Antoine Maillet-Mezeray; Jumia Technologies AG; Executive Vice President Finance & Operations
Good morning ladies and gentlemen. Thank you for standing by. Welcome to Jumia's results conference call for the 4th quarter of 2024. At this time, all participants are in a listen-only mode. And after the management's prepared remarks, there will be a question-and-answer session. I would now like to turn the call over to Ignatius Njoku. Head of investor relations for Jumia, please go ahead.
Thank you. Good morning, everyone. Thank you for joining us today for our 4th quarter 2024 earnings call. With us today are Francis Dufay, CEO of Jamea, and Antoine Maillet-Mezeray, Executive Vice President, Finance and operations.
We would like to remind you that our discussions today will include forward-looking statements. Actual results may differ materially from those indicated in the forward-looking statements.
Moreover, these forward-looking statements may speak only to our expectations as of today. We undertake no obligation to publicly update or revise these statements. For our discussion of some of the risk factors that could cause actual results to differ from the forward-looking statements expressed today, please see the risk factor section of our annual report on Form 20 as as published on March 28, 2024.
As well as our other submissions with the SEC. In addition, on this call, we will refer to certain financial measures not reported in accordance with IFRS. You can find reconciliations of these non-IFRS financial measures to the corresponding IFRS financial measures and our earnings press release, which is available on our investor relations website. With that, I'll hand it over to Francis.
Good morning, everyone and thank you for joining us today. I will start the call with an update on the business and greater detail on our growth strategy for 2025 and beyond. I will then turn things over to Antoine for a deeper look at our financials.
Overall, 2024 was a year marked by continued progress against our strategic growth initiatives. Our focus was on building the business and positioning Jumia for long term success. Throughout the year, we extended our reach beyond main urban centers into upcountry markets, expanded our product assortments, improved our cost structure, and enhanced our logistics capabilities, driving higher customer engagement and improved unit economics.
Towards the end of the year, we streamlined operations by consolidating our warehouse footprint and exiting our non strategic markets, South Africa and Tunisia.
Following these exits, we continue to operate in 9 countries. These strategic actions have been crucial to our success, excluding South Africa and Tunisia, our core marketplace business accelerated in Q424. Physical goods order grew by 18% year over year, with even strong growth in December. Highlighting the increased demand on our platform.
Quarterly active customers increased by 8%, underscoring the strength of our platform and the value we deliver. Notably, these results were achieved while reducing marketing spend from $6.2 million in Q4 23 to $4.8 million in Q424.
Demonstrating our commitment to impactful cost-efficient marketing strategies. A key growth driver in Q424 was our Black Friday sales event, our largest of the year, held across nine countries in November. The strong performance of the event demonstrates our ability to provide the right product at the right price for Africa's value conscious customers. In Q424, demand was particularly robust in priority categories such as electronics and phones.
In this quarter, our expanding international sourcing played a significant role in the success, with 3.4 million gross items sourced from international sellers, mostly from China, accounting for 31% of gross items, up 61% year over year. We also strengthened our Black Friday partnerships with global brands like L'Oreal and Xiaomi, both top sponsors of the event.
Personally, we continue to improve our efficiency and the customer experience. Our net promoter score rose to 63 in 24, a 17 points year over year increase, while our 90 days repurchase rate increased 375 basis points year over year, reflecting stronger customer loyalty and satisfaction. Notably, 40% of our new customers who placed an order in Q3 24 made another purchase within 90 days, up from 37% in Q3 2023.
Despite strong momentum and robust customer demands, micro headwinds continue to affect our performance. GMV declined 12% in USD but grew 13 year over year in constant currency. Reflecting the impact of early 2024 currency devaluations and a reduction in corporate sales. As a reminder beginning in Q423. Jumia benefited from strong corporate sales to local and regional distributors, particularly in Egypt.
However, this trend reversed in Q4 24, highlighting the cyclical nature of demand. Average order value for physical goods orders decreases from $45.5 in Q4 23 to $35.5 in 24. This decline was driven by currency variations and lower corporate sales.
We view this mixed shift as an opportunity to improve our relevance in selected categories, improve other level profitability and support healthy usage growth. Revenue in the quarter was $45.7 million down 23% year over year in USD, and then 2% in constant currency driven by the same factors that I have just mentioned.
