news, there's nothing to do with CapEx, so to say, primarily, we have far more demand than we can deliver, but we would do wrong if we deliver something which is not in the corridor of the expectation of our clients.

So to invest in the Academy, DO & CO Academy will be one of the other objectives this year to train and educate all the current crew and the new ones joining us to become the best in the industry, and the third focus will be question and improve internal processes, get better efficiencies from procurement, to logistics, integrate first-time robots and intelligent solutions in our logistics side. So it will be never seen by a client. But these are the next step where we believe very much that it makes sense.

Regarding the current business years, so far, all parameters look good, not to say very good. So we see growth in all divisions expect an organic growth obviously not with 26%, 29%. It will be below double digit, something between 8% and 10%, which we currently believe is the case for -- in terms of organic growth. So I'm not saying that it could not be more, but then only we do acquisitions, and further improvement of margins is our other goals. So we promised you the 8% EBIT, which we delivered. So we'll do our best to improve more and more.

The growth will be driven through a mix of new clients and expansion of the business with current clients and bottom line growth, as already mentioned, with efficiency improvements, especially in the area of logistics, which is not visible for the client, far better procurement and bundling the volumes in a better way like we did in the past and better utilization of production capacities, although we have a good utilization, but any penny which comes additionally will have to improve our margins and additional business out of the same infrastructure, obviously, will bring better results.

I hope this first update was satisfying and is in a nutshell, good enough for you. Johannes is going to continue on the numbers, and we will be then happy to answer your Q&A. Thank you very much for listening.

Thank you. Good afternoon and good morning from Vienna. Also from my side, thank you for joining us today for the full year '24-'25 results presentation. I would like to start with our income statement on Page 28. We are pleased to announce that we have once again improved our EBIT margin increasing it from 7.5% last year to 8.0% this year. Our net result also increased, rising from 3.6% to 4.0%. Please note that hyperinflation IAS 29 is not affecting our EBITDA and EBIT margin, as you can see in our financial report, but the net result margin without this effect would be 4.5%. So those numbers demonstrate our focus on sustainable growth and long-term profitability.

This business here has seen a decrease in our tax ratio from 28.4% to 24%. The lower tax rate compared to last year is not the result of changes in tax planning, but rather reflects the ongoing evolution of the business. A reduction in the tax rate in Turkey from 41% in fiscal year '23-'24 to 22% in '24-'25, partly driven by a reversal of hyperinflationary tax effects as well as reduced deferred tax valuation allowances have contributed to this result. Our expected core tax ratio for '25-'26, including any one-off effects is between 25% and 26%, and all this was achieved by the continuous commitment and dedication of more than 15,000 employees worldwide.

I will give you now a detailed overview of our last quarter on Slide #29. As you can see, our total revenue was $524 million, slightly below [ Q2, Q1 ]. But on the other side, higher than expected. In the previous call, I mentioned that we expect EUR 500 million, so we are above that target. Our EBITDA margin was 12.5% in Q4. Our EBIT margin, 8.4% down from 8.7% in Q3 but higher as in Q2 at 8.1%, also the revenue in Q4 is the lowest. In comparison to Q4 last year, you can see an increase of EBITDA of 1.3 percentage points and 1 percentage point on EBIT margin. So overall, we are very satisfied with the result in Q4. It's in line with our internal forecast, and it confirms that we are on the right track.

Now let's review the results for division on Slide #30. Let me start with the Airline Catering. Although revenue in the division was slightly lower in Q4 than in Q2 and Q3, but higher than in Q1. We were able to increase our EBITDA margin to 11.7%, and we stabilized our EBIT margin at the same level like in the past 2 quarters, 8.0%. Our EBIT margin improved year-on-year growing from 7.0% to 7.5%. It's important to note that the first quarter was impacted by start-up costs as we have outlined in our communications.

International Event Catering. The EBITDA margin is 20.8% and its EBIT margin is 13.3% in Q4. This is due to a onetime release of accruals for Q1 and Q3. So our total year margin is not affected by any onetime effect, as this is related to our business year '24, '25. EBIT margin of 10.3% in that division is once again slightly better than last year.

In our last division, Restaurants, Lounges & Hotels, revenue was higher than in Q1 and Q2 despite having only 28 days in February. That development push our potential in that division. The higher revenue resulted in an EBIT margin of 9.6%, just 0.1 percentage point lower than in Q3, which was boosted by a very strong Christmas season. Our EBIT margin for '24-'25 is 8.7%, which is 2 percentage points higher than last year. Turning to the balance sheet on Slide 31.

