Asker Healthcare Group (Stockholm:ASKER) Q3 2026 Earnings Call

0:00 Welcome to Askr Healthcare Q3 earnings call 2026. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to CEO Johan Falk and CFO Thomas Moss. Please go ahead.

0:24 Hello and welcome to Askr Q3 report 2026. We are happy to present a good and strong quarter, which feels very good. We have 24% adjusted EBITDA growth for the quarter, which we're very proud of. Net sales of 4.8 billion, and we're up 15%. And more importantly, 5% organic, growing a bit faster than the market, which we have promised to do and see happening this quarter as well, so very good. The adjusted EBITDA of 473 million were up 24% out of which 4% was organic. As you know we're building a fantastic warehouse down in Gothenburg and those costs were included in this quarter's result. If you take away the parallel distribution for the quarter it would have been an 8% organic adjusted EBITDA for the quarter.

1:27 The adjusted EBITDA margin were up to 9.9%, so 0.6 percentage points compared to last year. But maybe more importantly, for the first time last 12 months, we were reaching our target of 10% EBITDA margin also up 0.6 percentage point from last year. So that's really, really good to see the scale of the group and the efficiency gains we get from being the market leader. It's improving the EBITDA margin quarter over quarter. So that's great. The cash flow was robust from the operation and then given the capital light business we have, the R over RK was 69% for the quarter. Even though we welcome new companies to the group, our net debt over EBITDA were at 2.33, which is also way below the 2.5, which we have promised to stay under. We welcome four new acquisitions this quarter, and we also have reached 100% of the acquisition target, which I'll come back to later in this presentation.

2:40 Looking at the 12 months, which I like to do, I mean, this is a steady, slow growing market where we improve our business in many dimensions and grow faster than the market. So on a 12 month basis, we had 21% adjusted EBITDA growth. R over RK, 69%, also in the longer perspective, that feels good. 10% that mentioned ringing the bell a bit reaching this target. We came from 6% way back in time and now have we improved in all lines on the P&L to reach 10%. So that's a little bit celebrating internally for us. And the 2.33 in the leverage. This is the chart I internally use as well to make sure that whatever we do, we should improve the customer satisfaction, number one, organic growth, but also towards the market and our dear investors. show that we are quarter by quarter having taller and taller bars on this chart.

3:49 And this has been going on for many, many years. And I see no reason why it can't continue for many years as well. We have a fantastic pipeline of new companies that would like to come into the Askew family and the market is growing steadily organically. So hopefully we can continue this journey for a very long time. Over to you, Tom.

4:11 Great. Thanks, Johan. Let's look in a little bit more detail at some of the numbers. If I start with the overview of the financial performance for the group, as Johan said, good solid quarter for us, both in terms of earnings and EBITR. Net sales were up 15%, 5% organic. We will dive more into the regions in a second, but you'll see there's good revenue growth coming in north and the acquisitions contributing especially strongly in both west and central. Adjusted EBITDA up 24% in Q3, 4% of that coming organically. And as Johan mentioned, we have the one-off effects on the new DC operations, slightly dragging down the overall headline figures. Adjusted EBITDA margin at 9.9%, as Johan mentioned.

4:56 I would also say we have spoken to quite a lot of you over the last few months, many analysts and investors, and there's a very detailed breakdown in Note 5 at the back of our interim report if you're interested in understanding the bridge to adjusted EBITDA. And then if we turn to the right hand side of this chart, we can just have a look at the nine month perspective. And actually, we've had a very stable year. So Q1, Q2, Q3, the trends that we have seen have very much played out through all three quarters. So 6% organic growth in EBITDA, 18% acquired growth, 23% total EBITDA growth with net sales organic growth at 5%, as Johan has mentioned earlier. If I go into the regions in a little bit more detail, start with business area north.

5:46 Also, a good solid quarter. Good to see organic revenue growth at 10%. Adjusted EBITDA in the quarter is down 7%. And as I've mentioned before, and as Johan's mentioned, there's 16 million of additional costs due to the parallel operations with the new DC impacting that figure. I have a page in a second talking a little bit more about the Gothenburg warehouse, so I will come back to that. Important to note that in Region North, we have the Nordic countries, as you can see in the little map there. So it tends to be our smallest region by far in volume terms. So small numbers can make quite a large difference to some of the percentages. But if you look on the right-hand side, I think the picture that we get from the nine-month year-to-date figures is a good representation of the region.

