Ladies and gentlemen, welcome to the Matas Q3 Conference Call. For the first part of this call, all participants will be in listen mode only, and afterwards there'll be a question and answer session. Today, I'm pleased to present Gregers Wedell, CEO. Please begin the meeting.
Thank you, operator. Welcome everyone to the call covering our Q3 2020/2021 announcement. With me on the call, Anders Skole-Sørensen, our CFO, and Henrik Lund, our Head of HR. Operator, please turn to slide number three. Today we will cover just the status on the business first, and then we will switch over to Anders, who will go through the financial results, and I will conclude by sharing my remarks on the guidance for the full year. Please turn to slide number four. The Q3 of 2021 was obviously a very peculiar and very shifty quarter. We saw exceptionally strong results, and today we're announcing a guidance upgrade. The results for the sales were up, as you know, from the trading update, 12%, and underlying growth was at 13%.
Our EBITDA grew by 11%. That is driven by a leap in online profitability. I will return to that point. We also generated cash of DKK 550 million, supported to a large extent by our work on inventory management. I think the key takeaway from this quarter, once again, actually, is that our business model in Matas continues to be very resilient, very flexible, and able to adapt with very short notice. I think this year has been a proof point for the omnichannel business model. Our store sales declined 0.4% over the quarter. This was actually composed of an increase in the beginning of the quarter, followed by the stimulus of a holiday stimulus package, and as the quarter went on, tighter and tighter restrictions. Online sales, once again, really boomed at 78%, led by matas.dk growing at 91%.
This was obviously also a quarter with impact from consumer needs for health and wellbeing products. That category increased most by 23%. It was not only a quarter of operating and trying to get through the pandemic, it was also a quarter where we made significant progress on some of our strategic priorities. We trialed a new Club Matas Plus concept that I will return to, which we have soft launched in Q4. We also saw in this quarter, to the highest extent we've ever seen, the channels melting together, using our many beauty advisors, health advisors in the stores doing online video consultations with customers. We have seen our operations, in particular in our hjemmeleveret webshop, has been optimized in the quarter.
As I mentioned, a new guidance for the full financial year where we raised both the growth and the EBITDA margin expectations. Please turn to the next slide. Starting with the stores. We are in a situation where all the stores remain profitable. We still have 263 stores that we own and operate. As I mentioned, we saw an increase in the like-for-like for the physical stores at the beginning of the quarter. We've been able to keep all stores open throughout the entire quarter. Matas is exempted from shutting down from lockdown, given to the essential nature of our business. What we've seen is a quite market shift in what stores perform and which don't. Obviously, shopping centers, and even city locations are negatively impacted by lockdown.
Whereas local stores and stores that are in areas where people might have secondary homes, they actually perform really well. For connected stores, the priority for this period of time has really been to make a leap forward in connecting our stores and everything to do with digital in the stores. I think that's part of the reason why we're able to compensate for a decline in customer traffic by increasing basket size in the store. That's also something we see across retail, obviously, that people, they go to the stores less frequently, but when they go, they buy big baskets. We also really saw payback on a longstanding initiative that we've had to put the stores on Facebook and other social media.
Stores are able to deliver consultations and live events to local communities and to individual customers when there are lockdown periods and some customers might be afraid to go to the store. I think one of the things that this quarter showed us that we didn't see to the same extent in the spring lockdown era was that the omnichannel synergies that obviously is a great focus area for us, they are intact. We're still in a situation where more than half of, or around half of the customer shopping on matas.dk, they choose to pick up their purchases at a Matas store. Please turn to the next slide. This again has been an online quarter and an online breakthrough quarter.
As you can tell, looking at the last 12 months, we're now approaching DKK 1 billion in online revenues, and the quarter marked the highest share of turnover for online that we've seen so far, approaching 26%. A very, very rapid increase from when we launched the strategy more than three years ago, that now 26% of our business is composed by online. Again, this quarter cemented our market leadership position and, again, cemented our position that customers do have preference for Matas in the Danish market. Obviously, one of the big discussions has been around profitability. If you would please turn to slide number seven. The quarter overall saw a stable EBITDA margin and an increase in absolute earnings. This was driven in large part by a leap in online profitability. We saw, as I mentioned, an accelerated growth rate.