We see an overall increase year-on-year of just 2.1% reaching EUR 1.2 billion at the end of March '25. Property, Plant and Equipment rose by EUR 51.7 million, mainly driven by investments in Turkey, U.S. and Germany. Trade receivables increased by EUR 42.5 million a clear sign of our robust business demand. Cash stands at EUR 174.2 million, EUR 100 million lower than last year. But please note that we repaid a total of EUR 171.8 million in loans. And we will discuss this again on the next slide.

Slide 32 clearly shows our impressive equity ratio of 37.6%, which has surged from 27.4%. Other financial liabilities within noncurrent and current liabilities decreased by EUR 150 million in total, driven by the repayment of loan. The total value of outstanding short-term and long-term loans is EUR 76 million by the end of March '25, EUR 10 million on the noncurrent liabilities and EUR 66 million under current labilities. The total amount of lease liabilities is EUR 255 million.

Looking at the cash flow statement on Page 33. Please pay attention to our gross cash flow of EUR 249.9 million on this slide. You will see that this is an increase of 38.4% compared to last year. Our free cash flow was EUR 9 million higher than last year. We had tax payments, EUR 30.6 million higher than last year. The repayment of liabilities amounts to EUR 200.5 million, including the repayment of loan, with the remainder being lease liabilities.

Our net debt-to-EBITDA ratio is 0.6% by the end of our last business year, as clearly stated on Page 34. And now we have prepared another slide for you, #35. This clearly demonstrates the very positive development of the KPIs over the last 3 years. I would like to highlight only a few numbers.

Our EBIT margin has a significant growth moving from 6.0% to 7.5% before reaching 8.0% this year. This is a major accomplishment, and I'm confident that we will continue to enhance this in the coming years. Our free cash flow of EUR 125.2 million compared to EUR 116 million and EUR 82 million in the past. Our net debt-to-EBITDA ratio improved from 1.9% to 0.6%. And last but not least, our return of capital employed is an impressive 40.4%, showcasing capital efficiency, outperforming industry benchmarks and delivering substantial value creation for our shareholders.

Finally, I would like to thank all my colleagues worldwide for the support. Thank you for your attention. And now I would like to hand over to [ Bettina ], who will provide you with an update on the ESG. Thank you.

Good afternoon, ladies and gentlemen. It's a pleasure to share the successes of our ESG initiatives during the past business year. Our commitment to innovation growth, always mindful of future generations has led to significant progress in our ESG strategy last year. Please allow me to highlight two key achievements from the past year.

We significantly expanded the scope of our business activities covered by Certified Environmental Management Systems. As a result, 51% of our activities are now certified, well above our target of 40% for this year. And the second one, which I would like to mention is that our science-based targets has officially been validated. So we are on a good way on our journey to Net Zero by 2040. Data clarity is something very important in order to have a solid basis to sustainably drive the business. We have implanted two new software systems. First in preparation for the upcoming CSRD but also to set a new global level of visibility of relevant KPIs leading to business optimization. As mentioned earlier, the ISO certification of our London unit helped us reach 51% EMS certification across our business.

And in the Events division, our local Austrian event department have been awarded with the Austrian Ecolabel which not only proves our high level of quality and dedication to offer sustainable events, but also provides a blueprint to expand the product range to green events globally. Where do we go in our ESG initiatives?

After successfully expanding our EMS systems last year, we are continuing to pursue ISO certifications for additional units. And with better data now available, ESG creates further opportunities for driving the business. Finally, our supply chain remains one of our strategic assets, building on highly valued partnerships. In preparation on the new regulations, but also the changing environmental conditions, we will set the focus on maintaining a strong and secure supply chain. Thank you very much. I hand back to my colleagues.

Thank you very much. I think we're done with the first part. Now we can move on to the Q&A.

[Operator Instructions] And we have our first question coming from the line of Julien Richer from Kepler.

Three questions for me, if I may. The first one on recent trading, you mentioned the fact that trading so far is good or very good. Some airlines have been talking about weaknesses on transatlantic routes. What are you seeing on those routes and especially with BA or the U.S. airlines you work with? And how do you explain the softer Q4 performance during the year?

And you mentioned Attila an 8% to 10% organic revenue growth for 2025, 2026, implicitly, it confirms your EUR 2.5 billion revenue ambition you mentioned during the year. But does that also include some FX impact because it seems that the FX will be a headwind in the next 12 months?