6:33 Solid sales growth and solid EBITDA growth at 4% as well. We don't often include exciting pictures in our presentations, but we couldn't resist it this time. This is the new distribution center down in Gothenburg, a super facility, state of the art activity, operations, automation. We're extremely proud of it and extremely proud of the team that has executed this so well on time, on budget, and we're very much looking forward to the to the benefits that will flow through into the P&L and to the rest of the group that will come later in the year. But as I say, we don't often put pictures in, but this is something that we're extremely proud of.

7:21 A couple more details on the distribution centre. I'm conscious that we've talked quite a lot about this over the last few quarters and we've thrown quite a lot of numbers out. So it was a good opportunity just to collect all of those numbers in one page. So what you see here is the timeline along the top. and then the different aspects of financial impact that come from the new distribution centre. I should note in italics, I've tried to put what we have said previously so you can compare what we have delivered to what we have previously talked about. And as I said before, I think we are on track in terms of what we promised and what we have spent and what we have delivered. So if you look in the middle of the chart there, under H2 2026, We have 30 million of capex has gone out in Q3. We have another 40 million we're expecting to pay out in Q4. We had previously said that we expected to spend around 75 million of cash capex in H2 2026. So we're in line with that. There's a little bit of further capex that will go out in H1 2027, but you shouldn't misread that to imply that there's still major building activity or major installation activity going on in the warehouse.

8:36 That's simply the time lag between installing the equipment, getting things up and running and tested, and then actually the invoices being paid. So net-net, we will be very much in line with the original communicated capex expectation of somewhere between 300 and 330 million sets. and then as we move into H2 2027, we will see the group CapEx drop back to that normal level that I've talked about before, somewhere around 2% of sales. One-off costs. You see in the middle of the chart here, 16 million in Q3 that we've talked about. We expect a similar amount to come in Q4 as well, as we have this period of double operation of warehouses. We make sure that everything is working and we are able to make sure that we don't let any of our customers down through this transition phase. Previously, I had talked about low tens of millions of SEC in H2. So again, in line with that communication.

9:34 And then as we move into H1, there will be a small tail of further one-off costs, but smaller than either Q3 or Q4 on a standalone basis. And then potentially as we move into 2027, there may be some small scrapping costs associated with old equipment in the old warehouses. That is a little bit uncertain at the moment because obviously you try to sell as much of that as possible, but be reassured that that is a non-cash item. Working capital, we talked about needing around 100 million of extra working capital through the second half of 2026. That's what we see. That level has actually peaked now at the end of 20, sorry, at the end of Q3. We expect to have that slightly elevated level of double capital through to the end of 2026. And then it will start to tail off relatively quickly as we move into the first part of 2027.

10:29 Lease costs. The total operating cost of the facility is very similar to what it was in our previous old facilities. So we swap two, possibly even arguably three different facilities to a larger, more efficient, new, well-located facility and the total cost to us on a running basis is the same as it was before. So we're happy about that. and then the EBIT A savings that will come through in the second half of 2027 between 50 and 60 million per year. And that's still very much in line with the original forecast we gave. A little bit more detail there, but hopefully you find that useful as we've talked a lot about this. All right, I move forward to Business Area West, which, as you will remember, has had very pleasing momentum all the way through 2026. We continue to see that in Q3.

11:27 Revenue growth up 11%, 3% organic growth and strong margin step up, driving the adjusted EBITDA up 34% once you include the M&As as well. And there are a few different dynamics underlying that. One, of course, is something that I've talked about before, the strong performance of our home care hub in the Benelux region, an extremely strong operation where they continue to find operating efficiencies from that unit. which is a major contributor to the strong performance in West but also it's important to note that the M&A's that we've brought in over the last few years into that hub but also in our Ireland and UK business we did a good acquisition there with HSL 18 months or so ago they have in turn done acquisitions and we are starting to see those scale benefits cooperation between those companies so we see a very Business Area Central also a nice strong quarter with the acquisitions continuing to be a

12:57 key engine of the performance in Business Area Central net sales up 32% organic revenue growth at 0% I've talked about this before but we continue to see that mix shift developing in Business Area Central where we have been very focused on margin and efficiency it has meant that we have walked away from and some of our older units in Business Area Central, a move that we're happy with. We're happy to sacrifice some of that lower profitability revenue and we see that come through strongly. The other point to obviously continue to note about Business Area Central is how Thank you very much. A brief look at the RO over RK. Johan mentioned this.

