Good morning and good afternoon, everyone. My name is Gretchen. I'll be your conference operator today. At this time, I would like to welcome everyone to Coty's second quarter fiscal 2023 question and answer conference call. As a reminder, this conference call is being recorded today, February 8, 2023. Please note that earlier this morning, Coty issued a press release and prepared remarks webcast, which can be found on its investor relations website. On today's call are Sue Nabi, Chief Executive Officer. Laurent Mercier, Chief Financial Officer. I would now like to remind you that many of the comments today may contain forward-looking statements. Please refer to Coty's earning release and the reports filed with the SEC, where the company lists factors that could cause actual results to differ materially from these forward-looking statements. In addition, except where noted, the discussion of Coty's financial results and Coty's expectations reflect certain adjustments as specified in non-GAAP financial measures section of the company's release. With that, we would now open the line for questions. If you would like to ask a question, please press the star key followed by the one key on your touch tone phone. If at any time you would like to remove yourself from the questioning queue, press star two. Our first question comes from Nik Modi from RBC Capital Markets. Hi. Good morning, everyone. I guess two questions. First, on just the glass and the fragrance situation. How is this impacting the innovation agenda in terms of the pipeline and the launch calendar? If you could just provide any context. I apologize I missed some of the earlier remarks. I had some other companies reporting. Could you provide a timeline in the prepared commentary on when you feel like you'll be fully kind of back to normal from a, from a component standpoint? The second question is just would love your thoughts on what you're seeing on the ground in China currently. You suggested an improvement. I just was curious on, you know, some details behind some of those comments. Yes, good morning, Nik Modi. This is Sue Nabi speaking. Thank you again for the question. When it comes to the first part of the question, which is around, you know, the fragrance shortages specifically, focused on the glass components, again, this is indeed the parts of the components that have been the most affected. This is, I would say, an industry-wide issue and not just at Coty, of course. This is improving already at the moment where we are talking. Hence the, you know, the communication around the sequential acceleration of our sales entering in January. This is clearly something that's a very, very good news, coupled, as you can imagine, with the robust beauty demand, specifically on the fragrance side. I would say, these two elements altogether give us a lot of confidence that, you know, we'll have this shortages slowly but surely, you know, fixed into the industry widely and at Coty, of course. That's I would say the way I would describe the story. Did it impact the innovation pipeline? The answer is no. If you look at the way our innovations have been performing on the markets, the results have been, I have to say, outstanding, be it on Burberry. I can start with this brand because, you know, what's happening, for example, in a market like the U.S. behind Burberry is unprecedented. We've done last year the launch of Burberry Eau de Toilette, and then we continued this year, meaning in September of calendar 2022, with the Burberry Eau de Parfum. Eau de Parfum, for the first time, surpassed Eau de Toilette sales, which by the way says a lot about the premiumization of this market. Traditionally, any innovation that's a line extension moving from Eau de Toilette to Eau de Parfum is performing 20%-30% versus Eau de Toilette. In this case, it's bigger, which is a really big, big sign. This one is doing fantastically well. Burberry Her in the US is, you know, climbing the rankings incredibly, which, you know, allowed the brand to become a top 10 fragrance brand in the very competitive US market, which is a jump of nine ranks. If you think about, you know, what we've seen behind Hugo Boss in the rest of the world, because the brand is not as big as it is in the rest of the world in the U.S. If you think about Europe and the rest of the world, Hugo Boss success behind fashion and now translating into the fragrance business allow us to have a top two fragrance launch with BOSS Bottled Le Parfum. If you think about Gucci again with Flora Gorgeous Jasmine, that's the continuity of last year's Gorgeous Gardenia. Again, it's a top two-top five innovation. In a way, the shortages didn't prevent us from posting biggest innovations during calendar 2022 for our key launches. Last but not least, Chloé, specifically behind Atelier des Fleurs. Atelier des Fleurs is really booming, you know, in all the premiumized markets. If you think about the Asian ones, the