NewPrinces S.p.A. (NWL) Earnings Call Transcript

Thank you. So thank you, everyone, and good afternoon, and thank you for joining today's call on the 9 months 2021 results of Newlat Food S.p.A. I am Benedetta Mastrolia, I'm the Investor Relator Newlat. And joining me today to discuss the results are Angelo Mastrolia, our Executive Chairman; Giuseppe Mastrolia, CEO and Chief Commercial Officer; Rocco Sergi, CFO; and Fabio Fazzari, Group Financial Director at Newlat Group. Before we start, I would like to remind you that this presentation may contain certain forward-looking statements that reflect the company's management's current views with respect to future events and financial and operational performance of the company and its subsidiaries. These forward-looking statements are based on Newlat Food S.p.A's current expectations and projections about those future events. Any reference to past performance of Newlat Food shall not be taken as a representation or indication that such performance will continue in the future. So now we'll move on to Slide 3, where the actual presentation starts. We have the key financial highlights for the period. Revenue. Starting from revenues. We have consolidated revenues in 2021 of EUR 383.2 million, which show an increase versus last year where we had EUR 325.7 million in revenues. If we look at the pro forma revenues, which actually includes both Symington's and CLI from the 1st of January 2020, we see that the revenues were EUR 452.5 million in 2021, which is a decrease of 2.2% versus the first 9 months of 2020. Despite the small decrease, we actually had very good results. If we take into consideration that last year we had an exceptional growth, and we actually recorded some very good growth in some specific business units or areas such as dairy, where we had an increase of 21.1%, despite we also had a very strong increase last year and even the year before. So we've been growing basically double digit every year for the past 4 or 5 years in this particular business unit, and we're really happy that we continue this growth. We also had very good growth in Germany, where we grew 4.6% despite the fact that last year, actually, Germany grew the most. This year, we were able to even further increase our revenues there. In terms of Q3, we can see sort of change in direction in terms of growth. So we actually at Newlat level registered a growth of 3%, which kind of counterbalances the first 6 months performance where we had a slight decrease in sales. And as a result, we can see that in the first 9 months, the organic growth of Newlat Food was actually just minus 1.7%. So it was a much lower decrease versus the 3.9% that we recorded in the first 6 months of the year. Now we move on to EBITDA. So EBITDA at consolidated level was EUR 36.4 million versus EUR 36 million in 2020. And we recorded a pro forma EBITDA of EUR 43.5 million and a pro forma EBITDA margin of EUR 9.6 million -- 9.6%, apologies. And there was a slight decrease in the pro forma EBITDA and pro forma EBITDA margin, but these were not as huge if we compare these to even the reduction in sales deeds with natural reduction in sales that we had. EBIT. So we see that the consolidated EBIT was EUR 16.6 million versus EUR 9.5 million in 2020, and we had a return on sales of 5.3% versus 4.8% last year. Net income. The consolidated net income was EUR 11.5 million, which is an increase of 9.3% versus last year. And the pro forma net income was EUR 11.9 million, which compares to the EUR 13.7 million recorded in the first 9 months of 2020. So the return on equity was 7.7% versus 8.6% last year. Free cash flow was equal to EUR 9.8 million. We had an EBITDA free cash flow conversion of 66%, which is slightly lower than our average, but this is actually a positive result for us because we actually invested in working capital in order to increase the loyalty of our key suppliers since we've been in a period of shortage of raw materials. So we try to shorten the DPOs in order to sort of have raw materials in order to keep our sales stable to actually, as you can see, we've actually been able to increase our sales in this period. So -- It was a good strategy, which didn't really affect our free cash flow. And net financial position, it was -- is equal to minus EUR 72.8 million versus minus EUR 83.1 million in 2020 on the pro forma -- for financial year 2020 on a pro forma basis. And if we look at net financial position without the effect of IFRS 16 lease liabilities, it would have been equal to minus EUR 34.2 million. Now we move on to the next few slides where we can see some of the key actions in terms of marketing and commercial activities that we've done in the last month. So as you can -- as you will tell -- be able to tell, we've been working a lot on the sort of Symington's integration and the launch of the NAKED, especially the NAKED brand or the U.K. brand into our reference markets, which are Italy and Germany, especially, but we're also working on the export side of things. So we've been working really hard on these. And we've been able actually to secure already a place for NAKED at the Esselunga supermarket in Italy