Stéfan Descheemaeker: Well, it’s a great question. I would put it that way. When you see Adriatics, it’s a business of two sides. You have, let’s say, the ice cream, which is to your point, it’s quite seasonal, high margin. And quite frankly, they’re really doing well and they have really performed well during Q1, end of Q1, starting already in April as well. And then you also have the rest of the business, which is frozen food as such, which is fish, which is veg, and all these things. What we’ve seen in this business over the last two years, and it’s on its way to be finalized. We deliberately have switched the business from commoditized, let’s say, categories in fish, in vegetable, to something which is much more in line with the rest of our business in terms of fish fingers, in terms of coated fish, and also prepared veg and all these things, which in a nutshell, we’re switching the volumes, but we’re also increasing the margin.
That’s a big piece because it was really a business to your point, where Q2, Q3, big margin and then Q3 – Q4 and the Q1, let’s say low margin because it was more commoditized frozen food. We’re changing this. First, what we see is we try to – we are trying to expand the seasonality of ice cream. That’s one thing, starting earlier, finishing later. And second, within the frozen food business, we are really switching from low margin to higher margin. It’s a switch, takes time. So you have to change. It doesn’t mean that we are gaining volumes, but we have better volumes. And that’s what matters. And from that standpoint, what’s great, by the way, is we don’t have to reinvent the wheel. We just have – the people in Serbia and Croatia, they just have to check, what’s available in the rest of the business.
And we have great, as you know, we have great fish fingers. We have great-coated fish. We have great base business. So that’s a – in a nutshell, it’s a really, it’s a quick launch. It’s a lift and it’s a shift and lift and launch. It’s innovation, but it’s low risk innovation. So we like the trajectory. So we don’t think that they have reached, they have maxed out, quite the contrary.
Samy Zekhout: But it’s important to note as well that the margin progress you will see in Q2, in Q3 are not only coming from the mix of the Adriatics, but they’re coming effectively from the base business that is benefiting from the point I was making earlier on the gross margin impact that you saw in Q1. That is actually, let’s say, moving, let’s say, translating over for the rest of the year into quite, let’s say, important gross margin improvement given the dynamic that we have on the top line, and on the cost as well.
Jon Tanwanteng: Got it. That’s very helpful. Thank you.
Samy Zekhout: Thank you, John.
Stéfan Descheemaeker: You’re welcome.
Operator: Ladies and gentlemen, we have reached the end of the question-and-answer session. I will now hand over to Stéfan for closing remarks.
Stéfan Descheemaeker: Thank you, Judith. And thank you for your participation on today’s call. We have a proven track record of delivering uninterrupted growth. Our growth flywheel is beginning to spin faster, making me even more confident about the outlook. I’m excited by the opportunities ahead of us and look forward to meeting many of you in the coming weeks.
Operator: Thank you very much, sir. Ladies and gentlemen, that concludes today’s event. Thank you for attending and you may now disconnect your lines.
