Dino Polska (GPW:DNP) Q3 2026 Earnings Call

0:00 Thank you. Hello, this is Grzegorz Horasiński speaking. I would like to thank you for joining today's conference call during which we will discuss Dino Polska's performance in Q3 2026 and year-to-date during the first nine months of the year. Yesterday evening we published our financial report and presentation on our website. In a moment we will kick off the recap of the progress we have made in executing Dino Polska's strategy. Michal Krauze, Dino Polska's CFO and management board member will address this topic. Alek Kalinaskas is also participating in today's conference call to support us by translating into English. After we deliver our presentation, we will invite you to pose your questions.

0:49 Before I give the floor to Michal, I would like to point out that we may make general forward-looking statements regarding the business environment and our objectives during this conference call. Having this in mind, please review the disclaimer at the beginning of our presentation. Thank you. I would now like to give the floor to Michal Krauze.

1:12 Thank you, Grzegorz. Welcome everybody. Dynapolska is continuing its dynamic network growth. In Q3 we opened 108 stores, yielding 256 stores openings on a year-to-date basis. At the end of September we had 3,283 stores, up 12% from one year ago. We are systematically raising the number of secured sites, which enables us to gaze at upcoming quarters with optimism. In terms of sales during the first night months of 2026, our like-for-like sales growth rate was 1.4%, while it was 0.1% in the third quarter alone.

2:04 Dino's total revenue in Q3 was 9.7 billion PLN, while year-to-date we posted sales of 27.7 billion PLN. One factor limiting the pace of sales growth was significant deflation in dino stores. The food price deflation we've observed on our shelves has persisted for a longer period. and is stronger than what we had assumed. Depend in Q3 compared to Q2 and has surpassed 5%. Fresh products which account for roughly 40% of our revenue were the clear leader in terms of falling prices.

2:58 On average, we sold them for nearly 7% lower price than one year ago. For that reason, the growth rate of total revenue in the first nine months of the year was 11.9%. Revenue rose by 10.8% in the third quarter alone. The EBITDA result was 785.5 million PLN in the third quarter. It was up 4.7% from last year. We have observed a similar pace of EBITDA growth during the first nine months of the year. EBITDA has been affected by operating expense inflation running at several percentage and by the relatively slow rate of revenue growth.

3:52 Operating expense inflation has ensued from our employees' wage growth. As a result, the bidda margin fell to 7.3% in the first 9 months of the year and to 8.1% in Q3. Capital expeditions in Q3 totaled 868 million PLN and year-to-date They totaled 1.85 billion PLN. The vast majority of our capex was spent on store rollout, developing our logistics and installing plastic bottle and can collection machines at Dino stores.

4:40 Operating cash flow in Q3 was 937 million PLN and was up 12.5% over last year. Year-to-date it has surpassed 1.7 billion PLN, signifying year-to-date growth of 6.2%. To recap, Dino is strengthening its position on the retail grocery sales market in Poland. New stores attract consumer attention and our network is growing according to plan. Our key objective is to grow sales volume and reverse the downward trend in the EBITDA margin.

5:29 Thank you for your attention. I'll now invite you to ask any questions you may have. Ladies and gentlemen, we will now begin our Q&A session. If you have a question, we ask that you please use the raise hand function at the bottom of your Zoom screen. Whilst you've been invited to ask your question, please unmute and ask your question. If you have dialed in by phone, please use star nine to raise your hand and star six to unmute. If you want to withdraw your question, please lower your hand using the raise hand function. Thank you, and we will allow a moment for the queue to form. Our first question will come from Frederick Wild at Jefferies.

6:14 Please unmute yourself and ask your question.

6:19 Good morning. Thank you so much for taking my first ever question on a Dina Polska call. I'm very excited to be here. My first question is, could you outline a bit more about the path of deflation, what you saw in September and October relative to Q3 as a whole and where you expect this to go over the next few months? The second question please is could you help me with the moving parts of gross margin into Q4 and whether we can look forward to as substantial an increase in gross margin in Q4 as we saw in Q3? Thank you.

