Jumbo SA Aktie

Ladies and gentlemen, thank you for standing by. [Operator Instructions] The presentation will be followed by a question-and-answer session. [Operator Instructions] At this time, I would like to turn the conference over to Mr. Apostolos-Evangelos Vakakis, Chairman of the Board of Directors; Mr. Polys Polycarpou, CFO; and Ms. Karamitsoli Amalia, Head of Investor Relations. Ms. Karamitsoli, you may now proceed.

Thank you, Constantinos. Good afternoon. Thank you for joining us. Today, I will take you through Jumbo's first half results, the performance of our main markets, and the priorities for the rest of the year. I will keep this presentation brief so we have enough time for your questions at the end. Let me start with our main numbers. Group sales reached EUR 519 million in the first half, an increase of 4% year-on-year. Net profit was EUR 121 million, up 3%. Gross margin was at 53.5%, 33 basis points lower than the last year. The main pressure in the gross margin came from Romania. There was -- we absorbed the VAT increase, and we faced a weaker local currency.

On the other hand, a more favorable euro-dollar exchange rate, manageable freight costs during most of the period, and sales mix helped to offset some of this pressure. Sales for the first 8 months increased by 6%. Our full-year outlook remains around 5% sales growth and net profit of EUR 310 million to EUR 320 million.

Performance differed across the markets. Greece, which represents 60% of the group sales, grew by 7%. Cyprus grew by 4%. Bulgaria remained strong with sales up to 11%. Romania was the most challenging market with sales down by 6.5%. Inflation, pressure on the RON, fiscal measures, and the VAT increase affected consumer demand. Separately, sales to franchise partners increased to about EUR 43 million from EUR 38 million last year. At this point, I would like to highlight the balance sheet. At the end of June, cash stood at EUR 546 million. The Group has no debt. That gives us the capacity to invest in the business while continuing to return cash to the shareholders.

We have already paid EUR 1.20 per share this year, EUR 0.50 in March, and EUR 0.70 in dividend in July. And yesterday, the Board resolved to pay for further cash distribution of EUR 1 per share. Including that amount, the total cash distribution in 2026 will reach EUR 2.20 per share or approximately EUR 296 million.

Looking ahead, we expect a new Baia Mare hyperstore in Romania to open in October. We also plan openings in Romania and Cyprus in 2027. In Greece, 4 stores are in preparation with openings expected in 2028. Bulgaria remains in our plans for one additional hyperstore within the next 2 years. Over the longer term, our objective in Romania is to double the number of stores. We're also developing a small pop-up format for selected locations with the first openings targeting in 2027 and 2028.

Finally, we plan to launch the Hungary online store towards the end of this year, supported by existing infrastructure in Romania. Our franchise partners currently operate 48 Jumbo branded stores in 7 countries. Our revenue -- this activity has 2 parts: sales of products to the partners and royalty income. Balfin launched its first store in Moldova this year and has extended our operation to 6 additional markets. For those new markets, Balfin will manage the supply chain through the Hub in China.

Fox Group operates Jumbo branded stores in Israel, and it's targeting its first stores in Toronto by the end of 2026. Our investments focus on logistic capacity, the store network, and our systems. In Romania, the progress of acquiring a 60,000 square meter giga distribution center is progressing. Also in Thessaloniki, the new 50,000 square meter facility is expected to be completed in 2027. We are also investing in cybersecurity and modernize our systems. All these projects support the long-term efficiency of the business.

To sum up, the first half delivered growth, both in sales and profit. Greece and Bulgaria performed well, while Romania remained challenging. We have maintained our full-year outlook, we will continue to invest in the network and logistics while returning cash to the shareholders.

Thank you for your attention. Now, Mr. Vakakis will take your questions.

[Operator Instructions] The first question comes from the line of Stamatios Draziotis with Eurobank Equities.

Let me start with the first one, which is on the gross margins. You mentioned the gross margin was down 33 bps in H1. Could you maybe help us quantify the main moving parts, i.e., FX, freight, franchise mix, Romania? And more importantly, how much of the favorable procurement backdrop is left to flow through in the second half, please?

I understood nothing. I'm confused. What exactly are you asking?

What drove the 33 bps margin contraction in H1 is the first leg of the question.

I would say that the impact -- the reduction on the gross margin, I would say that it came all from Romania, while improvements of the gross margin in other markets have rebalanced that a little bit upwards. But all in all, we lost about 0.5 percentage point, which is within our budget -- within our budgeted numbers.

And based on the rates that you have secured for the second half of the year, how do you expect gross margins to evolve, please?

We expect the gross margin to be flat. It would be in line with the first 6 months. But having said that, everything goes. I mean, we see a little bit now the dollar strengthening against the euro. We see that the cost of transport is holding steady and, in some cases, increasing. But my opinion, which is subjective and not objective, is in the direction that all these changes will not impact negatively the gross margin on the remaining months of the year.

That's great. And just a final question on the -- on shareholder returns. You've said you've distributed or about to distribute a total of more than EUR 2 per share in '26. With the Group still carrying a very large net cash position, how should we think about the sustainable annual cash return from here? Should we view, I don't know, EUR 1.5, EUR 2 per share as a reasonable range during a period when growth is not as it used to be a few years ago?

Again, I'm a little bit confused. The direction of the company is towards growth, generic growth. And we are working towards this goal. If we -- market conditions do not allow this to happen in the short term, the only alternative is to pay dividends. If we have the option to direct money towards further investments and growth potential, this is our first option. But we live in turbulent times. And therefore, one can have to be very careful in what he says because market realities may force him towards a different direction. All in all, however, despite the roughness of the trip, we seem to be coping in line with the last 20, 25 years of the past. We don't feel more unsecured, let's put it this way.

The next question comes from the line of Iakovos Kourtesis with Piraeus Securities.

My first question has to do with Hungary and the fact that you plan to launch the first online store in the country by the end of the year. If you could -- assuming that things will go as you expect to go in the country, would the next step be the deployment of physical stores you mentioned in previous times? And what will be the timing gap before we see this happening?

What we have said is that we will remain focused on markets that we are currently operating. And for somebody who reads our announcement, it sees that we are back into rapid growth of new stores between '27 and '28, more in '28 because -- but we are building currently a lot of stores and buying securing land and property around. So, to put into the war plan also Hungary would be not a prudent option. We will stay with the shop, read the market, learn from the shop, and then we'll be ready later. I don't believe that we will see an activity happening in Hungary in a period less than 3 years.

Okay. And since you mentioned that you are in the progress of preparing 4 stores in Greece, would it be too much to ask where are these locations that you plan to open these stores in 2028?

Deliberately, we have not announced that because we believe that, that doesn't help the way we approach authorizations and the rest. I mean, there is no need to create further resentment than the absolutely necessary.

Okay. And if I may, one last question. Would you be kind enough to let us know what's happening with Oinofyta? Do you have the land plot there? Did you acquire it?

Yes, we have acquired. All lots have been already bought. We don't announce a new store unless we have secured the land.

Okay. And since you acquired the land plot there, you seem to reassess the logistics center there due to -- as far as I understand, you plan to apply the Balfin Group model with Fox Group? Or this is maybe your intention? What do you plan to do with it going forward?

The idea is that we are refocusing on our own stores. So, regarding the franchise activity, we want to rebalance it against our main activity. We see a danger in our franchise activity growing too fast, too quickly, that this may infringe our growth potential of our own properties and our own markets and stores. For this reason, we have made alliances with Fox Group and Group Balfin in order to take some pressure out of that and refocus into our main activity, which is generic growth of our own destinations and properties.

The next question comes from the line of Yiannis Kalogeropoulos with Beta Securities.

I have a question regarding your new smaller stores that you mentioned that you would operate in 2027 and 2028. Would you consider that this marks a shift on Jumbo's current operating model with the bigger or the hyper stores now that you are expanding into touristic or popular areas with smaller stores, as you say? And would you predict that these new stores would enhance, dilute, or do not affect your operating profitability margins?

If one wants to elaborate a little bit more as part of his activity towards areas that are more expensive to operate, it makes sense to run smaller stores and product ranges that have the gross margin to support such an alternative option. So, although it is early to say, our planning is based on the assumption that increased cost of smaller stores would be counterbalanced by a better gross margin on these stores.

Okay. Yes, it's quite helpful. And do you consider this switch, this shift to smaller type of stores in more density or more popular or more touristic areas, something like a change in Jumbo's operating model? Because up to now, your strategy, I think, was both for Greece and the Balkans, Romania, Bulgaria, and wherever, to operate big or hyper stores. Now that you are switching to smaller ones, isn't it roughly like becoming a more oriented -- I don't know if it's proper to say like a supermarket retailer.

No. Our strategy is a little bit like the e-commerce strategy. We hope to approach areas that were not approachable in the past for the reason that, first of all, you cannot find locations with the magnitude of the size that we are talking about Jumbo without paying your shirt. So, you will need to run a limited range of products that will house the necessary gross margin, as I said, that will finance the additional costs. So, we see this operation as a complementary one, as an add-on exercise rather than as a competing exercise to the existing network of stores, plus the fact that Greece's future, whether we like it or not, will be based on tourism more and more. So, the store has to approach the tourists rather than the tourist the store.

[Operator Instructions] The next question is a follow-up question from the line of Iakovos Kourtesis with Piraeus Securities.

As a follow-up to Yiannis questions, if I may ask, taking into account that these pop-up stores will be small stores, should we assume that they should have some proximity to existing large stores that will help them with logistics and inventories? Does this make sense?

