Q2 2026 Anora Group Oyj Earnings Call

August 14, 2026

Speaker #1: You are now joining the meeting.

Speaker #2: This meeting is being recorded and transcribed.

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Speaker #3: All right. Good morning, and a warm welcome to the presentation of Anora's Q2 results. My name is Milena Hegström. I'm the Head of Investor Relations here at Anora, and I'll present today with our CEO, Kirsi Puntila, and CFO, Stein Eriksen.

Milena Hæggström: All right. Good morning and a warm welcome to the presentation of Anora's Q2 results. My name is Milena Hæggström. I am the head of investor relations here at Anora. Our presenters today are our CEO, Kirsi Puntila, and CFO, Stein Eriksen. After the presentations, we will start with the Q&A session. Please also be reminded that you can post your questions during the presentation throughout the call. Please note that this presentation will be recorded and published later today on our website, anora.com. Now Kirsi, please go ahead.

Milena Hæggström: All right. Good morning and a warm welcome to the presentation of Anora's Q2 results. My name is Milena Hæggström. I am the Head of Investor Relations here at Anora. Our presenters today are our CEO, Kirsi Puntila, and CFO, Stein Eriksen. After the presentations, we will start with the Q&A session. Please also be reminded that you can post your questions during the presentation throughout the call. Please note that this presentation will be recorded and published later today on our website, anora.com. Now Kirsi, please go ahead.

Speaker #3: And after the presentations, we will start with the Q&A session. Please also be reminded that you can post your questions during the presentation and throughout the call.

Speaker #3: And please note that this presentation will be recorded and published later today on our website, anora.com. And now, Kirsi, please go ahead.

Speaker #4: Thank you, Milena, and good to see you all online. I hope you've had a great summer. We have naturally been praying for sunny terrace weather, and it does look like the world has not just yet totally stopped enjoying good quality drinks this season.

Kirsi Puntila: Thank you, Milena, and good to see you all online. I hope you have had a great summer. We have naturally been praying for sunny terrace weathers, and it does look like the world has not just yet totally stopped enjoying good quality drinks this season. I am a big believer in open and transparent communication, and my ambition all along has been to turn around the Anora performance, of course, but also rebuild trust in the investor community. For that, we wanted to share a couple of proof points. I am not sure if all of you have noticed. Yes, you can go to the next slide, please. I am not sure if you all have noticed, but now that the midterm strategy is well in action, we have increased our activity externally.

Speaker #4: Okay. I'm a big believer in open and transparent communication, and my ambition all along has been to turn around the Anora performance, of course, but also to rebuild trust in the investor community.

Speaker #4: And for that, we wanted to share a couple of proof points. I'm not sure if all of you have noticed—yes, you can go to the next slide, please.

Speaker #4: I'm not sure if you all have noticed, but now that the midterm strategy is well in action, we have increased our activity externally. First of all, we have met many local Finnish and Norwegian investors, but also attended some international investor meetings in Paris with Deutsche Bank and ABG.

Kirsi Puntila: First of all, we have met many local Finnish and Norwegian investors, but also attended some international investor meetings in Paris with Deutsche Bank and ABG. Secondly, Milena from our IR brought home a trophy from London for the best investor event in the small cap category, and this is a testimonial award for our recent Capital Markets Day presentation. Thirdly, we decided to introduce a new way of keeping you all updated in between the quarters. In July, we therefore published our first ever pre-silent letter, and we intend to make this common practice. You can find these letters on our website in the new IR section. Lastly, from Q2, we intend to include more concrete and verifiable evidence of Fit, Fix, and Focus delivery on our quarterly investor materials.

Speaker #4: Secondly, Milena from our IR team brought home a trophy from London for the best investor event in the small cap category. This is a testimonial awarded for our recent Capital Markets Day presentation.

Speaker #4: Thirdly, we decided to introduce a new way of keeping you all updated in between the quarters. In July, we therefore published our first-ever presilent letter, and we intend to make this common practice.

Speaker #4: You can find these letters on our website in the new IR section. And then lastly, from Q2, we intend to include more concrete and verifiable evidence of fit/fix and focus delivery in our quarterly investment materials.

Speaker #4: The aim is to move the market dialogue from ambition and planned activities towards more documented execution and measurable results. So, the first part of my presentation today is about showcasing the development in our FFF strategy.

Kirsi Puntila: The aim is to move the market dialogue from ambition and planned activities towards more documented execution and measurable results. The first part of my presentation today is about showcasing the development in our FFF strategy. The second part is to show you the actual Q2 numbers. Stein Eriksen will then follow with more details on our financials, as we have done in the past few quarters now. Before anything else, just to comment briefly on the other stock release that was sent about an hour ago. We have signed a letter of intent on a distribution agreement with Bacardi in Sweden and Finland. We are in a good dialogue with the Bacardi team, and if all goes well, this deal would obviously further strengthen our position as the leading wine and spirits powerhouse in the Nordics.

Speaker #4: And then the second part is to show you the actual Q2 numbers. Stein will then follow with more details on our financials, as we've done in the past few quarters now.

Speaker #4: But before anything else, just to comment briefly on the other stock release that was sent about an hour ago: we have signed a letter of intent on a distribution agreement with Bacardi in Sweden and Finland.

Speaker #4: We are in a good dialogue with the Bacardi team, and if all goes well, this deal would obviously further strengthen our position as the leading wine and spirits powerhouse in the Nordics.

Speaker #4: It would also be a perfectly fitting addition to our fit/fix focus strategy, supporting our growth ambition. The yearly financial impact for those two markets would be around €25–30 million.

Kirsi Puntila: It would be also perfectly fitting our Fit, Fix, Focus strategy, supporting our growth ambition. The yearly financial impact for those two markets would be around EUR 25 to 30 million. As said, this is only a letter of intent, and should go all well, we hope to start the distribution at some point in Q4. Still, considering all the insecurities and limited impact this fiscal year, we do not and will not change our guidance. Let us go back to the day's original agenda and an update on all the fitting and fixing we have done since the launch of our midterm strategy and the Capital Markets Day in November last year. Here is the reminder as to what we set on the Capital Markets Day.

Speaker #4: But as said, this is only a letter of intent. And, should all go well, we hope to start the distribution at some point in Q4.

Speaker #4: Still, considering all the insecurities and limited impact this fiscal year, we don't and won't change our guidance. But let's go back to the day's original agenda.

Speaker #4: And an update on all the fitting and fixing we have done since the launch of our midterm strategy, and the Capital Markets Day in November last year.

Speaker #4: Here is a reminder of what we set out on Capital Markets Day. We are targeting 6–7% annual growth in comparable EBITDA through all the Fit, Fix, and Focus initiatives.

Kirsi Puntila: We are targeting 6% to 7% annual growth in comparable EBITDA through all the Fit, Fix, and Focus initiatives, which should take us from around EUR 71 million, which we had last year, 2025, to EUR 85 to 90 million by the end of 2028. As you see, EUR 50 million added to our 2025 comparable EBITDA is actually more than our target of EUR 85 to 90 million by the end of 2028. This is because we have taken into account external environment impact, whether it is inflationary pressures, whether it is category shifts, and an overall slower consumer demand. That will need to offset. Therefore, even in a negative volume environment, we believe that this trajectory is achievable. Let us then move to the evidence slide and start with a summary before moving into some more details.

Speaker #4: This should take us from around €71 million, which we had last year (2025), to €85 to €90 million by the end of 2028.

Speaker #4: As you see, €50 million added to our €25 million comparable EBITDA is actually more than our target of €85 to €90 million by the end of '28.

Speaker #4: And this is because we have taken into account external environmental impact, whether it is inflationary pressures, category shifts, or an overall slower consumer demand.

Speaker #4: So that will need to offset. Therefore, even in a negative volume environment, we believe that this trajectory is achievable. Let's then move to the evidence slide and start with the summary before moving into some more details.

Speaker #4: So, just as a reminder, 'fit' means creating a simpler organization and lowering our cost base overall. All of these initiatives are largely secured, and the sourcing savings are ramping up.

Kirsi Puntila: Just a reminder, Fit means creating a simpler organization and lowering our cost base overall. All of these initiatives are largely secured, and the sourcing savings are ramping up. With Fix then, we start to see the actions already visible in the financial results. During the H1, gross margin reached an admirable 46.7%. Our comparable EBITDA increased to EUR 24.8 million, and inventory has reduced to EUR 132.5 million. We talked about Fit and Fix. In the Focus part, we are seeing early commercial wins. Wine has strengthened its number 2 position in Sweden. New partner brands have been introduced, and launches are progressing in selected categories and channels. The overall conclusion is therefore that Fit is largely secured as planned. Fix is delivering measurable results already, and Focus is beginning to show evidence.

Speaker #4: With the fixes, then, we start to see the actions already visible in the financial results. So during H1, cross-marching reached an admirable 46.7%.

Speaker #4: Our comparable EBITDA increased to €24.8 million, and inventory has reduced to €132.5 million. So, now we talked about Fit and Fix, and then in the Focus part, we are seeing early commercial wins.

