Pathward Financial, Inc. Price & Performance (CASH)

Good morning to everyone and thank you for joining today's call. I'd like to welcome you to our twenty twenty four Q4 enhanced full year results presentation that will be led by our CEO, Jose Antonio Asanta our CFO, Javier Zaretta and myself. The presentation will take around thirty minutes in which we'll share the many events that have taken place in the period regarding our business and how the influenced our performance. We'll comment on our key financials, our geographical behavior and our transformation effort. As well as our ESG initiatives and finally, we'll share some key conclusions. After we'll open a Q and A session. We not get to respond to everything today, we'll get back on any open topics on an individual basis. I want to again thank you all for your attendance and remind you that this presentation has been prerecorded and is available via webcast on our corporate webpage that you can find at www.prosubucash.com. Now before passing on to Jose Antonio, I'd like to share some news regarding cash that have lately appeared in the media. They cover interesting topics such as the use of cash in The United Kingdom, acceptance of cash as a principal payment method in the euro area, the key attributes of cash that make it preferred payment for many Spaniards or the reasons why Sweden is protecting cash.

There are examples of how cash is very relevant in different countries for diverse reasons, being its resiliency, securiteness or inclusiveness as a payment method to enable commerce. In the first piece of news, can read from the Britis Retail Consortium, For the second straight year, cash usage has increased in The UK. In The UK, M and A2 market in terms of payment methods, it's of particular relevance to learn that cash is gaining back to rain thanks to some unique attributes such as its ability to allow people to buy their themselves, or its wide acceptance in stores across the country. This is a trend that we'll most likely see in other similar mature markets. And going now to the second news coming from the European Central Bank according to its latest study, cash has been the most used payment method in the entire euro area in 2024.

This reflects consumers' preference for cash payments in the world's second biggest economy and its relevance for secure commerce. This is the case because consumers seeing cash characteristics that are positive for them and fundamentally cannot be easily replicable. Next, in a piece of news by Agency Europe Press, we learned that according to a study carried out by NeoBank Nickel, 75% of the Spaniards declare to choose cash on a weekly basis for the payments because of its unique attributes of privacy protection against failures of electronic payment systems and security against hybrid It is of relevance to know that this study has been conducted by a diesel bank, and that it alludes to the safety of cash payments when compared to diesel ones that continue to suffer frequent and severe security leaks and frauds. Many of them often silenced that amount to multiple frauds in terms of occurrence and in massive quantities of money being lost. Lastly, we can read from Expansion that the Swedish government a country that for many years has had an active anti cash policy, continues to seek measures that guarantee the use of cash payments for acquiring essential products. The two main reasons behind these protective measures are to avoid the exclusion of around 10% of its population And very importantly, we are citing the priorities to prevent the Swedish economy from falling down in the event of successful cyber attacks on its payment systems.

These news are only a sample of how relevant cash is for a healthy society and how strong is the preference of consumers to continue to use it. It is our responsibility to assure that the cash cycle is efficient and that it's available [indiscernible] After this news update, I will share today's agenda. Firstly, Jose Antonio will start reviewing the previous highlights. Second, Javier will share with us the key financials for the quarter, after which Jose Antonio will reflect on our transformation initiatives. Then I'll share key developments by region. And finally, Jose Antonio will update us on the latest ESG developments before sharing his conclusions and open the Q and A session. This being said, Jose Antonio de Forest, yours. Thank you very much, Miguel, for the intro, and good morning to everyone listening to us [indiscernible] and as well thank you for attending. 2024 has definitely been a very important year for us that if I had to summarize, I would stress we have achieved a new milestone in sales well north of $2,000,000,000 realigning the 5% growth path of the last six years. We attained an impressive well above 40% growth in our earnings per share.