Chinese one, hopefully that is restarting now. This is clearly another leg of growth for us. No impact on innovation from what we have seen. Last but not least, again, going to China, we read again a lot like all of you know, the headlines of January being better than expected for the economy in general in this country. We've also seen some pictures that we posted during earnings call today, where we see consumers back to stores, which is really a fantastic news for the beauty industry and for our businesses, as you can imagine, having the most important white spaces of the whole industry in terms of companies in this country. There is a confirmation. It's not, I would say, a strengthening slash acceleration of 2 things we have seen, you know, since I would say the Post lockdowns of last year and including some recent studies because we continue to study the consumer's mindset in the country almost on a monthly basis, and we see the premiumization trend accelerating and becoming more radical, if I may say, and building into all categories on 1 side. We see on the other side the healthification trend stronger than ever, which is great for both, you know, our businesses premiumizing and becoming more and more skincare in the country. Last but not least, something very important we are seeing in the country too, is that the shift from, I would say, heritage brands towards new brands acting on the Chinese market is stronger than ever. You know, the highest end consumers are now more open than ever to try new brands, new innovation versus the traditional, I would say, loyalty that we have seen in the past towards more classical and traditional brands. Our next question comes from Ashley Helgans from Jefferies. Hi, this is Sydney on for Ashley. My first question is just on China. I'm curious if you guys are seeing or expect any category mix rebalancing in China, you know, just following that reopening and a return to socialization? Yes, that's a very good question, Ashley. Thank you. No. Is it Sydney, correct? Sorry. Yes. By the way, nice to meet you for the first time. In a way, what I can tell you is that, again, confirming what I just commented on in terms of, in terms of, you know, categories, premiumization, healthification, moving towards new brands, new offering, a kind of speed in terms of transformation of how the Chinese market is looking more and more in terms of brands. I can tell you that there is, you know, a rebalancing probably that will allow all categories to grow. In a way, skincare is the most traditionally fastest-growing category, the biggest category by far, but fragrances on one side and makeup on the other side, of course, as you mentioned it, because there is more socialization, people are getting outside their homes, going back to stores, traveling to Hainan. The travel to Hainan has been, you know, higher than last January if you compare between January this year and January last year. We start to see this, which is really a great, I would say, information for us as Coty, as a company, because it will mean that we will be able to really run on our three legs in China, of course, fragrance, makeup, and skincare with the upcoming launch of Lancaster Ligne Princière in March. Thank you. Just one more on the comment on the dupes. You called out, I think, COVERGIRL and Rimmel have seen a little bit of a benefit from consumers trading down, you know, from the prestige. Is that something that we should understand as, you know, evidence of trade down? Is that something you're seeing more broadly, or is it a bit more brand specific? Sydney, it's not a trade down from prestige at all. In fact, this has existed since, you know, many years. It's been accelerating recently, of course, as you can imagine, because you have more and more consumers, specifically the Gen Zs, shopping, you know, on TikTok and all these kind of social media outlets, making their opinions there before shopping online. These, I would say, consumers in a way, what they are looking for is high quality at an affordable price, which is the reason why we are really working all our brands, you know, to become cool, efficient, clean, because this is what people are looking for, still at an affordable price versus, you know, what is happening in the rest of the industry. When it comes to prestige, we don't see any sign of slowdown on the fragrance business as you can imagine. The importance in fragrances of a brand name is very, very important. People are also shopping a brand name, and this is in a way makes the fragrance category probably the most immune when it comes to any kind of trade down or dupe phenomenon. Of course, on makeup and on skincare, I would say the growth of these businesses is big enough to allow anyone to continue to thrive. Our next question comes from Anna Lizzul from Bank of America. Hi, thank you so much for the question. Just curious, with the momentum you saw in prestige fragrance in