Q2 2026 Cheffelo AB Publ Earnings Call

August 20, 2026

Speaker #1: Each other.

Speaker #2: Welcome to the Cheffelo Q2 2026 conference call. If you wish to ask a question, please dial #Q5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #Q6 on your telephone keypad.

Operator: Welcome to Cheffelo Q2 2026 conference call. If you wish to ask a question, please dial #5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #6 on your telephone keypad. If you have any written questions, you can use the form below. Now I will hand the conference over to the speakers, CEO Walker Kinman and CFO Erik Bergman. Please go ahead.

Operator: Welcome to Cheffelo Q2 2026 conference call. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. If you have any written questions, you can use the form below. Now I will hand the conference over to the speakers, CEO Walker Kinman and CFO Erik Bergman. Please go ahead.

Speaker #2: If you have any written questions, you can use the form below. Now, I will hand the conference over to the speakers, CEO Walker Kinman and CFO Eric Bergman.

Speaker #2: Please go ahead.

Speaker #1: All right. Good morning to everyone joining us. Thank you for your interest in Cheffelo, and welcome again to this presentation of our second quarter results.

Walker Kinman: All right. Good morning to everyone joining us. Thanks for your interest in Cheffelo, and welcome again to this presentation of our second quarter results. My name is Walker Kinman, CEO of Cheffelo. I am joined by Erik Bergman, our CFO. I will take a few minutes to give you a short intro on the company and walk you through our prepared remarks on the second quarter development before Erik takes you through the financials. We will then take your questions, and you have heard how you can set those. Let us start with a little about Cheffelo. Every evening, families across the Nordics face a similar question: what is for dinner? Cheffelo solves that daily moment for tens of thousands of households every week, and our ambition is to do it better than anyone else. We have been pioneers in the meal kit category for more than two decades.

Speaker #1: My name is Walker Kinman, CEO of Cheffelo. I'm joined by Eric Bergman, our CFO. I will take a few minutes to give you a short introduction on the company and walk you through our prepared remarks on the second quarter developments before Eric takes you through the financials.

Speaker #1: We'll then take your questions, and you've heard how you can submit those. So, let's start with a little about Cheffelo. Every evening, families across the Nordics face a similar question: what's for dinner?

Speaker #1: Cheffelo solves that daily moment for tens of thousands of households every week, and our ambition is to do it better than anyone else. We have been pioneers in the meal kit category for more than two decades.

Speaker #1: We run a proven, profitable, dividend-paying business, and we operate trusted local brands in each market. Both of ours are in Norway: Lina is Montcassis in Sweden, and Rathnett in Denmark.

Walker Kinman: We run a proven, profitable, dividend-paying business, and we operate trusted local brands in each market, Godtlevert in Norway, Linas Matkasse in Sweden, and RetNemt in Denmark. At the heart of our service is a simple value proposition. We provide meals that unite families. By removing the stress of planning, shopping, and deciding what to cook, we make it easier to put nutritious, well-balanced, and great-tasting food on the table. With the widest range of recipes in the meal kit category, tailored to different preferences and dietary needs, we keep customers engaged over time. Because this whole experience is powered by our own technology platform and data, we can keep improving, turning everyday dinners into recurring revenue, strong loyalty, and attractive unit economics for our investors. Our business model is built on a demand-driven subscription model for meal kits.

Speaker #1: But the heart of our service is a simple value proposition: we provide meals that unite families. By removing the stress of planning, shopping, and deciding what to cook, we make it easier to put nutritious, well-balanced, and great-tasting food on the table.

Speaker #1: With the widest range of recipes in the meal kit category, tailored to different preferences and dietary needs, we keep customers engaged over time. And because this whole experience is powered by our own technology platform and data, we can keep improving—turning everyday dinners into recurring revenue, strong loyalty, and attractive unit economics for our investors.

Speaker #1: Our business model is built on a demand-driven, subscription model for meal kits. Customers choose their recipes in advance, which lets us plan purchases tightly, keep inventories low, and significantly reduce food waste.

Walker Kinman: Customers choose their recipes in advance, which lets us plan purchases tightly, keep inventories low, and significantly reduce food waste. One of our key competitive advantages is personalization at scale. We offer the widest recipe selection in our markets, with flexible portion sizes from two to six persons and recipes tailored to different needs and preferences. Our goal is to give customers the right selection, not endless scrolling, so they can find what works for their household without being overwhelmed by choice. This is enabled by our in-house technology platform and deep data analytics capabilities. We use custom-built advanced algorithms and machine learning models to pre-select and recommend recipes, forecast demand, and plan production. This allows us to run a highly personalized service with efficiency and discipline. Every order is produced individually in our own fulfillment centers using tech-enabled processes and supported by a strong, scalable Nordic supply chain.

Speaker #1: One of our key competitive advantages is personalization at scale. We offer the widest recipe selection in our markets, with flexible portion sizes from two to six persons, and recipes tailored to different needs and preferences.

Speaker #1: Our goal is to give customers the right selection—not endless scrolling—so they can find what works for their household without being overwhelmed by choice.

Speaker #1: This is enabled by our in-house technology platform and deep data analytics capabilities, where we use custom-built advanced algorithms and machine learning models to pre-select and recommend recipes, forecast demand, and plan production.

Speaker #1: This allows us to run a highly personalized service with efficiency and discipline. Every order is produced individually in our own fulfillment centers using tech-enabled processes and supported by a strong, scalable Nordic supply chain.

Speaker #1: Together, this creates a business model that is difficult to copy, is structurally efficient, and is well positioned to continue delivering profitable growth. Turning to slide 6, let's talk about some of the key figures for the quarter.

Walker Kinman: Together, this creates a business model that is difficult to copy, it is structurally efficient, and it is well-positioned to continue delivering profitable growth. Turning to slide 6, let us talk about some of the key figures for the quarter. It really feels like the H1 of 2026 has been a fantastic period for us. Strategic choices made over the last several years have contributed to directional clarity. It has sharpened operational execution, further leading to our strong financial results. As I wrote in my comments in the report this morning, the clearest proof point we have of this now is Norway, which I will come back to shortly. Cheffelo's net sales growth for the H1 was 18%, which hit the high end of our expectations. This is the first time in a while that we have gotten a bit of a tailwind on the accounting side from a strengthening Norwegian krone.

Speaker #1: So it really feels like the first half of 2026 has been a fantastic period for us. The strategic choices made over the last several years have contributed to our directional clarity.

Speaker #1: It's sharpened operational execution, further leading to our strong financial results. As I wrote in my comments in the report this morning, the clearest proof point we have of this now is Norway, which I'll come back to shortly.

Speaker #1: Cheffelo's net sales growth for the first half was 18%, which hit the high end of our expectations. This is the first time in a while that we have gotten a bit of a tailwind on the accounting side from a strengthening Norwegian krone.

Walker Kinman: Cheffelo's net sales growth for the H1 was 18%, which hit the high end of our expectations. This is the first time in a while that we have gotten a bit of a tailwind on the accounting side from a strengthening Norwegian krone.

Speaker #1: So, in local currency, the growth rate was 17.5%. Norway continues to headline the growth story, but we are also seeing encouraging developments in Denmark, while Sweden again delivered solid double-digit growth.

Walker Kinman: In local currency, the growth rate was 17.5%. Norway continues to headline the growth story, but we are also seeing an encouraging development in Denmark, while Sweden again delivered solid double-digit growth. Our operational leverage means that growth in the H1 also led to record profitability with over a 90% increase in EBIT over the period versus last year. When we say operational leverage, let me guide you specifically on what that meant over the H1. First of all, our central functions costs were flat on a consolidated basis, which is well under inflation in local currency and emphasizes the team's ability to grow the business with existing talents and capabilities in place. Leverage can be further seen on the fulfillment side, with contribution margin rising back to 31% on a last 12-month basis, despite investments in further developing our offering.

