Operator: Good morning everyone, and thank you for joining us on today's Scandi Standard Interim Report for Q3 2026. My name is Drew, and I will be the operator on the call today. Following the prepared remarks, we will hold a Q&A session.
Operator: If you would like to ask a question during that time, please press star followed by one on your telephone keypad. To withdraw your question, it is star followed by two. With that, it is my pleasure to hand over to Jonas Tunestål, CEO, to begin. Please go ahead when you are ready.
Jonas Tunestål: Thank you. Good morning everyone, and welcome to this presentation of Scandi Standard's result for Q3 2026. My name is Jonas Tunestål, and I am the CEO and Managing Director of Scandi Standard. I am pleased to have Fredrik Sylwan, our CFO, by my side today.
Jonas Tunestål: I am also glad to report strong growth and result in the quarter. Next slide, please. In Q3 2026, we see strong progress toward our financial targets. We see 8% growth in net sales and strong demand.
Jonas Tunestål: We see an 18% increase in adjusted EBIT, and that gives us a margin of 5.4%. That is due to that we continue to climb the value ladder in Ready to Cook, that is our main business, but we also see a strong underlying improvement in our Ready to Eat business.
Jonas Tunestål: It is a result of our improvement programs, and that are continuing with full force. I also want to remind you all that Q3 is the seasonal strongest quarter. During the period, we have made a Ready to Eat acquisition of Glenhaven Foods. We bought it for SEK 1.4 billion, and that will strengthen our European position with embedded products.
Jonas Tunestål: Glenhaven Foods has a focus on the Irish and the UK retail clients, and it is partly financed by an oversubscribed capital increase of around SEK 400 million. Next slide, please. Before going further into the results of the quarter, I would like to spend a minute on Glenhaven Foods. We completed acquisition in H1 October, so it is not in the Q3 figures.
Jonas Tunestål: Glenhaven builds on a strong retail position of Scandi Standard in Ireland and provides a bridgehead into the UK retail market. We are the Ready to Cook market leader in Ireland today, and this gives us the Ready to Eat leadership in Ireland as well. The acquisition also brings a strong management team with a track record of profitable growth and well-invested sites with capacity headroom. The capacity headroom is almost 50%. We bought it at around 8.2x EBIT, and we expect the deal to add more than 10% of EPS on a 2025 basis, and that including the impact of the capital increase and finance costs. We are very pleased to welcome the Glenhaven team to Scandi Standard, and we look forward to driving the business further. Next slide, please.
Jonas Tunestål: Moving back to the quarterly results and the reason why we see strong demand, it is related to these three value drivers for chicken: responsible, safe, and nutritious, convenient, versatile, and tasteful, and affordable because it is sustainable. Next slide, please. Here you can see the strong historical and ongoing consumer trend for chicken. On the graph on the right-hand side, you can see the long-term growth in chicken benefiting from substitution from other proteins like pork and beef. As you can see, we are estimating a 3% volume CAGR in the Nordics and Ireland. Next slide, please. One of these three value drivers is affordability, and it is benefiting from other proteins just because it is sustainable and affordable. Price has always been important for consumers, and the focus has increased even more in the current environment of high food prices.
Jonas Tunestål: Beef prices are at a high level and are expensive, which chicken is benefiting from, but also the long-term trend of switching protein from red meat to poultry. Chicken is affordable in all segments, and that gives us further opportunities to drive long-term volume and value creation. We see further opportunities to drive more value out of chicken due to its affordability relative to peers, and as you can see on the right-hand side in the diagram. Next slide, please. On this slide, we want to present our EBIT per kilo measure. EBIT per kilo is a good measurement of value creation for our business. Q3 2026 adjusted EBIT per kilo was SEK 2.72, compared to SEK 2.36 last year, which is an increase of 15%.
