Robertet S.A.

Operator : Good day, and thank you for standing by. Welcome to the Robertet first half 2026 results conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, please press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please note that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. Jérôme Bruhat, CEO. Please go ahead. Jérôme Bruhat : Thank you very much, and welcome to everyone for this first half 2026 results of Robertet. I am Jérôme Bruhat, I am the CEO of Robertet, and I am joined today on this webcast by Julien Maubert, who is the Head of our Fragrance Division and Chief Sustainability Officer, and by Isabelle Pardies, our Chief Financial Officer, as well as Matthieu Lugez, who is our Investor Relations and Coordinator of M&A. Julien and I will begin with the key commercial development and business performance for the first half of the year. Isabelle will then present the financial results in more detail, and after that, Julien will return to share our progress and commitment in sustainability. I will conclude with the outlook for the rest of the year and a reminder of our long-term ambitions. Let us turn to the key highlights of the first half. First, Robertet delivered a solid performance in a quite moderate market environment. Organic growth reached 2.8% despite adverse currency effects and contrasting trends across our divisions. Namely, the Fragrance division continued its strong dynamic, supported by niche brands and new market players, while the Health and Beauty division maintained a quite solid double-digit growth. At the same time, Raw Materials and Flavors faced a more challenging environment and quite demanding comparison basis, with a very strong first half 2025. Profitability remained at a high level with a recurring EBITDA margin of 21.1% of the sales, while we continued investing in our industrial capacity, our commercial capabilities, our technology platforms in order to support future growth. Finally, sustainability remained a key differentiator for the group as a world leader of natural ingredients for fragrance and flavors. It is very important for us, and we have received for the third year in a row the EcoVadis Platinum recognition, while our notes continue to progress and our efforts towards climate and responsible sourcing continue to be at a very high level. Turning to our sales and our consolidated revenues. You have here the split between our sources of growth. Our revenue reached EUR 444 million in the first half 2026, representing a slight decline of 0.5%. That is just a very strong first half 2025. However, our organic growth remained positive at 2.8%. Organic growth reached 4.9% in the first quarter and 0.7% in the second quarter, reflecting, as I said before, a more moderate market environment as the semester progressed. Currency effects reduced our reported growth by 3 percentage points, which is very high, mainly due to the strengthening of the euro against most of the group's currencies, especially the U.S. dollar. Scope effects were slightly negative as well. Let me now hand over to Julien, who will comment on our business performance by division and by region. Julien Maubert : Hello, everyone. Turning to slide five, which show the revenue by division. Raw Material recorded an organic decline of 5.5%, reflecting a more demanding market environment and a particularly high comparison base after several years of strong growth. The project pipeline nevertheless remained supportive. Fragrance continued its momentum with organic growth of +12.6%, especially driven by niche fine fragrance brands, emerging players, and strong momentum in Latin America and in the East. Flavors posted an organic decline of 1.7% in the softer market environment, but has demonstrated resilience, thanks to sustained demand for natural value-added solutions. Finally, Health and Beauty delivered organic growth of +11.3%, benefiting from market expansion initiatives and a strengthened scientific and commercial capability. If we look at our regional breakdown on slide six, our geographical mix remained very balanced. EMEA and North America, which together represent almost three-quarters of group sales, remained broadly stable in a more cautious environment. Latin America continued to deliver outstanding growth of +21%, supported notably by Brazil, where we recently opened a new creation center in São Paulo. Asia grew by +12%, benefiting from a ramp-up of our Indonesian facility and continued strong momentum in India, particularly in Flavors. These regions remain key source of growth and support a long-term international expansion strategy. With that, let me hand it over to Isabelle, who will comment on the financial performance in more detail. Isabelle Pardies : Good morning, everyone. Turning now to slide seven with the review of the income statement. First, gross profit margin improved by 50 basis points, reflecting a favorable product mix with strong contribution from fragrance. Recurring EBITDA reached EUR 94 million, representing a margin of 21.1%. While below the exceptionally high level achieved in H1 2025, profitability remained at a historically strong level. The