Almacenes Exito SA (EXTO) 2021 Q2 法說會逐字稿

Welcome to Grupo Éxito's Second Quarter 2021 Results Conference Call. My name is Hilda, and I will be your operator for today's call. (Operator Instructions) Please note that this conference is being recorded. (Operator Instructions)

I will now turn the call over to Mr. Ruy Souza, Chief Financial Officer. Mr. Souza, you may begin.

Thanks, Hilda. Good morning, everyone. Thanks for joining us today for the Grupo Éxito's Second Quarter 2021 Results. At this time, I'm pleased to present our Chief Executive Officer, Mr. Carlos Mario Giraldo.

Please move forward to Slide #3 to review our agenda for today. We will cover financial and operating highlights for the quarter and for the accumulated first half, performance by country and consolidated financial results for the second quarter and also for the first half. And then we will get back by the end to be open to the Q&A session. That will be the agenda. Thank you for your attention.

I'll now turn the call over to Carlos Mario. Go on Carlos Mario, please.

Thank you, Ruy, and thank you all for being here at the call. I would like to start in Slide #4 with the main results highlights for the second quarter of this year. I would say it's a very positive result given especially the big challenging times in the Colombian market driven by riots and also by closures of stores during the month of April.

If you look at the results, I would highlight first that consistent margin expansion. We had a margin of 8.3% EBITDA, plus 18 basis points, with a net income multiplying by 4x, which is consistent with the net income increase that we have had in the past quarters. The profitability was driven by our real estate business, our credit card improvement, the retail resiliency. And in retail, I would say, it's innovation and our omnichannel progression that represent the strong part of the performance.

The EBITDA consolidated had an increase of 2.5% during the second quarter. And in the year-to-date, we have an increase of 9.1%. Again, we have a consistent, strong, best-in-class omnichannel share of 12.6% in Colombia for the quarter and 10.5% consolidating, including Argentina and Uruguay.

Very important to highlight our ESG, I would say, consistent role in the societies where we perform where local purchase to producers is very important. Our nutritional support for a generation of 0 malnutrition in Colombia, and we added in the Carulla FreshMarket of 140 in Bogotá, the first carbon neutral store in Colombia. This same store was depicted by the British Institute of Grocery Distribution as the store of the month.

If we go to Slide #5, we speak about sales in Colombia, our principal market. Here in same-store sales, even included what happened with COVID during the quarter and with the riots, we had a same-store sales better than the first quarter with a reduction of 1.8%. That is a gradual improvement that we think is going to be kept in a very positive way during the following quarters as we are looking at the market. If we look at the sales ex COVID effect, they had an increase of 1.1%. And if we compare them with 2019, the increase is up 5.8%.

Going to Slide #6. We look at the performance by each segment of retail in Colombia. All format segments grow if we compare them against the normal base of 2019. It is important to highlight in this quarter, our low segment brands driven by Cash & Carry and by the Super Inter Innovation Vecino stores. We are expecting for the third quarter a strong growth as we are seeing now in July given that stores are open and we expected that they will not be closed, unless there is a big radical change in the trend of COVID. We see an improved consumer confidence, and we see that this improvement is going to be valid, not only for food, but also for nonfood and for our complementary businesses.

Going to Slide #7. I would say that innovation increase for customer experience are and have been and will continue to be at the heart of our business model. Let's speak about the WOW, Éxito WOW and the Carulla FreshMarket, which are within the retail formats that are creating experience in Latin America today. They now represent a material 20% of the total sales of Colombia.

Going to Éxito WOW. In Éxito WOW, we will end the year with 8 new Éxito WOW stores. Today, they represent 24% of the total Éxito sales. Remember that Éxito sales are 2/3 of the total sales of Colombia, and they continue to grow above the rest of the Éxito brand, this time by 5.2 percentage points. We have a potential of other WOW conversions: a full WOW conversions of big hypermarkets, a total 31 stores; and of midsized economic model, which we are piloting at this very moment, we could have a potential of 100 more stores. Definitely, not only in the second semester, but during the following years, we're going to accelerate the conversions of Éxito's into the WOW model given the consistent performance and the high accepting -- acceptance by our customers.