Bringing it to $0.06 pressure and we have again delivered a restaurant on cash flow in the region of €150,000,000 that shows in our leverage ratio. If we look at sales, our top line has reached €2,900,000,000 which implies a 12.3% increase over last year. It is particularly important to note that we have delivered double digit growth in Eurotherms, both in the fourth quarter standalone and in the full year. These figures reflect the trust our customers have in our services how healthy our industry is both of which make me very proud of what has been achieved and very positive as we look into the future. As well noteworthy is the MAX laser of our currency impact we have had when compared to previous years. When we look at our profitability margin, we observe that our EBITDA has reached 12% of sales, which implies a 20 basis points improvement over 2023 in relative terms. If we look at our EBITDA in absolute figures, has reached €251,000,000 which is a 13.9% increase over the prior year. I would like to highlight that despite the investment in new ForEx openings, obsidian restructuring we experienced at the beginning of the year and strike we suffered in the last quarter in Germany, we've been able to improve our profitability by all measures demonstrating the resilience of our business model.

Important to underline that Asia Pacific has been profitable on a year level for the entire 2024 as the starting of a new phase. And last but not least, I want to remind the improvement above mentioned by well above 40% year on year. When you look at transformation, as you know, a key pillar of our strategy we have reached 32.2% of total sales. Close to the one third level. Transformation products have grown by close to 19% and the share of total sales has improved by 180 basis points. Again, this only underlines how important our transformation strategy is and how our reality has become for today's performance and most importantly, a solid basis for the future. Moving into free cash flow, I am very glad to share that we have generated €148,000,000 in the year with a particularly strong fourth quarter when we reached €57,000,000 On a full year basis, this implies an improvement of 24% versus 2023, and it has enabled us to reduce our net debt by €12,000,000 quarter on quarter. Considering that in this last quarter, we have distributed €30,000,000 in dividends. With this all, we are happy to share that our total net debt to EBITDA ratio has gone down to 2.3 times well within our comfort levels, although our firm commitment to keep lowering it down.

As well, I'd like to share that our commitment to shareholder attribution Sodom, the approval of our new share buyback plan of €8,000,000 for this coming year's finals. To this, we should add the proposal to increase our regular dividend to 6 EUR63 million. If we consider both the share buyback and increased dividend total shareholder compensation will increase in 2025 by over 18% versus prior year. Another important element to share is that we have extended the backup €300,000,000 revolving credit facility which is unused and enable us to have a long term safe position on our debt structure. And lastly, we are proud to share that our ESG ratings have improved in the year, showing that our commitment to be a more sustainable and responsible company is recognized by independent third parties for which we will later provide further detail. With this, I would like to turn over to Javier Sohre, can share with us our key financials. Thank you, Jose Antonio. Turning to our profitable loss account our sales have reached €90,002,000 which as said is an all time high. If we look at how that growth has taken place, Overall improvement in euro terms has been of 12.3%, of which organic growth shows a very healthy raise by 18%.

Inorganic growth accounts for 0.5% of total sales, and we have a negative foreign exchange impact of 6.2% this being much milder impact than in previous years. Our EBITDA totals €383,000,000 an improvement of 17.5% over the one we achieved in 2023 and in terms of sales implies an eighteen point three percent eighty basis points better than last year. This takes us to an EBITDA figure €251,000,000 which is a 13.9% improvement over last year or 31 additional millions. We have as well improved relative performance by 20 basis points in the year. These all taking into account the heat we've taken on the Australian restructuring the investment in growing the ForEx business or the German strikes suffered late in the year. We will see as we go down the P and L that the relative performance in each line has been improving as a result of both efficiency and other management initiatives. Our EBIT margin reached €226,000,000 a 16.4% improvement over last year and represents now 10.8% of sales. With this, we reached an earning before taxes of €166,000,000 in 2024, which implies a very substantial improvement of 40.7% or €48,000,000 increase. In relative terms, our earnings before taxes over sales reached seven point nine percent one hundred and sixty basis points better than last year.