year-on-year decrease mainly reflects continued investment in industrial capabilities, scientific and commercial teams, and information systems to support future growth. Operating income reached EUR 75 million. Its evolution also reflects higher depreciation charges associated with industrial investment and commercial expansion initiatives implanted over recent years. Finally, lower financing costs and less adverse FX effect supported the financial result, resulting in a group share of net income of EUR 54 million. Turning to slide eight and cash flow generation. Cash flow generation remained sound in the first half. Working capital evolution mainly reflected higher inventories and continued support for business growth. Despite lower recurring EBITDA, operating cash flow increased to EUR 40 million compared with EUR 32 million in H1 2025, mainly benefiting from lower tax payments as we came back to a more normalized level. Despite maintaining a significant level of industrial investment of EUR 18 million and financial investment of EUR 6 million, free cash flow remained positive at EUR 12.15 million. Our balance sheet remains very solid, with group equity reaching EUR 647 million at the end of June. With that, let me now hand over to Julien, who will comment the sustainability performance. Julien Maubert : Thank you, Isabelle. Turning to slide nine. Sustainability remains at the heart of Robertet's strategy, and we continue to strengthen both our commitment and our performance in this area. Let me highlight two key points on this slide. First of all, we reached 67 CSR-verified or certified supply chain as of the year-end 2025. Please note that that figure is only updated and audited at year-end. We can share that since January 2026, we have also obtained a new certification such as Fair for Life on our Rose Damascena supply chain in Bulgaria. As the leader in natural ingredients, we are also the leader in the number of supply chain in the industry. Second, our recognition by EcoVadis. We maintain the EcoVadis Platinum status with an improved score of 89 out of 100, placing Robertet among the top 1% of company assets globally. Together, these results show that sustainability is not just responsibility for us, it is also a result driver of trust, growth, and differentiation. Let me hand it back to Jérôme for the outlook and the closing remarks. Jérôme Bruhat : Thank you, Julien. Now turning to slide 11, with the outlook of 2026. As we saw, we are navigating this year a more moderate environment, especially in the mature market, while we continue to invest in our future and remain very confident in our future. This year, given the first half and given the perspective of the second half, we will target an organic growth of between +3% and +5% for the full-year. The key trends that we expect in the second half is first to continue the strong momentum in fragrances, the momentum in key growth regions, as we saw before, especially Latin America, Middle East, and Asia. We continue to see a resilient profitability, with an EBITDA above 21%, despite continued investment efforts, but compensated by disciplined cost management. We have taken pricing action to mitigate higher petroleum-derived raw material costs, especially for the second half. We have always proven that we could react to U.S. tariff changes through different customer pricing, and we expect easing foreign exchange headwinds to favor our published turnover, and the gap between published and organic will reduce. For the long-term, coming to slide 12, we continue to see big opportunities in our future and long-term potential of the group. Our Seed to Success 2030, which was planned last year, continues to guide us. To set a clear ambition, we want to reach between EUR 1.1 billion and EUR 1.2 billion by 2030. This implies an annual average growth of 5%-7% between 2025 and 2030. That includes EUR 50 million to EUR 80 million of revenues from targeted acquisitions over this period. With these drivers, combined with Robertet's unique vertically integrated model and leadership in natural ingredients, we are confident in our ability to deliver sustainable, profitable growth over the long-term. Thank you for your attention, and we can now open the Q&A. Operator : Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Once again, please press star one one to ask a question. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. This will take a few moments. Thank you. Once again, please press star one one to ask a question. We are now going to proceed with our first question. The question has come from the line of Gabriele Bunyte from Davy Stockbrokers. Please ask your question, Stockbrokers. Thank you. Gabriele Bunyte : Hi, good morning. Thanks for taking the question. My first question is on your investment fund. You have attributed your underperformance to investment property attached information. Jérôme Bruhat : Sorry, we cannot understand. I am sorry, we cannot hear you correctly. We cannot Gabriele Bunyte : Can you hear me now? Jérôme Bruhat : No. Julien Maubert : Not very well. Jérôme Bruhat : Can you please try, Gabriele? Gabriele Bunyte : Can you