Jumbo S.A. (BELA) Earnings Call Transcript
September 24, 2026
Earnings Call Speaker Segments
Ladies and gentlemen, thank you for standing by. [Operator Instructions] The presentation will be followed by a question-and-answer session. [Operator Instructions]. At this time, I would like to turn the conference over to Mr. Apostolos-Evangelos Vakakis, Chairman of the Board of Directors; Mr. Polys Polycarpou, CFO; and Ms. Amalia Karamitsoli, Head of Investor Relations. Ms. Karamitsoli, you may now proceed.
Thank you. Good afternoon. Thank you for joining us. Today, I will take you through Jumbo's first half results, the performance of our markets and the priorities for the rest of the year. I will keep this presentation brief, so we have enough time for your questions at the end. Let me start with our main numbers. Group sales reached EUR 519 million in the first half, an increase of 4% year-on-year. Net profit was EUR 121 million, up 3%. Gross margin was at 63.5%, 33 basis points lower than the last year. The main pressure in the gross margin came from Romania. There was -- we absorbed the VAT increase, and we faced a weaker local currency. On the other hand, more favorable euro-dollar exchange rate manageable freight costs during most of the period and sales mix helped to offset some of this pressure. Sales for the first 8 months decreased by 6%. Our full year outlook remains around 5% sales growth and net profit of EUR 310 million to EUR 320 million. Performance differs across the markets. Greece which represents 60% of the group sales. Group grew by 7%. Cyprus grew by 4%. Bulgaria remained strong with sales up 11%. Romania was the most challenging market with sales down by 6.5%. Inflation pressure on the fiscal measures and the BT increase affected consumer demand. Separately, sales to franchise partners increased to about EUR 43 million from EUR 38 million last year. At this point, I would like to highlight the balance sheet. At the end of June, cash stood EUR 546 million. Group has no debt. That reflects the capacity to invest in the business while continuing to return cash to the shareholders. We have already paid EUR 1.20 per share this year, EUR 0.50 in March, EUR 0.70 in dividend in July. And yesterday, the Board resolved the pay for further cash distribution of EUR 1 per share. Including that amount, the total cash distribution in 2026 will reach EUR 2.20 per share or approximately EUR 296 million. Looking ahead, we expect a new Biomar hypers in Romania to open in October. We also planned openings in Romania and Cyprus in 2027. In Greece, 4 stores are in preparation with opening expecting in 2028. Bulgaria remains in our plans for 1 additional hyperstore within the next 2 years. Over the longer term, our objective in Romania is to double the number of stores. We're also developing a small ad format for selected locations, with the first opening targeting in 2027 and 2028. Finally, we plan to launch the Hungary online store towards the end of this year, supported by existing infrastructure in Romania. Our franchise partners currently operate 48 Jumbo branded stores in 7 countries. Our revenue, this activity has 2 pass sales of products to the partners and realty income. Bulking plants its first on motor and has extended our cooperation to 6 additional markets. For those new markets taking manage the supply, we manage the supply chain through the China. Fox Group operates Jumbo brand stores in Israel and enacting to first stores in iTorodo by the end of 2026. Our investment focus on logistic capacity, the store network and our systems. In Romania, the progress of acquiring a 60,000 square meter giga distribution center is progressive. Also in Tesaloniti, the new 50,000 square meter facility is expected to be completed in 2027. We are also investing in cybersecurity and modernize our systems. All these projects support the long-term efficiency of the business. To sum up, the first half delivered growth, potentials and profit, recent Bulgaria performed well, while Romania remains challenging. We have maintained our full year outlook. We will continue to invest in the network and logistics while returning cash to the shareholders. Thank you for your attention. Now Mr. Vakakis will take your questions.
Ladies and gentlemen, at this time, we'll begin the question-and-answer session. [Operator Instructions]. The first question comes from the line of Stamatios Draziotis with Eurobank Equities.
Yes. Let me start with the first one, which is on the gross margins. You mentioned gross margin was down 33 bps in H1. Could you maybe help us quantify the main moving parts i.e. FX, freight franchise mix, Romania. And more importantly, how much of the favorable procurement backdrop is left to flow through in the second half, please?
