Q1 2027 Matas AS Earnings Call

August 12, 2026

Speaker #3: Welcome to the Matas Group interim report for Q1 2026/27. Today's call is being recorded. If you have any objections, please disconnect at this time. All participants will be in listen-only mode during the presentation.

Operator 2: Welcome to this Matas Group Interim Report Q1 2026, 2027. Today's call is being recorded. If you have any objections, please disconnect at this time. All participants will be in a listen-only mode during the presentation. After the presentation, there will be a question and answer session. To ask a question, please press five star on your telephone keypad. I will now hand the call to your speakers, Group CEO, Mette Uglebjerg, and Group CFO, Per Johannesen-Madsen. Mette, you may now begin.

Operator: Welcome to this Matas Group Interim Report Q1 2026, 2027. Today's call is being recorded. If you have any objections, please disconnect at this time. All participants will be in a listen-only mode during the presentation. After the presentation, there will be a question and answer session. To ask a question, please press five star on your telephone keypad. I will now hand the call to your speakers, Group Chief Executive Officer, Mette Uglebjerg, and Group Chief Financial Officer, Per Johannesen-Madsen. Mette, you may now begin.

Speaker #3: After the presentation, there will be a question-and-answer session. To ask a question, please press 5-star on your telephone keypad. I will now hand the call to your speakers, Group CEO Mette Olebjerg and Group CFO Per Johanneson Madsen.

Speaker #3: Mette, you may now begin.

Speaker #4: Good morning, everyone, and welcome to our Q1 investor call. Today, we have two important messages. First and foremost, we are delivering growth in Q1, keeping our guidance, and we are launching a new operating model.

Mette Uglebjerg: Good morning, everyone, and welcome to our Q1 investor call. Today, we have two important messages. First and foremost, we are delivering growth in Q1, keeping our guidance, and we are launching a new operating model. Please take notice of the disclaimer for the forward-looking statement. In the agenda for today, we have three topics. First and foremost, I will walk you through high level our Q1 results and double-click on our new Nordic operating model. I will hand it over to Per, who will give a little bit more briefly into the details behind the numbers, and then we open up for a Q&A session in the end. I am a bit more than 100 days into this role, and what is really clear to me is that we have a very strong foundation.

Speaker #4: Please take notice of the forward-looking disclaimer for the forward-looking statements. In the agenda for today, we have three topics. First and foremost, I will walk you through, at a high level, our Q1 results and double-click on our new Nordic operating model.

Speaker #4: I'll hand it over to Per, who will give a little bit more detail around the numbers, and then we'll open up for a Q&A session at the end.

Speaker #4: I'm a bit more than 100 days into this role, and what is really clear to me is that we have a very, very strong foundation.

Speaker #4: We have strong brands, a lot of capable team members, and we have lots of potential across the Nordics. In terms of Q1, we are delivering 3.4% growth in the quarter, currently neutral.

Mette Uglebjerg: We have strong brands, a lot of capable team members, and we have lots of potential across the Nordics. In terms of Q1, we are delivering 3.4% growth in the quarter currency neutral, supported by a strong performance in Matas up by 5.6% currency neutral. Before I get to that, sorry. KICKS is down by 0.3%, and obviously, we are not satisfied with that performance. We will double-click a little bit more on that later in the presentation. We also are delivering strong performance on online, almost up by 10%, and our in-house brands grew by 9%, which is a great testimony to some of the things we do, the brands, how it resonates with the consumer, but also about our omni model. Our EBITDA margin for the period is 12.2%, and there are two reasons for us not hitting our target here.

Speaker #4: Supported by a strong performance in Matas, up by 5%—5.6%—currently neutral. Online... No, before I get to that, sorry. KICKS is down by 0.3%, and obviously we are not satisfied with that performance.

Speaker #4: We'll double-click a little bit more on that later in the presentation. We are also delivering strong performance online, almost up by 10%, and our in-house brands grew by 9%, which is a great testimony to some of the things we do, the brands, how they resonate with the consumer, but also about our omni model.

Speaker #4: Our EBITDA margin for the period is 12.2%, and there are two reasons for us not hitting our target here. First and foremost, we see a dip in our gross margin in the Kicks market.

Mette Uglebjerg: First and foremost, we see a decline, a dip in our gross margin in the KICKS market. Half of that is driven by an inventory write-down, and then we have adjusted for prices to become more relevant for the consumer. Then we are investing in sales and traffic on marketing. We will double-click a little bit later. What is really important to me is to say that the strategy remains unchanged, but to accelerate that strategy and move with greater speed and agility, we are launching a new Nordic operating model. We are going from a banner-led model to a country-led model with strong country managers close to the markets, close to our customers, and at the same time, some very strong group functions.

Speaker #4: Half of that is driven by an inventory write-down, and then we have adjusted for prices to become more relevant for the consumer. And then we are investing in sales and traffic on marketing.

Speaker #4: We'll double-click on that a little bit later. What is really important to me is to say that the strategy remains unchanged, but to accelerate that strategy and move with greater speed and agility, we are launching a new Nordic operating model.

Speaker #4: So we are going from a banner-led model to a control-led model with strong control managers, close to the markets and close to our customers—and, at the same time, some very strong group functions.

Speaker #4: I'll double-click on this a little bit later, but this will also impact our cost base, and the annual rate will have DKK 45 to 50 million in savings from 2027 to 2028.

Mette Uglebjerg: I will double-click on this a little bit later, but this will also impact our cost base and the annual rate will have DKK 45 to 50 million in savings from 2027 to 2028. The guidance for the year, they are maintained. We keep our guidance. We have paid our dividend, DKK 2 per shares. We also launched today a share buyback program of up to DKK 100 million, and we will also talk more about that a little bit later. This slide is very much giving a detailed view of the quarter per banner. You see the differences. You can recognize some of the numbers from the previous slide. What you also see here is the gross profit in KICKS. Two challenges there, the write-down on inventory and the investment we do in order to become more relevant for our customers.

Speaker #4: The guidance for the year is maintained. We keep our guidance. We have paid out a dividend of 2 kroner per share. We also today launched a share buyback program of up to 100 million, and we'll also talk more about that a little bit later.

Speaker #4: This slide is very much giving a detailed view of the quarter per banner, and you see the different differences. You can recognize some of the numbers from the previous slide, but what you also see here is the gross profit in Kicks, the challenges there, the write-down in inventory, and the investment we do in order to become more relevant for our customers.

Speaker #4: What it also tells me is that within our family, we have a very strong performance within our Matas banner, but it also says something about the potential we have across the market. That is exactly what we want to do with our new operating model: have some of these best practices travel across our business with greater speed.

Mette Uglebjerg: What it also tells me is, within our family, we have a very strong performance within our Matas banner, but it also says something about the potential we have across the market. That is exactly what we want to do with our new operating model, have some of these best practices travel across our business with greater speed. Our six strategic priorities remain the same. I just want to give you a couple of highlights for the year. In-house brands, I said that grows with 9%, really strong. What is really great to see is that Matas Striber, which all Danes know, is now the top brand for hair in Norway and Finland. This is a really good example when I talk about the operating model on how some of these best practices can travel across our business.

Speaker #4: Our six strategic priorities remain the same, and I just want to give you a couple of highlights for the year. In-house brands, as I said, that growth with 9% is really, really strong. What is really great to see is that Matas River, which all Danes know, is now the top brand for hair in Norway and Finland. This is a really good example, when I talk about the operating model, of how some of these best practices can travel across our business.

Speaker #4: It's a really good example of that. We are also working on becoming more relevant for even more customers. Part of that is also launching new categories, new products, and new price points.

Mette Uglebjerg: It is a really good example of that. We are also working on becoming more relevant for even more customers. Part of that is also launching new categories, new products, and new price points. The wellness category is a really good example of that, where we have introduced in Q1, everyday care, everything from cotton pads to sleep, relaxation, et cetera. A lot of new products has been launched. We also introduced Chanel in Sweden, so we now have Chanel in all our KICKS markets. Our membership clubs, we have 6 million members, continue to be a really strong asset for us and a really strong growth generation and combine the Omni, so our online universe with our physical stores, really strong assets for us.

Speaker #4: And the wellness category is a really good example of that, where we have introduced, in Q1, everyday care—everything from cotton pads to sleep relaxation, et cetera.

Speaker #4: So a lot of new products have been launched. We also introduced Chanel in Sweden, so we now have Chanel in all our Kicks markets.

Speaker #4: Our membership club—we have 6 million members—continues to be a really strong asset for us and a really strong growth generator, and combined with omni.

Speaker #4: So our online universe together with our physical stores are really strong assets for us. If we look at our synergies, we continue to be on track with our synergies.

Mette Uglebjerg: If we look at our synergies, we continue to be on track on our synergies. Our Auto 2 automated logistics centers are really strong as well, and we continue to see continuous improvement there. We are on business case or ahead of business case, depending on which. Really good performance. We are also launching the new Nordic model. I will get back to that really shortly, but it is part of the strategy, and it is about making us more agile and deliver with greater pace in the different markets. Let us move on to the next slide. What you actually see here is how we set ourselves up. We want to simplify to grow, and there is two important dimension here. First and foremost, we want to have a more sharp, more coherent customer value proposition. That comes from insight on our consumers.

Speaker #4: And our Altitude automated logistics centers are really strong as well, and we continue to see continuous improvement there. And we are on business case or ahead of business case, depending on which.

Speaker #4: So, really, really good performance. We are also launching the new Nordic model, and I'll get back to that really shortly, but this is a really important part of the strategy, and it's about making us more agile and able to deliver with greater pace in the different markets.

Speaker #4: But let's move on to the next slide. And what you actually see here is how we set ourselves up. We want to simplify to grow, and there are two important dimensions here.

