Scandi Standard (Stockholm:SCST) Q3 2026 Earnings Call

0:00 Good morning everyone and thank you for joining us on today's Scandi Standard interim report for the third quarter 2026. My name is Drew and I'll be the operator on the call today. Following the prepared remarks, we will hold a Q&A session. If you would like to ask a question during that time, please press star followed by one on your telephone keypad and to withdraw your question, it's star followed by two. With that, it's my pleasure to hand over to Jonas Tunstall, CEO to begin. Please go ahead when you're ready.

0:31 Thank you and good morning everyone and welcome to this presentation of Scandi Standard's result for Q3 2026. My name is Jonas Thunestad and I'm the CEO and Managing Director of Scandi Standard and I'm pleased to have Fredrik Sylvan, our CFO by my side today. I'm also glad to report a strong growth and a result in the quarter. So next slide please. In Q3 2026, we see a strong progress toward our financial targets. We see 8% growth in net sales and strong demand. We see an 18% increase in adjusted EBIT and that gives us a margin of 5.4%.

1:19 and that is due to that we continue to climb the value ladder in ready to cook that is our main business but we also see a strong underlying improvement in our ready to eat business and it's a result of our improvement programs and that are continuing with full force but I also want to remind you all of that Q3 is the season's strongest quarter Then during the period we have made a ready-to-eat acquisition of Glenhaven Foods and we bought it for 1.4 billion SEK and that will strengthen our European position within breaded products.

2:04 The Glenhaven Foods has a focus on the Irish and the UK retail clients, and it's partly financed by an oversubscribed capital increase of around 400 million SEK. So next slide, please. And before going further into the results of the quarter, I'd like to spend a minute on Glenhaven Foods. We completed the acquisition in the first half of October, so it's not in the Q3 figures. Glenhaven builds on a strong retail position of Scandi Standard in Ireland and provides some bridgehead into the UK retail market. We are the ready to cook market leader in Ireland today and this gives us the ready to eat leadership in Ireland as well. The acquisition also brings a strong management team with a track record of profitable growth and well invested sites with capacity headroom. And the capacity headroom is almost 50%.

3:06 We bought it at around 8.2 times EBIT and we expect the deal to add more than 10% of EPS on a 2025 basis. And that including the impact of the capital increase and finance costs. So we are very pleased to welcome the Glenhaven team to Scandi Standard and we look forward to driving the business further. Next slide, please. So moving back to the quarterly results and the reason why we see a strong demand, it's related to these three value drivers for chicken, responsible, safe and nutritious, convenient, versatile and tasteful and affordable because it's sustainable. So next slide, please. And here you can see the strong historical and ongoing consumer trend for chicken.

3:57 On the graph on the right hand side, you can see the long term growth in chicken benefiting from substitutions from other proteins like pork and beef. And as you can see, we're estimating a 3% volume CAGR in the Nordics and Ireland. So next slide, please. And one of these three value drivers is affordability, and it is benefiting from other proteins just because it is sustainable and affordable. So price has always been important for consumers, and the focus has increased even more in the current environment of high food prices. So beef prices are at a high level and are expensive, which chicken is benefiting from, but also the long-term trend of switching protein from red meat to poultry.

4:48 So chicken is affordable in all segment and that gives us further opportunities to drive long term volume and value creation. So we see further opportunities to drive more value out of chicken due to its affordability relative to peers. And as you can see on the right hand side in the diagram. Next slide, please. And on this slide, we want to present our EBIT per kilo measure. And EBIT per kilo is a good measurement of value creation for our business. So Q3 2026 adjusted EBIT per kilo was 2.72 SEC compared to 2.36 last year, which is an increase of 15%.

5:34 In Q3, as mentioned before, is seasonal our strongest quarter, but we have a positive momentum towards reaching our 2027 targets. And it is in the different colors you can see in the diagram. You can see development in the different segments and note the increase significance of ready to eat. Next slide, please. And this table shows the reconciliation of our segments, strong net sales growth in most of the markets, strong EBIT contribution from ready to cook and note improved results from ready to eat. And as always, we want to remind you of the category other includes our ingredients business and our corporate costs.

