Q1 2022 Diversey Holdings Ltd Earnings Call
[music].
Okay.
Greetings and welcome to he does they see six quarter of 2022 earnings conference call.
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A question and answer session will follow the formal presentation.
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As a reminder, this conference is being.
Thank you Hello, everyone and welcome to diverse these first quarter 2022 earnings call with me today are Phil <unk>, Our Chief Executive Officer, and Todd Herndon, Our Chief Financial Officer.
As a reminder, during this call we will make forward looking statements.
Some risk factors that may impact these statements and could cause actual future results to differ materially from our projected results are described in this morning's press release and in the reports we file with the SEC.
The company does not undertake any duty to update such forward looking statements.
On today's call the company will discuss certain non-GAAP measures and make references to certain supplemental data, which we believe can be useful in evaluating our performance.
The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP.
A reconciliation of these non-GAAP measures and referenced supplemental data can be found on our website at IR dot diversity dot com and in our most recent annual report.
And now over to Phil.
Thanks, Brian and good morning to all of you dialing in.
There are two areas. So I'd like to highlight this morning first I'll provide some initial thoughts on our strong first quarter results and the read across to our confidence in hitting our full year revenue adjusted EBITDA and margin goals.
I'll then discuss how our business model is uniquely built to tackle the challenging global dynamics.
That I'm going to turn it over to Todd.
Most of the quarter I'll cover the 2020 outlook.
Starting with the quarter.
I remain confident about the resiliency of our business and our long term growth prospects.
As I'm sure you know buying that diversity is one of the only two large global companies offer a full suite of hygiene and infection prevention and cleaning solutions in a highly fragmented industry.
And it's that fragmentation, coupled with the foundation, we have built for organic revenue growth margin improvement and consolidation that gives us a competitive advantage and penetrating.
$46 billion total addressable market.
Our first quarter results highlight the strength of our business model. Despite the current macro environment.
Specifically revenue improved by four 5% as compared to the prior year.
$6, 8% higher than pre pandemic levels with significant recovery still to capture.
Constant currency organic sales growth accelerated to 7%.
Revenue growth was driven by our base institutional.
Our institutional business, excluding infection prevention.
26%.
<unk> grew by 15%.
Adjusted EBITDA margin of nine 1% were in line with our expectations for the quarter and are forecast to significantly improve sequentially throughout the year as our pricing cost containment initiatives are implemented.
Continue to mature.
Moving to the macro and how our business model is standing up to the challenges.
We are clearly operating in an unprecedented environment with multiple COVID-19 virus impacting global economies with.
With rising inflation with supply chain bottlenecks and other operating factors that can be difficult to predict and really challenging to manage.
I've been extremely pleased with the resiliency of our business model and our management team's agility in the short term, while maintaining focus on our long term growth goals.
Some highlights of our current initiatives.
Firstly, we've been focusing hard on pricing to cover inflation.
While input costs continue to rise steadily we're implementing price increases across our various geographies and products in the first quarter, we realized more than 6% revenue growth from pricing and I expect this level of pricing to increase further.
As we move through the.
To date, our price increases have been well expect well accepted.
We expect these increases to remain intact, reflecting the essential nature of our products and services and their appeal to customers.
Secondly, we have maintained our focus on controlling our fixed cost and leveraging our variable costs. Our first quarter margin of nine 1% is reflective of the near term inflationary environment.
As our pricing actions continue to be implemented including additional pricing as required we would expect our margins to meaningfully improve between now and the fourth quarter of the year.
We also continue to invest in opportunities to expand margins into next year and beyond a good example, being our planned investment in Kentucky, which remains on track to be completed by the end of this yet.
In that example by co locating our main warehouse with manufacturing and adding more capacity to bring currently contracted manufacturing with all these in house in combination with optimizing freight lines, we expect to improve total company margins by roughly 100 basis points for next year.
As we work to deliver our targeted long term EBITDA margins of 20%.
So whilst it's still early EMEA with pleased without early pricing and cost containment results as we continue to navigate this unprecedented environment.
Of course, we cannot predict the pace at which variable costs overall inflation begins to normalize we will maintain pricing discipline. So we can drive revenue growth and capture margin expansion opportunities as the year progresses.
But just as important I am very pleased with our continued progress on strategic growth drivers, we continue to evolve our value proposition with digital innovation and a focus on service, which is leading to high retention levels and acceleration of net new customer wins.