Our tax rate in percentile terms has decreased to 45% from last year, resulting in a tax cost of €75,000,000 With that, our net profit reaches €91,000,000 that is a 44.9% increase on 2023. With the above financials, our earnings per share reached €0.06 of euro $4.13 we achieved in 2023. This figure clearly shows how the result of our management positively impacts the value generated for Turning now to the next page, we can review our cash flow and net debt position. Regarding cash flow, we start with an EBITDA of €383,000,000 from which we deduct €35,000,000 in provisions and others, Income tax cash outflow. Adds to €64,000,000 while investment in fixed assets totals a cash outflow of €101,000,000 showing a total commitment to CapEx expenditure discipline. The investment in working capital represents €35,000,000 which shows the various strong management focus on controlling our receivables and payables despite having to finance the mentioned 18% organic growth. With this, our free cash flow for the year totals €148,000,000 a €28,000,000 improvement versus 2023 measures as EBITDA minus CapEx over EBITDA reaches 74%. Is 600 basis points better than the one obtained just a year ago. Interest payments totaled €18,000,000 and M and A outflows related to past year's acquisitions €36,000,000 Dividend and treasury stock account to €59,000,000 20% increase over 2023 and the others line accounts for a €35,000,000 outflow.

This all results in a total free cash flow €1,000,000 positive versus last year's negative €30,000,000 Our net financial position at the beginning of the period started at €624,000,000 and has had a positive €1,000,000 impact on total free cash flow, plus a negative foreign exchange rate effect of €20,000,000 which which implies a €64,000,000 improvement in that line versus 2023. This all results in a net financial position for the end of period €643,000,000 to which we add €124,000,000 of IFRS 16 debt EUR 125,000,000 in deferred payments, €6,000,000 positive of treasury stock achieving a total net debt of €886,000,000 which is an improvement of €12,000,000 We versus where we closed only one quarter ago. This is of a special relevance if we take into account an in the fourth quarter, we've paid €30,000,000 in dividends. The resulting leverage ratio of 2.3 times as we have said before, is well within our comfort levels and implies a significant improvement of 0.3 times versus the ratio we achieved in December 2023.

This page shows clearly our ability to generate a sustainable cash flow and a subsequent commitment to disciplined debt management which will continue into the future. With this, I would like to hand over to Jose Antonio so he can share with us on the transformation of our company.

Thank you, Javier. Regarding transformation, I am proud to share that our transformation products accounts for almost one third of total sales. In 2024, we sold €673,000,000 of transformation products and 2019% increase over 2023 or 107,000,000 additional sales in absolute terms. In our account, to over 32% of total sales increasing their penetration by 180 basis points. In only one year and despite the fact that our core business has performed strongly. Transformation products both in LatAm and Europe account for almost one third of total sales, and growth on alike like basis is very strong in Asia Pacific.

These figures once again demonstrate that our customers rely strongly on our transformation solutions and is the best indicator that our company is very well positioned today and Nova better into the future. All our solutions have performed well in total twenty twenty four.

Especially both cash today and ForEx. I want to as well underline the performance of Corvan that has set the basis for what we are sure will be a very promising 2025 and years to come. With this, I would like to hand over to Miguel, so he can explain the key highlights of our performance by region. Thank you, Jose Antonio. I'll start by sharing the figures for our main region Latin America, accounts for 62% of total revenue. In 2024, our total sales in the region added to $1,294,000,000 euros which is a 15% increase over 2023. This has been propelled by a very strong 25.3% organic growth selling the strength of our business here and has netted off a negative impact of 10.3% due to foreign exchange. We should observe that the foreign exchange effect has been reducing as we have advanced in the year. In terms of transformation, I'm proud to share that sales coming from these products have climbed by 21% to €428,000,000 in the year, now make up to 33.1% of total sales. The main drivers behind this behavior have again been cash pay and core ban, but all showing that they have all support from our customers who only continue to help their growth.

When we look at profitability, pro form a EBITDA has increased by 16% to €218,000,000 implies an absolute growth of €31,000,000 versus the one reported one year ago and a relative margin of 16.9% of sales, which is a 30 basis point in If we now look at Europe, our second largest region with sales accounting for 31% of the company, Our revenue in the region has reached €653,000,000 a 7% increase over 2023. This has been backed on an organic growth of 4.7% and inorganic has helped with an additional 1.5% growth. Comparing this growth to the region's GDP improvement in 2024 that ranges from a 0.2% decline in Germany to plus 3.2% in Spain, we've been able to outperform the economies we conduct reflecting the robustness of our model even in a challenging environment. Looking at transformation, we've experienced a very relevant increase of 16% with sales totaling €215,000,000 16% more than a year ago. Our transformation sales now account for 32.9% of total sales, implying an improvement of two seventeen basis points in the year. Turning to EBITDA, this has reached €31,000,000 which is €2,000,000 less than a year ago. The two main effects on this reduction being the investment in ForEx openings we've done throughout the year as well as a strike in Germany that hit us in the last quarter under which an agreement was reached.

