Good morning and welcome to the Clas Ohlson Q1 report presentation. My name is Kristofer Tonström, and I'm the President and CEO of Clas Ohlson. Before moving into Q&A, I'll review a short presentation, starting with an overall business update, then going deeper into the financial development, and then ending off with events after the reporting period and then a short summary, and wrap up. Headlining the first quarter, obviously a lot of things have happened since we were here last time closing Q4. We have seen a lot of changes, obviously, in the market and also in terms of consumer behavior. Also on our end, it's been a very busy summer with a lot of fast-paced change.
Looking at the first quarter, the results are below our expectations, and that's really very much driven by a summer bet that didn't pay out as we expected. I'll come back to that. Net-net, we're reporting sales of -1% to a bit above SEK 2 billion in the first quarter, and an operating profit of SEK 19 million, if we exclude the one-time effect of our U.K. operations closure, which had a one-time effect of SEK 35 million in the quarter. That said, we do have a strong financial position, and we have SEK 260 million net cash and no debt. We also have a strong position with our consumers.
We have more loyal and unique customers than most other retailers out there, and we have a very high price perception. The high price perception is gonna be one of the things more important than ever looking at the consumer confidence development right now and given the economic situation for our markets. Also, of course, on our end, flexibility and efficiency will be more important than ever to be able to adapt and to be resilient to anything that comes our way now in the next couple of quarters. Starting with looking at a bit more of the details of the first quarter, while online total sales was down 1%, our organic sales was down 3%. Obviously we had planned for at least 5% growth, which is our annual target. That said, below our expectations.
Online sales grew 6%, obviously in the fourth quarter we saw some decline on online and now it's growing again, which is important given that this is still a key driver of growth for us forward. Our gross margin came down from 39.5%- 35.1%, and I'll go more in depth on that area in a minute. As a result of this, the EBIT margin decreased to -0.8%, and obviously this includes now the U.K. closure. As said, net cash at hand and no debt at the moment, and thereby a strong position in terms of net debt to EBITDA amounting to -0.4%. Looking a little bit more into what happened now this summer.
Obviously, as we talked about when we were here closing Q4, then we concluded that we placed a big bet on an early and big spring, and that paid out well. We placed a similar bet on an early and big summer, and that didn't play out as expected. Obviously we had distributed larger volumes to our stores to be very prepared for when the consumers needed products. We were focusing on big items like fans, watering, pest control, et cetera. Big categories with fairly high value items and also fairly high share of known brands in that mix. However, sales started later than expected, and the overall summer came in lower than expected. We also saw a big and fast promotion activity increase within the market.
Many retailers were already as of June on 50%, 60%, even 70% off on some of the summer items. We took an active decision to follow the market pricing to, one, be competitive and give our customers the same value as elsewhere. Number two, to ensure, of course, that we maintain market shares. Number three, to also clear out the stocks that we have in our distributor to our stores. We've also seen during the summer that the consumer confidence index has continued to drop across the three markets. Also notably, as we also referred to last quarter, we see the biggest drop actually happening in Norway, and that's also where we've seen the most sales softness in this quarter. Our strategy remains unchanged.
We have our blue heart strategy with the key focus areas that we're working with deliberately on an ongoing basis. That said, obviously given the market situation and given where we're at, there's also high focus on cost. Anything, we're gonna be a very demanding buyer on any type of services, obviously. With purchasing prices, transportation costs, total rent, et cetera, we're working deliberately with doing anything to get costs down. Obviously, there are raw materials that are starting to come down, and we expect, of course, suppliers to come back down on prices on anything that has gone up in the past. We're working very deliberately with that.
There's a big responsibility on our end to constantly make ourselves more effective, especially in our value chain, making everything more effective and ensuring that any krona that we spend, the consumer is also willing to actually pay for. Big cost focus moving forward. Looking at our four identified growth drivers that we're focusing on to drive growth over the next three years. The first one is what we call our key consumer missions, and this is obviously our bigger destination categories where we're fulfilling very concrete needs of our main shoppers. Here we do see some positive development on a lot of the key categories now this summer. We do see a tendency of need-based shopping to increase. There's less nice to have, and consumers are very deliberate in terms of when they spend money.