Speaker #4: First and foremost, we want to have a sharper, more coherent customer value proposition, and that comes from insight on our consumers. We know from consumer insights that our customers are actually more alike than they're different.

Mette Uglebjerg: We know from consumer insights that our customers are actually more alike than they are different. So we can take our customer value proposition and move that closer to each other so we have a coherent one customer value proposition across our markets. That give us opportunity to take out scale and harvest some of the synergies across our group. At the same time, we want to have a more simple market-led model with a focus on every single market. We want to win in every single market. So those two in combination will set us up so we can harvest the synergies and be much more efficient. I just want to mention that we will get back later in the year with a strategy refresh, where we are also going to launch our long-term financial ambition. Let us get back to the operating model.

Speaker #4: So we can take our customer value proposition and move that closer together, so we have a coherent, single customer value proposition across our markets.

Speaker #4: And that gives us the opportunity to take out scale and harvest some of the synergies across our group. At the same time, we want to have a more simple, market-led model with a focus on every single market.

Speaker #4: We want to win in every single market. So, those two in combination will set us up so we can harvest the synergies and be much more efficient.

Speaker #4: I just want to mention that we’ll get back later in the year with a strategy refresh, where we’re also going to launch our long-term financial ambition.

Speaker #4: But let's get back to the operating model. Just to give you a little bit of context: on the left side of the slide, you see the model we have today, which is a banner-led model, and we are moving to the right side, with a control-led model.

Mette Uglebjerg: Just to give you a little bit of context. On the left side of the slide, you see the model we have today, which is a banner-led model, and we are moving to the right side with a country-led model. The rationale is that, well, since we joined forces, we have had this model. We have basically had KICKS operating for the three KICKS market and Matas operating for the Matas market. That has been natural, and that has been great, but we can also see that there are more potential across our group. Now we are moving towards the markets, getting closer to our customers in each market with dedicated focus on local execution, but also dedicated focus on winning in that market. P&L responsibility both for our stores but also for our online business.

Speaker #4: So, the rationale is that, well, since we joined forces, we have had this model. So, we have basically had the Kicks operating for the three Kicks markets and Matas operating for the Matas market.

Speaker #4: And that has been natural, and that has been great, but we can also see that there is more potential across our group. So now we are moving towards the markets, getting closer to our customers in each market with dedicated focus on local execution, but also dedicated focus on winning in that market, P&L responsibility, both for our stores, but also for our online business.

Mette Uglebjerg: At the same time, we are going to have some very strong group functions with shared capabilities and where we have synergies. There is no need to invent the wheel more than once, and that is the idea behind very strong group functions. I mentioned the annual run rate savings, around DKK 45 to 50 million. Let me introduce for that, and we are setting ourselves for a Nordic operating model. I have also launched a new Nordic ELC team, and here comes the team. Per and I, we will continue to be the executive committee. I am glad to have my partner in crime here. As you can also see on the slide, we have three very strong country managers. We have Stefan, who is today the Country Manager in Denmark. He will continue in his role, and he is really a steady hand on the wheel.

Speaker #4: At the same time, we're going to have some very strong group functions. We'll share capabilities and where we harvest synergies. There's no need to invent the wheel more than once, and that's the idea behind very strong group functions.

Speaker #4: I mentioned the annual run rate savings are around 45 to 50 million. But let me introduce that, and we are setting ourselves up for a Nordic operating model.

Speaker #4: I've also launched a new Nordic ELT team, and here comes the team. So, Pia and I will continue to be the executive committee.

Speaker #4: I'm glad to have my partner in crime here, but as you can also see on the slide, we have three very strong country managers.

Speaker #4: We have Stephen, who is today the country manager in Denmark. He will continue in his role, and he is really a steady hand on the wheel.

Speaker #4: Then we have a new hire, Helena Kalinder, who is joining our family. Helena holds the position of CEO at Nelly Company in the online fashion industry.

Mette Uglebjerg: We have a new hire, Helena Karlinder-Östlundh, who is joining our family. Helena has today a position as CEO for Nelly.com, online fashion industry, where she has done a transformation, turnaround of the business, but also been really driving a lot of in-house brands. She has a long track record also within the industry, where she used to work for Mecca in Australia. She comes in with a fresh view but also cross-border perspective and industry experience, but also experience from online and our stores. We have Erik, who continues in his role in Norway, but we lift him up to the ELC team. That is an example of Erik handling the Norwegian business, being close to the market, and Erik is also really a steady hand on the driving wheel. I just want to mention that Helena is also going to have the responsibility for Finland.

Speaker #4: She has done a transformation and turnaround of the business, but has also been really driving a lot of in-house brands. She has a long track record within the industry, having previously worked for Mecca in Australia.

Speaker #4: So she comes in with a fresh view, but also a cross-border perspective and industry experience, as well as experience from online and our stores. Then we have Eric, who continues in his role in Norway, but we lift him up to the ELT team.

Speaker #4: So, that is an example of Eric handling the Norwegian business, being close to the market, and Eric is also really a steady hand on the driving wheel.

Speaker #4: I just want to mention that Helena is also going to have the responsibility for Finland. Then we have Brian Göbel on category and merchandising; that role is changing.

Mette Uglebjerg: We have Brian Gøbel on category and merchandising. That role is changing. Brian today has the responsibility for our logistics center and has introduced that and made that a huge success. Many of you may not know that he also has a long track record within category management, huge experience also with in-house brands, and I am looking forward to having him as part of my team. David Heeroma is within our team today, but David is going to have a new role, he is going to be responsible for digital tech, AI, and transformation. We are now at a stage with our digital business where it makes sense to merge that with our tech business to get greater speed, but also take some of the opportunities we have and scale that across our business.

Speaker #4: Brian today has the responsibility for our logistics vendor and has introduced that and made that a huge success. Many of you may not know that he also has a long track record within category management, huge experience also with in-house brands, and I'm looking forward to having him as part of my team.

Speaker #4: David Hiruma is within our team today, but David is going to have a new role. He's going to be responsible for digital, tech, AI, and transformation.

Speaker #4: We are now at a stage with our digital business where it makes sense to merge that with our tech business—to achieve greater speed, but also to better take some of the opportunities we have and scale that across our business.

Speaker #4: David has a long track record within digital and tech, but also previously had a role in operations within our organization. Then there’s a new hire with Tanja Guldbrandsen Jensen.

Mette Uglebjerg: David has a long track record within digital and tech, but also had previously the role on operation within our organization. Then there is a new hire with Tonje Gulbrandsen Jensen. Tonje is today acting CEO for Mester. She brings more than 20 years of senior leadership roles from transformation, integration, people focus. She does a lot of integration. She also previously had a role in Circle K, being responsible for all people in Europe, and done a lot of integration and done a lot of culture work. I am looking forward to have Tonje as part of the team. As you can see, that is a vacant position, appointment is in process, but we are also scaling up a new team, focusing on marketing and customer as a strong group function. This team represents, as you can see, we put the flags up here. It is a Nordic organization.

Speaker #4: Tanja is today acting CEO for Mesta. She brings more than 20 years of senior leadership roles, from transformation integration, people focus. She does a lot of integration. She also previously had a role in Circle K, being responsible for all people in Europe, and has done a lot of integration and a lot of culture work. So I'm looking forward to having Tanja as part of the team.

Speaker #4: As you can see, that's a vacant position. Appointment is in process, but we are also scaling up a new team focusing on marketing and customer as a strong group function.

Speaker #4: This team represents, as you can see—we put the flags up here—it's a Nordic organization. We want to win in the Nordics. That's also why it makes sense to have a Nordic ELT team.

Mette Uglebjerg: We want to win in the Nordics. That is also why it makes sense to have a Nordic ELC team. That makes sense. It starts with us. So the conversation we are going to have is with the different culture background and the different learnings we have from the different markets. As you might also notice, there are two names that are not on the list, and that is because Carola and Alice, their role has changed, and Carola and Alice have decided to leave the company. I want to give them a sincere and big thank you for their huge contribution to the integration of KICKS and all the wins we have had over the years and wish them all the best.

Speaker #4: That makes sense. It starts with us, so the conversation we're going to have is with the different cultural backgrounds and the different learnings we have from the different markets.

Speaker #4: As you might also notice, there are two names that are not on the list. And that's because Kaula and Alice—their roles have changed. And Kaula and Alice have decided to leave the company.

Speaker #4: I want to give them a sincere, big thank you for the huge contribution to the integration of Kicks and all the wins we have had over the years, and wish them all the best.

Speaker #4: I think this team is a good testimony of what we are trying to do, with a very diverse team—with both the continuity from the team with Pia, Brian, Stephen, Eric, and David, but also some new hires, with some fresh blood into the family, and also with international background, working across borders.

Mette Uglebjerg: I think this team is a good testimony of what we are trying to do with very diverse team, with both the continuity from the team with Per, Brian, Stefan, Erik, and David, but also some new hires with some fresh blood into the family, but also with international background working across borders, both online stores, different geographies, different culture background. We are a Nordic company, and we are going to have a Nordic team. With that, I think I am going to hand it over to you, Per.

Speaker #4: Both online stores, different geographies, different cultural backgrounds. We are a Nordic company, and we're going to have a Nordic team. And with that, I think I'm going to hand it over to you, Pia.

Speaker #1: Thank you, Meredith. I will take you through the results for the first few months of this year, but before I do that, I just want to say—I know we're going to get a lot of questions in terms of what it means to launch the new operating model.

