Thank you very much and good day, everyone. Welcome to this call. Together with me today is, as usual, our CFO, Fredrik Nilsson. The agenda you'll find on page two. We will cover a short update from myself, business area updates as well, and then a bit more details on our financials from Fredrik, and then some concluding remarks. As always, we are happy to take questions at the end of this call. With that, turning ourselves into page three. Few comment highlights to the quarter. As you have seen, a weak start to the quarter with April really being, and beginning of May, the low point, the low mark in the quarter. After that, we have seen clear improvements, so May being better than April and June being better than May. An improvement in sales or volumes as well as earnings towards the end of the quarter.
Within the business, the most significant impact with regards to volume reductions has been within Food Service, where the sales is going directly to, or the consumption is directly in restaurants, fast food chains, hotels, airline catering. That has been the area with the most significant volume drop. Within Chocolate and Confectionery Fats, there has been across the globe, reduced demand over a low Easter sales or really bad Easter sales, limited airport sales, et cetera, being lower with regards to our customer sales. With that, we do see that our demand towards our customers has really been impacted by that lower consumption. Also on top of that, a de-stocking effect where our customer had to reduce their stocks. Again, in the quarter, gradually improving volumes also for Chocolate and Confectionery Fats.
On the positive side, we do see our plant-based food solutions growing again, doubling the business year-over-year. Very nice to see. We also have a good continued trend for our Special Nutrition business. With regards to our margins, EBIT per kilo has been relatively strong if you compare to volume, only down year-over-year 5%. This is despite volume reduction of 50%. We have had a strong focus on our value-added products also through this period. We have taken measures to adopt our cost levels. Also very strong execution by our organization with regards to staying safe, acting safe, and with that, securing business continuity. We have been able to operate through the COVID-19 situation with a very few exceptions. Really for us, being a critical part of the food supply chain, there's been a volume reduction basically everywhere.
We have not seen a need to close plants or so, but really a slightly or 50% lower volume in general for the business. With that, fairly good margins still. Page four. Lockdowns and restrictions. We all know that by now. In most countries where we operate, most countries where we sell, there has been versions of lockdowns and restrictions in the world. This has impacted, of course, demand, and with that, also the earnings that we have in the industries that we serve, with a few exceptions. In response, we have also optimized our cost base to secure short-term as well as mid-term profitability. This, and this is important, this is without jeopardizing our long-term strategic focus. We have no reason today to adjust our strategic direction that we launched last year. The underlying trends are there.
Health and safety for our employees in our network, at work, at home, has been in focus. I mentioned before a strong focus within the organization, execution on our contingency plans has really secured that we have been able to operate and supply ingredients to the very important food supply chain. This is very much thanks to our global team's passion, drive, and attention to safe procedures. I'd like to take this opportunity to thank the whole organization of AAK for achieving that. As communicated earlier in the quarter, in the end of June, we have also initiated measure to optimize our structure on the more mid to long-term horizon. With this, we plan at achieving SEK 150 million in savings and expected to have full run rate by the second half of 2021. This is also fully in line with our strategic direction.
We aim to optimize our bakery, dairy, and food service businesses, as well as continue to make strategic investments in chocolate and confectionery fats, health and nutrition, as well as plant-based food, where we see strong growth trends going forward. Also glad to see that we have closed the acquisition of NPO Margaron LLC in Russia. This is a milestone for AAK. This is a strategic important acquisition, giving us opportunity to grow in a very important market in Russia. All in all, AAK is well positioned to take advantage of a market rebound as soon as lockdowns restrictions are lifted. With that, turning into page five. Plant-based food continued to grow, and also very importantly, we see a more and more global market penetration. With great interest from the get-go, I would say, in Europe, North America, but we also see now Latin America coming strong, and also in Asia.
An example here given in India, where we are entering into a cooperation, a partnership with The Good Food Institute India in order to accelerate research and development, as well as promotion of plant-based food solutions. I'm also glad that we have a new colleague in the leadership team of AAK. Sten Estrup has joined us, a very experienced director. He's the President of Asia for AAK, and he has joined us already and is already up and running with a strong base out of the Singapore office of AAK, and we are longing for restrictions and lockdowns to be lifted so that we can also travel more, but really happy to have Sten in our team. With that, into page six.