They spend it on things that they really need. We also see, especially now recently, a big demand increase for anything that helps our customers save money. Anything from energy saving to food storage, food boxes to bring to work instead of eating out, et cetera. We believe we are well-positioned, and I'll come back to the missions in a second when it comes to our assortment forward. The second growth driver, which is providing availability and convenience, and thereby growing both sales channels, stores and online. What we've seen in the first quarter is that actually the traffic to our stores have been actually increasing and fairly on a good level.
Whereas the challenge has been actually making the conversion happen, and consumers have been much more careful with actually spending money, but they do come visit us, and we have a high amount of visits on a going basis. Online, we have seen stronger conversion, and we have actually seen, as a lot of other e-tailers, a big traffic drop during summer. Despite that higher conversion and thereby a 6% growth on our online in the first quarter. We've also added one new feeder store, i.e. our distributed eCom warehouses that are combined with the physical stores. We just opened now in Northern Norway, in Tromsø, to also provide our customers with same-day to next-day delivery across the three markets. We see that is a key growth driver for us online.
On Club Clas and our focus on our core customers, we believe this is gonna be more important than ever as we move forward, ensuring that we have a big base of loyal customers that do come back and actually invest with us on the right categories. Now we have 4.4 million members, and actually in the quarter, we've seen 20% growth of those, of that membership base, or sales within that base. Then the last growth driver, Finland. We are really kicking off now 20-year celebrations with our customers starting more or less now across Finland. Looking at what we've done during the summer, it's been a lot about growing the membership base. Actually we have grown that 7%-8% or the sales with our members 7%-8%.
The key thing in Finland is getting more customers in. The customers that buy with us, they really like us, but we need to grow and drive scale. We have implemented our price guarantee, and we also kicked off our local marketing concept to appeal to our Finnish customers in a new way. Touching quickly on our consumer missions, these are really the big destination areas, the reasons you actually visit Clas Ohlson. We are maintaining focus across these five areas that we laid out more in detail during our Capital Markets Day back in June. Again, as I said, we do see a high tendency for need-based shopping and also helping consumers save money.
We do have a high focus on tidying up your home, lighting up your home, creating a conscious home environment, especially now during this coming seasons. As we also have talked about, a key for us is to expand our assortment, and that is a key way to realize our missions. We have 200 million customer visits a year, and we do see that the customers prefer us as long as we offer what they are looking for. I think one example right now in tidy up your home is a customer might come for a vacuum cleaner, but then they can also buy their everyday cleaning items, everyday cleaning chemicals, et cetera, even more becoming a destination for more opportunities. This also links into a bigger focus on consumables for us here and now and moving into the fall.
We do have a big opportunity to increase the baskets with affordable, sustainable consumables that the customers actually do need in their day-to-day, no matter economic environment. Looking at our customer satisfaction, our NPS is still at a high level, 55. The product reviews, 4.6 out of 5, versus target of 4.4. The apparent quality and the perceived quality of our products with our customers remains high. We've also added here the measure to show you our price perception with customers. We measure this on an ongoing basis. What you can see here is the scale between zero equals cheap, 100 expensive. We are at 16% and we have grouped our low price competition together.
As you can see, our customers actually do believe that we have a very strong value proposition. That is gonna be key for us moving forward. Looking at sustainability, this remains extremely important and we do see a big synergy between helping our customers save money, but also our customers actually living a more sustainable life. If you are looking after your food waste, you're gonna save money on expensive food, but it's also good for the environment to drive down food waste. We're integrating these messages a lot moving forward. We also see continued growth on spare parts. That's what consumers are now looking for. Also in terms of our work with our suppliers, we can still report high levels of 99.1% of our suppliers free from critical findings and related to our code of conduct.
Despite everything happening in China right now with COVID, we've still been able to perform 119 audits during this quarter. When it comes to the products we develop and sell ourselves, now 24% of our private labels have been assessed and classified in accordance with our product sustainability assessment model. Going a bit through the financial development. I've already covered sales, so amounting to SEK 2 billion. Looking at the three markets, we can see that over the last four years, we wanted to compare with pre-pandemic levels. We see Sweden on a fairly stable level. Finland, slight increase now in the last quarter, but of course, we want more. Looking at Norway actually did have some positive pandemic effects, and we established ourselves at slightly higher levels over the last couple of years.