We acquired 84,000 new customers just as matas.dk. We saw an increase in the number of Club Matas members making a purchase online. I think the very significant takeaway from this quarter, once again, is a continuation of what we talked about before, that as the online business grows, we do see profitability scaling due to economies of scale. We've actually seen a gross margin improvement due to more full price sales at matas.dk, and when people use matas.dk as their store, their ordinary store, they also buy more products at full price. We also, once again, saw increased efficiency at our web shop in Holme-Olstrup, despite quite strict COVID-19 measures imposed on the operations of the Holme-Olstrup facility. We're seeing increased leverage on the fixed cost base of our online business.
We've also seen in the quarter that our competitive edge and some of the things that will help us next year have been sharpened. We have more than 800,000 downloads of the app, and one of the introductions that we made with the new app is that it's much easier to shop using our Club Matas app, and it is now a quite significant, very significant actually, sales channel. That's very good thing because obviously when people shop at an app, they're not as prone to do price comparisons or shop around as they are when they shop online. That's a very important channel and a very important milestone for us. We also saw a breakthrough in more dialogue-based sales online. It's not just self-service and going to the product catalog and buying. It's also a lot of advice given to customers that are shopping online.
I think that's the real long-term differentiation for us, that the position that we have offline as a trusted advisor, that we're able to replicate that online as well. Interestingly, we've been able to set up a system where we can use idle time, slack capacity in store when we have these great channel shifts, then we can use our colleagues in the stores to provide online customer service and online dialogue. I think also one thing is that people shop online out of necessity, but I think one of the most satisfying results is really that we have seen very good fulfillment grades, and we have seen all-time high customer satisfaction for our online shop. I think that will help us going forward as well. Please turn to slide number eight. In the quarter, we trialed Club Matas Plus, which is a subscription service.
We soft launched it this quarter, Q4. The idea of Club Matas Plus is to make a very, very simple subscription model that provides our most valuable and most loyal members with some advantages. For DKK 29 per month, you can triple the points you earn as a Club Matas member. You can get free delivery online, and every month we have sort of a calendar of events and gifts and offers that you can only get as a Club Matas Plus member. This is something that we will be reporting on going forward. The purpose of this particular initiative is to drive, share wallet, and drive loyalty. We're seeing that from the early trials, that we're seeing both a very good traction on sort of the early customer adoption of this and of the customer behavior that follows from being a Club Matas Plus member.
With that, I would like to hand over to Anders to go through our financials for the quarter. Please turn to slide number nine.
Thank you, Gregers, and good morning. The advantage of having good numbers, you can keep it short because this is good numbers, so I'll try to keep it short. Gregers has already talked about revenues. I'm not going to mention that anymore, and it's very strong numbers, obviously. I have the benefit, maybe benefit of having been here a long time, and frankly, I've never seen numbers like this, so it's quite impressive. As Gregers also mentioned, we were actually able to have this growth in which, of course, as already mentioned, was primarily a growth in the online business without sacrificing our gross margin. As you can see, the gross margin was roughly unchanged compared to last year.
The development that we've seen over a number of quarters where the online business is getting closer in profitability to the physical stores is something that we see continuing in this quarter as well. To the cost base, roughly developed in line with the turnover, and I will come back to that a little later. A consequence, as Gregers mentioned, we have an EBITDA which has grown by almost DKK 30 million and an EBITDA margin, which is roughly unchanged compared to last year. It is obviously, I can do the numbers as well, marginally lower, but very much so, very marginally low. On the other hand, adjusted net profit has gone up significantly following the trend in the turnover.
Free cash flow is one of the very positive stories, with a jump in the free cash flow from last year to this year, obviously based on a combination of better underlying profitability. That is more money coming in, and of course, a positive development in working capital, which I will also revert to. We've seen the same development as we have seen over a number of years when it comes to the transaction and basket size. Obviously, I think we've talked about this before, as more and more of the turnover is online rather than offline, basket sizes are naturally bigger in the online business. People tend to gather their purchases a little more. Plus, of course, there are also some push upwards in basket size due to the limits on free shipping.
In the third quarter, we should also notice that during the COVID pandemic, there's also generally a tendency among our consumers not to trade quite as often as they have done historically, but to trade in larger amounts once they do so. That is basically the development we've been seeing. With that, please turn to slide number 10. On this slide, we are looking at the more long-term trends, and obviously the picture we are seeing here is one of a very strong growth, also both on the quarter to quarter basis, but also historically as we look at the last 12 months growth, this has really taken off during this extraordinary year.