Jonas Tunestål: In Q3, as mentioned before, a season of our strongest quarter, but we have a positive momentum towards reaching our 2027 targets. It is, in the different colors you can see in the diagram, you can see development in the different segments. Note the increased significance of Ready to Eat. Next slide, please. This table shows the reconciliation of our segments. Strong net sales growth in most of the markets, strong EBIT contribution from Ready to Cook, and note improved results from Ready to Eat. As always, we want to remind you of the category Other includes our ingredients business and our corporate costs. Next slide, please. Here you can see a summary of our sustainability scorecard. We are, as one of the few poultry producers, transparent on multiple parameters. Q3 shows a mixed result with several areas showing improvement.
Jonas Tunestål: The slightly higher CO2 emissions was impacted by the use of supplementary energy sources at some of our production sites, repairs of our most efficient equipment, as well as the ramp-up of activity in some of our newer sites. For LTI, this is an area with continuing high focus. Next slide, please. Now we are moving to Ready to Cook, and we see strong demand and improved profitability, 5% increase in net sales, and we see strong demand across geographies and channels. We have 3% increase in chicken produced, what we call the grill weight. 7% increase in EBIT. That gives us an EBIT of SEK 170 million compared to SEK 159 million last year, and an EBIT margin of 5.6% compared to 5.5% last year. We are also well-prepared to tackle the increased feed prices. The organization is on high alert.
Jonas Tunestål: Regular price adjustment with retailers to adjust for changes in input costs is now something that we have good processes for, and we are also hedging our input costs in our internal feed production. Next slide, please. This shows the development in feed. We have been seeing rising feed prices for some quarters. We are also seeing increased prices of feed raw material, which will gradually lead to further increased feed prices to our farmers. The expected volatility is driven by the Ukraine war. There is also uncertainty about fertilizer from components from the Middle East and also supply and the ongoing effects of the El Niño. Our organization is well prepared to tackle this through price increases to our customers.
Jonas Tunestål: We also, as always, want to highlight that feed cost is one-third of our cost base, and also that the short production cycle compared to other proteins enables us to be more agile in our supply chain. Also, an important thing to remind you of is that poultry is the most efficient protein. You need 1.5 kilo feed to 1 kilo chicken compared to pork that needs 3.5 and beef that needs 7 to 1 kilo. Next slide, please. When we move over to export, we see strong performance in our export markets. We see fairly stable price achievement during 2026 despite reduced chicken commodity prices. They are reduced due to increased supply of poultry especially in Poland, and that is putting the export prices down. We also see, on the other hand, possible mitigation through the current EU import restrictions on Brazilian chicken.
Jonas Tunestål: The import is closed at the moment, and let us see when it will be open again. We also have an internal, and this is our aim to further de-commoditize our export sales. That is having the long-term partnership with customers, and it is about optimized S&OP, sales operational planning, and also the acquisitions and the growth that we have in Ready-to-Eat that will integrate and make benefit of our raw material in Ready to Cook into our Ready-to-Eat plan. Next slide, please. On this slide, you can see the channel development in more detail. Through this detail, you can notice the increase in both retail and food service in the quarter. In general, we are seeing a strong demand in most of our markets in the quarter. Next slide, please.
Jonas Tunestål: This slide is to remind you on the strong market position in all our five whole markets and the countries are highly consolidated. These markets have large hurdles for new entrants. They can individually be regarded as semi-closed markets due to the strong consumer preference for domestic produce. Due to our strong market position, our own supply decisions have a meaningful impact on the market balance, which has proven to be a strong instrument in periods with volatile markets. Note that each market, however, also includes consumer segments less sensitive to provenance. Next slide, please. On this slide, you can see our Ready-to-Cook plants. We want to set out a note that 11 million chickens in Lithuania is just one shift. If the market has a positive momentum, we have a possibility to scale up with another shift and double the production. Next slide, please.