In unprecedented times like this one, the one we are in at the moment with a pandemic ongoing, it is so important to be pragmatic and creative and to really stay connected while we still have to have physical distancing, really. In our organization, we have seen very good creativity in order to secure connectivity with customers, suppliers, and also internally. One of those examples is an initiative started in our North Latin America organization called Apart Together, where we get movies sent from the different parts of the AAK organization in an attempt to really feel that we are together, although physically apart. Just highlighting one example of the good spirit within AAK. On page seven, a few words on sustainability and sourcing of raw materials. At AAK, sustainability is really close to our hearts.
It's a central part of our strategy and a top priority, and we believe in partnerships and strong engagement to drive change. For a long time, we have worked systematically to achieve improvements. To just exemplify a few things, within West Africa, we source shea kernels, and we have a program that we call Kolo Nafaso. We have now reached over 300,000 members, women, in our women's program, Kolo Nafaso. That is over 30% increase compared to last year's and show our dedication. This has also been achieved in spite of challenges to operate and communicate given the current situation. This is all due to a very passionate and dedicated organization that we have in West Africa. Palm and palm oil. We have had in the quarter, there has been some media coverage with regards to AAK and our sourcing of palm oil in Indonesia.
The picture painted and how we work do not correctly describe the AAK as we know it, and they do not describe the engagement in sustainable sourcing of palm oil that we do apply. Let me assure you that within AAK, we have the ambition to ensure a palm supply chain free from deforestation. We know that there is so much more to do, and we believe that this extremely important transformation can only be achieved in close collaboration with governments, industry bodies, suppliers, customers, and NGOs. We are a founding member of RSPO, and we have been engaged in improving the palm oil supply chain for a long time, and we are fully committed to do our part also going forward. Finally, on coconut. We are, as you know, a multi-oil, a multi-raw material using company.
Within coconut oil, we have also secured a better supply chain through active on-the-ground supplier development, and that includes also smallholder programs to develop a coconut oil supply chain that is better than the one we have had. As a multi-oil company sourcing several raw materials, we are focusing on improving the supply chain in all aspects, including sustainability, which is a top priority, again, in our strategy going forward. With that, moving into more details on the different business areas of AAK. Starting with Food Ingredients on page eight. Volume was down significantly in the quarter if you compare year to year. Again, the low mark really in April, and with lower margin, more or less across the board, it meant lower utilization of our plants.
This is not due to that we had to close, but this is more due to the general lower demand, and with that, a reduction by plants. That led to a hit on earnings, but again, EBIT per kilo, our margin, was held up in spite of lower margins, really with regards to the measures also taken. The main driver of volume reduction within Food Ingredients was Food Service. I mentioned that before. The volumes were down 50% linked to the sales to restaurants, airline catering, hotels, and so forth. Again, for Food Service, very dramatic drop in the beginning of the quarter, but a gradual improvement towards the end. Plant-based food doubled, and Special Nutrition performed well, really with infant nutrition having a strong performance and predominantly with good sales in China and with new local Chinese customers helping that development.
On page nine, a few words on our Chocolate & Confectionery Fats business. Impacted very much by a weak Easter with regards to sales to consumers. With that, our customer had weak sales and a follow-on, a ripple effect of that is our demand was down. On top of that, we have seen clear de-stocking with our customers or from our customers. That's impacted our demand. Volumes did start to gradually pick up towards the end of the quarter within Chocolate & Confectionery Fats. One of the highlights in this business area is that we did manage to improve year-over-year our operating profit per kilo, our margin. It's up 8% year-over-year in spite of lower volumes. This is very much thanks to the already implemented supply chain improvements with additional capacity and orders, as well as better yielding shea kernels and productivity improvements.
Again, showing the capacity and the leverage that we can have in this sector as soon as restrictions are lifted and demand starts coming back more and more. With that, turning into page 10 on Technical Products & Feed. Volume is up, but really volume is up on the lower margin businesses where we have seen volumes being down in our fatty acids business and predominantly within sales to candles and technical products. With that took a hit on earnings in that business area. With those comments on the business areas, I am turning it over to Fredrik Nilsson to give us a bit of an update on the details in our financial figures.
Thank you, Johan. Looking into page 11 and cash flow, we have seen a lower EBITDA with 9% in the quarter, and that is due to the lower operating profit, as Johan has just explained. If we dig into a little bit more details, looking into the working capital, we have an outflow of EUR 262 million to EUR 152 million in the quarter. That is linked to accounts receivables was positive due to lower sales. We have a good inventory management that will also give us an inflow during the quarter. However, all the positive thing linked to the receivables and the inventory was offset by lower accounts payables, and that was a consequence of lower purchases and also the deferred impact of higher raw material prices. Reported tax cost was very low in the quarter, actually down to 15%. This is not the underlying tax rate you should expect going forward.