At the same time, we're also looking into, on the gross margin side, what we believe is a fairly stable development after having a number of years where this was being under some pressure. We are seeing that pressure being alleviated somewhat. EBITDA margin, as I just mentioned, we are also seeing that stabilizing. Pretty much all around a positive picture, both with regards to the profitability and obviously with regards to the revenue. With that, please turn to slide number 11. As promised, in slide 11, we are looking a little more at the cost in some detail. Overall, the conclusion is quite clear. Cost ratio is basically unchanged.
If we look a little deeper into the cost drivers, obviously the very strong growth that we've had in our online business, both in Matas and in Firtal, has added cost because as you know, one of the big differences between the online business and the physical store business is that in the online business, a bigger part of the cost base is variable. It goes up when turnover goes up, but it also drops down when turnover drops down. That's actually not altogether a bad thing. We've still had some costs, around DKK 7 million costs, which are particularly added costs in relation to the COVID-19 pandemic. I think Gregers briefly mentioned that in our hjemmeleveret facility, our webshop facility, for instance, we've had some extra costs. There's also been some extra costs in the store level concerning COVID-19 precautions.
If you look at the underlying cost base, there's actually still a drop in the underlying cost base of around DKK 12 million compared to the same quarter last year. That definitely comes from continued working with the efficiency within the stores and also within the headquarters. If you look at development costs, there is a rise there as you can see it, and that is explained wholly by a fairly strong activity increase in online, as we talked about, and then some costs which are specifically related to the COVID-19 pandemic, where we've set aside some costs on the wage side for that. With that, please turn to slide number 12. On this slide, we're just looking very briefly at the cash flow, working capital, and trade payables.
As you can see, compared to the same quarter of last year, there's a very positive development in working capital. If you look at working capital compared to last quarter, you can see that there was a marked drop in inventories, which I'll come back to. At the same time, we were also actually able to increase our trade payables by a little. Obviously compared to last year, there's also a slightly positive impact from We haven't been taking advantage of health packages, as you well know, but there are some payments of taxes which have been postponed by the government as a part of the overall measures on COVID-19.
Obviously, those postponement of payments have also benefited Matas, and they amount to a slight part or a smaller part of the positive change to working capital. As to CapEx, you can see compared to the same quarter of last year, there was a drop in CapEx. That is, of course, because we have not generally been spending as much money on investment in the physical retail network during this whole special situation that we've been in. Otherwise, not much to say. A very, very positive development in the free cash flow, as you can see. With that, if you could turn to the next slide.
On the next slide, we'll just focus a bit in on what has historically been somewhat, I wouldn't say it's been a pain point, but at least it's been something we needed to talk about, which was the development in our inventories. There I'm very pleased to say that we've had a very positive, continuous, positive development in the inventories. I'd like to just focus you on two things. First of all, the total drop of the DKK 82 million that I mentioned, which actually consists of a positive, well, an increase, not a positive, an increase in inventories. Based on the fact that we now have a lot of these COVID-19 related products in stock, and we have to have more than we had, obviously, before COVID-19. Of course, there are some growth areas that is also tying up more stock.
The rest of the business, we've actually been able to reduce stocks quite significantly by more than DKK 130 million. That's why we end up with a negative net of DKK 82 million. What is even more important is that if you look at these numbers and also take into account the fact that the business has been growing quite rapidly over the last year, then if you look at the number that's been put in a small red circle, you can see that relative to revenue, there's actually a very marked improvement between what we see at the end of the third quarter of this year compared to, for instance, what we saw last year or the year before that.
We are really pleased to see the development in our inventories, and we really think we are on the right track with regards to managing our inventory levels. This is, I think, a significant development that we're pleased to see. With that short suite, I will turn you back to Gregers.
Thank you, Anders. Please turn to slide number 14. I think obviously the question for the results of this year will be how much of it is just tailwind from COVID and how much of what we have seen this year will carry into the coming years. While we can't give you a number to that, we can certainly say that COVID for sure has accelerated the transformation journey that Matas was already on. It has not only accelerated, for example, our online sales, but it has also accelerated the journey towards profitability online. This year will mark a very clear strategic progress for the company. We've seen a very marked increase in Matas' overall brand strength and liking and respect from, and relevance from consumers. As I mentioned, we have been able to develop concepts as we have gone along with Matas Plus concept.