6:58 Good morning, I am very happy that for the first time in my life I will be able to ask a question during the DINO results conference, so I am very excited. I have two questions. The first question concerns deflation lines, if you can help me here to break it down into the first factors, especially when it comes to what happened in September and October of this year, how it is in relation to And now my second question concerns the formation of a gross margin and whether we think that in the fourth quarter there should be as significant an increase in this year as in last year, if we compare the fourth quarter to the third quarter.

7:57 Thank you. Dzień dobry, Fredrik. Witamy w gronie analityków kowerujących Dino.

8:02 So we'd like to welcome you, Fredrik, amongst the analysts who are covering Dino, so welcome.

8:09 Jeśli chodzi o inflację, to inflacja w trzecim kwartale była coraz wyższa, deflacja w trzecim kwartale była coraz wyższa, także we wrześniu mieliśmy poziom najwyższej deflacji w tym roku.

8:25 So if we think about deflation, so basically we can say that it was increasing and so we had the highest level of deflation in September of this year.

8:35 And so we can say that in Q3 it was on average let's say 5% with the peak coming in September of this year.

9:03 We see in October that it's let's say lower level of deflation but you know it's still then what we saw in September but it's still within the framework or on par with what we saw as the average for Q3.

9:20 When it comes to the gross margin level in the fourth quarter, we have always emphasized that the fourth quarter is a very important quarter for us when it comes to sales. It is a festive period, also a period of increased promotions, so we intend to improve the purchasing conditions. Ale w świetle obecnej deflacji, w której cały czas jesteśmy, będziemy szczególnie się skupiali na tym, żeby zwiększać wolumeny sprzedażowe

9:56 and so Q4 is a very important sales period in terms of the sales performance they're going to be able to generate and as is clear it's a holiday period holiday season and as such we can anticipate a higher concentration of promotions more promotional activity it's our intention at the same time to continue improving the purchasing conditions and But we have to be mindful of the deflation, which continues to persist. And so that means that we're going to focus our intentions on basically spiking or increasing the sales volumes.

10:35 And of course we believe that it should remain in the improvement trend. However, this improvement may not be as big as in the third quarter.

10:46 And so it's our expectation that things will continue to move in, let's say, improving trend, follow improvement, the trend will improve over this period, but perhaps the rate of improvement will not be as significant or as large as we've seen, let's say, in Q3.

11:04 Thank you so much.

11:11 Dziękuję bardzo. The next question comes from Gustavo Frappini of Barclays.

11:23 Hi, thanks for taking our questions, two from our side. The first one, could you walk us a little bit through what happened in terms of wage inflation in the third Q and how should we think about it in the fourth Q? and could you also talk a little bit more about gross margin in terms of what you've seen for pork deflation, Christmas and the summer benefit that you had in the third Q? How should we think about gross margin improving for Q? Thank you.

11:52 Good morning. I also have two questions. The first question concerns the increase in salaries in the third quarter. How should we think about it in the context of what awaits us in the fourth quarter? And my second question concerns gross margin, with the idea of the upcoming Christmas period, taking into account Let's say some of the benefits that came from this summer period. How should we think about shaping the gross margin here?

12:26 I mean, when it comes to employee costs, they actually remained at the same level as in the second quarter, so these costs have already been calculated at this level.

12:44 So first, you know, beginning with, say, you know, payroll, so employee cost, the cost of employing employees, we can say that they were more or less flat in Q3, so they were at the same level, more or less as we saw in Q2.

12:59 A wzrost w trzecim kwartale jest też trochę efektem bazy, jeśli chodzi o trzeci kwartał ubiegłego roku, który był dużo niższy.

13:07 And so what we see in terms of the wage increase, let's say in Q3 of this year versus Q3 of last year, it's more of an effect related to the base because the base was lower last year.