13:53 This is a key internal metric, as I keep saying, that the graph itself is perhaps not super exciting, but it shows us continuing to work with it, continuing to nudge in the right direction, focusing on margin, focusing on working capital. And that's the thing that's delivering the cash to drive the M&A engine as we develop the business going forwards. A word or two about cash flow. Also a solid, robust view on the cash flow. Important to just remember what I mentioned about the temporary increase in working capital due to the double warehousing activities that we have going on in Gothenburg, which slightly impacts the headline figure, but completely in line with expectations. CapEx for the Gothenburg warehouse also in line with expectations.

14:38 overall cash conversion running exactly as we would want it to be and we continue to have this good visibility on future earnouts coming in 2027 which are much lower than the earnouts that we paid back in Q2 2026 if you remember we paid more than 450 million out in Q2 and then one final page from me before I hand it back to Johan a brief look at the leverage picture again Slightly down from Q2, we were sitting at 2.37 at the end of Q2. We've come down a little bit, but we are very confident in our ability to manage leverage and ensure that we have the capacity to continue to drive the M&A agenda as we choose to. I also include the alternative leverage ratio I've mentioned this before this is very much equivalent to the banking covenant definition where we include all of the earn out debt but I think also reasonably we include the like-for-like effect so we include the pro forma EBITDA of acquisitions and that gives us a leverage of 2.41 according to that definition and with that I hand back to Johan Thanks Tom

15:51 Very good. Okay, let's look into the second engine, the M&A. This quarter, we have welcomed four new companies to the group. It was Murray Surgical in Ireland, MedChemie in Norway, and also Laboclinic and Ambracel Solutions in October. A total of 473 million. So it's a good addition to the group, fantastic companies, good entrepreneurs in different disciplines. We also, after the quarter closed, welcomed Theresa in Estonia. So a good quarter when it comes to M&A as well. And we have a very good pipeline. I'm very happy to see that our strong market leader position making us an attractive company to sell to companies of families across Europe that want them to continue and improve for a long time are turning to us.

16:50 So that is, I'm very proud to see the long line of good companies that we are hopefully welcoming over the years to come. And we have at the bottom here a little bit of a graph we introduced this last time. We say that we have reached more than 100% of the yearly target. And to explain what I mean, as you are well aware of, a good serial acquirer or having a good stable organic growth using the cash flow to welcome new companies to the group and that is what we call the twin engine and for us to have a cash plan to buy 10 to 12 percent EBITDA growth every year that's what what we at least should do and we're happy to see that we have reached that point now we have a quarter left so we'll not stop doing acquisitions as you can imagine but this is good to see and I think it's a good way to measure I mean be disciplined on price we we have an average of 7x but EBITDA where we pay for the different companies and using the cash to acquire new companies and see the growth coming.

18:03 So that's a good sign and a good way to follow a serial acquirer and making sure that you have the cash to acquire new companies. So we've reached that point now, which we're proud of. Looking into one of the acquisitions we do roughly 10 to 15 companies acquisitions a year so it's hard to explain everyone in detail but Murray Surgical and as you know we bought the platform acquisition in Ireland last year HSL Group so this is a very good addition to that fantastic company we have. They are a market leader and distributor of specialized surgical and medical products and we see that they are adding roughly 73 million and there are nine employees in these niche segments that are complementing the HSL assortment in a very good way. Hopefully we can see some cross-selling as well across those companies.

19:04 All the companies we have bought the last years will have a positive EBITDA addition to our EBITDA margin as well, so that's good to see. So if we're coming to an end before the Q&A session, just summarizing Q3, which we are proud to present with a 24% adjusted EBITDA growth. We have reached the 10% last 12 months margin, which are a little bit of a victory for us to see that we're not only growing with acquisition, we're not only having happy customer, but we get the efficiency out of the group and using the scale and being able to get the purchasing power across the group and it translates into real numbers.

19:55 and we have reached 100% as I mentioned of the acquisition targets for a year and with a very good pipeline and good visibility we're now discussing them the deals will hopefully do next summer so it's a we've reached a good momentum and then having discussions with roughly a couple of hundreds different companies in our 19 countries so this is a broad distributed activities and then all the regions and all the different countries are doing an excellent job when it comes to keeping this momentum. And going forward the areas of focus continue to grow faster than the market organically making sure that it's always the cash that is in focus to make sure that we have enough cash even 2027 to welcome 10 to 12 percent growth at least which we have for many years.