And now we turn to Asia Pacific that represents This region sales have clung to €143,000,000 which is a 15% improvement over 2023 on the back of a very strong 16.3% organic growth with a negative currency impact of 1.7%, whilst inorganic has contributed positively by 0.8%. This growth again well outperforms the average GDP growth in the region of Turkey 5.5%. Transformation in the region continues to build strong reaching €30,000,000 in 2024, which is a 6% increase over that one at We now totaled 21.2% of total sales in the region under this category. However, when we look at this growth on a like for like basis, we can [indiscernible] plus 72.7% beating even the figure we had in September It is as well very important when we look at the pro form a EBITDA margin for the region to note that it has reached €3,000,000 that's at 2.1% of sales, underscoring that now all countries in Asia Pacific are contributing positively to profitability. This being a milestone, we expect to significantly improve in the near future. Thank you all. And now I'll ask Jose Antonio to please share on our ESC initiatives. Thank you, Miguel. I would like to now share with you our key events on the ESG front.

Firstly, we have approved our new sustainability mass plan for the coming years that will provide us with a thorough frame in which to conduct our activity in our having a positive impact in our society and always bear in mind the cost benefit trade off. And on those sides, I'd like to share some key achievements in this 2024. Regarding our environment, we've been able to reduce our overall CO2 emissions by 5.5% year on year due to several efforts such as diesel, consumption savings or increasing the use of bio friendly fuels. Showing that we can solidly contribute to our sustainable footprint. Along those end lines, we have been able to increase the amount of recycled materials.

From 17.2% to 33.7% in the case of plastics. These are very important steps and show how committed we are to ensuring that our recycling policies are strictly other two.

Turning now to our employees, I would like to highlight that in 2024, our incidence rate has decreased six point nine percent to twenty six point two percent. As well, we have worked on improving the static and is shown by our EMPS in which we reached an excellent score of 41.5, increasing seven points. Regarding governance, we have approved two important policies one being the environmental one to keep lowering our emissions policies and the other being the industrial relation and sourcing policy that will be our guiding principle in such relevant areas for our business. I'm very happy to share as well that five main agencies have improved our rating during the last twelve months.

Proving that all our efforts are recognized by independent actors such as social analytics, food safety for good MSCI Standard Ampors and IT Finance.

Finally, I would like to conclude recapping our main achievements for the year.

Have clearly passed the €2,000,000,000 sales mark backed by a solid organic growth and showing a double digit improvement of 12.3% in euro terms.

Our EBITDA profitability continues to improve having climbed by 13.9% over 2023 and sits at 12% on total sales Despite continuing to invest in growing our ForEx business, or requires some time to mature into profitability, or having continued to restructure Australia and suffer the mentioned strike in Germany. As we go down our profit and loss, we see that our earnings per share ratio has over past $0.06 well above 40% improvement over the data achieved one year ago.

I think this clearly shows the focus on managing the company from growth to the very bottom line.

In terms of transformation, we continue to push our solution that are being very well accepted by the market.

They now account for 32.2% of total sales having grown by 18.8% to €673,000,000 We are confident that our portfolio of transformation solutions is the best base from which to continue growing into coming years.

Regarding free cash flow, as you know, it's an absolute priority for us we have reached €148,000,000 in the year. A 24% improvement over 2023, that has enabled us to reduce our net debt in the last quarter permitting us to have a leverage ratio of 2.3 times significant drop versus the one we had a year or only three months ago. We are sure this is the way to go. I will continue to very diligently manage cash flow and control our debt levels. Lastly, our commitment to shareholder compensation continues strong as the €8,000,000 share buyback program approved shows. That ads to the €3,000,000 increase in the proposed dividend.