Speaker #1: Our operational leverage means that growth in the first half also led to record profitability, with over a 90% increase in EBIT over the period versus last year.

Speaker #1: When we say operational leverage, let me guide you specifically in what that meant over the first half. First of all, our central functions costs were flat on a consolidated basis, which is well under inflation in local currency, and emphasizes the team's ability to grow the business with existing talent and capabilities in place.

Speaker #1: Leverage can be further seen on the fulfillment side, with contribution margin rising back to 31% on a last twelve-month basis, despite investments in further developing our offering.

Speaker #1: This was a 0.5 percentage point increase in contribution margin over the first half. These product and service investments, and the consolidation of brands in Norway, have both an effect on reducing churn and increasing purchase frequency, while removing structural costs related to promoting a unique brand.

Walker Kinman: This was a 0.5 percentage points increase in contribution margin over the H1. These product and service investments and the consolidation of brands in Norway have both an effect on reducing churn and increasing purchase frequency while removing structural costs related to promoting a unique brand. The net result is that we achieved our 18% growth over the H1 with an absolute decline in sales and marketing expenses and a relative decline in discount vouchers. We continue to see decent momentum at the start of the Q3. As you might remember, we saw 27% local currency growth in Q3 last year, driven by a surge in new customer acquisition, where we had a 64% increase in Norway alone. Part of that was related to the successful new partnership with SAS EuroBonus launched in August, which has no new equivalent this year.

Speaker #1: The net result is that we achieved our 18% growth over the first half, with an absolute decline in sales and marketing expenses, and a relative decline in discount vouchers.

Speaker #1: We continue to see decent momentum at the start of the third quarter. As you might remember, we saw 27% local currency growth in Q3 last year, driven by a surge in new customer acquisition, where we had a 64% increase in Norway alone.

Speaker #1: Part of that was related to the successful new partnership with South Sierra Bonus, launched in August, which has no equivalent this year. As we have pointed out on multiple occasions, our business can show bumpy growth, especially if new customer acquisition rates vary.

Walker Kinman: As we have pointed out on multiple occasions, our business can show bumpy growth, especially if new customer acquisition rates vary. As we look at the H2 of 2026, we expect growth to be primarily driven by improved customer behavior dynamics rather than an absolute increase in acquisition rates. We will also remind you that for our business, the Q3 experiences significant volume decline in July and early August due to traditional Scandinavian vacation periods, while we also ramp acquisition and reactivation costs moving into the H2. Let us take a closer look at where we are at in each market on slide 7. As we noted earlier, Norway continues to headline our growth with a 22.3% growth in local currency over the H1. Norway accounts for 53% of our net sales, so this high growth also has an overweight effect on our top line.

Speaker #1: As we look at the second half of 2026, we expect growth to be primarily driven by improved customer behavior dynamics, rather than an absolute increase in acquisition rates.

Speaker #1: We'll also remind you that, for our business, the third quarter experiences a significant volume decline in July and early August due to traditional Scandinavian vacation periods, while we also ramp up acquisition and reactivation costs moving into the second half.

Speaker #1: So let's take a closer look at where we're at in each market on slide 7. As we noted earlier, Norway continues to headline our growth with 22.3% growth in local currency over the first half.

Speaker #1: Norway accounts for 53% of our net sales, so this high growth also has an outsized effect on our top line. The Norwegian market, which grew at around 39% in local currency in Q3 last year, continues to grow after this remarkable first half development, and we remain optimistic on the future growth trajectory moving into the second half, but clearly at a lower level.

Walker Kinman: The Norwegian market, which grew at around 39% in local currency in Q3 last year, continues to grow after this remarkable H1 development, and we remain optimistic on the future growth trajectory moving into the H2, but clearly at a lower level. Sweden growth increased to 14.3% over the H1, which was up from single digits in the same period last year. This was almost 5 percentage points ahead of the Swedish Food Retail Index, which captures the wider online sales of groceries in the Swedish market. The market also sticks out right now based on the latest Consumer Confidence Indicator, which showed a sharp improvement in July and reached its highest level since January of last year. As with Norway, we continue to experience decent momentum in Sweden moving into the H2 and are likely to see growth in these two markets converging.

Speaker #1: Sweden's growth increased to 14.3% over the first half, which was up from single digits in the same period last year. This was almost five percentage points ahead of the Sweden Online Grocery Index, which caps the wider online sales of groceries in the Swedish market.

Speaker #1: The market also stands out right now based on the latest consumer confidence survey, which showed a sharp improvement in July and reached its highest level since January of last year.

Speaker #1: As with Norway, we continue to experience decent momentum in Sweden moving into the second half, and are likely to see growth in these two markets converging.

Speaker #1: As with Norway and Sweden, our business in Denmark has also shown an acceleration in growth. What stands out in Denmark is this shift from a small contraction in the first half of last year to 7.6% growth in local currency this year.

Walker Kinman: As with Norway and Sweden, our business in Denmark has also shown an acceleration in growth. What stands out in Denmark is this shift from small contraction in the H1 of last year to a 7.6% growth in local currency this year. This comes from both a modest increase in delivery volumes and a higher average order value. We remain cautiously optimistic about the effect the changes we have introduced will have on our ability to accelerate growth in Denmark and build a long-term sustainable meal kit business. That said, we are still seeing aggressive discounting continuing in Denmark and even the withdrawal of Nemlig from the meal kit market. Combined with weak consumer sentiment, we are patient in our approach to Denmark and are not looking for any short-term bounce on growth. Let's continue a bit with Norway on the next slide.

Speaker #1: This comes from both a modest increase in delivery volumes and a higher average order value. We remain cautiously optimistic about the effect the changes we have introduced will have on our ability to accelerate growth in Denmark and build a long-term, sustainable meal kit business.

Speaker #1: That said, we are still seeing aggressive discounting continue in Denmark, and even the withdrawal of Nemlig from the meal kit market. Combined with weak consumer sentiment, we're patient in our approach to Denmark and are not looking for any short-term bounce in growth.

Speaker #1: Let's continue a bit with Norway on the next slide. We were very happy to be able to confirm over the summer that we have regained our market leadership in Norway, based on publicly filed accounts for 2025.

Walker Kinman: We were very happy to be able to confirm over the summer that we have regained our market leadership in Norway based on publicly filed accounts for 2025. Local currency growth last year of 24% underlined the attractiveness of our offering. We further took the step to acknowledge that driving two brands in the market was sub-optimizing both, and with that, made a bold move to consolidate into a single brand, Godtlevert. That consolidation has proven to be exactly the right move and not only has seen a very successful migration of active customers, but also helped us re-attract many previously inactive Adams Matkasse customers to try Godtlevert. It also simplified operations in a way that unlocked the ability to expand our menu even further to 150 recipes on a weekly basis and increase the level of personalization our customers experience.

Speaker #1: Local currency growth last year of 24% underlined the attractiveness of our offering. We further took the step to acknowledge that driving two brands in the market was sub-optimizing both, and with that, made a bold move to consolidate into a single, leveraged brand.

Speaker #1: That consolidation has proven to be exactly the right move, and not only has it seen a very successful migration of active customers, but it has also helped us re-attract many previously inactive Adams customers to try both leveraged.

Speaker #1: It also simplified operations in a way that unlocked the ability to expand our menu even further to 150 recipes on a weekly basis, and increase the level of personalization our customers experience.

