Q2 2026 Dino Polska SA Earnings Call

August 21, 2026

Speaker #1: If you would like to ask a question, you may do so by using the raise-hand function at the bottom of your Zoom screen, or by pressing star 9 on your telephone keypad.

Operator: If you would like to ask a question, you may do so by using the raise hand function at the bottom of your Zoom screen or by pressing star nine on your telephone keypad. Further instructions will follow at the time of the Q&A session. I would now like to turn the call over to Grzegorz Uraziński, Head of Investor Relations.

Speaker #1: Further instructions will follow at the time of the Q&A session. I would now like to turn the call over to Grzegorz Uraziński, Head of Investor Relations.

Speaker #2: Thank you. Hello, this is Grzegorz Uraziński speaking. Thank you for joining our conference call during which we'll discuss Dino Polska's business result in the first half of the year.

Grzegorz Uraziński: Thank you. Hello, this is Grzegorz Uraziński speaking. Thank you for joining our conference call, during which we will discuss Dino Polska's business results in the H1. Our company's business results will be presented by Michał Krauze, Management Board Member and CFO. Alek Kalinowskas is also on the call to provide translation-related assistance. After our presentation, we will invite you to pose any questions you may have. Before I give the floor to Michał, 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. They are not official forecasts, and there is a risk that they will not materialize. Having this in mind, please review the disclaimer at the beginning of our presentation. Thank you. I will now give the floor to Michał Krauze.

Speaker #2: Our company's business results will be presented by Michał Krauze, management board member and CFO. Alek Kalinauskas is also on the call to provide translation-related assistance.

Speaker #2: After our presentation, we will invite you to pose any questions you may have. Before I give the floor to Michał, 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.

Speaker #2: They are not official forecasts, and there is a risk that they will not materialize. Having this in mind, please review the disclaimer at the beginning of our presentation.

Speaker #2: Thank you. I will now give the floor to Michał Krauze.

Speaker #3: Thank you, Grzegorz. My name is Michał Krauze, and I would like to welcome you warmly. In Q2, we continued the geographic expansion of our network.

Michał Krauze: Thank you, Grzegorz. My name is Michał Krauze, and I would like to welcome and warm you. In Q2, we continued the geographic expansion of our network. We opened 86 new Dino stores. In the H1, the number of new stores openings is 148. The latter half of the year should see the pace of new stores openings accelerate markedly. Our full year target for new stores adds is unchanged. We assume that the number of new stores openings measured as a percentage figure will increase by a number in the teens compared to 2025. At the end of June, the Dino network numbered 3,176 stores, up 12% from one year ago. Photovoltaic panels are a well-known part of outfitting our stores, which provide us with a large volume of electricity from renewable sources.

Speaker #3: We opened 86 new Dino stores. In the first half of the year, the number of new stores opening is 148. The latter half of the year should see the pace of new stores opening accelerate markedly.

Speaker #3: Our full-year target for new stores adds is unchanged. We assume that the number of new stores opening measured as a percentage figure will increase by a number in the teens compared to 2025.

Speaker #3: At the end of June, the Dino network numbered 3,176 stores. Up 12% from one year ago. Photovoltaic panels are a well-known part of outfitting our stores.

Speaker #3: Which provide us with a large volume of electricity from renewable sources. Starting this year, plastic bottle and aluminum can recycling machines have become another standard part of outfitting Dino stores.

Michał Krauze: Starting this year, plastic bottle and aluminum can recycling machines have become another standard part of outfitting Dino stores. The like-for-like sales growth rate was 2.2% in H1 and 0.3% in Q2. One factor that curtailed the pace of sales growth. Food price deflation dipped to an average single-digit level in Q2 compared to the first three months of the year. In addition, the shift of the Easter holiday from the end of April in 2025 to early April in 2026 adversely affected the growth rate of sales in Q2. For that reason, the growth rate of total revenue in H1 was 12.5%. Revenue rose only by 10.5% in the second quarter. Having these factors in mind, we expect that we will observe acceleration in the pace of top-line expansion in subsequent quarters. The EBITDA result was PLN 665 million in the second quarter.

Speaker #3: The like-for-like sales growth rate was 2.2% in H1 and 0.3% in Q2. One factor that curtailed the pace of sales growth put price deflation depend to an average single-digit level in Q2 compared to the first 3 months of the year.

Speaker #3: In addition, the shift of the Easter holiday from the end of April in 2025 to early April in 2026 adversely affected the growth rate of sales in Q2.

Speaker #3: For that reason, the growth rate of total revenue in H1 was 12.5%. Revenue rose only by 10.5% in the second quarter. Having this factors in mind, we expect that we will observe acceleration in the pace of top-line expansion in subsequent quarters.

Speaker #3: The bidder result was 665 million PLN. In the second quarter. It was up 2.2% from last year. A bidder was influenced by the Dino network's pricing policy focused on maximizing volumes.

Michał Krauze: It was up 2.2% from last year. EBITDA was influenced by the Dino network's pricing policy, focused on maximizing volumes. It was also affected by the relatively slow pace of top-line growth. As a result, the EBITDA margin fell to 7%. Operating cash flow in H1 totaled PLN 770 million and was at a similar level to last year. The Dino Group's total capital expenditures were PLN 980 million. To recap, the clear deflation in sales price adversely affected the growth rate of revenue. The knock-on effect is that it also has a negative impact on our profitability. Despite the fact that we started Q3 with the same level of deflation as in Q2, we believe that the upcoming quarters will produce a higher pace of top-line growth.

Speaker #3: It was also affected by the relatively slow pace of top-line growth. As a result, the bidder margin fell to 7%. Operating cash flow in the first half of the year totaled 770 million PLN and was at a similar level to last year.

Speaker #3: The Dino Group's total capital expenditures were 900,80 million PLN. To recap the clear deflation in sales price adversely affected the growth rate of revenue.

Speaker #3: The knock-on effect is that is also has a negative impact of our profitability. Despite the fact that we started the third quarter with the same level of deflation, as in the second quarter.

Speaker #3: We believe that the upcoming quarters will produce a higher pace of top-line growth. This will be important to reversing the negative trend of our profitability.

Michał Krauze: This will be important to reversing the negative trend of our profitability. Geographic expansion is firmly under control and continues to be an important driver of our growth. Thank you. I will now ask you to pose any questions.

Speaker #3: Geographic expansion is firmly under control, and continues to be an important driven of our growth. Thank you. I will now ask you to pose any questions.

Speaker #1: We will now move to our Q&A session. If you would like to ask a question at this time, please do so by clicking the raise hand at the bottom of your Zoom window under the reactions button.

Operator: We will now move to our Q&A session. If you would like to ask a question at this time, please do so by clicking the raise hand at the bottom of your Zoom window under the reactions button. If you would like to ask a question, please ensure you have renamed yourself so that we may identify you. Once called upon, please unmute your audio to ask your question. If you have joined via a phone line, please press star 9 to raise your hand and star 6 to unmute. Thank you. The first question comes from Richard Traynor from Bernstein. Richard, please unmute your line and ask your question.

Operator: We will now move to our Q&A session. If you would like to ask a question at this time, please do so by clicking the raise hand at the bottom of your Zoom window under the reactions button. If you would like to ask a question, please ensure you have renamed yourself so that we may identify you. Once called upon, please unmute your audio to ask your question. If you have joined via a phone line, please press star 9 to raise your hand and star 6 to unmute. Thank you. The first question comes from Richard Trainor from Bernstein. Richard, please unmute your line and ask your question.

Speaker #1: If you would like to ask a question, please ensure you have renamed yourself so that we may identify you. Once called upon, please unmute your audio to ask your question.

Speaker #1: If you have joined via a phone line, please press star 9 to raise your hand and star 6 to unmute. Thank you. Okay, the first question comes from Richard Trainer from Bernstein.

Speaker #1: Richard, please unmute your line and ask your question.

Speaker #4: Hello. Can you hear me?

Richard Traynor: Hello, can you hear me?

Richard Trainor: Hello, can you hear me?

Speaker #2: Yes.

Alek Kalinowskas: Yes.

[Translator]: Yes.

Speaker #4: Great. So like-for-likes slowed to 0.3% in quarter two. Can you comment on how much of that was driven by deflation versus volume trends or perhaps something about the mixture of volume and price or average baskets?

Richard Traynor: Great. So like-for-likes slowed to 0.3% in Q2. Can you comment on how much of that was driven by deflation versus volume trends? Or perhaps something about the mixture of volume and price or average baskets? Just some more detail on the like-for-like drivers, please.

Richard Trainor: Great. So like-for-likes slowed to 0.3% in Q2. Can you comment on how much of that was driven by deflation versus volume trends? Or perhaps something about the mixture of volume and price or average baskets? Just some more detail on the like-for-like drivers, please.

Speaker #4: Just some more detail on the like-for-like drivers, please.

Speaker #2: Thanks. So like-for-like spowolnił się tam do 0.3% w drugim kwartale. I chciałbym zapytać, w jakim stopniu zawdzięczamy to deflacji, w stosunku do wolumenu, ewentualnie może to jest efekt struktury wolumenu plus ceny, czy ewentualnie jak wygląda średnia wartość koszyku.

Alek Kalinowskas: Także z tego, co pan powiedział, like-for-like spowolnił do 0.3% w drugim kwartale. I chciałbym zapytać, w jakim stopniu zawdzięczamy to deflacji w stosunku do wolumenu? Ewentualnie może to jest efekt struktury wolumenu plus ceny, czy ewentualnie jak wygląda średnia wartość koszyku? Proszę o dalszy komentarz, jak należy to zrozumieć.

[Translator]: Także z tego, co pan powiedział, like-for-like spowolnił do 0.3% w drugim kwartale. I chciałbym zapytać, w jakim stopniu zawdzięczamy to deflacji w stosunku do wolumenu? Ewentualnie może to jest efekt struktury wolumenu plus ceny, czy ewentualnie jak wygląda średnia wartość koszyku? Proszę o dalszy komentarz, jak należy to zrozumieć.

Speaker #2: Także proszę o dalszy komentarz, jak należy to zrozumieć.

Speaker #3: Deflacja była w drugim kwartale tego roku. Deflacja była dwa razy wyższa niż w pierwszym kwartale. Mieliśmy do czynienia z deflacją na poziomie na produktach spożywczych, na poziomie około 4.5%, a na produktach świeżych to było około 6 punktów procentowych.

Michał Krauze: Deflacja w drugim kwartale tego roku była dwa razy wyższa niż w pierwszym kwartale. Mieliśmy do czynienia z deflacją na produktach spożywczych na poziomie około 4.5%, a na produktach świeżych to było około sześciu punktów procentowych.

Speaker #2: So we can say that deflation in Q2 was twice as high as we had seen in Q1. So we can say that if we look at fresh products, the deflation was 6 percentage points, whereas with respect to regular groceries it was 4.5%.