With this all, total shareholder compensation will improve by over 18% in the year Regarding ESG, we are showing important progress in the different forms I've shared earlier or ratified by the corresponding independent agencies. So as you can see, total 24 has been a very good year, but was most important, I am sure, that we have the basis for an even better 2025 and years to come. Thank you very much for your attention. And now I'd like to open the floor to any questions you might have.

Thank you. Thank you. We will now start with our first question, which is from Manuel Lorente Ortega from Santander. Please go ahead.

Hi, good morning. 2024 has been a year complicated in order to to address meaningful trends regarding the base FX from Argentina per inflation on December. So I would really appreciate whether you can give us some indication of the 18% of organic growth that you delivered this year?

Which one coming from pricing, volumes, and some indication regarding regions will be also great.

Hello. Manal? Thank you very much for the question.

Think the delivery has been a good year as you were saying. The growth has come as you said, 18%. The growth has come mainly from [indiscernible] two thirds, one third. We could say of [indiscernible] and price. So I think we are going to deliver in 2025 I think you have a good outlook also for for [indiscernible] think we are going to achieve delivery important growth [indiscernible] year, I think it's going to be very much driven by strong core, which is going to be very close to to GDP. And our high teens growth on the new products. So I think we are on the right trend to keep delivering growth. So I think the overall growth is going to be mid single digit. And the read above that.

Okay.

Okay. But before moving to 2025, I have also one question on on EBIT on margins in Latin America. Margins in Latin America were 17% which implies an average of 18% on the second half of the year, which is great. But still far away from the 20%, 23% you deliver not so far ago. So How do you see evolving these margins through time. This 2021% that we saw two, three years ago are still a valid reference. Or it has changed something. On this time in terms of volumes, competitive pressures, FX dynamics, Okay. I think the right question, I think the right answer would be [indiscernible] We will reach 31% I think it's very challenging because of the change of mix in countries. I don't think there is a big difference in competitive environment in the countries. I think this is pretty similar. Although the the mix, the different mix of the the weight of the countries have changed a little bit, but we are going to improve margins in most markets. We are going to see a delivery an important improvement next year. Okay. And then my final question on Asia Pacific. Again, things are evolving on the on the positive direction.

Margins has delivered close to 2% on a yearly basis Which is your long term respect from this business? Is this something similar to Europe margins, to Latin margins, somewhere midway I think on that one, I think this year has been a much because this is the first year we've been positive. I think this is something that is going to stay I think in the very short term, they are going to come to midway, as you were saying, not above in Europe and below Latin America. Hopefully, in the midterm, we are able to to improve that. But I think in the very short term, we are going to see a very strong performance on on Asia. I think sales are strong and EBITDA margin is going to be very we are going to see a very step improvement in the short term. Okay. Thank you. Thank you. We'll now take our next question. Next question is from Francisco Ruiz from BNP Paribasan. Please go ahead. Hi, good morning. I have three questions.

The first one is on the use of cash. You have had a a very good development on the free cash flow and debt in the last quarter, but for the whole year as well.

Have slightly increased your dividend, but [indiscernible] the cash flow generation continues in 2025 or theoretically would be a more normalized year where you could deliver better growth. You are going to get below the two times EBITDA more or less. So what is the policy in terms of use of cash? Can we see the company will return to a more active M and A role or it's just focused on trying to increase dividend and buybacks The second question is in Europe. What should be with the current situation and geopolitical risk, etcetera, should be the normalized margin for European business, not 25%, but mid run for you? And last last one is kind of follow-up on On previous questions on the margin because we appreciate the data that you gave on the transformation initiatives. We see that new products weighed more and more on your sales, but there is no major reflection in the in the margin. So I don't know how we should think on this transformation process is just a way to keep in sales growing with no profitability tailwinds or the profitability will come in a the coming years? Thank you.