We're declining versus last year, same quarter, and we are looking extra into Norway right now, given consumer confidence, et cetera. Looking at pre-pandemic levels, we have still established ourselves at a fairly high level. Online, same thing here. Pre-pandemic, SEK 113 million. Now we're at SEK 232 million, 6% growth versus same quarter last year. This remains a very key driver for us to drive total sales. To our gross margin, and this is obviously the biggest factor impacting the negative EBIT in the quarter. Obviously, the overall gross margin dropped from 39.5%- 35%. I wanted to share a bit more details on that. Obviously, going into the quarter, we have seen sourcing costs, transportation costs, purchasing prices gone up.
Everything we sold during the first quarter, a lot of the things were actually bought at peak cost. There is a time lag when we buy things and when it actually moves out of the warehouse. We knew that would be, you know, high pressure from a cost point of view, and we had taken a lot of preemptive measures during the spring with price increases across a range of products. As earlier explained, the decisions we made on cleaning out our stores from summer stock is what had the absolutely biggest negative impact, this quarter, of course, combined with other things. Net-net, that is, of course, why we see the disappointing development on our gross margin.
Selling expenses, not too much to go into detail, but obviously, as a result of slightly lower sales, we see share of selling expenses going up a bit. Also, of course, we have, as we have reported during the summer, maintained the high pressure when it comes to store sales and also marketing activities to ensure we are relevant when the customers are out there. Admin expenses, we are always cost-focused, and we see SEK 44 million in this quarter. As a net result of all of these factors, we see an operating profit of, including the U.K. closure, SEK 16 million and excluding the U.K., SEK 19 million. Obviously below our expectations, but obviously clearly related back to the facts that I've just laid out.
Looking at investments for the first quarter, they amounted to SEK 32 million, mostly focused on store refurbishments, some store moves, and also IT systems. Of course, to the question of our inventory level. Obviously, we went into the quarter with high inventory levels. As we talked about last time, we placed big bets on summer. Now looking at our inventory level, it's around SEK 2.5 billion . If you look back at the first quarter in the last couple of years, it was a bit lower than we wanted, but obviously, we are sitting on a fairly high inventory level.
However, to give a bit more color onto the inventory levels, the absolute majority of the inventory increase, both versus last quarter and versus the same quarter last year, the absolute majority are products that are either in our distribution center or on its way to the distribution center. In terms of product mix, it's very focused on autumn products, winter products, Christmas products, and base. The active choice we took to sell out summer stock from stores have played out well in terms of store stock. It did cost us on the gross margin. Looking at the levels in our DC, the remaining summer stock that is still there, we believe we will be able to sell next summer. The absolute majority of the inventory growth is related to products that we believe are sellable in the coming two quarters.
Looking at our cash flow, and obviously, our operational cash flow is -SEK 35 million, and the biggest driver of the cash flow, apart from the result, is obviously the stock buildup. There is a clear correlation there. As I said before, we have SEK 260 million in the bank right now, no debt, but we do have approved credit facilities of SEK 650 million. On Friday, we have our AGM, and as announced in the Q4, the board is proposing a dividend for the year that we just closed, which is a slight increase to SEK 6.75 from last year's SEK 6.25.
The board is also proposing an extra dividend of SEK 6.25 to compensate for the year 2019/2020 when we didn't do a dividend based, driven by the pandemic. Obviously, this is in line with our dividend policy, and it relates back to the year that we closed on the last of April, which was a record year for Clas Ohlson. Looking at the very important macro trends now moving forward. On the top here, we have the prices for containers from Asia to Gothenburg. As I said before, a lot of the things we bought now during the summer were bought at the peak of this graph. Of course, the good news is that the graph has started to come down a bit.
Obviously, high levels, more than $11,000 for a container versus what we used to be used to, around $2,000. Obviously, establishing itself on higher levels, but coming down from the peak. There's been a lot of movement, obviously in exchange rates lately. Looking at the NOKSEK, that is a very important part for us sales-wise, given the big business that we have in Norway, and there has been fluctuations here. The most important thing to have a look at moving forward is obviously the impact of the dollar. Similarly to as I talk about transportation cost, of course, there is a time lag. We buy something, and then there is a certain amount of time before we actually sell it, and it's activated as visible in our gross margin.
Looking at the dollar development, a lot of the things we're now selling were bought at a slightly cheaper dollar. Now the dollar is up 20% since last year same time. Of course, we expect a dollar impact on the quarters to come. Our job is, of course, to do everything to offset that, find ways to drive mix, total sales, et cetera. That is obviously something that has changed fairly dramatically just recently, driven by the macroeconomic development. Before summarizing and closing off, also reporting the August numbers. We see the total sales in August is up 7% to SEK 758 million, and organic sales amounted to 2% up. Obviously August is a transition month.