No. No, it doesn't make sense. They would be freestanding operations. When we say small stores, this is a relative term, smaller than existing stores. We are not talking about small, small stores because we are not a boutique concept. But anything over 2,000 to 3,000 meters would be considered as a possible option for us to operate if the demographics, the location, and the cost implications make sense. If they don't make sense, of course, we will shy away. We are not changing the model. We are adding to the model a twist. What would be the future? Nobody knows. Also, you have to always bear in mind that we have in areas franchise operations also in Greece that in the future may be substituted by our own stores. The whole idea is that all the profit should benefit the company if the numbers support that.

Ladies and gentlemen, there are no further audio questions at this time, and we will now move on to the webcast questions. The first webcast question comes from Nicolas Gourdain with Lexcor Capital. And I quote, "You had mentioned the possible acquisition of a new large distribution center in Romania. Is there any update on that you can share with us?"

As a matter of fact, we paid the advanced payment today. So, it is ours now. And we are going through the due diligence in order to pay the balance, and we hope to have that concluded within the next 1.5 months. We can now announce that, that was a big factory in Ploiesti, which was owned by a Chinese company called Haier. And it's almost a brand-new building with ultramodern facilities and the rest. So, the way we see it is that we are investing heavily in Romania since we have a plan of doubling our store presence there.

And we need the infrastructure to support such moves. Also, I want to make a small mention here. For us, Romania going through a turbulent period is an opportunity, not a threat. We are very strongly believing in the Romanian market. And we believe that we are offered now opportunities to acquire assets at prices that would make sense in the future. So, the strategy of Jumbo is never to buy its turnover. But when the going in an area or in a country is rough, we increase our investment in this country. And therefore, we have the benefit of a windfall also from the asset appreciation, although we never reflect this asset appreciation in our books since this is the vehicle to do our business, and we will never dispose it. But it helps on the numbers. It helps on the gross margin and on our profitability, which remains on the upper end of the industry.

The next webcast question comes from Uriya Cohen with Kai Capital. And I quote, "At what CAGR approximately do you see revenue growing in the next 5 years?"

I've never thought of 5 years ahead, but I would be disappointed if we didn't have a revenue increase, which compounded with a, let's say, strong single-digit number per year.

The next webcast question comes from Georgios Sotiriopoulos with Piraeus Asset Management. I quote, "First question, does the new EUR 3 EU customs duty on direct-to-consumer parcels in effect from July show up yet in your competitive position against platforms like Temu and Shein? That was the first part of the question."

Yes, this is common sense. Europe has reacted, and it's going to react further, making the environment more fair because before, we had an environment where the competition coming from other retailers was, to a degree, unfair because they had a lower cost implication for them. Now, Europe is taking steps and has announced that it will take further steps to balance this. But as I keep saying, this is, let's say, a benefit for our numbers, while at the same time, we also face conditions without the same benefit, but a negative implication. But the plus/minus of this operation makes us relatively confident that we can reproduce successfully what we have been doing up to now.

Second part of the question, "What like-for-like growth do you think Greece can sustain?"

That's a good question. Greece is currently overperforming against all logic. What will happen in the future will depend on how Greece will balance after the next year's election. This is something for the Greek population to decide, and we will just follow their decision. It is premature for somebody to say something more than that. It is a surprise that Greece overperforms.

Third question, "For the new smaller pop-up stores, what's the sales per square meter versus hyper stores?"

The idea is to have the same sales per square meter as in a bigger store. But as I said, since we will be running a reduced portfolio of products, we will be more selective towards higher contributing gross margin options.

The next webcast question comes from Jonathan Neuscheler with Abilitato GmbH, and I quote, "Will the new pop-up stores be comparable to the Action stores? Or will they be better?"

Action stores as well as other competitor stores have a completely different philosophy. They are relatively small stores, focusing on a relatively limited product range. They are direct competitors to mom-and-pop stores, not to our stores. And gradually, they substitute this type of stores into the market. As far as we are concerned, the competition we face from them is very helpful because, practically, it helps us get better. But we are not inactive. We follow them very closely, and we are very sure that we cannot be beaten by small joints like the ones you mentioned.

Next question comes from Maxim Nekrasov with Citi. And I quote, "How much of the benefit from the stronger euro to United States dollar has already reached gross margin? How much benefit is still left for the second half 2026 and 2027?"

We don't have a clue. Currently, we face a situation that the dollar is strengthening against logic or within logic because nobody knows these things. If we see vicious change, this will be reflected on the prices, and it would be for everybody. But as it hovers within a range, I would say that the impact has been relatively positive up to now. And since now, relatively unpositive, but nobody knows what will happen after the midterm elections in the U.S. We don't lose too much sleep with currencies because, as you know, we are hedged with products. And if conditions in the market change, prices of products would change. However, if we hover within what we call acceptable ranges, for us, we pass every advantage to the consumer. Otherwise, in markets where the demographics don't help, we wouldn't have like-for-like growth.

Next question is a follow-up question from Maxim Nekrasov. I quote, "What sales margins and returns do you expect from new stores and the pop-up format? Could pop-ups meaningfully speed up store expansion?"

No. Pop-up stores are like drones, for example, supporting aircraft or airplanes, fighter airplanes. They cannot substitute them, at least in the foreseeable future. Jumbo is a unique concept. It is well received and well accepted by the consumer. And I don't think it would be affected by, let's say, variations in our strategy the same way that it has not been affected by the e-commerce activity.

The next question is a follow-up question from Jonathan Neuscheler. "Cash is at EUR 550 million and keeps accumulating. That is a lot more than 25% of revenues. What does Jumbo plan to do with excess cash?"

In the short term, we are paying a dividend and extraordinary dividend. In the medium and long term, we have either the option of paying, let's say, bigger dividends or expanding in what we call generic opportunities around the border countries that we involve ourselves. I have always indicated that my first option is expansion, but never to buy the turnover. If the market creates opportunities for mid- to long-term expansion, we will take them proactively. And this is what we are doing, for example, in Romania, where some people may question why the hell are we investing if the market is retracting. The answer is that the market very logically retracts until it rebalances. And then people who have invested in new cities or new warehouses or new formats of retail opportunities would benefit better than other people who got frightened and stopped doing so.

The next webcast question comes from George Andriopoulos, I quote, "Is Hungary e-commerce pilot similar to Turkey? Or do you have more confidence that this can be a candidate for Jumbo owned stores in the future, given it is in the EU?"

Turkey, in order to defend itself against platforms like Temu and other platforms that were importing directly into Turkey, created an environment which was totally unfriendly for such activity. I'm sure that it will come a time that they will revisit their strategies. And then Turkey will become a future candidate for e-commerce activity. Definitely, we do not intend to establish a warehouse in Turkey. And the answer is that we don't like to involve ourselves into countries that are not part of the EC strong currency environment. And therefore, it won't be, let's say, a first option for us in the future. Now, we have involved ourselves into another country and then maybe another country. And -- but always, our mind would be open for an e-store in Turkey on the assumption that we will not warehouse products in Turkey.

The next question comes from Harry Wilton with Virgin AM. And I quote, "The first part of the question is, can you please share your expectations for growth rates for each market for the second half of '26?"

I would say that they will be in line with the first part. The only area that, secretly, I would like to see an improvement is Romania. All other areas are growing very strongly. And as a result, we don't want anything more than that.

Second part of the question is, "CapEx spend seems light year-to-date. Why is that?"

Pardon? What is CapEx?

CapEx spend seems light. YTD, I suppose, year-to-date, -- why is that?

Why is what? Is it higher or smaller? I don't follow this number very closely because our CapEx number, really, is a 3-year number since this is the way we approach our store investment strategy. The store cannot be active before 2 to 2.5 years of pre-investment activity. I don't have a clue how much is our CapEx for this year. I mean, I think it must be a little bit smaller up to now than necessary. But now we bought a new distribution center, so that will rebalance.

The next question, "What is your outlook for margins in each segment for the rest of the year?"

What is the what?

What is your outlook for margins in each segment for the rest of the year?

I cannot understand the question -- margins by geography. More or less, we try to keep them constant by altering the product mix. But with the exception of Romania, all other countries, either we enjoy the margin or we don't sell the product.

The next question, "Why was franchise sales per franchise store down minus 3.6%?"

These are numbers that are marginal. I mean, we do not control the franchise operation also directly. And this has to do more with the activity of the owners of the franchise themselves. I would say that, all in all, I don't see any resentment or any unhappiness in this part of business, although it is an area that we don't want to grow ourselves. We try to discourage people from entering franchise agreements with us.

The next question, details behind the improved working capital cycle and whether this should remain.

What?

Any details behind improved working capital cycle and whether this should remain?

I don't know what answer -- I haven't understood the question. One second.

Because the working capital was better in the first half of this year. And that's what the question is.

If conditions turn in our favor, which is something that we have not experienced up to now because the cost of transportation is high and the cost of the war is high, I would say that we should not be over-aggressive. But we believe better times will come. We cannot have infinite, let's say, periods of war or infinite periods of distribution destruction. I think we are well balanced all in all. We don't have any, let's say, vicious number alterations.

Next question is, "With the business growing its franchise model, do you think the level of cash required to sustain operations will be lower in the future than it has been in the past?"

It depends how much of this cash will be redistributed to shareholders or invested in properties owned by us. Definitely, we don't want to hold significantly more cash than necessary. But the model that we have in our mind is for a company that can sustain also a very big crisis. I mean, Jumbo is in a position to sustain a very big crisis, although we don't have signs of such a crisis. But as you know, better than me, crises come when no one expects them.

Next webcast question comes from Luca Baroni with Orson. I quote, "Looking a few years ahead, would you consider entering directly the most successful countries?"

We don't have the size or the appetite for what we call bigger growth to the one that we have planned. We want to consolidate our act. I keep saying that Jumbo flies as a plane and not as a rocket. And we have no intention of changing the strategy that has supported the company for many, many years.

The next webcast question comes from Zhang Hong with FNZ, and I quote, "I have a question. How is the group planning to control the inventory given it has been increasing since second half 2025? And are you expecting it to be significantly down once the distribution center has been finished in Romania?"