6:22 Next slide, please. And here you can see a summary of our sustainability scorecard. And we are, as one of the few poultry producers, transparent on multiple parameters. So Q3 shows a mixed result with several areas showing improvement. The slightly higher CO2 emissions was impacted by the use of supplementary energy sources at some of our production sites, repairs of our most efficient equipment, as well as the ramp up of activity in some of our newer sites. And for LTI, this is an area with continued high focus. Next slide, please. Now we move into ready to cook. And we see a strong demand and improved profitability, 5% increase in net sales. And we see strong demand across geographies and channels.

7:21 We have 3% increase in chicken produced, what we call the grill weight. 7% increased in EBIT. That gives us an EBIT of 170 million SEK compared to 159 last year. And an EBIT margin of 5.6 compared to 5.5 last year. And we're also well prepared to tackle the increased feed prices. So organization is on high alert. Regular price adjustment with retailers to adjust for changes in input cost is now something that we have good processes for. And we're also hedging our input costs in our internal feed production. So next slide, please. and this shows the development in feed. So we have been seeing a rising feed prices for some quarters. We're also seeing increased prices of feed raw material, which will gradually lead to further increased feed prices to our farmers.

8:22 The expected volatility is driven by the Ukraine war. That's also uncertainty about fertilizer from components from the Middle East and also supply and the ongoing effects of the El Nino. But our organization is well prepared to tackle this for price increases to our customers. And we also, as always, want to highlight that feed cost is one third of our cost base and also that the short production cycle compared to other proteins enabled us to be more agile in our supply chain. And also important thing to remind you of is that poultry is the most efficient protein. You need one and a half kilo feed to one kilo chicken compared to pork that needs three and a half and beef that needs seven to one kilo.

9:13 So next slide, please. And when we move over to export, we see strong performance in our export markets. We see fairly stable price achievement during 2026, despite this reduced chicken commodity prices. And they are reduced due to increased supply of poultry, especially in Poland, and that's putting the spot prices down. We also see on the other hand possible mitigation through the current EU import restrictions on Brazilian chicken. So the import is closed at the moment and let's see when it will be open again. But we also have an internal and this is our aim to further decommoditize our export sales.

10:03 So that is having the long term partnership with customers. And it's about optimized SNOP sales operational planning, and also the acquisitions and the growth that we have in ready to eat that will integrate and make benefit of our raw material in ready to cook into our ready to eat plant. Next slide, please. And on this slide, you can see the shallow development in more detail. And through this detail, you can notice the increase in both retail and food service in the quarter. So in general, we are seeing a strong demand in most of our markets in the quarter. Next slide, please. This slide is to remind you on the strong market position in all our five home markets and the countries are highly consolidated.

10:55 These markets have large hurdles for new entrants. They can individually be regarded as semi-closed market due to the strong consumer preference for domestic produce. Due to our strong market position, our own supply decision have a meaningful impact on the market balance, which has proven to be a strong instrument in periods with volatile markets. So note that each market, however, also includes consumer segments less sensitive to provenance. So next slide, please. And on this slide, you can see our ready to cook plants. We want to set out the note that 11 million chickens in Lithuania is just one shift. If the market has a positive momentum, we have the possibility to scale up with another shift and double the production.

11:45 Next slide please. So now we move over to ready to eat and we see further improvement and positive seasonal impact. We have 25% growth in net sales driven by demand in both food service and retail. We have an EBIT margin of 6.2 compared to 2.4 last year, and that is due to successful price increases, new product launches with accretive margins, and improved capacity planning that drives higher margin volumes. But it also has a seasonal impact. We have summer commercial initiatives that exceeded our expectations in food service. And now with acquisition of Glenhaven, we have a program to take advantage of the strong skill sets from Glenhaven into our total business.

12:39 And we also have a cost efficient startup of Factory C in the Netherlands during Q4. I will get back to that later. So next slide, please. And here you can see it in figures. It's of course very encouraging to see the strong growth in food service after a period of weak demand in ready-to-eat in the previous years and the growth in the retail channel continue also to be very strong. So ready-to-eat will be an important long-term tool on developing EBIT per kilo, more specifically to increase the value of our protein. So next slide please. And this slide is a reminder of the strong historical organic growth in ready-to-eat business the last 10 years. And I'm confident that it will continue the trend.

13:30 And there are two main types of businesses. Three-thirds is a breaded product, European market. And one-third is an integrated local business in Sweden, Norway, and Finland. And it gives us a high return on capital employed. And throughout the latest years, an average EBIT margin is about 6%. And now in the quarter, we have 6.2. And that shows the potential of actually getting the margins back and increase them from that. It has a low capital employed compared to ready to cook. And also important to note, as you all remember, we lost some continental contract in 2023. But as you can see in this graph, we are now above the historical peak of 2022 on a rolling 12 month basis.