I understood nothing. I'm confused. What exactly are you asking?
What drove the 33 bps margin contraction in H1 is the first leg of the question.
I would say that the impact -- the reduction, I mean, on the gross margin, I would say that it came all from Romania, while improvement of the gross margin in other markets have rebalanced that a little bit upwards. But all in all, we lost about 0.5 percentage point, which is within our budget within our budgeted numbers.
And based on the rates that you have secured for the second half of the year, how do you expect gross margins to evolve, please?
We expect the gross margin to be flat. It would be in line with the first 6 months. But having said that, everything goes. I mean, we see a little bit now the dollar strengthening against the euro. We see that the cost of transport is holding steady and in some cases, increasing. But my opinion, which is subjective and not objective is in the direction that all these changes will not impact negatively the gross margin on the remaining months of the year.
That's great. And just a final question on the -- on shareholder returns. You've said you've distributed or about to distribute a total of more than EUR 2 per share in '26. With the group still carrying a very large net cash position, how should we think about the sustainable annual cash return from here? Should we view, I don't know, EUR 1.5 EUR 2 per share as a reasonable range during a period when growth is not as it used to be a few years ago.
Again, I'm a little bit confused. The direction of the company is towards growth, generic growth, and we are working towards this goal. If we -- market conditions do not allow this to happen in the short term, the only alternative is to pay dividends. If we have the option to direct money towards further investments and growth potential. This is our first auction. But we live in turbulent times. And therefore, 1 can have to be very careful in what he says because market realities may force in towards a different direction. All in all, however, despite the roughness of the trip, we seem to be coping in line with the last 20, 25 years of the past. We don't feel more unsecured, let's put it this way.
The next question comes from the line of Iakovos Kourtesis with Piraeus Securities.
My first question has to do with Hungary and the fact that we plan to launch the first online store in the country by the end of the year. If you could -- assuming that things will go as to you expect to go in the country, would the next step be the deployment of physical stores as you mentioned in previous times? And what will be the timing gap before we see this happening?
What we have said is that we will remain focused on markets that we are currently operating. And for somebody who reads our announcement, it is that we are back into rapid growth of new stores between '27 and '28 more in '28, because -- but we are building currently a lot of stores and buying -- securing land and property around. So to put into the work plan also Hungary would be not a prudent action. We will stay with a shop, read the market, learn from the shop and then we'll be ready later. I don't believe that we will see an activity happening in Hungary in a period less than 3 years.
Okay. And since you've mentioned that you are in the progress of preparing 4 stores in Greece, would it be too much to ask where are these locations that you plan to open these stores in 2028?
Deliberately, we have not announced that because we believe that, that doesn't help the way we approach authorizations and the rest. I mean, there is no need to create further resentment than the absolute necessary.
Okay. And if I may, 1 last question. Would you be kind enough to let us know what's happening with note. Do you have the land plot there? Did you acquire it.
We have acquired all all lots have been already bought. -- we don't announce a new store unless we have secured the land.
Okay. And since you acquired the land, you seem to reassess the logistics center there due to, as far as I understand, you plan to apply the Bulfin group model with FOX Group or this is maybe your infection. What do you plan to do with it going forward?
The idea is that we are refocusing on our own stores. So regarding the franchise activity, we want to rebalance it against our main activity. We see a danger in our franchise activity growing too fast, too quickly. That this may infringe our growth potential of our own properties and our own markets and stores. For this reason, we have made alliances with FOX Group and group in order to take some pressure out of that and refocus into our main activity, which is generic growth of our own destinations and properties.
The next question comes from the line of [ Yanes Kalooropulos ] with Beta Securities.
I have a question regarding your new smaller stores that you mentioned that you would operate in 2027 and 2028. Would you consider that this marks a shift on Jumbo's current operating model with the bigger or the hyper stores now that you are expanding in touristic or popular areas with smaller stores, as you say. And would you predict that these new stores would enhance dilute or do not affect your operating profitability margins, thank you.