The Carulla FreshMarket is a similar story, but for our Carulla premium brand. This year, we will end with 7 new Fresh Market stores. Today, they represent a 35% sales of the banner -- of the Carulla banner, and they will end the year around 40% representation. Their growth is a 4.8 percentage points against the rest of the Carulla brand, and we have a total potential of 19 more stores to full Fresh Market and 46 stores to midsized Carulla FreshMarket stores.

If we go to Slide #8. It is important to say that one of the highlights of the quarter is the good performance of our low-cost segment. It now represents 18.5% share of our sales with an expansion of 210 basis points against the last quarter -- the quarter of last year. And clearly, it is Super Inter Vecino new innovation popular stores where we have 14 of them and will end the year with 21, which has made the greatest impact in this segment. This time, they are growing 23 percentage points above the rest of the Super Inter stores, and now they represent 21% of the total of Super Inter sales and will land above 30% by the end of the year.

Cash & Carry had a good performance during the quarter, the best performance in many quarters with an increase in sales of 24%. Of this, 2/3 go to end consumer and 1/3 go to professional customers. We are making a focus in the improvement of professional customers as they are gradually reopening their activity, especially restaurants, hotels, cafeteria and Club del Comerciante. It's a loyalty program directed to these professional customers.

In Slide #9, we speak again about omnichannel progression. This is something that the company has made a bet during the last year, and it is paying back. We have a top Latin American retail share of 12.8% in the first half of the year. Total sales near to COP 700,000 million, growing 21% during the first half and for a total orders of 3.9 million orders, growing by 9.2%.

It is very leveled between food and nonfood. In food, the share of sales in omnichannel alternatives is 10.5% and in nonfood of 17.6%. We have had always a profitable focus in our omnichannel progression. Today, the EBITDA direct contribution of these activities is in the mid-single digit. So it's very positive for the company driven by Click & Collect. Of course, it is the most profitable way to serve our customers, which represents now 29% of the total GMV, gross merchandise value, and also the marketplace, which now represents 12% of the total GMV. Omnichannel will continue to be a focus for this organization, and we are investing an important part of our CapEx to have the best-in-class software, technology and logistics.

It's interesting, for example, that in our system, we are working with VTEX. I think we are one of the best practices with VTEX, and we were very happy to know that VTEX went in a very successful way now to the public market.

Slide #10. We speak about what has been very important for our profitability, stability, especially through difficult times. And it is the monetization activities, not only of assets, but also of our customer traffic and confidence. Our complementary businesses had a very strong contribution to margins in the second quarter.

I would start with real estate. Real estate had a very difficult quarter in the last year because it was closed during most of that time and giving discounts to our tenants. This year, you can see that improvement not only in the normal operating activity with our tenants, but also in the real estate development, which has been a permanent activity in the operational strategy of our Viva Malls and real estate business.

Real estate revenue grew by 2.2x and against the second quarter of last year. Of those 2.2x, 0.2x was the result of a real estate sale that we went -- that we made of our development made by our business. This had a marginal positive impact against the last quarter of COP 36,000 million (sic) [COP 56,000 million], as you can see in the footnote of Slide #10.

Occupancy rate improved against December of last year by 20 basis points, and it is now up to near to 92%, which is very positive considering the big challenge that the real estate businesses have had worldwide. I think we have one of the most resilient real estate business with a very positive occupation rate, which we believe will even improve during the following months. We continue to support our tenants not with discounts now because there's no need to give further discounts as they are open. But with online sales, our shopping malls support them, making a center for online sales. Many of them have a weak strategy of online sales, and Viva Online incredibly now represents near to 4% of the total sales of our tenants.