Adjusted the EBITDA was negative $13.7 million compared to negative $6 million dollars in 423. Last before income tax from continuing operations was $17.6 million in the quarter compared to $17.1 million in Q4 23.
Antoine will elaborate shortly on Q4 24 loss before income tax from continuing operations. Cash burn for the quarter was $30.6 million compared to $26.8 million in Q4 23. This was primarily driven by the following. One-time termination costs of $1.3 million related to the closure of our operations in South Africa and Tunisia. Working capital increase of $13.5 million aligned with our strategy to expand assortments and secure more goods at competitive prices.
While we significantly increase our working capital in the second half of 24, we expect smaller adjustments in the future. Capital expenditure of $1.8 million primarily invested in logistics equipment or fulfillment centers opened in 2024.
And the payment of $2.1 million of equity transaction costs from the August at the market offering. Looking ahead, we are confident in our path forward is a much stronger and much more efficient business than it was just 2 years ago. We have introduced greater operational discipline, started a clear usage growth trajectory, and established a solid foundation to build upon in the coming years.
In 2025 we will continue building on this foundation with a focus on two key areas driving top line growth and achieving broader operational efficiencies to enhance profitability and strengthen cash flow. We see multiple levers to drive growth. First, upcountry expansion. We are doubling down on upcountry expansion to unlock new markets and address underserved regions without increasing fixed costs.
Demand outside the main urban centers remains strong, with upcountry orders accounting for 56% of Q4 24 and 54% of full year 24 orders up from 49% and 48% in Q4 23 and 23 respectively.
Leveraging our differentiated logistics network and deep partnerships with third party providers. We are expanding pickup stations outside main urban centers. We believe this expansion will drive lower fulfillment costs while strengthening customer trust and engagement. Our extensive 3PL network represents a competitive mode of other e-commerce players lacking the necessary infrastructure for delivery beyond major cities.
Second, Product assortment extension. We plan to expand our product assortment at affordable prices by sourcing directly from international sellers. This approach allows us to procure high demand products directly from key manufacturing countries like China and Turkey.
China remains a strong sourcing hub, and we are strengthening our teams and deepening supplier relationships. Our progress in international sourcing is evident in our 2024 full year performance, with 9.5 million gross items sourced from international sellers, mostly from China, accounting for 28% of gross items, up 38% year over year.
Outside China While diversifying our sourcing network by onboarding new sellers and adding products from other countries, including Egypt and Turkey.
In late 2004, we partnered with Hepi Borada, a leading Turkish e-commerce platform to introduce affordable Turkish brands to Jumia. Building on this momentum, we will continue scaling our intentional sourcing initiatives to drive rapid expansion.
Third, customer and seller experience. In 2024 we updated our cellar platform to streamline and simplify the cellar experience. Beyond growth, driving greater efficiency is critical to achieving break even.
We remain focused on marketing efficiency by prioritizing low cost or free channels, such as our revamped CRM and localized offline channels like paper catalogs, reminiscent of the iconic CIS catalog in the US. These offline strategies, including Bottom of the Pyramid initiatives, drive strong engagement and credibility.
We are also increasing our gforce presence with the number of active GForce agents reaching 29,000 in Q424. Representing a 39% increase year over year. Looking ahead to 25, we plan to further expand our Gor prisons, particularly in regions outside the main urban centers.
Then in logistics we aim to increase productivity and benefit from our more streamlined warehouse footprint established in 204. We are also increasing productivity with automation in our call centers, where chatbots handle more basic customer inquiries.
We believe our tech platform can scale significantly without material additional costs. Overall, I am energized by our progress on business fundamentals are clearly visible in usage growth and efficiency metrics.
We believe we have the right strategy and the right team in place to drive meaningful expansion across the business. By driving top line growth, improving operational efficiencies, and maintaining disciplined expense management, we have a clear line of sight to achieve profitability. We are delivering positive gross profit after deducting all fulfillment expenses. In 2024, it was $57.6 million which is 8% of total GMV.
Hence, our focus is on building scale while further improving efficiency. The usage trends and GMV growth trajectory we delivered this quarter give us confidence that we're on the right path. To summarize, we are optimistic about Jumia's future, as 2 years of committed efforts are now delivering results.
I'd like to thank our employees for their hard work and dedication during this time. We are now well positioned for growth and acceleration and further progress towards profitability. I will now turn the call over to Antoine for a review of our financials.