My feeling is that the inventory is coming down, not coming up. I mean, we are running with 3% less inventory than last year up to now. As a matter of fact, we want to beef up this inventory, but the market does not give us the opportunity to be more aggressive because of the indirect costs still affecting this direction. So, staying stable or even marginally reducing the inventory levels is the correct strategy in the current environment.

The next webcast question is a follow-up question from Jonathan Neuscheler and I quote, "Is Jumbo successful in buying more rented stores to lower the rent expenses? Any progress on the 30% of the stores that are currently rented?"

Yes, we are always around if somebody wants to sell the store. And up to now, a lot of funds think about that. But the question is that they have to sell it cheap. So, we are open to calls, but we are not Santa Claus. We don't buy at any price. And we don't buy our name. I mean, the building is a building. We have the strength of the brand.

The next webcast question comes from Dimitra Manifava with Kathimerini, and I quote, "Could you give us more details regarding the pop-up stores, number of square meters, countries?"

A concept that is successful, gradually, will be employed in every direction that it makes sense. But as we stand today, we are still on a project and at its infancy. So, practically speaking, I think it's premature to talk too much about that. I would be happy if by next year, we have 3, 4, 5 pop-up stores, but that's it. And then another year, maybe a few more and so on.

The next question is a follow-up question from Dimitra Manifava, and I quote, "Will the pop-up stores be opened the whole year or only during the summer?"

All year, since there would be always central stores, in highly populated areas and malls or freestanding. And as a result of that, they should be viable year-round.

The next webcast question comes from George Athanasakis with Pantelakis Securities. And I quote, "Romania real estate, do you see any opportunities to expand your store network more aggressively now given the macro-political difficulties the country is going through? And what do you mean when you say the process to acquire a giga distribution center in Romania is progressing? Have you bought it or not?"

I mentioned earlier that today, we paid for it. So, it was bought today. Of course, we still have to go through a due diligence that all the legal implications are correct. But assuming that we don't find any hurdle coming from anywhere, it would -- we will totally pay the property in the near future. So, it's ours.

The next webcast question comes from George Manettas with OT.gr and I quote, "Thank you for the presentation. How concerned are you about the fact that Greece is heading towards national elections? Has this affected any of your major investment decisions? And what is your view on the upgrade of the Athens Stock Exchange? And what kind of inflows do you expect it to generate for your stock?"

The company does not involve itself into politics. And as a result of that, it is the Greek voter who decide who will manage the country in the future. Definitely, we have not refrained in any form of an investment. As a matter of fact, on the contrary, we are putting back Greece into the picture because of the numbers that we generate out of Greece. I said that to our surprise, numbers are better than expected, which means that either the competition is getting weaker or tourism helps towards a direction.

The next webcast question comes from Kostis Christodoulou with CNN Greece. And I quote, "If journalists are allowed to ask questions, I'd like to ask about the Hungarian market, where you stated in your presentation that you plan to enter with an online store by the end of 2026. Is there a possibility of opening brick-and-mortar stores depending on how the online store performs?"

I said previously that we have no intention to involve ourselves into the Hungarian market before 3 years from now. And that a lot will depend also on how -- how strong the Romanian market rebalances.

The next question...

Romania is a very strong country, well populated, very strong. And as a result of that, we see the difficulties in the Romanian market as temporary.

The next webcast question comes from Jonathan Neuscheler. It's a follow-up question. "In the last weeks, oil prices increased again. Do you see a slower revenue growth in September?"

The answer is no. September has been one of our good months, and in line with the growth that we experienced in July and August. So, we have no such signs. Bear also in mind that we are a much more -- we have a much more, let's say, strong company now because of the various difficulties. We are a better company than what we used to be, let's say, 1 or 2 years ago. So, difficulties serve us well.

The next webcast question comes from Taher Abraham with Reading People Limited. And I quote, "Could you elaborate about your expectations from the Canada franchise?"

Again, we don't have a clue. We are going there to win the war. But we are partners indirectly. We are going there through a franchise. So, if somebody needs to answer this question, it's the franchisee, not us. We will do whatever is humanly possible to support him. But it's up to his will and expertise to execute the work plan.

The next webcast question comes from George Athanasakis with Pantelakis Securities. And I quote, "Temu, how do you expect them to react given the reportedly severe blow to their business after the EUR 3 charge implemented by the European Union?"

What's that?

EUR 3 levy. This was answered before. EUR 3 that was imposed by the European Union, but we have answered this before, so we can skip to the next question.

Yes. What we said is that, definitely, this works in our favor. Definitely, it creates problems that need to be solved by our competitors who, let's say, utilize various loopholes that gradually are closing. But these are strong companies and strong competitors, and they would come back with a revised work plan on their part. We never lost sleep from the previous, let's say, unfair competition. And we will not go to sleep because now we have been gradually protected by such moves. Our competitors are formidable and they will find ways to rebalance their act. I'm a strong believer of competition. I believe that we all work to serve the consumer. I'm against oligopolies and I'm against all forms of, let's say, protection.

The next webcast question is a follow-up question from Dimitra Manifava with Kathimerini. And I quote, "What is the surcharge on your operating cost because of the crisis in the Middle East? How will this surcharge affect prices?"

All these surcharges have been reflected on our gross margin. So, practically speaking, we have improved our productivity. And successfully, we have asked for the support from our suppliers to counterbalance this, let's say, hidden cost of the war. This is a situation that cannot stay forever. You cannot teach your dog not to eat, he will die. But in the short term, we can do many things to counterbalance problems that lie around. I'm very confident that we are going through a period that the serious implications of the war will gradually eclipse. I'm of the firm belief that after the midterm elections in the States, all necessary actions that need to be taken in order to make things happen will be taken. It is a fallacy to believe that after the midterm elections, activity towards resolving this type of issues will subside. On the contrary, I think that it will -- we will see a completely different environment once politicians take out the weight of the election implications.

The next webcast question comes from Gregorios Papadopoulos, I quote, "You now have multiple examples of Action stores opening close to your Jumbo stores in Romania, for example, Oradea. Can you tell us what the impact was on your sales in stores where Action opened nearby?"

As I said, nobody pays any attention to such activity. I mean, we really don't consider them as direct competitors. I mean, a big hypermarket or a big discounter or whatever are much stronger competitors than them. They make a living on a different concept, a different strategy. And before Action, there were many more before that that even exist very close to our stores all around the world.

The next webcast question is a follow-up question from Luca Baroni. And I quote, "I was meaning to buy out the most successful franchises over time." I suppose he's referring to his previous question and consequently, your answer.

The answer is no. We only focus ourselves on what we call generic growth within the EC market. We don't offer franchise opportunities within EC market. So, the franchise, let's say, action, which we want to redivert into an indirect support for them and not support them through our infrastructure ourselves are there as a complementary exercise towards our overheads. They don't -- they are not part of a long-term strategy.

The next webcast question comes from Xanthi Gounari with Capital.gr. And I quote, "You said that Greece is currently overperforming against all logic. What exactly are you seeing in your data that makes you say that? Is it higher traffic, a bigger average basket, stronger tourist spending, or market share gains from competitors?"

Everything, everything and nothing because let's not be misquoted. We were expecting Greece to do worse than what it's doing, but not much worse. We are in a position to benefit from, let's say, a little bit better environment than what we had expected. So, a little bit of everything is the answer. We believe also our competitors are doing relatively okay.

The next webcast question is a follow-up question from Zhang Hong. "A follow-up question from my side. But I see the cost of goods sold caught up at the same level with inventory also, which were not the cases before the second half of 2025. Is it something that in the attention of the company? And are you expecting these numbers to be down?"

I have answered them. I said that they are already down. I don't see where you read these numbers. Numbers are only one type of numbers. There can't be two types of numbers. And our overall inventory, I think it's 3% less than last year.

The next webcast question is from Uriya Cohen with Kai Capital. "Why the company doesn't repurchase stocks in current low prices?"

Pardon -- if we will buy back, this is the third option. First option is generic growth. Second option is return dividends. Third option is buy back stock. But since we have a positive view about the near future, I think our first option, which is generic growth, is the one that is in favor within the management team.

The next question is from Nicolaos Kakavas with retail investor as an MBA student. And I quote, "Given the new EU duty on low-value Chinese parcels and your strong cash position, would you consider a more aggressive e-commerce strategy?"

The answer is no. Our e-commerce activity would always be complementary because we want to encourage customers to enter the store -- and this is where our strong competitive advantage lies. So, complementary activity, yes, competing activity, no.

Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Mr. Vakakis for any closing comments. Thank you.

Okay. Thank you for listening to me. My personal view is that companies that do their homework every day only have to benefit out of various types of crises. And if one runs a balanced act, and does not try to buy his turnover or to fool his business partners is a better horse to ride than a donkey. Having said that, it is also true that we live in turbulent times, and we may have unexpected shocks, that nobody can envision today. My personal view is that we will not have so. But this is not an objective view. This is a personal view. And I always repeat that most of the time I'm wrong. But my personal view is optimistic. It's not pessimistic. Good afternoon, and thank you for listening to us.

Ladies and gentlemen, the conference has now concluded, and you may disconnect your telephone. Thank you for calling. Have a good afternoon.

Ladies and gentlemen, thank you for standing by. I am Maria, your Chorus Call operator. Welcome, and thank you for joining the JUMBO conference call and live webcast to present and discuss the full year 2025 financial results. [Operator Instructions] The conference is being recorded.

[Operator Instructions] At this time, I would like to turn the conference over to Mr. Apostolos-Evangelos Vakakis, Chairman of the BoD; Mr. Polys Polycarpou, CFO; and Mrs. Amalia Karamitsoli, Head of HR.

Ms. Karamitsoli, you may now proceed.