The second question in terms of new contracts, you signed several contracts during the year. Can we have the contribution? I mean out of the close to EUR 500 million revenue you had in 2024, 2025. What share of revenue increase was coming from those new contracts? And what has been the impact on margin overall during the year?

And last question on capital allocation, 0.6x net debt EBITDA is fair and low level, let's say, if we assume a 2x, it's EUR 400 million of cash available. What do you think you can do with that cash?

So thank you for your question. So regarding the revenue now in that business here, we do not see any big decrease reduction even it's higher than last year again. You might note that according to IATA, we're expecting approximately 4% passenger increase. So we do not see any big impact right now. Of course, we are tracking our passenger numbers, our flight numbers on a daily base. So if a reduction would happen, we would be able to react immediately. But so far, we do not see any big decrease here in passenger numbers or meal numbers.

Regarding your second question, the Airline Catering revenue in Q4, maybe you asked for the -- for comparison between Q4 and Q3. And yes, you can see a slight reduction in some of our units if you compare the revenue, the airline catering revenue per country. But please consider that especially Q3 is a very strong quarter. According to the Christmas season, we were missing 2 days in Q4. And on the other side, please note that the lira devaluated also in Q4. So that was also an impact if you look to our Turkey revenue. But the softer revenue that you mentioned is not related to any volume reduction or passenger reduction.

Julien, may be from my side, the growth. So we're always conservative in these kind of things and do not want to overpromise. So the 8% to 10% is something we believe is doable. And you're right. This is exactly what we said in terms of we're going to heading EUR 2.5 billion, and we said in 3 years' time, where we have another 2 years is something like EUR 3 billion, which we had. And if you look on a sales increase of 12% and 15% within the next 2 years, and you end up with EUR 3 billion. So this is basically the simple math we do. And in this case, we are not talking about acquisitions or something like that. So we believe that the current business we have can be expanded with maybe some openings in some areas, but within the own package, so to say, without significant acquisitions on the market.

And maybe one more thing I want to add on the U.S. airlines and what they said. It might be the -- not it might be sometimes -- it was the case that in some areas, the occupancy level or the load factors, airlines call it, has been dropped down. But what happens is they use then the aircraft on the other destinations. So they take one out of the fleet instead of flying on the Atlantic and flying somewhere else for us. Honestly, we don't care at the end where the destination is as long as it's another long haul. And this is what we have seen so far. So, so far, we do not see any significant change in total numbers we have delivered in terms of meals. So that's what we have.

And Julien, sorry, one more answer of your question regarding the '25 revenue increase. So in the Airline Catering, we saw an increase in revenue of approximately EUR 440 million. So there around 45% is related to new customers that started operation in '24-'25 and also the remaining effect of new customers that started partly in '23-'24. As we mentioned in one of our calls, we faced start-up costs in JFK. Nevertheless, the new revenue in all other stations contributed also to our results and the profit margin for those contracts are in line with our group margin was slightly above due to operational leverage. This was the remaining question regarding Airline Catering revenue in '25.

And just before going to the last question, does it mean that in terms of margin for next year? I mean, if I annualize what you had in '24-'25, you should be at a margin of around 8.4%, 8.5%. So Q4 is at 8.4%. But if I annualize the 100 bps improvement that you had in H2 for the entire year should get around 8.4%, 8.5%, but your ambition initially was 8% to 8.5% for '25. So what's your view on margin for the next 12 months?

Julien, you are always right. This is exactly the target. This is what we have to go to, and we'll go to. So honestly, this is a realistic increase and see where we are. So initially, we said 8% to 8.5% and now we are heading at 8.4% and 8.5%.

Okay. And so for the capital allocation, sorry, I interrupted you.

Yes. And regarding net-debt-to-EBITDA, you're right. We are at the moment at 0.6. This was one of our main goals now to reduce this ratio from 1.9 to 0.6. It's just giving us financial power as well now in stability. So I think we are ready to go if we get to an opportunity, you're right. So I think -- we are in a very good position now. We do not plan any big investments right now or maybe M&As, but I think we have the power, we are ready to go if we get the right opportunity.

Correct. I mean it was always shared with you that, that step one is stabilization of the financials in being healthy and strong for the next step. Now we are investing and I have started invested in -- investing in people, in education. As I mentioned before, this is the only driver of the business. So we do not suffer in terms of market demand. We need to be careful that we deliver what the market expects in terms of experience. And then I think a balance sheet like we have, you can always take any loan you wanted to say, if you get opportunities, and we will take these opportunities. So the clear message is this company will grow but this company will not go in a stupid, stupid way by diluting margins. So this is definitely not what we have in mind.