Speaker #1: This, in turn, has contributed to higher onboarding and retention rates, increased order frequency, and higher average order values, all of which have supported growth. Furthermore, because the consolidation eliminated the need to maintain certain structural costs associated with two brands, a large portion of the marketing efficiency improvements occurred in Norway, where we have also reduced discounts on an absolute basis over the first half.

Walker Kinman: This in turn has contributed to higher onboarding and retention rates, increased order frequency, and average order values, which has supported growth. Furthermore, because the consolidation eliminated the need to maintain certain structural costs associated with two brands, a large portion of the marketing efficiency improvements happened in Norway, where we have also reduced discounts on an absolute basis over the H1. Let's shift briefly to the Finnish market on slide 9 and share where we are at with the pilot. As of yesterday, our website is live with first deliveries in Helsinki region planned for early September. The project to prepare for the pilot has gone well and we are happy to introduce our full range of 150 weekly recipes in portion sizes from two to six persons to Finnish households.

Speaker #1: Let's shift briefly to the Finnish market on slide 9 and share where we are at with the pilot. As of yesterday, our website is live, with first deliveries in the Helsinki region planned for early September.

Speaker #1: The project to prepare for the pilot has gone well, and we're happy to introduce our full range of 150 weekly recipes in portion sizes from two to six persons to Finnish households.

Speaker #1: As with any new undertaking, we still don't know what we don't know. But fortunately, we can control for many of the most complicated components from day one.

Walker Kinman: As with any new undertaking, we still don't know what we don't know, but fortunately, we can control for many of the most complicated components from day one. This means that deliveries will originate in Sweden with one of our world-class meal kit fulfillment centers, which is already today operating at scale and lives and breathes operational excellence. It means that we have a stable fulfillment environment together with well-established supply chains, which gives us both exceptional control on input costs and a deep understanding of the interplay between menu dynamics and unit economics. It also means that our data-driven feedback culture supports iterative learning, and as we engage with Finnish customers, we fully expect adjustments that will further help us in our ambition to solve dinner better than anyone else. In Finland, we're debuting Cheffelo as a direct-to-consumer brand.

Speaker #1: This means that deliveries will originate in Sweden with one of our world-class meal kit fulfillment centers, which is already operating at scale today and lives and breathes operational excellence.

Speaker #1: It means that we have a stable fulfillment environment, together with well-established supply chains, which gives us both exceptional control of input costs and a deep understanding of the interplay between menu dynamics and unit economics.

Speaker #1: It also means that our data-driven feedback culture supports iterative learning, and as we engage with Finnish customers, we fully expect adjustments that will further help us in our ambition to solve dinner better than anyone else.

Speaker #1: In Finland, we're debuting Cheffelo as a direct-to-consumer brand. For those of us who get meal kit deliveries every week in Norway, Sweden, and Denmark, we've already gotten a feel for this brand identity, which is now aligned across the Nordics.

Walker Kinman: For those of us who get meal kit deliveries every week in Norway, Sweden, and Denmark, we've already gotten a feel for this brand identity, which is now aligned across the Nordics. Let's look closer at that on the next page. Our brands now share one refreshed identity across every market. This is not a change in strategy. It lines the brands up behind what we already do best, solving dinner with meals that unite families. What the refresh does change is our appearance and how we speak to our target market. The new brand identity is intended to come across like a helpful friend, modern, warm, and a little bit playful, but always there to make everyday life easier. It has been designed intentionally to appeal to a younger and wider audience. It centers on the moment around the table with one simple promise, Cheffelo is for all tables.

Speaker #1: Let's look closer at that on the next page. Our brands now share one refreshed identity across every market. This is not a change in strategy.

Speaker #1: It lines the brands up behind what we already do best: solving dinner with meals that unite families. What the refresh does change is our appearance and how we speak to our target market.

Speaker #1: The new brand identity is intended to come across like a helpful friend—modern, warm, and a little bit playful—but always there to make everyday life easier.

Speaker #1: It has been designed intentionally to appeal to younger and wider audiences. It centers on the moment around the table with one simple promise: Cheffelo is for all tables.

Speaker #1: The bolder palette, and the brighter yellow in particular, help us stand out in a crowded market and make our brands easier to recognize and remember.

Walker Kinman: The bolder palette and the brighter yellow in particular helps us stand out in a crowded market and makes our brands easier to recognize and remember. Cheffelo is committed to the idea that a healthy future for all of us begins around the table, and we exist to help make that happen. Part of our job in solving dinner is also in making it easier to understand how our choices affect the world around us. I'd like to turn to the next page and briefly mention one of our latest releases. When you're in a business that has food as a central component, it is the farming of the ingredients that drive the vast majority of climate impact. We are working hard to solve dinner, and in that spirit, are trying to nudge, but not judge how customers choose to eat.

Speaker #1: Cheffelo is committed to the idea that a healthy future for all of us begins around the table, and we exist to help make that happen.

Speaker #1: Part of our job in solving dinner is also making it easier to understand how our choices affect the world around us. I'd like to turn to the next page and briefly mention one of our latest releases.

Speaker #1: When you're in a business that has food as a central component, it is the farming of the ingredients that drives the vast majority of climate impact.

Speaker #1: We are working hard to solve dinner and, in that spirit, are trying to nudge, but not judge, how customers choose to eat. By providing clear information at the recipe level, we can help highlight how CO2 equivalent emissions are affected by what we eat, and we're the first Nordic meal kit company to make this information available on all of our recipes.

Walker Kinman: By providing clear information at the recipe level, we can help highlight how CO2 equivalent emissions are affected by what we eat, and we're the first Nordic meal kit company to make this information available on all of our recipes. The great news is that over 60% of Cheffelo's menu is already classified as low impact, which gives customers plenty of options if they're inspired to make changes. With that, I'll now hand it over to Erik to take us through the financials and summarize our outlook for the upcoming year.

Speaker #1: The great news is that over 60% of Cheffelo's menu is already classified as low impact, which gives customers plenty of options if they're inspired to make changes.

Speaker #1: With that, I'll now hand it over to Eric to take us through the financials and summarize our outlook for the upcoming year.

Speaker #2: Thank you, Walker, and good morning, everyone. The second quarter was a strong quarter for Cheffelo, with growth accelerating and profitability reaching new records. But let's start with net sales.

Erik Bergman: Thank you, Walker, and good morning, everyone. The Q2 was a strong quarter for Cheffelo, with growth, x-rate and profitability reaching new records. Let's start with net sales. Net sales grew by 27% in the Q2 or 23.8% adjusted for currency effects. The Q2 did benefit from a positive comparison effect related to Easter, as Easter occasions were fully in the Q2 last year, but moved partly into the Q1 this year. Since a higher share of customers typically pause deliveries during holidays, this shift affects comparability between the quarters. We do not publish an Easter adjusted number, but instead, to give you a fair view of the underlying performance, I will focus my comments mostly on the H1.

Speaker #2: Net sales grew by almost 27% in the second quarter, or 23.8% adjusted for currency effects. The second quarter did benefit from a positive comparison effect related to Easter, as Easter vacations were fully in the second quarter last year but moved partly into the first quarter this year.

Speaker #2: Since a higher share of customers typically paused deliveries during holidays, this shift affects comparability between the quarters. We don't publish an Easter-adjusted number, but instead, to give you a fair view of the underlying performance, I will focus my comments mostly on the first half.

Speaker #2: First-half growth came in at 18%, right at the top end of the 14% to 18% range that we talked about in our Q1 report.