Robust pipeline of additional growth opportunities.
This is especially strong and our strategic focus areas, including U S food service global accounts and water treatment.
All of this is expected to drive double digit topline growth in Q2 to Q4 this year.
With that let me now pass over to Todd to give you some more detail on our strong first quarter and our outlook for the remainder of the year.
Thanks, Bill and good morning, everyone.
Before diving into the numbers, let me tell you why I feel so great about our results.
We did what we said we'd do.
Our top line growth and pricing, whereas the high end of expectations.
<unk> margins will improve throughout the year.
I am happy with our cash flow and finally, I'm confident in our full year outlook.
Starting with the results.
Net sales for the quarter were $660 million, an increase of $28 5 million or four 5% as compared to the first quarter of the prior year and 7% organic constant currency growth.
I'm, especially pleased with our revenue growth in the quarter, which is inclusive of the headwind associated with the normalization of our infection prevention business. This resulted in a decline of $76 million in infection prevention revenue compared to the first quarter of 2021 in line with our expectations.
<unk>.
Now moving on to our segments.
Let's start with institutional.
As Phil mentioned, our institutional base business represents more than 60% of our first quarter revenue and continues to perform well.
First quarter revenue was $395 8 million or 26% increase over the prior year quarter, driven by a combination of new customer wins and continued expansion with existing customers as we continue progressing towards a return to pre pandemic levels.
Speaking of new customers, we're on track to exceed 3% annualized net new customer wins, improving from 2% in 2020 and 3% in 2021.
As it relates to our existing customers.
We highlighted in our fourth quarter call that we have an opportunity to organically recapture at least $220 million of revenue in the coming years as countries and businesses begin to ease COVID-19 restrictions.
Our institutional recovery remains on track with the Europe at above 90% of 2019 volume in emerging markets at above 80% in the first quarter.
And good progress to start the year.
Despite the additional remaining recovery opportunity first quarter revenue exceeded pre COVID-19 levels by six 8% in total.
I believe this is a testament to the resiliency of our business model and the effectiveness of our growth initiatives.
Our infection prevention business, which represents approximately 10% of our revenue began to return to more normalized levels beginning in the second quarter of 2021 and continued throughout the year.
First quarter infection prevention revenue of $76 million represents a 50% decline versus prior year and what we believe to be a sustainable run rate reflective of this business as we move forward.
Our infection prevention business continues to reflect new wins with revenue more than 25% higher than pre COVID-19 levels and we expect to continue to make gains in this strategic growth area.
Finally, our food and beverage business, which is roughly 30% of our revenue is also generated positive momentum supporting our long term growth goals.
We continue to experience high customer win rates for new business and our recently introduced water treatment to further expand our organic growth initiatives.
Our revenue of $187 8 million in the quarter is a 15% increase over the comparable prior year quarter.
Now, let's move on to adjusted EBITDA.
Consolidated adjusted EBITDA for the first quarter was $60 3 million, a 35% decrease as compared to the prior year quarter.
This was above the high end of our guidance range and rigs that represents a 15, 7% increase over the pre COVID-19 baseline in 2019.
As Phil mentioned, we're especially pleased with this outcome in light of the numerous inflationary pressures we have had to overcome throughout the first quarter.
Our institutional and F&B segments delivered adjusted EBITDA of $53 million and $22 million, respectively, representing declines of 26% and 31%.
Both segments were impacted by high input cost inflation, particularly in Europe due to the war in Ukraine, and we're taking aggressive pricing actions to address the price cost gap.
Now, let me touch specifically on costs for a moment.
The current reality is that inflation is both difficult to predict and has progressed at an unprecedented pace, which makes life really tough.
Cost volatility can put pressure on margins in the short term, but over time. It will eventually turn positive as inflation receipts and we continue to price for the value we provide to our customers.
To offset and get ahead of costs, our full year pricing expectation for 2022 is an increase of greater than 8%.
Combined with our steady productivity gains, we anticipate offsetting inflation first.
And as inflationary pressures moderate I believe we can capture margin improvement as well.
In these tough times cash becomes even more important as a result of that I've invested a disproportionate of my time to focus on cash generation and I'm very pleased with the first quarter results.
Free cash flow was $19 million in the first quarter of 2022.