If 1 wants to elaborate a little bit more as part of his activity towards areas that are more expensive to operate. It makes sense to run smaller stores and product ranges that have the gross margin to support such an alternative option. So although it is early to say, our planning is based on the assumption that increased costs of smaller stores would be counterbalanced by a better gross margin on these stores.
Okay. And I confuse you? Yes, it's quite helpful. And do you consider this shift to smaller type of stores in more density or more popular or more touristic areas, something like a change in Jumbo's operating model, because up to now, your strategy, I think, was both for Greece and the Balkans, Romania, Bulgaria and whatever, to operate big or hyper stores. Now that you are switching to smaller ones Isn't it roughly like becoming more oriented. I don't know if it's proper to say like a supermarket retailer.
No, our strategy is a little bit like the e-commerce strategy. We hope to approach areas that were not approachable in the past. For the reason that, first of all, you cannot find locations with the magnitude of the size that we are talking about Jumbo without paying you shift. So you will need to run a limited range of products that will house the necessary gross margin, as I said, that will finance the additional costs. So we see this operation as a complementary 1, as an add-on exercise rather than as a competing exercise to the existing network of stores. Plus the fact that Greece's future whether we like it or not will be based on tourism more and more. So the store has to approach the tourists rather than the tourist store.
[Operator Instructions] The next question is a follow-up question from Iakovos Kourtesis with Piraeus Securities.
As a follow-up to Jon's questions, if I may ask taking into account that these pop-up stores will be small stores. Should we assume that they should have some proximity to existing large stores that will help them with logistics and inventories. That does make sense.
No. No, it doesn't make sense. There will be freestanding operations. When we say small stores, this is a relative term. smaller than existing stores. We are not talking about small, small stores because we are not a boutique concept. But anything over 2,000 to 3,000 miles, it would be considered as a possible option for us to operate if the demographics the location and the cost implications makes sense. If they don't make sense, of course, we will shy away. We are not changing the model. We are adding to the model at least. What would be the future, nobody knows. Also, you have to bear to always bear in mind that we are -- we have in areas, franchise operations also in Greece, that in the future may be substituted by our own stores. The whole idea is that all the profit should benefit the company, if the numbers support that.
Ladies and gentlemen, there are no further audio questions at this time, and we will now move on to the webcast question. First webcast question comes from Nicolas Gourdain with Lexcor Capital. You had mentioned the possible acquisition of a new large distribution center in Romania. Is there any update on that you can share with us?
As a matter of fact, we paid the advance payment today. So it is ours now. And we are going through the due diligence in order to pay the balance, and we hope to have that concluded within the next 1.5 months. We can now announce that, that was a big factor in Ploiesti and which was owned by Chinese company called higher -- and it's almost a brand-new building with ultra modern facilities and the rest. So the way we see it is that we are investing heavily in Romania since we have a plan of doubling our store presence there, and we need the infrastructure to support such moves. Also, I want to make a small mention here. For us, Romania going through a turbulent period is an opportunity, not a threat. We are very strongly believing in the Romanian market. And we believe that we are offered now opportunities to acquire assets at prices that would make sense in the future. So the strategy of Jumbo is never by turnover. But when they're going in an area or in a country is rough, we increase our investment in this country. And therefore, we have the benefit of a windfall also from the asset appreciation, although we never reflect this asset appreciation in our books since this is the vehicle to do our business, and we will never dispose it. But it helps on the numbers. It helps on the gross margin and our profitability, which remains on the upper end of the industry.
The next webcast question comes from Aria Cohen with iCapital. At what CAGR approximately you see revenue growing in the next 5 years.
I've never thought of 5 years ahead, but I would be disappointed if I -- we didn't have a revenue increase, which compounded with, let's say, strong single-digit number a year.
The next webcast question comes from Jorge Sanriopoulos with Asset Management. First question, does the new EU customs duty on direct to consumer parcels. In effect from July show up yet in your competitive position against platforms like Teo and Shan?That was the first part of the question.