fiscal Q2, we're seeing a nice acceleration in volumes in the Nielsen data since the quarter ended. I was wondering if you can comment on the momentum you're seeing post the quarter and to what extent the supply constraints are affecting this as well. Thank you. I haven't heard, sorry, Anna, your second part of the question? Just wondering if you can comment on the momentum that you're seeing post the quarter? Okay. with acceleration in volume Okay, got it. To what extent the supply constraints are affecting it. Yeah, I get it. Thank you so much for the question again. The momentum, sorry, in prestige in fragrances in Q2, again, it's, in a way, explainable first by the very healthy beauty demand for this category. What we love to call the fragrance index is at full effect again, whatever the region again, and this despite, again, you know, glass shortages that all the industry have been facing. The innovation that we've been putting on the market, again, I was quoting Burberry or Libre are clearly having, you know, a role in this momentum that we are seeing in the company. The premiumization of the market, again, I love to give again and again the example of Burberry Eau de Parfum that's selling higher than Burberry Eau de Toilette, which is a first in the history of line extensions, I may say, which says a lot about the upgrading and not the down-trading of this market. This is, I would say, for me a kind of explanation of what's happening, and this is again, as you can imagine, during the quarter without having any, you know, upside coming from the Chinese market, where the penetration is very low and is expected to grow in the coming quarters and years as you can imagine. When it comes to the momentum that we started to see in January, if I may say, this I would really link it to three elements. The first one is, of course, improving of service levels. We are improving with this element quite fast, and we will continue to improve on this element in the coming quarters. Of course, the continued strong beauty demand, which is driving this sequential growth acceleration that we have seen. There is also a phenomenon of, you know, big innovations that are piped in at the moment we're speaking by COVERGIRL in the U.S. market. Again, we referred to this during the presentation. The continuity of the clean lines with Yummy Gloss, with the clean serums, clean tinted serums, clean eye shadows. Last but not least, and I guess this will be a question at a moment or another, the latest, you know, improvement, that's a very strong improvement in COVERGIRL sellout in the U.S. market with the latest four weeks that show a 17% growth of the sales, which is the best performance since a year behind this brand. If you put all these together with a little bit of restocking from our retailers. Now remember, our sales in Q2 were in line with the sellouts, meaning that we start the year with very lean inventories, and therefore there is a bit of restocking. This, I would say, is the bundle of element that explain the start of the year that's accelerating sequentially. Our next question comes from Robert Ottenstein from Evercore ISI. Great. A little bit of, I think, a follow-up on some of the other questions. That is clear. To start off, clearly, you know, significant demand for fragrances, supply chain issues. Is there any way to guesstimate how much those supply chain issues impacted sales in the quarter? I mean, Rob, Laurent is going to take the question. I mean, Sue made the point very clearly that indeed and we have this component shortage, but definitely immediately, we are very tight work with supply chain procurement and really to adjust. So completely what Sue was explaining that in fact we are ending the Q2 with a lean inventory. Now as we are improving service level combined with great demand and great initiatives, in fact, we are seeing really some rebuilding of the inventory and great stuff in Q2 No way. Okay. Clearly enough to call out and material. No. Again, I will not call it material. Again, this was definitely what we did and what we monitored really in a smart way, again, was a conference room. We made sure that we protected our key innovations. We make sure that we're protecting, you know, our pillars. That's really so that, you know, we are protecting really the building blocks of the business and to be consistent in the strategy. Not material. Again, we are seeing some acceleration beginning of Q3. Our next question comes from Steve Powers from Deutsche Bank. Yes. Thank you. Good morning. Two questions, if I could. The first one is just around the price increase that's planned for the end of 3 Q. Just, you know, any further, you know, commentary you could offer in terms of, you know, where that's targeted, you know, how widespread versus how nuanced the implementation of that pricing will be, number one. Number two, you mentioned a couple of times this morning just, the notion that this