Per Johannesen Madsen: Thank you, Mette. I will take you through the results of Q1 for this year. Before I do that, I know we are going to get a lot of questions in terms of what does it mean launching the new operating model. Let me just share some numbers. First, we previously communicated that we have synergies for this year of DKK 50 million, and we are looking at DKK 50 million plus coming in this year. It is from a timing perspective, more towards the H2 of the year, so that is going to come in as we progress this year. In terms of the new operating model, we are looking at special items in the range of DKK 70 to 105 million, basically reflecting the implementation and the severance pay saying goodbye to colleagues.

Speaker #1: So let me just share some numbers. First, we previously communicated that we have synergies for this year of €50 million, and we are looking at €50 million plus coming in this year.

Speaker #1: From a timing perspective, it's more towards the second half of the year, so that's going to come in as we progress through this year. In terms of the new operating model, we're looking at special items in the range of 70 to 105 million, basically reflecting the implementation and the severance pay—saying goodbye to colleagues.

Speaker #1: We also expect that will generate roughly around DKK 50 million of savings this year, and then the run rate that Matas already talked about—the DKK 45 to 50 million coming in next year.

Per Johannesen Madsen: We also expect that that will generate roughly around DKK 50 million of savings in this year, then the run rate that Mette already talked about, the DKK 45 to DKK 50 million coming in next year. Just to reemphasize, again, we will host a strategy refresh and present the new long-term financial ambitions later in this year, and we will be back in terms of timing and agenda and so forth. This was just before going into the numbers, so you have a clear view on the impact of launching the new operating model. Turning to Q1, as already mentioned, growing 3.4% currency neutral with a strong growth in Matas, also others growing above 10%, and others is, as you know, our Firtal business and Web Sundhed, which is two online businesses, so strong growth from their end as well. Then KICKS slightly below last year.

Speaker #1: And just to reemphasize, again, we will host a strategy refresh and present the new long-term financial ambitions later this year, and we'll be back with more details on timing, agenda, and so forth.

Speaker #1: But this was just before going into the numbers, so you have a clear view on the impact of launching the new operating model. But turning to Q1, as already mentioned, growing 3.4% currency-neutral with strong growth in May test.

Speaker #1: And also others growing above 10%. And 'Others' is, as you know, our Firtal business and Web Sundhed, which are two online businesses, so strong growth from their end as well.

Speaker #1: And then Kicks, slightly below last year. Well, sorry, we had a little bit of a technical glitch, but we're back, I hope. From a channel perspective, again, as already said, stores are pretty much in line with last year.

Per Johannesen Madsen: Well, sorry, we had a little bit of technical glitch, but we are back, I hope. From a channel perspective, again, as always said, stores pretty much in line with last year. The growth coming from our online business, then wholesale, in this quarter, has a positive, and that is a little bit with timing, but still a strong business as we move forward also in our wholesale business. Then I think one of the big questions for this quarter has really been around our gross margin. Let me just try and take you through that. Matas, slightly below last year. It is predominantly linked to the mix we have between online and stores, but not a big change in terms of our gross margin. When we look at KICKS, this is where we have the peak deviations, and this is also where we see the shortfall.

Speaker #1: The growth coming from our online business, and then wholesale in this quarter, has a positive, and that is a little bit with timing, but still, a strong business as we move forward also in our wholesale business.

Speaker #1: And then I think one of the big questions for this quarter has really been around our gross margin, so let me just try and take you through that.

Speaker #1: Matas is slightly below last year. It's predominantly linked to the mix we have between online and stores, but not a big change in terms of our gross margin.

Speaker #1: When we look at Kicks, this is where we have the big deviations. And this is also where we see the shortfall. Half of the shortfall is coming from the write-down.

Per Johannesen Madsen: Half of the shortfall is coming from the write-down. Actually, slightly more than half of the reduction in our margin is coming from the inventory write-down, which is a little bit of a technical exercise. Every time we have products with sales for more than two years, we do a provision for that, and this is what hitting us in this quarter. Last year, it was divided throughout the quarters. This year, it is predominantly in this quarter, and it is not something we expect to see in the following quarters. That, of course, when we look at the overall business, that is of course, impacting the overall gross margin for this quarter. Gross profit in our other business, which is Firtal and Web Sundhed, is slightly down.

Speaker #1: Actually, slightly more than half of the reduction in our margin is coming from the inventory write-down, which is a little bit of a technical exercise.

Speaker #1: Every time we have products with sales for more than two years, we make a provision for that, and this is what's hitting us in this quarter.

Speaker #1: Last year, it was divided throughout the quarters. This year, it's predominantly in this quarter, and it's not something we expect to see in the following quarters.

Speaker #1: And that, of course, when we look at the overall business, is impacting the overall gross margin for this quarter. Gross profit in our other business, which is Firtal and Web Sundhed, is slightly down, and there we're basically investing in growth, especially in Web Sundhed, which is gaining very strong momentum at the moment.

Per Johannesen Madsen: There, we are basically investing in growth, especially in Web Sundhed, which is getting a very strong momentum at the moment at a slightly lower margin due to the product mix, but still a very healthy business going in the right direction. That then ends up with the total numbers, as we already talked about, and a gross profit, which is in line with last year. Moving into the cost, I think we have some good news here, especially around our staff cost. As you can see, as a percentage of the revenues, we are almost down half a point. That is a reflection of the continuation of the strong performance of our logistics centers, where we basically continuously see improvement, both in the Matas Logistics Center, but also in our KICKS logistics center outside Aarhus, Sweden.

Speaker #1: At a slightly lower margin due to the product mix, but still a very healthy business growing in the right direction. And that then ends up with the total numbers, as we already talked about, and a gross profit which is in line with last year.

Speaker #1: Moving into the cost, and I think we have some good news here, especially around our staff cost. As you can see, as a percentage of our revenues, we are almost down half a point.

Speaker #1: And that is a reflection of the continuation of the strong performance of our logistics centers, where we basically continuously see improvements both in the Matas logistics center, but also in our KICKS logistics, and outside also SPELL.

Speaker #1: So from that perspective, as Matas already alluded to, we're delivering according to the plan and, in some instances, actually beyond our expectations. So we're very confident with that.

Per Johannesen Madsen: From that perspective, as Mette already alluded to, we are delivering according to the plan and in some instances, actually beyond our expectations. We are very confident with that. Then also, of course, another big thing is our salary percentage in stores. Of course, we are working very diligent with that as we progress throughout the year. Overall, from a cost perspective on people, we are very pleased with the development in this quarter, whilst also we are investing actually in capabilities in AI, and now launching the Nordic operating model. In terms of other external costs, this is where we see the increase, and that is linked to two things. Of course, our online business drives costs, as you know, in terms of shipping, our faster deliveries.

Speaker #1: Then also, of course, another big thing is our salary percentage in stores, and of course, we're working very diligently with that as we progress throughout the year.

Speaker #1: So overall, from a cost perspective on people, we're very pleased with the development in this quarter. While also, we are investing in capabilities in AI and now launching the Nordic operating model.

Speaker #1: In terms of other external costs, this is where we see the increase, and that is linked to two things. Of course, our online business drives costs, as you know, in terms of shipping and our faster deliveries. But when we grow the online business 10%, it will impact our other external costs, as you're used to from all other quarters.

Per Johannesen Madsen: When we grow the online business 10%, it will impact our other external costs as you are used to from all other quarters. The big difference, at least compared to last year, is our investment in marketing, our investment in our consumers, and that has increased in this quarter. Some of it is also linked into the fact that we have very high growth in Matas on our online business, and the search of getting that high growth, of course, also impact our investments. Overall, this is investment in our consumers and also in driving the growth also in this quarter, but also as we move forward. I just want to say there is a little bit of timing when you have these quarters. As you remember last year, we had the big fragrance campaign in KICKS.

Speaker #1: The big difference, at least compared to last year, is our investments in marketing—our investment in our consumers—and that has increased in this quarter.

Speaker #1: Some of it is also linked to the fact that we have very high growth in Matas' online business, and the pursuit of getting that high growth, of course, also impacts our investments.

Speaker #1: But overall, this is investment in our consumers and also in driving the growth. This is also true this quarter, but also as we move forward. And then I just want to say there's a little bit of timing.

Speaker #1: When you have these quarters, as you remember, last year we had the big frequency campaign in Kicks. This year, we actually did that in March, as you recall from our Q4 reporting. And when you do those changes, you also see some of the changes in our investments.

Per Johannesen Madsen: This year, we actually did that in March, as you recall from our Q4 reporting. When you do those changes, you also see some of the changes in our investments. That is also reflected in this quarter. Then just summarizing an EBITDA for this quarter at the 12.2%, as Mette already alluded to, of course, driven by two factors, and that is the declining gross profit predominant to the inventory write-down, but also to the changes in product mix, channels mix, and some of the initiatives we made in the market to become more relevant. Then investment in marketing. Again, investment in growth as we move forward. Then just moving into a few things on our balance sheet. Inventories, as you will see, inventories is increasing a little bit as a percentage of sales.

Speaker #1: So that's also reflected in this quarter. And then, just summarizing EBITDA for this quarter, at 12.2%, as Meta already alluded to—of course, driven by two factors—and that is the declining gross profit, predominantly due to the inventory write-down, but also to the changes in product mix, channels mix, and some of the initiatives we made in the market to become more relevant.

Speaker #1: And then investment in marketing; again, investment in growth as we move forward. And then just moving into a few things on our balance sheet.

Speaker #1: Inventories, as you'll see, are increasing a little bit as a percentage of sales. We're moving in the right direction, and when I come back in the next slide in terms of our working capital, we're also improving that compared to where we closed last year.

