DO & CO Aktiengesellschaft (DOC) Earnings Call Transcript

Ladies and gentlemen, welcome to the Conference Call on the Results of the First Quarter of the Business Year 2026/2027. I'm Moritz, the Chorus Call operator. [Operator Instructions] The conference is being recorded. [Operator Instructions] At this time, it's my pleasure to hand over to Attila Dogudan, CEO. Please go ahead, sir.

Thank you very much. Ladies and gentlemen, good afternoon to Europe, Turkey, Middle East, and good morning to the U.S. This is Attila Dogudan. Today, I'm joining this call from Salzburg in Austria, where we are preparing the UEFA Super Cup final between Paris Saint-Germain and Aston Villa, which will take place tonight. The rest of our team is spread through Europe today. We are very happy to present our Q1 results of the new business year '26-'27, and we are even more happy to present the best ever Q1 in our company history. Again, as always, but I think it's very important to say a big thank you to all the team members all over the world. We're really proud of every single person in the DO & CO family contributing to this success. DO & CO is more and more positioned itself as a premium brand through all divisions. We create guest experiences, which are unique regardless if it's in Formula 1 or ATP or PGA Golf or like today at the Super Cup from UEFA, the final. Additionally, more than 60 airlines, majority of the tenders we go in, we really win. And the customer base is really a great customer base, which we have. More than 70% of our clients in our restaurants and retailer clients who really come many times. So it's kind of repeating clients, which means we do something right in all these areas. And this all is driving basically sales increases and improvement in margins, and we believe strongly in the future, too. So let's go quickly through the presentation in terms of highlights, where are we? EUR 642 million means an increase of 5% in revenue. At constant currency, this would have been 10% EBITDA, EUR 78 million, which is an increase of 7%. EBIT, EUR 56.5 million means 8% plus and net result of EUR 31.2 million means even 16% of increase in comparison to Q1 of last year. More important, maybe even the -- the margins, again, slightly improved EBITDA from 12% to 12.2%, EBIT from 8.6% to 8.8% and net result from 4.4% to 4.9%. If you look then at the next page, the 3 divisions. So you see all divisions in a growth model, so to say, in terms of sales, EBITDA and EBIT. In terms of highlights, I think free cash flow of EUR 46.9 million is a doubling of -- in comparison to last year. We're very proud of the minus 0.07% in net debt and EBITDA ratio and 42.9% in equity ratio is a strong improvement in comparison to the 7.8% of the last year's Q1. As I mentioned already, there is a super clear trend for premium hospitality experiences in all segments we are operating. So we see it everywhere. And we see the demand everywhere in all divisions, and we strongly believe this is now really a good time to grow the business in a proper way. When we come to the 3 divisions, airline catering, as I said, numerous tenders which we [ couldn't ] win, and we're going to come back then in a minute more in detail. Air India and American in London Heathrow are big ones, Thai in Milan, Emirates in Boston and Air Canada in Los Angeles shows that throughout the network, regardless on which continent and where it is, we can attract more and more these kind of clientele. What do they have together? They focus on clients. They focus on customer experience each of them in their own way. But it's not like, I would say, they really care about their passengers on board. So everyone step-by-step realizes that maybe onboard product and lounge products are an incredible loyalty add-on, which if you make passengers happy, you get them emotionally and the cost for that in comparison is very, very low. International Event Catering, sport is the area where I think we can grow most regardless of all the corporate functions we do. FIFA World Cup, obviously, was a highlight, just came in very late, and we mentioned at the last call that we signed just a couple of days prior to the event started. But finally, I can report, I think it was one of the most successful performances we could have. We'll come back in a minute to this. Restaurants, Lounges & Hotels, nothing special, nothing new, all in line, refurbishment of the DO & CO headquarters, so to say, flagship in Stephansplatz in Vienna has started and is going on within the schedule. Reopening is planned for October 2026. The 3 main pillars, again, we always want to raise this innovation, innovation, innovation, quality and people are the main ingredients why this setup works better than our competitors setup. And it's all about innovation and guest experience, which I have mentioned already. So what we are doing mostly is thinking about how can we make the guest journey with -- add values for our clients regardless of Federations or F1 or an airline and then give the add value to the final end consumer, which then comes back in brand awareness and step by step, I think people realize who we are, where it's going to come from. And I will come back in a minute, obviously, to the PR, which we have received the last 48 hours, which was incredible. But maybe in 2 minutes, I will touch to this. Sustainable quality is one other pillar, which is key, buying the best ingredients, buying as much as possible, local sourcing, local is something which we get more and more in our DNA and then do something which really makes sense and people and clients everywhere appreciate this kind of approach. Finally, whatever you do right, it's end of the day, people business. So our unique company culture is the key driver why we are today in Salzburg, why this happens in many other locations at the same time. So this is the reason why we have to be very grateful and thankful to our team, which is I think, really incredible in their performance, have fun and know how to do it in a perfect way towards the clients. Creating the most memorable hospitality moments is exactly the combination of this personalized service with the right environment, the right decoration, the right product in terms of cuisine and taste, which we bring from all over the world, but combine then with a local touch. So this is a simple recipe, which we are very happy, not everyone can just replicate. So I think we have an advantage, which is not easy to catch because we are living this kind of culture already for many decades, which you cannot turn the other way around shortly regardless what money you put in. Coming quickly to the 3 divisions, Airlines, EUR 483 million, plus 4% and plus 10% on constant currency. EUR 57.4 million means 5% increase and EUR 39.9 million means another 4% increase despite the fact that we got a hit from -- obviously from the Middle Eastern carriers due to the crisis in the region, still a plus there. The reasons are that on one hand, we got more clients in various locations. And the other one is that load factors on other airlines has improved in a good way. So one of the key players in this game in Turkey is obviously Turkish Airlines, very long-term and hopefully another long-term partner for the future. Best hospitality and living this hospitality on board of this