Thank you, Pavel. On the first question, I think you are sure term focus is to reduce [indiscernible] We are going to have very strong focus on reducing our debt levels in the coming I think in the coming years. Don't think we're going to see Good morning, Manny. I think in the core business there is no more important acquisition that could be very value enhancing for us. We already have the capabilities we wanted to have in the [indiscernible] I think we have built Strong capabilities on on ForEx and Curvana. I think now we still have a lot of organic growth to come from those capabilities and expanding on those capabilities. So I see a strong focus on [indiscernible] reduction.

And at the same time, I'm trying to [indiscernible] [indiscernible] I think this year, we have grown 18% I don't know if it's sustainable to have at 19% growth year on year, but we are going to We are going to But you ask me what is our primary focus is on our debt reduction.

On the second second question, Europe. I think Europe now is pretty much affected by two things. One was the Dear, ma'am, The German strike, I think we are putting the basis to have Germany which is our largest country in Europe.

And the second thing is is where most of our ForEx [indiscernible] [indiscernible] As we said, we will be investing a lot this year in trying to expand the business, we have opened more than 100 locations, more or less two per week.

So it's a very strong growth.

And has affected our profitability. And that's pretty much linked to your third question. I think We wanted to pretty much capture the the opportunity that we saw in the market. And now we should extract value the growth We have done in mainly Forex. In Corvan as well, I think Corvan is going to improve profitability in 2025.

And I think ForEx business should bring us some high profitability. And we should see but this should impact the whole group on that front. I think all the investments that we are doing internally in the ForEx business and Corvan, should give returns in the coming years, we should see an improvement of 2025, but mostly in 2026.

This will be on the years to come. I think we the ForEx business is a business that we have put a lot of money 2024. We will put some in 2025. [indiscernible] [indiscernible] And we should see improvements of the results of this investment to the [indiscernible] '36. And the core of our business should bring We have signed two or three contracts very important in Latin America, in which we should see [indiscernible] important returns in mainly in 2026, but I think in 2025, we are going to we are going to see positive or earnings and hunting effects on on the group level. So we should see some profitability [indiscernible] on the margin side. [indiscernible] Thank you. We'll now take our next question. This is from Alvaro Bernal from Alantra. Please go ahead. Hi.

Thank you for taking my questions.

It has been partially responded already, but I'd like to deep dive in Argentina specifically.

If you can tell us more about how the situation is there, how are you seeing volumes And how well are you being able to trespass prices and controlling costs? That would be my first question. And then regarding the second one, you have talked about focus on debt level reduction. There a specific leverage you have [indiscernible] [indiscernible] and ore an absolute net number you're looking at. [indiscernible] is a situation economic [indiscernible] Their inflation rate now is more or less 2% per per month. And the devaluation is more or less 1.5% per month.

In that range to 2%, 1.5%.

So we are seeing reactivation of the economy. It was very [indiscernible] Because of the hard measures that were [indiscernible] for the economy in order to stop inflation.

In order to minimize as much as possible inflation. So and now it's starting to activate the economy. So we should see a bigger [indiscernible] of the economy and that should help our business.

Volumes I think they are going to be more positive this year.

In the world of the economy, cost the economy is going to be in a better situation. On the price part of it, I think we will follow inflation. I think you know that our price are pretty much linked to to label [indiscernible] and delivered tariffs are pretty much going to inflation. It's true that now it's very is intervening a lot in the current negotiations. So we [indiscernible] negotiations are private, including the unions and there is the companies, but the government has to ratify them And sometimes the delayed government is putting them down even after after an agreement has been reached between the companies and the units, [indiscernible] a way to curb the inflation of the country.

So but I think it's $2,025,000,000 euros is going to be pretty much linked to inflation. And it's true that it's we have to do every almost every month. Last year, we had monthly price increase. And I think this year, it's going to be nine to 10 price increases that we are going to have.

But I'm confident that we'll be able to [indiscernible] back transfer of labor cost increases to to our customers. And that's about Argentina. About the debt levels, I think our short term milestone is going to be get below [indiscernible] And I think we that's going to be a focus that we have to balance [indiscernible] but that's going to be our short term or our primary focus then we have said that we would like to be more or less closer to 1.5x.

Without being more for us in the midterm.

Okay. Thank you.