Speaker #4: Wine has strengthened its number two position in Sweden. New partner brands have been introduced, and launches are progressing in selected categories and channels. So the overall conclusion is, therefore, that fit is largely secured as planned.

Speaker #4: Fix is delivering measurable results already, and focus is beginning to show evidence. But, sure, in all transparency, the focus part remains the key area to develop even further.

Kirsi Puntila: But sure, in all transparency, the focus part remains the key area to develop even further. Regardless of all the positives, I have to conclude that market does continue to be tough for the rest of the year, and we still have a lot of work to do to turn around Anora to a sustainable, profitable growth. All right, let's then elaborate a little bit further as to what's going on under each F, and starting with fit. The key organizational actions are now delivered, including the new go-to-market structure, which we have talked about to you before, and leaner ways of working. So teams are formed, and they are working well together in all markets.

Speaker #4: And regardless of all the positives, I have to conclude that the market does continue to be tough for the rest of the year. We still have a lot of work to do to turn around Anora to sustainable, profitable growth.

Speaker #4: All right. Then let's elaborate a little bit further as to what's going on under each F, starting with Fit. The key organizational actions are now delivered.

Speaker #4: Including the new go-to-market structure, which we have talked about to you before, and leaner ways of working. So, teams are formed, and they are working well together in all markets.

Speaker #4: Sourcing savings are now ramping up through supplier tenders, packaging harmonization, and we have also introduced a new sourcing tool during Q2, which gives further visibility for our people when they are working on these matters.

Kirsi Puntila: Sourcing savings are now ramping up through supplier tenders, packaging harmonization, and we have also introduced a new sourcing tool during Q2, which gives further visibility for our people when they are working on these matters. By the end of H1, we have done around 70% of the run rate towards 2028 at Capital Markets Day plan, and this 70% has already been secured. So overall, fit is on track and is already supporting a stronger operating model. Moving on to the fix actions then. All our value management initiatives have been driving a nice structural margin uplift. The revenue management actions that have improved gross margin in every segment, including the implementation of one pricing tool, which I'm very proud of. Overall common pricing architecture and governance. Price, volume, and margin visibility in the pool organization.

Speaker #4: By the end of H1, we have achieved around 70 percent of the run rate towards the 2028 Capital Markets Day plan. And this 70 percent has already been secured.

Speaker #4: So overall, FIT is on track and is already supporting a stronger operating model. Moving on to the fixed actions then, all our value management initiatives have been driving a nice structural margin uplift.

Speaker #4: The revenue management actions that have improved cross-marching in every segment include the implementation of one pricing tool—which I'm very proud of—an overall common pricing architecture and governance, price, volume, and margin visibility in the full organization, and, overall, faster scenario-based decisions.

Kirsi Puntila: And overall faster scenario-based decisions, and that's something that, of course, is a major improvement here in the internal way of working. Another element of the fix part is inventory and working capital actions, both obviously converting straight into cash. Our H1 operational cash flow was EUR 13.5 million better than last year. This all, of course, provides funding for the dividends and also the focus phase growth initiatives. We can also see the results in a leaner balance sheet that Stein will be talking about in a while. On top of all that, we completed our refinancing in June 2026 this year, which will cut annual financing costs by around EUR 1 million per annum. We will get back to this in more detail later. Right. So finally then, the focus part. Focus-based growth actions, as I mentioned, they are also starting to show early commercial wins.

Speaker #4: And that's something that, of course, is a major improvement here in the internal way of working. Another element of the fixed part is inventory.

Speaker #4: And working capital actions, both obviously converting straight into cash. Our H1 operational cash flow was €13.5 million better than last year. This all, of course, provides funding for the dividends and also the Focus phase growth initiatives.

Speaker #4: We can also see the results in a leaner balance sheet that Stein will be talking about in a while. On top of all that, we completed our refinancing in June 2026 this year, which will cut annual financing costs by around €1 million per annum.

Speaker #4: And we will get back to this in more detail later, right? So finally then, the focus part. Focus phase growth actions, as I mentioned, are also starting to show early commercial wins.

Speaker #4: This includes growth actions, first and foremost, in our own core portfolio, which we are expanding. Secondly, investing in new categories and channels, especially in Finland and Norway.

Kirsi Puntila: This includes growth actions, first and foremost in our own core portfolio, which we are expanding. Secondly, investing in new categories and channels, especially in Finland and Norway. Then thirdly, continuing with our international growth. We have already seen good results with new partners, especially with wines such as Moselland and Cantine Settesoli. Then we've launched new innovations in our liquor segment and F.FWD Fast Forward, which is a sort of energy drink in a low alcoholic beverage segment. Then one brand to mention is BuzzBallz from Sazerac, which is growing really well. So all nice growth coming in Q2. But it is our market share recovery which now remains our key priority for the remaining of the year. The rest of the initiatives are planned to be completed by the end of 2028.

Speaker #4: And then, thirdly, continuing with our international growth. We have already seen good results with new partners, especially with wines such as Morseland and Cantina Sette Soli.

Speaker #4: And then we've launched new innovations in our liquor segment, and 'Fast Forward', which is an energy drink in the low-alcoholic beverage segment.

Speaker #4: And then one brand to mention is BuzzBallz from Sazerac, which is growing really well. So, all nice growth coming from Q2. But it is our market share recovery which now remains our key priority for the remainder of the year.

Speaker #4: The rest of the initiatives are planned to be completed by the end of 2028. So, as said, we intend to keep giving you this sort of regular proof points of the FFF progress from now on.

Kirsi Puntila: As said, we intend to keep giving you this sort of regular proof points of the FFF progress from now on. Every quarter, probably a little bit more information on a half-year basis, but nevertheless, proof points of FFF in every quarter. Then we will move on to the second part of the presentation, which is the latest quarter. Please remember that our turnaround journey is still in progress, and there will surely be further bumps on the road and also bad quarters. But we are quite happy to say that the first part of the year 2026 has been the strongest in the history of Anora.

Speaker #4: Every quarter, probably a little bit more information on a half-year basis. But nevertheless, proof points of FFF in every quarter. Right. Then we will move on to the second part of the presentation, which is the latest quarter.

Speaker #4: Please remember that our turnaround journey is still in progress, and there will surely be further bumps on the road and also bad quarters. But we are quite happy to say that the first part of the year 2026 has been the strongest in the history of Anora.

Speaker #4: And I'm delighted to say that Q2 provided further proof that our fit, fix, and focus actions are improving performance despite continued weak market and our top-line development.

Kirsi Puntila: I am delighted to say that Q2 provided further proof that our Fit, Fix, and Focus actions are improving performance despite a continued weak market and our top line development. In Q2, our net sales decreased by 3%, resulting in EUR 161 million. The decline was related mostly to lower wine sales volumes in Denmark, together with the earlier lost volumes in the filler services and the earlier changes in spirits partner portfolio in 2025. But do remember that the effect of these earlier events is anticipated to diminish as the year progresses. So very soon, because now we are already in August. But what really pleases us now is that Q2 group gross margin rose to 46.7% of net sales. This is the highest level in several years, reflecting disciplined revenue management, our pricing actions, also the portfolio optimization, and continued operational improvements.

Speaker #4: So in Q2, our net sales decreased by 3 percent, resulting in €161 million. The decline was related mostly to lower wine sales volumes in Denmark, together with the earlier lost volumes in the filler services and the earlier changes in the spirits partner portfolio in 2025.

Speaker #4: But do remember that the effect of these earlier events is anticipated to diminish as the year progresses. So, very soon, because now we are already in October.

Speaker #4: In August. But what really pleases us now is that Q2 group gross margin rose to 46.7 percent of net sales. This is the highest level in several years, reflecting disciplined revenue management, our pricing actions, portfolio optimization, and continued operational improvements.

Speaker #4: And it was all our segments, i.e., spirits, wine, and industrial, that improved their cross-marching both in the second quarter and during the whole first half of '26.

Kirsi Puntila: It was all our segments, i.e., Spirits, Wine, and Industrial, that improved their gross margin, both in the second quarter and during the whole H1 of 2026. The one parameter that is of course the most important for us is comparable EBITDA, which increased by 14.6%, amounting to EUR 16 million compared to EUR 14 million last year. We also ended the Q2 in a healthy financial position with a net debt of EUR 177 million and leverage being 2.4 after refinancing. We are very happy about that. We have promised that it should be below 2.5. Looking ahead, we therefore keep our guidance for this year. Comparable EBITDA expected to be EUR 74 to 79 million in 2026. I know this slide is a little bit busy, but you can focus on the colorful pictures while I bring you some highlights of the past quarter.

Speaker #4: The one parameter that's, of course, the most important for us is comparable EBITDA, which increased by 14.6 percent, amounting to €16 million compared to €14 million last year.

Speaker #4: We also ended Q2 in a healthy financial position, with a net debt of €177 million, and leverage being 2.5–2.4 after refinancing.