The earlier guidance is still valid, excluding the income we had as item of accounting comparability. That was not taxable. The underlying tax rate remain still 24% for the full year. Cash flow from investments, EUR 174 million in the quarter, that was mainly related to regular maintenance investments and capacity increases. Let's move to page 12 looking into the raw material prices. During the first quarter, raw material prices almost return back to the levels that we saw before the rally in 2019. That should imply that we should get a positive impact in our working capital during the second half of this year. As you maybe recall, there is a time lag of six to nine months until we see the cash flow effect from the price volatility in our cash flow.
Also another reminder is a 10% change in all our raw material prices will affect working capital with around SEK 350 million. Just to have that in mind. Looking at page 13 on return on capital employed. It declines down to 13.6 in the quarter, that was mainly driven by the decreased operating profit and the impact from higher raw material prices. Looking at page 14, our net debt, I think it's important to highlight AAK has a really strong balance sheet. Equity assets ratio, 47% in the quarter. We have a net debt of SEK 3.2 billion, up around SEK 100 million since year-end. Net debt divided by EBITDA at 1.14. Really strong balance sheet key features. Let's move to page 15. Looking at our loan and duration profile, we have today 90% of our loans with a duration with more than 12 months.
We have total credit facilities, SEK 8.2 billion, and we have SEK 6.9 billion in committed credit facilities. As you maybe also recall, it's many years ago now, we also have a revolving credit facility of EUR 400 million that will expire in mid-June 2021. This has now been extended by additional 12 months, but adjusted to EUR 280 million. We have also approved by our board today two new facilities in total of EUR 120 million. Moving on to page 16, we saw a negative currency translation impact in the quarter of SEK 10 million, SEK 6 million linked to Food Ingredients, and SEK 4 million related to Chocolate & Confectionery Fats. Based on the current spot rates end of June, we should expect a continued negative translation impact going into the third quarter. By that, I would like to hand back the microphone to you, Johan.
Thank you, Fredrik. The next page 17, is actually about you, Fredrik. My dear wing mate, Fredrik, he has decided to pursue new opportunities. With that, I would lie if I said anything else than I am sad with you leaving AAK, but I am simultaneously happy for you. A good opportunity. Fredrik will stay with us to the beginning of next year, so that gives us a good time to find a strong successor for Fredrik. I'll take this opportunity to hand it over to you again, Fredrik, for a few words on that.
Thank you, Johan. With the big AAK heart I have, it has not been an easy decision to leave AAK for new opportunities. To be honest, I will say it's one of the most difficult decisions in my professional career. I have to go back. My career started here in AAK back in 2007, and it has been an amazing and exciting journey all the way, and I'm extremely proud of being a small part of the AAK history. As Johan said, I will be here close to a year, and I'm also really looking forward to delivering the strongest possible second half of 2020. At the same time, it's also with great confidence and pleasure that I will join Trelleborg during the first quarter 2021.
Thank you, Fredrik, and we'll come back to say goodbye to you. With that, the process to find a new successor has started today. Concluding remarks from myself. We do offer plant-based, healthy, high-value adding oils and fat solutions based on our co-development approach. Of course, in the short to mid-term, we see the corona pandemic obviously increasing uncertainty. There is no reason for us to adjust our view on the strong, favorable underlying long-term trends in our market. Therefore, we do remain prudently optimistic about the future. We've seen a drop in volume, we've seen corona impacting many, many industries, and so it has with ours. We've also seen in the quarter a gradual improvement sequentially, with April being the lower mark in the quarter. With that, again, prudently optimistic about the future. Strong underlying trends on the more mid to long-term basis.
Thank you so much for listening. We are happy to take questions from now on forward.
Ladies and gentlemen, we are ready to take your questions. To request, zero one on your telephone keypad. We do have some questions in the queue already. We begin with Alexander Jones from Bank of America. You have the floor.
Thank you very much, and good afternoon to both of you. Two questions, if I may. The first one, you've talked about sequential improvement through the quarter. Could you perhaps give an indication of the exit rate that you've seen in segments like food service or in chocolate to get a sense of how things stack up into the third quarter? The second question is on the chocolate segment. You talked again about de-stocking having been an impact as well as the weaker end market in general. Is it possible to quantify that relative to the weaker end market in terms of the sales decline you've seen this quarter? Thank you.