starting from March 2022. So we'll be able to sell these products in one of the largest supermarkets in Italy, which is Esselunga. At the same time, we've been working on trade presentations, which will go out by the end of November. So we think in the next 2 weeks, our commercial teams will start presenting the NAKED range, both in Italy and in Germany, and we're looking to launch these products. So the whole noodle and rice range, both in Germany and in Italy at the most important retailers in both countries. So we estimate that the launch day would be around end of March, beginning of April 2022. We've also been working on the sort of exports of the existing -- of the pre-existing Newlat's products into the U.K. market. So we've been working especially on the Delverde brand. We are trying to launch -- we will launch actually these products -- this brand into the U.K. market at the top 4 British retailers, and we already secured a place a few days ago with Lidl. We're really excited about this opportunity that we had with the arrival of Symington's actually grow in this market. Update on the baby food contracts. As we mentioned last time, we've actually finally started to produce the commercial products of the baby food contracts. We started at the end of October, beginning of November. And we also have been working on our own baby for range, which is Mukki Bimbo range, which is both powder and liquid milk for babies under the Mukki brand, which is very well known, especially in Tuscany. And it's been doing really well at Coop. I'll show you some pictures later. We also launched the Optimus lactose-free mascarpone. So Optimus is one of top SKUs, top mascarpone brands in Italy. So of course, it was the next step for us to launch a lactose-free product, which has been doing really well. We are also working -- since there has been such an increase in sales in the dairy business, we are working on launch of -- on installing a new production line, which will increase the production capacity for mascarpone and, of course, enable us to even grow further in this market. We're also working on plant-based drinks. So we are launching some new recipes, such as coconut and almond or organic almonds, organic oats, et cetera. So we're trying to enlarge our plant-based presence. Then we also started a new NAKED campaign. We started in also having the campaign shown on buses in London and in Manchester. And we also launched -- we also opened a pop-up shop called Remedy Rooms where -- which was in Shoreditch, London and where people could go and try the products, but also [cleanse yourself] I'll just show you the picture, which is easier to see. So you go here and sort of [cleanse yourself ] from different -- from other noodles that you tried before and actually try the best noodles, which were, of course, NAKED Noodle brand products. It was a really good strategy. It was really -- it drew a lot of attention from local people there, and it was really well accepted. We are also working on the Mug Shot recyclable packaging. So we launched the 100% recyclable packaging for Mug Shot, which is each sachet 5, which is not really easily recyclable. And we're also working, which is more of a thing that hasn't happened yet will happen in the future is we are working on a NAKED premium range, so something that is more premium than NAKED, which is already considered as a premium brand. We're trying to launch an even more premium brand range, which will launch in 2022. Here are some of the pictures that we have done. So these are the buses that have been going around in London and Manchester, some ads that you see. This is the Remedy Room. Here is a picture of the Mukki Bimbo range in stores and also a picture of the Mug Shot recyclable packaging. Now we move on to Slide 6, where we have an update on raw materials, which is quite positive because we have seen the durum wheat prices are starting to stabilize, and we've been able to stabilize our effective raw material costs and renegotiate with clients. And we have also already defined sort of an action for next year in order to ensure a cost pass-through and not suffer from this year's like in sales -- in prices, sorry. And we will also see a benefit from the price increases in Q4 probably. Milk and cream is straightforward. So we've seen quite -- in line with expectation prices. So we haven't had any particular impacts on this side, and we also start to work in strategic procurement plan for 2022 in order not to be unprepared in case something happens. Now moving on to the next slide, which is quite new for us to show, which is our ESG sort of actions and things that we've done in the last months. So in terms of the environment, we've been working on packaging and really trying to improve our packaging. And we switched from the plastic tetra pack -- from that to Tetra Rex Plant Based and rPET packaging. And these will drive down the CO2 emissions of our product. For example, we will only have 19 grams of CO2 equivalent per liter for the Tetra Rex pack. And also, we will reduce around 25% of CO2 emissions on our milk products. We have tried -- we're trying to reduce plastic as much as