Speaker #4: And we're very happy about that. We have promised that it should be below 2.5, below 2.5. Looking ahead, we therefore keep our guidance for this year: comparable EBITDA expected to be €74 to €79 million in 2026.

Speaker #4: I know this slide is a little bit busy, but you can focus on the colorful pictures while I bring you some highlights of the past quarter.

Speaker #4: First and foremost, all the summer events. We want to provide consumers and our people with meaningful experiences enjoying our drinks. And it was a good summer with our brands.

Kirsi Puntila: First and foremost, all the summer events. We want to provide consumers and our people with meaningful experiences enjoying our drinks. It was a good summer with our brands. We were visible in Roskilde Festival in Denmark, Estonia Õllesummer, Sweden Rock Festival, and also the ones here in the Helsinki area. Hopefully, you visited the Superterassi, where you could enjoy the Jaloviina experience, and there were many other summer events as well. Secondly, we have continued growing our amount of ready-to-drink, i.e., the can products, across the portfolio, across different brands. Thirdly, we have launched a selection of fresh summer wines and spirits, whether it is the Parador Cava, Don Simon Mimosa, or then the new Leijona liqueur variants. As usual, I will then use some time on the segments' performances. Let us go to the wine first.

Speaker #4: We were visible at the Roskilde Festival in Denmark, Estonia Õllesummer, Sweden Rock Festival, and also at the ones here in the Helsinki area. Hopefully you visited the Super Terrace where you could enjoy the Jaloviina experience.

Speaker #4: And there were many other summer events as well. Secondly, we have continued growing our amount of ready-to-drink, i.e., the can products, across the portfolio and across different brands.

Speaker #4: And then, thirdly, we have launched a selection of fresh summer wines and spirits—whether it is a Parador Cava, Don Simon Mimosa, or the new Leiona liquor variants.

Speaker #4: As usual, I will then spend some time on the segments' performances. Let's go to wine first. The total net sales in the wine segment did decline to €68.1 million, which is down 9.1%.

Kirsi Puntila: The total net sales in the Wine segment did decline to EUR 68.1 million, which is down 9.1%. This was mainly due to the old topics, i.e., lower sales and filler service volumes in Denmark and reduced volumes in Finland and Norway. Comparable EBITDA decreased to EUR 900,000. Comparable EBITDA margin decreased to 1.3% of net sales. This decrease was due to lower sales despite a significant improvement in gross margin, which was 30.6% of net sales. On a positive side, we still continue to strengthen our number 2 position in Sweden, and we did maintain our total market leadership in Norway, Denmark, and Finland alike. If we look at the Spirits segment, net sales declined to 52.8%, which I would say is down only 1.5% anymore. This is largely explained by the earlier portfolio changes in 2025.

Kirsi Puntila: The total net sales in the Wine segment did decline to EUR 68.1 million, which is down 9.1%. This was mainly due to the old topics, i.e., lower sales and filler service volumes in Denmark and reduced volumes in Finland and Norway. Comparable EBITDA decreased to EUR 900,000. Comparable EBITDA margin decreased to 1.3% of net sales. This decrease was due to lower sales despite a significant improvement in gross margin, which was 30.6% of net sales. On a positive side, we still continue to strengthen our number two position in Sweden, and we did maintain our total market leadership in Norway, Denmark, and Finland alike. If we look at the Spirits segment, net sales declined to 52.8%, which I would say is down only 1.5% anymore. This is largely explained by the earlier portfolio changes in 2025.

Speaker #4: And this was mainly due to the old, old topics, i.e., lower sales and filler service volumes in Denmark, and reduced volumes in Finland and Norway.

Speaker #4: Comparable EBITDA decreased to €900,000. Comparable EBITDA margin decreased to 1.3 percent of net sales. This decrease was due to lower sales, despite a significant improvement in gross margin, which was 30.6 percent of net sales.

Speaker #4: And on a positive side, we still continue to strengthen our number two position in Sweden. And we did maintain our total market leadership in Norway, Denmark, and Finland alike.

Speaker #4: Okay. Then if we look at the spirits segment, net sales declined to €52.8 million, which I would say is down only 1.5 percent year-on-year.

Speaker #4: And this is largely explained by the earlier portfolio changes in 2025. And then, of course, the market in general continued to be soft.

Kirsi Puntila: The market in general continued to be soft. But again, looking below the surface on the positives, gross margin improved to 47.5%, and the gross profit amounted to EUR 25.1 million. So mix and pricing were clearly improving the profitability in the Spirits segment. Not only that, now we see Baltics and also our expansion markets being back to the growth track. The Spirits comparable EBITDA therefore increased by 22.7% to EUR 10.5 million, and that is an incredible improvement in EBITDA. The comparable EBITDA margin increased to 20% from last year, which was 16%. To summarize, we still work through portfolio changes, but the underlying profitability quality is definitely improving. Next, let's look at Industrial briefly. Industrial delivered a very strong Q2.

Speaker #4: But again, looking below the surface on the positives, gross margin improved to 47.5%, and the gross profit amounted to €25.1 million. So, mix and pricing were clearly improving the profitability in the spirits segment.

Speaker #4: And not only that, now we see the Baltics and also our expansion markets being back on the growth track. The Spirits comparable EBITDA, therefore, increased by 22.7 percent to €10.5 million.

Speaker #4: And that is an incredible improvement in EBITDA. The comparable EBITDA margin increased to 20%, up from 16% last year. So, to summarize, we are still working through portfolio changes, but the underlying profitability quality is definitely improving.

Speaker #4: Next, let's look at Industrial briefly. Industrial delivered a very strong second quarter. External net sales increased by 7.3 percent, ending at €39.6 million, while total net sales amounted to €51.9 million.

Kirsi Puntila: External net sales increased by 7.3%, ending at EUR 39.6 million, while the total net sales amounted to EUR 51.9 million. This growth was driven by very strong sales in ethanol and starch, and also the logistics services in Norway, thanks to our Vectura operations. So comparable EBITDA improved slightly to EUR 6.3 million, or 10.2% of net sales. The Industrial gross margin increased to 53.5% of net sales in Q2, and the gross profit amounted to EUR 33 million. So overall, Industrial also continues to be a staple part of the business. I know that this was quite a handful of information, but there is more to come when I let Stein loose, so over to you, Stein. I think you are muted, Stein. Yeah, absolutely fantastic. You can start all over again.

Speaker #4: And this growth was driven by very strong sales in ethanol and starch, and then also the logistics services in Norway, thanks to our Vectura operations.

Speaker #4: So, comparable EBITDA improved slightly to €6.3 million, or 10.2 percent of net sales. The industrial gross margin increased to 53.5 percent of net sales in Q2, and the gross profit amounted to €33 million.

Speaker #4: So, overall, industrial also continues to be a staple part of the business. Okay. I know that this was quite a handful of information, but there is more to come when I let Stein loose.

Speaker #4: So over to you, Stein.

Speaker #1: Thank you. I think you are muted, Stein.

Speaker #2: Yeah, absolutely fantastic. You can start all over again. One number, Stein.

Speaker #1: Thank you. More numbers, more details. I'm sorry about that, guys. Okay, let's start. Yes, good morning, everyone. And then I will take you to the financial review for Q2 and H1 of 2026.

Stein Eriksen: Thank you.

Kirsi Puntila: More numbers, Stein.

Stein Eriksen: More numbers, more details. I am sorry about that, guys. Let us start. Yes, good morning, everyone. I will take you to the financial review for Q2 and H1 of 2026. Kirsi summarized it quite well, but I would just repeat it, that Q2 confirmed that the underlying earnings improved. While net sales remained below last year, comparable EBITDA increased clearly, supported by continued execution of Fit, Fix and Focus, translating into higher gross margin and a stronger performance in Spirits and Industrial. In this presentation, I will cover net sales, comparable EBITDA, gross margin, cash flow and net debt, the refinancing completed in June, and finally, a slide on working capital. Let us start with the net sales for Q2. Q2 external net sales decreased by 3% to EUR 160.5 million, compared to EUR 165.5 million last year.

Speaker #1: So, Kirse summarized it quite well, but I would just repeat it. Q2 confirmed that the underlying earnings improved, while net sales remained below last year. Comparable EBITDA increased clearly, supported by continued execution of Fit, Fix and Focus, translating into higher gross margin and a stronger performance in spirits and industrial.

Speaker #1: In this presentation, I will cover net sales, comparable EBITDA, gross margin, cash flow and net debt, the refinancing completed in June, and finally a slide on working capital.

Speaker #1: So let's start with the net sales for Q2. Q2 external net sales decreased by 3 percent to €160.5 million, compared to €165.5 million last year.

Speaker #1: The main pressure was in wine, with net sales declining by 9.1 percent to €68.1 million. This should also be seen against a challenging market backdrop, with Nordic wine market volumes declining by 5.4 percent in the second quarter.

