Hello, and welcome to 9M 2022 trading update conference call. My name is Priscilla, and I'll be your coordinator for today's event. Please note this call is being recorded, and your lines will be on listen-only. However, you will have the opportunity to ask questions at the end during the Q&A session. This can be done by pressing star one on your telephone keypad to register your question. If you require assistance at any point, please press star zero and you'll be connected to an operator. I will now hand you over to your host, Mr. Tako de Haan, the CEO, to begin today's conference. Please go ahead, sir. Thank you. Good morning, all. This is Tako de Haan, CEO of B&S, and with me here today is Mark Faasse, our new CFO. Welcome, Mark. Thank you, Tako. To your first official analyst call. I will take you through the highlights of the nine-month trading update that we published this morning, and after that, I would like to open the call for Q&A. Let me give you some detail on the first nine months of this year. Overall, the turnover increased by 18.7% to EUR 1.527 billion. On a constant currency basis, turnover increased by 13.7%. Organic turnover increased 17.9% or 13% on a constant currency basis. Staff costs increased due to the challenging labor market and inflation. In Q3, supply chain constraints started to slowly normalize with exception of the beauty segment and the international liquor market. Now let me zoom in a bit more on the market circumstances by segment. Starting with B&S Liquors. The 27.4% growth in turnover for this segment was driven by the absence of COVID restrictions in the European markets, as well as continued increased amount for specialty items in the international market. However, growth in Q3 was less steep. This was due to the increased consumer inflation for the European market and supply chain constraints following the zero-COVID policies for the international market. Gross profit margins for the first nine months slightly exceeded last year's results, because of our strong stock positions. Continuing with B&S Beauty. Beauty increased turnover by 8% when compared to the last period of 2021. This was driven by acquisitive growth and a strong US dollar. The B2B business in the beauty segment continued to see the impact of an industry-wide product scarcity. This resulted in a decreased turnover, yet at increased margins. The B2C business, FragranceNet.com business, increased turnover influenced by the US dollar. In 2022, the margin levels for this business declined as a result of increased marketing and shipping expenses versus the same period last year. Next in line is B&S Personal Care. Turnover for this segment increased by 8.3% because of continued growth of our sales to key customers. This growth was supported by well-managed stock positions. It enables us to meet increased demand after the on and off shop closures of value retailers in Europe throughout 2021. Moving on to the B&S Food segment. Turnover grew 23.1% when compared to the first nine months of last year. Our brand distribution services saw a better than expected recovery of the duty-free and travel-related market. Our food service business outperformed following increased demand in the maritime market, supported by the automated order processing via our Nfinity platform. However, this performance was partly offset by the lack of growth in the remote business. That brings me to B&S Health. Turnover grew by 4.3% compared to the first nine months of last year, mainly because of the recovery in the travel and flu vaccine business during Q3. Gross margins slightly decreased due to the increased transportation cost in the export business. These costs could only be partially passed on to the customer. Last but not least, B&S Retail. The retail segment increased turnover with 145% in the first nine months of 2022. Turnover growth in Q3 was less steep as Q3 in 2021 because we benefited from easing the travel restrictions in that quarter already. That brings me to the outlook. For Q4, the performance of the personal care segment is expected to continue because of increased demand and strong stock positions. Furthermore, we foresee the performance of our health segment to continue into Q4. Looking at retail, we project further turnover growth aided by the opening of four additional airport shops. On the other hand, in the food segment, we anticipate decrease in turnover, yet at similar margin results. In our beauty and liquor segment, the current market circumstances are expected to continue. This will impact turnover, margins, and operational expenses in the traditionally and seasonally strong last quarter of these two segments. To elaborate on these market circumstances, consumer inflation is likely to continue making an impact and therewith affecting consumer spending patterns, especially for the higher-end product ranges. Adding to this, the strong US dollar is negatively affecting demand, especially in the international liquor market. This market traditionally peaks in the last months of the year in preparation for Chinese New Year. In the beauty segment, we expect ongoing product scarcity to affect growth in the last quarter, in particular for LVMH products. Given the fact that our liquor and beauty business historically peak in Q4, we expect the current market circumstances will substantially impact overall results for the full fiscal year. To conclude our session today, I want to make a general statement. Most of you will have noticed the recent articles in a Dutch newspaper about a private investment by Mr. Blijdorp. We wish to emphasize that none of the B&S entities has or has had any interest in relation to this private investment. We understood from Mr. Blijdorp's advisors that at the time of this investment, it was the intention to obtain exploration licenses for the production and export of marble or similar stone types. This was not subject to the sanction rules in place at the time. The matter was investigated by legal experts already in 2016. The resulting conclusion was that the investment did not violate the sanction