Alek Kalinowskas: So we can say that deflation in Q2 was twice as high as we had seen in Q1. So we can say that if we look at fresh products, the deflation was six percentage points, whereas with respect to regular groceries it was 4.5%.

[Translator]: So we can say that deflation in Q2 was twice as high as we had seen in Q1. So we can say that if we look at fresh products, the deflation was six percentage points, whereas with respect to regular groceries it was 4.5%.

Speaker #3: Do tego mieliśmy jeszcze efekt przesunięcia świąt wielkanocnych, także to odpowiada na pytanie, jakie były wolumeny, dlatego mamy like-for-like na plusie, że zrobiliśmy wzrost przychodów wolumenem.

Michał Krauze: Do tego mieliśmy jeszcze efekt przesunięcia Świąt Wielkanocnych. Także to odpowiada na pytanie, jakie były wolumeny. Dlatego mamy like-for-like na plusie, że zrobiliśmy wzrost przychodów wolumenem.

Speaker #2: And so we also had the Easter shift, so the shift in the timing of the Easter holiday. So this showed that we were able to perform or deliver the volumes, and that's why we were able to keep the like-for-like figure in the black.

Alek Kalinowskas: And so we also had the Easter shifts or the shift in the timing of the Easter holiday. So this showed that we were able to perform or deliver the volumes and that's why we were able to keep the like-for-like figure in the black.

[Translator]: And so we also had the Easter shifts or the shift in the timing of the Easter holiday. So this showed that we were able to perform or deliver the volumes and that's why we were able to keep the like-for-like figure in the black.

Speaker #4: That's great. Thank you very much. And just one more, if I may. Have has trading evolved since the end of the half year? Can you comment on the like-for-like trend that you've seen in July?

Richard Traynor: That's great. Thank you very much. Just one more if I may. How has trading evolved since the end of the H1? Can you comment on the like-for-like trend that you've seen in July and August?

Richard Trainor: That's great. Thank you very much. Just one more if I may. How has trading evolved since the end of the H1? Can you comment on the like-for-like trend that you've seen in July and August?

Speaker #4: And August?

Speaker #2: Thanks. Dziękuję bardzo za wyczerpującą odpowiedź. Odpowiadam na pytanie. Czy pan może przy okazji jeszcze skomentować, jak wyglądają warunki jak idą obroty załóżmy po zakończeniu pierwszego kwartału, czyli mniej więcej jak idzie tutaj w lipcu?

Alek Kalinowskas: Dziękuję bardzo za wyczerpującą odpowiedź. Odpowiada na pytanie. Czy pan może przy okazji jeszcze skomentować, jak wyglądają warunki, jak idą obroty, załóżmy po zakończeniu Q1, czyli mniej więcej jak idzie tutaj w lipcu?

[Translator]: Dziękuję bardzo za wyczerpującą odpowiedź. Odpowiada na pytanie. Czy pan może przy okazji jeszcze skomentować, jak wyglądają warunki, jak idą obroty, załóżmy po zakończeniu Q1, czyli mniej więcej jak idzie tutaj w lipcu?

Speaker #3: To znaczy, jesteśmy zadowoleni z wolumenów, ale w trzecim kwartale weszliśmy z inflacją na poziomie którą mieliśmy na którym mieliśmy osiągaliśmy w drugim kwartale.

Michał Krauze: To znaczy jesteśmy zadowoleni z wolumenów, ale w 3 kwartał weszliśmy z inflacją na poziomie, który osiągaliśmy w 2 kwartale.

Speaker #2: So we can say that we're satisfied or pleased with the volumes that we've seen coming into Q3, but we have to remember that we have we start with the same level of deflation that we had seen in the previous quarter.

Alek Kalinowskas: We can say that we're satisfied or pleased with the volumes that we've seen coming into Q3.

[Translator]: We can say that we're satisfied or pleased with the volumes that we've seen coming into Q3.

Speaker #3: I na razie ta sytuacja nie ulega zmianie.

Michał Krauze: I na razie ta sytuacja nie ulega zmianie.

Speaker #2: And we can say that at present that situation hasn't changed.

Alek Kalinowskas: We can say that at present that situation hasn't changed.

[Translator]: We can say that at present that situation hasn't changed.

Speaker #4: That's great. Thank you very much.

Richard Traynor: That's great. Thank you very much.

Richard Trainor: That's great. Thank you very much.

Speaker #2: To dziękuję bardzo.

Alek Kalinowskas: To dziękuję bardzo.

[Translator]: To dziękuję bardzo.

Speaker #1: Our next question comes from Isabel de Brava from Morgan Stanley. Isabel, please unmute your line and ask your question.

Operator: Our next question comes from Isabelle de Breuville from Morgan Stanley. Isabelle, please unmute your line and ask your question.

Operator: Our next question comes from Isabelle Dobreva from Morgan Stanley. Isabelle, please unmute your line and ask your question.

Speaker #5: Hello. Thank you for taking my questions. I had two. My first question is on the outlook for your gross margin. Could you give us a sense of how much help you had in the gross margin from falling big wholesale prices over the quarter?

Isabelle de Breuville: Hello. Thank you for taking my questions. I had two. My first question is on the outlook for your gross margin. Could you give us a sense of how much help you had in the gross margin from falling pig wholesale prices over the quarter, and to what extent that was reflected in lower shelf prices for pork? Then looking forward, how do you expect your gross margin to evolve based on your outlook for pig wholesale prices?

Isabelle Dobreva: Hello. Thank you for taking my questions. I had two. My first question is on the outlook for your gross margin. Could you give us a sense of how much help you had in the gross margin from falling pig wholesale prices over the quarter, and to what extent that was reflected in lower shelf prices for pork? Then looking forward, how do you expect your gross margin to evolve based on your outlook for pig wholesale prices?

Speaker #5: And to what extent that was reflected in lower shelf prices for pork? And then looking forward, how do you expect your gross margin to evolve based on your outlook for big wholesale prices?

Speaker #2: Dobrze. Ja mam dwa pytania. Pierwsze pytanie dotyczy perspektywy dla kształtowania się marży brutto w najbliższym czasie i w jakim stopniu załóżmy mogliście korzystać na spadających cenach u hurtowników, prawda?

Alek Kalinowskas: Dobrze, ja mam dwa pytania. Pierwsze pytanie dotyczy perspektywy dla kształtowania się marży brutto w najbliższym czasie i w jakim stopniu, załóżmy, mogliście korzystać na spadających cenach u hurtowników, jednocześnie mając na uwadze niższą cenę w odniesieniu do wieprzowiny. Drugie pytanie: czego należy się spodziewać, jeżeli chodzi o marżę brutto, biorąc pod uwagę to, co się dzieje w hurcie?

[Translator]: Dobrze, ja mam dwa pytania. Pierwsze pytanie dotyczy perspektywy dla kształtowania się marży brutto w najbliższym czasie i w jakim stopniu, załóżmy, mogliście korzystać na spadających cenach u hurtowników, jednocześnie mając na uwadze niższą cenę w odniesieniu do wieprzowiny. Drugie pytanie: czego należy się spodziewać, jeżeli chodzi o marżę brutto, biorąc pod uwagę to, co się dzieje w hurcie?

Speaker #2: I jednocześnie mając na uwadze niższą cenę, prawda, w odniesieniu tam do wieprzowiny. No i drugie pytanie, czego należy się spodziewać jeżeli chodzi o marżę brutto, biorąc pod uwagę to, co się dzieje w hurcie.

Speaker #3: To znaczy, tak jak powiedziałem wcześniej, przede wszystkim skupiamy się na tym, żeby maksymalizować wolumeny sprzedażowe. Ale widzimy pozytywne efekty wyższej sprzedaży w tym, że mamy poprawione warunki zakupowe.

Michał Krauze: Znaczy tak jak powiedziałem wcześniej, przede wszystkim skupiamy się na tym, żeby maksymalizować wolumeny sprzedażowe, ale widzimy pozytywne efekty wyższej sprzedaży w tym, że mamy poprawione warunki zakupowe.

Speaker #2: So above all, as I indicated, we're focusing on maximizing volumes for the purposes of driving sales. But we do see positive effects coming from improving purchasing conditions.

Alek Kalinowskas: So above all, as I indicated, we're focusing on maximizing volumes for the purposes of driving sales, but we do see positive effects coming from improving purchasing conditions.

[Translator]: So above all, as I indicated, we're focusing on maximizing volumes for the purposes of driving sales, but we do see positive effects coming from improving purchasing conditions.

Speaker #3: I sądzę, że.

Isabelle de Breuville: Okay. Thank you.

Isabelle Dobreva: Okay. Thank you.

Speaker #5: Okay. Thank you.

Speaker #3: I sądzę, że po trendzie wydaje się, że marża brutto powinna być wsparciem dla rentowności.

Michał Krauze: I sądząc po trendzie wydaje się, że marża brutto powinna być wsparciem dla rentowności.

Speaker #2: And looking at the trend, we anticipate that this should act as, let's say, support for improving overall profitability.

Alek Kalinowskas: Looking at the trend, we anticipate that this should act as, let's say, support for improving overall profitability.

[Translator]: Looking at the trend, we anticipate that this should act as, let's say, support for improving overall profitability.

Speaker #1: Our next question comes from Volodymyr Shkuropat from Kepler Chevy. Volodymyr, please unmute your line and ask your question.

Operator: Our next question comes from Vladimir Skurabat from Kepler Cheuvreux. Vladimir, please unmute your line and ask your question.

Operator: Our next question comes from Volodymyr Shkuropat from Kepler Cheuvreux. Vladimir, please unmute your line and ask your question.

Speaker #6: Hi. Two questions from my side, if I may. First, if we take your shelf deflation in Q2 and compare it with 0.3% like-for-like, it seems that volume growth was around 5 to 6%.

Vladimir Skurabat: Hi, two questions from my side, if I may. First, if we take your shelf deflation in Q2 and compare it with 0.3% like-for-like, it seems that volume growth was around 5% to 6%. Could you tell us what is driving this volume growth? Is it mainly more customer visits or are customers buying more items per basket because products are just getting cheaper? This is the first question.

Volodymyr Shkuropat: Hi, two questions from my side, if I may. First, if we take your shelf deflation in Q2 and compare it with 0.3% like-for-like, it seems that volume growth was around 5% to 6%. Could you tell us what is driving this volume growth? Is it mainly more customer visits or are customers buying more items per basket because products are just getting cheaper? This is the first question.

Speaker #6: Could you tell us what is driving this volume growth? Is it mainly more customer visits, or are customers buying more items per basket? Because products are just getting cheaper.

Speaker #6: This is the first question.

Speaker #2: To ja mam dwa pytania. Może zacznę od pierwszego. Jak patrzymy tutaj na spadającą cenę, prawda, spadający ceny w ramach tej deflacji w drugim kwartale, czyli 0.3%, z tego wynika, że mniej więcej przyrost wolumenu wynosił w przedziale od 5 do 6%.