Stein Eriksen: The main pressure was in Wine, when net sales declined by 9.1% to EUR 68.1 million. This should also be seen against a challenging market backdrop, with Nordic wine market volumes declining by 5.4% in the second quarter. Our performance was further impacted by lower sales and filler service volumes in Denmark, as well as lower volumes in Finland and Norway. Spirits was down, like Kirsi said, only by 1.5% to EUR 52.8 million, all related to early changes in the partner portfolio in 2025, while our existing portfolio had growth in the quarter. Industrial delivered positively, with external net sales increasing by 7.3% to EUR 39.6 million, driven by higher volumes in ethanol and starch, as well as logistic services in Norway.

Speaker #1: Our performance was further impacted by lower sales and filler service volumes in Denmark, as well as lower volumes in Finland and Norway. Spirits was down, like Kirse said, only by one and a half percent to 52.8 million euros, all related to early changes in the partner portfolio in 2025, while our existing portfolio had growth in the quarter.

Speaker #1: Industrial delivered positively, with external net sales increasing by 7.3 percent to €39.6 million, driven by higher volumes in ethanol and starch, as well as logistics services in Norway.

Speaker #1: So the key takeaway here is that the top line remains under pressure, especially in wine. And it will, of course, be a major focus area to improve going forward.

Stein Eriksen: The key takeaway here is that the top line remains under pressure, especially in Wine, and will be, of course, a major focus area to improve going forward. Let us then move on to EBITDA and comparable EBITDA. Before I start with comparable EBITDA, let me briefly address the difference between reported and comparable EBITDA. Reported EBITDA was EUR 12.3 million in the second quarter, reflecting EUR 3.7 million of items affecting comparability, mainly related to one-off project costs from our ongoing transformation program and the Fit, Fix and Focus initiatives. On a H1 basis, items affecting our comparability amounted to EUR 5.9 million. These costs are temporary in nature, while the benefits from Fit, Fix and Focus are increasingly visible in our underlying performance. Let us then turn to comparable EBITDA. Group comparable EBITDA increased by 14.6% to EUR 16 million from EUR 14 million last year.

Speaker #1: Let's then move on to EBITDA and comparable EBITDA. But before I start with comparable EBITDA, let me briefly address the difference between reported and comparable EBITDA.

Speaker #1: Reported EBITDA was €12.3 million in the second quarter, reflecting €3.7 million of items affecting comparability, mainly related to one-off project costs from our ongoing transformation program.

Speaker #1: And the Fit, Fix and Focus initiatives. On an H1 basis, items affecting comparability amounted to €5.9 million. These costs are temporary in nature, while the benefits from Fit, Fix and Focus are increasingly visible in our underlying performance.

Speaker #1: So let's then turn to comparable EBITDA. Group comparable EBITDA increased by 14.6 percent to 60 million euros, from 14 million euros last year. And Kirse already mentioned the EBITDA margin improving to 10 percent from 8.4 percent.

Stein Eriksen: Kirsi already mentioned the EBITDA margin improving to 10% from 8.4%. The improvement was driven by stronger performance in Spirits and Industrial and reflects the continued execution of the FFF program, particularly through revenue management, mix, and structural cost actions. Spirits improved to EUR 10.5 million with a margin of 20%, supported by high gross margin, disciplined revenue and mix management, and lower underlying operating expenses. Industrial also delivered a strong quarter, increasing to EUR 6.3 million with a margin of 10.2%, supported by higher gross profit and a good volume development. Wine remained the weak spot. Comparable EBITDA declined to EUR 0.9 million from EUR 1.9 million the previous years, as lower sales more than offset the improvement that we had in gross margin. Overall, we see this as a good quality improvement in earnings, with higher margin and stronger profitability despite the continued top-line pressure.

Speaker #1: The improvement was driven by stronger performance in Spirits and Industrial, and reflects the continued execution of the Triple F program, particularly through revenue management, mix, and structural cost actions.

Speaker #1: Spirits improved to €10.5 million with a margin of 20 percent, supported by high gross margin, disciplined revenue and mix management, and lower underlying operating expenses.

Speaker #1: Industrial also delivered a strong quarter, increasing to 6.3 million with a margin of 10.2 percent, supported by higher gross profit and good volume development.

Speaker #1: And wine remained the weak spot. Comparable EBITDA declined to €0.9 million from €1.9 million the previous year, as lower sales more than offset the improvement that we had in gross margin.

Speaker #1: Overall, we see a good we see this as a good quality improvement in earnings, with higher margin and stronger profitability, despite the continued top line pressure.

Speaker #1: And the main remaining gap is the commercial recovery in wine. I think the gross margin is the most important financial proof this quarter. In Q2, the underlying gross margin improved to, or increased to, 46.5 percent, up from 42.6 percent last year.

Stein Eriksen: The main remaining gap is the commercial recovery in wine. I think the gross margin is the most important financial proof this quarter. In Q2, the underlying gross margin improved or increased to 46.5%, up from 42.6% last year. On the right-hand side on this slide, you see on a H1 basis, the gross margin also reached the 46.5%, the highest H1 level of gross margin since the merger. There are three main drivers that explains the gross margin improvement. Around one third is related to revenue management. That is better pricing, mix, and governance across the monopoly markets. Second, positive mix effects from the partner changes already mentioned and the filler business. Thirdly, better operational performance, particular in Industrial.

Speaker #1: And on the right-hand side on this slide, you see, on an H1 basis, the gross margin also reached 46.5 percent—the highest H1 level of gross margin since the merger.

Speaker #1: There are three main drivers that explain the gross margin improvement. And around one-third is related to revenue management—that's better pricing, mix, and governance across the monopoly markets.

Speaker #1: Second, positive mix effects from the partner changes already mentioned and the filler business. And thirdly, better operational performance, particularly in industrial. The bar chart on the left-hand side of this slide illustrates that the input cost environment has become more supportive, compared with the peak levels seen in recent years.

Stein Eriksen: The barley chart on the left-hand side of this slide illustrates that input cost environment has become more supportive compared with the peak levels seen in recent years. The important point is that the margin improvement is not simply a commodity tailwind. It is explained by our commercial portfolio and operational actions under the Fit, Fix, and Focus program. Also, we are in the middle of the barley harvest season, and so far I can just say it looks okay. It looks okay compared to last year. Let us then move over to the balance sheet and the net debt development. Turning to net debt, the seasonal cash patterns is important here. As you all are aware, H1 is normally a cash outflow period for Anora, while Q4 is the strongest cash generation quarter.

Speaker #1: But the important point is that the margin improvement is not simply a commodity tailwind. It's explained by our commercial portfolio and operational actions under the Fit, Fix, and Focus program.

Speaker #1: Also, we are in the middle of the barley harvest season, and so far I can just say it looks okay. It looks—it looks okay compared to last year.

Speaker #1: Okay, let's then move over to the balance sheet and the net debt development. Turning to net debt, the seasonal cash patterns are important here.

Speaker #1: As you are all aware, H1 is normally a cash outflow period for Anora, while Q4 is the strongest cash generation quarter. Net cash flow from operating activities was minus €39.9 million.

Stein Eriksen: Net cash flow from operating activities was -39.9 million, which is EUR 13.5 million better than last year, despite the normal seasonal working capital build. Net debt at the end of June was EUR 176.9 million, down from EUR 199 million a year ago, and the increase from year end reflects, like I already mentioned, normal seasonality and dividend payment in Q2. So the balance sheet remains clearly stronger than last year, and the H1 cash flow improvement confirms that working capital discipline is progressing. Then moving over to the financial position of Anora. Leverage was 2.5, no, sorry, 2.4 compared with 3 last year, and therefore still within our target of below 2.5. We should recognize that headroom is more limited in H1 because of the normal seasonal build-up, and of course, the dividend paid in Q2.

Speaker #1: This is €13.5 million better than last year, despite the normal seasonal working capital build. Net debt at the end of June was €176.9 million, down from €199 million a year ago.

Speaker #1: And the increase from year-end reflects, like I already mentioned, normal seasonality and dividend payment in Q2. So the balance sheet remains clearly stronger than last year, and the H1 cash flow improvement confirms that working capital discipline is progressing.

Speaker #1: Then, moving over to the financial position of Anora. Leverage was 2.5—no, sorry, 2.4, compared with 3 last year, and therefore still within our target or below 2.5.

Speaker #1: We should recognize that headroom is more limited in H1 because of the normal seasonal build-up, and of course, the dividend paid in Q2.

Speaker #1: Liquidity reserves remained solid at €244 million, providing good flexibility after the refinancing. And as already mentioned, we're very happy with the operational cash flow in the first half of 2026, ending €14 million—or €13.5 million to be exact—better than the previous year.

Stein Eriksen: Liquidity reserves remained solid at EUR 244 million, providing good flexibility after refinancing. As already mentioned, very happy with the operational cash flow in H1 2026, ending EUR 14 million or EUR 13.5 million to be exact, better than the previous year. The conclusion is that financial position is robust, lower leverage than last year, solid liquidity, and improved cash flow discipline. As Kirsi mentioned, we also completed the refinancing of the group on improved terms in June. The new financing structure consists of EUR 260 million of committed credit facility, a EUR 140 million term loan, a EUR 120 million revolving credit facility, together with existing EUR 20 million overdraft facility. Compared with the previous structure, as you can see on the slide here, the facilities have been right-sized with EUR 50 million, while the commercial paper program has increased from EUR 100 million to EUR 150 million, maintaining a good financial flexibility.