Yes. This is common sense. Europe has reacted. And it's going to react further, making the environment more fair because before, we had an environment where the competition coming from other retailers was, to a degree, unfair, because they had a lower cost implication for them. Now Europe is taking steps and has announced that it will take further steps to balance this. But as I keep saying, this is, let's say, a benefit for our numbers, while at the same time, we will also face conditions without the same benefit, but a negative implication. But plus/minus of this operation makes us relatively confident that we can reproduce successfully what we have been doing up to now.
Second part of the question, what like-for-like growth do you think Greece can sustain?
That's a good question. Greece is currently overperforming against all logic. What will happen in the future will depend on how risk will balance after the next year's election. This is something for the Greek population to decide, and we will just follow that decision. It is premature for somebody to say something more of that. It is a surprise that Greece gets over forms.
Third question, for the new smaller pop-up stores, what's the sales per square meter versus hyperstores.
The idea is to have the same sales per square meter as in a bigger store. But as I said, since we will be running a reduced portfolio of products will be more selective towards higher contributing gross margin options.
Next webcast question comes from Jonathan Nioshella with Abilio. Good afternoon. Will the new pop-up stores comparable to the action stores? Or will they be better?
Action stores as well as other competitor stores have a completely different philosophy. And they are relatively small stores, focusing on a relatively limited product range. There are direct competitors to mom-and-pop stores, not to our stores. And gradually, they substitute these type of stores into the market. As far as we are concerned, the competition we face from them is very helpful, because practically, it helps us get better. But we are not inactive. We follow them very closely, and we are very sure that we cannot be beaten by small joints like the ones you mentioned.
Next question comes from Maksim Nekrasov with Citi and I quote, how much of the benefit from the stronger euro to United States dollar has already reached gross margin? How much benefit is still left for the second half 2026 and 2027.
We don't have a clue. Currently, we face a situation that the dollar is strengthening against logic or within logic because nobody knows these things. If we see ambitious change, this will be reflected on the prices, and it would be for everybody. But as it hovers within the range. I would say that the impact has been relatively positive up to now. And since now relatively an positive, but nobody knows what will happen after the midterm collections in U.S. We don't lose too much sleep with currencies because as you know, we are hedged with products. And if conditions in the market change, prices of products would change. However, if we hover within what we call acceptable ranges for us, we pass every advantage to the consumer. Otherwise, in markets where the demographics don't help, we wouldn't have like-for-like growth.
Next question is a follow-up question from Maksim Nekrasov and what sales margins and returns do you expect from new stores and the pop-up format -- could pop-ups meaningfully speed up store expansion.
No, Pop-ups stores like drops, for example, supporting aircrafts or airplanes, fighter airplanes. They cannot substitute them, at least in the foreseeable future. Jumbo is a unique concept. It is well received and well accepted by the consumer. And I don't think it would be affected by, let's say, variations in our strategy the same way that it has not been affected by the e-commerce activity.
The next question is a follow-up question from Jonathan Nocella. Cash is at 550 and keeps accumulating. That is a lot more than 25% of revenues. What does Jumbo plan to do with excess cash?
In the short term, we are paying a dividend in extraordinary dividend. In the medium and long term, we have either the option of paying let's say, bigger dividends or expanding in what we call generic opportunities around border countries that we involve ourselves. I have always indicated that my first option is expansion, but never to buy the turnover. If the market creates opportunities for mid- to long-term expansion, we would take them proactively. And this is what we are doing, for example, in Romania, where some people may question why the hell are we investing if the market is retracting. The answer is that the market very logically retracts until it rebalances. And then people who have invested in new cities or new warehouses or new formats of retail opportunities, would benefit better than other people who got and stop doing so.
The next question comes from [indiscernible]. Is Hungary e-commerce pilot similar to Turkey? Or do you have more confidence that this can be a candidate for Jumbo owned stores in the future, given it is in the EU?
Turkey in order to defend itself against platforms like demo and other platforms that were importing directly into Turkey, created an environment which was totally unfriendly for such activity. I'm sure that it will come a time that they will revisit their strategies. And then Turkey will become a future capital for e-commerce activity. Definitely, we do not intend to establish a warehouse in Turkey. And the answer is that we don't like to involve ourselves into countries that are not part of the easy strong currency environment. And therefore, it won't be, let's say, a first option for us in the future. Now we have involved ourselves into another country, and there may be another country. And -- but always our mine would be open for any store in Turkey on the assumption that we will not warehouse products in Turkey.