Alek Kalinowskas: To ja mam dwa pytania. Może zacznę od pierwszego. Jak patrzymy na spadające ceny w ramach tej deflacji w Q2, czyli 0.3%, z tego wynika, że mniej więcej przyrost wolumenu wynosił w przedziale od 5% do 6%. I chciałbym zapytać, z czego wynika ten większy wolumen? Czy to znaczy, że jest większa liczba wizyt ze strony klientów, konsumentów? Czy to jest tak, że klienci kupują więcej artykułów w ramach jednego koszyka ze względu na to, że ceny są niższe?

[Translator]: To ja mam dwa pytania. Może zacznę od pierwszego. Jak patrzymy na spadające ceny w ramach tej deflacji w Q2, czyli 0.3%, z tego wynika, że mniej więcej przyrost wolumenu wynosił w przedziale od 5% do 6%. I chciałbym zapytać, z czego wynika ten większy wolumen? Czy to znaczy, że jest większa liczba wizyt ze strony klientów, konsumentów? Czy to jest tak, że klienci kupują więcej artykułów w ramach jednego koszyka ze względu na to, że ceny są niższe?

Speaker #2: I chciałbym zapytać, z czego wynika ten większy wolumen? Czy to znaczy, że klienci przechodzą, czy jest większy liczba wizyt ze strony klientów, konsumentów, czy to jest tak, że klienci kupują więcej artykułów w ramach jednego koszyka, ze względu na to, że ceny są niższe?

Speaker #3: Znaczy, mamy do czynienia z jednym i z drugim zjawiskiem.

Michał Krauze: Mamy do czynienia z jednym i z drugim zjawiskiem.

Speaker #2: So we can say that both of those phenomena are taking place.

Alek Kalinowskas: So we can say that both of those phenomena are taking place.

[Translator]: So we can say that both of those phenomena are taking place.

Speaker #3: Staramy się przyciągnąć klienta do naszych sklepów, a ofertą staramy się sprawić to, że klient kupi więcej.

Michał Krauze: Staramy się przyciągnąć klienta do naszych sklepów, a ofertą staramy się sprawić to, że klient kupi więcej.

Speaker #2: So basically what we're trying to do is bring customers in through the doors so be attractive to bring them in through the doors and then having the offering that we have in place we're encouraging customers basically to buy more.

Alek Kalinowskas: Basically what we are trying to do is bring customers in through the doors. Be attractive to bring them in through the doors and then having the offering that we have in place, we are encouraging customers basically to buy more.

[Translator]: Basically what we are trying to do is bring customers in through the doors. Be attractive to bring them in through the doors and then having the offering that we have in place, we are encouraging customers basically to buy more.

Vladimir Skurabat: Okay, thank you. My second question, you just mentioned that the gross margin should be supportive for the profitability in the coming quarters. Is it because you are seeing some kind of lower competitive intensity or that customers are becoming less price sensitive? Why would that be the case since in H1 you still got a slight decline? As I understand, your procurement benefits were basically reinvested into prices, so the effect was neutral broadly.

Volodymyr Shkuropat: Okay, thank you. My second question, you just mentioned that the gross margin should be supportive for the profitability in the coming quarters. Is it because you are seeing some kind of lower competitive intensity or that customers are becoming less price sensitive? Why would that be the case since in H1 you still got a slight decline? As I understand, your procurement benefits were basically reinvested into prices, so the effect was neutral broadly.

Speaker #6: Okay. Thank you. And my second question, you just mentioned that the gross margin should be supportive for the profitability in the coming quarters. Is it because you are seeing some kind of lower competitive intensity or that customers are becoming less price sensitive?

Speaker #6: So why would that be the case since in the first half you still got a slight decline and I understand your procurement benefits were basically reinvested into prices?

Speaker #6: So the effect was neutral. Broadly.

Speaker #2: Dobra. Chciałbym jeszcze zapytać o to stwierdzenie, że marże brutto może działać jako wsparcie dla rentowności w drugiej połowie roku. Czy z czego to wynika?

Alek Kalinowskas: Dobra, chciałbym jeszcze zapytać o to stwierdzenie, że marża brutto może działać jako wsparcie dla rentowności w drugiej połowie roku. Z czego to wynika? Czy to wynika z tego, że konkurencyjność jest mniej intensywna jak dotąd? Czy może konsumenci są mniej wrażliwi na ceny jak dotąd? Bo w pierwszym półroczu był lekki spadek, czyli były pewne korzyści wynikające z poprawionych warunków zakupu, ale de facto dokonaliście reinwestycji klientów i dlatego efekt był w zasadzie neutralny. Jak należy to zrozumieć?

[Translator]: Dobra, chciałbym jeszcze zapytać o to stwierdzenie, że marża brutto może działać jako wsparcie dla rentowności w drugiej połowie roku. Z czego to wynika? Czy to wynika z tego, że konkurencyjność jest mniej intensywna jak dotąd? Czy może konsumenci są mniej wrażliwi na ceny jak dotąd? Bo w pierwszym półroczu był lekki spadek, czyli były pewne korzyści wynikające z poprawionych warunków zakupu, ale de facto dokonaliście reinwestycji klientów i dlatego efekt był w zasadzie neutralny. Jak należy to zrozumieć?

Speaker #2: Czy to wynika z tego, że jakby konkurencyjność jest mniej intensywna jak dotąd, czy może konsumenci są mniej wrażliwi na ceny jak dotąd? Bo w pierwszym półroczu był lekki spadek, czyli były pewne korzyści wynikające załóżmy z poprawionych warunków zakupu, ale de facto dokonaliście reinwestycji tak w klientów i dlatego efekt był w zasadzie neutralny.

Speaker #2: Jak należy to zrozumieć?

Speaker #3: Przede wszystkim będziemy skupiali się na wolumenach. Także to jest cel numer jeden. Jeśli chodzi o konsumenta, to konsument zawsze był wrażliwy i jest wrażliwy cenowo.

Michał Krauze: Przede wszystkim będziemy skupiali się na wolumenach. To jest cel numer jeden. Jeśli chodzi o konsumenta, to konsument zawsze był wrażliwy i jest wrażliwy cenowo. Efekt poprawy marży będziemy próbowali uzyskać na poprawie warunków zakupowych.

Speaker #3: Efekt poprawy marży będziemy próbowali uzyskać na poprawie warunków zakupowych.

Speaker #2: So I can say once again that what we're focusing on is delivering volumes. That's our number one goal, our top goal. Second, I can say that the consumer is and has always been price sensitive.

Alek Kalinowskas: I can say once again that what we are focusing on is delivering volumes. That is our number one goal, our top goal. Second, I can say that the consumer is and has always been price sensitive. The effect that we want to achieve is through improving purchasing conditions.

[Translator]: I can say once again that what we are focusing on is delivering volumes. That is our number one goal, our top goal. Second, I can say that the consumer is and has always been price sensitive. The effect that we want to achieve is through improving purchasing conditions.

Speaker #2: And so the effect that we want to achieve

Speaker #1: Is through improving purchasing conditions And so what we're going to be grappling with , of course , is a smaller base . If we look at the gross margin

Michał Krauze: No i będziemy się mierzyć z niższą bazą, jeśli chodzi o marżę brutto.

Alek Kalinowskas: What we are going to be grappling with, of course, is a smaller base, if we look at the gross margin.

[Translator]: What we are going to be grappling with, of course, is a smaller base, if we look at the gross margin.

Speaker #2: Okay . Thanks . And the last question , if I , if I , if I may . You said that you're not currently seeing any turning point from from the deflation that was in the Q and in which you are experiencing at the beginning of Q3 So the question is when when you will see that the cost from the suppliers are starting to grow .

Vladimir Skurabat: Okay, thanks. The last question, if I may. You said that you are not currently seeing any turning point from the deflation that was in Q2 and which you are experiencing at the beginning of Q3. The question is when you will see that the costs from the suppliers are starting to grow, how quickly would you expect this to be reflected in shelf prices? How much of the cost increases are you expecting to pass on to customers?

Volodymyr Shkuropat: Okay, thanks. The last question, if I may. You said that you are not currently seeing any turning point from the deflation that was in Q2 and which you are experiencing at the beginning of Q3. The question is when you will see that the costs from the suppliers are starting to grow, how quickly would you expect this to be reflected in shelf prices? How much of the cost increases are you expecting to pass on to customers?

Speaker #1: Thank you. And my second question—you just mentioned that the gross margin should be supportive for profitability in the coming quarters. Is it because you are seeing some kind of lower competitive intensity, or that customers are becoming less price-sensitive?

Speaker #2: How quickly would you expect this to be reflected in shelf prices ? How much of the cost increases are you expecting to pass on to customers

Speaker #1: So why would that be the case, since in the first half you still got a slight decline in S&S 10, your procurement benefits were basically reinvested into prices, so the effect was neutral?

Speaker #2: Przede wszystkim wkładamy wiele zaangażowania w to, aby oferować naszym pracownikom atrakcyjne warunki pracy i wynagrodzenia. Wierzymy, że większość pracowników Dino docenia nasze starania.

Alek Kalinowskas: Dobra, ostatnie moje pytanie. Z tego, co pan powiedział, wynika, że jak dotąd nie widzimy odwrócenia trendu w przypadku deflacji. Czyli deflacja taka, jaka była w Q2, dalej jest taka w Q3. Moje pytanie jest takie: jeżeli pomyślimy o tym momencie, który nadejdzie w którymś momencie, że ceny wystawione przez dostawców będą wzrastać, chciałbym zapytać, w którym momencie państwo będą chcieli, czy w jakim stopniu, procentowo rzecz ujmując, będziecie chcieli to przenieść na konsumentów, jeżeli chodzi o ceny przy półkach?

[Translator]: Dobra, ostatnie moje pytanie. Z tego, co pan powiedział, wynika, że jak dotąd nie widzimy odwrócenia trendu w przypadku deflacji. Czyli deflacja taka, jaka była w Q2, dalej jest taka w Q3. Moje pytanie jest takie: jeżeli pomyślimy o tym momencie, który nadejdzie w którymś momencie, że ceny wystawione przez dostawców będą wzrastać, chciałbym zapytać, w którym momencie państwo będą chcieli, czy w jakim stopniu, procentowo rzecz ujmując, będziecie chcieli to przenieść na konsumentów, jeżeli chodzi o ceny przy półkach?

Speaker #1: I odrodzenie trend of deflates deflation for just checking quarterly Cost Of Nar consignment

Speaker #1: Broadly.

Speaker #2: Uh-huh. Dobra, chciałbym jeszcze zapytać o to stwierdzenie, że marże brutto mogą działać jako wsparcie dla rentowności w drugiej połowie roku. Z czego to wynika?

Speaker #2: Czy to wynika z tego, że konkurencyjność jest mniej intensywna, jak dotąd? Czy może konsumenci są mniej wrażliwi na ceny, jak dotąd? Bo w pierwszym półroczu był lekki spadek, czyli były pewne korzyści wynikające z, załóżmy, z poprawionych warunków zakupu, ale de facto dokonaliście reinwestycji w klientów i dlatego efekt był w zasadzie neutralny.