A little bit in the beginning of August, we sold out the remaining part of summer, but we have seen a fairly fast shift now into autumn and into the need-based categories that I referred to earlier. Obviously one month is too short to draw big conclusions on, but of course it's encouraging to see organic growth again in Norway, and of course, the ambition is to maintain and drive that further. A bit of a disappointment in Finland of -3%, but as said, we're now for real kicking off the growth plan starting with our 20-year celebration now this fall. Also looking at our online sales, here we see 42% growth amounting now to SEK 83 million. Again, similar things in terms of mix and product composition as for the total.
Here we also see the effect of now our feeder store network, and actually a lot of deliberate work day by day to optimize this part of the business. We've also decreased four stores versus the same time last year. To summarize, we have shown for years that we have a very strong track record of adaptability and resilience, and we're gonna show that also moving forward. Of course, a lot of things have happened. There is high energy and pace within the organization to drive the necessary changes now to take on also the market environment that we're currently in. Obviously we now have full focus on the three Nordic markets after we successfully closed the final part of the U.K. business now during the first quarter. We have our long-term priorities.
We have the clear long-term targets that we're aiming at, but of course, we also need to be very flexible and adaptable now in the short term. That summarizes the presentation. Let's move into Q&A.
Good morning, let me start by handing over to our participants in the telephone conference.
Thank you. Ladies and gentlemen, if you do wish to ask a question, please press zero followed by the one on your telephone keypad. Our first question comes from Magnus Råman from Kepler Cheuvreux. Please go ahead. Your line is open.
Thank you. I have a few questions, perhaps starting off with cost savings here. You mentioned several initiatives here. Could you give any more specific examples of which potential areas you might have identified in this work?
Good morning, Magnus. Yes, of course, as always, high focus on cost, and I think we will share any kind of bigger news like we did on the U.K. last quarter. It is really down to every part of our value chain. You know, what can we do to become more effective in terms of how we get products shipped to us, packaging size, et cetera, some of those longer term. Also in the shorter term, it's really about ensuring that we're focusing everything right now on the things that customers are willing to pay for. You know, even more conversion focused on marketing versus brand building, et cetera.
I don't have any specific numbers or anything I wanna share today, but it's really a lot of activity now to look at everything, and we will share news as we go forward step by step.
All right. Great. Then you also mentioned here another initiative, moving some sourcing to India. I believe that was a new sourcing market for you. Can you give any sort of examples of price differences on comparable items when you move from, I guess it was predominantly from China previously to India to get a grasp of the magnitude of change here?
Yeah. No, we are making a lot of changes within our sourcing, and we have done for a while now in terms of adapting the sourcing strategy. Obviously price is one key factor, but also there are other things. For us overall, we wanna manage risk in a broader way to have more places to source from, in terms of geopolitical risks, et cetera. We also wanna ensure that we have closeness, more closeness to home. We wanna ensure product quality, but then also as much as possible cost, you know, focusing on cost saving and at least remaining also the cost levels. Specifically looking at India, there are some good things in terms of the Indian market.
One is even though it's far away, the transportation from India is a bit faster, and also there are a lot of areas where there could be opportunities. It's early days. We're placing first orders right now. Obviously we've been going on a bit longer now in Poland and Vietnam, but it has more. There are many more reasons than only cost. Of course, the key thing for us is to weigh all of these things together. Nothing specific that you should expect in terms of gross margin impact of this in the short term.
Sure. All right. Then, more specifically on your performance here in August, then driven by online growth. You mentioned here a few feeder store network and some strategic initiatives to support online. Would you also say that you have sort of deliberately taken action to drive sales, campaigning and such in August to support this strong online sales?
I mean, in the early part of August, we had still the summer sale going on. Looking at the second part of August, we have not done as many broad campaigns, and it's really been more deliberate working category by category, product by product. Again, we have seen especially on food storage and back to school, et cetera, that we have been relevant with our offer. Here it's been more to ensure to have adapted the prices, you know, on an ongoing basis rather than the broad campaigning. Of course our objective is to always drive profitability across all channels, including online. It's not been based on broad-based campaigns apart from the early part of August.