Speaker #1: So, the conclusion is that our financial position is robust, with lower leverage than last year, solid liquidity, and improved cash flow discipline. As Kirsi mentioned, we also completed the refinancing of the group on improved terms in June.

Speaker #1: The new financing structure consists of a €260 million committed credit facility: a €140 million term loan, a €120 million revolving credit facility, together with the existing €20 million overdraft facility.

Speaker #1: Compared with the previous structure, as you can see on the slide here, the facilities have been right-sized with €50 million, while the commercial paper program has increased from €100 million to €150 million.

Speaker #1: Maintaining, then, a good financial flexibility. The tenor is three plus one plus one years, and the financial covenant remains unchanged, with net debt to comparable EBITDA below 3.75.

Stein Eriksen: The tenor is 3+1+1 years, and the financial covenant remains unchanged and net debt to comparable EBITDA below 3.75x. The lender group remains strong and well-diversified, with SEB acting as agent and coordinator alongside Danske Bank, DNB, and OP. Importantly, the refinancing is expected to reduce annual financial costs by approximately EUR 1 million on a run rate basis by the end of 2026. Overall, we have reduced the cost of financing, right-sized our committed facilities, and maintained a flexible funding structure with an extended maturity profile. Finally, touching upon working capital. Net working capital was -EUR 32.8 million at the end of June, corresponding to approximately -5% of LTM sales. Inventory remains clearly below last year at EUR 132.5 million, compared to EUR 146.2 million at the end of June 2025.

Speaker #1: The lender group remains strong and well-diversified, with SAB acting as agent and coordinator, alongside Danske Bank, DNB, and OP. Importantly, the refinancing is expected to reduce annual financial costs by approximately €1 million on a run-rate basis by the end of 2026.

Speaker #1: So overall, we have reduced the cost of financing, right-sized our committed facilities, and maintained a flexible funding structure with an extended maturity profile.

Speaker #1: Then, finally, touching upon working capital: net working capital was minus €32.8 million at the end of June, corresponding to approximately minus 5 percent of LTM sales.

Speaker #1: Inventory remains clearly below last year at €132.5 million, compared to €146.2 million at the end of June 2025. And this is despite the normal seasonal inventory buildup during the first half of the year.

Stein Eriksen: This is despite the normal seasonal inventory build-up during H1 of the year. Trade receivables and other current assets were at EUR 130 million compared to EUR 125.5 million last year. At the same time, receivables sold were slightly lower at EUR 115 million compared to EUR 121.6 million last year. The key point here is that working capital management remains disciplined. Inventory is materially lower year on year, and this has been achieved without increasing the use of receivables financing. Together with lower leverage we showed earlier, this supports the progress we are making under the fix agenda towards a leaner balance sheet. With that, Kirsi, I hand over to you for some final remarks.

Speaker #1: Trade receivables and other current assets were at €130 million, compared to €125.5 million last year. At the same time, receivables sold were slightly lower, at €115 million compared to €121.6 million.

Speaker #1: The last year. So, the key point here is that working capital management remains disciplined. Inventory is materially lower year on year, and this has been achieved without increasing the use of receivables financing.

Speaker #1: So together, with lower leverage, we showed earlier this supports the progress we are making under the Fix agenda towards a leaner balance sheet. And with that, Kirsi, I hand over to you for some final remarks.

Speaker #2: Thank you so much. Sounds like the CFO is fairly, fairly happy today, right? So, this following page should be familiar to most of you by now.

Kirsi Puntila: Thank you so much. It sounds like the CFO is fairly happy today. Right. This following page should be familiar with most of you by now. Our financial targets remain unchanged. We are targeting overall 6% to 7% annual EBITDA growth. We are targeting organic growth being above the market, and market growth is measured from the Nordic market sales volumes change. Here you can see that the organic growth for Anora in H1 was -5%, whereas the market was down 3.4%. Please note that the organic growth for Anora in Q2 was actually -5.5%, whereas the market was down by 5.3%. In Q2, Anora's organic net sales did not decline anymore as much as the market overall. The second target is leverage, which should be below 2.5x, and our dividend payout should be between 50% to 70%.

Speaker #2: Our financial targets remain unchanged. We are targeting overall 6–7 percent annual EBITDA growth. We are targeting organic growth above the market, and market growth is measured from the Nordic market sales volumes change.

Speaker #2: So here you can see that the organic growth for Anora in H1 was minus 5 percent, whereas the market was down 3.4 percent. But please note that the organic growth for Anora in Q2 was actually minus 5.5 percent, whereas the market was down by 5.3 percent.

Speaker #2: So in Q2, Anora's organic net sales did not decline anymore, and not as much as the market overall. Then the second target is leverage, which should be below 2.5.

Speaker #2: And our dividend payout should be between 50% to 70%. So, for 2026, we still guide comparable EBITDA to be between €74 million and €79 million.

Kirsi Puntila: For 2026, we still guide comparable EBITDA to be between EUR 74 million and EUR 79 million. Right. Wrapping up Q2 with the key messages, which are first and foremost, that our continued Fit, Fix, and Focus actions were driving Q2 comparable EBITDA growth up to 14.6%. Comparable EBITDA was up to EUR 60 million, and the comparable EBITDA margin improved to 10%. Our gross margin rose to 46.7% of net sales. Net sales declined to EUR 161 million, which is down by 3%. This was expected given the market conditions. The decline, as said many times, was due to lower wine sale volumes in Denmark together with the earlier lost volumes in the filler services and the changes in spirits partner portfolio last year.

Speaker #2: Right. So, wrapping up Q2 with the key messages, which are, first and foremost, that our continued fit-fix-focus actions were driving Q2 comparable EBITDA growth up to 14.6%.

Speaker #2: Comparable EBITDA was up to €16 million, and the comparable EBITDA margin improved to 10 percent. Our gross margin rose to 46.7 percent of net sales.

Speaker #2: But yes, net sales declined to €161 million, which is down by 3 percent. This was expected given the market conditions. And the decline, as said many times, was due to lower wine sale volumes in Denmark together with the earlier lost volumes in the Tiller Services and the changes in the spirits partner portfolio last year.

Speaker #2: Our net cash flow from operating activities was minus €39.9 million in H1, an improvement of €13.5 million compared to the previous year.

Kirsi Puntila: Our net cash flow from operating activities was -EUR 39.9 million in H1, an improvement of EUR 30.5 million compared to the previous year. The balance sheet was clearly stronger, leverage now at 2.4. We want to leave you today with the following takeaway. We are improving profitability and financial position despite a weak market, and that is exactly what we set out to do last year on the Capital Markets Day. Looking ahead, we still expect continued structural pressure on alcohol consumption for sure, and volume pressure across all our seven operating markets. There are no changes there. The things we can control ourselves are the following facts. We continue executing Fit, Fix, and Focus rigorously. We are improving margins and the cost base, and we are also increasingly focusing on the growth actions in future.

Speaker #2: And the balance sheet was clearly stronger, leverage now at 2.4. So we want to leave you today with the following takeaway: We are improving profitability and our financial position despite a weak market.

Speaker #2: And that's exactly what we set out to do last year on the Capital Markets team. Looking ahead, we still expect continued structural pressure on alcohol consumption, for sure.

Speaker #2: And volume and pressure across all our seven operating markets—so there are no changes there. But the things we can control ourselves are the following facts.

Speaker #2: We continue executing Fit, Fix, Focus rigorously. We are improving margins and the cost base, and we are also increasingly focusing on the growth actions for the future.

Speaker #2: So, our guidance remains unchanged: comparable EBITDA of €74 to €79 million in Q2 2026, which means that we expect a decent improvement from last year, which was €75 million.

Kirsi Puntila: Our guidance remains unchanged, comparable EBITDA of EUR 74 million to EUR 79 million in 2026, which means that we expect a decent improvement from last year, which was EUR 75 million. Overall, challenging market, yes, but we are building a stronger, more resilient, and more profitable Anora one month at a time. With that, I hand over back to Milena and potential questions.

Speaker #2: So overall, challenging market, yes, but we are building a stronger, more resilient, and more profitable Anora one month at a time. So with that, I hand over back to Milena for potential questions.

Speaker #1: Thank you, Kirse Enstein. I see that we already have some questions. Please also remember that if you want to ask a question, please raise your hand to mark this.

Milena Hæggström: Thank you, Kirsi and Stein. I see that we already have some questions. Please also remember that if you want to ask a question, please raise your hand to mark this. The first question comes from SEB, Maria Wikström. Please go ahead.

Speaker #1: And the first question comes from SCB's Maria Wikström. Please go ahead.

Speaker #3: Yes. I mean, thank you for taking my questions. I have four questions. Unfortunately, I couldn't limit myself to just a few questions at that.