Thank you. We'll now take our next question This is from Enrique Yagas from Best Investor Securities. Please go ahead. Good morning, Saliera and Miguel. [indiscernible] also several questions about profitability. The first one is, could you be more precise about the improvement in profitability as expected for this year, which business [indiscernible] to drive this improvement on profitability? And also I'd like to know what are your expectations for margins in three years' time? You said that 21% was a little bit demanded. So what will be your expectations And finally, just A completely different question. In your previous strategic ATMs was one of the new business in an area that you might consider or not?

Thank you.

Okay. The first one on [indiscernible] I think we are going to read pretty much close to potentials. I've I think that's [indiscernible] our starting point [indiscernible] And what are the areas that are going to improve? I think we say, [indiscernible] part, which you have invested a lot, we are going to see Let's That should drive our profitability up. The second one I think Germany was pretty much affected by the by the strikes, but the strikes were really the type of negotiation So we have now I think we've been we are being very successful on transferring these tariff negotiations to our customers in Germany.

And at the same time, we are seeing some volume increase in Germany. So I think Germany ForEx, should drive out of up in 2025.

And the second question was about ATMs. [indiscernible] it's something that I was missing from the first one. [indiscernible] Yes. I also asked your opinion about the expected margins in three years' time.

No. As I think we are margins are going to go up. For sure.

And I think our we have improved 20 basis points this year, and I think we will [indiscernible] growth [indiscernible] we maintain or increase in the coming years on a yearly basis, months or we should we should try to beat that on [indiscernible] We should be yes. Closer to the 14%.

And if you ask me about ATMs, ATMs We have some mixed feelings about ADMs. I think banks are very attractive about the ATMs. The thing is I think it's part we are looking very closely to the ATM business The thing is that we need to see what is the business case which of the different situations.

Next week, we are going to start organically [indiscernible] I'm in Dominican Republic.

It is a growth pretty much lean to the tourist area.

So [indiscernible] Both countries. [indiscernible] On the that would be on the the ownership of ATMs. What we are doing is we are increasing our ATM maintenance business. So I think we are our team's division is [indiscernible] still very small, but it's growing very it's it's growing quite healthy. But on the ownership of ATMs [indiscernible] business risk of managing ATMs and having leadership ourselves We are very careful on the business [indiscernible] And at the moment, we are pretty much looking only at [indiscernible] focused touristic places and pretty much focused on the JV with Your next Because we are a major operator I think we we feel much more comfortable to do [indiscernible] There are no further questions at Pardon. We have one question just coming through. Please stand by. And we have a question from Manuel Laurenti Ortega from Santander. Please go ahead.

Yes. Sorry for the follow-up. I mean, I think that you mentioned consensus that you were comfortable with consensus estimate for this year. Consensus is something difficult to track. Sometimes, but I'm I'm seeing right now that consensus is expecting 2% top line growth. For this year. And roughly €420,000,000 of EBITDA that especially on the revenue side might look a little bit soft. Regarding what you have mentioned on the underlying trends. Whether you can add something about top line growth expectations for this year. Because I believe that you also have mentioned several Moving parts in terms of profitability improvements.

Yes. Would we have it higher on the sales side, I think we are going to grow much faster than [indiscernible] As we said, mid single digit, On I was more on the EBITDA front. I think we are going to be [indiscernible] On the consensus, I think we are going to be on the spot is more on the net profit on EBITDA above the EUR €100,000,000 net profit. We are going to [indiscernible] we should be around that.

Okay.

Thank you. And there are no further questions. So I will now hand the conference back to the speakers any closing comments.

Thank you very much. I just wanted to remind you of the three last messages. I think the This year 2024, we have delivered on the things that we [indiscernible] The end of last year.

I think we have had a strong sales [indiscernible] [indiscernible] increasing EBITDA and even More on net I think the leverage has been decreased as as we said. And I think the outlook for 2025 in Spring Pharmacy, we are going to [indiscernible] a little bit we would increase [indiscernible] we would expect to have strong EPS growth Our focus is going to be free cash flow generation and debt reduction.

With taking care of the important aspects [indiscernible] Think this is the effort that the whole team is going to be pretty much focused on Thank you very much.

Thank you. This concludes