Erik Bergman: H1 growth came in at 18%, right at the top end of the 14% to 18% range that we talked about in our Q1 report, and we are really pleased to see that result. Looking at the drivers behind it, active customers grew by 9.6% end of the period, supported by improved retention rates and good new customer inflow. Average order value increased by 4.8% in the H1, driven by price adjustments and a successful mix shift towards meal kits with more recipes and more portions. As a last note, I also want to mention the currency effects that we saw in the quarter. As Norway made up about 53% of our net sales, and the Norwegian nok has strengthened against our reporting currency in Swedish krona. This explains why the almost 24% growth in local currency is 27% in reported currency.

Speaker #2: And we are really pleased to see that result. Looking at the drivers behind it, active customers grew by 9.6% at the end of the period, supported by improved retention rates and good new customer inflow.

Speaker #2: Average order value increased by 4.8% in the first half, driven by price adjustments and a successful mix shift towards meal kits, with more recipes and more portions.

Speaker #2: And as a last note, I also want to mention the currency effect that we saw in the quarter. As Norway made up about 53% of our net sales, and the Norwegian NOK has strengthened against our reporting currency, the Swedish SEK, this explains why the almost 24% growth in local currency is 27% in reported currency.

Speaker #2: All in all, we saw good underlying growth momentum, with double-digit growth and our top-line metrics pointing in the right direction. So, let's move on to a look at our profitability, starting with the contribution margin.

Erik Bergman: All in all, we saw a good underlying growth momentum with double-digit growth and our top-line metrics pointing in the right direction. Let's move on to a look at our profitability, starting with the contribution margin. In the Q2 alone, contribution margin reached 31.8%, which is the highest contribution margin in a Q2 ever. Although this is helped by some of the higher volumes related to Easter. Looking at the contribution margin for the H1, it improved by 0.5 percentage points to 32.1%. That is an increase of almost SEK 38 million in absolute contribution margin. Looking at some of the line items, we see input goods remained quite stable at 46.8% of net sales for the H1.

Speaker #2: In the second quarter alone, contribution margin reached 31.8%, which is the highest contribution margin in a second quarter ever. Although this is helped by some of the higher volumes related to Easter, looking at the contribution margin for the first half, it improved by 0.5 percentage points to 32.1%.

Speaker #2: That is an increase of almost 38 basis points in absolute contribution margin. Looking at some of the line items, we see input goods remained quite stable at 46.8% of net sales for the first half. The relative improvement in contribution margin was driven by the leverage on fulfillment costs, where higher volumes reduced fulfillment costs as a share of net sales by 0.8 percentage points.

Erik Bergman: The relative improvement in contribution margin was driven by the leverage on fulfillment costs, where higher volumes reduced fulfillment costs as a share of net sales by 0.8%. With the good performance in the Q2, our last 12 months contribution margin is now at 31%. As we continue to see good cost leverage, we now expect to see full year contribution margin to exceed that level going forward. Let's move on to have a look at our EBIT. The higher H1 net sales converted into a SEK 31.1 million increase in EBIT, resulting in an EBIT of SEK 80 million. That is growth of almost 91%. At the same time, the EBIT margin improved by 4.3 percentage points to 11.3%, up from 7% last year. This improvement is broad-based across our cost structure, and it reflects continued cost discipline throughout the organization.

Speaker #2: With the good performance in the second quarter, our last 12-month contribution margin is now at 31%. As we continue to see good cost leverage, we now expect to see full-year contribution margin exceed that level going forward.

Speaker #2: Let's move on to have a look at our EBIT. The higher first half net sales converted into a 31.1 million SEK increase in EBIT, resulting in an EBIT of 80 million.

Speaker #2: That is a growth of almost 91%. At the same time, the EBIT margin improved by 4.3 percentage points to 11.3%, up from 7% last year.

Speaker #2: This improvement is broad-based across our cost structure, and it reflects continuing cost discipline throughout the organization. It's built on the improved contribution margin that I just covered, combined with improved efficiency in both sales and marketing, and economies of scale in central functions.

Erik Bergman: It builds on the improved contribution margin that I just covered, combined with improved efficiency in both sales and marketing and economies of scale in central functions. Sales and marketing expenses as a share of net sales was reduced by 1.8 percentage points for the H1, from 11.2% to 9.4%. I want to point out that despite lower spend in absolute terms in the H1, we see a net sales that has increased by 18%. Part of this reflects the brand consolidation in Norway, where migrating all those customers onto the Godtlevert brand reduced the need to run two separate acquisition campaigns. We also managed to lower discounts across the business without softening the demand, which is another sign of strong marketing efficiency. Behind that is the sharper communication of our value proposition to the right customers with improved messaging and better targeting accuracy.

Speaker #2: Sales and marketing expenses as a share of net sales were reduced by 1.8 percentage points for the first half, from 11.2% to 9.4%. I want to point out that despite the lower spend in absolute terms in the first half, we saw net sales increase by 18%.

Speaker #2: Part of this reflects the brand consolidation in Norway, where migrating almost all customers onto the Godtlevert brand reduced the need to run two separate acquisition campaigns.

Speaker #2: We also managed to lower discounts across the business without softening demand, which is another sign of strong marketing efficiency. Behind that is the sharper communication of our value proposition to the right customers, with improved messaging and better targeting accuracy.

Speaker #2: Together, economies of scale combined with contribution margin gains, marked by efficiency and disciplined overhead costs, pushed our first half EBIT margin and EBIT level to a new record, reaching SEK 80 million in the first half and 11.3% in EBIT margin.

Erik Bergman: Together, economies of scale, combined with contribution margin gains, marketing efficiency, and discipline over head costs, pushed our H1 EBIT margin and EBIT level to a new record with 80 million SEK in the H1 and 11.3% in EBIT margin. Let's move on to the next slide to have a look at the cash flow. The improved profitability is showing up in our cash generation. For the H1, free cash flow amounts to 67.2 million SEK, an increase of just over 40 million SEK versus the same period last year. This is an increase of over 150%. During the quarter, we paid dividends of almost 92 million SEK compared with 42 million SEK last year. Despite the large increase in payout, our cash position at the end of the period was 38.3 million SEK higher than last year. Look at the change in net working capital.

Speaker #2: Let's move on to the next slide to have a look at the cash flow. The improved profitability is reflected in our cash generation.

Speaker #2: For the first half, free cash flow amounts to SEK 67.2 million, an increase of just over SEK 40 million versus the same period last year.

Speaker #2: This is an increase of over 150%. During the quarter, we paid dividends of almost SEK 92 million, compared with SEK 42 million last year—despite the large increase in payouts.

Speaker #2: Our cash position at the end of the period was SEK 38.3 million higher than last year. And if we look at changes in net working capital, it reduced cash flow by SEK 27.6 million in the quarter.

Erik Bergman: It reduced cash flow by 7.6 million SEK in the quarter. This reduction follows our normal seasonal pattern in net working capital. The variance versus last year in the quarter was mainly a timing effect carryover from the Q1. Looking at the H1, the cash flow effect from change in net working capital was in line with what we saw last year. All in all, we are pleased with the H1. The good growth momentum translating both to higher profitability and increased cash flow in both absolute and relative figures. Let's move on to have a look at the outlook for the coming quarters. Looking forward, the performance from our existing customer base remains positive. That said, the Q3 is always a quarter that is highly dependent on the after-summer customer ramp-up, which occurs towards the end of the quarter.

Speaker #2: This reduction follows our normal seasonal pattern in net working capital. The variance versus last year in the quarter was mainly a timing effect carried over from the first quarter. Looking at the first half, the cash flow effect from changes in net working capital was in line with what we saw last year.