hear me now? Julien Maubert : Very little. Sorry. Can you please speak closer to the mic? Gabriele Bunyte : Can you hear me now? Jérôme Bruhat : No, it is difficult. It is very difficult. Your voice seems very far away from us. If you could possibly write your question down, and we will answer it gladly. Gabriele Bunyte : Okay. Thank you. Operator : We are now going to proceed with our next question. The next question has come from the line of Joan Lim from BNP Paribas. Please ask your question. Your line is open. Joan Lim : Morning, everyone. Can you hear me clearly? Jérôme Bruhat : Yes. Yes. Very clearly. Joan Lim : Perfect. I have two questions, please. First question is, why did you decide to change your top-line guidance now? Why not when you first reported in July? Has there been a change between July and September? If so, which division is it driven by? That is the first question. The second question is, it would be helpful if you could provide some color as to what drove the slowdown in flavors and raw materials in the first half. How should we think about the second half of the year? Because I think comps are a bit easier, but not significantly easier. It would be quite helpful to understand what to think for the second half. Thank you. Jérôme Bruhat : Yeah. Thank you very much, Joan. On your first question, we slightly adjusted our top-line target versus July because after the closing of the first half, we ran an internal forecasting process in order to have a clearer view of the different countries. After this process, knowing the year to go will be between +4.7% and +7%, we wanted to give this guidance after having checked with our countries what they were feeling and seeing for the second half. As you know, we always have limited visibility on our clients' intentions, so we rely a lot on the ground, basically, which are the countries seeing the pipeline of projects and seeing the client evolution. Again, we have a clearer view now than we had in July. That is the first question. The second question is how can we think about flavors and raw materials? First, they were the divisions driving an exceptionally strong growth in the first half last year, if you recall, with double-digit growth in both divisions. Both were growing in H1 2026 with a very strong historical, driven by exceptional orders in raw materials and very strong wins and new wins, new commercial conquest in 2025 that did not repeat at the same level in 2026 for the first half. Nevertheless, we continue to see a baseline business which is quite strong and makes us feel that we will see in the second half, an easier comparative and a continuous and strong flow of business on both divisions. Joan Lim : Thank you. Can I just clarify then that it is not driven by any significant change in the markets or any differences that you are seeing in the market post July, it is just you are trying to be more conservative? Jérôme Bruhat : More accurate, basically. We try to be more accurate. We had targeted around 5%. We feel we will be on the lower range of what we had targeted at the beginning of the year. First, to acknowledge the first half, and second, to reflect what countries have forecasted for the rest of the year with a bit more visibility, post closing first half than we had in July. Nothing major has changed in the market to answer clearly your question. Joan Lim : Okay. Right. It is fair to assume that the second half will be better than the first half, just driven by easier comps? Jérôme Bruhat : Easier comparatives and a strong baseline that continues to be there. Just the, I would say the bumps when you have big wins in a certain period, who are just difficult to absorb in the first half, and there are no such big events in the second half that we need to take account of. Joan Lim : Okay. Very helpful. Thank you. Operator : We are now going to proceed with our next question. The question comes from the line of Thomas Renaud from Kepler Cheuvreux. Please ask your question. Thomas Renaud : Hello. Can you hear me? Jérôme Bruhat : Yes, very well. Hello, Thomas. Thomas Renaud : Yes. Thank you for the presentation. I have three questions. The first one on growth for H2. At the midpoint of your updated guidance, it implies a 5% like-for-like growth in H2. Could you share with us the contribution maybe of volume versus prices? This is the first question. The second one is about your midterm targets. So 2026 should be below the base implied by your midterm target. Do you expect any, let's say, catch-up effect in 2027? The last one, could you maybe update us on potential new developments on the M&A side? Thank you. Jérôme Bruhat : Thank you. On the first question, pricing versus volume, we do not track that, and we never separate both. First, because the diversity of our activities makes the analysis extremely meaningless, or at least not very relevant for us, because the profile, for example, of the ingredients division can vary quite dramatically from one year to the other, depending on the raw material. That can be sometimes big volumes, sometimes small volumes at high price. So it is very hard to predict. Again, we have very, very