It's important also to speak about Puntos Colombia, our loyalty coalition in alliance with Bancolombia. The total customer base between Bancolombia and Éxito is around 18 million customers. Of them, we arrived to 5 million with [habeas data], that is that they have given us the written authorization to use responsibly their data in a big data business. Puntos Colombia, even though it's a young business, now arrived to a solid high single-digit EBITDA margin by the end of half 1 of the year. It has now more than 110 brands working with us at Ally in the issuance and redemption of points and within the ecosystem.

Our financial retail, which is one of the leading financial retail businesses in Colombia, not only in retail, but against any other card in the country, had a very controlled nonperforming loans of 30 days. So we are [tranquil] there, and it is something that gives us a look -- a good positive look going forward. Our loan portfolio arrived to COP 3 billion, increasing 6.7%. And it is very positive to say that our Tuya Pay, that is the digital wallet competing in the digital wallet alternatives in the Colombian market, which is probably one of the most dynamic of the last 2 years, now arrived to 450,000 users.

In Slide #11, we speak about our ESG activity, our sustainable commitment. Our sustainable commitment is to have an organization, Grupo Éxito, which will give strong financial results, as you have seen, but also strong social contribution and a very positive contribution to the planet.

In children nutrition, which has been the historical commitment of Fundación Éxito, we are benefiting 37,000 children during this quarter, and we continue with the goal to arrive to a generation of several malnutrition in Colombia by 2030 in support to many other entities and, of course, with the national and local governments.

We continue with the local support to producers. We think it's a big sentiment in the world, and Colombia is no exception. And today, of all our fruit and vegetables, we are buying 92% of them in Colombia and 85% directly to producers. We are having similar initiatives in Uruguay in coordination with the national government. We also -- 95% of our apparel is bought in Colombia through a number of family businesses all over the country. This is also a competitive advantage because with some devaluation and with additional taxes that textiles, apparel are having, it gives us a comparative advantage against other competitors in Colombia.

We continue to have a commitment with our plan. Our commitment is that we will reduce in 35% our total emissions by 2023, and we are following under this indicator in a very positive way. We are also, through solar projects in different parts, having the generation of 10 million kilowatt year-to-date, which is positive for the utilization of clean sources of energy. We are the largest Colombian recycling active, not only in retail, but also as compared with the industry. Year-to-date, we have recycled 9,000 tons of cardboard and plastics, and we are projecting near to 20,000 of them by the end of the year.

Éxito Viva Malls are serving the different cities where they are locating as vaccination centers. And during the quarter, we ended with more than 150,000 people vaccinated in coordination and in alliance with health institutions. I can say as good news that today, we are beginning with the vaccination in different parts of the country of our own employees, of those that are not covered by the state, and Éxito is part of a very important and unique private sector initiative to give vaccination to employees that are not covered today by -- because of their age range. That makes us very happy that we are starting that today in a massive way.

I will give the word to Ruy to continue with the financial part and come back with conclusions.

Thank you, Carlos Mario. Good morning, everyone, again. We will continue on Slide 12 to review the main highlights in terms of financial performance in Colombia, where we see an EBITDA margin at 8.8% with solid EBITDA margin gains, 27 bps, when compared to the Q2 last year and 133 bps for the first half, both boosted by the real estate and the Tuya businesses, but also with a strong resiliency in the retail business, as Carlos Mario just mentioned.

In Grupo Éxito, perimeter Colombia, net revenues decreased 1.5% in the Q2, with sales decreasing 2.5% in total stores and growing 1.1%, excluding the COVID effect, with strength that impacted mostly the month of April as we saw during the second quarter. The main leverage that impacted positively our sales evolution were once again the omnichannel and the innovative models initiatives, and this time also the recovery of the low-cost segment. And in terms of other revenues, we see a growth of 21.6% in the Q2, as I said, driven by the recovery of the real estate recurring business driven also by the development of the assets and development in sales activities and also by the financial business called Tuya.