Michał Krauze: Nie ma jednoznacznej odpowiedzi na to pytanie. Dla nas najważniejsze będą to, jakie będą wolumeny, jaka będzie akceptacja klienta na daną cenę i jaka będzie konkurencja w danym asortymencie.

Speaker #3: Volume On a Denim . Assortment

Speaker #2: Jak należy to zrozumieć?

Speaker #1: So . There's no clear response to the question . You've just posed . Because it's all a matter of several factors taken together .

Alek Kalinowskas: There's no clear response to the question you've just posed, because it's all a matter of several factors taken together. It's linked to the volumes, it's linked to customer acceptance for a price growth, and at the same time, it depends on what sort of competition we'll see in individual categories.

[Translator]: There's no clear response to the question you've just posed, because it's all a matter of several factors taken together. It's linked to the volumes, it's linked to customer acceptance for a price growth, and at the same time, it depends on what sort of competition we'll see in individual categories.

Speaker #1: Przede wszystkim będziemy skupiali się na wolumenach, także to jest cel numer jeden. Jeśli chodzi o konsumenta, to konsument zawsze był wrażliwy i jest wrażliwy. Marżę będziemy próbowali uzyskać na poprawie warunków zakupowych.

Speaker #1: It's linked to the volumes . It's linked to customer acceptance for price growth . And at the same time , it depends on what sort of competition we'll see in individual categories

Speaker #2: Thank you

Vladimir Skurabat: Thank you.

Volodymyr Shkuropat: Thank you.

Speaker #2: So, I can say once again that what we're focusing on is delivering volumes. That's our number-one goal—our top goal. Second, I can say that the consumer is, and has always been, price sensitive.

Alek Kalinowskas: Dziękuję.

[Translator]: Dziękuję.

Speaker #4: Our next question comes from Matthew Clements from Barclays . Matthew , please unmute your line and ask your question Matthew , you can unmute your line now and ask your question Okay .

Operator: Our next question comes from Matthew Clements from Barclays. Matthew, please unmute your line and ask your question. Matthew, you can unmute your line now and ask your question. Okay, we don't seem. Matthew's unmuted now.

Speaker #2: And so, the effect that we want to achieve is through improving purchasing conditions.

Speaker #1: No i w drugim półroczu będziemy się mierzyć z niższą bazą, jeśli chodzi o marżę brutto.

Speaker #4: We don't seem Matthew's unmuted now .

Speaker #2: And so, what we're going to be grappling with, of course, is a smaller base if we look at the gross margin.

Speaker #5: Can you hear me

Matthew Clements: Can you hear me?

Speaker #1: Yes .

Alek Kalinowskas: Yes.

[Translator]: Yes.

Matthew Clements: You can hear me. Thank you for your time. Sorry about that. Two quick questions, if I can. First one, there's a few messages there on the H2 outlook. In very basic terms, it sounds like you're expecting like-for-like growth sequentially in H2. Would you also expect profit growth in H2 to be better than H1? The second question, you stepped up price investments in H2 of last year. What response have you seen from consumers and competitors this year, and how much more do you need to do to get price positioning back to where you want it? Thank you.

Speaker #5: Hi Thank you for your time . Sorry about that . Two quick questions , if I can . First one , there's a few messages there on .

Speaker #1: Okay, thanks. And the last question, if I may: you said that you're not currently seeing any turning point from the deflation that was in Q2 and which you are experiencing at the beginning of Q3.

Speaker #5: On the second half outlook in very basic terms , it sounds like you're expecting like to like to improve sequentially in the second half .

Speaker #5: Would you also expect profit growth performance in the second half to be better than the first half The second question you stepped up price investments in the second half of the year .

Speaker #1: So the question is, when you will see that the costs from. Detailed fashion, in response to that question. I can say, however, that, you know, since the beginning of this year we've added another, you know, more than 5,000 new people, new hires, and we continue to receive new apps—new applications—work, job applications, and continue hiring people.

Speaker #5: What response have you seen from consumers competitive competitors in the first half of this year , and how much more do you do to get price positioning back where you want it ?

Speaker #5: Thank you .

Alek Kalinowskas: Dobrze. Pierwsze: ja mam dwa pytania, generalnie rzecz biorąc. Te przesłania, które wynikają z prezentacji, są takie, że państwo spodziewają się, że like-for-like ulegnie poprawie w drugim półroczu i jednocześnie rentowność się poprawi. Czyli nastąpi tutaj poprawa w obu tych obszarach. Chciałbym się upewnić, że tak jest. Drugie, że te inwestycje cenowe, czy reinwestycje cenowe, które są czynione. Chciałbym zapytać, jaka jest jak dotąd reakcja ze strony konkurencji w odniesieniu do tego?

[Translator]: Dobrze. Pierwsze: ja mam dwa pytania, generalnie rzecz biorąc. Te przesłania, które wynikają z prezentacji, są takie, że państwo spodziewają się, że like-for-like ulegnie poprawie w drugim półroczu i jednocześnie rentowność się poprawi. Czyli nastąpi tutaj poprawa w obu tych obszarach. Chciałbym się upewnić, że tak jest. Drugie, że te inwestycje cenowe, czy reinwestycje cenowe, które są czynione. Chciałbym zapytać, jaka jest jak dotąd reakcja ze strony konkurencji w odniesieniu do tego?

Speaker #1: Presentation . So On a like for like Jednoczesnie . Most I'm Oboe Tak tak jest . The . Invest some . Reinvest . In To .

Speaker #1: Concurrency

Michał Krauze: Jeśli chodzi o poprawę like-for-like w drugim półroczu, to my zakładamy, że ta poprawa powinna nastąpić, ale będzie to bardzo powolny wzrost, bo tak jak powiedziałem na początku, Q3 rozpoczęliśmy deflacją na poziomie wartości procentowych z ubiegłego kwartału.

Speaker #3: Like for . Like The . For A Present . 80% . Of .

Speaker #1: So with response to your first question . In fact , that's true . We do anticipate that like for like should improve the performance in this area should improve over the latter half of the year .

Alek Kalinowskas: With regard to your first question, in fact, that is true. We do anticipate that like-for-like should improve. The performance in this area should improve over the latter half of the year, but we believe that this is going to be a slow, steady improvement because we have to remember, be cognizant that we started Q3 with the same level of deflation as we had in Q2.

[Translator]: With regard to your first question, in fact, that is true. We do anticipate that like-for-like should improve. The performance in this area should improve over the latter half of the year, but we believe that this is going to be a slow, steady improvement because we have to remember, be cognizant that we started Q3 with the same level of deflation as we had in Q2.

Speaker #1: But we believe that this is going to be a slow , steady improvement because we have to remember , be cognizant that the we started Q3 with the same level of deflation as we had in Q2 So as I said , we see improvement , say , at the level of gross margin , but with , let's say , top line growth .

Michał Krauze: Jeśli chodzi o rentowność, to tak jak wspomniałem, oczywiście tutaj widzimy poprawę na poziomie marży brutto, ale niski wzrost przychodów będzie powodował to, że koszty mogą rosnąć szybciej niż przychody.

Alek Kalinowskas: As I said, we see improvement, say, at the level of a gross margin. But with, let's say, top-line growth or revenue growth being slow, they are slowly growing. There is a possibility that cost growth could outpace that revenue growth.

[Translator]: As I said, we see improvement, say, at the level of a gross margin. But with, let's say, top-line growth or revenue growth being slow, they are slowly growing. There is a possibility that cost growth could outpace that revenue growth.

Speaker #1: So revenue growth being slow , they're slowly growing . There is a possibility that cost growth could outpace that revenue growth .

Speaker #3: You hold your concurrency

Michał Krauze: Jeśli chodzi o reakcję konkurencji, tutaj nie chcielibyśmy komentować.

Speaker #1: Commentary in terms of how the competition , let's say , has responded or reacted . This is not something that we would like to make any comments about

Alek Kalinowskas: In terms of how the competition, let's say, has responded or reacted, this is not something that we would like to make any comments about.

[Translator]: In terms of how the competition, let's say, has responded or reacted, this is not something that we would like to make any comments about.

Speaker #5: Okay . Thank you

Matthew Clements: Okay. Thank you.

Alek Kalinowskas: Dziękuję.

[Translator]: Dziękuję.

Speaker #4: Thank you . Our next question comes from Elena Jouronova from JP Morgan . Please unmute your line and ask your question

Operator: Thank you. Our next question comes from Elena Geranova from JP Morgan. Elena, please unmute your line and ask your question.

Operator: Thank you. Our next question comes from Elena Jouronova from JPMorgan. Elena, please unmute your line and ask your question.

Speaker #6: Hi . Hello , everyone . I have quite a few questions . Appreciate if I can ask them all first , quickly please .

Elena Geranova: Hi. Hello, everyone. I have quite a few questions. Appreciate if I can ask them all. First, quickly, please. On the store openings, what should we expect for the H2? I understand that you plan acceleration, but what are we targeting for full year or H2 standalone, please?

Elena Jouronova: Hi. Hello, everyone. I have quite a few questions. Appreciate if I can ask them all. First, quickly, please. On the store openings, what should we expect for the H2? I understand that you plan acceleration, but what are we targeting for full year or H2 standalone, please?

Speaker #6: On the store openings , how what should we expect for the second half ? I understand that you plan acceleration , but what are we targeting for full year or second half ?

Speaker #6: Standalone ? Please

Alek Kalinowskas: Dobrze, mam sporo pytań. Może zacznę tutaj od pierwszego pytania dotyczącego liczby otwartych sklepów w drugim półroczu. Rozumiem, że planowane jest przyspieszenie w tym obszarze, ale chciałbym zapytać, jaki jest plan, załóżmy target, cel na cały rok, ewentualnie jaki jest ten target na drugie półrocze? Czego należy się spodziewać?

[Translator]: Dobrze, mam sporo pytań. Może zacznę tutaj od pierwszego pytania dotyczącego liczby otwartych sklepów w drugim półroczu. Rozumiem, że planowane jest przyspieszenie w tym obszarze, ale chciałbym zapytać, jaki jest plan, załóżmy target, cel na cały rok, ewentualnie jaki jest ten target na drugie półrocze? Czego należy się spodziewać?

Speaker #1: Go Jim To Plan a target cell na Zdrowie rock . Eventually . Target na drugi . Spasojevic

Michał Krauze: Jeśli chodzi o otwarcie, to w ubiegłym roku otworzyliśmy 340 sklepów. W tym roku chcielibyśmy powiększyć tą liczbę o kilkanaście procent. Także te otwarcia oczywiście będą w drugim półroczu, a najwięcej pewnie w Q4.