Speaker #2: All in all, we are pleased with the first half, with good growth momentum translating into both higher profitability and increased cash flow in both absolute and relative terms.

Speaker #2: So, let's move on to have a look at the outlook for the coming quarters. Looking forward, the performance from our existing customer base remained positive.

Speaker #2: That said, the third quarter is always a quarter that is highly dependent on the after-summer customer ramp-up, which occurs toward the end of the quarter.

Speaker #2: We are facing tougher competition than in recent quarters. Last year, the third quarter grew at a record pace, driven by new customer acquisition. We don't expect that new customer acquisition will reach the same record level this year.

Erik Bergman: We are facing tougher comparison than in the recent quarters. Last year, the Q3 grew in a record pace, driven by new customer acquisition. We don't expect that the new acquisition will reach the same record level this year. Due to the dynamics in customer acquisition and the relative higher dependence on volumes from new customers in the Q3, we expect growth to be lower in the H2 compared to what we have seen in the H1. In August, we also made minor price adjustments averaging slightly above 3%, which is slightly higher than last year. As mentioned earlier, we now expect fully a contribution margin to exceed 31%. To continue on profitability, the Q3 is seasonally our weakest quarter.

Speaker #2: Due to the dynamics in customer acquisition and the relatively higher dependence on volumes from new customers in the third quarter, the expected growth is to be lower in the second half compared to what we have seen in the first half.

Speaker #2: In August, we also made minor price adjustments, averaging slightly above 3%, which is slightly higher than last year. As mentioned earlier, we now expect full-year contribution margin to exceed 31%.

Speaker #2: And to continue on profitability, the third quarter is seasonally our weakest quarter. Lower summer volumes are followed by higher sales and marketing activity towards the end of the quarter, as we prepare for the autumn acquisition cycle.

Erik Bergman: Lower summer volumes are followed by higher sales and marketing activity towards the end of the quarter as we prepare for the autumn acquisition cycle. In Q3 this year, sales and marketing investment will also be somewhat increased as we are supporting the rollout of our refreshed brand identity across all markets. With that, I would like to hand back to Walker for a quick summary.

Speaker #2: In the third quarter this year, sales and marketing investment will also be somewhat increased as we are supporting the rollout of our refreshed brand identity across all markets.

Speaker #2: With that, I would like to hand back to Walker for a quick summary.

Speaker #1: No, thanks, Eric. Let's go to the last slide to conclude, and then we'll open it up for questions. In summary, we are pleased with how the first half of 2026 has developed.

Walker Kinman: Thanks, Erik, and let's go to the last slide to conclude, then we'll open it up for questions. In summary, we are pleased with how H1 2026 has developed. Here are the following takeaways. Higher double-digit growth in Q2 lifted H1 net sales by 18%, and EBIT profitability for H1 increased by over 90% and achieved a record 80 million SEK. Stronger profitability drove increased free cash flow. We regained the market leadership position in Norway for 2025, and the successful brand consolidation this year in that market has outperformed expectations. Our pilot project in Finland is on schedule, with first deliveries planned for September, and we have given our brand a fresh new look with modern, warm, and more playful identity, which is now live across every market.

Speaker #1: Here are the following takeaways: Higher double-digit growth in the second quarter lifted first-half net sales by 18%, and EBIT profitability for the first half increased by over 90% and achieved a record £80 million.

Speaker #1: Stronger profitability drove increased free cash flow. We regained the market leadership position in Norway for 2025, and a successful brand consolidation this year in that market has outperformed expectations.

Speaker #1: Our pilot project in Finland is on schedule, with first deliveries planned for September. We have given our brand a fresh new look with a modern, warm, and more playful identity, which is now live across every market.

Speaker #1: Finally, we have positive momentum moving into the third quarter, but somewhat tempered growth expectations, as we face comparability against the second half of 2025, which experienced a surge in new customer acquisition.

Walker Kinman: Finally, we have positive momentum moving into Q3, but somewhat tempered growth expectations as we face comparability against H2 2025, which experienced a surge in new customer acquisition. A H1 this strong is only possible because of the people behind it, and I want to thank every Chefelonian again for their efforts in making it happen. We have an exciting future ahead of us, and I look forward to talking more about our progress on the road. This concludes our prepared remarks, and we're ready to answer questions. Don't be shy to ask. We really appreciate it gives us a chance to expand on the business, and we've got plenty. Let's get started. We'll take question number 1. Good morning.

Speaker #1: The first half is strong as only possible because of the people behind it, and I want to thank every Cheffelo Q1 again for their efforts in making it happen.

Speaker #1: We have an exciting future ahead of us, and I look forward to talking more about our progress down the road. This concludes our prepared remarks, and we're ready to answer questions.

Speaker #1: Don't be shy to ask. We really appreciate it—it gives us a chance to expand on the business, and we've got plenty. So, let's get started.

Speaker #1: So, we'll take question number one. Good morning. Can you elaborate on why you expect growth to be driven primarily by customer behavior dynamics, such as order frequency, retention, and average order value, rather than by new customer acquisition?

Walker Kinman: Can you elaborate on why you expect growth to be driven primarily by customer behavior dynamics such as order frequency, retention, average order value, rather than by new customer acquisition. Thank you. I think this is also one of these things where we see, and we've talked about the last year a lot about a surge in new customer acquisition. We had new partnerships that came online that were successful. We were successful in the market in acquiring customers at a rate which was higher than what we had seen previously. This creates a type of portfolio dynamic, and it leaves you with a choice. The choice is, do you try to increase new customer acquisition at any cost, or do you focus on making a great experience for customers?

Speaker #1: Thank you. And I think this is also one of those things where we see—and we've talked about this a lot over the last year—a surge in new customer acquisition.

Speaker #1: We had new partnerships that came online and were successful. We were also successful in the market in acquiring customers at a rate that was higher than what we had seen previously.

Speaker #1: This creates a type of portfolio dynamic, and it leaves you with a choice. The choice is: Do you try to increase new customer acquisition at any cost, or do you focus on making a great experience for customers?

Speaker #1: So, when we talk about making a great experience for customers, this means focusing on the things that create these long-tail cohorts. We don't expect to see the same level of new customer acquisition, which means that growth will be driven by other types of fundamentals in the portfolio, which we have seen over quite some time.

Walker Kinman: When we talk about making a great experience for customers, this means focusing on the things that create these long-tail cohorts. We don't expect to see the same level of new customer acquisition, which means that growth will be driven by other types of fundamentals in the portfolio, which we have seen over quite some time. We're looking forward to continuing to work with improving the customer experience. Let's take the next question from Kristian Smolle. "You're guiding towards lower growth in Q3 year-over-year. Could you break out how much the SAS new partnership campaigns contribute to the 27% organic growth last year?" Unfortunately, Kristian, this isn't information that we release.

Speaker #1: So, we're looking forward to continuing to work on improving the customer experience. Let's take the next question from Christian Smole. You're guiding towards lower growth in Q3 year over year. Could you break out how much the SOS new partnership campaigns contributed to the 27% organic growth last year?

Speaker #1: Unfortunately, Christian, this isn't information that we release. We can say that we don't have a comparable style of new partnership campaign this year, which means that what we're seeing is media-based efforts—the type of normal activity that Emilio Q1 Company works with every year.

Walker Kinman: We can say that we don't have a comparable style of new partnership campaign this year, which means that what we're seeing is media-based efforts, the type of normal activities that a meal kit company works with every year. The next question also from Kristian. "Denmark showed very solid growth. How do you think about the outlook for the market going forward? Are you already seeing payoff from the marketing investments there?" Keep in mind that marketing investments and changes to how we're communicating in the Danish market have only been live for a very short period of time, and with that, a brand refresh. We're trying to cut through a lot of noise in the Danish market, which has been one of the markets with the most competition.

