Thank you for standing by. Welcome to the Adore Beauty Group Limited FY 2023 results conference call. All participants are on a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question via the phone, you will need to press the star key followed by the 1 on your telephone keypad. If you wish to ask a question via the webcast, please enter it into the Ask a Question box and click Submit. I would now like to hand the conference over to Ms. Tamalin Morton, CEO. Please go ahead. Thank you. Good morning, everyone. I'm Tamalin Morton, CEO of Adore Beauty Group. I'd like to begin by acknowledging the traditional owners of the land on which we meet today and pay my respects to their elders, past and present. Thank you for joining us today to discuss Adore Beauty's results for the 2023 financial year. We'll be referencing slides from the investor presentation uploaded to the ASX earlier this morning. Here with me is our CFO, Stephanie Carroll. Slide two. FY 2023 has been a challenging year for retailers, marked by interest rate increases, high levels of inflation, and subdued consumer sentiment. In this volatile operating environment, Adore Beauty's return to growth in the second half reflects our compelling customer value proposition and the strength of our loyal, returning customer base. Part two, FY 2023 revenue increased 0.5% over the PCP, driven by multiple record promotional events, including Afterpay and Click Frenzy Mayhem. Importantly, these events were well supported by our brand partners. We also saw the early benefits of newly implemented cost and margin optimization programs in the second half, with improvements to gross margin, profitability, and other key financial metrics. We expect to see an increased impact from these initiatives this financial year. Moving to slide three. Full-year revenue of AUD 180.6 million declined 9.6% on the lockdown-impacted prior corresponding period. Increased 14% on a three-year compound annual growth rate. Active customers of 801,000 were down 8% on the PCP, reflecting the cycling of large volumes of new customers acquired during COVID lockdowns, whilst also noting that our customer base has grown at an annual rate of 11% over the past three years. Importantly, we continue to increase the number of returning customers, up 4% over the prior period to 490,000, and up 31% on a three-year CAGR basis. Gross profit margin of 32.8% was down 0.5 percentage points on the PCP, however, improved in the second half, and Stephanie will provide more detail on this shortly. Reported EBITDA of AUD 0.6 million reflects reinvestment in the business, lower operating leverage, and cost inflation in key input lines. Adore Beauty has a strong balance sheet of AUD 27.8 million in cash and no debt. Now turning to slide four. This slide shows our revenue breakdown by new and returning customers. Revenue in FY 2023 was underpinned by our valuable returning customers, who contributed 76% of all revenue, up from 70% in FY 2022. The graph on the right shows that despite the challenging retail environment, revenue contributions from returning customers remained relatively stable and, over a three-year period, grew at 27%. Turning now to active customers on slide five. Customer loyalty remains resilient, and we now have almost 500,000 loyal, returning customers, representing just over 60% of all active customers. Since FY 2020, we have more than doubled our returning customer base. These customers spend more on the platform than new customers and, as I mentioned earlier, contributed 76% of all revenue in FY 2023. Annual revenue per active customer declined as average order frequencies dropped from 2.1x to 2x per year. Encouragingly, this was offset by record average order values of AUD 111.60. I'll now hand over to our CFO, Stephanie Carroll, to take you through our financial performance. Thanks, Tamalin, and good morning, everyone. As Tamalin has outlined, Adore Beauty's full-year results reflects the challenging high inflation landscape over the past year. These three graphs show the performance of the company prior to lockdowns, during lockdowns, and now in a post-lockdown environment. As you can see, Adore Beauty's post-lockdown performance is significantly higher than pre-COVID levels, and we are now growing off this elevated base. Revenue of AUD 180.6 million declined 9.6% compared to the prior period. Over the past three years, Adore Beauty has grown revenue at a compound annual growth rate of 14%. Gross profit margin of 32.8% was down 0.5 percentage points on the prior year. As Tamalin mentioned, reported EBITDA of AUD 0.6 million reflects reinvestment in the business and the impact of subdued revenue and higher cost of sales. Encouragingly, we saw improvements to gross profit margin and profitability in half two, despite challenging operating conditions, with revenue returning to growth and cost and margin initiatives having an early impact. Slide eight shows our P&L statement for FY 2023 compared to the prior three corresponding periods. Revenue of AUD 180.6 million was supported by key sales events, including Cyber, Click Frenzy, and Afterpay, and a record number of returning customers. These higher-value customers spend more on the platform, underpinning growth in average order values, up 3% on the PCP to AUD 111.60. As I mentioned, gross margin of 32.8% was down on the PCP, although half two improved 0.5 percentage points on the prior half. Moving down the P&L, marketing as a percentage of sales increased 0.7 percentage