possible. So we have decreased our plastic utilization by 10%. From 2021, we've been using plant-based packaging, which is only certified with a Carbon Trust - Zero emission certificate. Logistic-wise. We already shared this actually before. We've been trying to transport more by trains instead of trucks, and this has lowered our impact in terms of logistics as well. And we are trying to increase this even this year. If you went on to social, we have some innovation, some things that we've been working on with R&D, such as the launch of the A2 milk, which is a special milk that's naturally more digestible than normal milk, which is basically very good even for people that are lactose intolerant. And we've been working only with farms that are Animal Welfare certified, which is also an interesting thing to mention. And we are working on some plant-based special formulas for Baby Food as well. In communication, we've been working with schools, especially. So we've been allowing schools to visit our plants and also the farms from where we procure our milk. And we give them talks about nutrition and food culture in general. And it's a very well-perceived initiative from schools, especially for younger children. We've been working also with Banco Alimentare and other local charity organizations to manage product surplus. So we've been trying to donate food items that would otherwise go to waste to these services. Moving on to the governance part. We have a look at the Board of Directors. So just a reminder that the Board of Directors has 3 independent members who are Eric Sandrin is the General Counsel of Kering; Valentina Montanari, CFO Ferrovie Nord; and Mariacristina Zoppo the Director and member of the Control Committee of IntesaSanpaolo. We have 3 women on the Board of Directors out of 7 and 4 out of 7 members of the Board are nonfamily members. So they're not linked to the family. So there's actually no prevalence of family on the board. The very last point, which is quite interesting is that we've been working on an ESG committee. So we've been working on it for the last few months. And the committee is being coordinated by a very experienced manager in this field that was working at big4 before. And we also have a 7 managers that are working on this. They all come from different experiences and different expertises such as operations, HR, Finance, Investor Relations, Quality and R&D and Budgeting and Marketing. So we've been really trying to sort of gather all different experiences to really bring something into this committee in order to save our ESG priorities for the next years. Now we move on to the sales breakdown and analysis. On Slide 9, we have the just a very quick comment on the overall revenue. So we're looking, of course, at the pro forma revenues as always. As I mentioned earlier, we had a decrease in sales of 2.2%, and this was impacted by different things. So on one hand, we actually had good -- a very good quarter, as I mentioned, which helped sort of the decline that we saw in previous months to slow down. So in fact we had a good result compared to the last -- the last reporting -- the last report that we published. And in general, we had still an increase in marketing and in-store promotional activities to support this period, which was impacted, of course, by the sort of lifting of COVID restrictions. And again, just saying it's not -- it's actually a good result if we take into account all these different things that came into play in this period. If we look at the consolidated figures, we had a CAGR in the last 3 years of plus 1.8%. So excluding Symington's we actually had a good growth despite all these external factors. Now we move on to Slide 10, where we have the Q3 sales breakdown where you can see actually how we've managed to basically increase our sales in virtually all of our business units, except for Pasta and the Instant Noodles, Symington's businesses. So we actually have an organic growth at Newlat level of 3% and the sort of decrease in the these 2 business units was quite natural because of very good results that we had in Q3 last year, both at Newlat's Pasta level and Instant Noodles and Symington's level. So in Q3 2020, we had the record high sales for pasta in our history of Newlat. So of course, we had a decrease here, but it was not -- it's not huge and it didn't really impact the overall 9 months performance as you will see actually. Pasta grew a bit in the 9 months compared to last year. If we look at Dairy again, we had an extraordinary growth of 44.2%. This again follows the very good performance of the mascarpone business, which we have been trying to invest on even more and to grow in this market even further. And just a quick comment, Symington's, of course -- Symington especially because it's in the U.K. was impacted by the lifting of COVID restrictions because, as you know, probably U.K. is one of the countries in which COVID restrictions were actually lifted. So of course, that has impacted sort of grocery shopping and eating at home or just eating readymade foods to favor sort of restaurant -- eating at restaurants, et cetera. Now we move on to the revenue