Speaker #1: The next question is also from Christian. Denmark showed very solid growth. How do you think about the outlook for the market going forward? Are you already seeing payoff from the marketing investments there?

Speaker #1: Keep in mind that marketing investments and changes to how we're communicating in the Danish market have only been live for a very short period of time, along with a brand refresh.

Speaker #1: We're trying to cut through a lot of noise in the Danish market, which has been one of the markets with the most competition. In the competitive environment where we've seen, Nemlig exited the market over the summer when it comes specifically to meal kits.

Walker Kinman: In the competitive environment, what we've seen is Nemlig exit the market over the summer when it comes specifically to meal kits. On the other hand, we also see really aggressive discounting patterns of other competitors in the market. We have chosen to not be aggressive in attracting customers who are focused on price. In that regard, it doesn't necessarily mean that we're going to see the effect of marketing activity in the short term as you would of course hope for, but I think this is a long game for us, and we've said we are patient. The next question, on the average order value growth, could you elaborate on the successful mix towards meal kits with more recipes and/or more portions? Should we expect this mix shift to continue? I'll leave that question to Erik.

Speaker #1: On the other hand, we also see really aggressive discounting patterns from other competitors in the market, whereas you have chosen not to be aggressive in attracting customers who are focused on price.

Speaker #1: And in that regard, it doesn't necessarily mean that we're going to see the effect of marketing activity in the short term, as you would, of course, hope for. But I think this is a long game for us, and we've said we are patient.

Speaker #1: The next question: On the average order value growth, could you elaborate on the successful mix towards meal kits with more recipes and/or more portions?

Speaker #1: Should we expect this mix shift to continue? I'll leave that question to Eric.

Speaker #2: So the mix shift towards larger meal kits, that means either that you buy—that our customers buy on average for more days, or also include more persons.

Erik Bergman: The mix shift towards larger meal kit, that means either that our customer buy in average more days or also including more persons. We will continue to focus on driving existing customers to add additional days. But when it comes to adding more persons, that's depending on the households. Yes, we will continue to focus on both the smaller households and larger households. That meaning that it's hard to really assess the mix effect going forward. But if you look at average order value, one of those complex steps will continue to drive the increase in average order value, except for the price increases, is also how to handle discount and our focus on reducing discount, but still remain effective.

Speaker #2: So, we will continue to focus on driving existing customers to add additional days. But when it comes to adding more persons, that's depending on the households.

Speaker #2: Yes, we will continue to focus on both the smaller households and larger households. That means that it's hard to really assess the mix effect going forward. But if you look at average order value, one of those components that will continue to drive that increase in average order value, except for the price increases, is also how we handle discounts and our focus on reducing discounts, but still remain effective.

Speaker #1: Thanks, Eric. Our next question. Moving to a little bit of an inorganic growth question. Without referring to whether you are going to do acquisitions or not, what potential acquisition targets are there?

Walker Kinman: Thanks, Erik. Our next question, moving to a little bit of inorganic growth question. Without referring to it, if you are going to do acquisitions or not, what potential acquisition targets are there? Any market that offers better opportunities? I am only after the holistic view here of what is available and what could create value. I think when it comes to this type of question, of course, we could not talk about specific scenarios, but one thing we can reflect on is that the market has consolidated in the Nordics over the last several years, and even the exit of Nemlig demonstrates one further type of exit from the meal kit space. Very clearly though, with a company like that, absolutely no interest in sharing customer databases or having and selling a piece of the operation, simply exiting and stopping an activity.

Speaker #1: Any market that offers better opportunities. I'm only asked for the holistic view here of what is available and what could create value. I think when it comes to this type of question, of course, we couldn't talk about specific scenarios, but one thing we can reflect on is that the market has consolidated in the Nordics over the last several years, and that even the exit of Nemlig demonstrates one further type of exit from the meal kit space.

Speaker #1: Very clearly, though, with a company like that, there is absolutely no interest in sharing customer databases, or in selling a piece of the operation—simply exiting and stopping an activity.

Speaker #1: And I think that's what we're seeing most of in the space. I think, over time, when we think about whether there are more attractive areas or where we could go or what we could do, I think when we talk about moving into Finland, this is a way of increasing the total addressable market.

Walker Kinman: I think that is what we are seeing most of in the space. I think over time when we think about are there more attractive areas or where could we go or what could we do, I think when we talk about moving into Finland, this is a way of increasing the total addressable market. When we look across the Nordics and include these 4 markets, the total population is not much more than 25 million. There is obviously other markets in the world which are significantly larger, but at the same time create different types of operational and strategic challenges that need to be looked at. So I think what we are doing is we are demonstrating that Cheffelo has legs. We can enter new markets. We are going to work with that and put it down as a proof point.

Speaker #1: When we look across the Nordics and include these four markets, the total population is not much more than 25 million. There are obviously other markets in the world which are significantly larger, but at the same time, they create different types of operational and strategic challenges that need to be looked at.

Speaker #1: So I think what we're doing is we're demonstrating that Cheffelo has legs. We can enter new markets. We're going to work with that and put it down as a proof point.

Speaker #1: I think it also opens up the doors for other things down the road. Let's shift gears. We'll look at food inflation and the question from Tom Smith.

Walker Kinman: I think it also opens up the doors for other things down the road. Let us shift gears. We will look at food inflation and the question from Tom Smith. Food inflation has been tough on families. Have stable grocery prices helped your margins, or are you still finding it expensive to source ingredients? I will leave that to Erik.

Speaker #1: Food inflation has been tough on families. Have stable grocery prices helped your margins, or are you still finding it expensive to source ingredients? I'll leave that to Eric.

Speaker #2: Thank you, Tom, for your question. When it comes to grocery prices, it varies from grocery to grocery on the inflation. I wouldn't say that it has been stable for us, but we're trying to navigate when it comes to what items we are sourcing, focusing also on having our Nordic procurement contracts and trying to find the most synergies from that.

Erik Bergman: Thank you, Tom, for your question. When it comes to grocery prices, it varies from grocery to grocery on the inflation. I would not say that it has stabled for us, but we are trying to navigate when it comes to what item that are sourcing, focusing also on having our Nordic procurement contracts and trying to find the most synergies from that. But we are monitoring food inflation quite close, and our approach to it is not to push forward the inflation effects towards our customers to absorb the impact on the margin upsell.

Speaker #2: But we are monitoring food inflation quite closely. And our approach to it is not to have to push forward the inflation effects towards our customers, nor absorb the impact on the margin ourselves.

Speaker #1: Thanks, Eric. A question from Andreas von Heidenberg. How many can we—can you grow? How much can you grow in Finland before the existing Swedish production, storage, and distribution capability and capacity hits the roof?

Walker Kinman: Thanks, Erik. A question from Andreas von Hedenberg. How much can you grow in Finland before the existing Swedish production storage and distribution capability and capacity hits the roof and is not possible to grow anymore? I think when we look at this specific facility doing fulfillment, we have lots of room to grow. That is one thing to keep in mind. It does not mean that we are sitting and running at low capacity, but when it comes to capacity, this is not capacity that requires capital investments to increase. It has to do with working with shifts, working with the amount of hours we spend packing. Everything can scale quite a bit, and we have space. I would turn the question a little bit more towards when does it make sense to put down a footprint in the Finnish market?

Speaker #1: And it's not possible to grow anymore. I think that when we look at this specific facility doing fulfillment, we've got lots of room to grow.

