Just think. London. Det är en annan marknadschatt igång men den kommer inte låta. Det är inte så att alla marknadschatten kommer klinga till här? Nej, allting är avstängt. Jag kan meddela alla att jag haft någon form av curl grej i håret som min fru vincenterar. På. Det är 20. Nu kör vi. Good morning and welcome everyone to the presentation of Apotea's 3rd quarter report. We will as usual start with a presentation of the quarterly figures, and after the presentation is done, we will move on to a Q&A with spoken questions. Today's presenters are, as usual, Pär Svärdson, our CEO and co-founder, Johan Mårild, our CFO, and myself, Sarah Ahnström, our COO and Därför att du är si i år. So let's begin with some highlights from the quarter. Yeah, and we have had a good quarter with improved growth and profitability. So Johan, please present the figures. Yes, we had revenues of 1,998,000,000. million kronor in Q3, closer to a billion, and we increased growth to 12.5% and adjusted EBIT margin to 5.4%. And some updates from the quarter. We have remained, or our focus has remained on growth. We have continued to launch and execute on several growth initiatives. We have also had an accelerated growth during the quarter that was driven by Rx, prescribed medicine. We have worked a lot with strengthening our customer offering both in general but also in Rx in particular, and we can see that that has had effect. We have been working with how we present the products on site. We have also broadening the assortment of Rx products available for the customers. And we have also made changes to the delivery experience. We're also glad to see that we have expanded the area of same-day delivery to an additional one million people in Sweden, which adds up to 3.7 million people who can receive our orders the same day. Yeah, and we have continued to scale up Norway. We had a soft launch in Norway this spring with like 1 to 2 orders every day. for quite a while, but I mean, it was very important to see that it was a good experience for all customers. And now after the summer, we have started to scale up. And we can see really good figures in Norway, and I see a big potential in Norway, and I think over time it will really Help us grow. And we've also been recognized as the strongest online pharmacy brand for, I think, 9 or 10 years in a row. So we're very happy about that. We will absolutely also continue to work much, much harder to receive that nomination for the next year as well. And the rolling 12 months net revenue continued to increase. We have now surpassed €7.8 billion in net revenue rolling 12 months, and the adjusted EBIT margin for the same period was 4.3%, slightly up from Q2, 4.2% then. Let's look closer at the numbers then. The growth in the quarter was 12.5%. Growth in this quarter was driven by strong Rx growth of close to 19%. And as we mentioned, we— it was supported by an improved offering in this area. And then to the right, you can see our gross margin development. Gross margin was stable in the quarter, and then if you look year to date, it's even more stable. It was 27.5% year to date, which was very much in line with last year. We significantly improved our adjusted EBIT in the quarter, and the improved profitability was the result of— I mean, you have a stable gross margin and then continued good cost control and improved efficiency in our logistics, which was in turn then supported by the successful launch and scale-up of Varberg. We launched Varberg a little bit more than a year ago. And the improved efficiency is also evident when looking on the right-hand side of this slide, where you can see the external expenses. And if you combine that with cost of our personnel, it goes down year over year. Depreciation, however, increases as expected, and as a result of the Varberg launch last year. Year to date, we have a growth of 11.3%, and we have a slight increase of the profitability even year to date, despite the higher depreciation as a result of Varberg, as mentioned. Operating cash flow in the quarter were impacted by— were lower and impacted by changes in net working capital. which then in turn is as a result of timing of purchases. And over a longer period, I mean, if you look on the last year or so, was impacted by the buildup of inventory. And in the quarter, then, it's more— it is a result of timing. I mean, net working capital varies from quarter to quarter. Underlying, we have a strong operating cash flow and good cash conversion. We continue to have limited investments year to date and in Q3 following the completion of the new fulfillment center. Post that completion, we're focused on optimizing our operations and scaling up the operations in Varberg. And if we look into the coming year for investments, I think we have been very focused on getting, as Johan said, Varberg up and running. And hence, that has been the main focus. If we go ahead now, we have a very stable production in Varberg, and we think that it is time to start evaluating coming investments in automation for Varberg. We have the capacity that we need currently, but we also know that it takes time to get automation in place and also takes time to get automation up and running. However, we