Thank you. Starting with the trend, as we said, sequentially. Obviously there is a lot of uncertainty still. There's nothing in July so far that is showing any other trend line than that we are continuing. To be a bit more specific, as you asked, Food Service. Yeah, Food Service was, of course, a dramatic drop as lockdown hit early on. We were also very fast in our Food Service organization to adopt, to apply following, and now adjusting to the new reality with that demand. As soon as we saw societies opening up a little bit, we also see immediately a pickup in demand. Of course, also in this sector, there must have been de-stocking as several restaurants closed and so forth, and there has been a bit of a filling the pipeline.
from an index point of view, clearly, we see that we are on a week-by-week gradual improvement within food service. still, obviously, with a significantly lower level compared to before corona, since there is still clear restrictions out there still in the world. With regards to CCF, less of a V, U-shaped pickup, but still gradual improvement. I cannot give you the specific details because this is based on what we know from our customers, but we do not get a specific range about how much was de-stocking, how much was demand. if you look at the underlying development in the chocolate and confectionery market and then apply the de-stocking a bit, then you see where we sit. clearly, when de-stocking is lifted and we go back to a normal demand, there will be an additional gradual improvement, I hope to see.
less of a sharp improvement, but still a gradual improvement in CCF from the beginning of the quarter towards the end. I do believe that there is still some de-stocking to do after a bad Easter and after generally lower volumes. after that, we should see a gradual pickup as soon as restrictions are lifted.
Great. Thank you.
Thank you.
Next, we have a question from Kenneth Toll Johansson, Carnegie. Please proceed.
Yeah, thank you. A short one. Can you explain where the positive result in EBIT came from your changes in finances? Also why those changes did not end up in the financial net and on the EBIT line instead?
Absolutely. Hi, Kenneth. Fredrik?
Absolutely. It was linked to internal optimization and it was linked to old FX variances in equity that we had to release due to that we changed in the legal structure. That was the reason. As it was FX, you need to report them as another income.
Okay. It was more internal structure rather than refinancing?
Absolutely. It has nothing to do with refinancing. This was just pure optimizing our own structure.
Turning every stone, looking into the [reflection program], looking at the opportunities, and this one came up as something we needed to do and wanted to do.
Yeah. Great. Okay. I understand. Thank you.
Next, we have a question from Andreas Brock from Coeli Global. Please proceed.
Thank you. Hi, Andreas here, fund manager at Coeli Global. I have a question regarding ESG, and I'm just trying to make money for my investors, and the thing is that whole Expressen article on palm oil, it really put a negative feeling around the stock and has affected the share price. I really appreciated your comments earlier today about how you view palm oil. I have a question. Could you please just, on that article, could you just state publicly here on the conference call for everyone to hear that article wasn't relevant because you actually don't have production in that area at all? Secondly, could you just please give us something more tangible about what can we expect in the next 12 to 24 months from you when it comes to this whole palm oil certification? Thank you so much.
Thank you. First of all, as you mentioned, that was a statement made by an evening tabloid in Sweden. We source from suppliers in Southeast Asia, in several countries, and we are working diligently to secure our supply chain. Whenever we get any information and/or statements alluding to something, we always take that into account. We're always happy to engage further, and in this specific case, we made an investigation, and today we have not found anything confirming that AAK would have been acting in the way it was at least described and painted, call it, in this article. We have been, for a long time, very active, as I mentioned before, to transform the palm oil supply chain. We are one part of it.
We are sourcing from our suppliers who in turn are refining oil, and they are buying from crushing companies if they don't have them themselves, and then they in turn are buying from plantations. This is a long chain that we have to master together in order to make improvements happen. That's where we are still dedicated to continue to drive change, to monitor, and to work with our suppliers to really make a change happen. With regards to one of the most important things here is really to get deforestation to stop. I think still the debate is a bit twisted with regards to palm oil, whether palm oil is good or not. Palm oil is really an important ingredient for the world, feeding the world, one of the most efficient ones.
We really have to get the dialogue about how we get deforestation to stop, and that needs to be in coordination with government bodies, with industry bodies, suppliers, customers, as well as NGOs.
Excellent answer. Thank you so much, sir.
Next thing we'll go to from BNP Paribas. Please go ahead.