20:49 and broaden the product offering. We're serving millions of nurses and hundreds of thousands of doctors on a daily basis. And we want to be their number one partner to make the healthcare more efficient across Europe. So that's something that is always priority number one for us. I think I'll stop there for this presentation and open up for questions. If you wish to ask a question, please dial pound key 5 on your telephone keypad. To enter the queue, if you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Eric Castle from Danske Bank. Please go ahead.

21:36 Hi, good morning. I was going to ask about the acquired margins that we're seeing now. And I know you pushed back on this before, but what I'm seeing, is that they've done this year running close to 19% EBITDA margin since closing. And you showed that in note 4,502 million in sales, 94 million in contribution on EBITDA. When I tried to square the performer numbers, it looks like they used to run at around, you know, 12% margins before that. And you said, I think last conference call, that it's accretive, not very accretive. So I was just wondering about this 19% number. Do you think that these companies could sustainably hold that sort of high margin level, if this is correct? Or do you think there's some temporary post acquisition effect here that helps ease the margins?

22:28 I can take that one, Erik. I think maybe we would have to have a quick look at the spreadsheet because in all honesty, I don't recognize that 19% Our view is that we bought good businesses this year. They are doing a good job in the niches that they're operating in. They are clearly margin enriching for the group as a whole. So on average, I think your 12% that you quoted is much closer. You show it in note four.

23:05 You show that the acquisitions here today have added 94 million in contribution to report the numbers and 502 million to sales. I get that to 19% margin. So I was just wondering if there's anything special with it.

23:21 Let me come back to it, Erik. I need to try and understand the point that you're making there. I think we'll probably not solve it here in this question. But in quick answer to your question, 19% is not a sort of sustainable or underlying margin level for the M&As that we've done, no.

23:40 Okay, perfect. Then I just have another question on North. If we exclude the sort of temporary effects of of having double warehousing. The north margin, I get it to 9.4 versus 9.9 a year ago. So still a bit worse despite the strong organic growth. So I was just wondering a bit about the drop through on what's happening there. Where are you seeing those effects happen? How much of it is mixed? Where do you see cost inflation? I guess any sort of color and explanation in more detail would be.

24:21 Yeah, no, and I think you're absolutely right. I recognise the 9.4 that you mentioned there, Eric. So yes, there is a small drop, Q3 25 to Q3 26 on the, if you like, the underlying margin in North. I think Q3 is a small quarter for region North. So relatively small, absolute changes in numbers can have quite a large impact Thank you very much. A very stable picture for operations in North.

25:13 So I think partly those numbers, you have to look at them in a slightly longer context, given that Q3 is a small quarter for us. I think, and again, this is a little bit more anecdotal, and I wouldn't want to try and put too much weight on this, but there is perhaps around the edges, around the margins, just in small numbers, a little bit of pressure from what I might call the Middle East Hormuz effect. We have seen a tiny bit of pressure in a couple of places on pricing. So there is a little bit there, but I don't think I would want to sort of suddenly make a big deal of it and blame it on that. I think the effect that you see and the margin drop that you see is much more driven by normal fluctuations and the fact that Q3 is a small quarter and a few things falling one quarter or another can make quite a big difference to those percentages.

26:07 Okay, perfect. Thank you. Just last question, you talked previously about Gothenburg costs being low tens of millions, 16 millions now, do you expect them to come down to that sort of initial guidance or should we going forward pencil in around the same level as we saw now?

26:26 What we said on that extra slide I presented is we had 16 million in Q3. Q4 will be similar to Q3, so call it another 16 million. I don't know exactly how, but it'll be in that range. So that would be 32 million in H2. And at least in my world, 32 million counts as low tens of millions.

26:47 Fair enough. Thank you. As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad. The next question comes from Jakob Lemke from SEB. Please go ahead.

27:08 Yes, good morning. My first question is also on NORF. I struggle a bit to really understand the development here. It's actually the second quarter here where we have quite strong top line growth but weak margin development. So you can elaborate a bit more on how top line can be so strong and margins still quite weak.