Per Johannesen Madsen: We are moving in the right direction, and will now come back in the next slide in terms of our working capital. We are also improving that compared to where we closed last year. This is of course, a focus as we move forward. As we always do in Q2, and this is just to be upfront with that, we always have the higher inventories at the end of Q2. We will also have this year as we get ready for the very important quarter, Q3. Just to mention that. If you look at the numbers, slightly lower numbers here compared to the sales, and that is what our focus is around. Moving into our working capital, and this is always a difficult comparison to the year before because it always impacts based upon what your opening balance, what your closing balance.

Speaker #1: But this is, of course, a focus as we move forward, and as we always do in the second quarter—and this is just to be upfront with that—we always have higher inventories at the end of the second quarter. We'll also have that this year.

Speaker #1: As we get ready for the very important quarter, third quarter—just to mention that. But if you look at the numbers, slightly lower numbers here compared to the sales, and that is what our focus is around.

Speaker #1: Moving into our working capital—and this is always a difficult comparison to the year before—because it always depends on your opening balance and your closing balance.

Speaker #1: So, what I've shared here is basically what the movements are that we have in this quarter compared to where we closed last financial year.

Per Johannesen Madsen: What I have shared here is basically what are the movements that we have in this quarter compared to where we closed last financial year. We are getting DKK 220 million from our operations. As you saw, that was down compared to last year, so slightly less than last year. Our working capital this quarter is improving, and as I said earlier, also in Q4, that we have a focus on our working capital. We are continuing to focus on that. Then we have investment as planned around DKK 100 million. With the adjusting for the special items, we have a free cash flow in this quarter of roughly DKK 150 million. Compared to last year, that is different because we had very high movement, especially on working capital, due to the closing of the previous financial year.

Speaker #1: So, we're getting 220 million from our operations. As you saw, that was down compared to last year—so slightly less than last year. Our working capital in this quarter is improving, and we, as I said earlier, also in Q4, have a focus on our working capital.

Speaker #1: We continue to focus on that. And then we have investments as planned, around 100 million, and with the adjustment for the special items, we have a free cash flow in this quarter of roughly 150 million.

Speaker #1: Compared to last year, that's different because we had very high movements, especially on working capital, due to the closing of the previous financial year.

Speaker #1: In terms of the guidance, in terms of CapEx, we still expect that to be around 4.5%. And as you recall, that's due to the incremental investments we're making in our electronics shelf labeling, which will be hitting the markets fairly soon.

Per Johannesen Madsen: In terms of the guidance, in terms of CapEx, we still expect that to be around 4.5%. As you recall, that is due to the incremental investments we are doing in our electronic shelf labeling, which will be hitting the markets fairly soon. This also impacts our gearing. When we close this quarter, we reported 3.4. The plan is still to reduce our gearing levels throughout the year. As mentioned earlier, we have launched a share buyback today of DKK 100 million. That has an impact of 0.1 for the gearing, so it is not a huge impact on the gearing. Our focus is still to end the year within the gearing range between 2 to 3. Let me just close off before we go into Q&A, and that is the financial guidance. We are keeping the guidance for the year. Revenue growth around 2% to 6%.

Speaker #1: But this also impacts our gearing. So, when we closed this quarter, we were reporting 3.4. The plan is still to reduce our gearing levels throughout the year, and as mentioned earlier, we've launched the share buyback today of 100 million.

Speaker #1: That has an impact of 0.1 for the gearing, so it's not a huge impact on the gearing. Our focus is still to end the year within the gearing range between 2 and 3.

Speaker #1: And let me just close off before we go into Q&A, and that’s the financial guidance. We’re keeping the guidance for the year—so, revenue growth around 2 to 6%, EBITDA margin 14 to 14.5%, and then our CapEx investments.

Per Johannesen Madsen: EBITDA margin 14 and a half. Then our CapEx investment. In terms of the EBITDA margin, just want to point out that you are looking at a 12.2 for the first quarter. As I mentioned earlier, a lot of the incoming synergies as we talked about last year and some of the comps that we are meeting, is beneficial for the performance in the years ago. That is also why we feel very confident that we will hit our EBITDA margin for the year. With that, I think we will hand over for Q&A.

Speaker #1: In terms of the EBITDA margin, just want to point out that you’re looking at a 12.2% for the first quarter. But as I mentioned earlier, a lot of the incoming synergies, as we talked about last year, and some of the comps that we’re meeting, is beneficial for the performance in the year to go. And that’s also why we feel very confident that we’ll hit our EBITDA margin for the year.

Speaker #1: And with that, I think we'll hand over for Q&A.

Speaker #2: Thank you. To ask a question, please press the five-star on your telephone keypad. If you wish to withdraw your question, press five-star again.

Operator 2: Thank you. To ask a question, please press 5 star on your telephone keypad. If you wish to withdraw your question, press 5 star again. There will be a brief pause while questions are being registered. Our first question comes from the line of Amina Ashraf from Danske Bank. Please go ahead. The line will now be unmuted. Seems like we lost Amina. Back to the queue. Amina, please press 5 star on your telephone keypad again to rejoin the queue. In the meantime, we will go to the next question from Mads Quistgaard from DNB Carnegie. Please go ahead. Your line will now be unmuted.

Operator: Thank you. To ask a question, please press 5 star on your telephone keypad. If you wish to withdraw your question, press 5 star again. There will be a brief pause while questions are being registered. Our first question comes from the line of Amina Ashraf from Danske Bank. Please go ahead. The line will now be unmuted. Seems like we lost Amina. Back to the queue. Amina, please press 5 star on your telephone keypad again to rejoin the queue. In the meantime, we will go to the next question from Mads Quistgaard from DNB Carnegie. Please go ahead. Your line will now be unmuted.

Speaker #2: There will be a brief pause while questions are being registered. Our first question comes from the line of Amina Osha from Danske Bank. Please go ahead.

Speaker #2: Your line will now be unmuted. Seems like we lost Amina. Back to the queue. Amina, please press five star on your telephone keypad again.

Speaker #2: To rejoin the queue. In the meantime, we will go to the next question from Mads Kvistgaard from DNB Carnegie. Please go ahead, your line will now be unmuted.

Speaker #3: Yeah, thank you for taking my questions. I have a few; I'll take them one by one. So first, coming back to the special items and the cost savings.

Mads Quistgaard: Yeah, thank you for taking my questions. I have a few. I will take them one by one. First, coming back to the special items and the cost savings. For me, DKK 75 million in special items seems like a quite significant number. I know that you explained by fewer layers and clearer roles, but can you be more specific on the moving parts here? Then on the cost savings, the DKK 60 to 65 million in total cost savings for the next year and the years to come, is that a net or gross number? That would be my first question. Thank you.

Speaker #3: For me, 1,705 million in special items seems like quite a significant number. I know that you explained it by fewer layers and clearer roles, but can you be more specific on the moving parts here?

Speaker #3: And then on the cost savings, so the 60 to 65 million in total cost savings for next year and the years to come, is that a net or gross number?

Speaker #3: That would be my first question. Thank you.

Speaker #1: Yeah. The special items, 70 to 100 and 5 million, Mads. I think the reason why we have a wide range is this is to do with people also, and we're going through that process that we're launching today.

Per Johannesen Madsen: The special item, DKK 70 to 105 million. I think the reason why we have a wide range is this is to do with people also, and we are going through that process that we are launching today. This is predominantly to severance pay as we progress throughout the moving into the new operating model. In terms of the savings, when you look at that for next year, the DKK 45 to 50 million, that is also predominantly savings on salary costs. Of course, there is a little bit of additional cost when you reduce your headcounts. Not everybody needs a PC, and a little bit of everything, basically. But predominantly, we are talking about salary savings as we progress into next year. This is, of course, from a headquarter perspective, or the central people supporting the full organization, but also includes the different banner organizations and so forth.

Speaker #1: And this is predominantly due to severance pays, as we progress throughout moving into the new operating model. In terms of the savings, when you look at that for next year, the 45 to 50 million is also predominantly savings in salary costs.

Speaker #1: Of course, there is a little bit of additional cost when you reduce your headcount. Not everybody needs a PC, and there's less—a little bit of everything, basically—but predominantly, we're talking about salary savings as we progress into next year.

Speaker #1: And this is, of course, from a—you could say—a headquarters perspective, or the central people supporting the full organization, but it also includes the different banner organizations and so forth.

Speaker #3: Okay, it was more about whether you see this as a net or a gross number. Like, when you gave the synergies, you were pretty direct that it was a gross number, so you might invest some again in the business.

Mads Quistgaard: Okay. It was more like whether you see it as a net or a gross number. When you gave the synergies, you were pretty direct that it was a gross number, so you might invest some again in the business. Should we expect the same from the savings here?

Speaker #3: Should we expect the same from the savings here?

Speaker #1: Oh, yeah. I think what you should look at, Mads, is that the savings we have from doing the new operating model will be around 45 to 50 million.

Per Johannesen Madsen: Yeah. I think what you should look at, Mads, is that the savings we have from doing the new operating model will be around the DKK 45 to 50 million. Then, of course, running the business, we will have to make a lot of commercial choices. We will have to drive the business as needed. It is very difficult right now to predict where we are in 2027, 2028, where the market is, where the consumers are, and their view. We do not know exactly how we are from a competition perspective, and we will make all the commercial decisions needed to drive our business forward. But net, you can say from doing the new operating model, we will get savings around the DKK 45 to 50.

Speaker #1: Then, of course, running the business will require making a lot of commercial choices—will have to drive the business as needed. It's very difficult right now to predict where we are in 2027, 2028—where the market is, where the consumers are, and their view. We don't know exactly how we are from a competition perspective.

Speaker #1: And we'll make all the commercial decisions needed to drive our business forward, but net, you can say that from doing the new operating model, we'll get savings around 45 to 50.