In terms of gross margin, we posted in Q2 a high gross margin, also driven by the complementary businesses. Nevertheless, the retail business had a positive evolution also of 40 bps comparing to the previous year. The total gross margin for the quarter was 23.5%, 112 basis points above second quarter of 2020.

For SG&A, the SG&A grew 4.9% in the Q2. It was driven by several efforts implemented that partially offset a saving accounted last year related to benefits granted to companies amid the beginning of the pandemic, especially related to pension contributions. SG&A for the first half grew 1.7%, which is way below inflation for the accumulated 6 months of the year.

The Colombian perimeter EBITDA for the second quarter grew 1.6% and improved 27 basis points in terms of margin when compared to the second quarter of 2020. And when compared to the second quarter of 2019, the growth is even higher, 13.3%, and also the margin evolution is higher at a level of 90 basis points.

The retail business was negatively impacted mostly during April, as I said, due to the mobility constraints and showed a negative COP 55,000 million variation versus last year, while the complementary businesses contributed positively versus last year by COP 59,000 million. Important to mention that both segments had positive evolution when compared to 2019.

Let's move on to Slide #13, please, to review the performance in Uruguay, where we see a solid 9.5% EBITDA margin below second quarter '20 but above second quarter 2019 by 60 basis points. In terms of net revenues, we see a decrease of 2.3% in the second quarter, strongly affected by the FX effect of minus 5.5. In local currency, same-store sales grew by 2.3% driven again by the omnichannel and the format innovation initiatives. Omnichannel in Uruguay represents now 4.4% of total sales, and the Fresh Market stores grew 5.7 percentage points above the nonconverted stores as we saw also in Colombia.

It's important to mention also in Uruguay that when comparing sales to 2019 -- to the second quarter of 2019, excluding the FX effect and the COVID effect, the growth is 19%, which is a growth above Uruguay in the last 24 months inflation.

In terms of gross margin, the continued important efforts -- sorry, in markdown in logistics led to an improvement of 32 basis points versus second quarter of 2020 as we had seen in the first quarter as well. And once again, in expenses, in Uruguay, we saw a growth below inflation in local currency from the several operational efficiencies that we have been implementing. With this consistency in terms of gross margin and expenses efforts, we were able again to maintain a high EBITDA margin of 9.5%, with EBITDA reaching COP 60,000 million for the quarter, above 2019 by 13.7% in Colombian pesos and improving 60 basis points in margin versus the second quarter of 2019.

Going on to the Slide #14, we will review Argentina performance, which shows an improved performance versus second quarter of 2020 despite the constraints related to the new peaks of contagion during the last months. In terms of net revenues, Argentina grew by 35.9%. It was also affected by the FX effect, in this case where Argentina minus 11.8%. In terms of same-store sales in local currency, the growth was 50.5%, in line with local inflation, showing a recovery trend despite being impacted by limited opening hours and the prohibition to sell nonessential products in a few stores. For the real estate business in Argentina, revenue grew almost 6x despite also closures of a few commercial galleries, and the occupancy rates were sustained at 89% for the closing of the second quarter.

The gross margin evolved strongly, improving 412 basis points, benefited by lower share of promotional events once again and efficiencies and logistics. Gross margin improvement for the first half is 253 basis points, as we already have seen in the first quarter a good evolution in terms of gross margin as well.

In terms of expenses in Argentina, the increase when compared to the second quarter '20 basis is related to savings that we had during the second quarter last year related to the pandemic situation in Argentina with government aids as well as we saw in Colombia.

And in terms of EBITDA, we see a level close to 0 with an improvement of more than 5 percentage points in terms of margin versus second quarter last year, but it's still 2 percentage points below second quarter 2019 levels.

In terms of cash, the continuous efforts in working capital and CapEx is still helping protect the cash position of this operation.