13:22 And so if you look at average wages in Q4, they should be more or less similar to what we've seen in Q3.

13:49 Thank you. If I may just do a quick follow-up. It seems like there could be strikes coming into, like worker strikes coming into Christmas. Anything to talk about that? And maybe if you could also mention a little bit in terms of the absolutes, because the increase year-over-year was quite substantially enrages. Thank you.

14:11 I would like to ask, in reference to the first of my two questions, it seems that on the horizon there may be a number of strikes in the Christmas period, so if you could say something about it, And speaking here about the increase in wages or labor costs, can you talk about it in priceless values, because it seems that this increase was significant.

14:52 So beginning with the question about wages, I mean we had informed everybody given the guidance that we had raised the wages at the turn of Q1 and Q2 and since that time nothing has changed. When it comes to the first part of the question, it is difficult to refer to all the information that appears in social media. I can assure you that we are putting a lot of effort into stable development of activities and providing good conditions for our employees.

15:57 but I can assure you that we expend enormous amount of effort to ensure that our employees have good working conditions, stable working conditions. I can assure you that we expend enormous amount of effort to ensure that our employees have good working conditions, stable working conditions.

16:06 I can assure you that we expend enormous amount of effort to ensure that our employees have good working conditions, stable working conditions. I can assure you that we expend enormous amount of effort to ensure that our employees have good working conditions, stable working conditions. I can assure you that we expend enormous amount of effort to ensure that our employees have good working conditions, stable working conditions.

16:18 and so on top of, let's say, you know, the traditional wages, we're adding a lot of, let's say, conveniences to make it easier for our employees to perform their functions, to do their jobs.

16:32 Mam nadzieję, że to, co robimy, jest doceniane przez nasz zespół. Zresztą słyszymy wiele głosów, które to potwierdzają.

16:39 and so it's our hope that what we're doing to improve things is appreciated by our team and we do hear back a lot of opinions and voices from amongst the employees that the staff that they do in fact appreciate what we're doing.

16:58 When it comes to gross margin, I would not like to comment on particular categories that affect the improvement of gross margin. In fact, when it comes to the fourth quarter, I support what I have just said, i.e. we will focus primarily on volumes.

17:20 So coming back to the second question that you had previously asked about, let's say, the gross margin, I don't want to drill down to the individual categories of where improvement is being achieved, but I would like to say that in Q4, as I responded to in the previous question, that it's our intention to continue focusing on increasing sales volumes, so the volume of sales. Thank you. Thank you. Our next question comes from Richard Treanor of Bernstein.

18:01 Hello, good afternoon. Are you confident in your new stores target for this year? I think it was to increase new stores by a percentage in the teens. What level of growth in new stores do you expect next year? And finally, will you consider introducing a dividend at the end of this year? Thank you.

18:26 My first question concerns the level of your conviction that it will be possible to achieve a goal in terms of the total number of new stores opened this year, because the statement was that the total number of new stores Marketów będzie stanowić 12%. Także chciałbym zapytać, jak to wygląda, jak to wypadnie w tym roku. Jednocześnie chciałbym zapytać o cel na przyszły rok, na 2027 rok. No i ostatnie moje pytanie, czy państwo rozważają tutaj wprowadzenie dywidendy pod koniec tego roku?

19:11 When it comes to opening, as we mentioned at the beginning of the year, we wanted to increase the number of openings compared to last year and we believe that this number of openings will be somewhere around 400 shops.

19:29 And so in terms of your first question about the number of openings this year, I mean, as we had guided you last year, our intention was to grow this year the total number of new store openings at a pace higher than what we saw, let's say, last year. And so the intention is to come in at around 400 stores, which is what we think is possible.

19:54 and next year's target in terms of the number of new store ads is at a similar level. So in terms of your question about the dividend, we continue to open at a fast pace a large number of new stores. So we have a lot of new store ads.

20:44 We continue to buttress the logistics base to serve that number of new stores. But at the same time, I mean, we continue to do analysis on the subject of the dividend and the possibilities of doing so.