airline with, I think, in the meantime, with 560 aircrafts and buying another couple of hundred is for us an incredible relationship. We -- the whole team is heavily motivated every day to deliver something which makes a big difference. So innovation is here a big, big deal, as I always mentioned, and the number of flights you see on the slide and the number of meals of 300,000 and on peak days even 350,000. I guess there is no other kitchen in the world producing fresh meals in these volumes all in-house. So it's not bought in. It's really produced in-house. The third-party clientele gets more and more important in Turkey. So whoever is going to fly in, I would say, 90% plus is joining us, either they are our global clients or even if it's local airlines or regional airlines, they prefer to go to the market leader with this reputation. So that's the reason why we are very confident in terms of our new gourmet kitchen where the opening should be Q1 '28, which is completely on track, and you see an incredible big construction site, which is progressing within the schedule. British Airways, IAG Group and Iberia, another strong partnership with the 2 airlines, very reliable operations so far, knock on wood on both hubs, London-Heathrow and Madrid-Barajas. I mean, these are big hubs where we operate a couple of hundred flights a day, everywhere our fresh menus. Iberia just opened a new lounge in Madrid, the Emerald Lounge, which happened last week. The official opening will be in September. So everyone is getting more and more proud of special experiences, which bring them, obviously, in the premium clientele, loyalty and simply more business [indiscernible]. United States, on the next page, as you know, for a long time, we had almost no U.S. carrier as we always thought it's the peanut kind of lets say, setup where we are maybe not the right partners. Now after Delta and especially JetBlue and JetBlue is very much focusing with the Mint class on a super experience in the business class. Now we could get American Airlines -- so in London-Heathrow, when you say 22 flights, we are talking on 22 long-haul flights. So this is a good number, a significant number. And I think we have great opportunities to grow our business with American Airlines if once hopefully, we can get good NPS scores and good feedback from the passengers and from the crew. New contracts around the world. So you see listed all the Air Canada, Air India, I mentioned already Emirates and so on. Maybe more important is the truck on the picture. So our truck is -- I think it became now the most famous truck in the world. So the last 48 hours, there was not one single broadcast station, social media, newspaper, New York Times, you name it, where we were not on the front page. This is an incredible opportunity for us in terms of brand awareness, which I think, obviously, we have no comments as this is a discrete business. So we do not -- we just released yesterday a press release that end of the day is no comment. So what would you say? And it's not our job to comment this. But I think as a way, how it's through all the media around the world, it's really a way you can -- you simply cannot buy in. So International Event Catering, next one, EUR 111 million in terms of revenue means 11%. EUR 14.1 million, this increase of 17% in EBITDA and EBIT of EUR 11.8 million is an increase of 20%. Although we did not have 2 races in Saudi Arabia and Bahrain, we could cover this or we can -- we could replace with good revenues in other areas and especially obviously, in the FIFA World Cup 2026 where we could get this kind of minus on one hand and turn it to a plus. You see on the next page, our 3 locations. So it was Mexico City, including the opening game, Miami and New York. We believe these 3 stadia were the most important or at least one of the most important, so to say, as the opening, the final and Miami was a super destination for a certain crowd. So we did 20 matches and more than 75,000 guests in these 38 days. And it was a very successful operation. You do not hear something from me wording like this was almost perfect. So I think what we could achieve was that the comparison between other locations and us was for us the driver that everyone asked who are these guys doing this because people that they get in other locations and in Mexico or in Miami and New York, and we had a one-to-one comparison throughout the tournament, which everyone realized, the media realized, all the professional guys realized, FIFA obviously realized. So the feedback was excellent, and we got, I don't know, how many business cards and requests now. I think this is an incredible driver on the American market, combining now with our prominent, let's say, high loader and picture of the container truck, so to say, it's a good fit in terms of brand awareness on the market. Formula 1, next page, exciting season start. All the races in Miami, Canada, Monaco, Spain and in Spielberg, Austria were super sold out. Very good feedback. Formula 1 is going through the roof. Hopefully, it continues like this. There's very strong demand and except the 2 races, which were canceled, we see -- we are sold out everywhere. So the race of Bahrain was just a couple of days ago transferred, so to say, to Malaysia. So the one race which we lost in this quarter will come back somehow on, I think, in October 2 to 4 or something like this. It's already in the calendar. Maybe it will not be as packed as Bahrain was because it's on short notice, but we'll get some revenues back, which we lost in this quarter. Customer feedback, great state-of-the-art hospitality. I think F1 is really #1 worldwide in hospitality, which at least everyone says, and this is the feedback we get from the clients. By the way, in terms of client feedback, 97% say they like it and they would come back. So this is an incredible number. Allianz Arena, Bayern Munich, long-term partnership, Bundesliga, Champions League matches and other events, Olympic Park and SAP Garden, you know already what's going on. In Tennis, we had a super ATP in Madrid with the winner Jannik Sinner and the other part of the Champions League final to mention with, I think, 8,500 guests or even a little bit more in Budapest was a great success. So everywhere where we have been was luckily a good feedback. And again, super teamwork in all the areas. Restaurants, Lounges & Hotels, EUR 47 million, plus 7%; EBITDA, EUR 6.7 million which means 4% and plus 8% in EBIT, EUR 4.8 million. Nothing special to report. Demel is doing well, as always, with the Kaiserschmarrn, Vienna, the flagship store is under renovation for the next 2 months. So we might lose a little bit here in revenue. But at the end of the day, I think when we open, we can face another level of hopefully, yields, especially in hotel. We are getting a few more suites in as the demand on suites is very, very high. What else? I think for the restaurants, nothing more, airport gastronomy is doing well and all the lounges obviously doing well, too. For next year, I think we mentioned already, we're going to open another big lounge in Istanbul, which will be in operation, I think, in end of Q1 or Q2 next year 2027. And the rest is fine. Thank you very much for listening. I hand over to Johannes and then happy for your Q&A. Thank you very much.