Antoine Maillet-Mezeray
Thank you, and thank you everyone for joining us today. First start with a review of our top line performance. Fourth quarter revenue was $45.7 million, down 23% year over year and down 2% on a constant currency basis for the quarter. The decline in revenue was primarily due to lower corporate sales in Egypt.
As a reminder, Jumia experienced strong corporate sales in Egypt starting Q423, driven by high volume purchases from local and regional distributors. This trend reversed in Q4 24 as corporate buyers scaled back purchases amid macroeconomic uncertainties and shifting procurement cycles.
For the full year, revenue was $167.5 million, down 10% year over year, up 17% on a constant currency basis for the year. Marketplace revenue for the fourth quarter was $22.8 million down 31% year over year and down 11% on a constant currency basis.
On a full year, marketplace revenue was $89.4 million, down 9% year over year and at 21% in constant currency. Fourth quarter revenue from first-party sales was $22.5 million down 14%, but up 8% on a constant currency basis. For the full year, revenue from first party sales was $76.5 million, down 11%, but up 14% on a constant currency basis.
Turning now to gross profits. Fourth quarter gross profit was $23.9 million, down 36% year over year, or 18% on a constant currency basis. For the full year, gross profit was $99.5 million, reflecting a 7% decline year over year, but up 23% on a constant currency basis. Gross profit margin was impacted by macroeconomic headwinds, including currency devaluation and reduction in corporate sales, as discussed earlier. Gross profit margin as a percentage of GMV for the fourth quarter was 12% compared to 16% in Q4 23. For the full year, gross profit margins stood at 14% compared to 14% in 2023.
Turning to expenses, we are pleased with the progress in reducing costs and remain committed to driving further operational efficiencies in 2025. Finland expense for the quarter was $12.9 million, up 11% year on year, and up 36% on a constant currency basis. For the full year, fulfillment expense was $41.9 million a 4% decrease year over year, but a 20% increase on a constant currency basis, partly driven by external factors such as fuel prices denominated in USD.
Fulfillment expense per order, excluding Junior pay app orders, decrease to $2.24 down 4% or up 19% year over year on a constant guarantee basis. Sales and advertising expense was $4.8 million for the quarter, down 24% year over year and up 2% in constant currency, driven by targeted online marketing expenses as we focus on growing orders to supply expansion with minimal incremental marketing spent.
For the full year, sales and advertising expense was $17.3 million, down 19%, but up 13% on a constant currency basis. As a percentage of GMV sales and advertising expense was 2%, the 36 basis points decreased from 423. For the full year, sales and advertising expense of the percent of GME was 2% compared to 3% in 2023.
Technology and content expense was $10 million for the fourth quarter, representing an increase of 1% and up 5% in constant currency. For the full year, technology and quantum expense was $37.5 million, down 10% year over year. And down 7% year in constant currency. Fourth quarter GNA expense, excluding share-based payment expense was $12.9 million at 5% year over year and 9% on a constant currency basis.
It's important to note that Q4 2023 GNA cost included a $9 million of non-recurring tax benefits and for Q4 2024, an 8.2% tax benefit reversal. Staff cost component of DNA expenses, excluding shared death compensation expense, increased to $10 million primarily driven by termination costs associated with our exit from Tunisia and South Africa. For the full year, DNA expense, excluding share-based compensation expense was $63.4 million, down 8% year over year and 5% on a constant currency basis.
Staff cost components of TNA expense, excluding share-based compensation expense decreased to $34.6 million, down 13% year over year. Turning to profitability, adjusted BDA declined to a negative $13.7 million, or negative $12.2 million on a constant currency basis for the quarter.
For the full year, adjusted the video was negative $51.3 million. While we use adjusted EBITDA as a supplemental measure of operational performance, we would like to reiterate that loss before income tax from continuing operations captures items that are not included in adjusted.
One of these items is net finance cost. Net finance costs include effects related to our Treasury activities, notably the impact of cash repatriation. The effects are not captured in adjusted. In Q4 2023, despite adjusted EBDA being essentially at breakeven level, Emir's loss for the period was significantly affected by the financial costs incurred from Treasury activities repatriating cash to our headquarters.
These costs are helpful in understanding the overall financial health of the company. By focusing on loss before income tax from continuing operations, we include these financial expenses which helps us get a comprehensive picture of Jumia's financial performance.