20:59 Thank you very much.

21:01 Dziękuję bardzo. Next question comes from Michal Otyra of UBS.

21:13 Hi, good afternoon. I have two questions, follow-ups really. So the first one on operating expenses, you touched on labor costs, but perhaps you could comment a little bit on transportation and energy going forward, how we should think about operating cost growth relative to sales growth. That's the first one. And the second one is on sourcing and supply chain. Could you perhaps discuss the current sourcing environment, your relationship with suppliers, and do you believe you have still a meaningful potential to improve your purchasing conditions going forward? I'm just really trying to get a sense, are suppliers becoming more willing to offer Some concessions that could support your gross margin and where that should lead us in terms of price deflation going forward. Thank you.

22:20 I have two questions in reference to what has already been said. The first question concerns the costs of operational activity. You have already said a few words about the costs of work, and therefore my question also concerns the costs of transport, Energy and in general life, how is the increase in operating activity costs and above all the dynamics of operating activity costs in relation to the dynamics of turnover or increase in sales revenues? This is the first question. The second question concerns the supply chain, i.e. supply. In general, I am talking about the environment, i.e.

23:08 your relations with suppliers, i.e. what is the actual potential in terms of further improvement of purchase conditions. and the extent to which suppliers are prone to resort to concessions in order to achieve a significant improvement in the gross margin. I will also talk about price deflation, i.e. price decline.

23:41 So, beginning with the transportation costs, we can say that we do have higher fuel prices and that is a major component or a major driver of costs. Oczywiście poprawiamy logistykę poprzez otwieranie nowych sklepów i zagęszczanie sieci, co wpływa na optymalizację tych kosztów, aczkolwiek koszty paliwa wzrosły o ponad 40%, co na pewno będzie miało wpływ na tą pozycję.

24:23 At the same time, we're improving the logistics base by opening new stores, which increases the overall density, enhances the density of our store network. And that has a positive impact, let's say on the costs. But at the same time, the sheer magnitude of the price growth in excess of 40% does have a notable impact.

24:47 When it comes to energy costs, we are constantly increasing the level of photovoltaics and implementing savings when it comes to energy, and we are currently buying energy on the spot.

25:04 And so with respect to energy, we continue to expand our solar panels, so the photovoltaic side of things, achieving energy savings across the board. And we're buying, you know, say energy using spot prices.

25:31 When it comes to relations with suppliers, I would not like to comment on our relations in detail here. We are trying to make these relations as good as possible, but we want to point out that we are a network that delivers increases every year when it comes to sales volumes, and this is an argument that we use during negotiations.

25:58 When it comes to, let's say, cultivating the relationships we have with our suppliers, we always endeavor to foster and forge the best possible relationships with those parties. I really wouldn't want to, let's say, dig too deeply into that subject here, but what I can tell you is that we are What we do propose and offer to these suppliers is consistent growth in sales volumes. And that's an argument we always strive to, let's say, utilize or benefit from that, leverage that in the course of our discussions as we talk about, you know, achieving purchasing conditions.

26:40 When it comes to increasing these volumes, we mainly focus on improving efficiency on both sides, and this improvement of efficiency later turns into improvement of conditions.

26:56 And so when it comes to, let's say, volume growth, we're always trying to do that by creating, let's say, enhanced effectiveness for both parties. So kind of a win-win situation. And so basically all parties win on that increased, on those increased volumes.

27:16 Thank you. If I may just follow up on the supplier question. When you sit down with suppliers to negotiate purchasing terms for 2027, what should we think about the pricing environment looking into next year? Are you hearing demands of higher prices or can you keep the prices unchanged? What's the dynamic there? Thank you.

27:42 One more question in reference to the topic of suppliers. When you sit down at the table with them to talk about the conditions of purchases in 2027, what does this environment look like, this atmosphere, can we say that? Do they generally say that they require higher prices? My apologies, but that would be too sensitive a topic to discuss at this point in time. Thank you. Next question will come from Volodymyr Škuropat of Keflek Ševro.