Jonas Tunestål: Now we move over to Ready-to-Eat, and we see further improvement and a positive seasonal impact. We have 25% growth in net sales driven by demand in both food service and retail. We have an EBIT margin of 6.2% compared to 2.4% last year, and that is due to successful price increases, new product launches with accretive margins, and improved capacity planning that drives higher margin volumes. It also has a seasonal impact. We have summer commercial initiatives that exceeded our expectations in food service. Now with acquisition of Glenhaven, we have a program to take advantage of the strong skill set from Glenhaven into our total business. We also have a cost-efficient start-up of Factory C in the Netherlands during Q4. I will get back to that later. Next slide, please. Here you can see it in figures.
Jonas Tunestål: It is of course very encouraging to see the strong growth in food service after a period of weak demand in Ready-to-Eat in the previous years. The growth in the retail channel continues also to be very strong. Ready-to-Eat will be an important long-term tool on developing EBIT per kilo, more specifically to increase the value of our protein. Next slide, please. This slide is a reminder of the strong historical organic growth in Ready-to-Eat business the last 10 years, and I am confident that it will continue the trend. Our two main type of businesses, three-quarters is a breaded product, European market, and one-third is an integrated local business in Sweden, Norway, and Finland. It gives us a high return on capital employed. Throughout the latest years, an average EBIT margin is about 6%.
Jonas Tunestål: Now in the quarter we have 6.2% and that shows the potential of actually getting the margins back and increase them from that. It has a low capital employed compared to Ready-to-Cook. Also important to note, as you all remember, we lost some continental contract in 2023, but as you can see in this graph, we are now above the historical peak of 2022 on a rolling 12-month basis. Next slide, please. We are expecting a healthy market growth in Europe over the coming years. There are market players divided into tiers. We have the European players, the regional players, and the local players. Scandi Standard has been a large regional player, with 36,000 tons of product weight in 2024, about 5% European market share. But the production platform has not been competitive to the top tier.
Jonas Tunestål: We saw some stagnant market after COVID-19 and the inflation, and we also saw some European overcapacity, but we see now a close to 100 tons market growth that is expected to 2030. Next slide, please. That is also the reason why we could get the possibility to buy the Oosterwolde plant that was acquired in Q1 2025 in an idle state. There were fire in Factory B under previous ownership, but we started the production in Factory A in Q3 2025 after refurbishment. That increased our capacity for our kebab products that have some really good growth and will have outgrown our previous capacity. Now Factory C, the big factory, are being prepared for Q4 2026 trial runs. Actually, to be pretty clear, we are doing our first commercial production this week on the first big line.
Jonas Tunestål: It is small amount of volumes to get all the certificates, but we are going commercial now in Factory C. Factory C, they have two of Europe's most largest and most efficient breaded product lines, with a capacity of 50,000 annual tons. It is one of the few with advanced form product capability. This factory is tailored to meet the criteria of the largest clients. So together with Fylde Food and now with production capacity in Oosterwolde and then Glenhaven Foods with room for increased capacity, that represent a significant growth platform for Scandi Standard for the future. Next slide, please. This slide shows our processing plants and as you can see, they are divided into two different sections.
Jonas Tunestål: We have the plants that are focused on European frozen breaded market, the big plants, and then we have the plants that are focused on convenient products for our home market, Norway, Sweden, and Finland. Next slide, please, and I will hand over to the CFO, Fredrik Sylwan.
Fredrik Sylwan: Thank you, Jonas, and good morning, everyone. Q3 was another strong quarter with continued growth in both sales and profitability. Q3 was actually our strongest quarter ever. Net sales increased by 8% to just north of SEK 4 billion, supported by continued growth demand as well as price and mix improvements. Adjusted EBIT increased by 18% to SEK 220 million, lifting the adjusted EBIT margin up 40 basis points to 5.4%. The improvement reflects operational efficiency and better capacity utilization as well as clearer impact from customer price adjustments, especially in Ready to Eat. Non-comparable items amounted to SEK 15 million and relate to transaction costs for the Glenhaven Foods acquisition. So reported EBIT is therefore SEK 205 million. Finance net was broadly stable at SEK 38 million. Higher interest expense on increased debt was offset by FX.
