Good afternoon, and welcome to MADARA Cosmetics investor webinar. Our hosts for today are the recently appointed member of the management board and the CEO, Gunta Šulte, accompanied by the member of the management board and CFO, Tatjana Nagle. During the webinar, you will be introduced with MADARA Cosmetics' key activities and most recent financial results. After the presentation, we will have a live Q&A session. We have already received several questions from the investors, but if you would like to join the discussion, please use the Q&A window that you can find on the bottom of the screen. Let me now hand over to the management of the company. Hello, everybody. Thank you for introduction, Ieva. As mentioned, my name is Gunta Šulte, and I'm three months now privileged to be CEO and also member of the management board for MADARA Cosmetics. Welcome, everybody. I hope sun is shining same in Riga, as everywhere else. With me today is Tatjana, and we will guide you through semester one results. I hope it's going to be insightful and delightful for you to hear. Let me just move on. The agenda is quite brief. Together with Tatjana, we will guide you through the highlights of semester one, key financial results, and then also some other key events that we would like to highlight that happened from January till June. Just a brief maybe intro from my side because I am the new face on the screen. You're used to seeing Uldis before. It's been three months around since I joined MADARA team, and I can with all honesty say that it's been nothing but just fulfilling, really, experience to experience the growth of such a beautiful brand. I can truly emphasize that what I said three months ago, that I'm standing behind this, that I do see potential behind the brand, the products. And with the eagerness and agility of the team, I'm very confident we will achieve that. That's it, a brief intro from my side, and let's kick it off. If we talk really about three things I would like to emphasize and take away from this semester one of this year. Like I said, I joined really the last month of semester, but I already experienced the volatility and the dynamics of the business. I really must emphasize when we speak about growth, yes, we do almost a 1% growth, but it's a growth coming from double-sided emotions. On one hand side, I can really emphasize and be joyful about the fact that we really grew significantly above market average, in our focus markets, which is France, Germany, but then in other markets, for example, Czech Republic, Estonia. On the other hand, we really experienced a one-off steep decline in one of our biggest export markets, Finland, which Tatjana will touch upon in literally a couple of slides. Yes, it's been quite dynamic year. On the other hand, what I'm very happy about is that we are establishing ourselves as makeup experts, specifically in skin-tinted categories. So these are the products like SPF with coverage, and others. We also see dynamics of these products, that they are increasing share within our portfolio. In semester one, makeup increased its share within MADARA Cosmetics portfolio by two percentage points. Last point to mention of highlight semester one is that despite the growth equation, I'm very proud of how team, really with high agility, managed the whole P&L equation. Really with prudent and agile cost management, we still delivered very satisfying operating margin numbers. Just to prove that we are here for sustainable, profitable growth model, not only in order to grow the company, but also to deliver predictable results for our investors. I will give now floor to Tatjana, who will guide you through the key financial indicators of the company. Thank you, Gunta. Hello, dear shareholders. Let me speak about our key financial results. In the first half of this year, we operated with revenue of EUR 10.2 million, which is a very small increase of 0.07%, which I will elaborate on briefly. Nevertheless, we operated with growth in operating profit and also pre-tax profit. Our operating profit was EUR 1.32 million, which is +3.5%, and our pre-tax profit was EUR 1.31 million, which is an increase of 2.85%. As Gunta already mentioned, our operating margin stood at 13%, which is a one percentage point increase in comparison to the same period last year. Now let's look at the key events of the first half of this year, and we will start with our geographical split by countries. As Gunta already told, there are some markets that we are really proud about and some markets where we are not that proud. In France and Germany, which are one of our biggest key strategic markets in Europe, we generated revenue growth of more than 15%. Also, we opened 60 new doors in France, which definitely helped to increase our revenue. On a negative note, Finland, one of our biggest markets, delivered a decline of 40%, which, of course, negatively affected the overall revenue growth of the company. The revenue decrease in Finland is related to the fact that our distributor adopted a new stock planning system, which led to an unexpected overstocking in the previous year. As a result, the orders were lower this year due to accumulated stock in partner's warehouse. Let's go to the product groups. As for the product groups, the first half of this year is definitely associated with acceleration of tinted makeup products. We achieved double-digit growth in this segment, therefore, also makeup group as such increased by two percentage points in MADARA revenue share. We also introduced seven product sets, which contain our best-selling products in full size and small size. It is important to note that MADARA revenue share increased in the first half of this year, while Mossa brand experienced a decline because of already explained situation in Finland as such. Now let's talk about e-commerce, which is a very important revenue source for our company. Direct