Thank you, Maria. Good afternoon, ladies and gentlemen. Thank you for joining JUMBO's Annual Investor and Analyst Conference Call. Before we begin, I would like to briefly walk you through the key highlights of our performance, and then I will hand over to our Chairman, Mr. Apostolos-Evangelos Vakakis for further comments.

2025 was another year of solid performance and resilience for the group. Total sales increased by 7% year-on-year, reaching approximately EUR 1.23 billion, reflecting sustained demand across all our markets. Gross margin stood at 54.7%, slightly lower compared to last year, mainly due to the increased contribution of franchise operations, which carry lower margins.

On a comparable basis, EBITDA rose by 5% to EUR 436 million, while net profit increased by 4% to EUR 320 million. Importantly, we continue to maintain a very strong balance sheet with a net cash position of EUR 473 million, providing us significant flexibility to support our investment plans. Return on capital employed remained very high at 27%, underlying the efficiency of our capital allocation.

During the year, we continued to return value to our shareholders. Total cash distribution reached EUR 131.5 million, while we also proceeded with the buyback and canceling of 1.25% of the total shares.

At the same time, we continue to expand our footprint. We opened our second store in Timisoara. We launched our online store in Bulgaria, and we acquired 3 previously leased stores in Greece, further strengthening our asset base.

Growth was broad-based in all our regions. Greece recorded a 9% increase in sales, Cyprus grew by 8%, Bulgaria by 5% and Romania by 4%. This performance reflects both the strength of our brand and also our ability to adapt in local market conditions.

Moving to the year ahead, we started 2026 on a positive note. Group sales for the first quarter increased by 7% year-on-year. Greece and Bulgaria posted a double-digit growth of 11%, while Cyprus recorded a 4% increase. And Romania, on the other hand, saw a decline of 4%, reflecting more challenging macroeconomic environment in the country.

Also during the first quarter, we proceeded with a cash distribution of approximately EUR 67 million or EUR 0.50 per share, further demonstrating our commitment to our shareholder returns. Our strategy remains focused on expansion and long-term value creation.

In Greece, we plan to develop at least 4 new stores in the next 3 years, while in Cyprus, we see that there is room for 2 additional stores in the medium term. In Bulgaria, we expect to add 1 more hyper store within the next 2 years. And in Romania, a new store in Baia Mare is scheduled to open in 2026. More broadly, our plan in Romania is to open at least 1 new store per year with the objective to double the number of the stores in the next decade.

At the same time, our franchise network continues to grow dynamically, both within existing markets and to new territories. Currently, our partners operate 45 stores across 7 countries. Specifically in Israel, we expect 3 to 4 new store openings in 2026, while their entry in Canada is progressing and the first store in Toronto is expected in early 2027.

We also continue to invest in the improvement of our e-commerce platform. Our focus is on improving customers' experience, operational efficiency, and we're also exploring the expansion into new markets. At the same time, we invest in our logistic infrastructure, which is critical to support our expansion. We have agreed to acquire a 60,000 square meter distribution center in Romania, while 2 additional distribution centers are under development in Greece. Total investments in logistics are expected to exceed EUR 95 million over the next 3 years.

Looking ahead for 2026, we expect sales growth at around 5%, net income to range between EUR 310 million to EUR 320 million and capital expenditure close to EUR 60 million.

To conclude, JUMBO continues to demonstrate strong fundamentals, consistent profitability and a clear strategic direction for future growth. Thank you for your attention. I now hand over the call to our Chairman, Mr. Apostolos-Evangelos Vakakis for the questions.

Good afternoon to everybody. I'm ready for the first question.

[Operator Instructions] The first audio question is from Stamatios Draziotis with Eurobank Equities.

Could I start with Turkey? Could you maybe elaborate on the strategic rationale behind the e-commerce launch approach? Should investors see this as a low CapEx way to test demand, brand awareness and price positioning before a physical rollout? Or is it just a stand-alone channel opportunity?

Yes. So practically, you are asking how we are going to approach the Turkish deal. So, we are going to employ our facilities in Romania, where we have established a state-of-the-art distribution center. And gradually, we will enter under the radar in the Turkish market in order to gain experience and market share. That will be only an e-commerce exercise, nothing more than that, nothing less than that. And one can say that for '26, it is a period of testing the waters.

Great. And if I could just follow up on the guidance. I just wondering, what is the gross margin assumption underpinning your '26 forecast about net profit settling, well flat to minus 3% year-on-year as indicated by the guidance?

It is really something that no one can give a clear understanding because all variables are unstable as we go through '26. We don't know the currency. We don't know the interest rates. We don't know how long the war will take or whatever. We have always cleared to the market that when we start guiding analysts about next year's performance or current year's performance, we only give the budgeted number. And therefore, these are not exact numbers. These are numbers that are compromised between various factors that move within a range. If one wants to be more specific, I would say that it won't be unsafe if people reduce the gross margin by 1 or 2 points.

The next question is from the line of Iakovos Kourtesis with Piraeus Securities.

My first question has to do with Balfin Group. You've said you are examining penetration in new markets along with Balfin Group. Would you be kind enough to let us know which markets do you currently examine?

And second question has to do with the possibility to deploy some pop-up stores. I don't know if it will be Romania or other markets. If you could further clarify on this, please?

Okay. First of all, I want to clarify that we are -- we have more work than what we can cope with. What makes interesting the proposal of the gentleman you just mentioned is that he is willing to invest in infrastructure in order to serve new countries. That will be in the north. So it is, let's say, a franchise by trust. It's still a premature effort. But we have signed or we are about to sign a franchise agreement. And to go forward, since we will be having, let's say, benefits without really committing resources or time in that direction. So that answers part of your question.

Can you remind me what was the second part of the question?

Which markets do you plan to proceed with a franchise agreement with Balfin Group? And if you plan to deploy a new model with the opening of smaller stores in some of your markets?

Hang on, these are 2 completely different issues. As I said, this gentleman is going to focus on what we call new northern markets. And he's going to run the operation from A to Z himself, by creating warehousing in China and serving these countries directly. Which countries will start first, which countries will start second, it's a little bit premature to say at this stage.

We have offered to him 4 countries. They have funny names. If you want, you can ask Amalia later to define -- I don't remember the names of these countries. But there are decent countries. And according to him, they are of great interest.

Regarding the pop-up issue, this is, as I said, a new effort that we have started studying for the Canadian market since it is there where we are going to exercise this new concept of, let's say, smaller stores inside shopping centers. And because of this study, most probably, we are going to introduce such stores in all countries where we operate in order to gain know-how and experience in parallel with the effort that we are going to go through in Canada.

The next question is from the line of Fani Tzioukalia with Euroxx Securities.

Just a quick one on my end and maybe a follow-up later. Could you please elaborate on the rationale behind acquiring your leased stores going forward?

The rationale of acquiring stores?

Yes, your own stores, yes.

Yes, because it makes a lot of sense. We don't acquire stores -- any store. We acquire stores that their financials prove that they are a good investment. So owning the property takes out the uncertainty of future negotiations. And we believe that since we are very profitable and very cash rich, it is a no-brainer. We should do so unless we can have, as an alternative, new stores, whether rented or both, which always will be prepared. But usually, they work on the opposite direction.

When the uncertainty is around, it makes more sense to buy stores. When uncertainty is resolved, then it makes more sense to focus on generic growth rather than buy stores. But all in all, the mission statement is one day to own all the stores that are of interest to us and are offered at prices that make sense.

Okay. And maybe one follow-up. You mentioned the 3 distribution centers you're currently setting a negotiation for a distribution center in Romania. Maybe when do you think this is going to be fully operational? Sorry if I missed that already.

And you mentioned also a CapEx of close to EUR 100 million over the next 3 years for this project, is that correct? And could you please allocate that in the window of the next 3 years?

No. What we have said in a simplified way is that part of our CapEx is directed towards new distribution centers. One distribution center is in Romania. I want to bring to your attention that Romania, it's still early stages. We will more or less double our stores in the coming years. So infrastructure should be in place there. And the other couple of stores -- the other couple of distribution centers was; one is in the north of Greece and one is in the south of Greece.

And it is safe to say that between 30% of our CapEx -- between 30% and 40% because it depends how you measure it and how you read this CapEx, will go towards distribution centers in the coming 3 years. The rest will go either to buy new stores or to rent or to start new stores and so on.

So you mentioned in the press release and sorry to insist on that, that you plan to spend around EUR 95 million over the next 3 years. So...

EUR 90 million is for distribution centers, not for total CapEx.

Yes, EUR 95 million in the next 3 years...

EUR 90 million or EUR 95 million, I mean...

EUR 90 million or EUR 95 million, so basically, the CapEx is around 30% to 40% of...

Of total CapEx.

Of total yearly CapEx. So...

Yes.

Okay. Anyway -- okay, okay. So, eventually, the distribution center in Romania will be operational in a year from now? Should we assume that it would be operational in 2027?

We have said that if the deal goes through, we will be -- the distribution center will be operational, not in full capacity in '26. '26 is in Romania, 27 is in the north of Greece and '28, '29 is then in the south of Greece.

The next question is from Maksim Nekrasov with Citibank.

I have a -- to follow up regarding the outlook and the margin guidance, and I understand that the future is very uncertain, but still something made you budget slightly lower net profit despite growing sales. So, I was just wondering if you can talk about the high-level factors that made you budget decrease in margin this year? And what is -- what are those factors related to?

And another question on the competition in Romania, in Bulgaria and Greece. Do you see any signs of increasing competition? And we've seen a lot of talks about action in Romania and expanded to Bulgaria. So any color on the competitive trends?

Let me focus a little bit on your question. When we talk about margin erosion, this is always a parameter that should be taken into account when we budget the year. And if one wants to make it very simple in one's mind, he would say that there is a cost implication of the wars around us. So, we don't really know the outcome of the wars. We don't know when the timing and so on.