Speaker #3: Okay, makes sense. Thank you. Then let me put two questions together here. So, two quarters with negative like-for-like growth at Matas—what do you think about that here?

Mads Quistgaard: Okay, makes sense. Thank you. Let me put the two questions together here. So two quarters with negative like-for-like growth in Matas. What are you thinking about here? On prices, again, a quarter with negative impact on gross margin in KICKS due to prices. How much is needed for the future? When are we sort of in the place where are you completed with price adjustments for KICKS?

Speaker #3: And then on prices—again, a quarter with negative impact on gross margin in this case due to prices—how much is needed for the future?

Speaker #3: When are we sort of in a place where you’re completed with price adjustments for kicks?

Speaker #4: Yeah, so a couple of comments here, Mads, and thank you for your questions. So, on the development in our growth here and how we have seen that over a couple of quarters, what I think is really important here as the starting point is the position we have.

Mette Uglebjerg: Yeah. A couple of comments here, Mads, and thank you for your question. On the development in our growth here and how we have seen that over a couple of quarters, what I think is really important here to the starting point is the position we have and the assortment range or the mix we have. 75% is still high-end beauty. We have an environment which is very uncertain, and that of course impacts the consumer and the consumer behavior. So that is, and fierce competition, et cetera, which is not making it easier. So it is definitely some headwinds here. Having said that is why we are also working on becoming more for more people, becoming more relevant in even more occasions, and that is why we are broadening out our categories, broadening out our assortment, broadening out having much more price points.

Speaker #4: And the assortment range, or the mix we have, 75% is still high in beauty. We have an environment which is very uncertain, and that, of course, impacts the consumer and the consumer behavior.

Speaker #4: So that is—and fears competition, et cetera—which is not making it easier. So there are definitely some headwinds here. Having said that, that is why we are also working on becoming more for more people, becoming more relevant in even more occasions.

Speaker #4: And that's why we are broadening out our categories, broadening out our assortment, broadening out, having much more price points. That's the introduction of wellness, sun care, et cetera.

Mette Uglebjerg: That is the introduction of wellness, sun care, et cetera. Now we are introducing the new Nordic operating model, and that is an accelerating for our strategy to be even more relevant for even more customers. So that is why we are doing that. So we have more speed, more agility. I am not going to give you any promise on when we are there because what my focus is, what we can control, and that will always be my focus. Obviously there is a world around us nobody can predict. So I am sure you can follow me on that. So I am not going to give you any promise on that, but I can say, "Hey, I would love to have the improvement today than to tomorrow." So that is our going in and that is also why we are doing this change.

Speaker #4: Now we are introducing the new Nordic operating model, and that is an accelerator for our strategy to become even more relevant for even more customers.

Speaker #4: So that is why we're doing that—so we have more speed and more agility. I'm not going to give you any promise on when we will be there, because my focus is on what we can control, and that will always be my focus.

Speaker #4: And then obviously there's a world around us—nobody can predict that, I'm sure you can follow me on that. So I'm not going to give you any promise on that, but I can say, hey, I would love to have the improvement today rather than tomorrow.

Speaker #4: So that is our going in, and that's also why we're doing this change.

Speaker #3: Fantastic. My question was more like: you have 200 plus 60 stores in Matas, Denmark, right? You have two quarters with negative like-for-like growth, new pretty strong online growth, so net-net on a group and Matas, pretty strong.

Mads Quistgaard: Fair enough. My question was more like you have 200 + 60 stores in Matas Denmark, right? You have two quarters with negative like-for-like growth, new pretty strong online growth. So net on a group and Matas pretty strong. My question is more, how do you think about the future for the stores in Denmark? Two quarters with negative like-for-like growth.

Speaker #3: But my question is more, how do you think about the future for the stores in Denmark? Two quarters with negative like-for-like growth.

Speaker #3: Do we expect the closures, or...?

Mette Uglebjerg: Oh, sorry.

Mads Quistgaard: Do we expect closures or?

Speaker #4: Yeah. No, so thank you for the question. I thought you were talking about kicks. The sound is breaking up a little bit here, so let me talk about the matters here.

Mette Uglebjerg: Yeah. No. Thank you for the question. I thought you were talking about KICKS. The sound is breaking up a little bit here. Let me talk about the Matas here. I think it is important when you look at our numbers, you need to look at it from a holistic perspective. We are an omni business. You can see we are growing with great speed on our e-commerce side. What we know is a lot of our customers are going to our stores, browsing, getting advice, et cetera. They are going back, and then they are ordering online, might pick it up in the stores. 50% of our customers pick it up in the stores. That is why you cannot look isolated on our stores or isolated on our online business. You need to look at it from an omni perspective.

Speaker #4: So, I think it's important, when you look at our numbers, that you consider them from a holistic perspective. We are an omni-business.

Speaker #4: You can see we are growing at great speed on our e-commerce side. What we know is that a lot of our customers are going to our stores, browsing, getting advice, et cetera.

Speaker #4: They are going back, and then they're ordering online. They might pick it up in the store; 50% of our customers pick it up in the stores.

Speaker #4: So that's why you cannot look in isolation at our stores or in isolation at our online business. You need to look at it from an omni perspective.

Speaker #4: We are very satisfied with our footprint, so we are not closing and won't close any stores. Of course, we do adjustments. We just recently opened a new store in Nordhavn.

Mette Uglebjerg: We are very satisfied with our footprint, so we are not closing and won't close any stores. Of course, we do adjustments. We just recently opened new stores in Nordhavn. But you need to look at it from a holistic perspective.

Speaker #4: But you need to look at it from a holistic perspective.

Speaker #1: And also, Mads, just in our stores—as always, and I think we’ve talked about this a couple of times—we do not lose money in any of our stores.

Per Johannesen Madsen: Mads, just in our stores, as always, and I think we talked about this a couple of times, we do not lose money in any of our stores. All our stores are profitable, and as long as they are profitable, we will continue to have the stores. Having a store in a certain area will also positively impact our e-com business. We have data confirming that. I think as Mette said, we are looking at it from a holistic perspective. Having stores that will start turning into a negative, of course, we will do the proper actions on that, which is not the case today.

Speaker #1: All our stores are profitable, and as long as they are profitable, we'll continue to have the stores. Having a store in a certain area will also positively impact our e-com business.

Speaker #1: We have data confirming that. So I think, as Mette said, we're looking at it from a holistic perspective. Having stores that will start turning into a negative, of course, we'll do the proper actions on that.

Speaker #1: Which is not the case today.

Speaker #4: But that's part of ongoing business. And Mads, just a data point: 50% of our customers go to our stores to pick up products, but 25% of the customers who pick up also buy something else.

Mette Uglebjerg: That is part of ongoing business.

Per Johannesen Madsen: Yeah.

Mette Uglebjerg: Mads, just a data point. 50% of our customers go to our stores, pick up the product, but 25% of the customers who pick it up also buy something else. That is actually a super good proof point of the very efficient omni model we have and where the two different areas support each other and where we actually gain more sales. Thank you for your question.

Speaker #4: And that is actually a super good proof point of the very efficient omni model we have, and where the two different areas support each other, and where we actually gain more sales.

Speaker #4: But thank you for your question.

Speaker #3: All right, perfect. Thank you. I'll jump back to the queue. Thanks.

Mads Quistgaard: All right, perfect. Thank you. I will jump back to the queue. Thanks.

Speaker #2: Thank you. Our next question comes from the line of Amina Usha from Danske Bank. Thank you for rejoining the queue. Your line will now be unmuted.

Operator 2: Thank you. Our next question comes from the line of Amina Ashraf from Danske Bank. Thank you for rejoining the queue. Your line will now be unmuted.

Operator: Thank you. Our next question comes from the line of Amina Ashraf from Danske Bank. Thank you for rejoining the queue. Your line will now be unmuted.

Speaker #5: Hello, hi again. I hope you guys can hear me. Hi Pia, hi Mette. First, I would like to focus on the momentum in Sweden, actually.

Amina Ashraf: Hello. Hi again. I hope you guys could hear me. Hi, Per. Hi, Mette.

Per Johannesen Madsen: Hi, Amina.

Amina Ashraf: I would like to firstly focus and hi. I'd like to focus on the momentum in Sweden, actually. If we take the KICKS CC growth or decline of 0.3% CC year-over-year, and looking at the Q1 last year where we had high comparables because of Skincity, because of the perfume campaign that was also scheduled in Q1 that didn't take place in that Q1. If we adjust to these changes, what is the adjusted CC growth in KICKS approximately?

Speaker #5: So, if we take the Kick CC growth or decline of 0.3% CC year over year, and look at Q1 last year, where we had high comparables because of Skin City, because of the perfume campaign that was also scheduled in Q1 that didn’t take place in that Q1—if we adjust for these changes, what is the adjusted CC growth in Kicks approximately?

Speaker #1: I think, Amina, if we look at the first six months of the calendar year, that's another way to look at it. And you might want to look at those two quarters combined.

Per Johannesen Madsen: I think, Amina Ashraf, if we look at the first 6 months of calendar year is another way to look at it, and you might want to look at those 2 quarters combined. You will see a growth in KICKS of around 5%. Then there is a little bit of currency and net appeals, and you need to adjust for that. But overall, we see a growth in the combined first 6 months of this year, and that then removes the timing of the fragrance campaign as you were referring to.

Speaker #1: You will see a growth in Kicks of around 5%. And then there's a little bit of currency in that, of course, and you need to adjust for that.

Speaker #1: But overall, we see growth in the combined first six months of this year. And that then removes the timing of the fragrance campaign, as you were referring to.

Speaker #5: Okay, well, that's pretty much in line with what I expected to happen in Sweden, and it's very good to clarify the distinction of the momentum in Sweden.