Hi, I have a few questions. I'll go one by one. First of all, could you update us on the emerging markets, please? I think you have flagged India, for example, being a challenge. I think you have big exposure in India, Mexico, Brazil, and Turkey in particular. Could you update us on each market?
Yes, thank you. I will. Yes, it goes without saying that although on an overall level, we can say that it's been versions of lockdowns and measures taken by governments. Really, India was difficult in the quarter because the way they did the lockdown made it actually impossible for us to operate for a while. We see that as one of the countries where that could still happen. Uncertainty about the way they do restrictions and lockdowns. We finally managed to get approval for being a critical ingredient in the food supply chain, as well as getting our employees into the plant and being able to operate. Clearly, that was a bit of a challenge in the quarter. That could still be in the future, but again, we are part of the critical food supply chain.
One way or the other, we get through, but it can be more difficult in this case in India. We are operating in Brazil, Turkey, and China as well. As you mentioned, China was early on, as we all know. We have been able to act safe to keep on operating. Business continuity has been really strong execution by our China team. China as a country on demand has come back, but not to the level it was before. Still more to give in a general demand sense, but from an internal point of view, still operating well and maintaining business continuity. In Turkey, we have had the impact really on our We do sell and have a business that goes through to many, many thousands of artisanal bakeries and call that type of food service business.
That, of course, was hit as well, and that is something that is expected to improve as also restrictions are lifted there. coming into Brazil and Southern Latin America, I think we have all seen in the news the difficulties and the way it's spreading at the moment. We have, again, been able to operate safe. We have it under control internally, but with regards to demand, that is, of course, impacted quite a bit due to restrictions and lockdown. I think we should expect the same pattern. As they are lifted, the demand for our products are also coming with it. in the short term, very uncertain and volatile, but in the mid to long term, still prudent, optimistic about these regions as well, and countries.
Thank you. The next question on CCF. I think last quarter you had talked about downtrading by some customers. When you look at the volumes that you do have in this segment, do you see that the high end is suffering? Is there a trading down still happening?
Yes. In the results that you see, that is included in the quarter already, and that is likely to continue for some time, but not a long time. That's not what we forecast, but that has been part of the results in the quarter, yes.
Thank you. as a-
Yes.
final. Yes. Thank you. as a final question, we hear from other ingredients companies that innovation activity is slowing. Do you find that co-development activity is slowing for you as well? I wonder, given your long development time, if this could be a headwind on mix with a bit of a lag?
Well, very relevant question, and of course, I think we all feel that some activities are difficult to maintain. There has been certainly a change of the way we do things. We have managed to continue some co-development activities and academies where we have been able to do things virtually and even sending samples via post and having a virtual camera setting in a lab, et cetera. Again, we show our agility, our creativity to make things happen. Simple answer to, is it slower? Yeah, a bit slower, but it's certainly not dying. Going forward, I think, in the short to mid-term, as we cannot travel, as we cannot meet as we did before, yeah, it will be more difficult. At the same time, I see that the underlying trends still call for, later on at least, accelerated activities and reformulations and so forth.
Thank you.
So-
Our next question comes from Oskar Lindström from Danske Bank. Please proceed.
Hi. Thank you. I have a couple of questions. I'll take them in turn, please. The first one, in the PowerPoint presentation now, you have a comment on page four where you say that you guide for a significant drop in demand for food service and other non-food segments in the coming quarters, and that this will have a material impact on earnings. I don't find at least that this exact comment in the report. You do mention further disruptions from lockdowns. In light of this, what do you mean by material impact, and how should we see H2 volumes in light of this? Is this irrespective of lockdowns ending during H2 or? I'm a little bit interested in this comment.
Could you repeat again, where did you say you saw that, page four?
This is on page four, Update on the Coronavirus Situation, the section Business Impact, the second to last bullet, if you will, or drop down.
I think, Oskar, are you having the right presentation? You're not having a first quarter presentation in front of you?
Oh, that probably explains it. Well, thank you. I was a little bit worried there all of a sudden.
Yeah. No, you're clearly so in Q2 that happens.
Yeah. Good. No, I was just wondering that you're warning for this for H2 as well.
No.
Okay, fine. Let's leave that behind. I have a second question around the turnaround in infant nutrition, which you mention here with new local clients in China, et cetera. Is this segment now back on track after the weakness last year? Have you been forced to make any changes to your offer or business there in China?