We're also working on and have launched different kinds of subscriptions concepts this year. For online, obviously this has been a major leap, both in the share of revenue, but also in our online profitability. As for the stores, I think actually COVID in many ways has also been a vote of confidence in stores and the role that stores play in the future. We have seen consumers be much more aware of the value of having local stores, supporting local stores, being able to solicit advice from our advisors in the stores. We have been able to keep all the stores profitable throughout this, and as I mentioned, increase sort of the melting pot effect of having store staff and online work together in so many ways. A couple of years back, we launched an initiative to drive what we call green growth.
That is growth in sustainable products areas and also the health category of our business. It turned out to be very timely. It was also always growing fast, even before COVID. Obviously, both in Matas and with the Firtal Group, which is specialized in health, this has been a year where they really saw payback on that strategic bet. Finally, we are in a process every year of changing the business and how the business operates, and we're pleased to see that we can keep the cost ratios in check despite the channel shift. I will also highlight that if you look closely at our accounts, you can see that the work we're doing in the stores and in what I call the legacy part of the business of bringing down cost to be able to finance all these wonderful new initiatives.
We are actually been able to keep up that work and drive down underlying cost base related to the stores and reallocate that to online. For sure, this has been a year of tailwind, but it has also been a year that has accelerated our strategic progress. Obviously we're in a position now where the numbers that we are expecting for this year will be above the level of what we had been expecting for 2022, 2023. We have set in motion a strategy update process, to look at what is the future for Matas going to be. Because obviously a lot of things are going to return to the way they were. We also believe that there will be lasting changes in consumer behavior. Right now, that is all about what kind of crystal ball you're looking into.
We are now starting to look at the long term again. Please turn to slide number 15 for a comment on the guidance upgrade. For the guidance, excuse me. We raised the guidance. We now expect a total revenue growth of above 12% up from above 10%, an underlying revenue growth above 12% up from above 10%, and an EBITDA margin before special items, above 18.5% up from above 18%. The CapEx level is left unchanged. As for our financial ambitions for the long term, as I mentioned, they are at this point, we have achieved them and therefore we'll be initiating a strategy review. With that, I would like to close our comments and, operator, we are now ready to take questions.
Thank you. Our first question comes from Claus Almer from Nordea. Please go ahead.
Thank you. Yeah, first of all, congratulations with another very strong quarter. The first question goes to the networking capital and the cash flow. Anders, I'm not 100% sure I understood, definitely did understand your comments, but what should we think going forward? Is this the new level for your inventories or will it bounce back a bit? That would be the first question.
Sorry. Let me just comment on that by saying that we are obviously working very hard to continue to optimize on the level of inventories seen in relation to the underlying business. I'm not going to make any sort of predictions or promises as to exactly how that's going to develop. As you well know, there are things that can surprise one way or the other. I think it's fair to say that we've broken the trend. We did that a while ago, and now we are seeing a more positive trend, i.e., not tying up as much capital and inventories relative to sales as we have been doing for a number of years. That is definitely a work that continues.
We don't look at it this way as if, oh, now we've done something, now we can sort of lean back in our chairs then let the development resume. We will be very vigilant about the development in inventories and inventories relative to sales going forward.
We have seen in the past at year-end that there can be some very strange or maybe not strange, but there can be a lot of movements due to various reasons. We just want to be sure that when we're looking at your full year numbers, that the level will not be totally different from what we saw in end of the calendar year.
Of course, given that this is the future we're talking about, I'm not making any sort of fair predictions. I'm just sort of revert to what I said before, that we will continue to work with the inventory levels and we won't take our foot off the brake, so to speak.
Okay. Just to be 100% sure, there's been no really unusual items excluding the payment delay by the government?
No, that's true. That's very fair. Except for those, particularly, I think it's payroll taxes at this point, still being, we have a bit of a delay on. There's nothing else in the numbers that is unusual. Correct.
All right. The second question goes to this commentary about the profitability within the online channel. If I'm trying to calculate the underlying profitability both Q- over-Q and year-over-year, I struggle to see that online should really have moved in the same level as the physical store network.
Is that correct? What am I missing when I'm trying to calculate the underlying trend?
Well, we report on the profitability and break that down once a year with the full financial year results, and then we remark every quarter whether it's going in the right direction. Obviously, with a high share of revenue coming from online for this quarter and our ability to almost maintain the margin, you can imply that we have seen that leap in online profitability. That is.
As a margin?
On the margin level, yes. It's approaching the level of the stores. Not quite there, but it's rapidly approaching the level of the stores.