28:46 Yes, hi everyone. I have three questions. I'll go one by one. First, on the basket deflation, just to follow up, could you be more precise? You said around 5% basket deflation in the quarter. In the second quarter, you had 4.5%. So is the third quarter like slightly above 5% or is it broadly comparable to the second quarter?

29:11 I have three questions, maybe I will ask each question one by one. First of all, I'm talking about the deflation basket. So in the third quarter there is deflation of 5%, in the second quarter it is 4.5%. How can you say in general what it looks like, what it looks like?

29:42 So when it comes to inflation, it's as I said, I mean, we had, you know, across the quarter, it was a 5% on average, with the peak of deflation, let's say taking place in September, in the single month of September.

30:10 Okay, clear. And then two questions on the gross margin. First, on the sales mix in the third quarter. Last year, you said the summer mix was less favorable because of weather, for example, in ice cream. How did sales mix affect gross margin in the third quarter this year, including the effect of the deposit system on beverages?

30:35 And now the next two questions are about gross margin. I remember that last year, let's assume that the sales structures were less profitable last year in the summer period due to weather conditions and you gave such an example that the sales of ice cream were lower, for example. and now I would like to ask what it looked like this year, in the third quarter, what this sales structure looked like and also with regard to the calcium system in relation, let's say, to these bottles and cans that are now covered with recycling.

31:16 Yes, when it comes to March in the third quarter, the summer categories helped, but mainly the categories of the type of ice cream, because introducing a caustic system limited a little sales in the categories of beverages.

31:34 So we can say that in Q3 we did benefit from some of, let's say, what I would call the summer related categories, including, let's say, ice cream this year. But at the same time, if we look at beverages, the introduction of this bottle and can collection system did have a slightly downward impact on the total sales of beverages.

31:57 So overall impact of mix was rather positive or slightly negative?

32:02 So it was beneficial. We can say it was a favorable, let's say, mix.

32:17 Okay, thanks. And my last question. In the costs by nature disclosure, costs of goods sold as a share of sales was almost flat year on year in the third quarter after the increase of 1.6 percentage points in the second quarter. Last year, you invested in price attractiveness in the summer, you said, so the base was easier this year. Which factor was the most important for this improvement in costs of goods sold? Was it the easier base, better purchasing terms, or maybe a change in price investments?

32:57 Now, when it comes to retail costs in the third quarter, when you look, for example, at the share of goods purchase costs and so on in the third quarter, COGS, i.e. purchase costs, in fact, this share was flat in the third quarter, while in the second quarter we saw such an increase of 1.6 percentage points. And in relation to last year, where there were some investments, let's say in prices, so the prices were more attractive. And I would like to ask which factor supported you the most this year? Was it that the base was lower last year, so it was easier to achieve it?

33:43 whether the purchasing conditions were better or whether the policy changes in the use of more attractive prices. Which of these elements contributed the most to this situation?

34:00 We do not limit all these elements in any way. First of all, we focused on the sales volume. The impact, of course, was the mix and improvement of the purchasing conditions.

34:17 So we don't actually create, let's say, kind of a grading system or, you know, which is more important, which is less important. We focus our attention primarily on sales volume. So mix, of course, is at play as well as improved purchasing conditions.

34:35 Great. Thank you.

34:37 Dziękuję bardzo. Next question will come from Michal Stopka of Investor.

34:49 Hello, thank you. I have a question. What's the main reason for so big deflation? You told us that in September that was even more than 5%. In general, because of the war, the prices of transportation, fuel, diesel, energy, salary is going up. And in general, we see on the market deflation. Is that of, for example, Mercosur or something else? Could you explain that? Thank you.