Speaker #3: Po Procent A

Speaker #1: So I can put it this way , that if we look at openings last year , we opened some 340 stores . And so we want to achieve a growth in , let's say in the teens with respect to to last year's performance , where we'll see the bulk of those openings transpiring in Q4

Alek Kalinowskas: I can put it this way that if we look at openings, last year, we opened some 340 stores. We want to achieve a growth in, let's say, in the teens with respect to last year's performance, where we'll see the bulk of those openings transpiring in Q4.

[Translator]: I can put it this way that if we look at openings, last year, we opened some 340 stores. We want to achieve a growth in, let's say, in the teens with respect to last year's performance, where we'll see the bulk of those openings transpiring in Q4.

Speaker #6: Okay . That's clear . Thank you . Now , on operating costs , growth , I do believe that your operating costs have gone up quite a lot .

Elena Geranova: Okay, that's clear. Thank you. Now on operating cost growth. I do believe that your operating costs have gone up quite a lot, and we have not yet seen the bulk of the store expansion. Is it fair to assume that in the H2, and especially in the Q4, you may see even stronger pressure on your operating cost growth from your openings?

Elena Jouronova: Okay, that's clear. Thank you. Now on operating cost growth. I do believe that your operating costs have gone up quite a lot, and we have not yet seen the bulk of the store expansion. Is it fair to assume that in the H2, and especially in the Q4, you may see even stronger pressure on your operating cost growth from your openings?

Speaker #6: And we have not yet seen the bulk of the store expansion . Is it fair to assume that in the second half , and especially in the fourth quarter , you may see even stronger pressure on your operating cost growth from new openings

Alek Kalinowskas: Teraz, jeżeli chodzi o wzrost kosztów działalności operacyjnej, akurat jestem zdania, że jesteśmy świadkami dosyć istotnego przyrostu w tym zakresie. Ale jeżeli patrzymy na H2, zwłaszcza na Q4, wydaje się, że mając na uwadze liczbę nowo otwartych sklepów, możemy założyć, że ta presja na przyrost kosztów działalności operacyjnej może być dosyć znacząca.

[Translator]: Teraz, jeżeli chodzi o wzrost kosztów działalności operacyjnej, akurat jestem zdania, że jesteśmy świadkami dosyć istotnego przyrostu w tym zakresie. Ale jeżeli patrzymy na H2, zwłaszcza na Q4, wydaje się, że mając na uwadze liczbę nowo otwartych sklepów, możemy założyć, że ta presja na przyrost kosztów działalności operacyjnej może być dosyć znacząca.

Speaker #1: Accurately , as Danish jestesmy Dosage to Na Drugi zwaszcza na drugi . Czwartek . Farto e may . Lisbon . Nova . Novo .

Speaker #1: Sklepu . Mozemy . Zawadzka . Na kosztuje Moze byc dosage na

Michał Krauze: Tak, ale musimy mieć na uwadze to, że otwieranie sklepów towarzyszy nam od bardzo długiego czasu, więc tak jak w ubiegłym roku otwieraliśmy sklepy, tak 2 lata temu otwieraliśmy sklepy. Ten efekt jest cały czas widoczny także w bazie.

Speaker #3: Jak Then . Effect

Speaker #1: I would say yes , but we have to remember that we've been opening . You know stores for quite a long time on a regular basis .

Alek Kalinowskas: I would say yes, but we have to remember that we've been opening stores for quite a long time on a regular basis. We did it last year, we did it the year before and the year before. So we can say that that somehow factored in, let's say, the cost base.

[Translator]: I would say yes, but we have to remember that we've been opening stores for quite a long time on a regular basis. We did it last year, we did it the year before and the year before. So we can say that that somehow factored in, let's say, the cost base.

Speaker #1: I mean so we did it , you know , last year we did it , the year before and the year before . So we can say that that's somehow factored in , let's say the cost base .

Speaker #3: Yes

Michał Krauze: Jeśli chodzi o koszty, to głównym driverem oczywiście są koszty wynagrodzeń, które podnieśliśmy na początku roku i wraz ze wzrostem, przyrostem zatrudnienia w związku z otwarciem nowych sklepów one będą rosły.

Speaker #1: And so we can say , of course , the primary driver of these costs are employee benefits . So wages , which were raised at the beginning of the year .

Alek Kalinowskas: We can say, of course, the primary driver of these costs are employee benefits to wages which were raised at the beginning of the year. As we have additional store openings, new store adds, that means that the cost base due to, let's say, employee benefits will continue to grow.

[Translator]: We can say, of course, the primary driver of these costs are employee benefits to wages which were raised at the beginning of the year. As we have additional store openings, new store adds, that means that the cost base due to, let's say, employee benefits will continue to grow.

Speaker #1: And as we have , you know , additional store openings , new store adds , that means that the cost base due to , let's say , employee benefits will continue to grow

Speaker #6: Yes . I was actually my next question on the employee cost growth . So you have increased salaries by 340 from April . Is there currently any plan to increase average salaries further and maybe along the same lines , you could comment on the different demands or quote unquote demands we're hearing from unions about further salary increases

Elena Geranova: Yes, that was actually my next question on the employee cost growth. So you have increased salaries by 300 zł from April. Is there currently any plan to increase average salaries further? Maybe along the same lines, you could comment on the different demands or quote-unquote demands we are hearing from unions about further salary increases?

Elena Jouronova: Yes, that was actually my next question on the employee cost growth. So you have increased salaries by 300 zł from April. Is there currently any plan to increase average salaries further? Maybe along the same lines, you could comment on the different demands or quote-unquote demands we are hearing from unions about further salary increases?

Alek Kalinowskas: Właściwie to miało być moje następne pytanie, jeżeli chodzi o wzrost wynagrodzeń. Także rozumiem, że od kwietnia nastąpił tutaj wzrost w wymiarze 300 zł i chciałbym zapytać, czy są plany w zakresie dalszych podwyżek. Jeżeli może pan zechce skomentować żądanie płacowe, o których słyszymy chociażby ze strony związków zawodowych.

[Translator]: Właściwie to miało być moje następne pytanie, jeżeli chodzi o wzrost wynagrodzeń. Także rozumiem, że od kwietnia nastąpił tutaj wzrost w wymiarze 300 zł i chciałbym zapytać, czy są plany w zakresie dalszych podwyżek. Jeżeli może pan zechce skomentować żądanie płacowe, o których słyszymy chociażby ze strony związków zawodowych.

Speaker #1: And On plan I usually

Speaker #3: In Also , I I

Michał Krauze: Nie komentujemy tej kwestii aż tak szczegółowo. Od początku roku zatrudniliśmy ponad 5000 osób i tutaj cały czas mamy nowe aplikacje i ciągle zatrudniamy kolejne osoby.

Speaker #1: So we wouldn't like to say comment . So in such a detailed fashion in response to that question , I can say , however , that , you know , since the beginning of this year , we've added another .

Alek Kalinowskas: We wouldn't like to, let's say, comment in such a detailed fashion in response to that question. I can say, however, that since the beginning of this year, we've added more than 5000 new people, new hires, and we continue to receive new apps, new applications, job applications, and continue hiring people.

[Translator]: We wouldn't like to, let's say, comment in such a detailed fashion in response to that question. I can say, however, that since the beginning of this year, we've added more than 5000 new people, new hires, and we continue to receive new apps, new applications, job applications, and continue hiring people.

Speaker #1: More than 5000 new people , new hires , and we continue to receive new apps , new applications , work job applications , and continue hiring people .

Speaker #3: And I , I

Michał Krauze: Przede wszystkim wkładamy wiele zaangażowania w to, aby oferować naszym pracownikom atrakcyjne warunki pracy i wynagrodzenia. I wierzymy w to, że większość pracowników Dino docenia nasze starania.

Speaker #1: And so basically , we're highly engaged in creating an attractive working environment with attractive pay conditions . And we believe that the the vast majority of our staff members appreciate what we do for in this respect And we can see that demonstrated by their commitment on the jobs .

Alek Kalinowskas: Basically, we're highly engaged in creating an attractive working environment with attractive pay conditions. We believe that the vast majority of our staff members appreciate what we do in this respect.

[Translator]: Basically, we're highly engaged in creating an attractive working environment with attractive pay conditions. We believe that the vast majority of our staff members appreciate what we do in this respect.

Michał Krauze: I widzimy to w ich zaangażowaniu i oczywiście za to im dziękujemy.

Alek Kalinowskas: We can see that demonstrated by their commitment on the jobs. We, of course, express our gratitude to them for that.

[Translator]: We can see that demonstrated by their commitment on the jobs. We, of course, express our gratitude to them for that.

Speaker #1: And we of course , express our gratitude to them for that

Speaker #6: But on the on the average wage increases above the 300 level to anything planned .

Elena Geranova: On the average wage increases above the 300 zł, anything planned?

Elena Jouronova: On the average wage increases above the 300 zł, anything planned?

Speaker #1: Yes . You What such plans

Alek Kalinowskas: Jeszcze jeżeli chodzi o średni wzrost wynagrodzeń powyżej 300 zł, czy jest coś w planach, żeby powyżej tego pułapu?

[Translator]: Jeszcze jeżeli chodzi o średni wzrost wynagrodzeń powyżej 300 zł, czy jest coś w planach, żeby powyżej tego pułapu?

Michał Krauze: Przegląd wynagrodzeń robimy co roku i oczywiście na początku przyszłego roku będziemy do takiego przeglądu także siadali, tak jak to robimy w każdym roku.

Speaker #3: Benjamin Roku .

Speaker #1: So we do basically a review on an annual basis , rolling annual review . So the next time for the annual rolling review for , let's say wages and salaries will be .

Alek Kalinowskas: We do basically a review on an annual basis, rolling annual review. The next time for the annual rolling review for, let's say, wages and salaries will take place at the beginning of next year. Those are our plans.

[Translator]: We do basically a review on an annual basis, rolling annual review. The next time for the annual rolling review for, let's say, wages and salaries will take place at the beginning of next year. Those are our plans.

Speaker #1: Take place at the beginning of next year . So those are our plans .

Speaker #6: Okay . That's clear . And I had just a few questions on inventories on gross margins . And that's it . So there is some inventory build out towards the end of the second quarter .

Elena Geranova: Okay, that's clear. I had just a few questions on inventories, on gross margins, and that's it. There is some inventory build out towards the end of Q2. Is this mainly inventory related to your pork processing facility? So raw materials for the pork processing plant, or is this goods that have not been unsold and are at the distribution centers?

Elena Jouronova: Okay, that's clear. I had just a few questions on inventories, on gross margins, and that's it. There is some inventory build out towards the end of Q2. Is this mainly inventory related to your pork processing facility? So raw materials for the pork processing plant, or is this goods that have not been unsold and are at the distribution centers?

Speaker #6: Is this mainly inventory related to your pork processing facility ? So raw materials for for the the pork processing plant or is this good that have not been unsold in our distribution centers

Alek Kalinowskas: Jeszcze mam parę pytań. Pierwsze dotyczy zapasów. Widzimy, że zapasy wzrosły w Q2 i chciałbym zapytać, czy to jest z powodu zwiększonych zakupów surowców właśnie w zakładach mięsnych? Czy to na przykład ze względu na zakup produktów, które znajdują się w centrach dystrybucyjnych, logistycznych?