year's launch pipeline, specifically in prestige fragrances, was primarily composed of brand extensions. I'm just, I'm curious, as we look out to the fiscal 2024, if an early peek into the innovation pipeline, if that is expected to continue or if next year will be a, you know, more of an innovation year that has, you know, more kind of hero products, bigger innovations, that kind of thing. Thank you very much. Sure. Okay. Hi, Steve. On price increase, let me remind that, indeed, I mean, we implemented, you know, mid-single digit price increase in summer calendar 22. It went very smoothly. As I, we explained several times, We have a dedicated pricing office, which started to work in fact, 2 years ago. We did the work in a very granular manner, really SKU by SKU, making sure we combined also with media support, the strategic initiatives. It went very smoothly. It was again, it confirmed the strength of the brand and the professional work we are doing. This was absolutely needed as you saw because it was really the way to mitigate inflation in the gross margin, and that is definitely a key driver of our gross margin expansion in Q1 and Q2. Indeed we shared that we are implementing a new price increase in Q3 fiscal 23, so this quarter. Again, this is what we announced, signal we are, you know, doing again, because same approach, granular work. Again, making sure that we are also completely consistent with the consumer need. We are also working a lot on mix management. It's really because we are seeing really some appetite for premiumization. This is what we are doing on both prestige and consumer beauty. Perfectly on track, detailed work, granular, and again, always focusing that we are matching consumer needs and expectations. Yes, Steve, good morning, this is Sue. On the second part of the question, which is around the launch pipeline that was mainly brand extension. Thank you first for reminding everyone about this and the performance of our prestige business is indeed in comparative with the big, big launches we have made last year. It was Burberry Hero, it was Gucci Flora, and of course Calvin Klein CK Defy. This year, of course, it was line extension. This is traditional in our business, but again, for the first time, line extensions that are towards more premium offerings, Eau de Parfum Burberry is 30% above an Eau de Toilette, has made in a way this second year, a year of continuing growth. You're right, the question is how about fiscal 2024, hopefully we'll be back to blockbusters. Our next question comes from Korinne Wolfmeyer from Piper Sandler. Good morning all, thanks for taking the questions. First from my end, can you just touch a little bit about how you're thinking about China growth for the rest of the year, how much improvement are you baking into guidance? As we look into 2024, how are you thinking about expectations for China there? Thanks. First of all, indeed, hi, Korinne. First of all, we are confirming indeed our guidance 6%-8%. This is and, as you can see with the H1 results, we are perfectly on track. Definitely, China was a headwind due to lockdown. We are betting on acceleration definitely in Q3 and Q4. This is embedded in our algorithm 6%-8%, and this is of course supported by all the strong initiatives that Sue has explained. Definitely that all these initiatives will accelerate in 2024. China will become indeed an acceleration for growth in fiscal 2024. Again, all of this is literally included in our midterm algorithm of 6%-8%. Very helpful. Thank you. Can you just touch a bit on the broader fragrance market? I mean, it's been growing really well the past couple years, the fragrance segment for Coty has been growing even better. Can you just touch on, you know, how sustainable you think this market growth is? Do you think we'll come up against some tough comps at some point? As we think about the segment for Coty, you know, how sustainable do you think that strength is? Thank you. Yeah. Thank you, Korinne. This is Sue Nabi. I'm going to take the second part. Again, when it comes to the fragrance market/the fragrance index, indeed the fragrance market is 25, 20%-30% higher than the levels of 2019. In markets like the U.S., again, and you may know this, the prestige fragrance market is over 60% higher than compared to pre-COVID levels. Again, it's hard to see how this would just be driven to some one-time factors, I have to say, and sometimes I hear this, and I do believe it's not the right explanation. Historically, this has been a big gifting category, but what we are now seeing in consumers using fragrance as part of their daily routine, and this business has become really a health business, mental health business, I would say. Fragrance is being seen as mood boosters, allowing people to feel better in their daily day-to-day life. In particular, during the last couple of years, we have seen increased usage by new categories where the penetration has