points over the prior year to 14.8% due to higher customer acquisition costs. More effective marketing saw this metric improve in half two, which is something that we continue to be very focused on. Moving now to our balance sheet on slide nine. Adore Beauty is well capitalized, with a strong cash balance of AUD 27.8 million and no debt. In half two, we invested in inventory for higher turnover products to reduce missed sales resulting from out of stocks. This approach has already had a positive impact on sales. Given the long shelf life of beauty, beauty products, carries minimal inventory risk. Our strong balance sheet provides the flexibility to invest in long-term growth drivers and pursue potential M&A opportunities. I'll be happy to take questions at the end of the presentation. For now, I'll hand you back to Tamalin. Thanks, Stephanie. Turning now to our strategy on slide 11. Adore Beauty is focused on delivering on our ethos of beauty done better. We provide our customers with an authentic and relatable shopping experience that focuses on high-quality products, a wide range, value, and convenience across beauty and wellness. We enter the new financial year with a refined strategy that ensures the customer is at the center of our business. We are focused on further building our brand awareness and optimizing our operational efficiency and effectiveness. These three pillars of our strategy support sustainable long-term growth. I'll now talk through some of our key initiatives underway as part of this strategy. Slide 12. The first pillar of our strategy is customer centricity. We use many data sources and inputs to inform our strategy, and this year we have further augmented our approach. To better understand our customers' evolving needs, we collaborated with SOON Future Studies to develop The State of Beauty 2023 report, which outlines key themes and trends shaping the Australian beauty category. Launching next month, The State of Beauty 2023 combines survey data from more than 2,000 of our community members with insights from industry leaders. Data insights from this report have reaffirmed our strategy, brand offering, and commercial opportunity. Now turning to slide 13. The high levels of engagement and sales from our loyalty members reinforce the underlying consumer trust in the Adore Beauty brand. We're continuing to enhance our loyalty program, investing in user experience and increasing personalization, targeting, and conversion. As you can see here, customer acquisition unit economics show average customer lifetime value growing at almost seven times the acquisition cost by year five. New initiatives are underway to engage loyalty members and returning customers, targeting increases in order frequency. On slide 14, our mobile app continues to be valued by our customers, accounting for 1/4 of all sales in quarter four FY 2023, up from 15% for the same period last year. The graph at the bottom right shows revenue contribution on a quarterly basis. The app continues to deliver significantly higher average order values and frequency compared to web, at 14% and 34% respectively. While app revenue is nearing our 30% revenue target, we see further opportunities to increase app adoption and are investing in tools and technology to support product selection. Further building our brand is our second strategic pillar. Brand awareness remains a significant opportunity. Over the past year, we continued to improve awareness in the 25-45-year female demographic, up from 59% to 62% from June 2022 to August 2023. In FY 2024, we'll be expanding our target audience with a focus on the 41-50-year female demographic, a strong lifetime value customer segment. There was growth in both brand awareness and a higher volume of orders from this cohort in FY 2023, and we see opportunities to further increase revenue contribution from this demographic. We'll also be bringing the Adore Beauty brand to life and increasing awareness through physical activations coming across the year. Moving to own brands now on slide 16. In FY 2023, we significantly increased our own brand portfolio, more than tripling our SKU count to 38 products across our three brands, Adore Beauty, AB Lab, and Viviology. While these brands are still in their infancy, our private label products are already delivering a growth margin substantially higher than third-party brands. In FY 2024, we'll continue to expand our product offering under these brands. We're exploring a potential fourth brand in another category. We're also continuing to evaluate and review M&A opportunities. Now turning to slide 17. We continue to expand our product range and adjacencies, onboarding 20 new brands during the year and adding complementary wellness and fertility categories. We're also looking to grow our cosmetics and pharmacy ranges to address target customer concerns, such as menopause and hair thinning. New brands, which include Dior and Huda Beauty, accounted for 2.6% of total FY 2023 revenue. While fragrance continues to experience strong annual growth, skin and hair care remain our largest category. Moving now to our third strategic pillar, operational optimization. Initiatives to drive operational optimization and marketing are underway. Adore Beauty's content is an authentic and entertaining voice on beauty and personal care, with a loyal and highly engaged community. Over the coming year, we will look to commercialize our marketing assets and opportunities, including digital retail media. During