But as I said, the clear goal is the EUR 3 billion in 2 years' time with a margin in terms of double digit. This is what we always stated, which we believe is super realistic even from -- I mean, far more now than 1 year ago.

The next question comes from the line of Vladimira Urbankova from Erste Group Bank.

Congratulations to excellent results. Yes, a little bit more on the ForEx impact. Do you have by chance any figure for the '24-'25 fiscal year? What it would be the revenues in constant currency then, of course, looking towards the current fiscal '25-'26. I think we faced rather headwinds. Any kind of estimate if you said 8% to 10%, 8% with bigger headwinds, 10% with less significant or how to interpret this range? Or what are the major factors apart from currency?

And then next question would be related to your CapEx, if you maybe have any update of what do you plan to spend in this fiscal year and maybe but where the start-up costs at JFK? Do you have any quantification or is it simply like that without the start-up cost at JFK, we would be 8% already in first Q, which in fact, recorded 6%? So this would be my questions.

Thank you, Vladimira. Let me start with FX. So you know that we are very transparent to you and our forecast at the moment, we estimate a little of a devaluation of approximately 15%. It's well at the same level that we faced in '24-'25. If you compare the FX effect '24-'25 with '23-'24, it's approximately EUR 100 million. But on the other side, the hyperinflation effect was EUR 91 million. So this is a compensation more or less if you look to the '24-'25 numbers.

And regarding the U.S. dollar at the moment in our forecast, we expect [ 1.16 ] to the current level. And for hyperinflation, we expect 33% within that business year. Okay. So I think that's a very important thing for you, for your model, and I think also very transparent.

Regarding the estimate, 8% to 10%. Yes, of course, depending as well on the currencies. It's a mixture. The increase is a mixture of, of course, CPI increases, new customers, which is around 3%, 4%, tender wins that we have already in the books. And according to IATA study, a 4% increase in passenger volume. So that's leading us or bringing us to 8% to 10% in that range, depending on the lira. And if we see some changes in the lira in our next calls, of course, we will give you another update, and we will reflect our guidance again.

Your third question regarding CapEx. Our CapEx guidance for this year was 3%. It's exactly 3%. If you look to our financial report, it's EUR 68 million for next year, to be honest, we expect 3% to 4%. As Mr Dogudan mentioned, we have to invest into our units into people, innovation, but also automization to further increase our margin. So that's why our CapEx guidance is a bit higher for this business here between 3% and 4%.

Next question comes from the line of Christoph Greulich from Berenberg.

Yes, it's three questions from my side, please. Firstly, I wanted to just quickly follow up on the EBIT margin target that you have given for this year. And am I right to assume that if we simply do not have the start-up costs at JFK again, that would already bring you then to around 8.5% margin. Then I wanted to also follow up on your statements regarding M&A and general willingness to engage if an attractive opportunity emerges. I would just -- yes, I would like to get a bit of a feeling for how advanced let's say, that, that process is -- would you say is more of a wait and see approach if, if anything comes up or have you already identified targets that you might be interested in actively preparing for discussions with potential targets? If you could provide any color on how advanced those M&A plans are?

And then just lastly, on the momentum in terms of winning new contracts. If you could give us an idea of the latest trends there? Have you seen any changes in the frequency that you're receiving tender invitations, any changes in the success rate? Yes, that would be very helpful.

Let me start with your margin. Yes, of course, you are right. If we reduce the start-up costs in those numbers, it would be at 8.5% approximately. On the other side, like we mentioned before, we invest into people, innovation, quality. That's not always related only to CapEx, but also maybe affecting the P&L, but it's not a big effect. So that's why our guidance is, yes, between 8.5%. But of course, our target is 8.5% in regards to the margin.

On the M&A side, you're right, it's a wait and see. I mean, basically, the strategy is what is the interesting part of the market. So you either get a home base, which makes sense where you have enough volume with one client or you go on high-frequency locations.

In terms of high-frequency locations, we can go on our own. So we are working, as mentioned last times on the last call on the system where we have far less CapEx to go on a location because we go with kind of temporary kitchen store inside of this where the technical requirement is less in terms of CapEx than if you would do it the old way around. So we can go and open our own stuff. So to buy someone just having locations doesn't make sense. So getting another 5 locations in U.S. or 10, Honestly, if you buy in the wrong culture, then it doesn't make sense. So I think we can do our business on our own, but where we are definitely looking very, let's say, very interested is always a home base.

