Good morning, everyone, both in the room and online, and thank you very much for joining us this morning in connection with the release and presentation of Mowi's first results of 2025. My name is Ivan Vindheim. I'm the CEO of Mowi, and together with our CFO, Kristian Ellingsen, I will take you through the numbers and fundamentals this morning and to the best of my and our ability, add a few appropriate comments or two then. After presentation, our IO, Kim Galtung Døsvig, will routinely host our Q&A session with also you who are following the presentation online can submit your questions or comments in advance or as we go along by email. Please refer to our website at mowi.com for necessary details.
Disclaimer, I think we leave for self-study. With the present practicalities and the disclaimer out of the way, I think we're ready for the highlights of the Q quarter. To begin with, on a general note, I think it's fair to say that the first quarter was another strong quarter for Mowi, both operationally and biologically. We see some record high growth in the sea and improved biological metrics across the board to mention a few. Once again, a big thank you to all of my colleagues who have made that happen. It's of course, much, much appreciated. This translated into, as the second bullet point there reads, an operational profit of EUR 240 million in the quarter, an operational revenue of EUR 1.36 billion.
108,000 tons harvest volumes, which is up by as much as 12% year-over-year, partly with the help of good environmental conditions, both in the northern and southern hemisphere. Seems to have been mirrored across the industry this time around, as industry supply growth was up by a hefty 13% year-over-year in the quarter in Europe and 8% globally. If you rewind the time, our numbers you haven't seen since the first quarter of 2021. We stand in stark contrast to the first quarter last year, where industry supply was down by 4% year-over-year, following biological issues in Norway, in large part due to a winter sore vaccine that have lost efficacy, which seems now to have been resolved.
This, of course, impacted prices in the quarter, which I think is fair to say, were lower than our expectations. On a positive note, however, our price realization is stable year-over-year, indicating a good underlying demand for our products. Our realized landed farming costs, i.e., weighted production costs for seven production countries, was EUR 5.89 per kilo in the first quarter and was somewhat down compared with the first quarter last year, following a positive cost trend we have seen over the past few quarters and underpinning our expectation of a further decrease in the coming months on economies of scale. We have more harvest, more volumes, and enhance more dilution of fixed cost. Carrying on are two of the divisions, Consumer Products and Feed. They both delivered another good quarter, I would say.
In terms of our strategic review of the feed division, it's well underway. Finally, as the last bullet point reads, our board of directors has decided to distribute a quarterly dividend of NOK 1.70 per share after the first Q quarter. I think that does it for the highlights of the quarter. Let me move on to our farming volume guidance. As you can see from this chart, we maintain our farming volume guidance for this year of 530,000 tons, supported by a strong biology so far this year and seasonally record high standing biomass in sea. If anything, there is upside risk to this guidance. Furthermore, next year, we expect to harvest 600,000 tons with Nova Sea on board.
Finally, we reiterate our farming volume targets of at least 650,000 tons in 2029. This we will achieve through increased smolt stocking and by means of a post-smolt. We have still an utilized license capacity in Mowi and several other countries where we operate, and the post-smolt, we can increase the productivity on licenses already in operation, which are to be set into operation. Mowi's idiosyncratic growth continues unabated after the rather quiet 2010s and is now surpassing that of the wider industry and our listed peers by a large margin, cementing our number one position in Atlantic Salmon. From the grander scheme of things, to more specifically about the first quarter and first key financial figures. Kristian will go in-depth on all these numbers later this morning, so as not to be too repetitive.
We'll just touch briefly upon the most important ones now. On our profit, I think we skip as we have just been through them. Let's start with cash. Net interest-bearing debt stood at EUR 1.88 billion at the end of the quarter. The Nova Sea on board, it would have been EUR 2.46 billion and corresponding equity ratio of 46%, indicating a sustainable pro forma debt level. Having said that, and as we have said previously, we will revert to a new long-term debt target for Mowi post-closing of Nova Sea. Furthermore, earnings per share was EUR 29 in the quarter, whilst the annualized Return on capital employed was 16%.
In terms of regional margins for the value chain, if we get back to all these numbers later this morning, then we'll delve into the different business entities. First, the elephant in the room, prices. As already said, prices in the quarter were lower than our expectations due to seasonally record high industry supply, following very favorable environmental conditions both in the northern and southern hemisphere. Further on that note, tariff turmoil in our largest single market, the U.S., has not helped the situation either. As for the latter, now the big question is how this will develop going forward. No one knows the answer to that question, of course.