Fredrik Sylwan: The effective tax rate increased to approximately 22%, mainly because deferred tax assets on tax losses were not recognized and due to the country mix. Income for the period increased to SEK 131 million and adjusted EPS rose by 20% to SEK 2.19. Feed efficiency remained stable at a strong 1.48 and the LTI rate was 24.6, so up 0.2 versus last year. LTI remains an important focus area, particularly in RTE. Next slide, please. Our balance sheet was somewhat distorted at the end of the Q3 as we had received the settlement on our SEK 400 million capital increase. But we had not yet settled the upfront payment for the acquisition of Glenhaven, which was two-thirds of the transaction value, which took place on 9 October.
Fredrik Sylwan: Average capital employed increased to almost SEK 5.6 billion from SEK 4.7 billion, reflecting acquisitions and continued investments in capacity and efficiency. Even with this increase, adjusted return on capital employed improved by 130 basis points to 13.1%. Average equity increased just north of SEK 3 billion from SEK 2.6 billion. The rights issue added almost SEK 400 million to equity after transaction costs and supports the financing of Glenhaven Foods while preserving financial flexibility. Return on equity improved by 270 basis points to 14.7%, supported by stronger earnings generation. The equity ratio strengthened to 37.3% from just shy of 34%, mainly driven by the rights issue, partly offset by the second installment of the dividend distribution. Overall, the figures demonstrate the continued balance between growth investment, improved returns and capital discipline. Next slide, please. We had strong cash generation in the quarter. Net interest-bearing debt was down almost SEK 460 million.
Fredrik Sylwan: Operating cash flow amounted to almost SEK 220 million, so up from SEK 189 million last year, supported by SEK 66 million working capital inflow. Net CapEx at SEK 170 million focused on capacity and efficiency. Main drivers were linked to the hatchery in Lithuania, acquired earlier this year, and final investments in Factory C before startup. The rights issue was successful and strengthened our financial flexibility with almost SEK 400 million, as said earlier. Leverage was reduced to 1.7, which is well below the 2.5 target. Dividend of SEK 3.30 per share is now fully paid. Next slide, please. The higher working capital versus end Q3 last year was primarily driven by our strong organic growth and acquisitions of farms. Inventory is up 20% versus year-end and 35% year on year, driven by seasonality, increased activity and acquisitions.
Fredrik Sylwan: Receivables are up 5% year on year, which is below the sales growth of 8%, indicating continued disciplined collections. Payables are up 8% year on year, providing a partial offset to higher inventory and receivables. The decrease in other comes mainly from VAT and other accrued expenses. Adjusted working capital landed at 5.4% of rolling 12-month sales, which is below the 6% target. As always, we have continued focus on inventory optimization and cash conversion. Next slide, please. We expect CapEx of about SEK 680 million during 2026. Year to date, CapEx spend is almost SEK 550 million, including the purchase of the former leased processing plant Valla in Sweden during the second quarter, leaving approximately SEK 130 million for the fourth quarter. The main remaining investment priorities are increased farming capacity in Lithuania, debottlenecking and capability improvements and completion of Factory C in the Netherlands.
Fredrik Sylwan: We expect working capital to increase during the fourth quarter, including the addition of Glenhaven Foods into the group's capital base following consolidation from 9 October, as well as the ramp-up of Factory C. This will be partly offset by the release of seasonal inventory. Total financing cost to reported net debt is expected to be around 7%, but please note that the financing costs include leasing, factoring, and vendor financing elements that are not recorded in net debt. Following our refinancing earlier this year, we have an attractive interest rate on bank debt of approximately 4%, including the effect of our interest rate swaps. The blended effective tax rate is expected to be approximately 20%. Next slide, please. During the quarter, we finalized the five-year sustainability-linked financing package with our four existing relationship banks. The total committed facilities increased from approximately SEK 290 million to EUR 450 million.