the year, we continued to grow our content-driven impressions, up 23% on the PCP, supporting traffic to our organic marketing channels. These include multiple podcasts, blogs, and follower communities across Instagram, YouTube, TikTok, and Facebook. Engagement with our content is compelling, with our nine podcasts now downloaded a combined 6.2 million times, representing opportunity for our business. To our market opportunity on slide 20. This slide highlights our addressable market and growth runway. Adore Beauty is the leading pure-play online beauty retailer in Australia, operating within the nation's AUD 12.8 billion beauty and personal care market. Euromonitor forecasts the Australian online segment will grow to be an AUD 2.9 billion market by 2027, representing 18.4% of the total beauty and personal care category. This growth is not linear, with subdued online market growth forecast for calendar year 2023, before ramping up in 2024. The graph on the right shows Adore Beauty has a significant growth runway, with online category sales in Australia still years behind more mature markets, such as the U.K. and the U.S.A., at 43% and 36% respectively. Turning to slide 21. Increasing profitability is a key focus in FY 2024. This slide outlines the main levers of margin expansion, revenue growth, improved gross profit margin, and reduced expenses. Scale, improved brand awareness, and initiatives to target average order values and frequency will support top-line revenue growth and deliver operating leverage. Longer term, we will continue to evaluate opportunities to drive further revenue growth through M&A. Growth margin improvements will come from further pricing and promotional review, partner support, adjacency expansion, and own brands with higher margins. Finally, our cost optimization program will reduce expenses, while our growing owned media channels and retail media will enhance our marketing efficiency. Turning now to our outlook. Slide 22. Adore Beauty remains focused on driving top-line revenue growth from returning customers, cost effectively acquiring new customers, and building our own brand portfolio to expand margin. Sales momentum continues into FY 2024, with year-to-date revenue up 5.9% on the PCP. Trading conditions are expected to remain challenging, given higher costs of living pressures and also subdued consumer sentiment. Over FY 2024, we will continue to leverage our healthy balance sheet to phase investment in key strategic initiatives. These initiatives will be supported by broader market growth, with online sales expected to gain pace in calendar year 2024. Continued focus on margin and cost improvements will support profitability, with Adore Beauty aiming for an EBITDA margin of 2%-4% in FY 2024. Thank you for your time today. Before I hand back to the operator for questions, I'd like to acknowledge the hard work and the dedication of the entire Adore Beauty team. Our achievements over half two in a challenging retail environment reflect their passion and their innovation mindset. We look forward to delivering value for our customers, partners, and shareholders over the coming year. Stephanie and I will now take any questions. Thank you. Thank you. If you wish to ask a question by the phones, you'll need to press the star key followed by the number one on your telephone keypad. If you wish to ask a question by the webcast, please type it into the Ask a Question box. Your first phone question comes from Apoorv Sehgal with UBS. Please go ahead. Morning, Tamalin and Steph. First question, just on gross margins, please. The second half margins ticked up a bit on the first half, as you mentioned. Can you just explain firstly, what drove that? Secondly, with sort of input costs hopefully trending a bit lower, private label and the new adjacencies coming through, can we expect gross margins to tick up a bit in FY 2024 compared to second half 2023? Thanks for the question. First up, the key point around your question: improvements in gross margin in the second half, and what do we think that relates to, if I'm right? Yes. Yes. I think firstly, we saw, and if, if I can reference slide two from the deck also. We saw revenue growth in half two, FY 2023 of 0.5% on the PCP, which was really pleasing. We saw gross margin improvement, at 0.5%, coming in at 33.1% gross margin. There are a number of things that contributed to that. We were looking at greater partner support. We're looking at our promotional effectiveness. And then in tandem with that, as we go through the lines, we also saw improvement in marketing as a percentage of sales, and other operating expenses come down. That was, they were really the key drivers of the improvement in half two versus prior year and also in terms of the half one improvement, I should say. Anything to add to that, Steph? Were, were you specifically, Paul, asking about gross margin improvements or was it overall? Sorry, Steph, say that again. I just missed that. Was it specifically gross margin improvement that you were asking about or overall? Oh, yeah, just into FY 2024 gross margins, just versus second half 2023, given some of the initiatives around private label and the like coming through input costs hopefully trending down. You know, what's the sort of trend for gross margins into 2024 versus the second half of 2023? Could it potentially tick up a bit? I mean, we, we've called out that we continue to actively work with our supplier partners on optimizing terms. That's where we've absolutely, you