have communicated a normal CapEx of 50 to 75 million Swedish crowns a year, and we don't expect any deviation from that during the coming year. Inventory amounted to 840 million end of September, which was then slightly down compared to Q2 actually, and fairly stable compared to September last year. The inventory turnover metric came down somewhat compared to last year, and that is the result of how you calculate that metric where you have average inventory than increased due to the buildup of inventory last year. Next slide. Yes, we have continued to have a solid return on capital employed of 27-28%, and the decline compared to last year is then related to the asset buildup in related to Varberg. On the right-hand side, you see our position, our balance sheet. There's strong balance sheets. You have a net cash position of 111 million kronor end of September, and that is despite this buildup of inventory and the dividend paid out this spring. Yeah, and, um, I mean, we started, uh, Varberg, as all of us have said several times, like one year ago, and was the biggest project in Apotea's history. And then if you look back now, one year later, it was a very successful project, I think, on time, on budget, and it had really been good for Apotea. And, um, I mean, we started Q3, uh, 2025 with scaling up a little bit, uh, from like zero when building stock. we scaled up, we added more shifts and worked more hours and also improved the capacity and solved a lot of errors. So it started to work very well. And, um, after that, we went— exactly. And last year was also the first Black Week during Q4 with the 2 logistics centers, and we were super happy to have the additional capacity in automation in Varberg in those peak sales days. However, we also gained a lot of experience in perhaps the additional complexity of purchasing and sending out campaign orders from 2 warehouses. And we have since then, the following quarters, really improved our way of working, in particular perhaps in purchasing. And if we look at the first quarter this year, And during the second quarter this year, we also launched apotea.no, sending in Norway. So we started sending our customer orders to our Norwegian customers from Varberg. And I think that has been a really good way for us to use the spare capacity in Varberg in an efficient way. And now we handle like 40% of all orders in Varberg, and even more for these large and extra-large packages. And that's very important for us because they are fully automated in Varberg and quite manual in Morongova, so it's very good for our costs. And if we look going forward, I think it works well now, but 1 year, 2 years, 3 years from now, it will work much better because it's still a journey. So it's a lot of things we can do much better, but it's good investment so far. And if we focus a little bit ahead, we, I mean, we want to build the pharmacy for tomorrow. I have said that before and I will probably say it more times. What we mean with that is that we want to take continuous improvements every day, make it a little bit better for our customers, a little bit better efficiency, better overall performance. And we continue to do that every day. And I think we have a good pace of it. And now we focus a lot on growth, as we have said. And we have like hundreds of projects related to growth, and that will continue to be our focus. Exactly. I think one part of this focus is, of course, also to continue to work on the customer offering and making improvements constantly within that. And I think what has been evident during this quarter is kind of the additional speed in getting these initiatives executed— implemented, I could say, especially within the tech initiatives. AI has really helped us to speed up the process of having tech initiatives implemented, and that has been something that I think will have a great impact also going forward. And we'll have a change in the customer offering, in the speed of the change in the customer offering going forward. We will also continue to work, of course, with optimizing the logistics operations. As I mentioned, we will evaluate additional investments in automation in Varberg. We are also very happy to see that a larger part of the packages are being shipped from the Varberg facility. But going ahead, we will also start to optimize more and more the stock levels in both warehouses going forward, which will of course, be a positive impact. And that was the end of the presentation, and we will now open up for a Q&A. The next question comes from Johan Fred from SEB. Please go ahead. Yes, good morning, guys. Thank you for taking my questions. On Rx growth, I think the first question from Johan Fred, if you will try. Yes, can you hear me? Let's see if it works. Can you hear me? Can you hear me? The next question comes from Benjamin Wahlstedt from ABG SE. Please go ahead. I could hear you, um, It doesn't seem that the speakers can. Let's see if this works. If we can find some, uh, Still nothing. I don't really hear any questions. Exactly. We can see they're activating the questions, but unfortunately not hear any questions. So let's see if we can get the technical things to work. All right. We wait a bit. Testing, testing. Testing some more. Hello. 