All right. Then you also mentioned here the U.S. dollar strengthening. Normally, I guess you have an ambition to compensate through your retail prices. Would you say in this market demand that you deem it would be both the magnitude of the FX change and also the sort of the market as such make it, do you deem that it will be tougher for you to compensate here for FX?
I mean, first looking at the magnitudes, obviously in our annual report, you can see the sensitivity calculation of the U.S. dollar impact on the business. I mean, if you look at a 10% ± of the U.S. dollar in a full year, that would have a SEK 144 million impact on the bottom line. That's kind of ±10% and the impact it could have on the full year. You know, if you want to have a detailed look there. Of course, looking at the near term, obviously we have done, as we've talked about before, carefully done a lot of price increases now during spring.
We need to maintain price perception with customers, but we have changed prices on thousands of products during the spring, and that was a lot to offset sourcing costs, et cetera. The new kind of unknown that has escalated over the last few quarters has been the dollar. Of course, our ambition is to always find ways to offset. Of course, looking at the next few quarters, it will have an impact, because it's kind of one thing on top of the other. Obviously, we are working a lot both on the gross margin, but also as said on the total cost side to do anything to offset.
Right. I assume the sensitivity calculations that you have shown for some time, that that's mechanical, so to speak. What we're interested is sort of your historic ability to compensate and sort of to what extent you expect to be able to compensate this time around compared to historically.
Yeah. Now, obviously that's the net impact, and then we have the hedging, and then also the other compensation is, of course, pricing. I think the key thing here, we continue to work with the base pricing as we have done during the spring. It's gonna come down a lot to being very smart in terms of how we work with campaigning, et cetera. Of course, a factor there is gonna be the market situation. Looking at the summer, obviously, there was a big downward trend on overall prices across the key categories related to summer. If I look now in the next two quarters, the season is longer, also slightly less dependent on external factors. Our hypothesis is that customers will celebrate Christmas this year as well.
Looking at summer, obviously product composition and mix was also a lot of known brands at pretty high value per item. It's a broader assortment now moving into the fall. Obviously the ambition is to have the ability to compensate more with mix and also being even smarter and not you know in terms of the campaign mechanics, but also we will not be in the exact same position when it comes to large distributed amounts of stock of fairly high value items as we did see this summer. I think that's obviously we are tracking this on an ongoing basis to optimize gross margin, but and we will do everything to offset. But again, it comes on top of the other things that we have talked about for a while now.
Thank you very much. That's all for me.
Thank you. The next question comes from Carl Deijenberg from Carnegie. Please go ahead. Your line is open.
Thank you, good morning, Kristofer. Two questions from my side. First of all, on the gross margin here in Q1, the contraction 430 basis points in Q1, and you talked about the largest impact coming from the sort of increased markdowns on the summer inventory here at the end of the quarter. Could you just give a sense of quantify maybe sort of the exact contribution on that out of those 430 basis points? Is that 200 points, 250 points or sort of ballpark how much was that out of the total?
I mean, if you look at, sorry, I'll jump back in the slide. I think it's easier. If you look at the bridge that we shared here in the presentation deck, we actually see, and also as we write in the report, you have price increases, sourcing cost, and then the campaigns for the summer assortment. They're not exactly the same size, but fairly similar in size, and you can see the relation here on this slide in the deck.
Okay. Very well. Thank you. Another follow-up on the dollar impact. Obviously, that has moved quite significantly just this week. I'm just curious, the sort of inventory turnover, or the turnover, the pace of it, sort of when you purchase today, when will the U.S. dollar approximately how many months from today is that visible in the COGS?
Obviously we have an annual turnover rate of the stock at DC today over approximately 5x a year. Of course, there's a huge variation between products. Some products are slow movers, some turn over fairly quickly. Also, as said, we have increased inventory now deliberately to be prepared for autumn and Christmas, et cetera. The large inventory increase right now obviously was bought at slightly cheaper dollars. Anything and the placed orders now that will come in at the end of this calendar and also in the spring next year will of course be impacted by the higher dollar. It's difficult to give one answer given the breadth of different products and also the different movements of different categories.
Okay, fair enough. I think that was all for me, so thank you very much.
Thanks, Carl.
Thank you. There appear to be no further audio questions. Just one moment. We've actually got a question from Nicklas Skogman from Handelsbanken. Please go ahead. Your line is open.