We only know that during wars, there is a certain degree of inefficiency, which somehow needs to be put into the system. And otherwise, we may be guiding people in the wrong direction. So it has nothing to do with what you call direct or indirect competition because practically, I have always said that people who understand the JUMBO concept also understand that there is no competition to JUMBO by all these companies that you mentioned, which are competitive. But in a parallel field, not directly with JUMBO.

If one wanted to define who is the #1 competitor of JUMBO, I would say the hypers and the mass market stores. But having said that, JUMBO is a very small player by comparison to the world. And therefore, we work like a margin of error rather than a direct competitor to the dinosaurs or to the lions of the jungle. So yes, there is a cost of war. We call it cost of inefficiency because of the war, because of the various factors. But on the other hand, we also have a lot of benefits out of that because we are a company that has strong warehousing facilities, has positive cash flow, has a lot of money, has this, has the other.

But it will be wrong and not prudent to budget optimism during turbulent times. This is one of the classic mistakes inexperienced managers make where they try to address a problem with optimism. I resent this exercise. When I give the guidance that I'm giving, I want to alert people that almost all parameters that are affecting the bottom line or the top line are under question in today's environment, not for JUMBO, but for the whole industry as a whole, for the whole retail industry as a whole.

And whoever says that he can outguess what is happening today or he is better than Trump or better than Macron or better than this or better than the other, I don't want to hear about it. I am paid to worry. I'm paid to address not only positive implications on a day-to-day basis, but also negative ones. And I have to pre-account for that even if they are not visible yet.

If you want my personal view, which I can say, but after I alert people that 9 out of 10 times I'm wrong, is that better times are coming ahead of us, not worse times. But again, this is a personal view. And usually, I'm wrong.

Mr. Nekrasov are you done with your questions?

Yes.

We will now proceed with any written questions from our webcast participants. The first 2 questions are from Luisa Orsini Baroni from [ ORSA ]. Can you update us on business in Romania? And the second question is on the gross margin, can you tell us the impact of franchise versus the core business? Are you investing in gross margin to be even more competitive?

Okay. If one reads basic analysis of the Romanian market, one will read that the total market is in a recession mode because of unresolved structural problems still existing in Romania. If you ask me personally, I have great confidence in Romania. I think it's a nice country. It's a beautiful country. It's a well-structured country. And sooner or later, they will resolve these problems that they have. So we don't lose even 1 second of our sleep regarding our future presence in Romania. And we have indicated that whatever micro environment may say, we are committed to develop this market to its full. So this is not something to be debated.

If one ask us about the cost -- the margin that keeps cropping up. I don't know why. One would have to answer what would be the timing of the war, what would be the cost of the transport cost and things like that. If you focus in what other people are saying, problems may be resolved in 1 day or 1 week or 1 month or 1 year or generation. Nobody knows at this stage.

But again, that doesn't matter because if a temporary environment turns into, let's say, unpleasant but stable environment, we would adjust pricing accordingly in order to take account of this. I mean, we are hedging our bet with products. And therefore, we don't have the same worry that an analyst has because practically speaking, we are competing with other people who face the same problem with us. And I have mentioned before, and I'm mentioning it again, what I call the penguin effect.

We don't want to be the first on the water because the probability of being eaten by the hungry whales is very big. We don't want to be courageous or whatever. We want to be dumb and stupid and fall into the water once the whales are well fed. So I don't know why this thing of margin comes back and forward. I mean, for me, it is a -- let's say, an intellectual conversation that is not substantiated by JUMBO'S history in the last 40 years. I mean I believe that 40 years is enough for somebody to understand how JUMBO is working. We don't buy our turnover. We sell our products, but we don't want to bet against a wrong direction of the market. That's all.

The next question is from Gregory Randolph with Atopac Partners. You have been incredibly successful and had high market share in your core markets. Sometimes this can lead to complacency in retail as you are beating local competitors. How do you stay paranoid, well invested and ahead of the curve in such an environment?

I don't know what exactly is the question. We cannot apologize for being successful. But definitely, that doesn't come by accident. It comes by a coherent, simple-to-execute strategy. which, again, I pre-mentioned, is not based on driving the company like a rocket, but like driving the company as a jumbo plane that lifts, lands and makes round trips all through the year.

So definitely, complacency may be one of our biggest enemies because we are very successful for tens of years. But we love what we are doing, and we want to continue doing it. And because we try to make it more simple, despite the fact that we are gradually aging, we are still in a position to cope with the work needed to do so. Retail is detail, and there is no bigger and more dangerous competitor than your bad self. So I wouldn't worry so much. There are no signs that something is going wrong.

The next question is from Johan Schwartz with [ MSC Invest ]. Last year, JUMBO was willing to buy back share up to a minimum price of EUR 27.20. Currently, the share price is below that threshold. Why are you currently not buying back shares?

Because we believe that we can employ our capital in a more productive way. The option to buy shares is there, but it's the last option, not the first option. As I said before, personally, I feel optimistic about the future. And if one reads our guidance and our plans for the next 2 to 3 years, sees an aggressive investment plan based on solid numbers, not on wishful thinking. And therefore, the option of buying back shares for me is not appropriate during the specific time period.

The next question is from George Lampiris with powergame.gr. Tell us a few more things about your expansion in Canada. When are you going to start?

We were supposed to start this year, but we do not control this process ourselves. We will expand through a franchisee. And this franchisee happens to be an Israeli one. And Israelis now are at war. So thank God that they keep working. So they fight with one hand and with the other one -- the other hand, they work. They need to face some calm before they actually refocus as a nation towards expansion and the rest. I am very proud of my partners and what they have done despite the impossible challenges that they face because of the war. Canada is there. We are going to be there. And thank God, we are going to do as well as we did in Israel.

We have a follow-up question from Johan Schwartz with [ MSC Invest ]. Does all the merchandise destinated to franchise stores move through your warehouses in Greece or in same merchandise shipped to those franchises directly from China?

As I said, we control the distribution of our merchandise through our central warehouses. Nothing is shipped directly to anywhere. But having said that, as I said before, in the future, some countries which are not in the system today will be dealt through a franchise agreement where the warehousing will be in China and not in Greece.

We have another follow-up question from Johan Schwartz. Will the merchandise for Canada also move through your warehouses in Greece? Or will this merchandise be shipped directly from China to Canada?

Definitely from Greece.

The next question is from [indiscernible]. Currently, are there any problems in the supply chain? Comments on freight, and what is the current policy of the group?

If there is what, I missed the question. With the...?

Supply chain.

With the supply chain. The answer is that because of the cost of the petrol, there is a transport surcharge on all transported goods from around the globe. For the short run, we are splitting this cost together with our suppliers because we both feel that this is a temporary implication, and it should not affect prices. Therefore, because of the strength of the euro, plus the fact that suppliers are willing to participate in this surcharge for petrol costs, we are still in balance.

If one asks whether there are implications because of the war, the answer is evident, since no container ship passes through the Canal, the Suez Canal. So they have to go around Africa, and there is a cost implication because of that. How much of this is justified? How much is, let's say, self-serving for the interest of what we call logistic companies, you can be -- you can make your own judgment on that. But for the time being and because of the war, container ships have to go through Africa.

The next question is from Labis Michalopoulos with Lab Michalopoulos with N. Chryssochoidis Stock Brokerage. Please comment on impulse spending of consumers, the JUMBO concept short of speak versus launching with an e-shop in Turkey.

We don't have a clue what goes on in Turkey. We are currently investigating the mechanics and the realities of the place. So, all in all, you can only have an impression from me and not a real experience guidance. The impression is that Turks are willing to pay more for the same product a European pays. They make a lot of children.

And of course, despite the fact that Turkey is a very big country, a percentage of the population is only involved and active, let's say, in this part of the -- what we call European or international products. But as I said, for us, it's a plus business for the time being. It is -- it may turn into something else, but it's too early in the stages in order for us to lose any sleep. We are more involved with the mechanics and infrastructure and programs and logistics and business partners and so on. No tangible numbers are still on the table.

The next question is from [ Horn Roee ] with Top Alpha. The e-commerce platform, especially in Bulgaria, looks quite outdated compared to competitors. Do you have a time line for digital overhaul?

Definitely. As we go through, we are overhauling that. And we are not entering Turkey without this overhaul in place, and definitely, that will benefit Bulgaria as well.

The next question is from [indiscernible] How long do you plan to stay on the forefront of the battle?

A good question, but you will have to ask God. I don't plan to retire. That will take me out of the company legs first.

The next question is from George Tsilis with Alpha Finance. First question, how do you prioritize competing uses of capital?

We -- as I said, we have 3 options. The first option is new stores, either rented or bought. Then we have the second option, is to buy the stores that we already rent. And the third option is to return money to the shareholders because the first 2 options are not very attractive. Of course, that doesn't have to do with the day-to-day where, let's say, a certain amount of capital is allocated for store preservation as well as the new DCs and more generic infrastructure. So, to repeat again, solid growth or generic growth. Then second option, buy existing stores if they are offered to us at a competitive price. And third, if we are not very successful in either 1 or 2, return more money to the shareholders.

The second question. With Q1 sales growth already tracking pretty well and hearing you being optimistic for the future, what is embedded in the second half assumptions that justifies the flat lower profit guidance? Are you essentially guiding for a significant H2 deceleration?

I have answered this question by saying that if you are an optimist and you try to grow quicker in a difficult environment like the one all the world is facing. For me, it's the least of my options. If we are lucky, we can get better numbers than the ones we have budgeted. But I wouldn't bet on that. I'd like to take my time in choosing how the game will be played.

JUMBO is a company with a mission statement to be around 800 years from now. So to talk in terms of weeks or months or whatever to me, is meaningless. Here, we are talking about quarters or things like that, but everybody understands that the world is not in its best shape.