Now to review our consolidated results, let's move forward to slide -- to the next slide, #15. The second quarter of '21 showed a profitable growth and strong margins. Net result grew 4x, and EBITDA margin reached 8.3%, 18 bps higher than the second quarter of 2020 and 70 bps higher than the second quarter of 2019.

In terms of net revenues, we see a growth in Colombian pesos of 0.2% for the second quarter. Sales decreased 0.7%, and other revenues grew 24.8%. The main aspects to highlight here are the solid growth of omnichannel sales in the 3 countries and the innovative format initiatives, mainly in Colombia and Uruguay, and the recovery of the revenues from complementary businesses in Argentina and Colombia to reach almost 90% of the second quarter 2019 levels, which means that actually, we have, for the following quarters, another 10 percentage points to pursue to reach the 2019 levels in the complementary businesses. And we are confident that we will be able to do so with the reopening of the economy.

In terms of gross margin for Q2, the gross margin landed at 26%, 124 basis points above last year, driven mainly by the complementary businesses but also with a positive 60 basis point evolution in the retail businesses of the 3 countries consolidated.

In terms of total expenses, the consolidated figure shows a 6.6% growth versus last year and a 1.6% growth for the accumulated of the first half. For the first half, all countries show expenses growing below local inflation in all 3 countries.

Recurring EBITDA reached COP 307,000 million, growing 2.5% versus last year and 11% versus the second quarter of 2019. EBITDA margin improved versus the last 2 years, as I mentioned before. As we can see on the right bottom bridge, the results were leveraged by the complementary businesses when compared to the last year. However, both segments, retail and complementary businesses, showed a positive evolution when compared to the second quarter of 2019.

Finally, net group share results grew almost 4x to COP 51,000 million and improved 100 bps versus last year. And the first half accumulated accounts a net result of COP 136,000 million, almost 4x last year as well with 136 basis points improvement in terms of margin.

In the next slide, we'll detail the Q2 net result evolution. So please move forward to Slide #16. The net result evolution from COP 13,000 million in the second quarter of 2020 to COP 51,000 million in the second quarter of 2021 is mainly explained by 4 elements. The first one, stable contribution from operational results. Due to the diversification strategy that we have, we see the complementary businesses generating COP 66,000 million additional contribution, which offset the negative COP 67,000 million retail negative contribution, which is mostly related to the mobility constraints that we had during April in Colombia mainly.

Second element. Financial expenses were COP 40,000 million below last year, thanks to debt conditions, renegotiations that we performed during March and April.

Third element. Once again, we see a strong reduction in nonrecurring expenses for the second quarter by COP 24,000 million. And as I mentioned before, our forecast is to maintain the nonrecurring expenses below half of last year results and also below the 2019 levels.

And last, the fourth element, which is an increase in terms of income tax expenses. This is actually related to the improvements we just mentioned. There is no change in terms of effective rate of income tax when we compare it to the previous years.

Finally, on Slide #17, regarding our cash and debt situation. At holding level, we can see that the net financial debt position improved by COP 141,000 million. It was 168 for the consolidated perimeter. And I would like to highlight that the gross debt reduced by almost 24%, meaning COP 354,000 million, due to a solid operational performance, allowing the company to comply with the planned debt amortizations and also allowing us to need -- to use less of our revolving credit facilities.

Now I'll turn the call back to Carlos Mario to go on with our main conclusions for the second quarter. Thank you all.

At main conclusions for the quarter, I would highlight first the very positive increase in net income, 4x the previous quarter in the same quarter of last year due to lower financial and nonrecurring expenses and also to the important contribution, especially of complementary businesses, the recurring EBITDA margin gain of 18 basis points against the second quarter of 2021 and of 71 basis points against the second quarter of 2019, and the positive sales performance in like-for-like consolidated of 1.4% if you exclude the foreign exchange impact, a consistent and modern strategy for retail and -- which has been extended in the last years and which shows a strong omnichannel penetration, double digit, a retail format innovation in WOW Fresh Market in Uruguay and in Colombia and also in the Super Inter last format, and also the continuation of our Cash & Carry strategy and the customer traffic monetization contribution, a strong operational cash generation for shareholders and a net financial debt improving by COP 168,000 million.