7 or nothing. Let's try again to see. The next question comes from Victor Hansen from DNB Carnegie. Please go ahead. Okay, I heard Johan and Benjamin. I assume that Pär, Johan, sorry, you can't hear me either. Yep. Testing, testing. Sorry for the technical problems, but we hope we can Exactly. Test, test. Jag tror du har tryckt på volymknappen på den där uppe. Try again. Victor Hansen, can we try to hear you? Hello, can you hear me? Can you hear me? Some kind of technical problem, but is it possible to have it through chat? Jag tror hon har diskonnekterat. Can you hear me? Nu låter det någonting. Förlåt för det. Så det ser ut som att det är oss som har några tekniska problem med talarna. Let's see if we can get it up and running. Sorry for the delay. Can you hear me now? Jag vet inte om vi ska göra så. Too much AI. Super, super. Vi ska leta, prova, pausa och ladda om sidan. Gracias, Manon. Just pröva att ladda om sidan. That, that. And quite a common question this morning has been how it works in Norway, and it works very well. But maybe now, Victor, Yes, can you hear me? Can you hear me? Yeah, sorry. Okay, perfect. Thank you. Let's go ahead. Yeah, okay. Uh, good morning, Pär, Sara, Johan. Uh, yeah, thanks. Good morning. Okay, so now I'm the first person to ask the question, but I was third in line. But sometimes you're lucky. Exactly. We're happy to hear you. Yes, excellent. Yeah, so thanks for taking my questions. Good report here this morning. I have a couple of questions. I'll start with growth in traded goods. Slowed a bit to 8% year-on-year. It was down from 10%, which you delivered in both Q1 and Q2. So my question, shouldn't it have benefited from a better consumer, your external focus, a big uptick in SKUs, cross-selling from Rx, which grew nicely? So what's behind the slower growth in other products that we've seen versus what we've seen here in the first quarter? I think it's going up and down a little bit due to, I mean, uh, days in the quarter, how many Mondays and so on. So I think you need to look in a little bit longer series of quarters before you can say anything. Uh, so I'm not worried about it. I mean, another quarter you will probably ask the same about Rx or something. But, uh, over time we will absolutely increase it. Okay. Thanks. Next question. Looking at your EBIT margin, so this was another strong margin quarter, and this was despite the high-margin service revenue. in absolute numbers being well below both Q1 and Q2, but also higher Rx sales, which some out there believe is negative for margins. You again proved this wrong. So this was 3rd quarter in a row above 5% EBIT margin, and you've been above 5% in 8 of your last 10 quarters. At the same time, your short-term margin target from the IPO and before Warburg, that is at 3% to 5%. So my question, why is this? Are you planning any very substantial cost increases for '27? Because Otherwise, it's a little bit hard to understand the seemingly low margin target that you have currently. Yeah, but for us, it's very important that we can hold the corridor, so we are above it. And the 4th quarter last year, we wasn't above it. So I mean, uh, I think we need at least 1 year before we change anything so we can see that we can handle it. And yeah, you should look on the, uh, EBIT margin, uh, over a full financial year. So you have all the quarters, you have historically had slightly— I mean, Q1, Q2, Q3 has typically higher margins than compared to Q4, where you have a higher campaigns, for example. really Yeah, yeah, for sure. Okay, so we'll stay tuned on that question then. I can do— I'll do a final question and then I'll let the other analysts that I jumped before ask some questions as well. So my final question here on CapEx. You've guided for €50 to €70 million here in CapEx. You mentioned here— sorry, in your presentation in the beginning as well, but for the first 3 quarters this year, it's only €8 million in total. So that would mean more than €40 million in Q4. Is that correctly assumed? Oh, sorry. For the coming year, I think the guidance for CapEx is for the coming year. We don't see any deviations. So that's for 2027. We have had a very focus on getting Varberg up and running this year, and I think it's natural that you kind of look into the production you have and get that up and running and stability, and you learn about it, and then you evaluate the next step in investing in automation. I think we have kind of reached that, but it takes time. So we will start with the evaluation now, and I think the guidance is correct for 2027. Okay, perfect. Thank you. I'll get back to Line. The next question comes from Johan Fred from SEB. Please go ahead. Good morning, guys. Can you hear me now? Yes, we're very happy to be able to hear you as well. the price mix tilt towards higher-ticket Rx articles? And how sustainable is the Rx growth rate going into '27? Yeah, me as well. Thank you for taking my question. On the Rx growth, a strong 19% here in Q3, what's driving the strong growth in Rx specifically? Is it volume or is it I mean, it's driven both by volume but also these more expensive medicines like Shield products. Some of them are really expensive. But