Maria Wikström: Yes. Thank you for taking my questions. I have four questions. Unfortunately, I couldn't limit myself to fewer questions.

Speaker #2: With the price?

Kirsi Puntila: Are we surprised?

Speaker #3: I would like to start with the guidance because, to my eyes, it looks quite conservative, as you are now €2.8 million ahead of last year after the first half of the year.

Maria Wikström: I would like to start with the guidance, because to my eyes, it looks quite conservative as you are now EUR 2.8 million ahead of last year after the H1. Just having a flat EBITDA would get you to the low end of the guidance. So why to be so conservative? What are the risks that you wouldn't see earnings growth in the H2?

Speaker #3: So just having a flat EBITDA would get you to the low end of the guidance. So why be so conservative? What are the risks that you wouldn't see earnings growth in the second half of the year?

Speaker #2: Well, if I start—be free to jump in, Stein—but, I mean, the guidance bracket is quite wide, of course: €74 to €79 million.

Kirsi Puntila: Well, if I start, feel free to jump in, Stein. But the guidance bracket is quite wide, of course, EUR 74 to 79 million. Despite very good earnings development in Q2, we do see still challenges in the market overall. The growth is not quite there yet, so there's no reason for us to change the guidance with the parameters that we are aware of at the moment.

Speaker #2: And despite very good earnings development in Q2, we still see challenges in the market overall, and the growth is not quite there yet.

Speaker #2: So so there's no change no reason for us to change the guidance with the with the parameters that we are aware of at the moment.

Speaker #3: Yes, okay. Then, first of all, congratulations on signing the letter of intent and the back already deal. Looks, I mean, very good.

Maria Wikström: Yes, okay. First of all, congratulations for signing the letter of intent in the Bacardi deal. Looks very good. I just wanted so that I understand the structure right, that given that the Swedish monopoly takes care of the distribution for all the alcohol content above 2.8 ABV, that allows you to take the RTD distribution in Sweden, whereas in Norway, you don't currently have a possibility to distribute in the retail channel, so therefore the deal doesn't include the RTDs for the Norwegian market. Is that the reasoning behind that it's different in Sweden or Norway or something else that I should know?

Speaker #3: I'm— and I just wanted, so that I understand the deal structure right, that you've given that the Swedish monopoly takes care of the distribution for all the alcohol content above 2.8% ABV.

Speaker #3: So that allows you to take the RTD distribution in Sweden versus in Norway. You don't currently have a possibility to distribute in the retail channel.

Speaker #3: So, therefore, the deal doesn't include the RTDs for the Norwegian market. So is that the reasoning behind it—it's different in Sweden or Norway—or is there something else that I should know?

Speaker #2: No, but as said, it is only a letter of intent at the moment, Maria. And of course, we have an open and regular dialogue now with the PAC Cardi team, and we're working hard to get the contract signed.

Kirsi Puntila: No, but as said, it is only a letter of intent at the moment, Maria, and of course, we have an open and regular dialogue now with the Bacardi team, and we're working hard to get the contract signed, but it's not signed just yet. So what we have discussed and negotiated up until now in the past few months is exactly what is said in the stock release, that we are working on the Swedish and Norwegian market, all channels except the grocery, i.e., the RTD segment in Norway. So this is what the negotiations are all about at the moment. But we're still very happy about obviously continuing the dialogue with Bacardi and therefore wanted to send that letter of intent already now.

Speaker #2: But it's not signed just yet. So what we have discussed and negotiated up until now in the past few months is exactly what is set in the stock release that we are working on in the Sweden, Swedish, and Norwegian markets—all channels except the grocery, i.e., the RTD.

Speaker #2: Segment in Norway. So this is what the negotiations are all about at the moment. We're still very happy about obviously continuing the dialogue with PAC Cardi, and therefore wanted to send that letter of intent already now.

Speaker #3: But hypothetically, I mean, would you have had the competence or, like, the organization to distribute also in the Norwegian grocery?

Maria Wikström: But hypothetically, would you have had competence or the strong organization to distribute also in the Norwegian grocery chain?

Speaker #2: Well, let's just say, let's just put it this way, that we have both monopoly markets and open markets in our portfolio, in the seven markets.

Kirsi Puntila: Let's just put it this way, that we have both monopoly markets and open markets in our portfolio in the seven markets. So our competencies for grocery is definitely there. Having said that, obviously in the monopoly markets, we're only building our competencies like in Finland at the moment. And right now, the negotiations are only about the channels that I mentioned in the release.

Speaker #2: So our competencies for grocery are definitely there. Having said that, obviously in the monopoly markets, we're only building our competencies – like in Finland at the moment. Right now, the negotiations are only about the channels that I mentioned in the release.

Speaker #3: That is clear. Then I wanted to ask about the fixed cost in the wine segment. I mean, according to my calculations, the fixed cost in the wine segment grew by 2.6%.

Maria Wikström: That is clear. Then I wanted to ask on the fixed cost in the Wine segment. According to my calculation, the fixed cost in the Wine segment grew by 2.6%. Given the changes in the organization, I was expecting the fixed cost in the Wine segment to decline in Q2. Is there something one-off in the costs in the Wine segment why it actually grew and not declined during Q2?

Speaker #3: And given the the changes in the organization, I was expecting the fixed cost in the wine segment to decline in the second quarter. Is there something one off in the in in the costs in the wine segment why it actually grew and not declined during Q2?

Speaker #4: Yeah, I can answer that one. Yes, there are some one-off costs, Maria, but if you look at H1, I believe that the OPEX is down by 5% during the first half of 2026.

Stein Eriksen: Yeah, I can answer that one. Yes, there are some one-off costs, Maria, but if you look at H1, I believe that the OpEx is down with 5% during the first half of 2026. You need to look at a half year perspective in order to get the right number.

Speaker #4: So you need to look at a half-year perspective in order to get the right number.

Speaker #3: Perfect. Thank you. And then finally, I wanted to touch upon I mean, you said I mean that you are currently looking a quite good barley harvest, but then at the same time, if we look at the the wheat market futures, I mean, we see that there is a likely pressure upward.

Maria Wikström: Perfect. Thank you. Finally, I wanted to touch upon, you said that you are currently looking a quite good barley harvest, but at the same time, if we look at the wheat market futures, we see that there is a likely pressure upward. So how have you prepared yourself for future raw material price hikes?

Speaker #3: So, how have you prepared yourself—I mean, for future raw material price hikes?

Speaker #4: It's a very good question. From what I have heard, the Finnish barley season has started fairly okay, so the crop has been good.

Stein Eriksen: It's a very good question. From what I have heard is that the Finnish barley season has started fairly okay. The crop has been good, the quality is good, and also the prices on Finnish barley seems to be at a fairly stable level. That being said, you are spot on. It could be highly volatile. First of all, in Finland, you have the African swine fever that potentially can affect the prices going forward. Also you have the whole wheat situation in the Black Sea. So you are correct. Right now it looks pretty okay, but it could affect our input cost going forward. That's also one of the reason why we don't change the guiding.

Speaker #4: The quality is good, and also the prices on Finnish barley seem to be at a fairly stable level. But that being said, you are spot on.

Speaker #4: It could be highly volatile. First of all, in Finland, you have the African swine fever that potentially can affect the prices going forward.

Speaker #4: And then also you have the whole wheat situation in the in in the Black Sea so so you are correct. This could right now it looks pretty okay.

Speaker #4: But it could affect our input costs going forward. And that's also one of the reasons why we don't change the guidance. Perfect.

Maria Wikström: Perfect. Thank you.

Speaker #3: Thank you.

Speaker #2: Thanks, Maria.

Kirsi Puntila: Thanks, Maria.

Speaker #3: Thank you. Then we move on with the questions. The next question is from Sanna Perälä at Nordea. Please go ahead.

Milena Hæggström: Thank you. Then we move on with the questions. The next question is from Sanna Perälä at Nordea. Please go ahead.

Speaker #5: Thank you, and thanks for the great presentations. I have a few questions, some of which have already been covered, but I'll continue. On the clear—or if you could give some color—does your guidance still expect improvement in wine, as we know it has continued weak, or does it mainly rely on the other two segments?

Sanna Perälä: Thank you, and thanks for the great presentations. I have a few questions, some already covered, but I will continue on the guidance. Just to be clear, or if you could give some color, does your guidance still expect improvement in wine? As we know it has continued weak, or does it mainly rely on the other two segments?

Speaker #2: Well, the guidance overall is based on our analysis of the Fit, Fix, and Focus strategy as such. So there are obviously different elements which are affecting the guidance.

Kirsi Puntila: Well, the guidance overall is based on our analysis of the Fit, Fix, and Focus strategy as such. There are obviously different elements which are affecting the guidance. We, of course, recognize the fact that with Wine, there is a lot of work to be done, and the Denmark business continues to be very weak, although, of course, the team is working really hard. In H2, we hope to see some improvements in the Wine segment as well, but those are already built in in the guidance. One has to remember that Q2 is only 20% of our overall business, so Q3 and Q4 are significantly bigger, and therefore there is a volatility, of course, as to the whole market trend, which still seems to be quite soft. Again, no reason for us to change the guidance at this stage.