little visibility from our customers. Second, same thing for flavors and fragrances, where the profile of our products and divisions is too diverse to draw conclusions. This last year was really volume driven. What I can tell you is, obviously, since we have adjusted our prices, to follow the oil shock, basically, that we have to reflect in our pricing. We have made some price increases in all our divisions that should reflect a more pricing effect in the second half than volume effect. To give you precise numbers, it is very hard, but definitely the second half will be a bit more pricing driven than volume driven. For the midterm, yes, to answer the question, Robertet as an independent family business is always here to work more long-term objectives than short-term objectives. Clearly, we were in organic numbers. We were above target in the past two years. We are slightly below target this year, but on average, we remain confident that we will be in this 5%-7% organic growth, plus M&A that should enrich the growth. Which brings me to your last question. Yes, the M&A for the moment is quite silent because we have a very disciplined approach to M&A. First, these are targeted M&A, no big transformative M&A to expect at this stage. We are always looking at the relevant targets, but we want to pay them the right price. As you know, our sweet spots are companies between EUR 15 million-EUR 50 million sales. In this bracket, all the targets that we have seen were either too expensive with a lot of competition from financial investors or had operational problems that we did not want to carry on. So we have remained very active in the search, but unfortunately not very conclusive in the buying because of those two issues, operability and reasonable investments, which were not met. But definitely, the arrival of Matthieu Lugez, who is both our Investor Relations and our Director of M&A, will dynamize the search. We rely on a lot of field network. Our people on the ground meet all those small size companies that could be targeted. Nevertheless, we do not pretend that we saw them all. I think Matthieu will make sure that we have a network on the field, but also of financial partners to make sure we screen every possible target in order to give a new dynamic to our M&A effort to be expected in the coming months as Matthieu takes his ownership of the search. Thomas Renaud : Okay. Thank you. Very clear. Just a follow-up on the M&A. Do you still see a, let us say, high valuation environment, especially in the U.S.? You mentioned that during the full-year results last March. Is it still the case? Jérôme Bruhat : It is still the case, unfortunately for us. in a few targets in the U.S., which were between 16x and 20x the EBITDA, and we won't pay that kind of price. Thomas Renaud : Okay Very clear. Thank you. Thank you very much. Operator : As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Once again, it's star one one to ask a question. We are now going to proceed with our next question. The question comes from the line of Beltrán Palazuelo from DLTV Europe. Please ask your question. Beltrán Palazuelo : Hello. Good morning. Thank you for taking my question. Jérôme Bruhat : Good morning. Beltrán Palazuelo : The first question is regarding the margins. You were commenting that you have adjusted your pricing. What should we expect for the second half, more or less, in margins? Then maybe from 2027 to end of the plan, more or less, I know this company thinks in the long-term, but what should, let's say, the end margin be around 2030? My second question is regarding CapEx. With the 5%, let's say, organic growth that you're estimating, what should be the organic CapEx, more or less, to the end of the plan? My other question is, let's say if you could, let's say update what is, let's say, apart from the current dividend policies in, let's say that you were talking about the extreme high evaluations for M&A, then we can see how not only yourself, but also the sector has come down. Is the buyback in the tool for, let's say, the capital budgeting? My last question is regarding competitive landscape. If you could update everybody on how you see, let's say, your strength, competitive advantage, how is it evolving against competitors? Thank you very much. Jérôme Bruhat : Thank you very much. First question about the margins. We do not update any margin guidance during the year. What we said, and we confirm today, is we said that because of the rise of raw materials cost linked to the oil shock, we expect the margin to be a bit more difficult this year than it was last year. We have strong headwinds in terms of synthetic raw materials that we all buy outside. We have different costs that have risen because of the oil shock. That is why we said, and we confirm that we want to be this year in an EBITDA margin in line with the three past year average. That remains our goal and our target. On one hand, those adverse effects, on the other hand, those pricing adjustments should absorb, at least partially, those shocks. That is why we remain quite confident that we can meet our EBITDA margin in line with the past year. Our guidance