in general, it's driven by a big demand in the market. And I think we absolutely can continue because we have a lot of projects in the pipeline. with, uh, to improve our, our sales. So absolutely. Got it. Very clear. Thank you. And a follow-up on the question on gross margin here. The Rx growth likely puts some pressure on the gross margin and percentage-wise, but, but can you help us sort of break down or understand the decline in gross margin year-on-year? How much was driven by mix, channel mix versus pricing or promotional activity? series of, um, like marketing contributions, uh, private labels, and, uh, and we can do better in purchasing and so on. Simon, we have one movement that declined the gross margin and one that raised it. So try to keep it stable. Yeah, I mean, overall you have, uh, Rx, as we have said before, has a lower gross margin than non-Rx. So that's— that has of course an impact on the gross margin, which then, um, if that was— but I mean, it's more or less is fairly stable, as I pointed out, uh, as I— as we see it. Then it varies, I guess, somewhat between the quarters. Yeah, but we have the opposite with this Yeah, yeah. But so in Q3 here, it was mostly mix from higher Rx sales rather than sort of price investments. Yeah, um, I mean, we raise and lower prices every day, but in general we say that we want to have a really stable gross margin and we will continue to have that. Cool, got it. And a question on Vareby then, now handling around 40% of Paracel. Given the different types of orders handled at Vareberg and Mora and Gåva, how should we think about the 40% split? Is this where you want to be long-term, or should we expect Vareberg's share to increase further as the ramp-up progresses? I think in the short run we will probably ramp it up a little bit more, but of course when we grew, I mean, we have a sorting capacity in Vareberg So if we continue to grow, it will go down again. So I think it's not a fixed level and it shall not be a fixed level either. So I think it will go up and down a little bit, but the important thing is to optimize so we get really good cost and efficiency in the total organization. Got it. And one final question before I jump back in the queue again. So on Norway, you've been gradually scaling up the business throughout the year. What have you learned so far in terms of sort of customer demand and also the competitive environment here? And what kind of What do you need to see before stepping up your investments in marketing and sort of accelerating the rollout in Norway? Or should we interpret your comments in Q3 here as as, like, that you are at this stage now? I think, I mean, we started and now we're ramping up and we see a really good answer from the market. So I think in the coming year that we will have a contribution from Norway, absolutely. And I see a huge potential. I think we need to come back with exact figures what we have, what we believe, but we absolutely have a good belief. I think we can also say that we're constantly improving the service to the Norwegian markets. I think we want to also have a very, very strong offering when we kind of make the marketing activities. wider level, I think. So each day I think the contribute— or each day the offering in Norway becomes better. So we're trying to get to a very, very high level, of course. Sorry, just final follow-up on that topic, sort of building on Victor's question here earlier. Is this the investment in Norway? Could that be something that you sort of account for in terms of your margin target, and sort of we can expect a heavier investment period in marketing and positioning in Norway that could essentially keep you in the 3% to 5% margin range coming quarters? In general, you can say that it's quite high prices in Norway. Norway has a very efficient setup, of course, since we're distributing from the fully automated fulfillment center in Varberg. And as Per said, it's It's also, I mean, okay price levels in Norway. I think I just want to reiterate, I think, yes, it's It's a very interesting market, a very promising launch, and then at the same time we're all also very humble that, I mean, we're in the beginning of this ramp-up. It's, it's a What matters is growth in millions of kroner rather than in percentage. So it's going well. Thank you. I'll, I'll let Benjamin ask a few more questions. Thank you for taking the time. Thank you. Thank you. The next question comes from Benjamin Wahlstedt from ABG SE. Please go ahead. Hello. A couple of questions from me as well. First of all, maybe your headcount is down some 45 FTEs year on year roughly. Are these implicitly replaced by automation, or what has happened here? Um, of course we try to improve all the time, but it also depends a little bit on how many consultants you have, how you calculate. So, um, but of course, I mean, we try to improve our efficiency all the time. Perfect. I was wondering as well if you could break down the external OpEx ratio saving for us a bit. Specifically, perhaps if you could comment on the marketing ratio, whether that changed materially. We have overall a fairly stable marketing ratio in, in relation to, uh, to sales, and then we don't break that out in