14:20 So next slide, please. And we are expecting a healthy market growth in Europe over the coming years. And there are market players divided into tiers. We have the European players, the regional players, and the local players. And Scandi Standard has been a large regional player with 36,000 ton product weight in 2024, about 5% European market share. But the production platform has not been competitive to the top tier. and we saw some stagnant market after COVID-19 and the inflation and we also saw some European overcapacity but we see now close to 100 tons market growth that is expected to 2030.

15:08 Next slide please. And that's also the reason why we could get the possibility to buy the Osterwalder plant that was acquired in Q1 2025 in idle state. There were fire in factory B under previous ownership, but we started the production in factory A in Q3 2025 after refurbishment. and that increased our capacity for our kebab products that has a really good growth and where we have outgrown our previous capacity. And now Factory C, the big factory, are being prepared for Q4 2026 trial runs. And actually, to be pretty clear, we are doing our first commercial production this week on the first big line.

16:01 It's small amount of volumes to get all the certificates, but we are going commercial now in Factory C. And Factory C, they have two of Euro's largest and most efficient breaded product lines with a capacity of 50,000 annual tons. And it is one of the few with advanced form product capability. And this factory is tailored to meet the criteria of the largest clients. So together, with a filled up Farre and now with production capacity in Östervolde and Glenhaven Foods with room for increased capacity, that represents a significant growth platform for Scandi Standard for the future. So next slide, please.

16:47 And this slide shows our processing plants. And as you can see, they are divided into two different sections. We have the plants that are focused on European frozen breaded market, the big plants. And then we have the plants that are focused on convenient products for our whole markets, Norway, Sweden, and Finland. So next slide, please. And I will hand over to the CFO, Fredrik Sulvahn.

17:16 Thank you, Jonas. And good morning, everyone. Q3 was another strong quarter with continued growth in both sales and profitability. Q3 was actually our strongest quarter ever. Net sales increased by 8% just north of 4 billion SEK, supported by continued growth demand, as well as price and mix improvements. Adjusted EBIT increased by 18% to SEK 220 million, lifting the adjusted EBIT margin up 40 basis points to 5.4%. The improvement reflects operational efficiency and better capacity utilization, as well as clearer impact from customer price adjustments, especially in ready-to-eat. Non-comparable items amounted to 15 million SEK and relate to transaction costs for the Glenhaven Foods acquisition.

18:08 So reported EBIT is therefore 205 million. Finance net was broadly stable at 38 million. Higher interest expense on increased debt was offset by FX. The effective tax rate increased to approximately 22% mainly because deferred tax assets on tax losses were not recognized and due to the country mix. Income for the period increased to 131 million SEK and adjusted earnings per share rose by 20% to 219. Fee deficiency remained stable at a strong 1.48. And the LTI rate was 24.6, so up 0.2 versus last year.

18:56 And LTI remains an important focus area, particularly in RTI. Next slide, please. Our balance sheet was somewhat distorted at the end of the third quarter as we had received the settlement on our 400 million SEK capital increase but we had not yet settled the upfront payment for the acquisition of Glenhaven which was two thirds of the transaction value which took place on October 9th. Average capital employed increased to almost 5.6 billion SEK from 4.7 billion reflecting acquisitions and continued investments in capacity and efficiency. Even with this increase, adjusted return on capital employed improved by 130 basis points to 13.1.

19:44 Average equity increased just north of 3 billion SEK from 2.6. The rights issue added almost 400 million SEK to equity of the transaction costs and supports the financing of Glenhaven Foods while preserving financial flexibility. Return on equity improved by 270 basis points to 14.7, supported by stronger earnings generation. The equity ratio strengthened to 37.3% from just shy of 34, mainly driven by the rights issue, partly offset by the second installment of the dividend distribution. Overall, the figures demonstrate the continued balance between growth investment, improved returns and capital discipline.

20:31 Next slide, please. We have strong cash generation in the quarter. Net interest bearing debt was down almost 460 million SEK. Operating cash flow amounted to almost 220 million SEK, so up from 189 last year, supported by 66 million SEK working capital inflow. Net CAPEX at 170 million SEK focused on capacity and efficiency. Main drivers were linked to the hatchery in Lithuania, acquired earlier this year, and final investments in Factory C before startup. The right issue was successful and strengthened our financial flexibility with almost 400 million SEK, as said earlier.