The next question comes from Harry Wilton with Virgin AM. And I quote, the first part of question is, please, can you please share your expectations for growth rates for each market for second half '26?
I would say that they will be in line with the first part. The only area that secretly, I would like to see an improvement. It's Romania. All other areas are growing very strongly. And as a result, we don't want anything more than that.
Second part of the question is CapEx spend seems like year-to-date. Why is that.
What is CapEx?
CapEx spend seems like YTD, I suppose year-to-date? Why is that?
Why is what? Is it higher or smaller? I don't follow this number very closely because our CapEx number really is a 3-year number since this is the way we approach a store investment strategy. The store cannot be active before 2 to 2.5 years of pre-investment activity. I don't have a clue how much is our CapEx for this year. I mean I think it must be a little bit smaller than necessary. But now we bought the new distribution center, so that will rebalance.
The next question, what is your outlook for margins in each segment for the rest of the year?
What is the what?
What is your outlook for margins in each segment for the rest of the year?
I cannot understand the question. Margins by geography. More or less, we try to keep them consult by altering the product mix, but with the exception of Romania, all other countries, either we enjoy the margin or we don't sell the product.
And the next question, why was franchise sales per franchise store down minus 3.6%.
These are numbers that are marginal. I mean, we do not control the franchise operation or source directly. And this has to do more with the activity of the owners of the franchise themselves. I would say that all in all, I don't see any resentment of any unhappiness in this part of business, although it is an area that we don't want to grow ourselves. We tried to discourage people from entering franchise agreements with us.
The next question, details behind improved working capital cycle and whether this should remain?
What?
Any details behind improved working capital cycle and whether this should remain?
I don't know what to answer. I haven't understood the question. One second.
Because our working capital was better in the first half of this year. And at the question, please?
If conditions, if conditions turn in our favor, which is something that we have not experienced up to now because the cost of transportation is high and the cost of the war is high. I would say that we should not be over aggressive but we believe better times will come. we cannot have infinite, let's say, periods of war or infinite period so far distribution destruction. I think we are well balanced all in all. We don't have any, let's say, vicious number alterations.
Next question is with the business growing its franchise model, do you think the level of cash required to sustain operations will be lower in the future than it has been in the past?
Depends how much of this cash will be redistributed to shareholders or invested in properties owned by us. Definitely, we don't want to hold significantly more cash than necessary. But the model that we have in our mind is for a company that can sustain also a very big crisis. I mean, Jumbo is in a position to sustain a very big crisis, although we don't have signs of such prices. But as you know, better than me, crisis come when no 1 expects them.
Next, webcast question comes from Luca Barone with Orsan. Looking a few years ahead, would you consider entering directly the most successful countries.
We don't have the size or the appetite for what we call bigger growth to the 1 that we have planned. We want to consolidate our act. I keep saying that Jumbo flies as a plane and not as a rocket. And we have no intention of changing the strategy that has supported the company for many years.
The next webcast question comes from Sang Hong. I have a question. How is the group planning to control the inventory given it has been increasing since second half 2025. And are you expecting it to be significantly down once the distribution center has been finished in Romania?
My feeling is that the inventory is coming down, not coming up. I mean we are running with 3% less inventory than last year up to now. As a matter of fact, we want to beef up this inventory, but the market does not give us the opportunity to be more aggressive because of the indirect cost. Still affecting this direction. So staying stable or even marginally reducing the inventory levels is the correct strategy in the current environment.
The next question is a follow-up question from Jonathan Nacelle and Jumbo successful in buying more rented stores to lower the rent expenses. Any progress on the 30% of the stores that are currently rented?
Yes, we are always around if somebody wants to sell the store. And up to now, a lot of funds think about that. But the question is that they have to sell it cheap. So we are open calls, but we are not Santa Claus. We don't buy at any price. And we don't buy our name. I mean the building is a build. We have the strength of the brand.