In Q4 2024. The lower corporate sales reduce the need for repatriation, thereby lowering financial costs. And just the EBITBDA does not fully reflect this change as it does not account for these financial activities.
Therefore, the last before income tax from continuing operations should be considered in order to gain a fuller view of Jumia's financial state, capturing both operational efficiencies and the impact of the financial result, which we believe are important to understand the company's overall progress towards sustainable profitability.
The loss before income tax from continuing operations for the fourth quarter was 17.6 million dollars USD, a 3% increase year over year or 19% decline on a constant currency basis. The iron loss was primarily driven by $13.2 million decline in gross profit largely due to reduced corporate sales in Egypt. A $0.3 million decrease in operating expenses, a $12.3 million reduction in net finance costs during the quarter, with both partially offsetting the impact on gross profit compared to Q4 2023.
The loss before income tax from continuing operations for the full year was $97.6 million yearly, 1% down year over year and 8% decline on a constant currency basis a link to the balance sheet and cash flow. We ended 2024 with a solid liquidity position of $133.9 million including $55.4 million in cash and cash equivalents and $78.6 million in deposits and other financial assets.
This compares to term deposits and other financial assets of $85.1 million in Q4 2023 and $78.8 million in Q3 2024. Jumia's liquidity position decreased by 13.6 million in Q4 2024, compared to a decrease of 26.8 million in Q4 23.
In the fourth quarter, net cash flow used in operating activities was $26.5 million driven by approximately $1.3 million in market exit costs related to South Africa and Tunisia. A working capital impact of $13.5 million LD which was driven by pre-payments to suppliers and payable cycles aimed at expanding the supplier base and overall product assortments. CapEx in Q4 2024 was $1.8 million higher than Q4 2023 due to investment to equip the new warehouses where we recently started operations. The effects for the full year total $3.7 million. We also pay the $2.1 million equity transaction costs on the August ATM offering. For the full year, that cash flow used for operating activities was $57.2 million.
In conclusion, despite the challenging macroeconomic environment, we delivered strong usage growth, underscoring that our strategy is working. We remain focused on optimizing costs while positioning the business for long term growth and profitability. Our ongoing efforts to improve operational efficiency will remain a key priority in 2025. I will now turn the call back over to for Francis Dufay guidance.
Francis Dufay
Let me turn to our expectations for 2025. Our focus remains on driving healthy growth, improving operational efficiency, and positioning Jumia for profitability. We are currently observing favorable trends in the first quarter, giving us confidence in establishing our full year 2025 guidance as follows.
We anticipate physical goods orders to grow between 15% and 20% year over year. This reflects the strong demand for physical goods items driven by our strategic initiatives outlined earlier. GMV is projected to be between $795 million and $830 million in 2025, a year over year increase of 10% and 15% respectively, excluding foreign exchange impacts. We forecast loss before income tax to be in the range of $65 million to $70 million a year over year decrease of 33% and 28% respectively. Thank you all for your attention. We are now ready to take questions.
Operator
Thank you. At this time, we'll be conducting our question-and-answer session. (Operator Instructions)
The first question today will be coming from Brad Erickson from RBC.
Hey guys, good morning. Thanks for taking the questions. To start, Francis, just right before this, you said you're observing certain trends in Q1. Can you maybe just give us a little bit more color on kind of what you're seeing right now?
Francis Dufay
Hi Brad, yes. So, we're seeing in Q1 continued progress on all those growth and usage, which gives us confidence to issue the guidance of 1515 to 20 points of growth over year. We also see, we're also seeing continued and strong execution and discipline on the cost side. Which gives us confidence to guide on the net loss based on the improved efficiency and cost management, we continue to see Q1.
Got it. That's helpful. And then on order growth, obviously saw the nice acceleration with kind of the added inventory for the holiday, I guess the question is like, is there anything preventing you from bringing on say more selection? It kind of seems like, you're in some ways you're almost supply constrained, so what would be preventing you from kind of bringing on more selection, leading the incremental demand, or is that just as simple as that's what we're seeing in kind of your full year guidance.
Francis Dufay
Yeah, I mean, I think we've always been very clear that the challenge is more on the supply side and on the demand side in our markets. We believe there's ample demand in Africa, but it's poorly supplied overall, and we, I mean, we as Jumia can really help fix that GAAP and solve the problem. So, most of our focus has been on increasing supply and improving value for money for our customers.