35:22 Ja chciałbym zapytać, co jest główną przyczyną tej deflacji cen żywności, bo generalnie rzecz biorąc to 5% i powyżej, najwyższy szczyt we wrześniu tego roku. Z drugiej strony widzimy, że ze względu na wojny, the costs of fuel, the costs of diesel oil, the costs of energy, the costs of work, all these elements, so to speak, will grow, but in turn here we hear about the deflation of prices on the market. Is this the main reason for all this, is this agreement, or the EU-Mercosur agreement, or is there something else behind this deflation of prices?

36:14 Trudno doszukiwać się jednej przyczyny. Tak jak mówiliśmy, w naszym przypadku driverem największą deflacją charakteryzowały się produkty świeże, a pewnie w tym przypadku to jest nadpodarz tych produktów.

36:34 So, I mean, it would be really difficult to point out one single root cause. I mean, as we mentioned previously, in the main category where we see this transpiring is in, let's say, fresh products. So I imagine one contributing factor here could in fact be, let's say, a glut or a large supply of products.

36:58 There are probably many factors that have an impact on this, the market environment, sentiment and probably many others that can affect the fact that prices were lower this year.

37:13 So I think that there's a veritable plethora of contributing factors here, and so certainly the overall market environment, consumer sentiment and many others are contributing to the overall, let's say, market deflation, as I said, the glut of products, sort of the oversupply.

37:33 First of all, we focus on selling goods to our customers at the best prices, and that's our goal.

37:42 And so what we do is we chiefly focus our attention on selling as many products as possible to our customers at the best possible prices. Thank you. Our next question comes from Janusz Pieta of NBank.

38:13 Hello, I've got a question, let's say, on your medium-term strategy. There was some media coverage on you introducing self-checkouts to some of your stores. Is it something that you are planning to introduce on a larger scale? And if yes, what's the impact on the capex and what cost benefit do you expect from this?

38:43 Okay, I have a question about your strategy in the medium term, because there was information somewhere that you are considering introducing automatic cash here, self-service cash in some stores and I wanted to ask if you plan to do it on a larger scale, what would be the CAPEX, i.e. the program of investment, Are investment investments related to this? What are the benefits or costs that are expected as a result of the implementation of something like this? I confirm that we are testing such solutions. For now, in several stores, but we intend to expand this test.

39:39 So first I would confirm that we are testing the solution in several stores and we have some intentions to extend or expand the number of stores included in these tests.

39:55 The goal is to make it easier for employees to work and to increase the purchasing possibilities of our customers.

40:05 and so we have two goals in mind. One is to make it easier for our employees to do their jobs and secondly to enable customers to be able to buy more products more easily.

40:19 When it comes to the capex level, it's still too early to calculate it.

40:33 When it comes to CAPEX and where we are in this process, it's a little premature, or it would be premature, for us to make specific CAPEX calculations related to that.

40:49 Thank you. And maybe one more question regarding your EBITDA margin. So we, I guess, should expect gross margin to improve year-on-year in Q4. And the base, let's say, was less favorable for Q3 on the year-on-year for the operating expense. And I guess we should not see that reoccur in Q4. So is it like a base case that we should see EBITDA margin increase? and Ronil Inkupor.

41:23 And now I have an additional question about EBITDA, because as I understand, it should be expected that this gross margin will improve in the fourth quarter, due to the fact that this OPEX base in the third quarter was less profitable. in the fourth quarter. The question is whether we should expect an improvement in the EBITDA margin in the fourth quarter, along with an improvement in the gross margin.

42:03 This is not such an obvious scenario, because when it comes to the circumstances, the level of deflation, we are actually dealing with high deflation all the time, which makes it difficult to manage costs.

42:20 So I mean, I don't think this is an obvious scenario. I mean, deflation continues to be persistently high. And so that does give some hindrance or hinders, let's say, management on the cost side.

42:39 I tak jak powiedziałem wcześniej, jeśli chodzi o strategię cenową, no nasza strategia jest podporządkowana zwiększaniu wolumenu i oferowaniu naszym klientom jak najlepszych towarów w jak najlepszych cenach.