It's important to a minus <unk> $73 million in the prior year quarter.
This is the first time, we have posted positive free cash flow in the first quarter and we see this as a good indicator for the remainder of the year.
However, given the current environment, we will likely be more selective in the short term when considering opportunities and a strong pipeline of accretive M&A.
At quarter end, we had cash and cash equivalents of $216 million and available liquidity of $658 million, which I view as a position of strength.
We have roughly 50 50 split between fixed and floating rate debt with interest rate caps in place for our protection.
I'm confident in our liquidity.
Our net debt leverage ended the quarter at four seven times, we are focused on generating increased positive cash flow for the full year of 2022 and expect to see net debt leverage improvement by year end.
Finally, let me provide our view on the 2022 outlook.
We remain confident in our ability to grow our top line, while improving our margins.
As we look forward to a long term opportunity we are extremely energized.
We're encouraged by the recovery of our base business as markets reopen from Covid with a continued opportunity to capture additional revenue that was lost during COVID-19.
We also expect to continue to win market share, while maintaining focus on our pricing to recover rising input costs.
The infection normalization should now be substantially behind us for the balance of 2022, we anticipate a return to growth in infection prevention based on our innovation and differentiated technology.
While we're encouraged with our first quarter results and our positive momentum we continue to operate in an unprecedented environment.
I reaffirm high single digit percent revenue growth and adjusted EBITDA of $380 million to $420 million for 2022.
If the positive trends, we saw in the first quarter continue and the inflation environment begins to abate, we would expect to update our outlook as the year progresses.
One last item before I turn it back over to Phil.
While we do not plan to provide quarterly earnings guidance. Our current forecast is that approximately 37% of our full year adjusted EBITDA will be earned in the first half of 2022.
With the remaining 63% in the back half of the year.
This first half second half outlook reflects the pre COVID-19 historical seasonality of our business and the continued progression of our various cost initiatives, coupled with our price increases and surcharges that are expected to continue to build throughout the year.
With that said I'll hand, it back over to Phil for a quick wrap up.
Thanks, Todd let me share a few closing thoughts.
Firstly on growth, we have strong customer attention long tenured customer relationships and a robust pipeline of new customer growth opportunities.
The 2% annualized gross to net new wins in 2020, but became 3% in 2021 is showing further growth in 2022.
And secondly on pricing, we have demonstrated pricing power to offset inflation inflationary pressures.
6%, we saw in Q1 will grow to more than 8% for the full year.
This along with cost containment, we will deliver sequential margin growth through 2022.
Finally, we are pleased with the progress, we're making in transforming diversity and with the resiliency of the business model that delivers during both good times and challenging times.
Let me clarify thanking our team around the world for that continued hardwood and delivering on our mission to protect and care for people.
With the operator, please open the lines for questions.
Thank you at this time, we will be conducting conducting a question and answer session. Thank.
If you would like to ask a question Keith Please star one on your telephone keypad.
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One moment, please while we poll.
The first question comes from Josh Spector from UBS. Please go ahead with your question Josh.
Yes, hi, guys and thanks for taking my question just first one on the guidance you held your guidance for the year your pricing appears a bit better growth I assume appears perhaps a little bit worse at least from a macro perspective, just curious if theres any change in bias from the mid point to perhaps the top or bottom end versus what youre seeing today.
Okay.
Yeah.
So Josh.
I think.
Firstly I wouldn't say that we were seeing growth.
Lower than we were previously indicating actually quite a country, where we're really pleased with the way. The <unk> is tracking to share with you just mentioned.
Full how we're seeing that increase of <unk> increased steadily over the last few months.
Having said that it's still very early in the year and therefore.
It is not appropriate at this time to increase the guidance and therefore.
I think we stick with the range that we've got and we wouldn't be pushing a range at all we're pretty comfortable with where consensus is at the moment.
Okay no. Thanks for that and then just on food and beverage just a question around the growth. There overall and you have a lot of things going on in between pricing based on new wins I'm talking about the water treatment business ramping curious just on the volume side. If you could provide any context about how things are.
Trending between the new wind side of the heritage diversity of products versus how much of the volume growth as the water treatment selling.
Taking place.
Yes, sure maybe helps for me to unpack those F&B numbers, a little bit a PK com.
Organic.
Constant currency F&B top line, it's about 14%.