I would say there's no magic fix for that. It's a lot of operational improvement and a long list of action to get there. And it's not like we can double assortment tomorrow morning. It's a long process. What we see what's happening at the moment, we see that we have, I mean we're expanding again our customer base. We're growing our orders, I mean because we have more supply, better value for money, better price points, but it's the result of A couple of years of work focusing on that plan to deliver better value for money from onboarding new suppliers, local suppliers bringing supply from overseas, improving the tools that we give to our vendors so it's easier for them to list, improving vendor experience, improving operations for them.
It's a very long list of actions, so there's no magic fix here, but it's a continued focus to keep on growing supply, keep on growing the vendor base, local and international.
Got it. It's helpful and then. Just on the kind of 1P versus 3P mix, you mentioned the kind of cyclical trends in Europe, in Egypt that affected things, you kind of just elaborate on, sort of why that was, how to think about that mix and kind of your opportunities to acquire that first party inventory and how that will kind of continue to evolve in terms of the mix between first party and third party.
Yeah, so I think two parts to that to my answer. First of all, we indeed see a decline in corporate sales, which are largely first party, particularly in Egypt. And so, we saw reduced bulk purchases from regional distributors in Egypt back, amid some level of macroeconomic uncertainty. Purchase cycles have changed.
We're hitting kind of a low point when it comes to corporate sales at company level at this stage. We acknowledge the cyclical nature of demand here, but we keep on chasing this opportunity. And then when you look at our mix between 1P and 3%, I mean we're very clear that we're pragmatic here. We're not aiming to increase 1P. We use 1P whenever it gets us better supply and better value for money for our customers. So, we don't foresee massive changes in the mix of 1% excluding for the impact of corporate sales.
Perfect. And then maybe if you could just unpack the physical order growth from the overall order growth, what's kind of behind that mixed shift and what's the AOV effect as well from that mixed shift and just kind of how to think about that going forward mix wise?
Francis Dufay
Yeah. Of course. So, when we look at physical orders growth, it's definitely driven by all the levers we've been pulling over the past 2 years. So up country expansion, as we explained, better assortment and better value for money in pretty much all the countries, better customer experience as we explained today, and more efficient and more relevant marketing tactics I mean relevant to the countries where we operate. And that translates into growth by category, and it drives our mix also in a certain way.
So, we explained, I think, in one of the first quarters that we had a mixed shift towards more fashion that decreased the AOV at the time. We explained this quarter that we saw quite some success in categories such as electronics that have slightly higher AOV.
The way we look at it is the following. The AOV is just a consequence of the mix. We want to be the best and deliver the best value for money in each of our priority categories fashion, beauty, smartphones, electronics, and the home living. And by delivering the best value for money in each category, while we grow the best business in each country. This leads to different, I mean, to mix shifts and different mix of categories at country level, but we don't see it as a problem. We don't see a lower AOV as a problem because we're very focused on unique economics at all levels. As we make sure that we maintain the right economics even if the AOV is lower. It depends on the categories.
To give you a quick example, for example, for electronic accessories, the AOV would be lower than for appliances, but our take rate, the commission will be making would be obviously significantly higher. So all in all, we make sure that we are profitable at all the level after fulfillment costs, whatever the category and so whatever the whatever the impact of the mix. And with that we see the mixed shift as an opportunity because it actually enables us to penetrate, to increase penetration in specific categories in our in our markets. It enables us to feed, I mean to fuel our growth in active customers, our growth in orders this quarter. It's because we're managing to penetrate better specific categories that may have a lower AOV, but it's not a problem for our business.
Yeah, understood that's great. And then when you talk about consolidating, what you've been doing in terms of consolidating your warehouse footprint and market, can you help us just maybe at like a market level like what does that do efficiency wise from like a service level perspective and then obviously cost perspective, anything you can share there would be helpful.
Francis Dufay
Of course, so we had inherited early 23, a logistics set up with massive inefficiencies. For example, in countries like Egypt or Nigeria, we had 3 warehouses or more in the same city. A smaller locations that required a lot of moves in between and really prevented us from getting greater efficiencies and economies of scale. So, what happened in 24 is that we have consolidated, I mean in most of our countries we have consolidated several small warehouses or freshmen centers into one big one that's actually able to store more products.