Thank you. Good morning and good afternoon, everyone, and thank you for joining us today. Let me now take you through the financial performance in more detail on Slide 31. Starting with the revenue, we grew by 5% on a reported basis and by 10.2% at constant currency. And here, it's important to put these numbers into context. The Middle East conflict had an estimated revenue impact of around EUR 40 million in that quarter. Excluding this impact, reported revenue growth would have been approximately 11% and growth at constant currency, approximately 16%. Despite this significant headwind, we improved margins all the way down the P&L. Attila already mentioned the EBIT margin of 8.8% versus 8.6% last year and the increase in net result margin from 4.4% to 4.9%. The tax rate was higher than last year, while minorities came in slightly lower, but overall, the net result is in line with our expectations. Let's now take a closer look at Q1 on the next page and how it compares to the previous quarters. Looking at the margins, EBITDA remained at a strong level of the previous quarters. EBIT margin was close to our strongest quarter. And most importantly, the net result margin reached 4.9%, matching the strong level of Q3 last year. The margin development in particular, shows the resilience of our business model even in a challenging external environment. FX, you can see it on the bottom, had a relatively limited impact in Q1 with a gap of around 5 percentage points between reported and constant currency growth. Turning to the divisions on the next slide. Let me start with Airline Catering. At constant currency, revenue grew by 10%. Excluding the Middle East impact, growth would have been 15.2%. The division was impacted by an estimated net revenue loss of approximately EUR 25 million. Despite this, we were able to slightly improve the EBIT margin from 8.2% to 8.3%. International Events Catering also performed very well, delivering a double-digit revenue growth despite the cancellation of 2 Formula 1 Grand Prix in the Middle East. The FIFA World Cup also contributed positively to the strong development in that quarter. EBIT margin improved significantly from 9.8% to 10.6% Restaurants, Lounges & Hotels also continued its positive development, delivering double-digit growth at constant currency while further improving the EBIT margin from 10% to 10.2%. What is important for me here is that all 3 divisions further improved their margins in Q1 '26-'27. Moving on to the balance sheet on Slide 34. There are 2 points I would like to highlight. First, trade receivables increased by approximately EUR 59.9 million. That's mainly reflecting the higher level of business activity during the quarter. And second, cash and cash equivalents increased further to EUR 269.1 million. On the other side of the balance sheet on Page 35, our equity ratio increased further to 42.9%, supported by higher retained earnings and noncontrolling interest. Trade payables increased by EUR 43.3 million, partly related to the FIFA World Cup and our bank debt is now at a very low level with only EUR 10.1 million of scheduled repayments remaining for the current business year. Turning to the next Page 36, the cash flow statement. We also saw a very positive development here in the first quarter. Cash inflow from operating activities increased by EUR 18.1 million compared with last year, supported by our higher gross cash flow and a lower working capital outflow. Free cash flow more than doubled to EUR 46.9 million compared to EUR 23 million last year. CapEx was EUR 16.5 million in that quarter, slightly below our expectations, but we expect investment activity to pick up over the coming quarters and remain fully on track with our full year guidance. As a result of the strong earnings and cash generation, our cash position is now EUR 98.3 million higher than at the same point last year. Finally, let me spend a moment on our leverage position because I think the development here is worth highlighting. Based on rolling 4 quarter EBITDA, DO & CO has now moved into a net cash position with net-debt-to-EBITDA at negative 0.07x. Just to put this into perspective, this ratio stood at 3.3x in '21/'22. So we now have a very strong financial position, giving us significant flexibility to invest in future growth while maintaining a conservative balance sheet. So overall, we are very pleased with the start to the new financial year '26/'27. Despite an estimated revenue impact from the Middle East conflict, the underlying growth momentum of our business remains very strong. At the same time, all 3 divisions improved their margins. I think that's demonstrating the resilience of our operating model. And finally, strong cash generation has further strengthened our balance sheet and moved DO & CO into a net cash position. So thank you very much for your attention. We are now happy to take all the questions. Thank you.