[Translator]: Jeszcze mam parę pytań. Pierwsze dotyczy zapasów. Widzimy, że zapasy wzrosły w Q2 i chciałbym zapytać, czy to jest z powodu zwiększonych zakupów surowców właśnie w zakładach mięsnych? Czy to na przykład ze względu na zakup produktów, które znajdują się w centrach dystrybucyjnych, logistycznych?

Speaker #1: As of during the Move Productive Center . Logistics

[Analyst]: Thank you. My second question: You just mentioned that the gross margin should be supportive for the profitability in the coming quarters. Is it because you are seeing some kind of lower competitive intensity, or that customers are becoming less price sensitive? Why would that be the case, since in H1 you still got a slight decline and, as I understand, your procurement benefits were basically reinvested into prices, so the effect was broadly neutral?

Michał Krauze: Nie, to nie ma związku żadnego z zakładem mięsnym. To przede wszystkim kwestia tego, że się rozwijamy. Otwieramy coraz więcej sklepów i towarujemy się pod dalszą sprzedaż w centrach logistycznych.

Speaker #1: And so, basically, we're highly engaged in creating an attractive working environment with attractive pay conditions, and we believe that, you know, the vast majority of our staff members appreciate what we do in this respect.

Speaker #3: I The central logistics .

[Company Representative] (Dino Polska): Dobra. Chciałbym jeszcze zapytać o to stwierdzenie, że marża brutto może działać jako wsparcie dla rentowności w drugiej połowie roku. Z czego to wynika? Czy to wynika z tego, że konkurencyjność jest mniej intensywna niż dotąd? Czy może konsumenci są mniej wrażliwi na ceny niż dotąd? Bo w pierwszym półroczu był lekki spadek, czyli były pewne korzyści wynikające z poprawionych warunków zakupu, ale de facto dokonaliście reinwestycji w klientów i dlatego efekt był w zasadzie neutralny. Jak należy to zrozumieć?

Speaker #1: So this doesn't have anything to do with . Let's say what you call the pork processing or the meat plant plants . Whatsoever Basically , this is a result of the build out or the expansion of the store network .

Alek Kalinowskas: This doesn't have anything to do with what you call the pork processing or the meat plants whatsoever. Basically, this is a result of the build out or the expansion of the store network. As we add new stores, we have to stock or put inventory in those stores that goes through the distribution centers.

[Translator]: This doesn't have anything to do with what you call the pork processing or the meat plants whatsoever. Basically, this is a result of the build out or the expansion of the store network. As we add new stores, we have to stock or put inventory in those stores that goes through the distribution centers.

Speaker #2: I widzimy to w ich zaangażowaniu i, oczywiście, za to im dziękujemy.

Speaker #1: And we can see that demonstrated by their commitment on the jobs, and we, of course, express our gratitude to them for that.

Speaker #1: And so as we add new stores , we have to stock or put inventory in those stores . That goes through the distribution centers

Elena Geranova: Okay, that's very clear. The final one, gross margin. A lot has been asked, but I'm wondering if it's possible to comment on the gross margin dynamics excluding the meat category.

Elena Jouronova: Okay, that's very clear. The final one, gross margin. A lot has been asked, but I'm wondering if it's possible to comment on the gross margin dynamics excluding the meat category.

Speaker #6: Okay . That's very clear . And the final one , gross margin , a lot has been asked , but I'm wondering if it's possible to comment on the gross margin dynamics excluding the the meat category

Speaker #3: But on the—on the average wage increases above the 300 złoty, anything planned?

Speaker #1: Jeszcze—jeżeli chodzi o średni wzrost wynagrodzeń powyżej 300 złotych, czy jest coś w planach? Żeby powyżej tego pułapu?

Alek Kalinowskas: Padło dużo pytań na temat marży brutto, ale chciałbym zapytać, czy może pan skomentować dynamikę marży brutto z wyłączeniem kategorii mięsnej?

[Translator]: Padło dużo pytań na temat marży brutto, ale chciałbym zapytać, czy może pan skomentować dynamikę marży brutto z wyłączeniem kategorii mięsnej?

Speaker #1: Q2 . Dynamics margin category

[Company Representative] (Dino Polska): We will be focusing on volumes—that is our number one priority. When it comes to the consumer, the consumer has always been and remains price-sensitive. The improvement in margin, we will try to achieve by improving purchasing conditions.

Speaker #2: To przegląd wynagrodzeń robimy co—co roku i oczywiście na początku przyszłego roku będziemy do takiego przeglądu także siadali, tak jak to robimy w każdym roku.

Michał Krauze: Nie komentujemy tak szczegółowego rozbicia. W różnych okresach różne kategorie mają różną sezonowość. Ten efekt jest widoczny w każdym roku, w zależności od tego, jakie kategorie rosną, a jakie spadają.

Speaker #3: Category The effect is Category

Speaker #1: So, we do basically a review on an annual basis, a rolling annual review. So, the next time for the annual rolling review for—let's say, wages and salaries—will take place at the beginning of next year.

[Company Representative] (Dino Polska): I can say once again that what we're focusing on is delivering volumes. That's our number one goal—our top goal. Second, I can say that the consumer is, and has always been, price sensitive. The effect that we want to achieve is through improving purchasing conditions.

Speaker #1: So we don't give , let's say , specific breakdown information about . Let's say the gross margin because it's highly variable depending on .

Alek Kalinowskas: We don't give specific breakdown information about the gross margin because it's highly variable depending on basically seasonality factors, what's happening within a given category. It's moving across the years. It's very dependent on those things, so we don't give individual breakdowns or structures or mixes of that, compositions of that.

[Translator]: We don't give specific breakdown information about the gross margin because it's highly variable depending on basically seasonality factors, what's happening within a given category. It's moving across the years. It's very dependent on those things, so we don't give individual breakdowns or structures or mixes of that, compositions of that.

Speaker #1: Those are our plans.

Speaker #3: Okay, that's clear. I just have a few questions on inventories and gross margins, and that's it. So, there is some inventory build-out towards the end of the second quarter.

Speaker #1: Basically seasonality factors . What's happening within a given category . So it's moving , you know , across the year . So it's very dependent on those things .

[Company Representative] (Dino Polska): W drugim półroczu będziemy się mierzyć z niższą bazą, jeśli chodzi o marżę brutto.

Speaker #3: Is this mainly inventory-related to your pork processing facility—so, raw materials for the pork processing plant—or is this goods that have not been sold and are at the distribution centers?

Speaker #1: So we don't give individual breakdowns or you know , structures or mixes of that compositions of that .

[Company Representative] (Dino Polska): What we're going to be grappling with, of course, is a smaller base if we look at the gross margin.

Speaker #6: No , but it's not about the structure . It's more about the year on year dynamics of gross margin . Same season versus same season last year .

Elena Geranova: No, but it's not about the structure. It's more about the year-on-year dynamics of gross margin, same season versus same season last year. You have reported a certain average number, right? Year-on-year dynamic. And what would it have been excluding the meat category, at least qualitatively? Is it down, up versus the group average?

Elena Jouronova: No, but it's not about the structure. It's more about the year-on-year dynamics of gross margin, same season versus same season last year. You have reported a certain average number, right? Year-on-year dynamic. And what would it have been excluding the meat category, at least qualitatively? Is it down, up versus the group average?

[Analyst]: Okay, thanks. One last question, if I may. You said that you are not currently seeing any turning point from the deflation that was in Q2 and which you are experiencing at the beginning of Q3. The question is, when will you see that the cost from—

Speaker #6: You have reported a certain average number , right ? So year on year dynamic . And what would it have been excluding the meat category , at least qualitatively , is it , you know , down , up versus the group average

Speaker #1: Jeszcze mam parę pytań. Pierwsze dotyczy zapasów. Widzimy, że zapasy wzrosły w drugim kwartale i chciałbym zapytać, czy to jest z powodu zwiększonych zakupów surowców w zakładach mięsnych, czy na przykład ze względu na zakup produktów, które znajdują się — załóżmy — w centrach dystrybucyjnych, logistycznych?

Alek Kalinowskas: Ja myślę oczywiście o dynamice w stosunku rocznym. Nie mówię tutaj o sezonowości, bo w tej chwili opublikowane zostały wyniki za pierwsze półrocze. Czyli rozmawiamy o tym samym sezonie, o tym samym okresie roku i myślę o komentarzu dotyczącym średniej dynamiki z wyłączeniem tej kategorii mięsnej. Chociażby jakościowo, że dynamika jest wyższa, niższa, taka sama.

[Translator]: Ja myślę oczywiście o dynamice w stosunku rocznym. Nie mówię tutaj o sezonowości, bo w tej chwili opublikowane zostały wyniki za pierwsze półrocze. Czyli rozmawiamy o tym samym sezonie, o tym samym okresie roku i myślę o komentarzu dotyczącym średniej dynamiki z wyłączeniem tej kategorii mięsnej. Chociażby jakościowo, że dynamika jest wyższa, niższa, taka sama.

Speaker #1: Essentially But Is a Seasonal tym samym okresie Roku . I or Is the category Dynamic is niche . Taka So I understood your question , but as I said at this point in time , we're not prepared to actually such a detailed commentary .

Speaker #2: Nie, to nie ma związku z żadnym z zakładów mięsnych. To przede wszystkim kwestia tego, że się rozwijamy. Otwieramy coraz więcej sklepów i towarujemy się pod dalszą sprzedaż w centrach logistycznych.

Michał Krauze: Tak jak wspomniałem, takich szczegółowych danych tutaj w tej chwili nie jesteśmy w stanie skomentować.

Speaker #1: So this doesn't have anything to do with, let's say, what you call the pork processing or the meat plant—plants whatsoever. Basically, this is a result of the build-out or the expansion of the store network, and so as we add new stores, we have to stock or put inventory in those stores that goes through the distribution centers.

Alek Kalinowskas: I understood your question, but as I said, at this point in time, we are not prepared to give such a detailed commentary.

[Translator]: I understood your question, but as I said, at this point in time, we are not prepared to give such a detailed commentary.

Speaker #6: Okay . Thank you

Elena Geranova: Okay, thank you.

Elena Jouronova: Okay, thank you.

Alek Kalinowskas: Dziękuję.

[Translator]: Dziękuję.

Speaker #4: Our next question comes from Michael Majewski from Pure Alpha Investments . Michael , please unmute your line and ask your question

Operator: Our next question comes from Michael Majewski from Pure Alpha Investments. Michael, please unmute your line and ask your question.

Operator: Our next question comes from Michał Majerski from Pure Alpha Investments. Michael, please unmute your line and ask your question.

Speaker #3: Okay, that's very clear. And the final one: gross margin. A lot has been asked, but I'm wondering if it's possible to comment on the gross margin dynamics excluding the meat category.