If I may venture to make an attempt, the direct effects, we believe that they are rather limited, as we are after all talking about only a 9% weighted tariff on 20% of our market, which all has been equal and is equivalent to a demand hit of 2% if we assume a price elasticity of one. In isolation, that should be manageable. We have been through far worse before. In the pandemic, we lost half of our market overnight, for example, and in 2014, large parts of the industry had lost access to then the very important Russian market in the aftermath of the invasion of Crimea. That market is, for all practical purposes, a goner today.
We believe there is more reason to be concerned about the potentially indirect effect of this if the world economy slows down or takes a major blow. Personally, I'm not too worried as the salmon normally fares well in challenging times. People need food also in rainy days, and it's particularly in situations like this, Mowi's integrated and diversified global value chain comes into its own as it enable us to tailor our trade more effectively than most of our peers. Finally, it doesn't hurt being cost competitive either, which Kristian will talk more about later this morning. Above the reference price, which is the standard we like to hold ourselves in, to internally and measure ourselves against.
Positively impacted by a contract share of 28% in the Q quarter and contract prices slightly above the prevailing spot price, in addition to good harvest rates and a high quality of our fish. It's time to drill down into our different business entities, and we start, as usual, with Mowi Norway, the locomotive of our business model. If you take the numbers first, operating profit was EUR 155 million for Mowi Norway in the Q quarter, whilst the margin was EUR 2.51 per kilo and harvest volume 62,000 tons, all of which are a result of improvements on all fronts in the quarter, as you can see from the chart there, apart from our price achievement, which is down year-over-year. We have the second bar here on the chart.
On strong operation performance, I would say, partly with the help of favorable environmental conditions along the Norwegian coastline. This applies to all regions in the quarter in Mowi Norway, which may come across as a bit counter-intuitive, as Region Mid is well behind the others on this margin chart. The explanation is that Region Mid harvests very low volumes in the quarter and hence had very low dilution of fixed costs in addition to harvesting out high cost sites following issues with string jellyfish and gills last autumn. If you go behind the numbers, Region Mid was actually our best performing region in the first quarter, both in terms of cost to stock and in terms of growth in the sea. Consequently, we expect a lower realized production cost for Region Mid in the second Q quarter.
Our farming volume guidance for Mowi Norway. As you can see from this chart, we maintain our guidance for this year of 315,000 tons. With Nova Sea on board, we are on course for 400,000 tons in Norway. The last slide on Mowi Norway, our sales contract portfolio. Contract share was 25% for Mowi Norway in the first quarter, and also that's spot on our guidance, and these contracts were neutral to our earnings. The second quarter, we expect our contract share to be stable with relatively stable contract prices. It's time to drill down into our 6 other farming countries, and we start with Mowi Scotland.
Like Mowi Norway, Mowi Scotland leaves behind another strong quarter, I would say, with good biological results. This manifested itself in an operational profit of EUR 32 million for Scottish operation in the first Q quarter, and a margin of EUR 1.78 per kilo on 18,000 tons harvest volumes. Like Mowi Norway, Mowi Scotland can point to improvements on all fronts in the quarter, apart from price achievement, which is down year-over-year. We cease to Chile. Mowi Chile posts an operational profit of EUR 12 million in the second quarter, which is stable with the I said second quarter, I meant first quarter, which is stable with the first quarter last year on a slightly lower margin of EUR 0.88 per kilo and 14,000 tons harvest volumes, which is somewhat up compared with the first quarter last year.
In a quarter, where better prices were offset by higher costs due to that we harvested out some high cost sites in Chile in the quarter. Consequently, we expect realized production costs for Mowi Chile to come down in the coming Q quarters. Farming off to Canada. Mowi Canada went from losing EUR 2 million in the first quarter last year to make a profit of EUR 4 million in this quarter, thanks to fatter prices because harvest volumes are down year-over-year and cost is up. Otherwise, it's worth noting that Canada has come out as the winner so far in the tariff turmoil, with no tariffs on Canadian salmon into the U.S. versus 10% tariff on salmon of all other regions. Every cloud has a silver lining, they say. It's still early days. Let's see if it stays like this.