21:17 Leverage was reduced to 1.7, which is well below the 2.5 target. And dividend of 330 SEK per share is now fully paid. Next slide, please. The higher working capital versus end Q3 last year was primarily driven by our strong organic growth and acquisitions of farms. Inventory is up 20% versus year end and 35% year on year, driven by seasonality, increased activity and acquisitions. Receivables are up 5% year on year, which is below the sales growth of 8%, indicating continued discipline collections.

22:03 Payables are up 8% year on year, providing a partial offset to higher inventory and receivables. The decrease in other comes mainly from VAT and other accrued expenses. Adjusted working capital landed at 5.4% of rolling 12-month sales, which is below the 6% target. As always, we have continued focus on inventory optimization and cash conversion. Next slide, please.

22:36 We expect Capex of about 680 million SEK during 2026. Year-to-date Capex spend is almost 550 million including the purchase of the former leased processing plant Balla in Sweden during the second quarter leaving approximately 130 million SEK for the fourth quarter. The main remaining investment priorities are increased farming capacity in Lithuania, the bottlenecking and capability improvements, and completion of Factory C in the Netherlands. We expect working capital to increase during the fourth quarter, including the addition of Glenhaven Foods into the Group's capital base following consolidation from October 9. as well as the ramp up of Factory C. This will be partly offset by the release of seasonal inventory.

23:33 Total financing cost to report in Net Depth is expected to be around 7%. But please note that the financing costs include leasing, factoring and vendor financing elements that are not recorded in Net Depth. Following our refinancing earlier this year, we have an attractive interest rate on bank debt of approximately 4%, including the effect of our interest rate swaps. The blended effective tax rate is expected to be approximately 20%. Next slide, please. And during the quarter, we finalized the five-year sustainability linked financing package with our four existing relationship banks. The total committed facilities increased from approximately 290 million SEK to 450 million euros.

24:24 The agreement also includes an option to increase the facilities up to another 150 million euros, providing additional flexibility for organic and strategic growth. Commercial terms improved, while the covenant structure remains prudent. leveraged below 4 and ICR above 3.5. And the leverage covenant includes flexibility for a temporary increase in connection with acquisition and steps down to 3.0 from the fourth anniversary. The refinancing extends our immaturity profile, strengthens liquidity and retains our ambitious sustainability linked framework. So overall, the new financing together with the rights issue gives us a stronger and more flexible platform to integrate Glenhaven Foods, continue investing in the business and pursue future growth opportunities.

25:17 Next slide, please. And back to you, Jonas.

25:22 Thank you Fredrik. Next I would like to talk about our cornerstones and our license to operate. And you have seen this before. It is these four pillars about increasing the value of our protein. And with that, we mean that we want to take out the most value of the fantastic protein that we have. And we call it climbing the poultry ladder. And it is about having the right yield, the right customers, and the right products on the market to actually validate as much value as possible. Then we have ramp up the efficiency that is important for us to actually have efficiency throughout the whole value chain. And that actually starts with the parent stock, the feed, the birds, the farmers, and also how we are able to process it as efficient as possible.

26:17 and if we combine those two and doing good work there we will climb the value ladder and be able to improve the results. It can sound very simple but for us these four cornerstones are super important in our daily work. then of course we want an integrated sustainability sustainability in everything we do because we know that great sustainability and great efficiency are tightly linked together and we do this best as one team better together let's move next slide and then we can take the next slide again And in this slide, I want to remind you of our 2027 targets.

27:09 It's getting closer. And here on the right-hand side, you can see the targets. We are expecting strong growth over the coming years, and we have set the target to 5% to 7% of net sales growth, an EBIT margin of 6%, and a return on capital applied of 50%. We want to reduce our CO2 emissions of 42% and have an antibiotic use below 1%. And then our last time injuries below 15 and an employer satisfaction above 75. And these targets is something that we have focused on the whole strategy period and we feel comfortable that we are moving and setting these targets in 2027. So next slide, please.