Within that the pricing in F&B is about eight 5%.
And the volume is the balance.
It is still the case that.
The predominance of our volume growth in food and beverage is coming from our core cleaning and hygiene products.
On a very good winning spree that right through 'twenty and accelerated 321 water treatment is coming online most significantly we said at the end of last year, we've got to double digit millions and we thought that that would continue to increase and ensure it has but it's still.
Not the most significant part of our growth.
Very helpful. Thank you.
Thank you. The next question comes from Vincent Andrews from Morgan Stanley . Please go ahead, Sir Frank.
Thank you and good morning, everyone.
And I just wanted to close the loop on one other guidance items on Cogs, because I kind of remember when you reported the fourth quarter.
Oil was $125 and I think that you added in a 25% to $35 million incremental cost sort of based on some analysis, you've done regressing sort of that oil price range around the basket of raws. So.
The oil is not at 125 anymore can clearly be volatile, but I just wanted to see whether sort of the reiterated guidance assume any change in the oil price assumption or the flow down into those intermediate chemicals.
Yeah, Vincent I appreciate the question.
Question I I would tell you that.
Our view is still roughly the same as the outlook we gave at.
At the end of our last earnings call, we're still in that range.
Albeit I would say estimated cost of slightly increased and were implementing additional pricing and surcharges to offset that I think the net range. We gave this last period is roughly the same.
I'd say, we're also confident that we can continue to manage the business in a very challenging operating environment.
And expect really headwinds to shift a tailwind as changes abate.
We're off.
I think a good jump off point as well as we enter 2023.
But we are effectively out of in the same place that where we discussed last quarter.
Okay understood a lot of moving parts, which I'm sure we'll keep moving.
Maybe just a follow up on the second quarter.
Is that progressing different than you thought.
When you reported <unk> or did the street did we all just kind of Miss model it.
So I think maybe it's <unk>.
Staying on inflation just for one second clearly inflation is having a significant impact on our cost base I think as a reminder, our direct costs material costs were up 10% in Q3 of last year 16.
That accelerated to 26% in Q1, and we're expecting our full year outlook of 28%.
Implied in this full year view is that we expect costs remain at an elevated level at about where we are for the remainder of the year.
And in terms of putting it into numbers given direct material costs are roughly 33% of revenue that 28.
Percent inflation's worth about $240 million in the year, which is what we're seeing.
Seeking to overcome in terms of dollar inflation first.
<unk>.
That takes.
Some time to implement given the price price cost time lag that we've discussed in the future. So.
Our full year outlook really hasnt changed I think maybe just the pacing.
Of how the numbers will flow quarter on quarter may have changed a little bit which is why we gave the outlook.
37, 63 in the script that you.
You heard us talk too, which I think is just a little more precise than that.
When we first learned about the.
Ukraine situation and how it may face.
Okay, that's very helpful.
Maybe maybe just another thought.
When you look at the 37 that we're talking about now.
First half if you go back to the pre pandemic period that was about 41%.
The business always had.
This fairly.
Significant seasonality H, one versus H, two it's obviously a little bit more.
Extreme in that this year, just because it takes time to pass the inflation through the pricing.
Think that 41 59 data points quite interesting when thinking about what we've just been talking about.
Yes, that's really helpful. Obviously.
Not a lot of clean year comparisons given what's happened over one half of the year. So I appreciate all the color.
Alright, Thanks Vincent.
Thank you. The next question comes from Chris Parkinson from Mizuho Securities. Please go ahead.
Great. Thank you so much. So obviously the focus on margins has really been the cumulative impact of inflation over the last few years and ultimately can see the IVF process, but when you take a step back on slide four.
I'll go over your sourcing supply chain and operational excellence plans can you just offer a little bit more color on ultimately where you.
Once inflation is kind of fully dealt with where you ultimately can go on the margin front for both segments and just how that filters entity.
EBIT CAGR guidance over the long term so just any additional color would be greatly appreciated. Thank you so much.
Yes.
Let me start.
The first thing to say is we've been very clear and we've reiterated a lot.
That we're tracking to 20% EBITDA margins nothing has changed in that at all if you look at.
What we've been able to do.
Strategic sourcing.
I think we feel really good about what we're doing that in fact, we've probably.
Put even more resource in this area as we thought about how we can work with R&D to reformulate, how we can look at trimming.