[Operator Instructions] And the first question comes from Patrick Steiner from ODDO BHF.

Can you hear me? Okay, perfect. I've got a few. I will take them one by one, if that's okay for you. I'll start with the first one, which is with regards to the new kitchen in Istanbul. Can you maybe give us a bit more information about where will you be in terms of capacity utilization expected after the ramp-up? What is your expectations in incremental margin effect? Will this improve profitability at the joint venture and so on. This would be the first one.

Okay. Let me start to give you the -- hopefully the right answer. So as you know, that we have in Turkey, a cost-plus model on a defined margin. So the capacity now is throughout many locations as we do not have one main kitchen and it is very complicated. So we are having an average between 250,000 and 300,000 meals today, and the new kitchen will go up to 500,000. So 500,000 means in terms of revenue, always obviously depends on if Turkish Airline grows like they have scheduled and at the same time, if the others are growing as well. So in terms of capacity, I think then for the next, I would say, 8 to 10 years, we are incredibly safe. And not only this, additionally, if there was even more business, which then means that Turkish Airlines must have kind of 1,000 aircrafts. So this is a big deal. And then even then you could do -- you could separate partially warehouse areas in the building, which is easy to replicate somewhere else and increase the production. So the whole thing is built that you can size down and up depending on market conditions. So we are used after so many years in this business that you count both directions. So if there is a crisis, you immediately can reduce the capacity. And if there is good opportunities, then you can go ahead. Additionally, I think I have to mention we're working very strong on automization and robots and these kind of things. As you might know, almost 50% of the cost, so to say, is not visible for a passenger. And whatever we can gain in reduction on the logistics side, we can invest on the product. This is something which we do very proactively for the future. So I think in terms of percentage margin improvement, yes, a little bit, but you're not going to double it. In terms of revenue increase, I think you can expect then significant revenue increases if the market is in a good shape. I hope this helps.