breakdown by business unit of the whole 9 months. So here, you can see that there is a different sort of breakdown even in terms of sales because now with Symington's -- with Symington's acquisition, we actually have 19% of sales, which account for Symington's. And Pasta is just 23.2% -- 27% and then we have milk products, which are still our biggest business unit, which is [38.24% ] of revenue. So we've sort of had a different weight now because of the acquisition. So the Pasta sales increased slightly in this case, as I already said, increased by 0.6%. And this is mainly due to the increase in sales in Germany, and we had sort of a counterbalance because of the decrease in sales in the B2B business in Italy and decrease in private label sales for the rest of the world. Milk decreased by 5.9% as a result of just lower sales and higher promotional activity versus last year. Bakery products contracted slightly with an actually relevant decrease. Dairy products, as I already mentioned, increased 21.1%. This was both just organic sales volumes increase, but also the acquisition of new clients. So we worked sort of developing our existing market and working with new clients. Special Products remain substantially unchanged versus last year and the Symington's products for the, what is called here Instant Noodles product, decreased by 4.3% as a result of the U.K. market having a lower demand versus last year. If we move on to distribution channels, there was sort of a decrease in most distribution channels. Again, this is a natural effect of scale. So we had a decrease in large-scale distribution of 2.5%, especially for the milk sector in which we work a lot in the large-scale retailers channel. B2B partners also decreased, especially as a result of lower pasta sales. And we have normal trade, which remained quite stable. Then private label decreased slightly as well. And private label, however, now accounts for over 17% of our sales versus before, which was around 8% because of the Symington's acquisition, as you know, they produce quite a lot of private label bakery especially. So just highlighted. And Food Service also decreased by 10.3% as a result of a decrease in the milk sector. Now we move on to the geography side, which is Slide 13. So in terms of geographies, as I mentioned earlier, Germany was the geography that performed the best and it increased 4.6% versus last year. Italy decreased 3.5% as a decrease -- as a result of the decrease of both milk and pasta sales. And also other markets, which are -- which include the U.K. market, decreased by 3.5% as a result of lower sales in the Symington's business, especially. Now we move on to the EBITDA -- the pro forma EBITDA figures by business units -- the breakdown by business unit. So as I already mentioned, there was a slight decrease in EBITDA and also in EBITDA margin, which was 9.6% versus 9.8% last year. The Pasta EBITDA went from EUR 8 million to EUR 7.1 million in 2021. The Milk Products EBITDA was down as well compared to last year and the EBITDA was 9.2%. And the Bakery Products segment actually increased slightly and because of a better mix contribution and the EBITDA margin was 15.6%. Dairy products also increased as a result of the increase in sales volumes and in particular sales volumes of mascarpone. And we had a very good increase also in the EBITDA margin, which was 15.6%. The EBITDA for Special Products remained in line with last year. And the Symington's EBITDA remains pretty much in line with last year. But there was actually an increase in EBITDA margin, which went up to 10.8%. And the last part, which is Other Products. There was sort of not a huge change between last year and this year in terms of other products EBITDA. Now we move on to Slide 15, which is the free cash flow and net financial position improvement slide. So as mentioned earlier, Newlat Food tried to work on its net working capital in order to increase the supply of raw materials by suppliers. And we took the decision to reduce DPOs in order to do so -- in order to improve this raw material procurement . And this allowed us not only to gather raw materials, but we also got better prices because we were paying after. And so there's another point here, which is the Symington's working capital. So of course, the Symington's working capital isn't in line with the usual Newlat Food working capital. So we expect material improvement of Symington's working capital in the next quarters and to have sort of an harmonization of the working capital policy between Newlat and Symington's. And also another thing worth mentioning is that part of the free cash flow has been used to buy back 1.59 million of shares, with a total investment of EUR 7.6 million. And we could consider this as a dividend in shares with around 2.7% of return for each shareholder. So we've been trying to work on a different sort of way to pay back our shareholders instead of giving out dividends. And that's really it for this presentation. So we can open the call for questions. I kindly ask you to ask questions by either unmuting yourself or by sending a message via chat that we'll read and then answer for you.