increased. Structurally, I'm thinking about Gen Z, I'm thinking about men, and I'm thinking about Hispanic consumers if, of course, I'm focused on the American market. We are also seeing, at the same time, the rise of fragrance influencers on social media, specifically TikTok, but also on YouTube, which is also helping to drive sustainable growth for this category. They are driving discovery of different fragrances. They are providing authentic ways for consumers to engage with the product virtually before purchasing, which is really new. It's a new kind of sampling, if I may say, virtual sampling. We are also noticing, particularly with the younger consumers, that they are using fragrances more and more. The penetration in the U.S., to conclude with, is in the high 20s level, which is still well below that of Europe, which is closer to 50%, not speaking about the Chinese penetration, which is around 3%. This gives you, I would say, a zoom out of what is coming soon with this fragrance category globally. Our next question comes from Olivia Tong from Raymond James. Great. Thanks. Good morning. First I wanted to talk about China and the reopening, and now that, you know, reopening is happening, what can go into place that couldn't over the last couple of years? Could you talk a little bit about how much opportunity there is for you to grow shelf space and the conversations that you're having with your folks on the ground or with retailers, particularly in travel retail? Thank you. Yeah. Good morning, Olivia. Thank you for this question, which is indeed a very important question. Again, just to refer to our daily life last week in Amsterdam, we had, you know, people from all around the world spending a week for the first time since many, many, many, I would say, months and quarters all together, including the Chinese general managers, the APAC general managers. Everyone was in the same room, in the same place, spending 5 days discovering all the new innovation for fiscal 24 and above. I can tell you that the level of confidence I have seen on the faces, specifically the Chinese general managers and teams and marketing director, was, you know, a very, very strong sign of how they see Coty in this market, where the opportunities are almost endless for a company like ours. What do we do better? Again, you know, in a way, if I may say, I love to give this image of, you know, sometimes, destiny needs to help you. In a way, we had 2 years and a half to strengthen, to prepare, to strengthen our fragrance business, to strengthen our makeup business, specific on the prestige side, to put, you know, ideas, intelligence, and marketing behind the brands like adidas or Max Factor that are two big brands in the Chinese market. Last but not least, to fully prepare for first skincare launch in China, which is happening in next month as we are speaking. In a way, this is what's different. You know, it's absolutely not the same Coty that we started doing beauty business in China in March than the one that was, you know, doing business just 2 years ago. Our next question comes from Andrea Teixeira from JP Morgan. Thank you, my question. I was just, like, hoping to see if you can talk about a little bit of the prestige side in terms of, like, how you parse out skin and I know Lancaster was a big launch vis-a-vis fragrances. Of course, I mean, fragrances are the main motor of that. I was wondering the exit of the quarter, we did see, not to take credit for it, but we did see the deceleration for the quarter. Even at EMEA, Russia, it's probably coming in below expectations and of course, understanding all of the supply chain issues. If you can help us understand how skin vis-a-vis fragrances and the exit of the quarter. Thank you. Yes. Good morning, Andrea. Thank you for the question. If I understood well, you were referring to, you know, the quarter deceleration in fragrances. Again, I do believe that this is not the way. You should read the figures, if I may say. You know, again, I reframe the story around our Q2, saying that this performance, given the shortages, given the boom of the demand, given the pipe of innovation last year, which were, you know, unprecedented in the history of Coty, is a very, very strong performance, I have to say. That's really the way I see it, and I really see skincare specifically on the Chinese market as an additional layer, and not something that's supposed to compensate anything there. Skincare is really for us, an additional, I would say, growth driver and a new journey for the company that's very, very important, as you can imagine, if we want to become a beauty giant in Asia. Really continuous performance on our fragrance business, strong performance on our prestige business, specifically in the U.S. without China, as you can imagine, that was under lockdown during the full quarter. Last but not least, adding a new leg, which is the skincare leg, starting with Lancaster. Of course not