Speaker #7: Well , can you hear me ?

Michael Majewski: Hello, can you hear me?

Michał Majerski: Hello, can you hear me?

Speaker #1: Yes

Alek Kalinowskas: Yes.

[Translator]: Yes.

Michael Majewski: Dzień dobry, ja mam takie pytanie jeszcze, też follow-up dotyczące kosztu wynagrodzeń. Bo jak ja sobie obserwuję dynamikę tej kategorii kosztów, to mam tutaj ostatnich 6 kwartałów i w każdym z nich płace rosły szybciej niż powierzchnia. W związku z tym chciałem zapytać, czy to jest tylko wzrost średniego wynagrodzenia, czy może zatrudniacie więcej osób średnio na sklep albo rośnie wam zatrudnienie w centrach dystrybucyjnych w Agro-Rydzyna? Czy to jest jeden tylko czynnik, czy jeszcze jakieś inne? Dziękuję.

Michał Majerski: Dzień dobry, ja mam takie pytanie jeszcze, też follow-up dotyczące kosztu wynagrodzeń. Bo jak ja sobie obserwuję dynamikę tej kategorii kosztów, to mam tutaj ostatnich 6 kwartałów i w każdym z nich płace rosły szybciej niż powierzchnia. W związku z tym chciałem zapytać, czy to jest tylko wzrost średniego wynagrodzenia, czy może zatrudniacie więcej osób średnio na sklep albo rośnie wam zatrudnienie w centrach dystrybucyjnych w Agro-Rydzyna? Czy to jest jeden tylko czynnik, czy jeszcze jakieś inne? Dziękuję.

Speaker #7: Follow up To observe dynamic category Na sklep Albo . Central distribution

Speaker #1: Mm-hmm. To znaczy, padło dużo pytań na temat marży brutto, ale chciałbym zapytać, czy może Pan skomentować dynamikę marży brutto z wyłączeniem kategorii mięs-mięsnej.

Speaker #2: Czyli komentujemy tak szczegółowego rozbicia w różnych okresach, różne kategorie, yyy, mają różną sezonowość, tak że to ten efekt jest widoczny w róż—w każdym—w każdym roku, yyy, w zależności od tego, jakie kategorie rosną, a jakie spadają.

Speaker #1: So I have a follow up question concerning the , let's say the cost of salaries in terms of I'm looking at the growth rate and I've looked at the last six quarters , and I see that the pay is growing faster than .

Alek Kalinowskas: I have a follow-up question concerning the cost of salaries in terms of, I'm looking at the growth rate, and I've looked at the last 6 quarters, and I see that the pay is growing faster than when tracked against, let's say, the selling area. The question is, are you actually hiring more people per store? Do you have more people in distribution centers in Agro-Rydzyna? So what actually is happening here?

[Translator]: I have a follow-up question concerning the cost of salaries in terms of, I'm looking at the growth rate, and I've looked at the last 6 quarters, and I see that the pay is growing faster than when tracked against, let's say, the selling area. The question is, are you actually hiring more people per store? Do you have more people in distribution centers in Agro-Rydzyna? So what actually is happening here?

Speaker #1: So, we don't give, let's say, specific breakdown information about, let's say, the gross margin, because it's highly variable depending on, basically, seasonality, factors, what's happening within a given category.

Speaker #1: You know , when tracked against , let's say , the selling area . And so the question is , are you actually hiring more people per store ?

Speaker #1: So it's moving, you know, across the year. So it's very dependent on those things, so we don't give, you know, individual breakdowns or, you know, structures or mixes of the compositions of that.

Speaker #1: Do you have more people than distribution centers ? And are . So what actually is happening here

Speaker #3: No, but it's not about the structure. It's more about the year-on-year dynamics of the gross margin—same season versus same season last year. You have reported a certain average number, right?

Michał Krauze: Przede wszystkim to jest coroczny wzrost przeciętnego wynagrodzenia.

Speaker #3: Is

Speaker #1: Above all , what we see is the annual average increase in wages or salaries .

Alek Kalinowskas: Above all, what we see is the annual average increase in wages or salaries.

[Translator]: Above all, what we see is the annual average increase in wages or salaries.

Speaker #3: So, year-on-year dynamic—and what would it have been excluding the meat category, at least qualitatively? Is it, you know, down, up, versus the group average?

Speaker #3: In effect , is center logistics Is Seasonal .

Michał Krauze: I mamy oczywiście jakieś efekty sezonowe, jeśli chodzi o otwieranie nowych centrów logistycznych czy zakładów rozbioru i zwiększania, ale to są efekty sezonowe.

Speaker #1: To znaczy, ja myślę oczywiście o dynamice w stosunku rocznym, prawda? Nie mówię tutaj o sezonowości, bo w tej chwili opublikowane zostały wyniki za pierwsze półrocze, czyli rozmawiamy o tym samym sezonie, o tym samym okresie roku, i myślę o, nie wiem, takim komentarzu dotyczącym średniej dynamiki z wyłączeniem, załóżmy, tej kategorii mięsnej, prawda?

Speaker #1: So we do have some seasonal effects . You know , as a result of opening , let's say some distribution centers at a given point in the year , or let's say De-boning facilities being opened .

Alek Kalinowskas: We do have some seasonal effects as a result of opening, let's say, some distribution centers at a given point in the year, or let's say, deboning facilities being opened. But those are seasonal effects.

[Translator]: We do have some seasonal effects as a result of opening, let's say, some distribution centers at a given point in the year, or let's say, deboning facilities being opened. But those are seasonal effects.

Speaker #1: But those are seasonal effects

Speaker #1: Chociażby jakościowo, nie? Że dynamika jest wyższa, niższa, taka sama.

Speaker #4: Thank you . Michael . Our next question comes from Michael Pizza from UBS . Michael , please unmute your line and ask a question

Operator: Thank you, Michael. Our next question comes from Michal Pytlinski from UBS. Michal, please unmute your line and ask your question.

Operator: Thank you, Michał. Our next question comes from Michał Potyra from UBS. Michal, please unmute your line and ask your question.

Speaker #2: Mam pytanie, ale tak jak wspomniałem, takich szczegółowych danych tutaj w tej chwili nie jesteśmy w stanie skomentować.

Speaker #8: Hi , can you hear me please ?

Michał Pytliński: Hi, can you hear me, please?

Michał Potyra: Hi, can you hear me, please?

Speaker #1: Yes , we can hear you , Michael .

Alek Kalinowskas: Yes, we can hear you, Michal.

[Translator]: Yes, we can hear you, Michał.

Speaker #1: So I understood your question, but as I said, at this point in time, we're not prepared to, let's say, give such a detailed commentary.

Speaker #8: Great . Thank you . I have two questions . Please . The first one is really what is driving the the strong increase in depreciation and amortization .

Michał Pytliński: Great, thank you. I have two questions, please. The first one is really what is driving the strong increase in depreciation and amortization, should we expect this growth to continue? The second question is, if you could please comment on the regulatory investigation into the truck drivers' remuneration.

Michał Potyra: Great, thank you. I have two questions, please. The first one is really what is driving the strong increase in depreciation and amortization, should we expect this growth to continue? The second question is, if you could please comment on the regulatory investigation into the truck drivers' remuneration.

Speaker #3: Okay, thank you.

Speaker #1: Mm-hmm, dziękuję. Our next question comes from Michael Majerski from Pure Alpha Investments. Michael, please unmute your line and ask your question.

Speaker #8: And should we expect this growth to continue ? And the second question is , if you could please comment on on the regulatory investigation into the truck drivers remuneration and what could be the potential implications for your business ?

Speaker #4: Hello, can you hear me?

Speaker #1: Yes.

Speaker #4: Dzień dobry, ja mam takie pytanie, jeszcze też follow-up dotyczący tego kosztu wynagrodzeń, bo jak ja sobie obserwuję dynamikę tej kategorii kosztów, no to powiedzmy, mam tutaj ostatnich 6 kwartałów i w każdym z nich płace rosły szybciej niż powierzchnia.

Alek Kalinowskas: What could be the potential implications for your business? I am thinking both in terms of potential penalties, but also future costs, inflation in all of that category. Thank you. Dobrze, ja mam tutaj dwa pytania. Pierwsze: co takiego napędza wzrost amortyzacji i umorzeń i czy to będzie kontynuowane? Pytanie drugie: proszę o komentarz na temat postępowania, które dotyczy kierowców samochodów ciężarowych i wysokości ich wynagrodzeń. W szczególności interesuje mnie wpływ na państwa działalność w zakresie chociażby kar, grzywien albo ewentualnie kosztów w przyszłości. Jaka inflacja może z tego wyniknąć?

Michał Potyra: What could be the potential implications for your business? I am thinking both in terms of potential penalties, but also future costs, inflation in all of that category. Thank you.

Speaker #8: I'm thinking both in terms of potential penalties , but also future costs Inflation of that category . Thank you

[Translator]: Dobrze, ja mam tutaj dwa pytania. Pierwsze: co takiego napędza wzrost amortyzacji i umorzeń i czy to będzie kontynuowane? Pytanie drugie: proszę o komentarz na temat postępowania, które dotyczy kierowców samochodów ciężarowych i wysokości ich wynagrodzeń. W szczególności interesuje mnie wpływ na państwa działalność w zakresie chociażby kar, grzywien albo ewentualnie kosztów w przyszłości. Jaka inflacja może z tego wyniknąć?

Speaker #4: W związku z tym chciałem zapytać, czy to jest tylko wzrost średniego wynagrodzenia, czy może, nie wiem, zatrudniacie więcej osób średnio na sklep, albo rośnie wam zatrudnienie w centrach dystrybucyjnych, w Agro-Rydzynie?

Speaker #1: Penza Oblast amortization . Amortization . Thank you . Have to each to continue Na . Temat . Tego I , I Na Car .

Speaker #4: Czy to jest jakby jeden tylko czynnik, czy—czy jeszcze jakieś inne? Dziękuję.

Speaker #1: So I have a follow-up question concerning, let's say, the cost of salaries. In terms of—I'm looking at the growth rate, and I've looked at the last six quarters, and I see that pay is growing faster than, you know, when tracked against, let's say, the selling area. And so the question is, are you actually hiring more people per store? Do you have more people in the distribution centers and Agro-Rydzyna? So, what actually is happening here?

Speaker #1: Giving . Albo . Eventually . Cost of inflation . Tego

Michał Krauze: Jeśli chodzi o amortyzację, to robiliśmy przegląd stawek amortyzacyjnych. Ten efekt jest opisany w sprawozdaniu rocznym i w tym roku będziemy widzieli zwiększoną amortyzację związaną z tym przeglądem.

Speaker #3: Amortization Amortization is I Amortization

Speaker #2: No, przede wszystkim to jest coroczny wzrost przeciętnego wynagrodzenia.

Speaker #1: Above all, what we see is the annual average increase in wages or salaries.