Amina Ashraf: Okay. But that is pretty much in line with what I expected to happen in Sweden, and it is very good to clarify the distinguishing of the momentum in Sweden. I know you comment on continued strong competition in Sweden, and this is also expected given the intensity of the online peers and the discounts in Sweden. But do you see more rational behavior from your peers in Sweden despite the continued strong competition? You have been able to grow 5%, as you say, in the first 6 months. If you look at the momentum, last Q2, you reported -1.4%, Q3 it went to -4%, in Q4 came the perfume campaign, and now you are reporting -0.3%. There is a clear improvement in the momentum, so can you comment a little bit on the competition dynamics? Is it becoming more rational?

Speaker #5: I know you commented on the continued strong competition in Sweden, and this is also expected given the intensity of the online peers and the discounts in Sweden.

Speaker #5: But do you see more rational behavior from your peers in Sweden, despite the continued strong competition? I mean, you've been able to grow 5%, as you say, in the first six months.

Speaker #5: If we look at the momentum: last Q2, you reported negative 1.4%. In Q3, it went to negative 4%. In Q4, came the perfume campaign, and now you're reporting negative 0.3%.

Speaker #5: There's a clear improvement in momentum. So, can you comment a little bit on the competitive dynamics? Is it becoming more rational?

Speaker #1: Well, I think, Amina, it's maybe a little too early to say that. As we saw, some of our competitors, without reporting for their quarters, were themselves referencing the fact that they were looking at better pricing going forward and being a little bit more disciplined in terms of what they were doing.

Per Johannesen Madsen: I think it is maybe a little too early to say that. As we saw some of our competitors with our reporting for their quarters, they were themselves referencing the fact that they were looking at a better pricing going forward and being a little bit more disciplined in terms of what they were doing. As we progress into the next couple of quarters, we will see that in bigger context. Also when we hit the very important quarter of Q3 and see if we get behaviors which is more disciplined compared to what we saw last year. Where we are right now, there are some very early signs, but let me put it this way, it is too early to basically conclude on that.

Speaker #1: And of course, as we progress into the next couple of quarters, we will see that in a bigger context. And also, when we hit the very important third quarter, we will see if we get behaviors that are more disciplined compared to what we saw last year.

Speaker #1: Where we are right now, there are some very early signs, but let me put it this way: it's too early to basically conclude on that.

Amina Ashraf: All right.

Speaker #1: But if it continues into the next couple of quarters, I think we will be in better shape.

Per Johannesen Madsen: But if it continues into the next couple of quarters, I think we will be in a better shape.

Speaker #4: Promising.

Amina Ashraf: Promising.

Speaker #1: Yeah.

Per Johannesen Madsen: Yeah.

Speaker #5: Okay, good to hear. If I then jump to Denmark and I see the development on the gross margin, I would actually like to talk a little bit about the competition.

Amina Ashraf: Okay, good to hear. If I then jump to Denmark, and I see the development on the gross margin, I would actually like to talk a little bit about the competition, because recently the focus has been on Sweden for the right reason. It is a challenging market, and Denmark has more or less, if I may say, has been the cash cow for the group. Right now, I know this is going to come in next quarter, but there was a pop-up for Rhode, a supplier of beauty that is owned by Hailey Bieber, and there was a queue of 16 hours, as far as I could see on social media, people queuing up to buy things they can basically buy online. There has been another brand that is a Swedish brand called Caia Cosmetics opening a sister store in Denmark. Is the competition dynamic changing in Denmark?

Speaker #5: Because recently, the focus has been on Sweden, for the right reasons. It is a challenging market. And Denmark has more or less, if I may say, been the cash cow for the group.

Speaker #5: Right now, I see—I know this is going to come in next quarter—but there was a pop-up for Rhode, supplier of beauty that is owned by Hailey Bieber.

Speaker #5: And there was a queue of 16 hours. As far as I could see on social media, people were queuing up to buy things they can basically buy online.

Speaker #5: There has been another brand, a Swedish brand called Kaya, opening a sister store in Denmark. Is the competitive dynamic changing in Denmark?

Speaker #5: Or how do you look at these changes in the market?

Amina Ashraf: Or how do you look at these changes in the market?

Speaker #1: I think, Amina, it's of course things that are happening in the market, which we are following very closely. The impact of these in the context of the full market is maybe not as big as the headlines it's getting.

Per Johannesen Madsen: I think it is, of course, things that is happening in the market, which we are following very closely. The impact of these in the context of the full market is maybe not so big as the headlines it is getting. Having said that, it is of course, something that we are following very closely and are well aware of and we take into account in terms of how we go to market and how we do our plans. You say, is that changing? I think it is entrants coming in, and we see that occasionally, and we see that actually almost every year. But it is new players.

Speaker #1: Having said that, it's, of course, something that we are following very closely and are well aware of. We take it into account in terms of how we go to market and how we make our plans.

Speaker #5: Is that changing?

Speaker #1: I think it’s entrants coming in. And we see that occasionally, and we see that actually almost every year. But it is new players.

Speaker #5: Amina, on the full side of the cup, right? Or, what we can say, on the positive side—if people line up for 16 hours for a beauty brand, it just shows how strong the demand for beauty products is in the market.

Amina Ashraf: On the full side of the cup, or what we can say on the positive side, if people line up for 16 hours for a beauty brand, it just shows how strong the demand for beauty products is in the market. If you say competition is not intensifying, there could be an upside for that in the future. So fair. If I then shift from Sweden and Denmark to Norway, being more country-focused as your new strategy, I hope in the future, or it sounds like it is going to be. If we talk a little bit about Norway, your Swedish peers have been commenting on a significant potential in Norway, and I know you have been focused in Norway for a while. Can you maybe tell us a little bit about KICKS' performance in Norway?

Speaker #5: And if you say competition isn't intensifying, there could be an upside for that in the future. So fair. But if I then shift from Sweden and Denmark and to Norway, being more country focused as your new strategy, I hope in the future, or it sounds like it's going to be, if we talk a little bit about Norway, your peers have been commenting, your Swedish peers have been commenting on significant potential in Norway.

Speaker #5: And I know you've been focused in Norway for a while. Can you maybe tell us a little bit about Kicks' performance in Norway?

Speaker #4: So, in general—and thank you for your question, Amina—so, in general, we have a strong belief in the Norwegian market. The situation is very different from Sweden and Denmark.

Mette Uglebjerg: In general, and thank you for your question, Amina. In general, we have a huge belief in the Norwegian market. The situation is very different from Sweden and Denmark. We have a different role. It is expanding. It is about opening new stores. We opened new stores in this quarter. We are not seeing full effect of that because they have been under construction and all that. We expect to see an upside on the Norwegian market and also in our numbers that we follow that. Obviously, with great growth there is also we see increased competition from different areas. Like in KICKS in Sweden, we are also working on being more relevant for even more customers, and we have done some work here to expand our product range, but also how we display that in our stores and also new kind of products, et cetera.

Speaker #4: We have a different role. It's expanding. It's about opening new stores. We opened new stores in this quarter. We are not seeing the full effect of that because they've been under construction and all that.

Speaker #4: But we expect to see an upside in the Norwegian market. And also in our numbers, we follow that. Obviously, with great growth, we also see increased competition from different areas.

Speaker #4: And, like in Kicks in Sweden, we are also working on being more relevant for even more customers. We have done some work here.

Speaker #4: To expand our product range, but also how we display that in our stores, and also new kinds of products, et cetera. But more to come on that one in Norway.

Mette Uglebjerg: More to come on that one in Norway.

Speaker #5: Okay. If I focus a little bit more on Stribene, or the Stripes products, where you say you've been—it's been the number one brand, as I understand it, in Finland.

Amina Ashraf: Okay. If I focus a little bit more on the Matas Striber or the Stripes products where you say it has been the number one brand, as I understand it in Finland and Norway. How is the performance in Sweden?

Speaker #5: And Norway, how is the performance in Sweden?

Speaker #4: So, I think we have had the Norwegian and the Finnish consumer who has accepted the Stribene the best to begin with. But I think it is a matter of timing.

Mette Uglebjerg: I think we have had the Norwegian and the Finnish consumer has accepted Sleekburn the best to begin with, but I think it is a matter of timing. We are doing some resetting in our Swedish store for Sleekburn, allocating more space, et cetera. We have huge belief that this is one of these best practices that can travel across. I am a big believer in in-house brands. I think we have a golden jewel here. I think we can do more and we should do more, and this is a really good example of that. I believe Sleekburn will also be a great success in Sweden. We are having good numbers and we are growing. But it is not number one hair brand like in Norway and Finland yet. That is the ambition for sure.

Speaker #4: We are doing some resetting in our Swedish store for the Stribene—allocating more space, et cetera. We have huge belief that this is one of these best practices that can travel across.

Speaker #4: I'm a big believer in in-house brands. I think we have a golden jewel here. I think we can do more, and we should do more.

Speaker #4: This is a really good example of that, and I believe Stribene will also be a great success in Sweden. We are seeing good numbers, and we are growing.

Speaker #4: But it’s not the number one hair brand in Norway and Finland yet. But that’s the ambition, for sure. I think this is a really good example of some of the things that are traveling across the business.

Mette Uglebjerg: I think this is a really good example of some of the things that is traveling across the business. Sleekburn, Neil and Sure, but also BeautyAct from Sweden taking to Denmark.

Speaker #4: So, Stribene, Neil & Shure, but also Beauty Act from Sweden, taking to Denmark. So it's not only about taking what is really strong concept-wise, product-wise, and broadening that out to Norway, Sweden, and Finland.

Amina Ashraf: Yeah.