know, worked through and, and have grown, you know, knowing that we also had. We went backwards this year, but the focus is absolutely to grow that. It, you know, there has been an inflationary environment as well. Okay. Maybe just one on the trading update. So clearly the quarterly momentum into the September quarter is up on the June quarter. Can we expect improved momentum again into the December quarter as well, just given the natural seasonality with the business, that presumably there's some key promotional events coming up in the December quarter that'll be, be to your benefit versus, versus the September quarter? We're not really giving guidance in terms of future quarters. We do, as you say, however, have key promotional activity in that quarter. We've had some really good promotion, promotional success, I would say, in half two. We also expect to, you know, we're, we're certainly hoping to see that continuation in positive sales momentum. Sure. And just on some of the longer-term targets out to like FY 2027 on margins and private label, I appreciate, Tamalin, these targets were from before your time. Have you got any views on those prior targets? At this point in time, we've been very much focused on our short and medium-term plans and ensuring that we're generating positive momentum around those. We're continuing to evaluate our longer-term goals, and we're also reviewing M&A and other opportunities. That is work that we're continuing to look at. Okay. Thanks, guys. I might jump back in. Thank you. Next question comes from Joseph Michael with Morgan Stanley. Please go ahead. Morning, Tamalin, and morning, Stephanie. Thanks for taking my questions. The first one I had was just around market share. I know it's hard to track, but do you have a sense how you're tracking from an online perspective? In relation to market share, it, it can be challenging in that a number of our competitors are private, so we don't necessarily have up-to-date data with respect to their performance. We do have a number of different proxies that we refer to to try and understand share. From what we can see, we're of the view we had a, a good quarter four in particular, and we continue to focus on building on that. Okay, great. Next question, just on inventory, it was sort of up 20% year- on- year. Maybe can you talk us through the thinking behind the strategy of investing in higher turnover, stock? And, and should we expect that to continue into FY 2024? Should we expect inventory growth to continue outpacing sales growth? Our investment in inventory was absolutely a strategic investment. We saw an opportunity around missed sales, and so we did invest in higher turnover inventory lines, and we have already seen the direct sales benefit following on from that. A few points on that is our inventory, we, we've been historically good at managing inventory, and we have inventory which isn't of a short expiry, isn't fashion, so it is very minimal risk in holding more inventory. What we found that it's doing is growing sales, but also ensuring that our customers are able to access the products that they want. They're not disappointed, we don't lose customers on that basis. We're certainly very comfortable with our increased inventory. We are finding it's helping us in terms of driving sales, and, at this point, we're very comfortable with the level that it's at. Is there anything you wanted to add, Steph? Yes, so I think, I mean, that's absolutely right. I think the other thing is, is that we continue to track very closely. We continue to track the missed sales opportunity, and, you know, we, we'll, you know, be flexible, up or down, on, on that opportunity. I think, you know, it's not just the measuring of they come, and they find one product that's out of stock. We might lose them, in, in entirety as a customer if we're not in stock on, on, you know, one of the items that they really want. You know, being in stock on, on, high-turnover products that our customers really love is very important to us. Yeah. Okay, great. That's helpful. Just a last question around sort of, I guess, marketing leverage. If you look at marketing as a percentage of sales, it's steadily been increasing, over the last couple of years. Just wondering if you could talk to the outlook for marketing as a percentage of sales, and CACs. My understanding is they have moderated from elevated levels, so do you think you can get leverage going into FY 2024 on the marketing line? Yes, that's a great question. Marketing as a percentage of sales in half two, you would have seen from, again, from the deck, came down, so we saw a 0.5% improvement to 14.5% of sales. We would also agree in terms of the moderation at a cost level. We do feel that we can continue to build on that, and that we will see increased impact of the work that we've already carried out through the rest of the financial year. Great. That's all I had. Thanks for your time. Thank you. Your next question is a follow-up question from Apoorv Sehgal with UBS. Please go ahead. Oh, thanks, guys. I just wanted to ask a few more. The new brands at 2.6% of sales, can I read that as effectively new brands that were launched provided the 2.6% boost to sales? Would it be typical to expect a similar rate of brand onboarding in FY 2024 as well? I'm just wondering if that 2.6% is kind of like a, a bit of a rough building block we can use going forward or just trying to build out the profile for growth into 2024. Yeah, thanks for the question. It's