long-term remains to be above 20%. That is what we announced at the CMD. We are definitely above last year and this first half. But again, we expect this to soften a bit in the second half in order to be in line in the total year with the past three years. On your second question on the CapEx, we have guided also that we need to invest in our future. We need to invest between 4% and 5% of our sales in CapEx. I would say ongoing investment in the industry, stronger investment in IT that have started more or less in end of 2024. And some, I would say, customer-facing investments, creative centers, as we said before, in order to give ourselves a stronger footprint in the new regions of growth that we are targeting. The last example is a good example with the opening of a creative center in Brazil, where our business is flourishing, and we need to conquer even more customers. But that is true also for Singapore, for Mexico, and a few others that are guiding a bit of CapEx. But again, we will be extremely disciplined this year to make sure that we remain within this bracket and that we do not overstretch our CapEx investments above this 5% gap that we have. Below 4% would be for us missing some investment opportunities. Again, we are a very profitable business, and we believe we can continue to invest, but in a disciplined way. We have opened last year a new factory in Indonesia, and we can see the first effect on this region, which is very dynamic. We are expanding, as we speak, our unit in Mexico. We are investing steadily in our big and older units in Grasse and in the U.S. We will also invest in the coming months in China, where we see a huge potential for our naturals. That is why we need this investment. But again, within this bracket of 4%-5%. Your third question is on the dividends and buybacks. As you could see from last year, we have a policy of increasing, step-by-step, our dividend payouts. Also, we are, again, privileging and prioritizing our long-term investments. But still, we believe there is some room to grow the dividend payout in, I would say, in a steady way, as you could see from last year. There is no plan of buyback at the end of the year and in the years to come. It is not something that we have in mind. We prefer to invest where we can in our capabilities. To your last point on competitive advantage, obviously, we are on the right segment, and we are pretty happy that the naturals segment is seen by everyone as a very good segment to be in, very promising in terms of growth, higher than the market average. That is why we have a plan 2030 above the market average. It is true that being a very strong segment, some competitors are a bit more active in this segment. We continue to see our clear advantage to continue to build new supply chains, to be one step ahead in terms of the broadness of our catalog, the quality of our products, and we are going global. What we used to be mostly in Europe is now going global. We have expanded some capacities to produce and to extract naturals in the U.S. with the Sedex acquisition. We are building new capabilities here, as I said just a bit earlier in China. So we are seeing our advantage to, at the same time, be in the center of a hot segment, which is the natural, and on the other hand, to continue to build on our unique know-how and stronger international footprint. Beltrán Palazuelo : Thank you very much for the detailed answer. Jérôme Bruhat : You are welcome. Thank you. Operator : We are now going to proceed with our next question. The question comes from the line of Marie-Line Fort from Bernstein. Please ask your question. Marie-Line Fort : Yes, good morning. Can you hear me? Jérôme Bruhat : Yes. Good morning. Marie-Line Fort : Yeah, okay. Good morning. My first question is to clarify what you said about the margin guidance. I had in mind that you were targeting EBIT margin in line with the past three years. Is it correct, or is it more on the EBITDA level? First question. Second question is about raw material costs. Could you tell us how they expect to evolve going forward? In particular, has this summer droughts increased the risk of potential shortage and potential price increase? Last question is about the Flavor division. In the past, your strong performance was driven in part by the rapid growth of the beverage business. Are you now seeing any signs of this market reaching a certain level of maturity, and have you other relay of growth for the next structure? Jérôme Bruhat : Yeah, thank you. First, to answer clearly the first question, yes, I would not call it guidance, but we are targeting because, again, it's very hard to guide, and we don't guide on EBITDA, but we have said at the beginning of the year that we were targeting an EBIT in line with the past three years. That's at the EBITDA level, not at the margin level. It is obviously a message that, and we said it from the beginning, that EBITDA last year was absolutely record with exceptionally good buying conditions that unfortunately are not repeating this year. Nevertheless, the basis is still very strong, and we believe that we can remain on our trajectory. Again, we have now a