e-commerce revenue in the first half of this year increased by 17%, and also the share of direct e-commerce increased by five percentage points in our parent company's revenue. If we speak about new customers, in the first half of this year, of our total customers, 29% were newly attracted customers. The rest, 71%, came from already acquired customers who generated return purchases. Also, it is worth noting that direct e-commerce is a very important and profitable business segment for us. Of course, we plan to grow and strengthen our direct e-commerce channel in the next periods as well. Now I am giving the floor back to Gunta. Thank you, Tanya. I will speak about two other, which I believe are very important events or platforms for our company that happened over the first semester. We invested in four new machineries with the help from Latvia's Investment Agency and Norwegian funds. We acquired a mixing machine for bulk production, powder mixing mills, powder press, and sachet filling machine. All of this was acquired and installed and set in motion for semester 2 and onwards. I want to highlight one word that is appearing here on the slide, which I think is very important to stress out. This is powder, pressed powder. That means with these machineries, we are entering a new segment, which is pressed powders. It's starting from any base powder to bronzers, highlighters, you name it, which is quite interesting category or segment to be in, which MADARA hasn't played before. Obviously, offering a product that is EcoCert, again, where we see much bluer ocean than it is with conventional products. Innovations to come in the following months, and really looking forward. Another platform that I want to talk is about our owned white label called selfnamed.com. With pleasure, I announce that we continued to deliver growth within selfnamed.com. Obviously, I have to emphasize, and we are quite cautious about the numbers, that we are starting from a low base. Any percentages that you're going to see obviously will look beyond impressing, but still, we delivered beautiful growth of almost 700% in terms of revenues. With that came the fact that we acquired new 50% of registered users increase. Another important point that we completed integrations with WooCommerce and Shopify, which will further amplify the customer experience on the platform. Having said that, the revenue achieved in the first semester was almost quarter of a million EUR. However, we consciously continued to invest in marketing in ad spending. Overall, Selfnamed was in red numbers when we talk about the profitability also in semester 1. Yes, just to give a hint what's coming next, we call the slide anticipation of semester 2. I can sum it up in one word, that's acceleration, and that's acceleration for two reasons. First of all, yes, we would have expected semester 1 at the higher growth rate, it means we have to accelerate and push the pedal in semester 2. Also we are looking forward to some quite important events ahead of us. That's why management guidance for total year revenue growth remains the same of EUR 22 million. We see the growth will come from. It's three fundamental pillars. We will quite aggressively continue investing into new B2B and B2C acquisitions, both in our focus markets and then in our e-commerce channel. Since July, we are in semester two. That's reality already on the shelves in our e-com platform. We have launched two very strong and high-potential innovations on the market. The number one is Botanic Retinol Serum. That's the purple product you see in the images, which we believe is a high-potential product delivering quite substantial revenue growth. The other product is SOS+ line, which will be a fundamental product to turn around Finland's performance. The last bit is that we are also doing a new concept introduction for our retail stores in Latvia. We just recently, in end of August, opened the first new concept store in Galleria Riga, which is on Dzirnavu Street in Riga downtown. We will facelift other stores in Latvia as well. Please come and visit the new concept stores as well in Riga if you happen to be by. That's it from our side today in terms of highlights of semester one. We hope you have some questions or comments. We'll be happy to answer those. Thank you for sharing the updates. Let's now continue with the Q&A. We have received couple of questions in advance, but if you would like to join and ask your question to the management team of the company, please use the Q&A box that you see beneath the presentation. The first question, how are your sales in the two other Baltic countries, Estonia and Lithuania, compared to Latvia? Will it make sense also to sell the product as Baltic products and not only Latvian products? There through expanding the home bias in the consumer mind from Latvia to Baltics. Yes, I'm going to take this one. It's a two-level question. I will tackle the first part in terms of growth in other two Baltic countries. Indeed we see high double-digit growth in other two countries, Lithuania and Estonia, where Estonia is a higher base market, and Lithuania smaller base market, but still it's a high double-digit growth in both of those. The growth is coming purely from our e-commerce, direct e-commerce. Brand awareness is doing its part in attracting really new customers in these two markets. If you talk about would it make sense to position the brand or set the brand as a Baltic origin, it's an interesting point. I think here is the speculation of how much the origin per se matters. We can give an example of Sweden, sorry, Finland, where I was just recently on last Monday visiting Finland, and MADARA is perceived as almost a Finnish brand. I would really say here, the key proposition of the brand is that it's clean, that it's the performance and function of its product. My take on is that it's less so the importance that it