the 2.6% is of total sales, so that-that's how it should be read. We continue to focus on onboarding great new brands to offer to our existing customers, but also to entice new customers to us. We launched 20 brands in FY 2023, and that is a continued focus for us to continue to get those great new brands on board. You should absolutely expect more of the same in FY 2024. Okay, cool. Just on the app, that's been growing nicely, 25% of sales now. Mm. Maybe firstly, anything specifically you've done to really try and drive that as a, as a growing portion of your business? Then secondly, you obviously mentioned the presentation, the kind of superior unit economics, right, of the app? Mm-hmm. What about the operating cost benefits? Like, is that part of the marketing efficiency, but are there any other operating cost benefits as well as, as that becomes a bigger part of the sales base? No, you're quite right. It does offer a number of efficiencies and savings through the app. We have done a number of things to promote the app and, and make it, you know, attractive to customers. Some more tactical activities to entice people to use the app for those very reasons, because it is commercially attractive to do that. Okay. Just a quick follow-up. When we're talking about gross margins, in the slide pack, you mentioned adjacencies and how that would help. May-maybe I just completely missed it. Would you just mind explaining the adjacencies opportunity and why that helps gross margins? Adjacencies, so I think, you know, we've talked about, we've moved into fertility, we've talked about menopause, we've talked about hair loss. You know, where we can, we would, you know, if there are higher margin, categories, then that will help improve the gross margin position. Got it. Okay. Then just another one, just quick on gross margins. The private label, you've obviously substantially higher gross margin than third-party brands. Are you able to roughly give us an indication of what kind of gross margins private label generates? I mean, I think it's, it's, it's significantly more than the gross margin that we see on third-party brands. Mm. Okay, sure. Maybe just last one then. Just on the M&A opportunity, would you mind just, give a bit more detail on what kind of opportunity you see in M&A? This is something we're actively reviewing, and we do see. Opportunities we're looking at are really around opportunities that will help us achieve our long-term goals, opportunities that would address margin expansion as well as top-line growth. Got it. In line with that strategic pillar? Absolutely. Yeah, fine. Actually, can I take the liberty to ask one more? Average order value is up 3% and average frequency marginally down. Is that a function of prices just generally going up? Yeah, from a price point of view, you know, we are primarily a third-party brand distributor, or, or we sell, sorry, third-party brands. When price increases come through, they're generally market-wide and reflected in the retail value or, sorry, the RRP, and, you know, they are passed on. You know, yes, that's what you would see in average order values increasing, from a frequency point of view, I mean, I don't think we've called out. We saw that decline, but we're pleased with the average order value improvements that we've seen. Okay, thanks very much. Thank you. Now over across the webcast questions. Your first question is from Tom Beard with Taylor Collison. Congratulations on a great result. How do AOV and order frequencies look like for the outlook period? Are these broadly in line with historicals and your expectations? Is that, I'm not quite sure whether that is in relation to the trading update we've currently provided. Look, I think, I, I don't think we would comment on the first six weeks, probably, or seven weeks. I think it's probably too early to tell, but, you know, our average order values historically have increased, and we've seen, you know, some stabilization in average order frequency. Mm. Next question. I'm not sure. Oh, next question is from Marco Fantozzi. Do customers preference AB private label brands versus third-party brands? That's a great question. I think they serve a certain purpose there. They fill gaps in our range, and, you know, we, we obviously get margin expansion opportunities through that offer. I think we have, as a business that's all about focusing on our customer and providing great alternatives in a wide range, you know, there's a place and a lot of value in both. I think I'd add to that to say, you know, we're not, you know, looking that our whole portfolio is own brand. Absolutely, people come to us because of the wide range that we have, and the range includes, is now including own brand. The next question is from Lewis Joseph. Will the company consider capital management incentives such as a buyback, given the high net cash levels on the balance sheet and very low market valuation on metrics such as price per customer? The board continues to evaluate the best use of capital, and we're continuing to evaluate M&A opportunities. There's nothing further to report at this stage. I have another follow-up question from Eduardo, a private investor, as a phone question. Please go ahead. Hi there, Tamalin, Stephanie, can you hear me okay? Yes, thank you. Yes, okay. I just wanted to just clarify something on the trading update. The revenue is up 5.9% on PCP. Do you mind unpacking that for us? Is that, you know, is that increasing in the return, is that an