Speaker #2: I mamy oczywiście jakieś efekty sezonowe, jeśli chodzi o otwieranie nowych, yyy, centr logistycznych czy—czy zakładów, yyy, rozbioru i zwiększania, ale to te same efekty sezonowe.

Speaker #1: So in terms of , lets say depreciation . And amortization . So accumulated depreciation . Basically , we've done a review of the rates .

Alek Kalinowskas: In terms of, let's say, depreciation and amortization. So accumulated depreciation, basically we've done a review of the rates and this was described in the annual financial statements. This is why we've seen an increase and we'll have another review done for the full year financial statements.

[Translator]: In terms of, let's say, depreciation and amortization. So accumulated depreciation, basically we've done a review of the rates and this was described in the annual financial statements. This is why we've seen an increase and we'll have another review done for the full year financial statements.

Speaker #1: So, we do have some seasonal effects as a result of opening, let's say, some distribution centers at a given point in the year, or, let's say, deboning facilities being opened. But those are seasonal effects.

Speaker #1: And this was described in the annual financial statements . And so this is why we've seen an increase . In . We'll have another review done for the full year .

Speaker #1: Financial statements

Michał Krauze: Jeśli chodzi o postępowanie UOKiK-u odnośnie kierowców, to przykro mi bardzo, ale nie jestem w stanie powiedzieć więcej niż to, co napisaliśmy w sprawozdaniu. Nie wiemy dokładnie, jak się rozwinie to postępowanie, ale współpracujemy cały czas z urzędem, odpowiadamy na wszystkie pytania i jesteśmy otwarci na dyskusję.

Speaker #3: As I Jackie As I Na na discuss

Speaker #1: Thank you, Michael. Our next question comes from Michael Pujsa from UBS. Michael, please unmute your line and ask your question.

Speaker #5: Hi, can you hear me, please?

Speaker #1: Yes, we can hear you, Michael.

Speaker #5: Mm-hmm. Great, thank you. I have two questions, please. The first one is, really, what is driving the strong increase in depreciation and amortization, and should we expect this growth to continue?

Speaker #1: So in terms of the regulatory investigation or proceedings run by the Office of Consumer and Protection . Protection , there's . Unfortunately , there's nothing more I can say at this time than what we've actually written in the interim report is published .

Alek Kalinowskas: In terms of the regulatory investigation or proceedings run by the Office of Competition and Consumer Protection, UOKiK, unfortunately there's nothing more I can say at this time than what we've actually written in the interim report as published. We don't know what's going to specifically transpire. We're cooperating with the authorities here. We're responding to the questions and we're lending an ear, of course, to what they're interested in. Dziękuję.

[Translator]: In terms of the regulatory investigation or proceedings run by the Office of Competition and Consumer Protection, UOKiK, unfortunately there's nothing more I can say at this time than what we've actually written in the interim report as published. We don't know what's going to specifically transpire. We're cooperating with the authorities here. We're responding to the questions and we're lending an ear, of course, to what they're interested in. Dziękuję.

Speaker #5: And the second question is if you could please comment on the regulatory investigation into the truck driver's remuneration, and what could be the potential implications for your business.

Speaker #1: We don't know . But what's going to specifically transpire . We're cooperating with the authorities here . We're responding to the questions . And , you know , we're you know , we're lending an ear .

Speaker #5: I'm thinking both in terms of potential penalties, but also future costs and inflation in all of those categories. Thank you.

Speaker #1: Of course , to what they're interested in

Speaker #1: dobrze, ja mam tutaj dwa pytanie, yyy, pierwszy, yyy, co takiego napędza ten wzrost amortyzacji, amortyzacji, tak? I umorzeń, prawdę? I czy to będzie kontynuowane, yyy, punkt drugi, czy pytanie drugie, czy proszę o komentarz, yyy, na temat tego postępowania, yyy, które dotyczy, yyy, kierowców samochodów ciężarowych i wysokości ich wynagrodzeń, i w szczególności interesują mnie wpływ na państwa działalność w zakresie chociażby kar, grzewień, albo ewentualnie kosztów w przyszłości, jaka inflacja może z tego wyniknąć.

Speaker #8: Thank you .

Speaker #1: Thank you

Speaker #4: Next question comes from Anastasia Tikhonova from JP Morgan . Nastasia , please unmute your line and ask your question .

Operator: The next question comes from Anastasiia Tikhomirova from JP Morgan. Anastasiia, please unmute your line and ask your question.

Operator: The next question comes from Anastasia Tikhonova from JPMorgan. Anastasiia, please unmute your line and ask your question.

Speaker #9: Yes . Hello . Thank you for the opportunity to ask a questions . I actually had one with regards to whether whether you see any effect of warm weather on your results and the third quarter so far as we remember that July last year was a very cold month .

Anastasiia Tikhomirova: Yes. Hello. Thank you for the opportunity to ask questions. I actually had one with regards to whether you see any effect of warm weather on your results in Q3 so far, as we remember that July last year was a very cold month. Thank you.

Anastasia Tikhonova: Yes. Hello. Thank you for the opportunity to ask questions. I actually had one with regards to whether you see any effect of warm weather on your results in Q3 so far, as we remember that July last year was a very cold month. Thank you.

Speaker #9: Thank you

Alek Kalinowskas: Ja mam jedno pytanie dotyczące wpływu pogody na wyniki państwa. Mam na myśli oczywiście upały, które nawiedzają kraj w Q3 bieżącego roku. Jak pamiętamy, w lipcu ubiegłego roku mieliśmy bardzo zimny lipiec. Także jeżeli pan zechce skomentować wpływ pogody na aktualne wyniki spółki.

[Translator]: Ja mam jedno pytanie dotyczące wpływu pogody na wyniki państwa. Mam na myśli oczywiście upały, które nawiedzają kraj w Q3 bieżącego roku. Jak pamiętamy, w lipcu ubiegłego roku mieliśmy bardzo zimny lipiec. Także jeżeli pan zechce skomentować wpływ pogody na aktualne wyniki spółki.

Speaker #1: Pagode da Vinci , for For Cry A Roku . Your lips . Roku . Mirim . Bardzo . Zimny . Lipids Of . Pogodi .

Speaker #2: Jeśli chodzi o amortyzację, to, yyy, robiliśmy przegląd stawek amortyzacyjnych, yyy, ten efekt jest opisany w sprawozdaniu, yyy, rocznym, i, yyy, w tym roku będziemy widzieli, yyy, zwiększoną, yyy, amortyzację związaną z, z tym przeglądem.

Speaker #1: Na . Aktualni . Wyniki . Spooky

Speaker #1: So in terms of, let's say, depreciation, and a c and amortyzation, so accumulated depreciation, basically we've done a review of the rates, and this was described in the annual, financial statements, and so this is why we've seen an increase in, well, have, you know, another review done, you know, at the for the full-year financial statements.

Michał Krauze: Widzimy kategorie, które rosną, jak na przykład lody, ale na przykład w przypadku napojów w tym roku wszedł system kaucyjny, który też ma wpływ na wolumeny sprzedaży.

Speaker #3: Przypadku . Na Na . Volume

Speaker #1: So of course , we do see categories that have grown as a result . I can give you the example of , let's say ice cream , but we also have to remember that the deposit system went into place for bottles .

Alek Kalinowskas: Of course, we do see categories that have grown as a result. I can give the example of, let's say, ice cream, but we also have to remember that the deposit system went into place for bottles and cans, so this has had an impact on the volume of sales.

[Translator]: Of course, we do see categories that have grown as a result. I can give the example of, let's say, ice cream, but we also have to remember that the deposit system went into place for bottles and cans, so this has had an impact on the volume of sales.

Speaker #2: Jeśli chodzi o postępowanie, yyy, z, yyy, UOKiK-u odnośnie kierowców, no to przykro mi bardzo, ale nie jestem w stanie powiedzieć więcej niż to, co napisaliśmy w sprawozdaniu, yyy, i nie, nie wiemy dokładnie jak się rozwinie, yyy, to, yyy, postępowanie, ale współpracujemy cały czas, yyy, z urzędem, odpowiadamy na wszystkie pytania i jesteśmy tutaj, yyy, otwarci na, na dyskusję.

Speaker #1: And cans . And so this has had an impact on the volume of sales

Speaker #4: Thank you . Anastasia . There are no more raised hands at this time . So this concludes the Q and A . I'll now hand back to management for closing remarks

Operator: Thank you, Anastasiia. There are no more raised hands at this time, so this concludes the Q&A. I will now hand back to management for closing remarks.

Operator: Thank you, Anastasia. There are no more raised hands at this time, so this concludes the Q&A. I will now hand back to management for closing remarks.

Speaker #1: So in terms of the regulatory investigation or proceedings run by the Office of Consumer and Competition Protection, UOKiK, unfortunately there's nothing more I can say at this time than what we've actually written in the internal report that's published.

Speaker #3: Thank you for your participating in this conference call . In any new questions come up , please contact Grzegorz Uraziński , our head of Investor Relations .

Michał Krauze: Thank you for your participating in this conference call. If any new questions come up, please contact Grzegorz Uraziński, our Head of Investor Relations. Goodbye.

Speaker #1: we don't know, but, what's going to specifically transpire, we're cooperating, with the authorities here, we're responding to the questions, and, you know, we're, you know, we're lending in the ear, of course, to, what they're interested in.

Speaker #5: Thank you.

Speaker #1: Mm-hmm, dziękuję. Our next question comes from Anastasia Kikanova from JPMorgan. Anastasia, please unmute your line and ask your question.

Speaker #6: Yes, hello, thank you for the opportunity to ask questions. I actually had one with regards to whether you see any effect of warm weather on your results in the third quarter so far, as we remember that July last year was a very cold month.

Speaker #6: Thank you.

Speaker #1: To znaczy, ja mam jedno pytanie, yyy, dotyczące wpływu pogody na wyniki państwa. Yyy, mam na myśli oczywiście upały, yyy, które nawi nawiedzają, yyy, kraj, naprawdę tutaj w trzecim kwartale bieżącego roku, jak pamiętamy, w lipcu ubiegłego roku mieliśmy bardzo zimne lipiec, tak że jeżeli pan zechce tutaj skomentować wpływ pogody na aktualne wyniki spółki.

Speaker #2: No, to znaczy, no, widzimy kategorie, które, yyy, rosną, jak na przykład, yyy, yyy, lody, ale na przykład w przypadku, no, napojów, no, w tym roku wszedł system kaucyjny, który, no, też ma wpływ na wolumen sprzedaży.

Speaker #1: So of course, we do see categories that have grown as a result. I can give the example of, let's say, ice cream. But we also have to remember that the deposit system went into place for bottles and cans, and so this has had an impact on the volume of sales.

Speaker #1: Thank you, Anastasia. There are no more raised hands at this time, so this concludes the Q&A. I'll now hand back to management for closing remarks.

Speaker #4: Thank you for your participating in this conference, Carl. In any new questions come up, please contact Grzegorz Uraziński, our head of investor relations. Goodbye.

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