And that enables us to have a much better control on efficiency, productivity, security, and going forward deliver much better efficiencies when you look at fulfillment costs. So all those changes have been done mostly in the second half of 24, which took us some time, took us some focus, and took us some money. And that's why you also see limited improvements at the end of 24 in terms of fulfillment efficiency, so fulfillment cost per order. But it gives us confidence when it comes to achieving a lot more savings on fulfillment in 25 now that the hard work, the structural work has been done.
Got it. That's great. I have a, maybe I have a few more here. Thanks for putting up with me. Maybe one for, where are we from a kind of a fixed cost basis as we start out 25, we made a lot of reductions obviously over the past year or two. Just where are we kind of in terms of the fixed cost base here going forward.
Antoine Maillet-Mezeray
Hi, thank you. As you saw that over 2024, we've been able to reduce drastically the cost I mean over the last two years. Where we are now is for sure we are not going to divide by the level of our staff, nor the level of our tech cost. But what we believe is two things. First, we can get another 20% efficiency, and that's what we are doing as we speak. So, 20% of costly. And the second thing is that we discussed structure, we believe we are able to operate to process between 2 and 3 times the volumes we have now. So it's a mix of cost reduction and increased efficiency.
Got it. And then maybe to expand on that just a little bit, that's really helpful on the kind of volume form I think you've talked about this in the past of just kind of like some sort of.
A magnitude of order volumes from current levels, what it would be necessary to achieve profitability. Can you just update kind of relative to your comments a minute ago?
Antoine Maillet-Mezeray
Yeah, so I mean if you look at the Gross margin after fulfillment cost, you'll see that we are in average between 6% and 8% depending on the quarter and the and the volumes. And so, what we believe with the fixed cost, which is fixed, sorry, is that we would require the volumes, all things being equal to between double and triple, to get to profitability.
Got it. Okay, that's great. And then last 100, sorry, go ahead.
Antoine Maillet-Mezeray
I'd like to if I take an example of something which is a big bucket of cost, it's hosting. For the whole thing is a significant cost and we had inherited quite expensive set up from the past. Not only we've been able to reduce the cost of this contract, but the way we have set up our platform, our software now. Result in a less consuming operation. So, what would take 10, 1 year ago consumes today 5. So, it's a double effect of better negotiations for the contract and better utilization of our infrastructure, which results in us believing that we could do much more volumes and not paying anything more to the to the provider that us.
Got it. And then last one for me. You mentioned the balance sheet, obviously feeling better now, given the stronger cash position, just given kind of your inventory strategy and thinking about your volume growth guidance this year, do you feel like you are kind of where you need to be as we look forward to the year and into the holiday? I know I'm. Looking a little far ahead at this point, but how are you feeling from that perspective?
Antoine Maillet-Mezeray
I'll take the first part of the question and Francis will take the second one. When you look at the cash flow this year, you can see in this quarter, sorry, you can see that the impact of working GAAP was significant, and this illustrates what we said we would do when we raised cash in August. We were not going to increase the market expense, but we stick to the strategy which consists in offering better supply. Offering better supply is buying more products. And making sure in pre-payments or inventory, making sure that we can be favored by the suppliers and the vendors we are working with, and payment terms is very important in Africa to get there. So, we have increased the level of working cap and as Francis mentioned, we believe that we'll have only. Adjustment in the future but that we are not going to increase it as we did in Q4.
Francis Dufay
Yeah, adding on that, we explained that in Q4 we increased working capital by $13.5 million which is significant and is in line with our strategy and what we said after the ATM. So, we are going, we were going to push supply and invest in supply. We believe it's a better location of our money than handing it over to, I mean putting excess marketing budget, I would say. And going forward, we expect this impact quarter to quarter to really moderate. I mean, we're not going to increase working capital by such magnitude in the next quarters, definitely, and it puts us, I believe, in the right place. It really helps us to fuel growth, customer acquisition and all that growth. It puts us in the right place so we can attract more vendors, get better value for money and better selection for customers.
Got it, that's all for me. I appreciate it.
Francis Dufay
Thank you, Brad.
Operator
Thank you.This does conclude the end of today's question and answer session, so I will hand it back to Mr. Dufay for any closing comments.
Francis Dufay
No further comment. Thank you all for your attention and looking forward to catching up next quarter.
Operator
Thank you. This does conclude today's conference, and you may disconnect your lines at this time, and we thank you for your participation.