Fredrik Sylwan: Excuse me. The agreement also includes an option to increase the facilities up to another EUR 150 million, providing additional flexibility for organic and strategic growth. Commercial terms improved while the covenant structure remains prudent. Leverage below 4 and ICR above 3.5. The leverage covenant includes flexibility for a temporary increase in connection with acquisition and steps down to 3.0 from the fourth anniversary. The refinancing extends our maturity profile, strengthens liquidity, and retains our ambitious sustainability-linked framework. Overall, the new financing together with the rights issue gives us a stronger and more flexible platform to integrate Glenhaven Foods, continue investing in the business, and pursue future growth opportunities. Next slide, please, and back to you, Jonas.
Jonas Tunestål: Thank you, Fredrik. Next, I would like to talk about our cornerstones and our license to operate. You have seen this before. It is these 4 pillars about increasing the value of our protein, and with that we mean that we want to take out the most value of the fantastic protein that we have. We call it climbing the poultry ladder, and it is about having the right yield, the right customers, and the right products on the market to actually value it as much value as possible. Then we have ramp up the efficiency. That is important for us to actually have efficiency throughout the whole value chain. That actually starts with the parent stock, the feed, the birds, the farmers, and also how we are able to process it as efficient as possible.
Jonas Tunestål: If we combine those 2 and doing good work there, we will climb the value ladder and be able to improve the results. It can sound very simple, but for us, these 4 cornerstones are super important in our daily work. Then, of course, we want an integrated sustainability. Sustainability in everything we do because we know that great sustainability and great efficiency are tightly linked together, and we do this best as one team, better together. Let's move. Next slide, and then we can take the next slide again. On this slide, I want to remind you of our 2027 targets. It's getting closer. Here on the right-hand side, you can see the targets.
Jonas Tunestål: We are expecting strong growth over the coming years, and we have set the target to 5% to 7% of net sales growth, an EBIT margin of 6%, and a return on capital employed of 50%. We want to reduce our CO2 emissions of 42% and have an antibiotic use below 1%. Then our lost time injuries below 15 and our employee satisfaction above 75. These targets are something that we have focused on the whole strategy period, and we feel comfortable that we are moving and setting these targets in 2027. Next slide, please. As a reminder, on this slide you can see that our structured effort is resulting in recognition in form of improved ESG ratings.
Jonas Tunestål: We have an A in the CDP rating for climate, and there is only a few companies that have achieved an A-minus rating, and even smaller group that has an A rating. These high scores reflect our standards and the sustainable nature of our business. Next slide, please. On this slide, we once again want to show our EBIT per kilo. EBIT per kilo is a good measurement of the value creation in our business. There is a clear roadmap to reaching our 2027 goal of 3 SEK per kilo, and that is by climbing the value ladder that I talked about in our four pillars. It is about balanced supply, and it is about increased consumer convenience. It is about utilizing our branding opportunity, and it is about utilizing further potential in our ingredients business.
Jonas Tunestål: This together with another pillar, we increase the efficiency in our value chain, and that is optimized sustainability metrics, organizational performance, production standardization, automation and supply chain standardization, and increased collaboration in the value chain, because it is a value chain that is linked together. If we move into next slide and sum this up. We can say a strong growth and margin improvement. We have a strength and demand trend. Ready to Cook is climbing the value ladder. Ready to Eat, we have set the margin recovery. We are prepared to tackle volatility in input costs. We are focused on developing our European RTE platform, and we have the main building blocks in place and the capacity to actually double our throughput. We are well-positioned to reach our EBIT per kilo target of 3 SEK in 2027. With that, I hand over to Q&A.
Jonas Tunestål: Thank you very much.
Operator: Thank you. We will now start today's Q&A session. If you would like to ask a question, please press star followed by one on your telephone keypad, and to withdraw your question, it is star followed by two. Our first question today comes from Daniel Schmidt from DNB Bank. Your line is now open. Please go ahead.
Daniel Schmidt: Yes. Good morning, Jonas and Fredrik. Hope you can hear me.