28:00 And as a reminder, on this slide, you can see that our structured effort is resulting in recognition in form of improving ESG ratings. So we have an A in the CDP rated for climate. And there's only a few companies that has achieved an A minus rating and even smaller group that has an I rating. So these high scores reflects our standards and the sustainable nature of our business. So next slide, please. And on this slide, we once again want to show our EBIT per kilo. And EBIT per kilo is a good measurement of the value creation in our business. And there is a clear roadmap to reaching our 2027 goal of three SEC per kilo.

28:48 and that is by climbing the value ladder that I talked about in our four pillars. It is about balanced supply, it is about increased consumer convenience, it is about utilizing our branding opportunity and it is about utilizing further potential in our ingredients business. And this together with another other pillar, we increase the efficiency in our value chain, and that is optimized sustainability metrics, organizational performance, production standardization, automation and supply chain standardization and increased collaboration in the value chain because it is a value chain that is linked together.

29:33 So if we move into next slide. and sum this up. So we can say a strong growth and margin improvement. We have a strength and demand trend. Ready to cook is climbing the valley ladder, ready to eat. We have set the margin recovery. We are prepared to tackle volatility and input costs. We are focused on developing our European RT platform and we have the main building blocks in place and the capacity to actually double our throughput. So we are well positioned to reach our EBIT per kilo target of three SEC in 2027. So with that, I hand over to Q&A.

30:21 Thank you very much. Thank you. We'll now start today's Q&A session. If you would like to ask a question, please press star followed by one on your telephone keypad. And to withdraw your question, it's star followed by two. Our first question today comes from Daniel Smith from Danks Bank. Your line's now open. Please go ahead.

30:45 Yes, good morning, Jonas and Fredrik. Hope you can hear me.

30:49 Good morning.

30:50 A couple of questions from me. Given the volatility that we've seen in soft commodities and you mentioned it yourself of course when it comes to feed prices and the importance of that but it also sounds like you're much much more prepared for sort of adjusting prices related to feed Could you give any example, and that's much more part of your daily discussions with customers, it sounds like. Could you give any examples what you've really sort of changed to get to that position compared to when you came into the company, Jonas?

31:34 There are different ways of working in different countries but if we take where we have our own feed mill it is about hedging the raw material into our feed plants so we actually have the length of the hedge at the same length at the time to actually change the prices into retailers. So we will never speculate and have short hedging. So we never hedge shorter than we know that we can put the price forward. That is one important thing. Well, we do not have any our own feed production. It's more about linking and have this discussion with the retailers and the farmers.

32:19 So we link that discussion together So we, for example, we can look at the feed prices in September for the coming quarter, and then the farmer can decide if he wants to hedge or if he wants to go on spot. and it's his ups and downs or she's her but but we we say the prices in September then we agree that with the customer and put those prices in so we neutralize the the feed prices up and downs that is example of how we work because we are really on top of this to actually put it through because it's something that it's it's hard to predict And it's hard to do anything about in terms of efficiency.

33:06 That's why we want to have this as transparent as possible and don't speculate.

33:15 And it's harder to get to that position in ready to eat, given that you've been in a situation where you've been wanting to raise prices, but it's been a lead time until those have been realized. Is that a different environment?

33:34 Yeah, it is quicker. It's more transparent and easy to change. But it's more transparent to the feed prices and ready to cook than it is and ready to eat. And it comes with a delay. But we have this continuous focus. And that's one of the reasons why you see the margin recovery and ready to eat this quarter.

34:03 And what do you expect going forward? Will there be further needs to lift prices in Verity, given what you're seeing right now?

34:12 It is, as I say, the 10,000 kronors question. It's hard to know where the feed prices go. But if you ask me to guess, we see so much uncertainty. So in the short term, we see that there will be feed price increases for the coming quarter and forward. But on the other hand, That is due to the Ukraine war. There is not that much grain that comes out of Russia and Ukraine. On the other hand, there is a lot of cheap grain laying in Ukraine and Russia. If the war continues or not, no one knows. So that will have a huge impact on where the feed prices will go.

35:01 Another thing is about what will the effects be of the upcoming effects of the El Niño. We don't see that much yet. On the other hand is the discussion about the fertilizer price that has increased. Will the farmer use less fertilizer that will have an effect of that the grains will yield less? or will they change type of production from wheat to soy because you need less fertilizer on soy than you need on wheat. So then maybe soy price will go down and wheat will go up. But everyone is speculating. No one knows. Our most important focus is that when we see the price changes, we are really ahead of them so we actually can put those prices forward. Because at the end of the day, We know that the poultry protein is the most efficient protein with the best conversion rate of feed.