Which brings us to two smallest farming entities, Mowi Ireland and Mowi Faroes. If you take Mowi Ireland first, our Irish operation posted a modest operational profit of EUR 2 million in the first quarter by means of a margin of EUR 0.95 per kilo on 2,500 tons harvest volumes. Whilst Mowi Faroes impressed with a margin of EUR 2.75 per kilo and an operational profit of EUR 12 million on 4,000 tons. Finally, biological metrics are once again stellar in the Faroes in the quarter, whilst they were more a mixed bag in Ireland. Our last farming entity this morning, Arctic Fish, our Atlantic operation.
Arctic Fish broke even in the first quarter, which contrasts sharply with the first quarter last year when we made EUR 10 million in operational profit in Iceland due to both lower prices and higher costs because harvest volumes are relatively stable year-over-year. Consequently, our work to reduce costs to our sustainable level in Iceland continues unabated because neither we nor the industry are there today. With that, I think we can conclude Mowi Farming and move on to Consumer Products, our downstream business.
Consumer Products posted an operating profit of EUR 33 million in the quarter, which is up from EUR 24 million in the corresponding quarter last year, which I would say is a strong achievement as we had no help from upgrading this year compared to last year. On the other hand, lower spot prices were a helping hand for this part of the value chain. In many ways you can say this is some sort of a hedge for us. In terms of the market, we still see good demand for our products underpinned by stable prices year-over-year, notwithstanding a hefty supply growth of 13% year-over-year in the quarter in Europe and 8% globally. Last one out this morning, Mowi Feed. The first quarter is low season for our feed operation with all that entails.
Adjusted for that, I would say the first quarter was another strong quarter for Mowi Feed with seasonally record high volumes and a pace out of the starting blocks indicating new volume and earning records this year. If you take the numbers, sold volumes were 112,000 tons in the quarter, which is up by impressive 14,000 tons year-over-year or 14%, whilst operational EBIT was EUR 7 million in the quarter versus EUR 6 million in the comparable quarter last year. Finally, feed performance was evidently strong. As we said earlier this morning, our strategic review of this division is well underway and we will revert with more information in due course, but not today. It's too early in the process. With that, Kristian, the floor is all yours. You can take us through the financial figures and fundamentals.
Thank you so far.
Thank you very much, Ivan. Good morning, everyone. Hope you're all doing well. As usual, we start with the overview of profit and loss. This shows a top line of EUR 1.36 billion, which is a record high level for a Q1 and an increase from last year on strong volumes. Operational EBIT increased by approximately EUR 14 million from last year following lower costs and higher volumes. Achieved global prices were relatively stable. Earnings translated into an underlying earnings per share of EUR 0.29. Return on capital employed was 16.3%, and Return on equity was 18.1%. The difference between the operational EBIT and financial EBIT was explained by the net fair value adjustment of biomass, which was negative this time around related to the price development.
With regards to associated companies, this was mainly related to Nova Sea. The operational result for Nova Sea was EUR 1.85 per kilo in Q1 on somewhat lower prices. We still expect competition clearance sometime in the second half, and from that point, Nova Sea will be consolidated into the group figures. We move on to the balance sheet. Mowi's financial position is strong with a covenant equity ratio of 51%. Pro forma covenant equity ratio, including the effects of the Nova Sea acquisition, would have been 49%. The ordinary equity ratio is listed here also on performer basis, which would then be 46%. Total assets increased somewhat since Q1 2024, driven by fixed assets in addition to prepayments of tax.
With regards to the cash flow, NIBD was slightly up during the quarter, as we see here. The cash contribution from EBITDA was partly offset by working capital tie-up, mainly related to feed inventory. Cash outflows related to CapEx, tax and financial items were reduced versus Q1 2024. Net cash flow per share improved to EUR 0.14 from EUR 0.09 in Q1 2024. With regards to NIBD, we will revert to an updated long-term NIBD target following closing of the Nova Sea transaction. We maintain the guidance on the cash flow items listed here for the full year of 2025, so we leave the details here for self-study. The same goes for the overview of our financing, which is unchanged from the Q4 presentation.
Before we leave the financial section, we want to reiterate our commitment to cost focus and cost leadership. As shown in the graph above here, blended farming costs across our different farming regions has increased in recent years, driven by feed prices. On a positive note, feed prices decreased by approximately 8% during 2024, and we have expectations of continued decline. This will contribute to a reduction as we see it in the full cost for 2025 versus 2024. Cost is expected to be reduced in Q2, including also in our most important region, Norway. We expect cost to be further decreased in the second half of 2025. In addition to the feed price effects, we are expecting positive effects of our various cost measures.