The range, making sure that it works better for customers and also Optimizes efficiency. If you look at supply chain, we've talked a lot about some of the M&A we've done.
To get more strategic control of our supply chain in places like Australia, but also this new plant that we're building in North America, we're really excited about that it's going to.
Come online towards the backend of this year, maybe slightly ahead of where when we were first expecting I'm asking to deliver 100 basis points improvement our operational excellence also.
Well I mean, I think we are well into that we were well into that at IPO.
We're still tracking with that I think may be pricing.
Is the is the one that we've really had to put extra focus on for obvious reasons, when we set a IPO.
Youre going to see us taking our responsibility as a market leader extremely seriously.
Done that I think if you looked at the pricing that we've passed in Q1 I think you can see that bearing fruit, we've invested a lot of time.
Resource.
Amy.
Into the basics, but also to some of the more.
Systems based solutions.
Just to make sure that we're really doing everything we can to optimize across the board and so rolling all that together I think we feel really good about the 20% I think it drift back a little bit because of course, we're having to manage this cost inflation.
Exactly when it is going to abate.
Expecting it to sort of be somewhere near the peak at the moment.
What happens from here quarter by quarter, it's hard to tell so hopefully that gives you a bit of a sense of why we're guy.
No that's helpful and just a quick follow up on the free cash flow I mean, you made a conscientious effort to kind of bring some attention in your prepared remark on this but just to dig in a little bit more.
There was a decent amount of noise for the first couple of quarters as from 2021 much of that associated with the IPO IPO process, which is perfectly understandable, but once again.
Once we get through this difficult time on inflationary.
Fronts.
How should we think about further about the working capital metrics any other moving parts cash taxes.
Any data points that can give the investment community additional confidence.
To further drive your net debt.
Down further over the long term less than four five times would be greatly appreciated, but what should we be ultimately monitoring. Thank you.
Yeah, Let me let me just give you color as Todd again on the maybe the 'twenty two view if you take that midpoint of the EBITDA guidance, we're going to see about $50 million of cash taxes.
North of $75 million, just a little bit of cash interest.
75 to 85 or $80 million of one time costs.
And Thats really broken down by $30 million of our kind of North America footprint project. We're excited about that goes away.
About $7 million to $8 million of.
One time Sox implementation.
And then I'd say, maybe $10 million of ongoing M&A, which puts to our kind of growth algorithm of a couple of points of inorganic growth each year and.
And about $25 million of restructuring, which helps us towards our progression to 20% EBITDA margin outlook.
And then we're going to have this year about 130 of capex of which about 25% to $30 million linked to our North American footprint project.
Then after this year allows us to reset around that 3%.
Cash kind of target investment and on an ongoing basis and capex.
And then this year, we expect to have a bit of favorable working capital.
<unk> on a number of issues.
As an example, implementing supply chain financing to help extend our payables.
Doing a lot of work on investment in.
Advanced planning to help our inventory accuracy service levels as well as reduce our inventory over time. So we have a lot of focus in that area.
So thats kind of this year and you should get around $100 million of free cash flow in 2022, and then as our EBITDA outlook incur.
Increases will clearly have that going forward and if you want to think about your cash tax modeling you might take about 12, 5% of the incremental EBITDA and apply that to cash taxes, because we have some significant positive attributes.
To allow for that.
Around 3% on Capex going forward and our one times should migrate towards this.
$145 million.
Going forward, which then will clearly generate significant increases in 'twenty three.
Free cash flow over 'twenty two event.
That's hopefully a complete answer for it.
Very much so thank you so much.
Thank you ladies and gentlemen, just another reminder, if you'd like to ask a question Keith play Star then one if you'd like to ask a.
Question Tom.
The next question comes from Steve <unk> from RBC Capital. Please go ahead Ashish.
Hi, This is our day on for Ashish. Thanks for taking my question I just.
Given it's been a few weeks since you guys implemented.
The fuel surcharge I was just wondering if you guys had any comments on.
How the customer receptivity has been around that if youre getting any pushback and then maybe if you could just comment on how quickly. The surcharge is sort of designed to roll off if and when oil prices ease off as well. Thank you.
Yes, let me try to give you some insight here.
I think the first thing to say is.
Whereas in Q1.