Speaker #1: And that's one thing to keep in mind. It doesn't mean that we're sitting and running at low capacity, but when it comes to capacity, this is not capacity that requires capital investments to increase.

Speaker #1: It has to do with working with shifts, working with the amount of hours we spend packing—everything can scale quite a bit, and we have space.

Speaker #1: So I would say I would turn the question a little bit more towards: when does it make sense to put down a footprint in the Finnish market?

Speaker #1: And I think, by the time—we've said it before—by the time we sort of hit the 150 million range in the Finnish market, then it's time to probably be looking at putting a footprint down, which then would, of course, free up more capacity for growth in Sweden.

Walker Kinman: I think we said it before, by the time we hit the SEK 150 million range in the Finnish market, then it is time to probably be looking at putting a footprint down, which then would of course free up more capacity for growth in Sweden. Let us take the next question from Amir. The market is clearly growing now since HelloFresh has reported positive growth in H1, and you are growing as well. Anything you can share on customer sentiment, dynamic changes that has led to this? Not on a macro level, but rather in your segment and how they behave. I think one of the things I talked about in the report is the onboarding experience and also what success we have been having with onboarding customers.

Speaker #1: Let's take the next question from Amir. The market is clearly growing now, since HelloFresh has reported positive growth in H1, and you're growing as well.

Speaker #1: Is there anything you can share on customer sentiment and the dynamic changes that have led to this? Not on a macro level, but rather in your segment and how they behave.

Speaker #1: I think one of the things I talked about in the report is how we do the onboarding experience, and also what success we've been having with onboarding customers—simply put, getting customers to take a certain number of deliveries within a certain period of time. We see high correlations between that level of activity and better long-tail cohorts down the road.

Walker Kinman: Simply put, getting customers to make a certain number of deliveries within a certain period of time, because we see high correlations between that level of activity and better long-tail cohorts down the road. That is a question of customer lifetime value. What we can see is that we have gotten better, of course. We are working with the product. The product itself is more often hitting the needs of what the customer has and solving dinner, and that is our promise. But it creates an environment where the product itself has moved well beyond between what the early meal kit days were. Cheffelo is driving that level of personalization and variation in the market. I think we have been successful at that. We can see that in the growth rates. We can see it in how customers are more sticky, how the churn rates have gone down, how purchase frequencies have gone up.

Speaker #1: So that's a question of customer lifetime value. What we can see is that we've gotten better, of course. We're working with the product, and the product itself is more often hitting the needs of what the customer has and solving dinner.

Speaker #1: And that's our promise. But it creates an environment where the product itself has moved well beyond what the early meal kit days were.

Speaker #1: Cheffelo is driving that level of personalization and variation in the market. I think we've been successful at that. We can see that in the growth rates.

Walker Kinman: We can see that in the growth rates. We can see it in how customers are more sticky, how the churn rates have gone down, how purchase frequencies have gone up.

Speaker #1: We can see it in how customers are more sticky, how the churn rates have gone down, and how purchase frequencies have gone up. So, I think that is one underlying dynamic.

Walker Kinman: I think that is one underlying dynamic. Then you have other factors, like macro level with consumer sentiment. But I think the product and the service itself is more holistic and more of a whole product solution today than what it was previously. We go to the next question from Uzi Gandall. "Management noted that growth might slow down in the second half of the year. Should investors be worried about this, or is it just because last year's numbers were unusually high?" I think, when we look at the business, we have got a great future ahead of us. We are making investments in product and the service technology level that are having an effect and providing a better experience for the customers. We are pivoting on the way we communicate and the way the brands are perceived. We are entering new markets.

Speaker #1: Then you have other factors, like the macro level of consumer sentiment, but I think the product and the service itself are more holistic and more of a whole product solution today than what they were previously.

Speaker #1: We'll go to the next question from Uzi Kendall. Management noted that growth might slow down in the second half of the year. Should investors be worried about this, or is it just because last year's numbers were unusually high?

Speaker #1: I think, when we look at the business, we've got a great future ahead of us. We're making investments in product and service technology that are having an effect, and providing a better experience for the customers.

Speaker #1: We're pivoting in the way we communicate and the way the brands are perceived. We're entering new markets. I wouldn't get caught up on looking at this sort of bumpy growth as being problematic.

Walker Kinman: I wouldn't get caught up on looking at this bumpy growth as being problematic. I think absolutely, we had a very successful acquisition period in Q3 last year. When you look at the third quarters in general, because of acquisition reactivation, a significant amount of revenue in the quarter is made up of those types of new customer acquisitions. It doesn't make sense in this business in the long term to chase new customer acquisition growth at any cost. I would actually turn that around and say, I hope you feel confident that management is not making stupid decisions about trying to drive new customer acquisition just simply to prop up growth. We're looking for really great customer experiences that are very loyal customers over long periods, and I think that is well in our cards. All right. Let's move to questions from Jacob Banon.

Speaker #1: I think, absolutely, we had a very successful acquisition period in the third quarter last year. When you look at the third quarters in general, because of acquisition reactivation, a significant amount of revenue in the quarters is made up of those types of new customer acquisitions.

Speaker #1: But it doesn't make sense in this business, in the long term, to chase new customer acquisition growth at any cost. So, I would actually turn that around and say I hope you feel confident that management is not making stupid decisions by trying to drive new customer acquisition simply to prop up growth.

Speaker #1: We're looking for really great customer experiences that create very loyal customers over long periods, and I think that is well within our cards. All right.

Speaker #1: Let's move to questions from Yakov Bannon. Hi, guys. Congratulations on yet another strong quarter—thank you for that. A couple of questions: We're currently in Q3, and last year's Q3 showed really good new customer acquisition.

Walker Kinman: Hi, guys. Congratulations on yet another stronger quarter." Thank you for that. A couple of questions. "We're currently in Q3, and last year's Q3 showed a really good new customer acquisition. What different channels or strategies worked so well last year, and are you replicating that strategy this year as well?" The challenge with new partnerships, we would love to have and replicate this type of new partnership environment. There are not necessarily that many available opportunities or even naturally strategic fits with different partnerships. I think this is one of those elements that has changed. We're definitely out in the market in a different way. We've increased our media spending and have seen very good results with that in terms of new acquisition. I think the other thing is that, of course, we have made an increased investment in the Danish market.

Speaker #1: What different channels or strategies worked so well last year, and are you replicating that strategy this year as well? The challenge with new partnerships—we would love to have and replicate this type of new partnership environment.

Speaker #1: There are not necessarily that many available opportunities, or even naturally strategic fits, with different partnerships. So, I think this is one of those elements that has changed.

Speaker #1: We're definitely out in the market in a different way. We've increased our media spending and have seen very good results with that in terms of new acquisition.

Speaker #1: I think the other thing is that, of course, we have made an increased investment in the Danish market. It's nominal from an overall Cheffelo perspective, but it is a meaningful increase in our presence in that market.

Walker Kinman: It's nominal from an overall Cheffelo perspective, but it is a meaningful increase in our presence in that market. Then, of course, with the brand refresh, we're expecting over time to have an impact on how we communicate and how the customers perceive the brands. The next question from Jacob is, "You have regained market leadership in Norway. In Sweden and Denmark, you are also strong in gaining market share, but still far away from the dominant position you have in Norway. So what is standing in your way to, over time, become a market leader in all your markets?" I would say nothing. I think we've set a very high ambition to certainly be a significant player in all markets. What we're not going to do is we're not going to buy that position.

Speaker #1: And then, of course, with the brand refresh, we're expecting, over time, to have an impact on how we communicate and how the customers perceive the brands.