The next webcast question comes from [indiscernible] with Casino. Could you give us more details regarding the pop-up stores number square meters countries?
That it is successful, gradually will be employed in every direction, but it makes sense. But as we stand today, we are still on a project and it's at its infancy. So practically speaking, I think it's premature to talk too much about that. I would be happy if by next year, we have 3, 4, 5 per episode. And then another year, maybe a few more and so on.
The next question is a follow-up question from [indiscernible]. And I quote, Will the pop-up stores will be open the whole year or only during the summer.
Whole year, since there would be always central stores in highly populated areas and malls or freestanding. And as a result of that, they should be viable year.
The next webcast question comes from George Athanasakis with Mandalay Securities. And I quote Romania real estate. Do you see any opportunities to expand your store network more aggressively now given the macro political difficulties the country is going through. And what do you mean when you say the process to acquire a giga distribution center in Romania is progressing? Have you bought it or not?
I mentioned earlier that today we paid for it. So it was both today. Of course, we still have to go through due diligence that all the legal actions are correct. But assuming that we don't find any hurdle coming from any , it would -- we will totally pay the property in the near future. So it's ours.
The next webcast question comes from George Manitas with -- how concerned are you about the fact that Greece is heading towards national elections. Has this affected any of your major investment decisions? And what is your view on the upgrade of the Asset Stock Exchange? And what kind of inflows do you expect it to generate for your stock?
The company does not involve itself into policy. And as a result of that, it is the Greek boater who decides who will manage the country in the future. Definitely, we have not refrained in any form of an investment. As a matter of fact, on the contrary, we are putting back Greece into the picture because of the numbers that we generate out of Greece. I said that to our surprise, numbers are better than expected, which means that either the competition is getting weaker or tourism helps towards a direction.
The next webcast question comes from [indiscernible] with CNM Greece. And I quote if journalists are allowed to ask questions. I'd like to ask about the Hungarian market. where you stated in your presentation that you plan to enter with an online store by the end of 2026, is there a possibility of opening brick-and-mortar stores depending on how the online store performs.
I said previously that we have no intention to involve ourselves into Hungarian market before 3 years from now, and that a lot would depend also on how bad -- how strong the remaining market rebalances. Romania is a very strong country, well populated, very strong. And as a result of that, we see the difficulties in the Romanian market as temporary.
The next webcast question comes from Jonathan Nocella. It's a follow-up question. In the last weeks, oil prices increased again. Do you see a slower revenue growth in September?
The answer is no. September has been 1 of our good months, and in line with the growth that we experienced in July and August. So we have no such signs. Bear also in mind that we are much more -- we have a much more, let's say, strong company now because of the various difficulties. We are a better company than what we used to be, let's say, 1 or 2 years ago. So difficulties serve us well.
The next webcast question comes from Sairam with Reading People Limited. Could you elaborate about your expectations from the Canada franchise?
Again we don't have a clue. We are going there to win the war. But we are partners in directly. We are going to have a franchise -- so if somebody needs to answer this question, it's the franchise, not us. We will do whatever human be possible to support -- but it's up to his will and expect this to execute the world.
The next webcast question comes from George Athanasakis with Securities. How do you expect them to react given the reportedly severe blown to their business after the Euro 3 charges implemented by the European Union.
What's that?
It was not before EUR 3, that was post by the European Union, we have answered this before. So it is with question.
Yes. What we said is that definitely, this works in our favor. Definitely, it creates problems that need to be solved by our competitors who, let's say, utilize various loopholes that gradually are closing. But these are strong components and strong competitors and they would come back with a revised world plan on their part. We never lost sleep from the previous, let's say, unfair competition. And we would not go to sleep because now we have been gradually protected by such share moves. Our competitors are formidable and they will find ways to rebalance the act. I'm a strong believer of competition. I believe that we all work to serve the consumer -- and I'm against oligopolies and I'm against more forms of, let's say, protections.
The next webcast question is a follow-up question from Dimitris. What is the surcharge on your operating cost because of the crisis in Middle East, how this surcharge will affect prices?