Thank you. Well, not really. We have had always a strong position in China, but we know that the infant formula business was down predominantly linked to lower birth rates. We also have good business opportunity. We have had good business opportunities in pipeline and a few innovations and new product offerings in the higher range of the high value-added solution. Call it that we stabilized it, and we are now growing from that new level and in a stable pace. Through Corona, we have seen no impact really on demand. If anything, it was slightly positive and with a good traction in China. Absolutely. We have also got in some new local Chinese customers here during the last quarters as well.
it's not a situation where you've simplified and reduced the price of your products or made any such-
No
changes?
No.
Okay. My final question, which I hope is also relevant. The CCF performance in Russia and emerging markets in the second quarter in light of not only COVID-19 but also weaker currencies, how has that impacted your business? Is that fully in the second quarter, and then do you foresee having to raise prices locally? What kind of effect should we expect there?
The effect that we have seen, and it is in the quarter. Eastern Europe and Russia predominantly are an important market. Yeah, that's a market where it's strong for us. We forecast it to be strong going forward in a more mid to long-term perspective, and that's why we made an acquisition into Russia as well, clearly with the ambition to continue to grow there. That is one of the countries and the region, if we take Eastern Europe into it, where you do see some down-trading. There was a question before there from Heidi. Yeah, that is in the quarter already and has been an impact. That is probably the most important impact. The other things that you mentioned are also included in the quarter, but not as significant to the overall results.
All right. Thank you.
Basically, the CCF, call it three dynamics, a bit of down-trading, a bit of general volume reduction, but also our own cost improvements from the implementations we have made, and that's why you also see a margin improvement within that.
All right. Thank you. Those were my two questions. Sorry.
Thank you. You're welcome.
That made me worried. Sorry. Yeah. Me too.
Our next question comes from Stefan from Millennium Capital. Please go ahead.
Good morning. Thanks for taking my questions. Good afternoon, actually. Just two for me on the chocolate division, just shorter term and longer term. Barry Callebaut reported results here, and then they downgraded somehow their long-term algorithm, taking 2020 off a lower base and telling us that volumes would grow off a lower base in chocolate. Do you also see the longer-term prospect slightly affected here in chocolate due to the lower demand? Second, you mentioned the Easter impact in Q2. Would it be fair to assume that we're going to see as well a weaker Christmas season this year, and that the negative effect would come on top of the de-stocking in chocolate and confectionery? Thank you.
Very relevant, of course, in a situation like this. I don't have all the answers to that, but I'll still answer your question what I believe. Yeah. Is it likely that we will be completely in a new normal or normal situation by Christmas? I think that is something that I don't believe. I don't believe we will be completely back to normal anywhere in the world. Does that then have an impact on Christmas? That I don't know. Could be. Could be that we have now found ways to shop what we need and to create a great Christmas and maybe more online shopping for gifts and so forth. Let's see how our industry here is really developing. Our sales is really going to the production of chocolate.
what we need to see here is the trends really from the consumption of chocolate and with that our customers' sales, whether we see an additional impact with regards to Christmas. clearly we had this pandemic came right over Easter, and I can easily understand how that was impacted. with regards to, you mentioned one player in the industry. We are supplying most of the players in the chocolate and confectionery industry. our demand follow very much the dynamics in the industry then with the caveat of our different value propositions and products, of course. we have one indicator there. That is included in our total customer base, but we need to see the whole development for the whole sector in order to draw better and more precise conclusions. I do expect demand to be gradually improving as restrictions are lifted.
Call that from a new base in Q2 and forward.
Thank you. Can I ask a follow-up question on the infant nutrition business here? Reading some of your quarterly comments and already a transition for a few quarters of local Chinese manufacturer taking shares from the multinationals there, and you won some local contracts, I think here. Is it margin agnostic for you? Or if we see market share shifts in infant formula in China, how does that affect your EBIT per kilo in that region? Thank you.
Not a major shift. The price level or margins is quite the same, but it's more showing how we are relevant than how we are able to follow our customers, both the multinational international customers as well as the local ones.
Thank you.
Thank you.
There are no further questions at this time. I would like to invite the speakers to deliver their closing remarks.
Thank you very much, everyone, for listening. An unprecedented situation, a very challenging, to some extent, quarter. Strong focus on staying safe, being able to secure business continuity, well executed by the organizations. Measures taken, cost adjustments in place, more long-term, medium-term actions also announced, and we have seen a gradual improvement through the quarter. With the restrictions lifted and if they continue, we do see that as a positive to a continued sequential improvement. Thank you very much for listening.