This includes operational improvements such as post-smolt, Mowi 4.0, yield, automation. We have a good starting point from our position as the number one or number two performer in the various regions. We see that also from the graph below here. On a positive note, we see now that also that the three-year average shows that we are now number one also in Norway. At the end of the day, it's all about earnings and how much you earn on the licenses you have. We find this slide here very interesting. Essentially, this slide encompasses both production efficiency, i.e., how much you get out of your licenses, and cost performance. The cost over time, salmon farmers achieve more or less the salmon price.
We are therefore very pleased to see that farming Norway, our largest and most important farming country, there Mowi recorded the highest EBIT per standard license of NOK 31.2 million in 2024, ahead of all listed competitors. Even if you adjust for FX, Mowi Norway is still number one. This is a strong slide. When it comes to cost, feed cost is the number one cost item. Raw material market prices have improved for most input factors, including marine ingredients. The two most recent anchovy wild catch seasons in Peru in 2024 were strong with regards to volumes and yield, and this has contributed to a favorable raw material price development. The first anchovy wild catch season this year started in April.
This is now ongoing then and with a quota of 3 million tons. This is the second highest quota during the last decade. A positive outlook here. Much for financials, including cost. We move on to market fundamentals in the quarter. In Q1, there was a solid supply growth from the salmon-producing regions of 8%. This was above the guidance as the biological improvements were even better than we assumed. In Norway, the volume growth was 13%, driven by an improved winter sore vaccine and higher temperatures. This has led to lower mortality, more individuals available for harvesting in the first quarter. Harvest growth in Norway is expected to be more moderate in the coming months. Also in the other regions, biological conditions and growth have improved.
In Chile, harvest volumes increased by 4%, while biomass at the end of the quarter was up 14%. In Canada, volumes declined due to Canada West. Consumption was approximately 7,000 tons higher than supply, meaning that there was some inventory release in the quarter. Consumption growth was 5%. Including inventory movements. With the relatively stable global prices, this means that there was a good demand increase in the quarter, estimated to around 6%. With regards to the various regions, we see that in E.U. plus U.K., i.e. in Europe, consumption increased by 6%. Retail developments were good, particularly in the natural fresh category. We saw good developments in France, Germany, U.K., Southern Europe. Food service was relatively stable. In the U.S., consumption increased by 6%.
The fresh pre-packed category continued to drive growth. On the raw numbers, this category increased by as much as 24%. Food service was relatively stable. Asia, very positive in the quarter, as we see here with the 13% supply and consumption growth, particularly good in China with the 28% increase. An improved availability of large salmon has been positive. The spot prices have been reduced, particularly in Europe, where the Superior reference price was somewhat inflated in Q1 2024 due to the challenging winter and low availability of superior salmon back then. Looking at the chief prices, these were relatively stable on a global basis. The higher-than-expected harvest volumes so far this year should be seen in context of catching-up effect.
We have seen challenging biology in recent years, no growth the last years since 2021. 2025 is expected to be a recovery year with approximately 6% estimated supply growth. We expect supply to return to trend growth of around 2%-3% in the coming years because of regulation constraints. With regards to our own volumes, we maintain our volume guidance of 530,000 tons, but we are even more confident that we will reach these volumes. It's time for Ivan and some comments on the outlook. Thank you.
Thank you, Kristian. Much appreciated. It's time to conclude with some closing remarks before we wrap it all up with our Q&A session hosted by our IR, Kim Galtung Døsvig. I said earlier this morning, the first quarter was another strong quarter for Mowi, both operationally and biologically, with seasonally record high growth in the sea and improved biological metrics across the board. This has continued in the second quarter, which seems to have been mirrored across the industry this time around, leading to record high industry supply growth and hence pressure on the prices. Having said that, there is nothing in the number of individuals in the sea or regulation that has changed our view on limited supply growth in the coming years. In our view, this is purely a catch-up effect of the three previous years of challenging biology.
Whilst we're on the subject biology, we have maintained our own farming volume guidance of 530,000 tons this year. If anything, there is upside risk to this guidance. Next year, we expect to have 600,000 tons with Nova Sea on board. In Norway, we're on course for 400,000 tons. Furthermore, as Kristian just showed us here, we expect our realized production costs to come further down in the coming quarters. In terms of the market, we still see good demand for our products, although this tariff situation we have ongoing is not good for anyone, neither for the importer nor the addressee.