And I would say, finally, as I mentioned before, we are looking in a very positive way the second half of the year, unless there are irregular things that we do not foresee at this very moment. We see the tax reform are positive for the company and for consumption. We see that the consumption rate started very well in July. In July, we had the best sales month in the last 2 years, and we hope it continues like that during August and September. And we are seeing that as things are, we preserve our 2021 estimate outlook completely unchanged with a very positive outlook.

I would say, those are the conclusions. We thank you again, and we open it to Q&A before some final remarks.

(Operator Instructions) And we have a question from Julian Ausique from Davivienda Corredores.

I would like to ask 2 questions. The first one is would like to know if the complementary business in comparison to the 2019 operation, how is it performing? Because, of course, if we compare it against the 2020, the FX are really good. So that's my first question.

And my second question is regarding the announcement that's been released in the media about the possible sales -- of participation of different stockholders of the company. And I would like to know what you think about the performance of the stock in the Colombian market due to the low liquidity that we spoke of now.

Julian, I'll take the first one to comment about the performance comparing to 2019. For the -- in terms of sales, in terms of net revenues for the consolidated perimeter, we have, excluding the FX effect, an increase of 2% in terms of net revenues with an improvement of gross margin and an improvement also into -- and a deterioration in terms of SG&A due to the growth below inflation of net revenues, but that lead us to have the EBITDA growing when compared to 2019, 14% in terms of cash for the consolidated perimeter and 70 basis points in terms of margin. This is for the recurring EBITDA.

In terms of net income, the progression is from minus 18,000 million for the second quarter of 2019 to positive 51,000 million in the second quarter of 2021, improving almost 200 bps in terms of margin. So I would say that when comparing second quarter of 2021 to the second quarter of 2019, we have a positive but below inflation increase in terms of net revenues, but a positive evolution in terms of gross profit, EBITDA, cash and in margin and also net income in terms of cash and almost 20 -- almost 2 percentage points in terms of margin. I hope I was able to answer your question.

And regarding the complementary business, specifically like the retail, the -- regarding financial business and the real estate business, how is it compare against 2019?

When adding all of them together, we are 10% below the second quarter 2019 of the revenue level. So we are now on a 90% level comparing to 2019. This is why I was saying that we expect to fulfill the other 10 percentage points during the second semester. So we are growing when comparing to last year, of course, because of the base, but we are still 10% behind the second part of 2019 for the complementary businesses revenues.

Julian, I'll take the other part of the question. Regarding the possibility that there is any transaction of the controllers of Éxito, of shares in Éxito or position in Éxito, it's not to me to comment about that. But what I would say is I would submit the relevant information that they have done and that we also made to the public market where it says that there's no negotiation of Éxito position going or developed or being considered at this very moment.

And the second part is that -- and of course, that Éxito is a strategic part of the GPA business. And the second part about the stock is quotation. The first, I would say, is that this year, our stock quotation is in line with what has happened in the Colombian stock market. But obviously, there is a liquidity problem, and that's the reason why the stock is no longer part of the MSCI called cap index because of the low free float. But I would also add that if you look at the fundamentals of Éxito and of the stock, if you look at the sum of the parts and any kind of multiples that you can make against other peers, of course, there is a huge opportunity in the valuation of the company, but of course, that's for the market to proceed.

Our next question comes from Nicolas Larrain from JPMorgan.

So sorry if you already replied to this, but my connection failed during a part of the presentation. But I wanted to understand just briefly how we see that you're seeing trends in Colombia over last month after the quarter ended. And also, very specifically, the sale of the shopping mall in the first quarter -- sorry, in second quarter. I understand you had a sales on second quarter of last year. I wanted to better understand what's the impact of that sale on recurring EBITDA for Colombia.