referring, but again, you give me the opportunity to refer to this, the figures of the relaunch that is going to happen also in the coming months. Last but not least, the extension with the high premium offer behind our radar that's happening in the coming quarters. Our next question comes from Chris Carey from Wells Fargo Securities. Hi, good morning. Good morning, Chris. Morning, Chris. I, just a follow-up on Andrea's question, just around, you know, individual category growth. You know, I appreciate last quarter the body care launch, you know, had some impact that was favorable. I think if I heard you correctly in the prepared remarks, you said that growth was more balanced across your categories between fragrance and body care and makeup. Can you maybe just contextualize, you know, how category delivery was for you in the quarter on a like-for-like sales basis and maybe what your expectations are, you know, for the full year in the context of your full year like-for-like sales guidance? Thanks so much. Yeah, indeed, Chris. I mean, what you're highlighting, right, is definitely a strength for Coty, indeed, that we have a balanced portfolio and indeed that we have in our, you know, both divisions. Now we have, I would say, you know, subcategories which are performing really well. Just on prestige, I really want to emphasize again that of course we have fragrance, but now we are seeing prestige makeup and skincare, which, you know, are accelerating and will be strong growth drivers. On consumer beauty, it's definitely also the same case. Consumer beauty, now we are seeing, I mean, a strong acceleration in body care. Definitely so adidas, successful innovations in Q2. With a really, you know, price up, it's really, you know, high, high mix in terms of high value for the consumers. Indeed we are seeing some, you know, great traction. It's coming even on top of color cosmetic, you know, mass fragrance. Indeed this is a great acceleration. I want to highlight also that we have also very strong performance in Brazil. Okay? Where body care. We have very strong brand, and also, you know, we can also create, you know, some cost synergies, you know, with the rest of the business. This is definitely a strength for the company. And definitely, to conclude on skincare, this is definitely what, you know, will accelerate in H2 and beyond, of course, in fiscal 24 and fiscal 25. Our next question comes from Linda Bolton Weiser from D.A. Davidson. Hi, good morning. I was curious, as you increase your spending on advertising and promotion over time, can you talk about where you're seeing the best ROIs? As you spend more, are your ROIs actually improving over time? Thanks. Good morning, Linda. That's a very important question. I would say this is the daily focus of the organization. Let me step back a little. This is what you are highlighting here is now fully part of our All In to Win umbrella. All In to Win, you know, we started to focus on fixed costs, then on cost of goods. Now we are really addressing all the agency fee we are investing, and we are building methodology to, of course, combine with marketing teams, digital teams, and commercial teams, that now we are getting fully equipped to measure and to optimize ROI. This is the number 1 focus. Also we are improving because as we shared just before, we are now also growing different categories. Definitely the way you spend money in skincare is different versus the way you spend money in fragrance. These are really now capabilities that we have built. Sue was right to say that, you know, we use over the last two years this time to build these capabilities. ROI is the key word, definitely making sure that each dollar we are spending on either on innovations or base business every time is decided based on ROI and is reviewed by Sue and by myself and of course with the lead team in in a recurring session. That's absolutely so that we make sure we are making the best of our money and the best ROI for the coming quarters. Our next question comes from Mark Astrachan from Stifel. Yeah, thanks. Morning, afternoon, everyone. 2 questions from me. One, just first on the consumer beauty. Still gaining share there. The rate of increase narrowed a little bit in the quarter. I guess, what would be your expectations going forward for that? Maybe sort of related to that, curious about your views on the length of the current beauty cycle, which has obviously been a couple of years now coming out of the kind of the teeth of the pandemic, mask wearing, et cetera. Fragrance and makeup have been drivers of the beauty category. Is it reasonable continues, and kind of what would be your expectations for the length of the current cycle? Thank you. Yes. Good morning, Mark. Thank you for these 2 questions. Sue speaking. Again, when it comes to consumer beauty, you're right to point out on the fact that consumer beauty is entering a new cycle, in fact. The first cycle that started