rules enforced at the time. We therefore have no indication that B&S violated any sanction regulations in this area. Realize that this concerns a situation from 2016, so from over six years ago, even two years before the company's IPO. Nevertheless, given the recent publicity on this issue, we are studying the situation to assess if this requires any further action from our side. For now, we have no other information to share on this topic. That ends our highlights for the nine-month 2022 trading update. I would like to hand over to the operator for Q&A. Thank you, Mr. Tako de Haan. Ladies and gentlemen, as a reminder, if you would like to ask a question or make a contribution on today's call, please press star one on your telephone keypad. To withdraw your question, please press star two. We'll pause for a moment to allow everyone an opportunity to signal for questions. We'll take our first question from Tijs Hollestelle. Please go ahead, sir. Your line is open. I've been promoted to the podium. Thanks, operator. Yeah, morning, gentlemen. Yeah, my first question is about the comments in the beauty division. Higher margins. I guess that you're referring to the, let's say the 6% EBITDA margin you reached in the H1. This statement is not referring to the +9% margins you achieved last year. No, I think as discussed this morning as well, Tijs. The beauty segment and especially looking at the B2C business we do in that segment. In the prior years, I would say the prior COVID years, we realized higher margin than we normally did based on the high demand for online beauty products. Therefore, what we see now is that those gross margins are normalizing and back to pre-COVID levels. Yeah, there is normally a kind of a historic relation that the gross margin in the second half of beauty is lower. Yeah. That's, yeah, because of the strong inflation, I guess that your OpEx continues to grow as well. Despite that, you're expecting a higher margin indeed on the second half compared to the first. Maybe slightly, Tijs. That is also because of the product scarcity, and that drives the prices a little bit up. Yeah, but with regard to the general statement regarding EBITDA margin, yes it is true that the larger part of the turnover is again indeed in the H2. Then when your fixed cost base, although already inflated, but when your fixed cost base has been leveled, then in the end you realize a higher EBITDA margin. That's your question? Yeah. Okay. Yeah. Thank you. Yeah, and then also on the food business, you're providing the guidance on the fourth quarter as you expect it to go down. Were you surprised by the increase in the Q3? Because I read in your Q2 results release that you already spotted, let's say, an increase in order, but yet the uptick in the Q3 is quite strong. What is then happening specifically? What are the dynamics for such a strong increase? Yeah, we did see a higher than expected recovery of all duty-free and travel-related business along with the increased turnover in the maritime business, of which along with the cruise demand. For the Q4, I think the effect will be twofold. Last year, because we do compare it with the Q4 of last year. Sure. What we did see last year was some additional turnover from remote contracts, which we do not expect to see this year. Secondly, turnover type business like the cruise business is expected to gradually decline as the main cruise season has been passed. Yeah, that's clear. Also on food, you had of course the impact of the doubtful debtor. Mm-hmm. The write-down. Yeah. Significant impact on the cost base, or is the cost base, let's say, in the H2 progressing as normal? Yeah. Until this stage, yes. It's back to, let's say, at least an positive EBITDA number again. Exactly, yes. Okay. I have some other. We also, with the full year figures, will clearly indicate, as you might expect, the impact of this one-off to get a better understanding of the, yeah, let's say, through-the-cycle performance of this segment. Yeah. Okay. It is really a one-off concentrated in the H1, so there's no legacy in the H2 in that matter. To be quite frank, the position itself has not yet been fully closed, but at this stage, this is the exposure we had, and we had to take into account into our figures. Yeah. Okay. Now one final question on yeah, basically the dynamics in the liquor division. Also here, I mean, massive organic growth in the first half. I understand the dynamics also relating to the COVID situation year-on-year. What were the other dynamics for the a lot steeper decrease in the organic growth in the Q3? Could you explain that a little bit too? Thijs, we've seen in the Asian markets that they are closing harbors and opening harbors as the COVID hits. That basically limits our possibilities to ship our international liquor business there. Yeah, cities are being closed in different Asian countries. That impacts our distribution. The Asian liquor business is also more profitable compared to the European liquor business. Is that still the case? Yeah, I think it's especially regarding volume-wise. Look, if we and then also to give some highlights on the European liquor wholesale business comparison, we do see the early signals that consumer spending is starting to drop based on the inflation. So combined, the outlook for the Q4 for the liquor segment is as stated. Yeah. Okay. Yeah. Thank you. Thank you, sir. We'll now move on to our next question from next participant, Robert Jan Vos from ABN AMRO. Please go ahead, sir. Your line is open. Yes. Hi. Good morning, all. A few questions from my end. Getting back to the food business, I think at half year you said that the expected growth in second half will be driven by personal care retail and European part of the liquor business, mainly. There was no mentioning there of the food unit, so it still seems a bit as if Q3 was really yeah a surprise. So maybe a positive surprise to you as well. Maybe you can comment on that. Related to the guidance you gave for the food unit for Q4, you said to expect a decrease in turnover. I assume that relates to the