The next question is from [ George Fasseas ] with Alter Ego Media. The first question, what is the biggest risk to JUMBO'S business model today, rising supply chain costs, intensifying competition or shifting consumer behavior?

All parameters have a certain amount of risk involved, but none of these parameters is life-threatening. If one needs to worry, it is not people being contempt with what they are achieving. We are fully alert to the fact that if we are as good as last year, we are dead. We have to be better every year despite the fact that there are years that may not be as good as we would have liked. But during JUMBO'S history, we have gone through periods like that for many years. And so we have a track record to really back up what we are saying. I was born a chicken, and I plan to die a chicken.

The second question, if you were starting JUMBO from scratch today, what would you do differently?

I really don't know. It's too intellectual for me to answer this type of a question, because I never had this luxury as an option. So, as I said in previous presentations, I'm the fat guy hitting the drums, so the crew can row stronger as we head for the finish line. No luxury for cruises.

The next question is from George Athanasakis with Pantelakis Securities. First question, coming back to Turkey, do you think that you have the logistics and distribution in place to serve such a huge market with your online venture?

I didn't get the question. What is exactly the question?

It says coming back to Turkey, do you think that you have the logistics and distribution in place to serve such a huge market with your online venture?

First of all, the e-commerce is our own venture. We are not doing it with any strategic partner. And we are utilizing idle resources or capacity that is there in place. Turkey is a very, very difficult market. And one needs a lot of preparation if one wants to involve himself on the field. It's a little bit like the war today. I mean it's one thing bombing from United States and another thing landing in Iran. We will try to keep this option for the next generation unless it's absolutely necessary.

The second question is, what is your marketing budget for this venture?

As I said, in '26, it's next to 0. We plan to fly under the radar and measure things in a relaxed way. We don't have numbers in our budget that reflect the activity that we plan to introduce in Turkey.

The next question is from with Xanthi Gounari with Capital.gr. I have one question, if I may. Could you give us a sense of what percentage of group sales currently comes from e-commerce? And what is the target over the next 2, 3 years?

The e-commerce activity of JUMBO is a margin contributor, complementary service. It is not a service that we offer in order to compete with a JUMBO store. So we would be very happy if in each country, the e-commerce activity relates to a couple of JUMBO stores.

Thank you. Ladies and gentlemen, there are no further questions at this time. I will now hand back over to Mr. Vakakis for any closing comments. Thank you.

Thank you for listening to me. As I keep alerting people, our mission statement is the one of a Japanese company. We want to put in place all the fundamentals in order to be around for generations and not to create an exercise that has a finite potential. That's why we feel strange when people keep asking us about margins or pace and things like that.

I would say that, that doesn't make justice to the efforts everybody is making at JUMBO. At JUMBO, we focus on productivity. But when we say productivity, on all aspects of productivity, whether they are short term or long term. And we try to stay constantly stupid in order to end up, let's say, successful, not against perfection, but against our competitors. And during good times, but also bad times, and thank God, we had a lot of bad times in Greece in the last 10, 20 years, we have managed to prove that our strategy works.

It is not a strategy in question. Nobody really questions our strategy, except some analysts who want to promote another company or something like that. They are free to do so. But one should ask companies like the ones I've just heard, what is their current valuation? Are they growing or slowing?

And I want to leave it there because really, as I said before, we are only interested in what we are doing. What other people are doing, the better they do it, the more we can profit from them because we can get their best practice and duplicate it. Thank you for hearing me and good afternoon.

Ladies and gentlemen, the conference has now concluded, and you may disconnect your telephone. Thank you for calling, and have a good afternoon.

Ladies and gentlemen, thank you for standing by. I'm Constantino, your Chorus Call operator. Welcome, and thank you for joining the Jumbo conference call and live webcast to present and discuss the first half 2025 financial results. The conference is being recorded. [Operator Instructions]

At this time, I would like to turn the conference over to Mr. Apostolos-Evangelos Vakakis, Chairman of the Board of Directors; Mr. Polys Polycarpou, CFO; and Ms. Amalia Karamitsoli, Head of Investor Relations.

Ms. Karamitsoli, you may now proceed.

Thanks, Constantino. Good afternoon, everyone, and thank you for joining our call today. I will walk you through Jumbo's performance for the first half of 2025, highlight the main operational developments and then to share our outlook for the rest of the year.

In the first half of the year, Jumbo sales grew by 8% reaching EUR 497 million. On a comparable basis, EBITDA increased by 7% to EUR 165 million and while net profit increased by 5% to EUR 117 million. Our gross margin came at 54%. This represents the strong growth franchise sales, which as you know, carry a lower margin than our own-operated stores. At the same time, our net cash position remained very strong at almost EUR 318 million. CapEx during the period was EUR 14 million.

Let me also highlight the key steps we have taken so far. In March, we distributed EUR 0.4667 per share to our shareholders and EUR 0.50 share in July, underlying our commitment to return value to shareholder partners. We also opened our second store in Timisoara, Romania, further strengthening our presence in the market. In June, we launched our online store in Bulgaria, marking another important milestone to our digital expansion. In August, we completed the cancellation of the listing and the listing of 1.25% of our total shares. Year-to-date, we have also bought 2 leased store in Greece.

Looking at the regional sales growth, which was up 9%. Cyprus was up 7%, Bulgaria by 2% and Romania up 8%. Franchise sales grew strongly by 52%, reaching EUR 38 million while e-commerce sales accounted for 2.3% of our total group sales. Our budget for the year is based on scenario that sales will grow around 8%, the Christmas season is expected to play as usually a decisive role. Other things being equal, our net income to flirt with the 2024 organic level. CapEx for the year may end up below EUR 60 million. Our dividend policy remains unchanged, 1/3 of the consolidated profit with potential of additional payouts depending on market conditions and cash reserves.

At the same time, we continue to invest in the future, modernize our ERP system, strengthening our cybersecurity, introducing new AI tools. We also plan to add 2 distribution centers with a total investment of EUR 60 million to be completed in the next 3 to 5 years. Going forward, through steady steps, the group aims to open another 2 new stores per year, adjusting the pace of expansion to the conditions of each market. At the same time, we further strengthening our strategy by acquiring stores that are currently operated under lease agreements.

To conclude, Jumbo continues to operate from a position of financial strength. This allows us to invest in growth, expand our network and at the same time, return value to our shareholder partners.

Thank you all for your attention. Mr. Apostolos-Evangelos Vakakis will now take your questions.

I'm all ears. Good afternoon.

[Operator Instructions] The first question comes from the line of Fani Tzioukalia with Euroxx Securities.

A couple of questions on my side, please. First of all, could you please provide some color on the gross profit margin for the first half? And how do you see this evolving in the second half? Let's take it question by question so it's easier for everyone to follow.

Your question is not very clear. What exactly are your asking?

Okay. My question, let me rephrase then. So my question is that, could you please explain the gross profit margin drop on a year-on-year basis for the first half of 2025? And what do you expect towards the second half of the year?

Who knows is the answer. I mean, we have given the actual number for the first part. And we have indicated that theoretically. The second part will make the margin slightly improved. And this is subject to market conditions that change every day.

Okay. And behind the first half of 2025, any color on the reason why the gross profit margin has been weaker on a year-on-year basis in the first half?

It's weaker because of the market conditions. I mean, we had events like the increase of the VAT in Romania. We have events like yesterday that one plane fall about a few years from our store in Eilat in Israel. And so we live in turbulent times. And as a result of that, it is more than logical to expect also some relative turbulence on our gross margin as well. This is in line with what we have said from the beginning of the year, as we have guided our business partners about the realities of the conditions we currently face.

Okay. Regarding my second question then, could you please provide some color on the inventory buildup going forward? We saw some increase in the first half. And how do you see inventory building up going forward? And also, do you see any change in the product mix that is being sourced as well?

The idea always is to defend the gross margin. And as a result of that, one way to do so is by looking more through into the product mix as well as new opportunities. But as I said, relative marginal fluctuations as we go through such a turbulent period, I believe it is within what we call margin of error.

Okay. My third question would be with regards to your network rollout targets. Could you clarify the target in Romania because in yesterday's press release you indicated one store per annum and this is in contradiction with previous press release for a double network in the next 8 years. So can you please clarify on this deviation?

What we have said and what we are trying to be aligned with is that we expect 2 to 3 stores per year as a rollout for the group. This may change for -- from year to year, from country to country. And this is the result of many implications that we have to deal with. So if, for example, in a country like Romania, it makes practically more sense to go a little bit slower due to the fact that there are many inherent problems short term into the country. We speed up another story in another area. But all in all, we are there to stay in Romania. We are doing deals every day. And we are rolling stores in line with our general plan. This cannot be questioned or interfered, but the timing varies.

Yes, please allow me to quickly quote a press release dated on September 9 of this year that you currently operate 20 stores and 1 online store in Romania, while the strategic goal for the next 8 years is to double the store network. I'm referring to this specific comment dated September 4, which is 3 weeks ago.

This is what we said. What are you saying? I don't know.

No, no. In yesterday's press release, you're indicating 1 store per annum, which is contradicting a press release from the company 3 weeks ago. But -- if you can provide some color on that.

Our view is when we talk about the future, the maximum is 18 months, not 8 years. And therefore, it is more than fair to indicate that we are going through a period in Romania, but it makes more sense, for example, to buy stores rather than open stores. While in other areas that are doing better, it makes also sense to open stores rather than wait for a little bit later. But all in all, we are not -- I don't feel that we are deviating from our plans as we go forward.

But I have to bring to your attention the vagueness of the international environment. I personally have lost contact with what goes around in the world. I really don't know what is the issue with tariffs, whether they exist, whether they don't exist, whether they have been postponed, whether this, whether the other. So it's -- our operation currently is from day-to-day and week-to-week. If one wants to start addressing months or years, it is something that he may be exposed into something that he said and he shouldn't have said it. But all in all, we are giving a picture for the years to come. And this picture will not change unless the world changed.