Jonas Tunestål: Morning.
Daniel Schmidt: A couple of questions from me. Given the volatility that we've seen in soft commodities, and you mentioned it yourself, of course, when it comes to feed prices, the importance of that. It also sounds like you're much, much more prepared for adjusting prices related to feed. Could you give any example? I know that's much more part of your daily discussions with customers, it sounds like. Could you give any examples what you've really changed to get to that position compared to when you came into the company, Jonas?
Jonas Tunestål: Yeah. There are different ways of working in different countries. But if we take where we have our own feed mill, it is about hedging the raw material into our feed plants. So we actually have the length of the hedge at the same length as the time to actually change the prices into retailers. So we will never speculate and have short hedging. We never hedge shorter than we know that we can put the prices forward. That is one important thing. Where we do not have our own feed production, it's more about linking and have this discussion with the retailers and the farmers. So we link that discussion together. For example, we can look at the feed prices in September for the coming quarter, and then the farmer can decide if he want to hedge or if he want to go on spot.
Jonas Tunestål: If he want to go on spot, then it's his ups and downs, or she's, her. But we set the prices in September, and then we agree that with the customer and put those prices in. So we neutralize the feed prices up and downs. That is example of how we work, because we're really on top of this to actually put it through, because it's something that it's hard to predict and it's hard to do anything about in terms of efficiency. That's why we want to have this as transparent as possible and don't speculate.
Daniel Schmidt: Is it harder to get to that position in Ready to Eat, given that you've been in a situation where you've been wanting to raise prices, but it's been a lead time until those have been realized. Is that a different environment?
Jonas Tunestål: Yeah, it is quicker. It's more transparent and easy to change, or easy, but it's more transparent to the feed prices in Ready to Cook than it is in Ready to Eat. That it comes with a delay. But we have this continuous focus, and that's one of the reasons why you see the margin recovery in that Ready to Eat this quarter.
Daniel Schmidt: What do you expect going forward? Will there be further needs to lift prices in Ready to Eat, given what you're seeing right now?
Jonas Tunestål: It is, as they say, the 10,000 kronor question. It's hard to know where the feed prices go, but if you ask me to guess, we see so much uncertainty. So in the short term, we see that there will be feed price increases for the coming quarter and forward. On the other hand, that is due to Ukraine war, that there are not that much grain that comes out of Russia and Ukraine. On the other hand, there's a lot of cheap grain laying in Ukraine and Russia. So if the war continues or not, no one knows. That will have a huge impact on where the feed prices will go. Another thing is about what will the effect be of the upcoming effects of the El Niño. We don't see that much yet. On the other hand, there's discussion about the fertilizer price that has increased.
Jonas Tunestål: Will the farmer use less fertilizer? That will have an effect that the grains will yield less. Or will they change type of production from wheat to soy? Because you need less fertilizer on soy than you need on wheat. So then maybe soy price will go down and wheat will go up. Everyone is speculating. No one knows. Our most important focus is that when we see the price changes, we are really ahead of them, so we actually can put those prices forward. Because at the end of the day, we know that the poultry protein is the most efficient protein with the best conversion rate of feed. So for us, it is about not getting squeezed. High feed prices actually gives us more and more competitive advantage compared to other proteins.
Jonas Tunestål: But the risk is always that they can be squeezed in the meantime, and that is our focus to not being squeezed.
Daniel Schmidt: Yeah. Talking about affordability, you have updated us continuously, and it is, of course, a well-known fact that chicken is well-suited when it comes to affordability, and you have this slide in your pack. But it is not updated since Q2 2025, if I read the slide correctly. Could you shed some light on what you think about affordability in 2026 versus other proteins? Has the gap even widened further, or what has happened?
Jonas Tunestål: Yes. Since that update, I would say that it has widened further when it comes to beef prices. We have seen beef prices gone through the roof. We have also seen high pork prices. Lately, though, we have seen pork prices decreased a lot, but we see continuous high beef prices. Maybe a slightly decrease, but continuous high. So we will update this one in the beginning of next year to have a better updated picture. But since then, it has increased a lot and then decreased a little bit lately. That is how it is.