I'll take the first one, and then Ruy will take the second one. Trends in Colombia, I'm seeing a very positive trend for various reasons. First, we are looking at the consumer confidence is improving. Second, I think that the market is strong because the tax proposition is not going to have taxation on individuals or on VAT, which would have been a very bad news for the market. The third thing is that businesses are open since May, and they are no longer being closed weekends, and we hope it continues like that. The fourth thing is because riots have calmed a lot. And the last call for a national movement that we had 20 of July was really calm and controlled by the defense forces of the country.

And also looking forward, we are seeing, now speaking about Éxito, that our omnichannel continues to be strong, that our third Q Éxito promotion was a real success in a combination between physical protected way and omnichannel and that our complementary businesses continue to perform well, especially the credit one and the real estate, given that we have an occupation above 92%. And we have a reopening of our tenants and no longer obliged to give discounts to our customers. So I'm really positive. The figures we saw in July are very positive, and we expect that it goes forward in the same manner.

Nicolas, thanks for the question. This is very important for us to speak about this activity. I would like to reinforce that our real estate development activity is also core business. Our real estate division operates assets and also develop and sell them, and this is why this is core.

For the second quarter, we accounted -- we have a project, which is to develop a new asset in a logistics compound that we have in Bogotá to sell it to a third party, and we have been doing that during the last 18 months, and we will conclude this project by the end of this year. And during the second quarter, we accounted part of this income.

During the second quarter, the revenues related to this project was COP 56,000 million, but the EBITDA impact is 23. So when adjusting -- what you guys are doing, when adjusting the EBITDA for this project, you would have to take, instead of the COP 56,000 million, the 23, which compares to the second quarter of last year with an EBITDA impact of 9. So the positive contribution of this income when comparing second quarter of 2021 in the second quarter of 2020 is up plus COP 14,000 million.

(Operator Instructions) We show no further questions. I would like to send the call back to our presenters for any final remarks.

Thank you very much. I would like to make the following final remarks. I think that Grupo Éxito, with these results and the projections, validates a consistent profitable model with an 8.3% EBITDA year-to-date, cash positive, high net profit growth and low debt position. If you look at the Colombian retail panorama, I think that having such a position is a huge asset for confidence, growth and sustainability. This is based on innovation where we add the Vecino format to what has been a great success with the WOW Éxito and the Fresh Market for Carulla.

Omnichannel last-mile leadership where we are initiating a very interesting project with Rappi for 10-minute delivery, which is going to impact the Colombian market as it is impacting other metropolitan areas in the world like Shanghai or New York or Chicago.

For customer confidence and the asset monetization continues to be key for the company and not something that you see 1 quarter and you don't see the next one, but it's part of our business model.

With the first half positive results in the middle of possibly the most restricted operating scenario that Colombia has lived in many, many years and with a favorable outlook for the second half as we are seeing today with sales growth, market share expansion and an EBITDA margin increase, this reinforces our outlook for the year where we are looking to accelerate our expansion for the next month and 2022, not only in retail, but also in real estate projects and in Cash & Carry and in our conversions to the innovation formats and the investment in technology and logistics for omnichannel capabilities.

The pandemia has created a turmoil in the Colombian retail scenario, a real turmoil. But in this -- in the middle of this turmoil, Éxito has risen as a stronger player vis-a-vis the rest of the market. We believe that the name of the game is consistency, investment in profitable expansion, cost conscious and, of course, innovation, which is more important than ever.

And there are things to look at for the future value creation of the company: our Puntos Colombia coalition, which is a very modern business, which is, I would say, our tech big data business; our Viva Malls developments; our Tuya paid wallet; our Éxito Media business; and our last-mile 10-minute service, which started 2 months ago and is going in a very, very strong manner; and of course, other assets and traffic monetization initiatives.

I would like to thank you all for your attention and presence and hope to see you for the next quarter delivery.

Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.