35:57 So for us, it's about not getting squeezed. High feed prices actually gives us more and more competitive advantage compared to other proteins. But the risk is always that they can be squeezed in the middle time. And that is our focus to not be squeezed, not being squeezed.

36:15 Yeah. And talking about affordability, you have updated us continuously and it's of course a well-known fact that chicken is well-suited when it comes to affordability and you have this slide in your pack, but it's not updated since Q2 2025, if I read the slide correctly. Could you shed some light on what you think about affordability in 26 versus other proteins? has the gap even sort of widened further or what's happened?

36:51 Yes since that update I would say that it has widened further when it comes to beef prices we have seen beef prices gone through the roof we've also seen high pork prices lately though we have seen pork prices decreased a lot but we see continuous high beef prices maybe a slightly decrease but continuous high so we will update this one in the beginning of next year to have a better updated picture but since then it has increased a lot and then decreased a little bit lately that's how it is

37:34 All right, just maybe your last question and I think you got the question earlier today in media regarding fish farmers now using poultry to feed their salmon in Norway. It's my understanding you're part of the supply base. Has that been something that you've been surprised about or has this been existing for a while or what's the development there? Is this really a new sort of customer group for you or is this something that you had for some time?

38:10 Yeah, it is. In terms of the Norwegian salmon industry, that's a new customer for us. We have been selling to other fish industries due to different regulations. But this is a new customer for us. And it's a good customer for us because our rendering plant is in northern Jutland in Denmark. So I think it's placed in the right place. right the geography and we have this rendering plant as a joint venture with with with the Bay SJ and and and our competitor in Denmark and and there we are sourcing from from our Swedish plant and our Danish plant and and this is a new customer group and that is positive a good customer group and a new welcome customer for for farm food and and that will we will benefit from that okay thank you I'll We'll leave the floor open for other questions.

39:08 Thank you, Daniel. Thank you. As a reminder, if you would like to ask a question, please press star followed by one on your telephone keypad now. And to withdraw your question, it's star followed by two. We'll pause for just a moment to allow any further questions to come in. We have a follow-up from Daniel Smith. Your line's now open. Please proceed with your question.

39:38 I might as well continue, given there's no others asking questions. But how big of an opportunity is this, Jonas, you think, when it comes to the Norwegian salmon industry?

39:59 It's... It's material for farm food but it's not material for Scandi Standard as such. Then it's a little bit about how long will it be and that is of course also linked to what the feed prices will be and the availability for the Norwegian salmon industry. I look at it upon that it's a new customer group for farm food and that is good for us and we want to develop that business further and then I think it will hopefully be a long-term client for us that can be a part of the sales in farm food but let's see where it will end but I think it's a new customer and that is long-term good for farm food and good for the portals that we send out of Kronfogel and Ås in Denmark.

41:05 You also mentioned the import restrictions on Brazilian chicken being a possible mitigation when it comes to the export market I assume. What are you seeing there lately and Is there any sort of reason to believe that that current restriction is going to be lifted anytime soon?

41:34 What has happened is that the difference, they were closed down last year as well, but that was with no pre-warning. Now this time they said that they have not fulfilled the things that the EU demands, so they will close them down, and they told the market that in May, I think, May, April, May, So all the importers imported a lot of volume from Brazil to fill up the stocks. And then they closed down. So now there are stocks that actually will reach as I'm... I think that it will reach to year end.

42:21 So if it is reopened before year end, the market impact will be fairly low, I think. There is a new meeting in EU in November. whether we'll bring this question up. There's a possibility that it gets reopened in November. But if it doesn't get reopened then, then it will be another meeting, I think, after New Year and so on. So there have come some positive signals that they may reopen it, but we are not sure if that's from lobbyists or if that is something to actually... take into account. So the short answer will be that there has been no effects now because they're built up stock. If it continues to be closed off the new year, I think we will see some effects during the spring.

43:17 Okay, thank you. That's all for me. Thank you. Thank you. As a final reminder, if you would like to ask a question on today's call, please press start followed by one on your telephone keypad now. It seems like we have no further questions in the queue at this time, so I'll hand back over to Jonas for closing comments.

43:49 Yes, then I just want to say thank you very much for listening in. And with that said, we close down this session. Thank you very much. Thank you very much.