strong level over the past three years that we are confident to maintain this year. Our target long-term 2030, announced above 20%, remains the target for the many reasons we explained. Your question on raw material costs, no major threat. Again, the only big threat we see is the synthetic materials will be affected by the oil price. On the other hand, the other materials are in line with the previous year. Again, each year we have up and down in the naturals. Sometimes the coffee goes up, sometimes it goes down. Sometimes the patchouli goes up, sometimes it goes down. It's really a mixed bag, but no major effect we expect on naturals, which is more than half of our purchasing. On that token, the summer drought didn't affect our botanicals. No effect to be expected on pricing. The pricing volatility these days comes more from oil-based products than from earth-based products. That's why this natural half is going to be more or less stable, while this synthetic half that we have to buy outside will probably be a little bit more affected. Your last question on flavors. Yes, it's mostly based on a good dynamic in our ability to win new products that has driven fantastic growth last year. Again, flavor of last year was above 10% growth, which was largely over the industry. This year it's a little bit softer, slightly negative in the first half, but we remain quite confident that we will catch up at least partially for the rest of the year. Beverage is clearly where our naturals express themselves the best, and that's why we are so exposed. This category, I would not call it mature, but some parts of this category are a little bit softer this year, especially the alcoholic half, which is softer. The rest remains quite strong. We have new relays of growth. We see, for example, in dairy, a quite good dynamic with some major clients. As we all know, the functional food is going up, and this opens doors in some sports drinks, some dairy products where we are quite strong in and where we are working on. We've set up a new organization last year with a category manager, one obviously for beverage, which is our biggest footprint, but another one in dairy and another one in more savory products, where we are quite smaller than in the beverage. We clearly expect some relays of growth in those categories where historically we have not been very present. Marie-Line Fort : Thank you very much. Jérôme Bruhat : [Inaudible] Operator : The questions come from the line of Drew Flowers of [First Summit Capital]. Please ask your question. Drew Flowers : Hi. As a shareholder, I really appreciate your discipline on M&A valuations. But given where your stock's trading, which is far below even the discipline prices that you pay, wouldn't a buyback of, say, EUR 20 million a year be a great use of capital? Your business is obviously one of the premier flavors and fragrances businesses around the world. Jérôme Bruhat : Yeah, thank you for the question. Again, we know buyback is always an option, but again, we consider the trading today a bit of a dip, and we don't consider our long-term level belongs there. And for now, and until now, the company has always privileged investment. So a buyback, as I said in my first comment, is not something we are considering in the short-term. Operator : We are now going to proceed with our next question. The question comes from the line of Joan Lim from BNP Paribas. Please ask your question. Joan Lim : Hello. Sorry, I've just got a follow-up question. In fragrances, did you see any pre-buying in consumer fragrances? I think some of your peers had mentioned there might have been some. Excluding that rebound from the customer de-stocking last year, what was the underlying performance of the fragrance division? Maybe also just to follow up on the flavors questions before, has Robertet benefited from this shift, these regulatory changes away from synthetic ingredients in the U.S., because I think your portfolio is actually quite well-positioned. So trying to get a sense of how much that's benefited your results so far and going forward, how does the pipeline look like? Thank you. Jérôme Bruhat : Thank you, Joan. I will let Julien tell on fragrance. Julien Maubert : Thank you, Joan. We didn't see any real pre-buy effect overall. It might be very spotted, but that's not a trend that we have seen at Robertet. As we described, the performance is mostly coming from some fine fragrance brands, and especially some of the emerging brands, what we like to call the rising stars, that have been very successful lately, especially in North America, Latin America, and Middle East, that really drive the growth. Then, to link it back to your last question, we see a premiumization effect that is benefiting Robertet, and that's where I think our position in natural products, in our creativity, I think allow us to have a good momentum and be dynamic across categories when brands and where products are looking for premiumization and kind of elevation of more creative formula, more emotional effect, more rituals product. That's true across all the consumer categories. We kind of use the fine fragrance standard, but also