Daniel Schmidt: Yeah. I thought. Yeah. All right. Just maybe a last question, and I think you got the question earlier today in media regarding fish farmers now using poultry to feed their salmon in Norway. It is my understanding you are part of that supply base. Has that been something that you have been surprised about, or has this been existing for a while, or what is the development there? Is this really a new customer group for you, or is this something that you had for some time?
Jonas Tunestål: Yeah, it is. In terms of the Norwegian salmon industry, that is a new customer for us. We have been selling to other fish industries due to different regulations. This is a new customer for us, and it is a good customer for us because our rendering plant is in Northern Jutland in Denmark, so I think it is placed in the right geography. We have this rendering plant as a joint venture with BHJ and our competitor in Denmark. There we are sourcing from our Swedish plant and our Danish plant. This is a new customer group, and that is positive. A good customer group and a new welcome customer for Farmfood, and we will benefit from that.
Daniel Schmidt: Okay. Thank you. I will leave the floor open for other questions.
Jonas Tunestål: Thank you, Daniel.
Operator: Thank you. As a reminder, if you would like to ask a question, please press star followed by 1 on your telephone keypad now. To withdraw your question, it is star followed by 2. We will pause for just a moment to allow any further questions to come in. We have a follow-up from Daniel Schmidt. Your line is now open. Please proceed with your question.
Daniel Schmidt: Okay, I might as well continue given there is no others asking questions. How big of an opportunity is this, Jonas, you think, when it comes to the Norwegian salmon industry?
Jonas Tunestål: It is material for Farmfood, but it is not material for Scandi Standard as such. Then it is a little bit about how long will it be, and that is of course also linked to what the feed prices will be and the availability for the Norwegian salmon industry. So I look upon that it is a new customer group for Farmfood, and that is good for us, and we want to develop that business further. Then I think it will hopefully be a long-term client for us that can be a part of the sales in Farmfood. Let us see where it will end. But I think it is a new customer, and that is long-term good for Farmfood and good for the
Daniel Schmidt: Yeah
Jonas Tunestål: offals that we send out of Kronfågel and Aars in Denmark.
Daniel Schmidt: Yeah, all right. You also mentioned the import restrictions on Brazilian chicken being a possible mitigation when it comes to the export market, I assume. What are you seeing there lately, is there any sort of reason to believe that that current restriction is going to be lifted anytime soon?
Jonas Tunestål: What has happened is that the difference They were closed down last year as well, but that was with no pre-warning. Now, this time, they said that they have not fulfilled the things that EU demands, so they will close them down. They told the market that in May, I think, April, May time. So all the importers imported a lot of volume from Brazil to fill up the stocks, and then they closed down. So now there are stocks that actually will reach as I think that it will reach to year-end. So if it is reopened before year-end, the market impact will be fairly low, I think. There is a new meeting in EU in November where they will bring this question up. There is a possibility that it gets reopened November.
Jonas Tunestål: But if it does not get reopened then it will be another meeting, I think, after New Year and so on. There have come some positive signals that they may reopen it, but we are not sure if that is from lobbyists or if that is something to actually take into account. The short answer will be that there has been no effects now because they have built up stock. If it continues to be closed after New Year, I think we will see some effects during the spring.
Daniel Schmidt: Yeah. Okay. Okay, thank you. That is all for me.
Jonas Tunestål: Thank you.
Operator: Thank you. As a final reminder, if you would like to ask a question on today's call, please press star followed by 1 on your telephone keypad now. It seems like we have no further questions in the queue at this time. So I will hand back over to Jonas for closing comments.
Jonas Tunestål: Yes. I just want to say thank you very much for listening in. With that said, we close down this session. Thank you very much.
Fredrik Sylwan: Thank you very much.