increase in returning customers, or is that also an increase in new customers? Anything on, you know, average revenue per customer? We're not providing further detail around the 5.9% at this point. It's, it's really, you know, it's six and a half weeks of trading, and so at this point, it's giving a sense of the momentum that we have, but we haven't gone into a great level of detail in terms of analyzing that six and a half weeks. Okay. Provided. What about in terms of just that EBIT, EBITDA margin target, 2%-4% in FY 2024? Obviously, that's a significant improvement from where the margins are now. You know, can you, can you provide any assumptions? You know, what do you, i s that basically operating leverage on the revenue growth that you're, you're obviously expecting in FY 2024? I, I think it's a function of a few things. you know, we're certainly looking to increase, as, as I've highlighted, so increase our revenue, increase scale, looking at our GP margin, what we can do to continue to build and, and improve that, and then the cost optimization program that we've highlighted. It's a function of all of those things to get there. Okay, and is there anything? Can you give us any more details on that, you know, cost improvement, you know, any of those cost initiatives? You know, you're obviously expecting some cost savings somewhere. Can you elaborate on that? Some of the cost savings that we've seen have been in marketing, which we've highlighted through enhanced marketing efficiency and effectiveness. We have been looking at some of our customer fulfillment center costs, and we've seen reductions there, as well as in other team and also other costs, I would say. Anything, Stephanie, to add? In terms of specific things, so more specific things at the customer fulfillment center, I think we've spoken at a time earlier, we reduced the Sunday shift. We also have since then, we have moved back to just one shift during the week. So we've got rid of our afternoon shift. The full impact or, or the impact of that will be seen through the full year of FY 2024. I think the key thing in, in the reduction of the afternoon shift is that we were very careful to ensure that there was no impact to our service levels. Yeah. Where we are being cost-efficient, it's not ever at the expense of our customer experience, because customer centricity is our key brand pillar, and we remain, you know, we remain very focused on ensuring that every aspect of our customer experience, including fast fulfillment, is absolutely paramount. Right. Okay, and maybe just one final question. I just wanted to understand just the step-up in cash burn in half two, versus, you know, sequentially, you know, versus the half one. You sort of had negligible cash burn in half one, but then it sort of increased to AUD 2 million in half two. There looks like there's a tax benefit there. So I think, you know, underlying is maybe, you know, AUD 5 million in cash burn. Can you unpack that for me? I think there's obviously an inventory investment in that second half, but I think there's also some more, you know, additional costs there, which I can't really reconcile. Yeah, it'll be, it'll be. Thank you for the question. Look, you know, you're, you're right. There's the inventory, step up, so that'll be one element. There's also, you know, the, we continue to invest in our IT infrastructure or, or our IT systems, website, and mobile app, to name a few. You know, it, it, it's likely to be, you know, timing influenced as well. Thank you. We have another webcast question from Isabella too. Are any Australian/global brands stocked exclusively at Adore aside from private label? Do you see any opportunity to pursue this in the future? Look, I think we, we do have a few, that are exclusive, and we definitely see more opportunity for that in the future. Absolutely. Another webcast question. This is from Brett Williams. What can you tell us about the competitive environment that you face for online sales? Are competitors expanding their online sales? Are any brick-and-mortar retailers moving into online sales? Over the last year, has the pricing behavior of competitors becoming more of a constraint on your own price settings? Okay. There's a few points in that question. Let me just unpack that. With respect to the competitive environment, I think, you know, we've spoken around that it is a competitive environment, there has been the return to bricks and mortar. That has been a feature of the last financial year, I should say. Competitors expanding their online sales. We have seen some competitors expand in that space, and we continue to focus on having a very differentiated and strong customer value proposition to continue to grow our business. They're sort of leads the key thoughts there. Anything to add, Stephanie? No, thanks, that's right. Thank you. There are no further questions at this time. I I now hand back for closing remarks. Fantastic. Thank you. Thank you for joining us today and for your continued support. Adore Beauty's strong customer value proposition and loyal returning customer base ensure we are well placed to navigate the current challenging operating environment. We have a clear strategy focused on three key pillars: customer centricity, further building our brand, and operational optimization to grow our business within a market benefiting from the structural shift to online. I look forward to seeing many of you over the next few days, and we'll now close the call. Thank you so much.