Yes. That's very helpful indeed. The second one would be following up on costs, as you've just mentioned. I mean, after this enormous post-COVID growth phase that you have been in over the last few years, what is planned for the coming quarters in terms of efficiency measures? How will this affect the cost base in the current and next year? And where is the biggest cost savings potential, so to say?

Johannes, let me start and maybe Johannes continue. All the improvements in margins don't come because we just charge simply more to everyone. So it doesn't work. So there is a market, there's a market price. And yes, you can get some premium on the pricing, which we do. And to keep the premium and maybe slightly to increase the premium, then you have to invest in education in better skilled people, which means you pay them well. And at the same time, you train them to get this level to be consistent throughout the network wherever you go to. So this is the one side on the top line, so to say. And on the other side, we have to manage a constant improvement program within our costs everywhere from procurement to the robotic issue, which I have mentioned. And both together are having the goal going to the next level, which is heading now the 9% EBIT and then going hopefully as quick as possible to the double-digit, 10%. So 10% to 15% wherever, depending on the business and on the split of the business is a target which we have on a super long-run sustainable model, which we believe you can do. We do not think you can do 28%, but can we do something between double-digit 10% and something 15%, 100%. This is what we believe. Johannes, I don't know if you want to add something to this?

Yes, maybe one sentence. So also the margin improvement now in the last 3 years, I think that's a result of different measures. So of course, strong operational controlling, disciplined pricing, efficiency improvements, as Attila mentioned, strict cost management. But I think for now, the next step for sure is optimization. And if you look to our personnel costs, for example, in the P&L, you can see a shift between personnel costs and COGS. That's also due to the fact that we hire more permanent people, which also helps us to get a higher efficiency and more importantly, also reduces our overall cost base.

That's very insightful. And also answers the question thereafter. Maybe a last one from my side. I'd be very curious about how this quarter's award wins, especially with Emirates in Boston, which is a location which has a fewer number of customers, for example, compared to London-Heathrow is affecting what kind of impact does it have on logistics, procurement efficiency, margins? And how does it affect the setup there?

Johannes?

Yes, let me start. So that we don't want to disclose revenues for individual customers, but just a total number for you. So just to give you a sense of the business there, the customers mentioned in our press release have an annual revenue of approximately EUR 80 million. Part of the revenue we already have because we already produce some premium products, but it's a total revenue of EUR 80 million. And for sure, that also is one measure to improve our margin in certain locations because we get more contribution out of that. In terms of procurement and other overheads, we do not expect, to be honest, to higher spend here because we have a setup in London, we have a setup in those stations. Maybe we need some CapEx, but also not a big number like, for example, buying trucks for certain operations or maybe getting another warehouse for location, but we are not expecting now double-digit million CapEx for those customers.

And the next question comes from Simon Keller from NuWays.

Starting off with the FIFA World Cup and the inquiries that you now have as new opportunities seem to emerge in the U.S. for you. I was wondering, can you share any color on how these new opportunities look like? Do you think this is more a sports stadium business similar to the Allianz contract or is it more single event based? And also what lead times should we -- do you expect in this business over the next years as it evolves basically in the U.S.? Secondly, on the American Airline contract from London-Heathrow, I remember that you temporarily served them from London already. So I was wondering how big the step-up is, ideally, of course, in revenues, but I guess, on a per flight or flight per day basis, that would also be helpful. And my last question is on the financial flexibility that you have gained. And I was wondering whether you could once again outline your capital allocation considerations, in particular, whether you plan to maintain this net cash position or whether you're considering any other opportunities like buybacks, dividends, M&A and so on?

So thank you very much. Maybe let me answer the first part. The FIFA World Cup, I mean, as we have already mentioned and discussed together, our business, you cannot advertise. So the only way to get the next business and if you want to get the next business, then you have to create demand. Otherwise, you're under pressure on the margin. So the good news here is that in -- on the U.S. market so far, we are known for airline catering. We are known for the 3 races in Formula 1. And first time now, we got the opportunity to show the market, the public, the VIPs and the professional operators of stadia that you can do something in a stadium which is an incredible impact. And the money they pay already in the stadia for, I would say, average product is not so far away from them what we got. So the price level in the U.S. is so high. And for this kind of, let's say, price which you get, the product was in comparison, let's say, frankly reasonable. So I'm not saying bad, but it was reasonable. So what we expect is it's not going to happen from one day to the other. But definitely, as we did 3 locations, okay, one was Mexico, but a lot of Americans were there. But especially Miami and New York was a showcase for DO & CO, for the logo for the experience. And we believe in the next 2, 3 years, we'll get follow-up business could be operating in stadium, could be anything related for big events for corporates. So we have been asked by so many people where you come from, what can you do, where can you do. So we believe there is in all these segments, super opportunities. The stadium business, if someone understands that this kind of operation brings incredible returns for them will start, if you ask me in the next 2 to 3 years, max. So someone will come 100%. We have already initial talks, but it's not going to -- they have all existing contracts. And whenever they expire, I think they see now that there's another opportunity than the obvious players on the market, which are more on the commodity side than us on the guest experience side. Johannes, maybe you go with the American and the financial flexibility.