27:36 Yeah, I'm not sure, Jacob, that I can add so much to the answer I just gave to Erik on that. I think we are Comfortable and confident in the underlying performance in North, there are some natural fluctuations. I don't know, Johan, maybe you want to add a word

27:52 or two? I think, I mean, for those of you who have followed big industrial projects, which this is one of the projects that takes like three years from the PowerPoint to it's fully functional. It's impossible for on a quarterly basis to kind of see exactly what cost that goes into exactly what line at what time. This is big project that kind of impact the whole group. We are on time, we are on budget and we will see the 50 to 60 and so on. So that we feel comfortable around but it of course affects the whole group when you're moving a lot of I think they deliver 20 000 boxes per day you can just imagine the change and since I'm a bit you know I'm a bit extreme in the end I want full redundancy I want to make sure that we have Our old warehouse fully functioning at the same time as we build up the new one, so we don't disappoint the nurses and doctors and not being able to deliver. During these three years, you have, of course, some extra costs and some small troubles that you need to fix.

29:07 So I think we need to take a half step back and look at the totality. It's roughly 350 million in investments. it will take a couple of years to make it happen and we still are focused on this 50-60 million that will give us profit during this time of a little bit extra working capital and cost it can of course influence the quarter by quarter comparison especially when you have a small quarter you know it kind of influences the the impact so i think that's a good answer to me top line growth is the most robust thing we have when you're selling thousands and thousands of Supplies, device and equipment to the Nordic hospitals and healthcare centers. That's what matters and that's what counts and I think you should not be worried about this underlying stability of operations in North.

30:00 Okay, but maybe just then on the top line component, I mean two quarters now in a row with 10% organic growth and then it was I think seven in Q1, so just What is driving that strong growth and is there any sort of product area or subsidiary or anything you can elaborate on?

30:22 Yeah, I think maybe I switch it and say that there is no We're not looking at a situation where we had one big one-off project. If you go back to 2024, we had the effect of the GDE helping the result. So it is a broad-based picture. The underlying operations are good. We are finding new customers. We're finding new channels. We're finding efficiencies in our operations. So it is a genuinely broad-based effect. But I think as we're keen to emphasize and Johan is keen to emphasize, you shouldn't read too much into either a very strong growth or a very weak growth in any individual quarter.

31:08 Fundamentally, it's a very stable market out there. We, over time, will consistently do a little bit better than the market. But I wouldn't be building 9 or 10% organic revenue growth into my model for North going forward. We've had a couple of good quarters and the business is doing well. The teams out there have done a good job to deliver that. But that is clearly not a long-term sustainable trend. It will revert to the kind of 5, 6% growth rate that we're targeting across the group as a whole.

31:42 Yeah, and as I mentioned on my second slide, 21% adjusted EBITDA growth on a rolling 12-month basis. And for those of you who have followed us for a number of years, you know that we have been delivering those kind of growth numbers for a very long time. And if you divide that up, it is faster than market growth organically, 5%, 6% sometimes, sometimes even more, and then additional M&A growth. So looking at these specific quarters in a specific country or a region, it can difference a little bit, but it's usually a good explanation underneath. Hopefully that answers your question.

32:30 I understand. Then on Western and Central, Wondering first if you have any sort of one-time benefit on earnings in this quarter from currency valuation of operating receivables and liabilities. I think you had some 15 million in positive other income in the income statement for example.

32:58 No, I don't think, I think what you see on the picture for those is a fair underlying reflection of the organic performance of those businesses, Jacob.

33:14 Okay, then on West, I think you gave good color here on the call of what's driving the good earnings growth. Given that it sounds to be quite efficiency driven, should we read that as you have achieved a higher level you're now operating at and that we can assume at least the margins you're doing now to be sustained going forward?

33:39 I think that's important and I really want to emphasise this. We see the margins that we are reaching in West as being sustainable. The comment I gave was very much about the rate of increase will probably slow. So we have, in a sense, stepped up to a new baseline and we will continue to improve from that new baseline. But I don't think you can expect us to sustainably maintain this rate of increase. The rate of increase will slow a little.

34:16 And then maybe finally on M&A, I mean, you've done quite good pace. Since the summer, I would say, do you still see that you have a pipeline and can sustain this here in the sort of coming six months?

34:29 Yes, absolutely. I mean, I think we can say that we have reached the position we want to be in. We have roughly two years of visibility around 200 contacts in this our 19 markets which we are having a dialogue with and then we slowly but steadily are getting to know these companies and when they are ready and we are ready we have a bilateral discussion and they are happy to to come to us and we were happy to buy them after of course due diligence and all of that so we have We have no problem of finding good companies to spend our cash flow going forward. Right now I think the pipeline is almost full to next summer and it's more of a matter of who we should welcome first than having a problem finding anyone. But having said that, we will be disciplined around pricing.