So whoever comes up with the home base, where we have basically the biggest impact to an airline because you do all the [ outbound ] flight. In this case, if there is a chance to buy from an airline or if you buy something on the market, that would make sense. The other part is we mentioned already, we're working on the central production unit, that means that we sell components, food components which we do only internally now in our group to third party and especially to other airlines, too.

In this case, you can utilize your existing facilities, in a better way, and this is something which we're going to try in U.S. too. So the combination of these elements give us the confidence of, let's say, the base growth of 8% to 10%. And we believe very much additionally to getting new clients that we open new doors for let's say, distribution channels, which we so far did not touch. So this is where we are. I hope this is helpful.

Yes. Maybe just quickly to follow up. So just understanding correctly, would you just describe these are all organic initiatives, or does that involve any M&A?

No. It's all organic. Organic, but organic would be if you invest like EUR 10 million in a location and you have another small location where we do another EUR 50 million, something like this. Instead of investing like EUR 25 million to EUR 30 million in the past. So we -- I think we are dropping down significantly the CapEx to get a new location, which means you can go in locations. If we get a good enough clientele base, then you simply go there. We all would go to a location if we have a client. We don't do it the other way around. But this is not in line with any M&A. So this is us organically.

And if we then just also think about that the M&A opportunity, yes, if we could just get a bit of a feeling for how advanced those plans are? Have you identified any specific targets you might have an interest in? Or is that more of an opportunistic approach where you basically just see if any opportunities might come up in the future?

Yes. I think it's more the second one seeing for opportunities coming up. As you know, some businesses in this industry are coming on the market now, and we'll have a look at it. But in general, I can say we're not buying market share for the sake of revenue. So if it doesn't make sense in terms of strategy, giving add value to the client, or if it's only driven by logistics and you have very little food, which is another approach where others might have a better business case, then it doesn't make sense for us. So we are selling experience combined with hospitality and food and obviously, logistics too.

But if it was only logistics or driven by logistics, like, I don't know, 80%, then I think it doesn't make sense in the portfolio we have.

Yes, that's very clear. And then just the last question was in terms of the contract win and the tendering momentum if you have seen any changes in the trends? Kind of how frequently received invitations for tenders and your success rate?

Honestly, it's an ongoing process. And the success rate is quite high as we are but we're just participating in tenders where we believe we can win because we give the clients and add value. So we are not going in every tender, which does not make sense. So the success rate is definitely quite high, I would say, 70%, 80%, something like this. I don't know the exact number, but high. So -- and if we lose, it's simply driven that someone else gives a price where you keep a client for the sake of keeping the client. So I think the combination of growth and margin improvement is very rare in this industry. So it's more on the sales side. This is always the driver. And regardless, there is a chance to get a margin or not. And I think this should not be our goal. And if you look on the targets we have we have explained and told you 2 years, 3 years ago, which we could meet. And what while we are telling you now in terms of heading in after 2 years, EUR 3 billion on an organic way, with improving margins to a double digit, hopefully. This is super realistic if we stay where we are.

And I think this really makes sense and then expand in other areas of business, which is not only airline. So this company was on sale and you just want to get another EUR 500 million, honestly, this is easy, but you dilute your margin. So this -- if you're a long-term investor and you wanted to do it in a proper way, then you have to look on quality or what you stand for. And everyone is expecting, as I mentioned at the beginning, everyone is expecting from us a discerned NPS score, different quality, different customer feedback. And if you were not able to deliver this, then you simply would not get the premium anymore, which we get. So I think this is a clear strategy. DO & CO is a quality provider, combined with a ton of innovation and the right people. And then I think this is exactly where growth and margin will come for the future.

The next question comes from the line of [indiscernible] from HAIB.

Just a couple, mainly on the Event opportunity in the U.S. There's been mention of the FIFA World Cup and Soccer Championships. Can you remind us when these tenders come up and whether you think you'll get a share of this opportunity?

And then just to follow on, on the tenders. You say you've been selective about them. But what geographies are you focusing on mainly at the moment? I mean I see that you won Aeromexico to Detroit recently, is the Latin American market a potential market to tap into? Or where do you see the biggest opportunity?

Thank you for the question. So coming to the event in U.S., you're right. So the FIFA is -- will be one of the biggest events ever happened on this planet. So the tender process started. We submitted our first offer, and we'll get some feedback, I think, in a couple of weeks. And then in the next, I would say, 3 months there must be a decision then who's going to get which part. It's a very big one. It's 16 locations, more than 100 games. And I think stadium [ cater ] have a big call on this too as they have the infrastructure ready on site.