Okay. Just the final question is about the transactions and basket size. It seems like you have changed the historical numbers. Why is that?
Have we changed the historical numbers?
Yeah.
I think we did that last quarter because we had included in the historical numbers, have included Firtal. Let's just revert on that. I think that's the case, to be honest.
Okay, thank you.
It's been in there long enough. Let's just come back on that. Can you make a note of that, and we'll come back on that.
That's all for me.
Thank you. Our next question comes from Magnus Jensen from SEB. Please go ahead.
Thank you, guys, for taking my question. Magnus here. I actually just have two questions. The first one goes to staff cost, where you, Anders, said that it was a natural development that staff cost would increase when online goes up, and also due to COVID. Looking at the other quarters throughout the year, we've actually seen, for Q1 it was the same level, but for Q2, we actually saw a reduction in staff cost. I'm quite surprised to see such an increase, given what you've seen for the first half of your financial year. Maybe a couple of comments for that, if you could. The second question goes to, you say that online margin is approaching the physical stores margin on an EBITDA level, I guess, because that's what you mainly comment on. Would the same be valid for your EBIT margin?
What the real question is D&A, depreciation and amortization, at the same level for the two platforms, so to speak? That is my two questions.
Okay. I'll remark on the first question, and I'll leave Anders to remark on the second one. Staff cost for the quarters was on a trend level higher than the other quarters, and some of that should definitely be considered of a sort of one-office nature. We haven't reported it as exceptionals because this is an exceptional year with so many moving parts. We did, just to give you one example, in Black Week, there was a lot of attention on whether stores were able to comply with regulations, and we saw very intense diligence on behalf of the authorities as to whether we could keep up the distancing measures and the sanitary measures. We actually decided to put guards and hire guards to stand outside of our stores to make sure that we kept the number of people allowed to be in the store.
Just to give you one example. We have also, as Anders mentioned, in the quarter, given that it is the Christmas quarter, and there was very low visibility and very short notice between restrictions being announced and being imposed. Our store staff planning and store costs was not quite as efficient as it usually is. There is some one-off nature in that as well. I think the key point is you should not use this as an indication of the level going forward.
Thank you.
Yeah. I totally agree with Magnus there. It's important not just to take that number and say that's then the one we should use. As to the depreciations and amortization, well, yeah, there will be variations. I'm not going to, at this point, be nailed to the wall on whether or not I don't think it's fair to say that there's a fundamental shift here to talk about, but there can be shifts, and obviously, it depends a little on how the investments are done. Perhaps some of the investments we do online, particularly the software-related investments, probably have a slightly more aggressive depreciation schedule than things that are done to a physical store. At this point in time, I don't think this is something that It will not represent a major shift in the numbers right now.
Okay. Thank you very much.
Thank you very much. Our next question comes from Poul Ernst Jensen from Danske Bank. Please go ahead.
Yes. Thank you. I have two questions. One, overall, when you take the product segments or categories you have, you have a high growth in high-end and wellbeing. Is it fair to assume that on the high-end it's because the people travel less? The lower growth in mass is because the supermarkets take a fair share of the movements in the market there. In the wellbeing, how much of that is Corona related, the +23%?
Let me comment. Yeah. Do you want to put the other question, Poul, or should I give you?
No, that's fine.
Yes. Okay. Let's do that. Let me comment on the categories. High end was clearly stimulated by two things. It was stimulated by the holiday stimulus package. As we've seen throughout the year, given that people don't travel and don't shop at travel retail, we have seen some windfall from that. However, the travel retail purchases are very much impulse purchases or gifts you're buying if you want to travel outside the country. It's not really just a question of moving travel retail sales into domestic sales. Obviously there is some kind of tailwind from that. As for health and wellbeing, we have seen just an underlying increase in that area over the last few years, and that has continued as we have extended ranges, taken more care to market that particular, upskilled our people to serve on the health.
That is actually an underlying long-term trend. Then in a crisis, people are just more aware of eating vitamins and supplements and so on and so forth. There's probably a hike from that. As for COVID-related, we've seen a normalization, if you will. We saw in Q2, as you remember, we saw a bump in the sale of face masks, for example, and now face masks are everywhere and prices have gone down. It's much less significant than it was in previous quarters. Also, I should remark that all those kinds of goods are sold at a very low margin, so you should keep that into consideration as well. As for the mass beauty, supermarkets have obviously had a very good time. There's also another explanation. I don't think we've lost out to supermarkets in any way.