Everything we do on pricing was strike price a nice charge as the key two onwards, it is going to be a mix of straight pricing and surcharge. So you Shouldnt think of this as it is all going to be surcharge going forward at what really matters here is that we explain the underlying dynamics to our customer survey.
Understand what's going on and what needs to happen.
To the pricing, let me give you a couple of examples.
So if you think of emerging markets right.
Volatile inflation.
It has always been part of the operating landscape.
Full price rises still so most of those changes that we're going to see in Q2 will be straight price rises.
But then if you're coming to western Europe , where obviously its tradition of being a much more benign environment that we are going much more with the surcharge and we've implemented a system based on LNG index.
We're going to update quarterly so.
The first one is gone in on a quarterly basis going forward, we'll be making adjustments.
And then at some point, we would expect that to come down maybe give you a sense of as we think about our total pricing for this year I think about 20% will be charge.
The balance of it.
It's going to be strike price.
Maybe just coming back I think to the other part of your question look I mean customers do not love this but I think overwhelmingly they understand that.
We're able to explained very clearly the underlying movements.
In the commodity prices and as we do that.
They are relatively readily understand and accept that.
We need to do this.
We feeling really bad as confident as we can at this stage of the process that we're going to be able to make the progress that we need to cross the pricing and the surcharges.
That's very helpful. Thank you.
Yeah.
Thank you. The next question comes from John Roberts from Credit Suisse. Please go ahead John .
Thank you.
The market's obviously concerned about high debt level companies and that's rising interest rate environment.
Are there ways you can accelerate the debt reduction by divesting, our partially divesting them when I'm thinking about is kasey are rare.
Eloquently Standalone unit and do you need to own 100% of KFC in order to get full value for the rest of your portfolio.
Hey, John It's Phil Let me deal with the task of thing and then.
Todd maybe can can give a fuller answer to your question, we don't have any.
Plans, our expectations to sell task and I'll tell you why the <unk> business is performing incredibly well.
We've invested a lot in innovation the guys have done a terrific job and it's really bearing fruit.
Future growth prospects are fantastic and as we've said before we know the task proposition integrate really well with the chemicals proposition and we think they will.
Really well together to allow us to.
Tight market share. So no I don't think we've got any plans at right now in that respect on task, but maybe you could give a broader answer is.
Interest rates and how it kind of trying to manage the impact of those.
Sure Phil.
First of all I would say, we're cognizant about our net debt leverage.
Which was four seven times in the quarter.
We believe that that number will be $4 four or below by the time, we get to year end year based on our outlook.
I would also say we're.
<unk> with our liquidity position at the moment.
We had over $650 million of liquidity at the end of the quarter and the fact that we have no maturities coming due on our long term debt until earliest 2028, I think puts us in a pretty good place at our weighted average cost of debt at less than 4%.
The other thing I think I would mentioned is we are looking at ways to <unk>.
Generation cash creatively.
We refinanced the business at an optimal time in the fall of 2021.
And as part of the refinancing we executed.
$5 billion of cross currency swaps.
We are in the money and in Q1 as an example, we converted that favorable.
Ross currency swap valuation and to $44 million of upfront cash here.
Also increases our liquidity. So I think that's not an example of.
A divestiture or noncore asset, but it is a great example of how I think we're doing a nice job managing liquidity and generation of cash.
I was just thinking since water treatment chemicals could be managed without you fully owning all of the assets in operation that maybe there might be other parts of your business that could be still a big part of the portfolio, but you don't have to own everything.
Yes.
Yes, John it's a good story.
It's one obviously, we've been spending time thinking through.
There's nothing significant that I can tell you about at this time.
Okay. Thank you.
Yes.
Thank you ladies and gentlemen, we have reached the end of the question answer session and now I would like to turn the call back to Phil Williams for closing remarks. Thank you Sir.
Thank you for that these are clearly tough times.
But against that backdrop, we feel like we're acquitting ourselves really well the pricing as you've seen.
<unk> has been market, leading on new business growth continues to accelerate on our cost containment is bearing fruit. So we're really facing into the challenges at.
Steering the business both for the short term, but also making sure that we've got at least half an eye on the medium term our navigating to two optimized against that timeline as well with that thank you all for your questions and for listening and we'll talk to you all again soon thank you.
Thank you. This concludes today's conference you may now disconnect. Your lines at this time. Thank you for your participation.
Okay.
Okay.
Yeah.
[music].
Yes.