Yes. Hi, good morning. You have talked about how you had a lot of inventory in stores during Q1, and how you sort of decided to do a lot of campaigns to clear that out. Now you are saying that you have a lot of inventory either on its way in or in warehouses. How should we think about this being sort of different from having inventory in stores? Are you feeling less need to be aggressive on campaigning? Will you then, if you are unable to sell the inventory that's for autumn and winter, will you then store it for next year 'cause you don't need to transport it back to the warehouse, which you would have needed to do with the stock that was in the stores?
Yeah. Obviously we never wanna first send the product to stores and then bring it back into DC. Once we have distributed it out, obviously we wanna sell it. Again, we did place a big bet this summer. We distributed more than we normally do to be prepared for fast weather changes, et cetera. That's obviously why we took full responsibility of that with the clean out. I think looking at the next couple of quarters now and also looking at the season we're going into, the composition of products are slightly different. Again, not as kind of weather dependent, mosquito dependent, et cetera. Second, also, kind of value per item, slightly less risk.
Obviously one of the key things we're doing right now is ensuring that we optimize, we want to have full stores, moving into autumn, Christmas, but how can we risk mitigate so we don't put too kind of high-risk items out too much into high inventories. That's obviously the work we're doing right now. The second thing is of course that the season is also slightly longer, and of course the most sensitive part is Christmas, with Christmas stars, et cetera. If I look a lot at the rest, a lot of things that we sell during autumn will also be able to be sold across Jan, Feb, March.
As we do now with the summer stock still on DC, which is a fairly small part now of the stock value, we keep that until next summer, and we judge that that is right thing to do, because there is not kind of like seasonal colors and et cetera. It's pretty timeless products, so we'd rather keep them and sell them at full margin early next summer. Of course, we're gonna have the same way of approaching now both autumn and Christmas. There is a bit of a puzzle to get that in place to have full stores but with the right items. We've learned a lot from what we did now this summer.
All right. Thank you. One question on the demand and sales in the past quarter. If you look at or if you compare sort of the seasonal product demand and sales of that versus, I guess non-seasonal or evergreen products, did you see a big difference? I guess what I'm trying to sort of get an understanding of is how much is summer product fatigue and how much is just a generally weak consumer.
I think it's a little bit of a mix in terms of the consumer you know willingness to spend. Looking at the categories, the biggest part of the sales drop versus our expectations and the biggest part of the gross margin impact were on the high summer season items. Looking at the more base sales, the rolling twelve months assortment, you know, some of this bread and butter categories for Clas Ohlson that was much more intact. Obviously, you know, the big bet on the summer categories that not paying out was really the key thing that drove down both sales and gross margin. Of course, that's why also moving forward, having an even higher focus on the day-to-day bread and butter, the needs categories is gonna be very important.
Of course, looking at the summer categories, either you need the fan because it's hot or you don't. We also saw that consumers didn't wanna spend SEK 2,000 in case actually the weather turned. Of course, that's, you know, what was driven by the wallets of the customer versus external factors, it's hard to know exactly. The biggest drop and the biggest impact on gross margin was season-related and season product related. I'm not worried about our base proposition. That also is related back a lot to the, you know, the reasons we go for the missions is to also be slightly less dependent on the big seasons.
Okay, very good. Then, I think you said in regards to August sales that roughly half of the month was sort of a continuation of Q1 in terms of campaigns and so on, while perhaps the second half was less so. Was that correct there?
Yeah, approximately so.
Okay. Good stuff. If you would then compare the lower freight prices versus the higher dollar impact, the net effect of those two over the coming quarters, let's say. I guess maybe the freight prices will be beneficial before the dollar will start impacting. Or how do you see the net effect of those two?
Yeah. The kind of quarter-on-quarter transportation cost, we will start meeting, looking at the graph of SEK 16,000 there, we're gonna start meeting that base obviously sooner than when the dollar will really start impacting. Then over time, of course, it's gonna be a question of mix how much they offset each other. That's right.
Okay. Thank you very much.
Thanks.
Thank you. There appear to be no further questions. I'll return the call back to you, speaker.
Thank you. We have no further questions from the webcast audience either. I'll hand back to you, Kristofer.
Okay. Thank you very much for taking the time with us this morning. Obviously we are on our end fully committed and fully energized to take on also this very, you know, challenging period of time in the market right now. But we do really believe in our base opportunities and our base position to actually take on also the consumer needs now moving forward, even if it's in the shorter term will of course be challenging. Thank you very much, and then see you again soon.