Yes, of course. Thank you. So regarding American in London at the moment, it's approximately 30% of the annual revenue that we won in the tender process that we are already doing now. So yes, of course, it's a big step-up, but 30% of the annual revenue is already within our P&L now. And regarding cash allocation and financial flexibility, you know that our first priority is always to continue investing into the business. But whenever we see good opportunities to grow and to generate a good return, we are also prepared to invest more. So that's why our CapEx guidance for this year remains at approximately EUR 90 million to EUR 95 million, although maybe in the first quarter, we only spent EUR 16.5 million but at the same time, of course, our strong cash generation and balance sheet gives us flexibility. I think M&A opportunities, potentially share buyback could be an option in the future. But at the moment, to be honest, we are really focusing on investing into the business.

Maybe let me add one sentence to this. Any penny, any cent we invest will rather increase the revenues or increase the margin, ideally both of them. So this is definitely the target. So it's not like go for the revenues and dilute the margin, no way for that. So I think we always mentioned this that the target is, as we said, always a double-digit EBIT margin on the long run. And we believe this is super achievable if we do our homework and do the right investments. So it's very clear that this company is going to go for future growth, and we're not going to stop and become lazy because we have enough money to live. So definitely not going to happen.

And the next question comes from Vladimira Urbankova from Erste Group.

Congratulations to excellent results. And I would have a couple of questions, both related to the results as well as the outlook. So on the results as such, I would very much appreciate to get the overall picture of the Middle East conflict impact. You said some EUR 25 million impact on the Airline Catering side. And how much was it in the Event Catering? That would be the first question. Outlook related to that, how does it -- how does the situation look like now? And what -- compared to the previous situation? And how do you judge you will be impacted this fiscal year? Next one would be in the event catering the impact of the FIFA World Cup. How much was recorded in first quarter? How much we still can expect as a top line contribution in the second quarter? And then last but not least, if you could give us a brief summary of your guidance, if you stick to it, what do you expect as revenue growth as reported and revenue growth in constant currency terms maybe? And also the margins after such an excellent first quarter, what is your EBIT margin guidance now?

Yes. Let me start. The first one is the results and the Middle Eastern impact. So the total impact of the Middle East conflict in Q1 was EUR 40 million top line, thereof EUR 25 million approximately in Airline Catering and EUR 15 million approximately in Event Catering. So if we talk about at constant currency, I mentioned that in my presentation, constant currency at constant currency, the revenue grew by 10% in Airline Catering. Without the Middle Eastern impact, it would have been 15%. And in Event Catering, of course, the loss of the Formula 1 races was overcompensated by the FIFA World Cup. I think that is the third question regarding the FIFA World Cup. Approximately 70% of our revenue is in Q1 and 30% in Q2 because we had 20 matches in total, 15 in Q1 and 5 in Q2. Then regarding the outlook, you know that we mentioned a number in our last call in March, we saw a net impact of the Middle Eastern conflict of EUR 16 million in 1 month in Airline Catering. Now it was EUR 25 million in the first quarter. June was a very low number. And in July, to be honest, we are always already back on track and on our budget level. So we do not see any impact of the Middle East conflict right now because also on the other side, we see higher load factors in some other routes. So from July onwards now, August, we see no further impact. I hope that the situation stays, but at the moment, it looks good. And that brings me to your last question to the guidance. So our guidance remains the same on top line, it's between 6% and 8%, of course, dependent on FX and the Middle Eastern situation. And at constant currency growth rate, we expect between 11% and 14%. So it's a difference of around 5 percentage points what we have seen now also in Q1. And regarding margin, also our guidance remains the same between 8.6% and 9% on the EBIT margin. I hope that helps.

Yes, that helps. May I ask you also for the absolute terms, the FIFA World Cup impact on the first quarter results. How many millions was it?