However, in the mass beauty, there's a proportion of that that is makeup. Makeup, as you can imagine, lipstick is not really in favor in an era where everybody wears a face mask. Makeup and lipstick and those kinds of color cosmetics, which actually takes up a big part of the mass beauty, has been negatively impacted, especially in periods with lockdowns.
Okay. On the online as well, you mentioned that the cost for the online fulfillment is up DKK 23 million year-over-year. I assume that's not including the personnel related to the fulfillment. That's correct, isn't it? Including the personnel, that's it.
Are you talking about what's in the accounts for that particular number? I just want to make sure what we're talking about.
Yeah. I'm trying to figure out, you have an increase in online revenue of DKK 149 million year-over-year. You increased the OpEx for fulfillment and logistics by DKK 23 million. I'm just trying to figure out how much is then the personal cost related to online or to see what is the contribution margin of the online business.
Yeah. I can understand you doing that. I just want to make sure that I agree with the number you've given me. Right now, the DKK 23 million is not a number that sort of springs to mind, so I have to check that. Are you looking at overall other external costs or are you looking at a specific number? We usually don't give that number. Yeah, freight and logistics costs were up for 23%. That's correct. Those are, of course, they do not include the staff cost, obviously.
Wow.
Staff cost for picking in the logistics center are in that one. Yeah.
They are included on that one?
Correct.
Because if you then assume a normal gross margin of 44% and then you, on the increased revenue and you have 18% of that being cost, and then you should have a contribution margin well above 20%.
You're making a number of assumptions.
Yeah, you have a number of assumptions about that's not going to hold up. That is absolutely not the way it works when you full cost it.
Okay.
The final question is on the Club Matas Plus. You said you had a soft launch. Have you any indications on the willingness to pay the DKK 29 by now?
I think we've seen an encouraging response to the concept. It soft launched a few weeks ago, so it would be, I think, misleading to give you any kind of indication on that other than that it's been an encouraging response.
Okay. Thank you.
Thank you. Just as a quick reminder, if you wish to ask an audio question, please press zero one on your telephone keypad. Once again, please press zero one on your telephone keypad if you wish to ask an audio question. Our next question comes from Mads Quistgaard from Carnegie. Please go ahead.
Yes, good morning. My first question is on the online business as well. Can you sort of decompose the online growth a bit? How much of the online growth is, for example, driven by an increase in the basket size, and how much is driven by an improvement in the efficiency at hjemmeleveret ? That is my first question.
We don't comment specifically on the basket size for online. As for the profitability, it is a combination of a gross margin improvement due to higher normal sales, and the efficiency at the hjemmeleveret . We're just getting better and better at operating hjemmeleveret and laying out the routes. There are also some economies to scale just from the sheer volume going through that facility. That's as far as I can go for now. I know that this is a central point, and as I mentioned, we report on online profitability, and give you a better view of that particular part of the business with the full financial year.
Okay. Can you maybe provide some more details on the LOG23 project and what you're going to do in the facility?
What we're looking at, and what Mads is referring to, is that we have flagged that we are looking at a logistics review and looking at the future logistics setup for Matas, including the case for automating a bigger part of our central warehousing and the case for supplying both stores and online from the same facility. That's been an ongoing analysis. What I will say about that is that COVID and the performance that we've had this year has actually made the case even stronger, because obviously, we have more certainty about how our online business performs as it grows. Obviously the bigger the scale on the online, the more attractive that kind of automation investment will be.
We are not at a point where we are ready to share either the solutions that we will pursue or give you an indication of what it costs except for what we have been in the reports. It's a significant number if you want to do automation.
Okay. My last question. The NIBD/EBITDA ratio is down to 2.2 x now, which is below your target ratio. Can you just provide some comments here? What are you planning to do?
I'll leave that to Anders.
Yeah. That would be, I shouldn't say the positive news, but obviously there is no change to the capital allocation and what else you can do with cash is obviously something that will be left to the board to look at in connection with the full year results.
Perfect. Thank you.
Thank you. There appears to be no further audio questions, so I'll hand back to the speakers for any other questions they may have.
Thank you very much for joining our call. Thank you, operator, for running the show. With this, we will conclude today's conference call. As always, we will be happy to take questions one-to-one, so please get in touch with Henrik if you need anything.
Thank you so much. Bye-bye.
Thank you. Bye-bye.
This now concludes our conference call. Thank you all for attending. You may now disconnect your lines.