Okay. And where is the next store opening in Romania? In which city?

Pardon?

In which city is the next store opening in Romania? Is it Baia Mare or where should we expect that?

Yes, Baia Mare, probably would be the next one. And then we have [ Cluj ]. Currently, we are negotiating in many other locations. As I said, this is an ongoing exercise, but I must repeat constantly that we are not buying our turnover. We are directing generic growth as we go to the future where we feel it is best-suited.

Okay. And one last question from my side. And how do you see competition in Romania evolving with -- in terms of Action Group and other competitors as well?

Again, can you repeat the question, Fani?

Yes. Sorry, yes, my question is how do you see competition in Romania evolving? And what is your target versus others? What is the strategy around that, competition in Romania?

Romania as in country has slowed down because of political turbulence there. The size that we have is not so big in order to have anything to do with competition like that. We are way -- we have a long way to go before we start involving ourselves with worries of this nature.

So you don't feel any effects from the competition for now -- at least for now?

What we face in Romania, also the competition faces. It's no secret that Romania is going through some turbulent times currently because of the political situation there. And we only had announcement 1 month ago about the VAT change, about the squeezing financing and the rest. Yesterday, I just happened to be in Romania. I've heard that the next Prime Minister, who comes from the left, will take back the VAT and will take -- will distribute money to people, things like that. So I think we really don't pay too much attention to what people are saying. My feeling is that definitely better times will come for Romania. But when that would be, is anybody's guess. As far as we are concerned, we are still at the beginning of an effort, not at the end of an effort.

Okay. And the last one from my side, apologies for taking so much time. Can you please reiterate what was the net profit guidance for 2025?

The what?

The net profit indication for 2025?

We have indicated in our announcement, but we are working very hard to par the number to last year's number for organic, of course, unless we have another catastrophe in one of our stores, and we can make something in addition to that. But the odds are that to improve on last year's profitability is a very, very difficult exercise. It's not impossible, but one would say that we have a 49% chance of achieving that and not a 51%. And as a result of that, we have to say the reality as we read it and as we interpret it, and everybody must make his judgment accordingly.

I keep repeating on all our encounters that we always give our budgeted numbers as guidance. And theoretically, this is a little bit conservative, but as conditions continue to be vague and deteriorating, it's anybody's guess whether this traditional approach is very meaningful or not. In a few days, we will announce the September performance that includes also the back-to-school period. And then we have to run for the finish, which is December period.

Which should be in the range, I think it accounts additionally for around 25% to 30%, let's say, of your total turnover, is that correct?

I don't know, I am not very good at maths. Whether it's 20% or whatever, I really -- usually 17%, I think is December, up to 4% for November and October, 8% and 17%, 25%, 26%, 27%, around that.

The next question comes from the line of Stamatios Draziotis with Eurobank Equities.

Yes. Can I take you back to the gross margin question and the drivers that led to the decline in H1. I mean, we have several things that might have affected like pricing decisions, product mix, or the franchise mix. And actually, you mentioned the latter, but given that franchise sales are still a very small part of group turnover, I would have thought that the impact there is limited. So could you maybe elaborate on to what extent each of these factors led to the gross margin decline, please?

We have given this information in our announcement. And as a result of that, everybody can make his math on that. To repeat it once more, I have difficulty to understand what exactly is the purpose. We have provided all this information directly or indirectly to analysts so they can do the numbers in a better way for them.

That's fine. That's fine. Can I ask another question? Because in your statement, you actually highlight that the benefit from the depreciation of the U.S. dollar will become visible in H2. Yet, at the same time, the message around full year profitability, which assumes which points to a decline -- actually points to a decline in H2. So you say if sales -- the sales trajectory remains at plus 8%, then profits will be at par at least year-on-year. But this actually points to a decline in H2 profits, although you will have the benefit from the depreciation of the U.S. dollar. So could you maybe help us reconcile these 2 messages and explain what -- how you're thinking about the bridge from H1 to full year, please?

To think what? I'm not very sure what your question is. If you ask analysts, I would say, 51% say that the dollar would be weakened further. So that's a good sign for us. And that will help the gross margin as we go forward to the end of the year as well as to the first part of next year. At the same time, I have also heard Trump's suggestion to the world to put tariffs on China and India and all the rest of the world because they buy cheap petrol from -- so really, it goes beyond that.

If I could participate in this sort of complicated world in a productive way, I wouldn't be selling toys. I would be doing a better thing in my life. We really believe that unless we have something which is unexpected or mind blowing, which is anybody's guess what will be the next step, we are as good as any to support the numbers that we have already indicated. But as I keep saying, I am not the one who makes the decisions. We are just in line with the decisions taken by others.

[Operator Instructions] Ladies and gentlemen, there are no further audio questions, and we will now move on to our webcast questions. The first webcast question comes from Iakovos Kourtesis with Piraeus Securities and I quote, "Can you please clarify if we will have any store openings by year end?"

We have store improvements going through that would add sale areas at the expense of warehouse areas, but no further store opening for this year.

Second part of my first question is, and I quote is, "Do you have any update on Fox Group's plans to open franchise stores under Jumbo brand name in Canada?"

Yes. The Fox has indicated their interest. We have negotiated a contract. And according to their plans, they believe that they can make it possible at the end of '26.

Third part of the first question, and I quote, "Can you quantify the annual amount that you will save in your OpEx from the acquisition of the 4 leased stores in Greece this year?"

If I can quantify what?

Can you quantify the annual amount that you will save in your OpEx for the acquisition of the 4 leased stores in Greece this year?

The answer is no. We really don't go into such detail. The process is very simplistic. During crisis, we try to obtain the best possible price. We can buy an asset. And hopefully, that will help us reduce our OpEx. But by how much depends how many -- when deals would be completed, as an average, how much. We don't over analyze this. I think it's counterproductive in my mind. It's a direction what matters, not so much the actual numbers that make that difference. Plus, of course, our long-term strategy is that we want a well-capitalized company that fully owns all its stores. And practically, that will help us be alive for many, many years to come. And if that is not possible to be alive when other people are dead. We would be the last to die.

Fourth part of the first question, "When exactly did you plan to commence the construction of the 2 distribution centers?"

The first one, we will cut ground in a month or so. On the second one, we are still negotiating the price of the land. Distribution centers is an investment towards improving our productivity. And as a result of that, it is, let's say, an investment worth executing. Really, we don't lose too much sleep on that. Theoretically, we will not enjoy the services of the first new distribution center before the end of '27. And most probably the second one would be one year later. But we will be constructing both in parallel with a gap of, I think, 9 months, the one before the other.

The next webcast question comes from George Athanasakis with Pantelakis Securities, and I quote, "What after-tax margin do you make on franchise sales, including the royalty fee you are getting on their sales? Do you extend any credit to them? Do you invest any capital at all in franchises?"

The idea is to have, what we call, zero risk, although such a notion does not exist because as franchisees grow, we need to grow our infrastructure to support them, but we charge them accordingly. And theoretically, we can shrink if this infrastructure is put into question for reasons that have to do with the country that we are dealing. We don't lend money to anybody. We only get cash for it. And the idea we have is that unless Europe finds its footing, we really don't have, let's say, an easy source of income to help us manage the numbers of the Greek company because the Greek company is faced with many challenges, like, for example, that we don't have an improvement in the birth rate or a visible improvement on the disposable income. Therefore, everything that we can do to keep us healthy, but always with relatively very close to zero risk, we will take it. But we don't really see it as anything more than that because we are not in control of this process ourselves. And that's the reason we are franchising it. We don't want to be deviated from our course of action.

The next webcast question comes from [indiscernible] and I quote, "What proportion of the sales are from franchisees? In other words, what proportion of the volume and sales comes from franchisees."

We have provided this information. One can read it in the report we have taken out. Out of hand, I don't have this information.

The next webcast question comes from Gregory from [indiscernible] Partners and I quote, "When you say net income organically, you mean excluding the insurance proceeds, why would that be flat year-on-year for the year when it was 5% in first half and the benefits of currency should be stronger in second half?"

Because it is common knowledge, I think, that people should not be optimistic about the future. People should be really cautious about the future. And that's the reason we always take a very cautious approach. That doesn't mean, of course, that we are not optimistic because we remain optimistic. We do understand that we have to grow. We do understand that we have to increase our footage on new stores and things like that. But during turbulent times, like the ones we are going through, optimism may be a fatal disease, while pessimism is a much more prudent approach. I keep repeating to people that we have to be very, very, very cautious on every decision we make in order to be able to support what we have promised. Now if we can -- if you can assure us that we will do better, you would not take it from my mouth this. It may or it may not, but the probability is 49%, that it will happen, not 51%.

The next webcast question comes from [indiscernible] and I quote, "How can we imagine the difference between gross margin of franchise and the ordinary shops?"

On franchisees, we make 3 or 4 points on the turnover with franchisee. Thus, we charge them at cost for handling their orders and internal cost, which contributes to our overheads as well. This is what we make out of a franchisee. So practically speaking, a franchisee is a contributor to our overhead bill. It is not a vehicle to reach it.

The next webcast question is a follow-up question from [indiscernible], and I quote, "Can you elaborate on your hedging policy? And what is the likely evolution of profitability for second half and 2026?"

We don't have a clue. We don't have a clue if you give me what's the cost of transport would be, if you give me what the exchange rate would be, it is -- it would be very helpful to us. But since nobody knows that, what we said is that currently, we have tailwind on these cost parameters. But let's say, in the future, either in the near or longer than the near -- in the mid- or long term. We may also face a headwind as well. If we look at it statically, theoretically, we are in a better situation than what we were a year ago.