somewhere around Jan 2021 was really to reinvent the brand equity, sometimes coming back to historical brand equities, strengthening these, modernizing these, creating great advertising with the highest ROI, as just mentioned by Laurent. This was really what explained, you know, the back to market share gains, which happened now for a full year. This is the first time since 2015 that this division is gaining market share for a full year. This was stage 1. Stage two, in a way, I love to say that stage one was fixing the surface, if I may say, stage two is really getting deeper, we start to see real, I would say, disruptive best in class in terms of efficacy in the market innovation. This takes time. It takes 1 year and a half to create a fantastic mascara, fantastic foundation, or a long-lasting lip color. This is now the moment of this. You can imagine that consumer beauty businesses, specifically behind makeup, are going to continue to put on the market big innovation supported by excellent advertising, having the best ROIs in the company. On top of this, we have the adidas bets. You know, we've talked to you about adidas last quarter. We started in Eastern Europe, sorry, with very strong results, specifically on high-end shower gels. Now we are implementing this innovation in the Western world. As you can imagine, this has a big potential also, this brand, in China, where the brand is cooler than ever, and it's already the number one shower gel brand for Chinese men in this country. You can imagine us building this brand into a wellbeing, high-end wellbeing brand in Europe, in China, and hopefully in the rest of the world, as you can imagine. Now to answer the second part of your question about the beauty cycle, again, I'm a strong believer that the main thing that has changed since a few years now is what I call the healthification of the beauty industry. This industry is about things that make people look better or feel better, this becomes something that's a non-negotiable for consumers. There the limit is only us in terms of ability to innovate, to tell new stories, to bring new brands and new technologies, to continue to make the consumer interested in our category, because this is a deep need and not something that is nice to have. The last question comes from Carla Casella from JP Morgan. Hi. Thank you. You talked about prestige, high single digit growth in mass, mid-single digit. Can you talk about how much of that was new doors, or is that mostly just pure sell-through of kind of the new products you've been talking about? Yeah. Hi. Basically, I mean, the model, you know, we are using for prestige and consumer beauty, this is, you know, mostly organic growth. Also definitely either prestige and consumer beauty. Definitely, if I take the case of consumer beauty, now step by step, we are seeing that, you know, we are getting shelf space. Definitely that success of innovation, acceleration of rotation, by all these elements, step by step, we are regaining attraction, trust with consumers and retailers. This giving us, you know, absolutely all the ammunition now to gain shelf space. That's really we are building. This building blocks are done in a healthy way. That's really, you know, back always we talked about discipline that we are doing definitely with the marketing teams, either consumer beauty or prestige. We are really focusing on productivity per door. Okay? That's again, we are talking about the right productivity per door is absolute KPI. Once we optimize productivity per door, then of course we are working on new doors but with very selective criteria that we enter in new doors only and if only, we are guaranteed that productivity is really at target level. I think we've reached our allotted time for question and answer session. I will now turn the program back over to our speakers for any additional or closing remarks. Yes. Thank you everyone for your questions. If you allow me a few closing remarks. The first one is about, you know, the category beauty is, and will continue to be the darling category of consumers around the world for all the regions we have mentioned during this earnings call. Please see, Coty in its reinvention stage 2 phase, you know, entering into, you know, real innovation, fantastic ROI behind advertising, new white spaces in terms of regions, categories including skincare and of course targeting leverage power 3 times at the end of this calendar. Last but not least, I would say that given Coty is not in its maturity phase, as you can imagine, we will continue to grow given all the white spaces that we're having. The last remark is that it's very important that the long-term vision and view is really the one that is at play at Coty, and we are building this company for the coming, I would say, decades to become a true beauty powerhouse. Thank you very much. Thank you, ladies and gentlemen. This concludes today's teleconference. You may now disconnect.