is specifically coming from Latvia or from the Baltics, but it's really about the functionality and performance and the DNA, which is clean, eco-certified formulas. Thank you. I took this one. Which products are the best-selling products abroad, and is there any difference compared to products sold abroad and those which are best-selling products in Latvia? Yes, I will answer this one. Overall, the product basket does not really differ when we compare one country with another. What differs is, for instance, and which is quite clear for tinting segment, the shades differ quite a bit. If we are speaking about best-selling products, unfortunately, I cannot disclose the list, but the categories are moisturizing and anti-aging skincare creams, and also tinting segment, which we mentioned in the presentation. These are the focus areas that we try to achieve growth and which we focus on. Thank you. Question to the CEO, Gunta. What is your vision about MADARA Cosmetics' further development? What do you expect to change in the company, and what do you expect to continue doing? Thank you. I've now been three months with MADARA team and MADARA journey. What can I say from my three months now in the company and really working closely with the team is that we definitely see, and we already shaped 2024, 2026, 2027 strategy, so three-year plan. Definitely what we are going to continue on doing is, and here the key word is focus. Focus on big European markets, and I call it big two, so France and Germany. That's not changing in terms of geographical expansion strategy. With that matter of fact, we are not also changing where we want to be excellent in terms of product proposition. That means it's skincare, and now we are really establishing ourselves, especially in tinted products. In terms of biggest innovations coming and resource allocation, that's going to be on those 2 categories. France, Germany, and tinted products, and skincare. What's going to change? It's a bit, let's say, loud question. For sure, when we speak about the growth at this stage of the company, again, I'm coming to the same word as focus. It means, yes, we are quite present across the geographies, but I think we have reached a phase where we really have to change the resource allocation, how we approach those markets. That means what you will going to hear and see in the nearby future, that we are going to much more vertically focus on these 2 geographies, in Germany and France. That means physical team widening to cover these 2 territories, both to capture new B2B customers. It means investing in sales team. Also, I am fundamental believer of customer acquisition for our brand on digital channels. We are digitally with high affinity brand in the digital environment and digital channels, which will mean in the nearby future and already now, we will fundamentally strengthen our digital channel team. To serve not only our direct eCom, but also other third-party platforms, and to also acquire B2C customers through digital channels. That's in short. Thank you. This was really insightful. Could you please share your company's strategy for balancing product discounts and coupons with the retention of your premium brand image? I'm going to take this one as well. I think it's never an easy one, and I guess what we have observed is that MADARA is a very responsive brand when it comes to promotions, and we see we really attract new customer base on these promotions. On the other hand, I understand where the question is coming from. At what point do you stop, or where is the saturation of those? We have really gone already now market by market and established a clear promotional guidelines, or let's say, frequency and depth of campaigns. Just to say, we will also, in line with these focus markets strategy, readjust and refocus our promotional strategies for different geographies. It means in some markets, we might go lighter in terms of frequencies. In some markets, for example, like home markets, Latvia, we will continue with similar strategy like we have done before because we really see the brand is responding well, and it's delivering results. It's different approaches by geographies. Thank you. Could you kindly remind us, given the growing trends towards eco-friendly and natural products in the market and the increasing number of competitors moving towards natural products, how will you go about maintaining a distinct brand identity in the future? Here, I fully agree to the message built in the question. If 10 years ago we were unique or somewhat unique with our EcoCert and clean formulas, nowadays it's a prerequisite, or it's a right to play. I'm fully there. I think when we talk further about brand's importance and brand's distinctiveness, I'm 100% persuaded, or I believe internally, that it comes really from nothing but excellent formulas in terms of performance. The product, it doesn't matter if it's natural or if it's not natural or semi-natural formulas, and obviously MADARA is playing in a natural playground, but it has to deliver functionally. Again, I will mention the example of tinted products, but I truly believe our laboratory and team working on products has developed exceptionally performing products, and that's why it's responding so well with customer base, that it's not only affinity to organic skincare. It's functionality. Same with retinol. We just launched alternative retinol serum without the negative side effects of retinol, which is outperforming conventional retinol. Again, yes, we have a check mark of EcoCert or clean formulas, but it's ultimately the performance that is driving the brand and building the credibility across customer base. Thank you. All questions are now answered. The recording of the webinar will soon be available online. Please follow MADARA Cosmetics announcements to stay up to date with company's news. Thank you for joining the call today.