in personal care, in home care, and in fabric care. I think we are benefiting from it. Joan Lim : All right. Thank you. On flavors? Jérôme Bruhat : Yes. On the I think Julien is absolutely right, that really the premiumization of the segment and the number of brands is continuing to be carrying a lot of momentum. So that's where, first, the fine fragrance, which everybody expected at some point to slow down, continues to be dynamic, strongly dynamic. Second, the premiumization comes in new segments, which opens the door to new brands in other categories than fine fragrance. We can see that in some regions very clearly, especially the U.S.. On flavor, to your point, we haven't seen a big change and big demand for naturals coming from the regulatory change. Obviously, we would love to, but the honest answer is, we expect the naturals to be a strong underlying trend, but not a direct and reactive statement, I would say, to the new regulatory condition. Those conditions have affected quite strongly the colorants, but not yet strongly the flavors business. Joan Lim : Okay. Thank you. Jérôme Bruhat : You are welcome. Operator : Thank you. We are now going to proceed with our next question. The question has come from the line of Gabriele Bunyte from Davy Stockbrokers. Please ask your question. Your line is open. Gabriele Bunyte : Hi. Good morning. Can you hear me now? Jérôme Bruhat : Yeah. We still do not hear you, but thank you for writing your question. We will answer then. For the whole attendants, I will just speak out your question. Your first question was, as EBITDA decline was attributed to investment in capacity, headcount, and systems, can you help us understand the fading of that spend? Is much of the H1 increase already in the run-rate, and should we expect a similar level of incremental investment in H2 and also going into full-year 2027? We need to differentiate two things. The EBITDA decline is only attributable to a softer top-line and, I would say, a disciplined run-rate of OpEx costs, namely personnel costs and external charges that have continued to run and indeed, the margin at this point are very well protected. But the costs are running in order to keep investment, especially investment in IT and investment in new capacity. The other topic is more the CapEx, which does not really reflect or does not only reflect in the EBITDA, but you are right. Part of it is amortization, and part of it is attributable to this run-rate of CapEx that we keep between 4% and 5%. But as most of those CapEx last year happened in the second half, we are a bit strongly impacted this year. But you should not expect something very different on the full-year than this ongoing run-rate, where the projects are running. Again, we are quite confident in our future, and that is why we continue to invest at the defined pace to increase capacity, increase international footprint, and modernize parts of the company. Your second question is, with fragrance returning to strong growth in the first half, have those trends continued through July and August? Have you seen growth-based strength across customer categories and geographies, or is growth being driven by your smaller number of accounts? Here again, as we have with us, Julien, who is the Head of fragrance, I will let him give you some more detailed answer. Julien Maubert : Yes. We have seen the trend continue, and we are positive on the momentum and the dynamic of the first half, and that should continue for the second half. Regarding the customer category and the geography, I think I answered it partially, but I will repeat myself a little bit. Yeah, there is a stronger dynamic in fine fragrance, but overall, all category for us are dynamic, and especially when we talk about premiumization, we are seeing a very good success rate. Geographically, once again, Europe, Latin America, and Middle East are very dynamic. Europe remains good and Asia remains a little bit more dynamic for us than the rest of the world. Overall, the trend is really good. The dynamic is good. Sorry, the last part of the question about smaller accounts, we have shared in the past that we were probably less exposed to global customer, to global CPG, and more exposed to local and regional champion and smaller player, which are driving the growth at Robertet and I think are performing a little bit better than the global CPG right now in the market. Jérôme Bruhat : I think this session is already a little bit over time, so we will stop the session right now. I hope we answered your questions. Thank you very much, all of you, for your attendance. Again, for those who have more questions, I invite you to contact directly our Investor Relations responsible, who is Matthieu Lugez. The contact is on our press release, and he will give you more details on more technical questions. We as a team, with Isabelle Pardies, our CFO, and Julien, will regroup if needed with Matthieu to give you a more detailed answer. Thank you for attendance this morning. You know our next financial moment will be with February, with the total year numbers. Operator : This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you.