Speaker #2: We, of course, recognize the fact that with wine there's a lot of work to be done. And the Denmark business continues to be very weak, although, of course, the team is working really hard, and in H2 we hope to see some improvements in the wine segment as well.

Speaker #2: But those are already built into the guidance. Then, of course, one has to remember that Q2 is only 20% of our overall business.

Speaker #2: So, Q3 and Q4 are significantly bigger, and therefore, there is volatility, of course, as to the whole market trend, which still seems to be quite soft. So again, no reason for us to change the guidance at this stage.

Speaker #5: All right, thank you. Well then, continuing in wine, just to clarify, were the lower volumes in Finland and Norway mainly market-driven, or did you lose some market share there?

Sanna Perälä: All right. Thank you. Continuing in Wine, just to clarify, was the lower volumes in Finland and Norway mainly market-driven, or did you lose some market share there?

Speaker #4: It was related to both. So we issued market figures in the pre-silent letter, but as you can see, the wine market both in Norway and Finland was pretty weak in Q2.

Stein Eriksen: It was related to both. We issued the market figures in the pre-silent letter, but as you can see, the Wine market, both in Norway and Finland, was pretty weak in Q2. I think it is also fair to say that we lost some market shares in both of those countries. One gain in Sweden.

Speaker #4: But I think it's also fair to say that we lost some market share in both of those countries, while gaining in Sweden.

Sanna Perälä: Yes. Thank you. If we look at the next few months or quarters, what do you think needs to happen in Wine and specifically in Denmark, in order to the strong gross margin to translate into earnings recovery?

Speaker #5: Yes, thank you. And then, if we look at the next few months or quarters, what do you think needs to happen in wine, and specifically in Denmark, in order for the strong gross margin to translate into an earnings recovery?

Speaker #2: Well, as far as Denmark is concerned, maturity of the weak performance is still in the business, as we have been communicating before.

Kirsi Puntila: Well, as far as Denmark is concerned, a maturity of the weak performance is still in the seller business, as we have been communicating before. There is some sort of campaign timings and things like that, which we hope to be seeing now happening in H2. Of course, we have also been quite transparent about white spots of the wine category. There are still segments where we are not present, where we now see, obviously, a lot of innovations in our pipeline. So it takes a little bit longer time. What we have done in Sweden is obviously extraordinary, but it has been a very long process, of course, getting into that fantastic situation where we are right now. Of course, the ambition is exactly the same for Finland, Norway, and Denmark as well.

Speaker #2: Then there's some sort of campaign timings and things like that which we hope to be seeing now happening in H2. But then, of course, we've also been quite transparent about the sort of white spots of the wine category — that is to say, segments where we are not present — where we now see, obviously, a lot of innovations in our pipeline.

Speaker #2: So, it takes a little bit longer time. I mean, what we've done in Sweden is obviously extraordinary, but it has been a very long process, of course, getting into that fantastic situation where we are right now.

Speaker #2: And of course, the ambition is exactly the same for us—Finland, Norway, and Denmark as well. If you remember the Danish wine business, if you look at the commercial side, the reasoning is very much due to the US wines, which have experienced a horrible decline.

Kirsi Puntila: If you remember the Danish wine business, if you look at the commercial side of the reasoning, it is very much due to the US wines, which have experienced a horrible decline due to the situation in Greenland and the Danes objecting to buy American wines. On top of that, we have other two markets, Finland and Norway, where we are expecting to see growth, also from launching new wines and introducing wines in the segments where we are not present at the moment. But that takes a bit longer time, especially when you talk about channels like monopolies. You cannot just go and launch it when you wish. So there are certain processes in order for you to get those products into the distribution. So that takes a bit longer time. But that ambition level is of course there to also turn around wine.

Speaker #2: Thanks to, or due to—rather, due to the situation in Greenland and the Danes objecting to buying American wines. But on top of that, we have two other markets, Finland and Norway, where we are expecting to see growth, also from launching new wines and introducing wines in segments where we are not present at the moment.

Speaker #2: But that takes a bit longer time, especially when you talk about channels like monopolies. You can't just go and launch it when you wish.

Speaker #2: So there are certain processes in order for you to get those products into the distribution, so that takes a bit longer time.

Speaker #2: But that's ambition level is is of course there to also turn around wine. And maybe lastly if you remember six months ago less than six months ago I think it was we had a new SVP starting Anna Möller who's working really hard with her team now to turn around wine as well.

Kirsi Puntila: Maybe lastly, if you remember 6 months ago, less than 6 months ago, I think it was, we had a new SVP starting, Anna Möller, who is working really hard with her team now to turn around wine as well.

Speaker #5: All right, cool. That's very clear. Then, finally, regarding Spirits, that EBITDA improvement is quite nice there, and margins are very strong at 20%.

Sanna Perälä: All right, cool. That is very clear. Then finally, regarding spirits, that EBITDA improvement is quite nice there, and margins are very strong at 20%. Is this a level we should expect going forward, or do you still have more levers to pull regarding margins?

Speaker #5: Is this a level we should expect going forward, or do you still have more levers to pull regarding margins?

Speaker #2: It was an amazing, exceptionally amazing quarter, of course partly due to the fact that we have less and less of the impact of those—or we have the impact of the lost partners, with partner business usually being a little bit lower in profitability than our own brands.

Kirsi Puntila: It was an exceptionally amazing quarter, of course, partly due to the fact that we have less and less of the impact of those. Or we have impact of the lost partners, which partner business usually being a little bit lower in profitability than our own brands. We are constantly reviewing our spirits portfolio and making sure that we have the best possible mix for the profitability. I cannot comment on future profitability and things happening for the rest of the year as such. But of course, the ambition is that we are growing cross-merching also in spirits in future. But that remains to be seen, because it is a little bit also out of our hands, depending on the partners that we gain. As you know, saw the letter of intent of Bacardi, which of course we are super excited about if that happens.

Speaker #2: I mean, we're constantly reviewing our spirits portfolio and making sure that we have the best possible mix for profitability. I cannot comment on future profitability and things happening for the rest of the year as such.

Speaker #2: But, of course, the ambition is that we are growing gross margin also in spirits in the future. But that remains to be seen because it's also a little bit out of our hands, depending on the partners that we gain, as you know.

Speaker #2: So the lead of intent of Bacardi, which of course we are super excited about if that happens, but also the whole sort of portfolio mix play, then the future quarters will show how that develops.

Kirsi Puntila: The whole sort of a portfolio mix play, then the future quarters will show how that develops.

Speaker #4: If I can just comment on two things, Casey. First of all, as you, Casey, already mentioned, of course, the partner losses that we had explain quite a lot of the decline we had in spirits in Q1.

Stein Eriksen: If I can just comment two things, Kirsi. First of all, as Kirsi already mentioned, of course, the partner losses that we had explained quite a lot of the decline we had in spirits in Q1. In Q2, it was only half of the explanation that we had in Q1, and now in Q3 and Q4, those effects will naturally then disappear on top line. But then also remember that we had lower gross margins on those partners. So you will potentially see some lower gross margin going forward due to then the mix effects.

Speaker #4: In Q2, it was only half of the explanation that we had in Q1, and now in Q3 and Q4, those effects will naturally then disappear from the top line.

Speaker #4: But then also remember that we had lower gross margins on those partners, so you may potentially see some lower gross margin going forward due to the mix effects.

Speaker #2: Exactly.

Kirsi Puntila: Exactly.

Speaker #5: Okay, thank you. I have no further questions.

Sanna Perälä: Okay, thank you. I have no further questions.

Speaker #1: Thank you, Sanna. And then, moving on to Matti Kaurala from OP. Please go ahead.

Milena Hæggström: Thank you, Sanam. Then moving on to Matti Kaurola from OP. Please go ahead. Hello, Matti.

Speaker #2: Hello Matti.

Speaker #4: Hello. Can you hear me properly? Yeah. A couple of questions still regarding the spirits, and I think Sana just stole my previous—my first question. But then, regarding the sales mix...

Matti Kaurola: Hello. Can you hear me properly? Yeah. A couple of questions still, regarding the spirits. I think Sanam just stole my first question, but then regarding the sales mix. Could you a little bit open up, because you've been growing there or declining slower than the market. So I think the growth pockets like RTD. What is their share of the total sales, and how much then monopoly is then if you think about the first product mix and then the channel mix?

Speaker #4: So do you a little bit open up, like, because you've been growing there or declining slower than the market? So, I think the growth pockets, like RTD—so what is their share of the total sales? And how much, then, monopoly is there? If you think about the first product mix, and then the channel mix.

Speaker #2: Well, overall, the share of monopoly still, of course, is a big part of the maturity of the business for Anora as a whole. Then, every year, we have increased the share of low and no-alcoholic beverages.