Mette Uglebjerg: It is not only about taking what is really strong concept-wise, product-wise and broaden that out to Norway, Sweden and Finland, but it is also the other way around. I just want to say if you comment on that, I think that is the whole idea about the Nordic operating model that will get closer to each other, closer to the market, also closer to these best practices so they can travel across the markets.

Speaker #4: But it's also the other way around, and I just want to say a few comments on that. I think that's the whole idea about the Nordic operating model.

Speaker #4: That will get closer to each other, closer to the market, and also closer to these best practices so they can travel across the markets.

Speaker #5: Makes perfect sense. I guess my last question for now is about the men's campaign that was launched during the quarter. As far as I understand, it's targeting men between 18 and 35 years old.

Amina Ashraf: Makes perfect sense. I guess my last question for now is about the men's campaign that was launched during the quarter. As far as I understand, it is targeting men between 18 to 35 years old. How much on average did that campaign contribute to the revenues? Maybe in Matas banner since it was launched in Denmark.

Speaker #5: How much, on average, did that campaign contribute to revenues? Maybe within meta boundaries, since it was launched in Denmark.

Mette Uglebjerg: I don't have the number top of mind, Amina, but maybe we'll see each other tomorrow and then I'll bring the numbers. I don't have the numbers top of my mind, but it is an example of what we want to become more relevant to even more people. A lot of our customers are female. We believe there's a lot of potential here also within men. So that is a good example of how we address that. It's a campaign that got good traction so much I know, but I can't recall the numbers. But good example of that and we're going to do more of that.

Speaker #4: I have the number at the top of mind, Amina. But maybe we'll see each other tomorrow, and then I'll bring the numbers. I don't have the numbers at the top of my mind.

Speaker #4: But it is an example of what we want to become more of—more relevant, reaching even more people. A lot of our customers are female. We believe there's a lot of potential here also within men.

Speaker #4: So, that is a good example of how we address that. It's a campaign that got good traction—so much, I know. But I can't recall the numbers, but it's a good example of that.

Speaker #4: And we're going to do more of that.

Speaker #5: Well, thank you so much. I look forward to the numbers tomorrow, and I'm very excited to hear more about the short-term or medium-term ambitions later on in the year.

Amina Ashraf: Well, thank you so much and I look forward to the numbers tomorrow, and I'm very excited to hear more about the short-term or medium-term ambitions later on in the year. Thank you for answering my questions.

Speaker #5: Thank you for answering my questions.

Speaker #4: Thanks a lot, Amina, for your questions.

Mette Uglebjerg: Thanks a lot, Amina, for your questions.

Speaker #2: Our next question comes from the line of Sebastian Krau from Nordea. Sebastian, please go ahead. Your line will now be unmuted.

Operator 2: Our next question comes from the line of Sebastian Grave from Nordea. Sebastian, please go ahead. Your line will now be unmuted.

Operator: Our next question comes from the line of Sebastian Grave from Nordea. Sebastian, please go ahead. Your line will now be unmuted.

Speaker #6: Hi, Madame Pere. Thank you for taking my questions. I'll start with the margin. Looking at the adjusted EBITDA margin, it's down more than 200 basis points year on year.

Sebastian Grave: Hi, Mette and Per. Thank you for taking my questions. I will start on the margin. If you look at the adjusted EBITDA margin, it is down more than 200 basis points year-on-year. Now you guide for full year margins to actually slightly increase year-on-year. I understand that in the quarter margins are weighed down by inventory write-downs and that comparisons are set to ease in H2. However, even if I try to adjust for those items and look on an underlying basis, it looks like to me that you still expect a more favorable trade-off between growth and profitability in the course to come.

Speaker #6: I would guide for full-year margins to actually slightly increase year on year. So I understand that in the quarter, margins are weighed down by inventory write-downs, and that comparisons are set to ease in H2.

Speaker #6: However, I mean, even if I try to adjust for those items and look on an underlying basis, it looks to me like you still expect a more favorable trade-off between growth and profitability in the quarter to come.

Speaker #6: So, maybe you could help me understand why you bake in those assumptions currently. And have you seen improving momentum towards the end of the quarter?

Sebastian Grave: Maybe you could help me understand why you bake in those assumptions currently. Have you seen improving momentum towards the end of the quarter, or is it initiatives and KICKS bearing fruit, or what is it basically that gives you the comfort to maintain guidance at this point?

Speaker #6: Or is it initiatives in KICKS bearing fruit, or what is it basically that gives you the comfort to maintain guidance at this point?

Speaker #6: Well, thank you, Sebastian. I think a couple of points on that. First of all, we feel comfortable with the guidance for the year, and one of the key elements is, of course, that when we look at last year's performance for the coming three quarters compared to what we're looking into in terms of the plans, we’re meeting some less aggressive comps.

Per Johannesen Madsen: Well, thank you, Sebastian. I think a couple of points on that. First of all, we feel comfortable with the guidance for the year. One of the key elements is of course that when we look at the last year's performing from the coming three quarters compared to what we are looking into in terms of the plans, we are meeting some less aggressive comps, you can put it that way, and that is of course baked into our plans for this year and also the full year guidance.

Speaker #6: You can put it that way. And that is, of course, baked into our plans for this year and also the full-year guidance. When we then look at some of the initiatives we've had—and I think we've talked a lot about that—and also what is already linked, or baked into our numbers this year, it's a lot of the synergies and the reset, 50 million. And as you saw, I also alluded to it, it's probably more than 50 million, or it will be more than 50 million.

Per Johannesen Madsen: When we then look at some of the initiatives we have had, and I think we have talked a lot about that and also what is already linked or baked into our numbers this year is a lot of the synergies, and we said DKK 50 million and as you saw, I also alluded to it is probably more than DKK 50 million, or it will be more than DKK 50 million, but it is in the second half on the last three quarters that that really will start coming through. When you take that into account, combined with the plans that we have and the focus we have in the business and the new operating model, we feel comfortable that we will be able to deliver the guidance for the year between 14% and 14.5%.

Speaker #6: But it's in the second half, in the last three quarters, that that really will start coming through. So, when you take that into account, combined with the plans that we have and the focus we have in the business and the new operating model, we feel comfortable that we will be able to deliver the guidance for the year between 14 and 14.5.

Speaker #6: So just to be clear, you don't assume improving end-market dynamics from Q1 to meet guidance? Nope. Okay, that's very clear. Then, moving on to the other income line, which is inflated by elevated marketing spend here in the quarter, similar to what we saw back last quarter in Q4.

Sebastian Grave: Just to be clear, you do not assume improving end market dynamics from Q1 to meet guidance?

Per Johannesen Madsen: No.

Sebastian Grave: Okay, that is very clear. Moving on to the other income line, which is inflated by elevated marketing spend here in the quarter, similar to what we saw back last quarter in Q4. How long should we expect these elevated marketing efforts to persist? Maybe you could shed some more light on what sort of marketing campaigns you are pursuing currently and where particularly you are focusing your marketing kroner?

Speaker #6: How long should we expect these elevated marketing efforts to persist? And maybe you could shed some more light on what sort of marketing campaigns you are pursuing currently, and where particularly you are focusing your marketing kroner.

Speaker #6: I think if you look at the numbers, and if you look also at our two banners, the incremental investment in this quarter is roughly 50/50.

Per Johannesen Madsen: I think if you look at the numbers, and if you look also on our two banners, the incremental investment in this quarter is roughly 50/50, Sebastian. Part of that is when you look at the Danish business with the e-com business growing 17% and some of the search and the paid search, of course, that will impact our marketing. That is reported as marketing cost, you can say. That is impacting this quarter. Growing 17%, we were very pleased with that. When we look at Sweden, we have been investing more. It is getting to get in contact with the consumers. We are also launching wellness, and we are launching new categories, and that requires some investment as hitting this quarter. These investments are broadly in line with our expectations for this year.

Speaker #6: Sebastian, and part of that is when you look at the Danish business, with the e-com business growing 17%, and some of the search and the paid search, of course, that will impact our marketing.

Speaker #6: That is reported as a marketing cost, you could say, and that is impacting this quarter. Growing 17%, we were very pleased with that. When we look at Sweden, yeah, we have been investing more.

Speaker #6: It's getting to get in contact with the consumers. We are also launching wellness, and we're launching new categories. And that requires some investment, as hitting this quarter.

Speaker #6: These investments are broadly in line with our expectations for this year. I think the challenging thing for us in this quarter has really been the write-down, which has come very early in the year.

Per Johannesen Madsen: I think the challenging thing really for us this quarter has been the write-down, which has come very early in this year, and those roughly 20 million DKK are, to a large extent, timing, so less concerned on that. Then, of course, marketing from our perspective is always something that we decide on. It is commercial decisions as we move forward. We will continue to optimize the way we do our spend also in the year as well.

Speaker #6: And those roughly 20 million are, to a large extent, a matter of timing, so I'm less concerned about that. And then, of course, marketing from our perspective is always something that we decide on.

Speaker #6: It's commercial decisions as we move forward, and we'll continue to optimize the way we do our spend also in the year to go.

Speaker #7: Yeah. And it's investment in our position and investment in our sales and traffic, and we'll continue on that road.

Mette Uglebjerg: Yeah. It is investment in our position, investment in our sales, and traffic, and we will continue on that road.

Speaker #6: Yeah, but maybe I can ask differently then. Are you finished positioning yourselves currently?

Per Johannesen Madsen: Yeah.

Sebastian Grave: But maybe I can ask differently then. Are you finished positioning yourselves currently?

Speaker #7: I think basically we want to become—we see potential. So we have, if you look just from a club membership, we have 90 Danish club members visit our stores 9 to 10 times a year.