All these charges have been reflected on our gross margin. So practically speaking, we have improved our productivity. And successfully, we have asked the support from our suppliers to counterbalance this, let's say hidden cost of the war. This is a situation that cannot stay forever. You cannot -- did not do it. We will die. But in the short term, we can do many things to counterbalance problems that lie around. I'm very confident that we are going through a period that the serious implications of the world would gradually eclipse. I'm of the firm belief that after the midterm elections in the state, all necessary actions that need to be taken in order to to make things happen would be taken. It is a fallacy to believe that after the midterm elections activity towards resolving these type of issues will subside. On the contrary, I think that we would see a completely different environment once politicians take out the weight of of the election implications.
The next webcast question comes from [indiscernible]. You now have multiple examples of action stores opening close to your jumbo stores in Romania, for example, a order. Can you tell us what the impact was on your sales in stores were action opened nearby?
And I said, nobody pays any attention such active we really don't consider them as direct competitors. I mean, a big hypermarket or a big discounter or whatever, how much more strong competitors than them. They make a living on a different concept, a different strategy. And before action there were many more before the that even exist very close to our stores all around the world.
Next webcast question is a follow-up question from Luca Barone with Orsa. I was meaning to buy out the most successful franchises over time. I suppose he's referring to his previous question and consequently, your answer.
The answer is no. We only focus ourselves on what we call generic growth within the EC market. We don't offer franchise opportunities within easy market. So the franchise, let's say, action, which we want to redivert into an indirect support for them and not support them through our infrastructure ourselves are there as a complementary exercise towards our overheads. They don't -- they don't -- they are not part of a long-term strategy.
The next webcast question comes from Santique with Capital. You said that Greece is currently overperforming against all logic. What exactly are you seeing in your data that makes you say that? Is it higher traffic, a bigger average basket stronger tourist spending or market share gains from competitors?
Everything and nothing. Everything and nothing because let's not be misquoted. We were expecting Greece to do worse than what it's doing. But not much worse. We are in a position to benefit from, let's say, a little bit better environment than what we have expected. So a little bit of everything is the answer. We believe also our competitors are doing relatively okay.
The next is question is a follow-up question from Sang Hong. Sorry, a follow-up question from my side. But I see the cost of goods sold caught up at the same level with inventory also, which were not the cases before second half 2025. Is it something that in the attention of the company? And are you expecting these numbers to be down.
We have answered them. I said that they are already down. I don't see where you read these numbers. Numbers are only 1 type of numbers. There can't be 2 type of numbers. And our overall inventory, I think it's 3% less than last year.
The next webcast question is from Ria Cohen with Capital and why the company doesn't repurchase stocks in current low prices.
If we will buy back -- this is the third option. First option is generic growth. Second option is return dividends. Third option is buyback of -- but since we have a positive view about the near future, I think our first option, which is generic growth is the 1 that it's in favor within the management team.
The next question is from Nicolas Kavas with retail investor. Is an MBA student -- and I quote, given the new EU duty on low-value Chinese parcels and your strong cash position, would you consider a more aggressive e-commerce strategy?
The answer is no. Our e-commerce activity would always be complementary because we want to encourage customers to enter the store and this is where our strong competitive advantage lies. So complementary activity, yes, competing activity, no.
Ladies and gentlemen, there are no further questions at this time. I would now turn the conference over to Mr. Vakakis for any closing comments.
Thank you. Okay. Thank you for listening to me. My personal view is that companies that do their homework every day. only have to benefit out of various types of prices. And if 1 runs a balance act and does not try to buy or to full his business partners is a better course to ride than a donkey -- having said that it is also true that we live in turbulent times. And we may have unexpected shops, but nobody can envision today. My personal view is that we will not have so. But this is not an objective view. This is a personal view. And I always repeat that most of the times, I'm wrong. But my personal view is optimistic. It's not pessimistic. Good afternoon, and thank you for listening to us.
Ladies and gentlemen, the conference has now concluded, and you may disconnect your telephone. Thank you for calling. Have a good afternoon.
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