It's Victoria from SocGen. Can you hear me okay? c Yes.

Yes.

My first question is on the release, your target for EUR 1 billion sales by 2022. You seem quite confident that you're going to add over EUR 300 million of sales. Is this because you've got 1 or a number of deals in the pipeline that you're confident of closing? And if so, can you be specific about whether it is one large deal or a number of smaller deals. And I guess also related to that, based on sort of previous transactions and assuming EBITDA of around maybe 10% on average for acquisition seemingly high pro forma net debt EBITDA getting to 2.5x by the end of the year. Does that sound logical to you? And then maybe I have just a couple more actually. I also just wanted to ask how the Symington's integration has been going over the last few months. And if you're able to sort of talk about what already been achieved and sort of remind us of the profitability outlook impacts of the integration just in terms of cost savings plans. And then actually one more, sorry, can we just confirm what you paid for Symington's EUR 60 million equity, but did you adopt their debt? Or was there none other company when you bought it?

So I'll get the first question related to our confidence about the EUR 1 billion revenues in 2022 as a target of M&A, obviously. I think that we have today on the table several potential deals. There is one among the others that is enough blown to get this target. We are going on that with this deal. I think that for what we have on the table at the moment, this could be a deal for the Q1 of next year. But obviously, we are not alone doing this because probably, in this case, we already closed this deal. We need to wait because the counterpart is an important multinational corporation, and we need to wait at the end of the internal process of the counterpart, but we are very confident about this. And apart this one, as I said before, we are always looking at other dossier for other potential deals, in this case, a bit smaller than this one specifically. On this basis, we are absolutely confident to get this target next year. About the level of net debt EBITDA, I think that part of the increase -- a material part of the increase of debt is related to IFRS 16. It's not a financial net debt despite that considering a conservative progression of the EBITDA for the end of the year, we will be very close to 1x, 1.2x. That is a level that also considering the cash flow generation of the company it's something that continues to allow us to be very flexible on the financial side. In this sense, I think that could be worth to -- to highlight a couple of things considering the free cash flow generation of the first 9 months in the sense that this is an exceptional situation for us to have this negative contributions coming from the working capital, but we already anticipated at the beginning of the year that in case we would like to use the cash available to try to get maybe better price and to improve the loyalty with our supplier. And this is absolutely what happened and in particular in Q3 because especially for durum wheat. There is -- there was a material shortage of raw material, and we need to try to negotiate a better days of payable outstanding to get a better substantial loyalty of supplier and also to negotiate better prices considering the spike that you saw that you read on all the newspaper that impacted all the raw materials. I have to say also on the packaging side. But in particular, durum wheat. And we use this flexibility to maximize substantially our return in this difficult situation but our expectation is to come back to a normal trend of working capital already in the coming months. And in particular, it's important to highlight that also on the Symington's side, we are working to try to create the same -- the similar harmonization that you saw last year after the acquisition of CLI. Also in that case, after a couple of quarters, we have been able to align the working capital policy to the one we have in Newlat Food. In this sense, I think that our capability in terms of cash flow generation remain unchanged. And the net debt EBITDA level is not something that would be seen as an issue or something that could reduce the financial flexibility we have. In terms of Symington integration, as we said in the press release, we have been really able to eliminate other emergencies in the past months, renegotiate immediately new prices with our clients, and being able substantially to complete the pass-through and to face successfully this particular negative situation in terms of raw material inflation. This means that we are fully focused today on Symington integration to try to develop synergies in 2 ways. One is the cost way and then we can confirm what we anticipated at the date of the announcement of the deal, this EUR 10 million of cost synergies, but also on the commercial side, Benedetta also anticipated in the presentation, the fact that we already got interesting listing in Italy in Esselunga for NAKED in U.K., in Lidl for Delverde. And this is the way in which we are working to try to maximize the interaction of the 2 companies. And we are really confident that 2022 will be a very interesting years -- a year also for Symington. About the acquisition price, yes, I can confirm you that we pay EUR 63 million.