42:55 And so when it comes to our price strategy, we have to be mindful of the fact that we're primarily informed by our goals to expand volumes and then offer our products, the best possible products at the best possible prices to our customers. So you have to factor in all of those things. Thank you. Next question is from Maria Kolesnikova of Millennium.

43:27 Hi, good afternoon. Thanks very much for the opportunity to ask a question. Can I please clarify your comment about gross profit margin into Q4? So you mentioned that most likely it will improve on a year-on-year basis, but then we also know that last year you are cycling a very low base on GP margin, your EBITDA margin was as a result also very low. So I'm trying to understand, so all the initiatives which you have done so far this year, are likely to continue into Q4, so why are you being a little bit conservative on Q4 margin improvement? That's my question. Thank you.

44:10 My question concerns the gross margin in the fourth quarter. and expect, of course, that there will be improvements from year to year in this area, but last year there was a fairly low base. You have taken a number of initiatives and, as I understand it, these initiatives will be continued, hence I have such a question, why your approach to any further improvement in this area is quite conservative? This is my question.

45:02 Tak, ale tak jak zwracałem uwagę chwilę wcześniej, mamy do czynienia cały czas z deflacyjnym środowiskiem, które nie pomaga w poprawianiu marży.

45:20 So that's true but I mean let's be mindful of what I said a moment ago that we function in a deflationary environment and that's not something that underpins or is conducive to improving margins overall.

45:35 No i przede wszystkim wchodzimy w okres wzmożonej aktywności świątecznej, gdzie będziemy skupiali się przede wszystkim na pozyskaniu klientów i zwiększeniu wolumenów.

45:49 Thank you very much. We have one more question here. It will be from Michal Stopka of Investor.

46:26 Thank you. I have one question. You told us that you increased your volumes because of deflation. I wonder, that means that people in general, they bought more products. because of lower prices and big deflation mainly in fresh products or because of that you saw more clients because I wonder especially in the short not in the short but in the a bit more longer time do you see because of Polish demography do you see that people are buying more but more or less the same number of people or do you see that because of that demography that's not a problem for you and the number of clients increase quarter over quarter as it used to be, let's say, one, two, three, four years ago?

47:27 Thank you.

47:28 I have a question. In the face of the ongoing deflation, you are focusing on increasing the volume of sales. I understand that it looks more or less like this, that people buy more products, especially when it comes to fresh products, due to the fact that prices are at a lower level. The question is whether it is so or whether it is so that you attract more customers to stores, i.e. whether consumers buy more products due to lower prices or whether it is so that you attract more customers to stores. Especially with regard to this in the long term and taking into account the demography of Poland, whether it is the same number of people who make these purchases, whether there is a larger number of people, a larger number of customers from quarter to quarter, taking into account what it looked like a few years ago, when there were more and more customers.

48:34 We increase both the number of customers and the number of goods that a single customer puts into the basket. Above all, the format of our store, which is friendly to the customer, is close to his place of residence, and our offer, which we try to adapt to the needs of customers, and above all the prices that are attractive and constantly attract new customers.

49:06 So I think there are a number of factors that feed into what's happening overall. So I would say at first, at the outset, that we're doing both. We're increasing the numbers of clients, and we're also increasing the number of products per basket within an individual client. And there are some things that feed into that or underpin that ability to do that. One, our format is very attractive. I mean, it's a convenient place to shop. We're close to people's homes. at the same time the offer the product offering that we've put in place matches the things that they want to buy and then this is all topped off with attractive prices so good products at good prices those are the things that are enabling us to as I said raise the number increase grow the number of clients consumers as well as grow the number of products per customer thank you Thank you.

50:05 There are no further raised hands at the moment.

50:11 So there is no one who raised their hand to ask the next question.

50:17 If there are no more questions, I would like to thank you for your participation. Please feel free to contact Grzegorz Wrazinski, our head of IR, if you need any more information. I hope to hear you next quarter. Goodbye.