So again, our chances like we do now the Miami and New York, which are kind of prestige locations. New York is going to have all the quarter semis and the final and Miami is starting on Saturday, I think they have 8 matches or something like that, and we're just doing the VVIP, which means we have a chance to demonstrate after Formula 1 and the activities we have in U.S. that we are a U.S. company. We have 4,000, 5,000 people already working there. We had a lot of experience in football, like no one else has. And I think hospitality in U.S. is completely on a different -- in sport hospitality is completely different. And we definitely see a good opportunity once people experience on their own that business will come. So it's for sure. And this business, you can only run from your existing kitchens if you have skilled people who are at this level, and not let say, on an airline commodity level, which were not, but this is the reason why we have to invest in people, in education, in academy and these kind of things to cover this kind of demand. So this business will definitely come.

But coming back to the FIFA, I think in the next 2, 3 months, we will get an answer.

In terms of markets, airline, I think when you talk about Mexico, obviously, we would go to Mexico. We have a great event in Mexico for Formula 1, and we will always look for local, let's say, partner in maybe not even the same industry, so tying up with someone, if it makes sense. So we are super open to go to new markets and see what it is. Mexico is next door to U.S., the same could be Canada is an interesting market at the same time. But U.S. itself has incredible opportunities.

If you keep in mind that we have 6 locations currently and the majority of international carriers fly to 15 plus destinations, there is a lot of room for further improvement in terms of getting the same clients in other locations. So it's like -- it's not increasing the frequency in New York from 5 to 6 flights a day, is simply if they are happy in New York and in Miami, they will obviously come in Seattle and San Francisco. So if we open a kitchen there. Las Vegas could be one of the locations where they want to go, because Formula 1 is there and -- this is a location where you combine these kind of businesses. So this is what we believe is the next step what we're going to do. But I can't give you like we go to Mexico, this country or that country. But I think we can see in a proactive way is maybe the right answer for that.

It was more on the tenders for leveraging the current kitchens you have, what other airlines you think are good targets to tender?

If you say in the current locations, we definitely -- I mean, all the network carriers, we go for tender. What I meant in terms of if someone is only buying logistics, if an American carrier has a location in U.S. somewhere where they just have handling, so to say, and they get very little food and it doesn't make sense. But all locations where we are, by nature, everyone is asking -- every big airline is asking the 2, 3 players in the market. So you always go in this kind of competition. And the question is, is it only price driven? Or is it driven by experience combined with price, which I think is like 30%, 40% of the market is driven by quality or more quality. And we see especially now by American -- with American carriers, too, that if you look to the ticket prices, they're charging a lot of money for this kind of transatlantic or Pacific flights and even domestic flights in the first class. So there is some room for the market we have. So we go in every tender with every major airline definitely. I hope this was good enough.

[Operator Instructions] There are no more questions at this time. I would now like to turn the conference back over to Attila Dogudan for any closing remarks.

So as a summary, I would like to thank you for all your trust and staying with us. As I mentioned in bad times, and we hope that we are facing a good time. So this industry is always shaky. We know that. So we are well prepared for changes, so to say, or market changes.

As you know, 70%, 80% of our costs are variable costs, so we can adapt quickly and we'll focus in all divisions to get this kind of healthy balance why our numbers are improving. So it's not only getting the one or other client in Airline Catering, so to say. It's a mix of the business, which makes the business case is a unique business case, and that's exactly why we are confident by improving the margins. So what we have to do now additionally to what I've mentioned is bringing our brands more visible, and I think if you are financially healthy, then you can have a different approach in all these things. And this will be our targets. So what we see as a summary, currently is good signs, good parameters for this year. We do not expect currently any significant changes. And if then we will tell you and we'll see what's going to happen.

But you know that we have always reacted quickly if something happens. So we are always careful on the downside, so to say, and take every opportunity on the upside. So the only limitation is we do not want to harm the brand. So we believe we have to deliver these ad values. And as long as the NPS scores and customer satisfaction are fine. We are always entitled to get the premium. So this is where we are. I hope this is a strategy you can share and I hope it makes sense for everyone. And we believe very much that we are heading kind of good times and I hope that we can deliver all your expectations. So thank you very much for listening. Thank you very much for all your support, and have a good day. Good evening, wherever you. Thank you.

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