Speaker #1: The next question from Yakov is: you have regained the market leadership in Norway. In Sweden and Denmark, you're also strong and gaining market share, but still far away from the dominant position you have in Norway.

Speaker #1: So, what is standing in your way to, over time, become a market leader in all your markets? I would say nothing. And I think we've set a very high ambition to certainly be a significant player in all markets.

Speaker #1: What we're not going to do is, we're not going to buy that position. So, this is really about competing in each of the markets in a way that attracts customers and provides the level of operational excellence that leads them to come back because it works for them.

Walker Kinman: This is really about competing in each of the markets in a way that attracts customers and provides the level of operational excellence that leads them to come back because it works for them. It solves dinner night in and night out, and it also helps them in their quest to actually get the family around the table and united around the dinner table. I think I'm optimistic, and certainly, we're going to be working as hard as we can to make that happen. We'll go to the third question from Jacob, and he asks, "Have you stopped reporting metrics on add-ons and groceries? If not, what percentage of net sales did add-ons and groceries stand for?" Leave that to Erik as well.

Speaker #1: It solves dinner night in and night out, and then it also helps them in their quest to actually get the family around the table and unite around the dinner table.

Speaker #1: So I think I'm optimistic, and certainly we're going to be working as hard as we can to make that happen. We'll go to the third question from Yakov.

Speaker #1: And he asks, have you stopped reporting metrics on add-ons and groceries? If not, what percentage of net sales did add-ons and groceries stand for?

Speaker #1: Leave that to Eric as well.

Speaker #2: Yeah, thank you. And yes, we don't have that as a separate metric that we present, but we usually comment on it in our CEO section.

Erik Bergman: Yeah. Thank you. Yes, we do not have that as a separate metric that we present, but we usually comment on it in our CEO section. This time we chose to not do it, but just to give you the number, it was 1.9% of net sales. That is in line with what we saw last year in relative terms, but an increase in absolute terms.

Speaker #2: This time we chose not to do it, but just to give you the number: it was 1.9% of net sales. That is in line with what we saw last year in relative terms, but there's an increase in absolute terms.

Speaker #1: Thank you, Eric. We also have a question from Yakov. Will you start reporting sales from Finland separately in Q3? Maybe I’ll leave that to Eric as well.

Walker Kinman: Thank you, Erik. We also have the question from Jacob, "Will you start reporting sales from Finland separately in Q3?" Maybe I will leave that to Erik as well.

Speaker #2: We will comment on the sales in Finland in our Q3 report. If it's in the segment that they're not, that remains to be seen.

Erik Bergman: We will comment on the sales in Finland in our Q3 report. If it is in the segment or not, that remains to be seen. But yes, we will have some comments on the progress in Finland in our Q3 report.

Speaker #2: But yes, we will have some comments on the progress in Finland in our Q3 report.

Speaker #1: Bear in mind that we're running a pilot. We're not launching big, which also means that we don't expect to have material impacts from the Finnish pilot project in the second half of next year.

Walker Kinman: Bear in mind that we are running a pilot. We are not launching big, which also means that we do not expect to have material impacts from the Finnish pilot project in the H2 of this year. Next question from Jacob. "Any chance you can quantify the extra cost that you will take in Q3 as a consequence of the updated brand identity?

Speaker #1: Next question from Yakov. Any chance you can quantify the extra cost that you will take in Q3 as a consequence of the updated brand identity?

Speaker #2: Sorry, I can't provide an exact number on our sales and marketing spending in the third quarter. It's one of our heaviest quarters when we spend the most to acquire customers at the time for the seasonal slowdown.

Erik Bergman: Sorry, I cannot provide an exact number on our sales marketing spending in Q3. It is one of our heaviest quarters when we spend the most to acquire customers, the time for the seasonal slowdown. It is one of our heaviest quarters when our spend on sales and marketing. Cannot comment on the exact number, but it will then increase versus last year.

Speaker #2: So, it's one of our heaviest quarters when we are spending on sales and marketing. Can't comment on the exact number, but it will be an increase versus last year.

Speaker #1: Thanks, Eric. And now, finally, we also have a couple of questions from Clement. We'll take the first one: could you give us an update on the competitive landscape in Norway and Sweden in particular, specifically which serious competitors remain there besides HelloFresh?

Walker Kinman: Thanks, Erik. Now finally, we also have a couple of questions from Clément. We will take the first one. Could you give us an update on the competitive landscape in Norway and Sweden in particular? Specifically, which serious competitors remain there besides HelloFresh? Focusing on direct competitors in the market, rather than some of the alternatives for e-commerce food, then we would say in the Norwegian market, of course it is now Godtlevert, HelloFresh, and Kokkeløren. Kokkeløren has also grown quite a lot over the last year, focusing on fixed meal kits and a smaller range of products, but has grown in their business as well in that market. When we look at Sweden has been more fragmented, it is much less so today. You would have, of course, HelloFresh and Linas Matkasse in the market. You could also identify Matkomfort, which is a specialized player.

Speaker #1: So, focusing on direct competitors in the market, rather than some of the alternatives for e-commerce food, then we would say in the Norwegian market, of course, it is now Godtlevert, HelloFresh, and Kokeloren.

Speaker #1: Kokeloren has also grown quite a lot over the last year, focusing on fixed meal kits and a smaller range of products, but has grown in their business as well in that market.

Speaker #1: When we look at Sweden, Sweden has been more fragmented. It is much less so today. You would have, of course, HelloFresh and Linus in the market.

Speaker #1: You could also identify Multi-Comfort, which is a specialized player. And then there's a number of other players that would be very, very niche in their offering—very specific with regards to certain types of lifestyles or certain types of eating habits.

Walker Kinman: Then there is a number of other players that would be very niche in their offering, very specific with regards to certain types of lifestyles or certain types of eating habits, but are very niched and do not have broad-based traction in the market. Let us go to one last question here, which would be also from Clément. Good morning, Joakim and Erik. Is 7% to 9% EBIT margin still a plausible medium-term target to you given you are already trending ahead? We have not updated our financial targets. Thank you for noting that we are trending ahead. We are very cognizant that as we see good growth, the leverage and the cost leverage that we have been able to achieve has somewhat outperformed what originally we had expected. Bear in mind, this is also financial targets that were established for the existing business in existing markets.

Speaker #1: But are very niched and don't have broad-based traction in the market. And let's go to one last question here, which would also be from Clement.

Speaker #1: Good morning, Walker and Eric. Is a 7% to 9% EBIT margin still a plausible medium-term target to you, given you are already trending ahead?

Speaker #1: So, we have not updated our financial targets. Thank you for noting that we are trending ahead. We are very cognizant that, as we see good growth, the leverage and the cost leverage that we have been able to achieve has somewhat outperformed what we originally had expected.

Speaker #1: Bear in mind, these are also financial targets that were established for the existing business in existing markets. So, from the standpoint of saying, when we continue to grow in our three main markets that we have, we're probably still being pretty conservative on this level of EBIT margin.

Walker Kinman: In the standpoint of saying when we continue to grow in our three main markets that we have today, I would say that we are probably being pretty conservative still on this level of EBIT margin. For the time being, no update yet. That was the last question. Thanks again for all of your questions and thanks for joining in this call. I would like to remind you, we will have our next call in November where we share our Q3 results. We are looking forward to that. Have a great day. Thanks for joining.

Speaker #1: But for the time being, no update yet. And that was the last question. Thanks again for all of your questions, and thanks for joining this call.

Speaker #1: I'd like to remind you that we'll have our next call in November, where we will share our third quarter results. We're looking forward to that, and have a great day.