And there was no debt, sorry, when you bought it?

No debt.

Dario Michi, Exane BNP Paribas. I have a couple of questions. The first one is on the press article we saw a couple of days ago on the increase in prices on the milk side. It said an increase has been agreed at the government level, which entails both the mass distributors and the transformation company to pay a sort of emergency tax to the farmers. Can you please comment on this? And then the second question is on the competitive landscape at the moment, which is the role the private label is playing at the moment. And lastly, if you could give us an update on the spare capacity at the moment and the potential benefits related to an increase in the operating leverage?

About the milk price, generally speaking, I have to say that we don't have any kind of material issue on this point because you know that we already negotiated a fixed price for the midterm. As the Chairman anticipated during the previous conference call for the first half results, we are anyway negotiating with our clients to try to get an improvement in price and to try to help our supplier in this sense, so to try to do a contrary pass-through because we think that is company responsibility also to be close to all the stakeholders of the company and the suppliers are part of these and suppliers are very important and strategic for our company. In this sense, we are doing negotiation with our client, but differently than the semolina, durum wheat case. For milk, we don't have particular pressure because we are managing very well at the moment, our supply chain. I think also that it's important to highlight the fact that our brands, especially in milk are all reasonable brands with a very high level of market share. In Tuscany, we are about 50% -- 55% of market share. In Piedmont about 30%. In Campania is another region in which we are a market leader because we cover with 2 important brands, the 2 most important province inside the regions. This means that in case we have pricing power to do negotiation with our client, and we are not under pressure in this sense on the milk side. In terms of the competitive landscape, I think that especially in this particular situation in which -- there is this particular increase of raw materials everywhere, not only agriculture raw material, but also speaking about packaging, we are and all the players are experiencing increase. I think that this situation is something that puts more pressure on the private label side because private label to be competitive -- need to be at very discount versus the branded product. And I think that this is a scenario in which the companies like Newlat that owns important brands, regional brands or also national brands with a strong loyalty from the consumer, I think that could get some advantage in this case.

May I ask a few questions. So my first question is about the tone of Mr. Mastrolia's statement in the press release, which seemed quite positive mentioning in particular, good trend in October. So I was wondering if you can give us a bit more colors on that. So what you are seeing -- we have been seeing in the last few weeks whether this is already benefiting from price hikes actually? And in relation to that, what kind of trend were you referring to in the sense that I'm wondering whether -- with price hikes are you experiencing any consolidation in volumes or any potential trade down which might mitigate the benefit of price hikes at current level. And also, if you can comment on profitability for the fourth quarter given the price hikes we are implementing for durum wheat? My second question is about the Dairy business. You commented the strength of this segment, mentioning also some new products. I was wondering whether we should bear in mind kind of concentration of buying in this quarter because of these new contracts starting and maybe should we expect this segment to normalize a bit in the following months. And further question on Symington's because you have mentioned a bit of normalization of the trend with lifting of restrictions. I was wondering if you can give us an idea of where -- Symington's revenues is where in 2019 just to have normalized the reference and so what we can expect for the fourth quarter here?