Having said that, everything that has taken place so far, I would say, is well within manageable, in particular with our integrated and diversified global value chain, which enable us to tailor our trade more effectively than most of our peers. For everyone's sake, let's hope this tariff situation does not escalate. Otherwise, as you may have noticed, the Norwegian government's long-announced white paper on agriculture came just before Easter after what I think is fair to say have been many postponements. Good things come to those who wait, they say, but in this case, I'm not sure, because this was discouraging reading, I have to say, both the way they portray us and the solutions they prescribe. These are in characteristic Labour Party style, more taxes and fees. If anyone is wondering, lice are the root of all evil, and lice quotas are the only salvation.
Just for the sake of argument, lice are mentioned 443 x in this white paper, 97-page white paper, and that's almost 5 x per page. While jobs on the other hand, brace yourself, are only mentioned 3 x. 3 x. Think of that from the Labour Party. I think you can safely say that this white paper is biased, so we have a job to do, so we do not end up throwing the baby out with the bath water in our eagerness to transform this industry. Don't forget that we have a lot of promising things going on, such as postsmolt, precision farming, and lice lasers, to mention some. Let's let things work instead of upending everything in the midst of the transformation process. That's our humble advice in this.
With that, Kristian and Kim, I think we are ready for the Q&A session. If you, Kristian, can please join me on the stage, and you, Kim, can administer the mic from the audience.
Very good. This time around, we'll start with a question from the web. It's from Alexander Sloane in Barclays. He has got a question about supply growth. You had guided 2%-3% industry supply growth in February, but now you expect 6%. What has changed? Is there a chance that 2026 supply growth, which you still expect to be around 2%-3% could also be revised up?
As I commented during the presentation, we have seen that biological performance and the recovery in Norway has been even better than we thought back in February. That being said, we have seen that the industry has operated at a high-capacity utilization level with reference to the Maximum Allowed Biomass. We think that there is in that case, limited growth potential versus that high-capacity level given the regulations we have. I think 2025 will be a year where we are seeing a recovery from several years now with very modest numbers, in practice, no growth. Yeah, that also limits the potential going forward as we as we see it.
Maybe I can add a comment to this. It has gone fantastically well in the sea so far this year. In my almost 20 years in this, I can't remember we have seen this before. In the end of the day, this is also in the hands of Mother Nature, and she is normally not that nice two years in a row. Just to support Kristian's comments here.
Christian Nordby, Arctic Securities. When we look at fish meal and fish oil prices, they've come down a lot over the last 12 months. Your revenue kilo in the feed segment has been quite flat since Q2. What's the reason why that's not dropping with the raw materials?
We have seen that there has been a positive development during 2024. I think the numbers you have seen this quarter has been relatively stable then. With the good fundamentals with regards to the fishery season in Peru, we expect continued positive effects there going forward. I think it's fair to say that it was sort of a little pause in the momentum now in the first quarter.
It's also about the feed formula, and the cost of the energy you put into the feeds. You cannot think of this on a purely linear basis. You will also play around with the ingredients you have.
In terms of the very strong biology we've seen now in the first half of 2025 compared to particularly first half of 2024, how significant is that for cost going into the sort of the second half of 2025 for Norway?
No, the cost for Norway is dropping. It's the entity that shows the most positive cost development. On a personal note, that's also our biggest or largest lag. If this continues, I think you will be happy in the end, Kristian.
Okay.
It's also about, biology. Let's see how long this lasts. Again, what we have seen so far is, amazing, and that doesn't happen often.
Okay. Any more questions? Yeah.
Hi, Alexander Aukner from DNB Markets. Just on the year-on-year growth, it's obviously been very high during Q1 and seems to be that in Q2. When do you expect the Q-on-Q growth to ease off? Second question on the retail prices, have they started to come down, or are they still at an elevated level?
Yeah. To start with the last question, I remember the best. Retail prices, we haven't seen any major downwards development yet. Usually, we see that effect over time with lower prices, so that's something we expect. Then, regards to the volume development, the supply outlook, we believe that you will see some more moderate growth figures in the quarters to come. There's still, of course, a high biomass situation, and this will continue to impact the 2025 as a whole.