35:26 So 7x is kind of the average. I think we're a bit below that right now. And then also being disciplined on leverage, making sure that we use our own generated cash as we welcome new companies. So good visibility, yes.

35:45 Sounds good. That's all from me today. Thank you.

35:52 Thank you very much. The next question comes from Gustav Bernebled from Nordia. Please go ahead.

36:01 Yes, good morning. It's Gustav here from Nordia. I thought we'd just come back slightly to north. Just sort of in a scenario, Tom, you highlight there could be some pressure from raw material price increases, etc. To get your sense of, are you able to implement price increases to sort of offset this? Or are you doing that right now as well? And how fast can this sort of be pushed through in such a scenario?

36:32 Yeah, I try and answer that at a sort of a high level. It obviously varies between countries, between customers, between products. Broadly speaking, big picture, longer term, we actually find that we are not a business that gets squeezed in the middle. You know, we have big experience of that, even if you go back to the kind of COVID times with us being between the healthcare system and the OEMs. We have generally over time been very successful about pushing price increases through to our customers or resisting price increases from the OEMs. So it's not as though we sit in a system where we are the one who is vulnerable and needs to absorb the ebbs and flows of what comes down the value chain towards us. Having said that, there will always be some cases of certain customers or certain products that it takes longer to get the price increase through or we have to look for a different source of product.

37:32 So there are smaller short-term fluctuations. and I think we probably are seeing just a little bit of that in North at the moment. But the big picture, longer term, the structural strength of the position that we now find ourselves in, the good relationships that we have with our customers and the good relationships that we have with our OEMs means that we are very secure, that we are not the guy that gets squeezed in these situations.

38:03 That's helpful. Just to clarify, there are no sort of extra ordinary price increases that we are seeing now, sort of, in the last couple of quarters and Q3? And nothing that sticks out going forward?

38:17 No, it's small effects around the edges on occasional customers or occasional products or categories. There's no sort of large systemic block of a challenge that we need to address, no.

38:34 Perfect. And then on Central, I mean, a clear focus on profitability for sure. I mean, and then of course, quite limited top line growth, at least organically. I mean, how should we think here going forward? Should we expect you to turn on the switch and turn more into sort of organic sales growth in the coming quarters now for Central? Or how should we think?

39:01 Yeah I mean I think first and most importantly I think the basics of the growth is of course the market itself and there is no difference of the the duck region or Poland Czech and the market that summarizes the central compared to to west or north we we are breaking as many legs in different countries and then we have the same need so three four percent market growth is what you should expect from the underlying market and since we are buying Top companies in each segment, we should perform a little bit better than the market. And I can assure you that the companies, the fantastic team in Central, they have welcomed a lot of good market leading niche companies that are performing much better than what you see in this total sum of zeros.

39:50 So you should expect, and I'm expecting, you know, Thank you very much. the medium to long term they're doing a great job welcoming companies that are growing faster than the market so central should grow faster than the market in medium to long term absolutely yeah it's a little bit the same message that we've given for the other regions where we you know over time

40:31 they will all come back to this sort of core fundamental performance as Johan describes. So in central, we would expect the rate of margin increase to slow and we would expect the rate of organic revenue growth to increase again as they come back to the kind of the core fundamentals that we buy businesses that are a little bit better than the average and we add The ASCA group benefit on top of that, which means that we get some leverage down to margin as well. Yeah.

41:08 That's very helpful. And then just a final one on, if we look at the P&L, I mean, the financial income and expenses seem to be very low in the quarter. Anything to bring with us going forward here?

41:23 No, I think that of course also fluctuates a little bit with FX rates and those sorts of things. That's the only thing that drives those fluctuations. So I think that one you have to be We don't do anything clever or complicated with our funding structure. We're not engaging in exotic financial instruments or anything like that. So again, this is something that should always revert to the mean. And certainly from a modeling perspective, I would always put the long-term average in for those lines and see that going forward, that there is no fundamental structural change in anything that we're doing down there.

42:02 That's very clear. Thank you very much. Thanks, Christoph. There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

42:16 Okay, thank you and good questions and thank you for listening and see you again in a quarter. Thank you and bye.