constant currency development, so excluding the impact from currencies. That's my first question. Yeah. To get back on the, on the, let's say, food segment, as also indicated, yes, the performance and the recovery of all the travel related business, like border shops, et cetera, that did perform better as compared to our expectations. That's for sure. Along with the recovery of the cruise and fuel maritime business we serve, that was much better than initially anticipated. Secondly, regarding the outlook for the food segment. That indeed your statement is correct. That's excluding the impact from currencies? Yes. Okay. That's helpful. Thank you. A question on FragranceNet. I think you mentioned in the press release that FragranceNet reported revenue growth originating from the strong US dollar. Are you referring to the nine months or the Q3? Or maybe both? That's the first part. Secondly, can you share, because the US dollar strengthened by 17% in Q3, so can you share what FragranceNet's sales growth has been excluding this currency impact in Q3? Without getting into too much detail on a company by company basis, but indeed, the impact itself, the US dollar impact on B2C slash FragranceNet turnover is impacting both the Q3 as well as the year-to-date Q3 turnover. For dollar- for- dollar comparison, sorry, the turnover was struggling throughout the year. Looking at the Q3, at our sales, as, let's say, the example I was giving this morning as well, we are now currently looking at the discount coupon rates which are given to customers to keep the turnover on a dollar for dollar level at the old levels. Although we do struggle in this segment, we see the turnover picking up again in the normal levels. Okay. That is, that's clear. Thanks. Yeah. Maybe on the guidance, it is rather qualitative in nature, but I think to me it's obvious that Q4 growth, pluses and minuses there, of course, it's very likely to be lower than the +10% that you reported in Q3. Is that a fair conclusion? That's first question. Secondly, you mentioned EBITDA profitability guidance of 5% at the half-year results for this year. Mm-hmm. It's not reiterated nor withdrawn in the press release, so what should we think of that? Maybe you can elaborate on it. Okay. Turnover-wise, let me start. Turnover for the outlook which we try to give should be read as an indication that from a comparison quarter- to- quarter, we expect the Q4 to be relatively flat instead of the peaking turnover growth which we have seen up to the Q3. Definitely not the 10% you just referred to. I would say it would be relative based on the comments we give, the conclusion would be that the growth would be relatively flat for the Q4. Okay. Regarding the EBITDA statement which we provided as per half year. Look, the challenging economic circumstances which we provided also in this report as well will make it very challenging, that's for sure. We at this stage did not see any reason to withdraw that statement. We're still following the half-year guidelines that we published. Okay. That's that. Very helpful. Okay. Yeah, if I may. Sure. A couple of other points. You mentioned you talk about increased labor costs in the press release. Obviously wage increases, is it in any way also related to an absolute increase in the number of FTEs? That's my first question. Secondly, I saw that temporary staff costs were materially subdued in 2020 and 2021, obviously related to COVID and lockdowns and what have you. Mm-hmm. Is it fair to assume that these costs, because we don't have that granularity at half-year results, is it fair to assume that those costs will increase sharply in 2022, so the temporary staff costs? Yes, in twofold, I think. That's the temporary staff costs. That's basically the rates which we hire the external labor is also impacted by the competition we face on those type of labor. In the logistics departments, if the other companies around us are increasing the market rate for this type of labor, of course our company is affected similar. We also, of course, added more staff to the retail shops. Yeah. Those costs also went up because there's a fierce competition for retail personnel and, yeah, it's driving the wages up. Get back to your first or second part in your question regarding the number of employees. I think in general we can state that the number indeed also based on the volumes we processed went up. Okay. That's clear. Finally, sorry that I dwell on a lot, but I took the opportunity. I have a question about the beauty company in France that you acquired. Mm-hmm. You said in May that it realized EUR 33 million turnover in 2021. Of course, that's very likely there's seasonality in the business towards H2 and then probably Q4. Even when you take this into consideration, the EUR 4.9 million sales contribution in Q3 seems a bit low. Can you elaborate? Is that seasonality? Can you elaborate on this? The seasonality is definitely there. It's a beauty company serving both business to consumer through e-commerce as well as some, what's the correct word again, the French entrepreneur. Comité d'entreprise. Yes. Thank you. Yeah, basically what we saw there is also that this business is impacted by the scarcity of products. Product availability is one of the main items which this business was confronted in the third quarter as well. From the purchase orders put down, sometimes from every 100 items ordered, an amount of 50 or 60 were delivered. Okay. Those were my questions. Thank you. Great. Thank you, Mr. Robert. Once again, ladies and gentlemen, if you would like to ask a question, please press star one on your telephone keypad. Thank you for the questions. It appears there is no further question at this time. I'd like to turn the conference back to you, Mr. Tako, for any additional closing remarks. Thank you. We have no additional closing remarks, but we would like to thank each of you for your participation this morning. If there's further questions, you know how to reach us. Yeah, investorrelations@bns-group.com. Thank you. Thank you for joining today's call. You may now disconnect.