To be even more specific, you asked about the quarter-over-quarter effect there. I think if you see a growth quarter- over- quarter until we are approaching year-end. Sometime in the fourth quarter. If you then take into account the number of individuals and normalize biology, because at least that would be doing our internal forecast. Most likely next year will look very different, because you don't have the support from the numbers in this year, which you referred to during the presentation. You've been through this before, ladies and gentlemen. I, at least where I come from, is that we will see a repetition. It's just a matter of events. That's our internal forecast.
We are much more optimistic about next year when it comes to prices than this year. This year, there is simply too much fish in the market. Taking all, for instance, April and May so far is up by more than 30% from Norway export volumes. That's crazy. To be a little bit pokier, then you kill the price, and that's what we have done, the industry. After rain, you will have sun, also this time around. Hold out.
Perhaps I can just also add another brief comment on the, on the retail price question. You can also just refer to the fact that, you know, if you look to the U.S. market, which has gotten a lot of attention, we see stable high retail prices. Even though we have seen some lower actual prices, at least from Norway, more stable prices from Chile. Nevertheless, it shows that demand is good as we see it. That's something we can take with us. Again, we expect also then some of this to be shifted out in the value chain, and that also will then lead to some lower retail prices, which can then boost demand further.
You comment that global supply growth is estimated up by 8%, but that consumption is up by 5%. That could suggest that there's some accumulation along the value chain of volumes. Do you expect that to impact price dynamics going forward? Or would you say that it's largely as normal and will be cleared out during the second quarter as normal?
We believe this is normal. No particular facts here to mention. You see that the consumption was somewhat higher than the supply, around 7,000 tons higher. it's actually some more consumed than was sent out from the regions. Again, back to demand. It has been swallowed by the market. Yeah, but nothing particular, I would say, with regards to the inventory build-up, et cetera.
Yeah. In other words, cleared out in the first half of this year.
Yeah.
Behind us.
Yeah.
Yeah. In terms of retail activity, promotions, campaigns, have you planned any more now than last year going into the second half?
Absolutely, we have. The preparation are ongoing. We have been through this before, so we know what to do.
The average price to end consumers could actually come down already in the second half, despite that the general, let's say, shelf price will be more gradual, decline, but there could be, yeah, lower prices.
Yeah. You know, the shelf price will go down eventually, but you normally have a lag there. You will get tailwind from lower shelf price plus promotions. Normally what we see is after very high growth, if you look at history, typically have built demand and then supply go down and prices go up. Let's see if we see that again. It's always exciting in this industry. We strongly believe in this and act accordingly.
Knut Ivar Bakken from DNB. Could you comment a little bit more on the very good performance in Norway in the quarter, both for yourselves and the rest of the industry? Is it a function primarily of the better winter sore vaccine and better sea temperatures, or do we also see some effects of changes to technology, farming practices, regulatory approach, or any other factors?
Yeah. The last part of your question, that takes place more gradually. If you look to Norway, we have been through a fantastic journey here, so which is not finished, which we will see our further development in. What stands out this year is last year was very bad. It was a tough year before that and the year before that again. I would say the what we call the environmental conditions, they have been much better in Norway along the entire coastline this year, in addition to the new winter sore vaccine, which obviously works, that we see.
Although you cannot say scientifically for an economist like you and myself, there is more than evidence to just to say that we have something that works now. Tailwinds from every which way, that doesn't happen often, though, but that's what we have seen so far. Unfortunately, there is a flip side here, and that's prices.
Hi. William Rø from Danske Bank. Just a quick follow-up on U.S. demand. Of course, you mentioned positive developments in retail and potential for limited tariff impacts. Could you just share a little bit of just how customers react in sort of total demand impact short-term in light of just implementing tariffs there?
Far, we haven't seen that effect yet because the shelf prices haven't changed, right? Then, then you will see the consumer reaction, or the economy is poorer. But you haven't seen that either. It's yet to come. It's hard to. It's just speculation, really. It's what we said very honestly during the presentation, we don't know, and I guess no one knows. It's, it depends on how this develops going forward. I've said before that if this is a 10% tariff flat, that's something we can easily live with and work ourselves through. That will not be painful. If you get more than that, then I'm afraid that this pain will be more than just a few months.
I don't have a better answer to your very good question than this. I know exactly as much or perhaps as little as you do.
Thank you.
Yeah.
Okay, that concludes the Q&A.
Right. It only remains for me to thank everyone for the attention. We hope to see you back already in August at our second quarter release, if not before. In the meantime, take care and have a great day ahead. Thank you.