The next webcast question comes from [indiscernible] with [ MSC Invest ], and I quote, "Why did the inventories rise so much?"

Because conditions have turned in our favor. And as a result of that, the more we have product and the less we have money, we can hedge better our future results. The problem is that we were near capacity. We cannot buy more because we cannot handle it. But if I was given the choice, I would have bought double or 3x, but we cannot support this desire. We have to balance many parameters in order to bring something that makes sense. So a growth in the region of 20% or whatever is, I would say, the maximum safe growth without really putting into jeopardy a fundamental parameter or a hidden treat.

The next webcast question comes from Maksim Nekrasov with Citi and I quote, "Do you plan to pay dividend in second half 2025?"

The answer is no. We cannot do all things at the same time. What we have said is that we are beefing now. We have paid 2 dividends. We have indicated that it is our strategy to pay 1/3 of our total profits in dividend the years to come, average year after year. If conditions are bad, we buy all stores. If conditions are good, we may pay a little bit more. But as I keep saying, I have difficulty to understand how conditions will be good. In order to be good, something must change, which is productivity. Everybody tries that, let's say, decisions that are taking centrally from government do not help productivity. So we don't have tailwind. We have only tailwind because of the currency and the transport cost. But this made them against us very easily. We have a very good cash flow situation. But this may change if we face tariffs or things like that.

Really, it goes beyond our capacity to make a guess or to take a bet. As we stand today, of course, since we have tailwind, we are buying as much as possible. And we are hedging, let's say, the year-end results and the first part of next year's results. Beyond that, it wouldn't be very prudent to pre-anticipate things because conditions may get even better or may get worse. So it's a wait-and-see situation.

The next question comes from Zara C. with Lazard Asset Management, and I quote, "Please, can you further elaborate on why macro weakness in Romania and Israel is affecting the gross margin? And are you investing in price? Or is the mix less favorable because, for example, consumers are down-trading?"

As I said, the government in Romania increased the VAT by 2 points. So we had an impact on our gross margin by 10%, practically. And on top of that, it has rebalanced the various VAT on products against the consumer. Why they have done that? Hopefully, they know what they are doing. Only that affected our gross margin, all other things equal to -- during a turbulent time like in Romania to attractively about the future. I don't recommend it to anybody to do so. It is the first penguins that are eaten by the whales that jump into the water. Once the whales are well fed, then of course, penguins like ourselves would jump also into the water, but later, not -- we are not having any sense of heroism into that.

And if one suggests that one should adjust prices upwards in an environment that has not consolidated recent developments in Romania, it's not a good advice. Bear in mind that we are making a huge gross margin, okay? So to be greedy, one can have dear consequences. So better be stupid than sorry.

The next webcast question comes from Will James with Guinness Global Investors, and I quote, "What was behind the very strong growth in sales to franchisees in the first half 2025?"

The flow of products has improved into our warehouses, allowing us to grow, ship more to franchisees without this affecting our core business. There's no magic to that. It's a byproduct of improving conditions in the transport equilibrium.

The next webcast question comes from Ali Amiri-Garroussi from Polar, and I quote, "You are guiding 2025 to March 2024's net profit number. Should we be looking at 2024's net profit, including the insurance receipt of EUR 320 million, or excluding it, EUR 310 million of the targets?"

Excluding. We said that we will compare apples with apples. We cannot compare a windfall that happened because of an accident. But let's hope that we may have another accident this year or two accidents and make more money, but not yet.

The next question comes from [ Gregory ] with [indiscernible] Partners, and I quote, "I may have misunderstood, if so, sorry. You mentioned the time is not right for opening as many stores in Romania, but maybe buying stores. Do you mean buying the real estate of the stores you already own or buying stores from existing stores and renovating them to be Jumbo stores?"

What we practically say is that we don't leave an opportunity to pass. If one of the rented stores is offered to us at the price that makes sense and the price that makes sense is that it contributes towards overheads. So less rental costs. So practically more contribution towards inefficiencies on the operating level.

On top of that, definitely, since we have a growth plan for the future, we try to locate locations, whether that's our building that we will renovate or pieces of land. But again, at the price that makes sense because the long-term expectancy of things to happen is that it's not in our favor, this thing. So we really have to utilize opportunities in order for us to make a move that makes sense and not having to buy our turnover, even if buying our turnover is cheap due to our cash flow availability. I keep saying to people that we act like we are a very poor company. We don't exercise our strength by putting into the test our liquidity.

The next question comes from Vitalie Crestianov from Global Alpha Capital Management, and I quote, "Could you elaborate on your vision for the franchising business, specifically the scale and size you aim to achieve, the markets you see as most attractive? And how the economics work from Jumbo's perspective?"

I said and I keep repeating that this is just a plus business, which contributes to our overhead costs. That doesn't make sense to go beyond that because it is an operation which is not controlled by us. It is controlled by third parties in third countries where we have limited control. So for me, we have to balance our need for additional income, but at the same time, not at the expense of increasing our risk. The future of Jumbo is not through franchising. It is by generic growth in countries that we involve ourselves directly.

The next question comes from Maksim Nekrasov, and I quote, "Should we expect dividends in line with free cash flow going forward? Or you plan to increase cash balances going forward?"

In my -- in the back of my mind, I've said before and I repeat it all the time, we try to form a company that will last many, many years as we go forward. To do so, at the end of this exercise, we need to own the stores that we operate on. We need to keep having relative generic growth and at the same time, hold a lot of cash in our hands in order to sustain and foresee favorable -- unfavorable events if they come. So if one says, are we profit maximizers or profit satisfiers, the answer is that we are profit satisfiers. We want to run this company like a plane and not like a rocket. And this will not change as long as I'm running the company. We have been inspired by Japanese companies that have survived both World Wars very easily. And by studying them, we have found out that they were cash rich because if things go bad, money is a very important factor to stay alive. And we will not commit funds just to have, let's say, marginal improvements in our short-term performance.

The next question comes from Shipra Agarwal from Goldman Sachs Asset Management, and I quote, "Can you talk about competition from Chinese marketplaces in your markets? And what is your strategy to design your business?"

Our belief is that competition is a good thing because it awakens companies to do better and improve their productivity. So the more competition, the better, not the worst as long as companies are alive and they have not done mistakes -- strategic mistakes in the past. Jumbo has proven over the last 30 years or whatever that this is a parameter that we very strongly protect. And there may be unfair competition coming out of China on some aspects of our business like, let's say, companies like [Temu or Shein ] or whatever. But I'm sure that this has been detected both in the States and Europe.

And soon, there will be measures to counterbalance that and force them to compete at arm's length with the competition. We don't worry about competition, which is fair and in favor of the consumer. We only reject competition, which is unfair, that they take advantage of loopholes. But from my experience, sooner or later, these loopholes will close because if they don't close, then they may have an impact, but I don't believe that countries will stay idle to that.

The next webcast question comes from Constantinos Zouzoulas with Axia Ventures Group, and I quote, "First question, regarding franchisee business, is there any -- is there an optimal number of franchisee stores Jumbo can support on the current strategy?"

I would say less than more. Hopefully, we want our infrastructure to support our growth and not franchisees growth. But for us, it's a hedge because if for whatever reason, our growth is not as strong as we would have liked it, then we can ship more to the franchisees.

Second question, "Could you remind us the current route of products from China to Greece?"

What?

Could you remind us the current route of products from China to Greece?

The route, you mean?

Yes, yes, the route.

The Suez Canal has not opened for container ships. It may open today or tomorrow or in a month or in 1 year, it's anybody guess. But definitely, one day it'll open. As we see today, it is not such a big problem because there is overcapacity of ships serving a Spartan demand. And therefore, let's say, it helps everybody to relax a little bit. But I'm sure market conditions will change in the future. The Suez Canal would be given back to the ships -- to the world routes. And as a result of that, time spans would improve. On average, today, we have almost 50 days, but we have to wait for transport period from China to the Mediterranean, for example, as they have to go through Africa.

The next question comes from [indiscernible] with Taro Capital Management, and I quote, "Could you elaborate on Romanian VAT increase in gross margin impact? And from what you are saying, you are not transferring these costs to the end consumers, even though it -- this is, in fact, a consumption tax. What are the main factors that limit Jumbo's pricing power in Romania?"

All costs at some stage need to be passed to the consumer. Otherwise, the company would face problems. But as I said, retail is not a proactive business. It's a reactive business. The example I mentioned with the penguins. You don't jump first to balance your act. The later the better.

Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to Mr. Vakakis for any closing comments. Thank you.

If I want to make one general comment, I would say that we remain optimistic, but at the same time, very, very cautious not to have a cost out of this optimism. So although this sounds a little bit as too much of a political position, we have to find balance in this act. In my view, and if we talk about the very short term, which is the period up to December, a feeling we have is that as we are today on the 24th of September, we are a little better than what we were yesterday. But September 25 or 26 could be something different that we find out from the news. So we don't really want to sell the company or whatever.

I'm really getting a bit suspicious why we are the only company around that says the obvious, why all other companies don't see part of the risks currently circulating around? And by saying the truth is this a good thing or a bad thing? And I have always raised this philosophical question. And the answer is that the truth takes you longer and helps you really focus on your business than anything else.

So I want to finish today's presentation by saying that we don't have to say anything more than what we have said already and have published already. And there is no hidden element in what we are saying. But as a personal view, of course, I'm a pessimist myself, things are not as we have liked them to be irrelevant of the fact that for one more year, we may be proven wrong. I don't know if I'm confusing people, but this is how I feel and I have a platform to express it here that people should really be very careful, but not for us, for the world as it evolves. For us, we are as good as any. Thank you very much, and good afternoon.

Ladies and gentlemen, the conference has now concluded, and you may disconnect your telephone. Thank you for calling. Have a good afternoon.