Kirsi Puntila: Well, overall, the share of monopoly is still, of course, a big majority of the business for Anora as a whole. Then, every year we have increased the share of low and no alcoholic beverages. We don't give out the exact amount of how much of that total spirit sales is from the low and no alcohol. It is more now, I think we're talking total already. We have done that in the sustainability report, that we're talking about a fairly sizable business already, but one has to remember that the low alcoholic beverages, the gross margins are lower than in the spirits, but that's what the consumers are expecting us to do. The consumer preferences have changed quite dramatically and that's where we want to play as well. So, in future, we have an innovation pipeline full of low alcoholic beverages, and one has to look at the segments.

Speaker #2: We don't give out the exact amount of how much of that total spirit sales is from the low and no-alc.

Speaker #2: It is more now I think we're talking total already I mean we have done that in the sustainability report that we're talking about fairly sizable business already but that one has to remember that that the low alcoholic beverages are not as I mean gross margins are lower than than in this in the spirits but that's what the consumers are expecting us to do.

Speaker #2: I mean the consumer preferences have changed quite dramatically and and that's where we want to play as well. So in future we are we have a pipeline innovation pipeline full of low alcoholic beverages and one has to look at the segments.

Speaker #2: I mean liqueurs for example are growing double digit still and and the and the and the good news in the spirit segment overall is that our own brands are actually quite healthy and doing well and we've been able to expand big brands to different segments.

Kirsi Puntila: Liqueurs, for example, are growing double digits still. The good news in the spirit segment overall is that our own brands are actually quite healthy and doing well, and we've been able to expand big brands to different segments. Koskenkorva, as an example, or Jaloviina for that matter, have been introducing lower alcoholic variants in the portfolio. So we are constantly working on that mix, but definitely getting more aggressively to the lower alcoholic beverages and also the RTDs.

Speaker #2: So, Koskenkorva as an example, or Jaloviina for that matter, have been introducing lower alcoholic variants in the portfolio. We are constantly working on that mix, but definitely getting more aggressive with lower alcoholic beverages and also the RTDs.

Speaker #4: Okay, thank you. Then, still going to the wines—could you remind us, what is the impact of the lost filler business going forward?

Matti Kaurola: Okay. Thank you. Then maybe still going to the wines. Could you remind us still what is the impact of the lost filler business going forward? You said that it is decreasing the impact, but what we should expect for Q3, Q4?

Speaker #4: So you said that it's decreasing the impact, but what should we expect for Q3 and Q4?

Speaker #3: Yeah, I can give you some numbers. Both the wine and the lost partners in 2025: in Q1, it was €6 million; in Q2, it was €3 million; in Q3, we expect €1.5 million; and then in Q4, it's basically zero.

Stein Eriksen: Yeah, I can give you some numbers. Both the wine and the lost partners in 2025. In Q1 it was EUR 6 million, in Q2 it was EUR 3 million, in Q3 we expect EUR 1.5 million, and then in Q4 it is basically zero.

Speaker #4: And that's including the spirits also. Yeah. Yeah. Yeah, okay. And then, if we think about American wines or the decrease in US wine sales...

Matti Kaurola: That is including the spirits also?

Stein Eriksen: Exactly, yes.

Matti Kaurola: Yeah. Okay. If we think about these American wines or the decrease of the US wine sales, how much that impact could be and what we should expect going forward?

Speaker #4: So, how much could that impact be, and what should we expect going forward?

Speaker #2: Go ahead.

Speaker #3: I don't have the exact number on the American wine, but it explains quite a lot because.

Stein Eriksen: I do not have the exact number on the American wine, but it explains quite a lot.

Speaker #2: You were like, we obviously have a big market share in Denmark—that's open information. We have a big market share in US wines, and the US wines in the first half of the year have declined by 20%.

Kirsi Puntila: We have a big market share in Denmark. That is open information. We have a big market share of the US wines, and the US wines in the H1 of the year have declined by 20%. Then, of course, it means that we are constantly reviewing our portfolio, looking at wines from a different origin, but that takes some time. We cannot change the whole portfolio overnight, so it takes a little bit longer time. Just having looked at the pipeline for the rest of the year and how we are now intensifying the campaigns in the retail, whether it is Coop or REMA 1000 selling, there is obviously a lot of activity in Denmark going on, but it takes some more time.

Speaker #2: And then, of course, it means that we're constantly reviewing our portfolio, looking at wines from different origins, but that takes some time. So we can't change the whole portfolio overnight.

Speaker #2: So it takes a little bit longer time. But but there's just having looked at the pipeline for the rest of the year and how we are now intensifying the campaigns in the retail whether it's Cooper, Reima or Selling there's obviously a lot lot lot lot of activity in Denmark going going on but it takes some some more time.

Speaker #4: Okay, then one more question. I'd like to challenge Stein about the one-offs. They are quite substantial, and as your program still continues next year, why do you consider that those costs are one-offs and not happening next year as well?

Matti Kaurola: Okay. Then one more question. I would like to challenge Stein Eriksen about the one-offs. They are quite substantial. As your program still continues next year, why do you consider that those costs are one-offs and not happening next year as well?

Speaker #3: Yeah. No good question because we don't we don't expect so much one off cost next year. But but we will have some more one off cost also in in second half.

Stein Eriksen: Yeah, no, good question, because we don't expect so much one-off cost next year, but we will have some more one-off cost also in H2. I believe it will be around the same level as in H1 of 2026. But going forward, from 2027 onwards, there should be much lower one-off costs.

Speaker #3: I believe it will be around the same level as in the first half of 2026. But going forward, from 2027 our numbers there should be much lower one-off costs.

Speaker #4: So, you don't expect the same cost items to kind of happen again next year. What are now considered to be one-offs?

Matti Kaurola: So you don't expect the same cost items to happen again next year? What are now considered to be one-offs.

Speaker #3: Not at these levels, no. Absolutely not, no.

Stein Eriksen: Not at these levels, no. Absolutely not, no.

Speaker #4: Okay, okay. And are those like consulting success fees or something like that?

Matti Kaurola: Okay. Are those consulting success fees or something like that?

Speaker #3: Among other things. Yes. Yes.

Stein Eriksen: Among other things, yes.

Matti Kaurola: Yeah. Okay.

Speaker #4: Yeah. Okay. Right. No further questions. Thanks.

Stein Eriksen: Yeah.

Matti Kaurola: All right. No further questions. Thanks.

Speaker #2: Thank you.

Kirsi Puntila: Thank you.

Speaker #1: Thank you, Matti. Moving on to Rauli Juha from Inderes. Please go ahead.

Milena Hæggström: Thank you, Matti. Moving on with Rauli Juva from Inderes. Please go ahead.

Speaker #4: Yeah. Hi all. One question left from from me related to the wine business. And the filler business you have now now lost is is that the kind of business that you would like to kind of get back or get get get more or or do do you want to stay out of out of that low margin business and focus on on more of your own friends.

Rauli Juva: Yeah. Hi, all. One question left from me, related to the wine business and the filler business you have now lost. Is that the kind of business that you would like to get back or get more, or do you want to stay out of that low margin business and focus on more of your own brands?

Speaker #2: Of course we do. Of course we do. And obviously, it's part of the tactics and focus areas within the workstreams that we are working on.

Kirsi Puntila: Of course we do. Obviously, it is part of the Fit, Fix, and Focus part of the work streams that we are working on. It takes, again, a lot of work and time to do that, but we have a factory, and that is one of our competitive advantages, that we can actually do near filling in the Køge operations in Denmark. Absolutely, there is a team working hard on getting further filler business also. This is the nature of the business that you also do a lot of that when you have factories that are capable of doing it. Of course our ambition is to also get back more of that filler business, yes.

Speaker #2: It takes, again, a lot of work and time to do that. But, I mean, we have a factory where we can, and that's one of our competitive advantages—that we can actually do a near filling in the Kirkja operations in Denmark.

Speaker #2: So, absolutely, there's a team working hard on getting further, further filler business. Also, and this is the nature of the business, that you also do a lot of that when you have factories that are capable of doing it.

Speaker #2: So, of course, our ambition is to also get back more of that filler business. Yes.

Speaker #4: Okay. That's good. Thanks.

Rauli Juva: Okay. That is clear. Thanks.

Speaker #1: Thank you. I don't see any more questions here, but if you have any, please mark that by raising your hand. Some time for final questions.

Milena Hæggström: Thank you. I do not see any more questions here, but if you have any, please mark that by raising your hand. Some time for final questions. It seems that we do not have any more questions, so thank you to the presenters and thank you all for participating. Please also be reminded that our next scheduled event will be the Q3 report on 30 October. Look forward to seeing you then. Thank you.

Speaker #1: It seems that we do not have any more questions. So thank you to the presenters, and thank you all for participating. Please also be reminded that our next scheduled event will be the Q3 report on the 30th of October.

Speaker #1: So, I look forward to seeing you then. Thank you.

Kirsi Puntila: Thank you.

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Q2 2026 Anora Group Oyj Earnings Call

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