Mette Uglebjerg: No, I think basically we see potential. We have, if you just from a club membership, we have a Danish club member visit our stores 9 to 10 times a year, in KICKS it is 3 times a year. That says something about the potential across our business, and then I am not even talking about the Swedish market is a much bigger market than the Danish market. On that note, we want to become more relevant for much more customers, and that, of course, requires that we communicate about it. But it needs to be some efficient campaigns and some efficient communication we are doing, and to talk about all the broadening our assortment and categories. We are on a journey there, and we are not done yet.

Speaker #7: In Kicks, it's three times a year. That says something about the potential, of course, of our business. And that's why—and then I'm not even talking about the Swedish market.

Speaker #7: It's a much bigger market than the Danish market. So, on that note, we want to become more relevant for many more customers. And that, of course, requires that we communicate about it.

Speaker #7: But it needs to be some efficient campaigns and some efficient communication we are doing, and to talk about broadening our assortment and categories.

Speaker #7: So we are on a journey there, and we are not done yet.

Speaker #6: Okay, that's very clear. Thank you, Mayday. And just one of my last questions here to wrap up: on the new operating model—and congrats on the new model and team.

Sebastian Grave: Okay. No, that is very clear. Thank you, Mette. Just one of my last questions here to wrap up. On the new operating model, and congrats with the new model and team, and same as Amina, I look forward to the update later in the year. Just to clarify here, would you set to put up new targets? Is it fair to assume that the existing medium-term targets effectively are on hold for now?

Speaker #6: And, as with Amina, I look forward to the update later in the year. Just to clarify: would you be setting up new targets?

Speaker #6: Is it fair to assume that the existing medium-term targets, effectively, are on hold for now?

Speaker #7: So, the targets for this year and our expectations for this year remain. We will launch a strategy update later this year, and with that, also a new set of financial ambitions or a business strategy update.

Mette Uglebjerg: The targets for this year and our expectation for this year remain. We will launch a strategy update later this year, and with that also a new financial ambitions or business strategy update. We will revert later in this year with some new insights on that. It is a little bit too premature to talk about that today. Today is about the operating model and Q1, but I am looking forward to have this conversation with you, but at a later time.

Speaker #7: So, we will revert later this year with some new insights on that. It's a little bit too premature to talk about today.

Speaker #7: So today is about the operating model and Q1. But I'm looking forward to having these conversations with you at a later time.

Speaker #6: Okay. No, that's fair. That was it for me. Thank you for taking my questions.

Sebastian Grave: Okay. No, that is fair. That was it from me. Thank you for taking my questions.

Speaker #7: Thanks a lot.

Mette Uglebjerg: Thanks a lot.

Speaker #1: As a reminder, please press five star to ask a question. Our next question comes from the line of Ewa Joe from SEB. Please go ahead.

Operator 2: As a reminder, press five star to ask a question. Our next question comes from the line of Yiwei Zhou from SEB. Please go ahead. Your line will now be unmuted.

Operator: As a reminder, press five star to ask a question. Our next question comes from the line of Yiwei Zhou from SEB. Please go ahead. Your line will now be unmuted.

Speaker #1: The line will now be unmuted.

Speaker #8: Hi, thank you for taking my questions. I have three, and I'll do one at a time. First, I just want to follow up on the pricing initiatives in Sweden.

Yiwei Zhou: Hi. Thank you for taking my questions. I have three and I'll do one at a time. Firstly, just want to follow up on the pricing initiatives in Sweden. You have given some answer, is it fair to understand that your pricing strategy for the rest of the year, and especially in Q3, will pretty much depend on the market and the competitors' pricing behaviors?

Speaker #8: So, you have given some answers, so it's just fair to understand that your pricing strategy for the rest of the year, and especially in Q3, will pretty much depend on the market and the competitors' pricing behaviors.

Speaker #8: Yeah, I think if you’re asking whether our pricing and our pricing behavior will depend on what happens in the market, the answer to that is yes.

Per Johannesen Madsen: Well, I think if you're asking that our pricing and our pricing behavior will depend on what happens in the market, the answer to that is yes. Of course, we'll follow very close to what happens in the market. As we talked about a little bit earlier, it depends on the discipline of our competitors and how they react in the market, and of course, we need to make sure that we are relevant to the consumers and have the right offers and the right products available.

Speaker #8: Of course, we will follow very closely what happens in the market. As we talked about a little bit earlier, it depends on the discipline of our competitors and how they react in the market.

Speaker #8: And, of course, we need to make sure that we are relevant to the consumers and have the right offers and the right products available.

Speaker #8: And that is also part of the plan. As we talked about in Q4, the acceleration that we have initiated—and now also with the new operating model, with the focus on making sure that we, especially in the Kicks market, will have a wider assortment, different pricing tiers, different products, more categories—and that, of course, will help us as we move into the next quarters in the year.

Per Johannesen Madsen: That is also part of the plan that, as we talked about in Q4, and the acceleration that we have initiated, and now also with the new operating model, with the focus on making sure that we, especially in the KICKS market, will have a wider assortment, different pricing tiers, different products, more categories, and that of course, will help us as we move into the next quarters in the year. From a competition perspective and pricing, that's commercial decisions we make every single day. It doesn't mean that we always just take prices down. There's also a lot of opportunities taking prices up. Of course, we also utilize those as we look at the different products, the different markets, and how pricing moves across our countries.

Speaker #8: But from a competition perspective and pricing, that's a commercial decision we make every single day. It doesn't mean that we always just take prices down.

Speaker #8: There are also a lot of opportunities to take prices up, and, of course, we also utilize those. As we look at the different products, the different markets, and how pricing moves across our countries.

Speaker #8: That was clear, thanks. And then, same question on the inventory write-down in Kicks—you have also talked a bit about it. Is it a one-off, or should we expect it also in Q2?

Yiwei Zhou: That was clear. Thanks. Same question on the inventory write-down in KICKS. You have also talked a bit about it. Is it a one-off, or should we expect also in Q2? I understand it's more in the H1 one-offs.

Speaker #8: I understand it's more in the first half one-offs.

Speaker #7: It was a one-off. We had it in Q1, and we don't expect anything in Q2 or later in the year.

Mette Uglebjerg: One-off we have in Q1, we do not expect anything in Q2 or later in the year.

Speaker #8: Okay, thank you. And last question here on the gearing. You talked about aiming to reduce it to the range of two to three times net WDA.

Yiwei Zhou: Okay. Thank you. Last question here on the gearing. You talked about you aim to reduce it to the range 2 to 3x net the EBITDA. Please correct me if I am wrong. If while looking at your cash flow, you have to achieve a quite significant improvement to reduce the target. What are the drivers? To be honest, I am a bit surprised that you still initiate a DKK 100 million share buyback given the current balance sheet.

Speaker #8: But please correct me if I'm wrong. If I'm looking at your cash flow, you have to achieve a quite significant improvement to reduce the target.

Speaker #8: What are the drivers? And to be honest, I'm a bit surprised that you're still initiating a 100 million share buyback, given the current balance sheet.

Speaker #8: And I think, just my comment—thanks. Yeah, thanks for the question. I think the share buyback is following what we launched last year, and then we are continuing this year.

Per Johannesen Madsen: I think-

Yiwei Zhou: That is my comment.

Per Johannesen Madsen: Yeah. Thank you for the question. I think the share buyback is following what we launched last year, and we are continuing this year. It has a 0.1 impact on the gearing, so it is not a huge impact. When we then look at the years ago and the performance, the financial guidance we have which we are keeping, delivering that combined with the improvement that we have planned for this year in terms of our working capital, we feel comfortable with the gearing end of the year. That is some of the elements. So, business performance in one hand, and then slight improvement on our working capital at the other end, which is combining, making sure that we will decrease the gearing as we progress this year.

Speaker #8: It has a 0.1 impact on the gearing, so it's not a huge impact when we then look at the years ago and the performance.

Speaker #8: The guidance, financial guidance, we have, which we're keeping—delivering that, combined with the improvement that we have planned for this year in terms of our working capital.

Speaker #8: We feel comfortable with the gearing at the end of the year. And that's some of the elements—so business performance on one hand and then slight improvements on our working capital at the other end.

Speaker #8: Which is combined with making sure that we will decrease the gearing as we progress this year. And is it fair to understand that you are aiming for the high end, so three times net WDA by the end of this year?

Yiwei Zhou: Is it fair to understand that you are aiming the high end, so 3x net the EBITDA by the end of this year?

Speaker #8: I think if we do the math and you look at the numbers, I think I would be promising way too much if I said that we would be anywhere else next week.

Per Johannesen Madsen: I think, if we do the math and you look at the numbers, I think I would be promising way too much if I would say that we would be anywhere else.

Yiwei Zhou: Okay. Clear. Thank you. I will jump back to the queue.

Speaker #8: Okay, clear. Thank you. I'll jump back to the queue.

Mette Uglebjerg: Thank you, Alain. I don't think we are having time for more questions today. But thanks a lot for joining the call. Just as a closing remark, we are standing on a really strong platform. We have a lot of good things going on. We also see that the potential across the group. That's why the strategy remains the same. But we are accelerating the strategy by launching a new Nordic organization. With that, I wish you all a pleasant day, and thank you for joining, and thank you for all your questions.

Speaker #7: Thank you very much. I don't think we have time for more questions today, but thanks a lot for joining the call. Just as a closing remark, we are standing on a really strong platform.

Speaker #7: We have a lot of good things going on. We also see there's potential across the group. That's why the strategy remains the same.

Speaker #7: But we are accelerating the strategy by launching a new Nordic organization. And with that, I wish you all a pleasant day. Thank you for joining, and thank you for all your questions.

Per Johannesen Madsen: Conference recording stopped.

Operator: Conference recording stopped.

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