Thank you, Paola. May I can start answering to the other question. And about the dairy business, probably Giuseppe could give you on the mascarpone side a better picture of our success not only in Italy but also outside with this particular product. In terms of the organic trend that our Chairman mentioned in his statement that this is a general indication about the group and he's referring to the volume trend in the sense that after what we experienced -- what we have seen in Q3, also the beginning of Q4, continue to give us confidence about the volume rebound versus the first half. We are achieving growth. And on top of this, you have to consider that in Q4, we will have the first contribution from the price increase that we put in place in August and in September. This means that we are absolutely confident to achieve another quarter of growth for the latest 3 months of the year. In this sense, we don't want to guide about the profitability. What we can say is that what we substantially described to the market during the first half presentation. So the fact that despite the pressure on the raw material side, we will be able to maintain the profitability in line with last year and also to drive a recovery in terms of revenues to match at least what we reported last year. I can tell you that especially on the basis of Q3, this target is confirmed. And we are absolutely confident on that. We don't want to enter in details of profitability because I think that in this particular situation of the market probably is better to avoid to guide a precise number, a precise level of market because you know that maybe tomorrow, we could face another unexpected external situation, and we don't want to have numbers to manage. What we can do is to confirm what we told during the presentation of the first half. About the Symington's trends, we have to say that -- it's important to highlight and to remember, apart from the trend that you saw in the reporting today that when we announced the acquisition of Symington, we presented Symington as a company of GBP 100 million -- GBP 105 million of revenues and with an EBITDA around GBP 8.5 million. This is a normalized level on which we substantially negotiated during the deal. And this, obviously, is something different than the reported figures in 2020 because 2020 was for Symington a year materially impacted by the extraordinary contributions from COVID. If we consider this level of revenues, that is a level that is substantially also in line with 2019. I have to say that the company is -- all in all, on the organic -- in the organic terms, also a bit positive versus the 2019 level. But the reason why we reported today this mid-single-digit negative trend is because this is -- versus a comparison base that is materially impacted by the COVID impact. In 2020, the company reported -- obviously, this is another attention that you have to do. The company before was closing the fiscal year in August 2020 closed with GBP 120 million. And this, I think, that could give you a better understanding about how the 2020 was extraordinary for this company. And this is the reason why also we announced the acquisition, speaking about 105 million revenues because this is the normalized level of the company, and we are absolutely in line with this. But what is important for Symington is that considering apart from the organic trend related to the normal business of the company, we are really, really confident and also excited about the strong opportunity that we have for this product in Italy, in Germany, the opportunity we have for newer products in U.K., as we mentioned, we already get -- we already got the first listing in Lidl for the Delverde and we are negotiating with other retailers. I think that the potentials of Symington are really exclusive and we are really excited to continue this integration process.

Yes. So maybe Fabio, thanks for all the explanation. There was a question concerning the Dairy right. Paola, you were asking about our increase in sales concerning in the Diary. So what I can tell is that the consumption of mascarpone is increasing on -- in different channels. We are planning to gain all the opportunity that we get in different channels is increasing on the retail. The consumer channel for the hours usage is increasing within the industrial usage. So B2B, and we are a producer of mascarpone and [ricotta]. So for this kind of usage, and we are increasing our exports. We are focusing our strength in the last months. We are developing more sales in North America. We developed more sales in China, Japan, South Korea, in Europe in c and France. And we gained a new opportunity in the U.K. and in Italy. We gained into customers that are the 2 biggest retailers, one is Esselunga with our brand Optimus and the other one is [Gruppo Selex] with their own brand. And so it's the path is increasing much more new to 2 factors. One is that the quality that we can give to them is very, very good and really appreciated quality. And that, of course, the consumption, as I told you, is increasing year-on-year so much. And last but not least, the commercial sales, again, my team is doing a really great job. They're really focused and working so hard to get new customers. So it's even dependent on the team commitment.

I want to add just 1 thing to try to transfer -- to fully transfer you. Why we are so exciting thinking about the Symington integration and the Symington development. During this week, we discovered, for example, analyzing the concept plant of Symington and [indiscernible] particular, analyzing this plant. We discovered that we have an important line that is today fully unutilized that is ready to produce dessert. And in this sense, what we have on the table today is to try quickly to start to produce using our mascarpone, Tiramisu directly in concept to be sold in the U.K. Also considering the fact that Tiramisu is one of he most sought dessert in the world. And this is an example of the strong potential that we are finding every day something new in Symington. And the reason why we are so confident about this integration.

I may add. Can you give us an example of how your NAKED Noodles will be positioned in terms of pricing?