terms of numbers, but it's, uh, it's, it's, it's stable, uh, more or less from quarter to quarter and year to date and compared to last year, etc. It goes down a little bit year over year. I mean, we try to— yeah, but in percentage it goes down. Yeah. But in millions of Swedish kronor, it goes up. So, so we try to increase it a little bit every year, but as a percentage of the revenues, it goes a little bit down. Yeah, study. Yeah, that's great. All right, maybe final question from my end as well, and we're back to talking about the 3 to 5% margin target. On rough calculations, you could report a 1 percentage point lower margin in Q4 than Q3 and still hit the 5% margin for the full year. Of course, you highlight higher campaign pressure in Q4 as sort of the reason for your caution, which leads me to the question, How do you think we should think about the Q4 '25 comparable? Do you think it's a reasonable benchmark for typical Q4 gross margins, or was it sort of a one-off soft gross margin outcome back then? Yeah, I can start and you can fill in. 2025 was not a good year for us during Q4 because we had some problems. But if you look in a like '24, '23, and so on, we have had a little bit lower— I mean, Q4 is a weak quarter, but it was extra weak last year. So I think we shall have and try to have a normal Q4 this year? Yeah, I think, I think, I mean, we were, we had a significantly lower EBIT margin Q4 last year compared to previous Q4s. So I don't think that's a representative benchmark. Um, absolutely. No, and I guess that's sort of my point here as well. Like, of course, campaign pressure is one thing, but then driving these campaigns to also get scale on on your fixed cost base. So why is it that you implicitly sort of guide for a significant margin downturn into Q4? We don't have a guidance for specific EBIT margin in Q4, and what we've tried to say with the, the, um, the financial targets is that we want to deliver, uh, for a full financial year. We want to capture in all quarters and all seasonalities, and then it's— that becomes a question for after that. So kind of deliver first rather than— yeah, deliver first. Förr att överdelivera. Ja, det är alltid bäst, inte sant? Tack så mycket. Det var allt jag hade för nu. Thank you. Thank you. The next question comes from Victor Hansen from DNB Carnegie. Please go ahead. Välkommen tillbaka, Victor. Hello. Yes, thank you. Thank you, Johan. A couple of follow-up questions. Firstly, it's private labels. I believe it was last quarter you said it was above $100 million. It's, it's, uh, we don't, we don't split out the, uh, own, uh, the private label, the own products, uh, in presented, but it continues to have a strong growth, um, and, uh, The number of SKUs in own products are fairly, I mean, it's fairly stable. It's about 400 products. I think we will probably continue to be around 400 because now we have a good portfolio of private label, and now we will rather improve them than add a lot of more products. Perfect. And then Norway, could you remind us how much of your sales is Norway currently? We haven't split out Norway, and when it comes to— we haven't split that out on a quarterly basis. No, it's— but Norway, I mean, apotea.no and our pharmacy business in Norway, Apotea, are growing nicely. Yes. And will continue to grow. Yeah, great. At the IPO for Norway, at the IPO, I believe it was about 2% of your sales. So maybe a slightly little bit more now. If that's fine. I mean, Norway as a whole grows higher than Sweden. So yes, it will increase over time, increase in percentage of sales. And I think during next year, we can probably come back with better figures for you. When it's more significant. Yeah, it needs to be a bit more relevant as a whole before that. Perfect. Another follow-up on Norway. Some previous comments that you made a couple quarters ago or maybe it was even longer, you said that Norway was slightly below breakeven, but that was for Apotea, not for apotea.no, that Of course, it's fulfilled from Varberg. So yeah, so now it should— Norway as a whole should be profitable, correct? Yeah, and the point of Norway, of course we want to be— I mean, we want to grow, we want to do that long-term and sustainable way, be profitable there, but But during this kind of ramp-up phase in Norway, the overall message is to kind of be breakeven or slightly positive rather than kind of maximizing on the EBIT level. So we have no— if that makes sense. But the setup for apotea.no is very good because we can use spare capacity in Varberg to send products to Norway, and so the cost profile for that is very good. Yeah. Great. And it's roughly 4 hours by truck to Oslo, so relatively close. Yeah. Great. Okay, a final question then. Another question on marketing. So you have a strong margin, you could afford more marketing. Why aren't you doing it? Are your returns not good enough for more marketing to be worth it? I know you don't do much performance marketing. It's mostly higher end of the funnel, building the brand, but aren't you considering doing more marketing to accelerate growth and fill your warehouses even more? And we look at different— sorry. Once you add the customers to try Apotea, they seem to be quite sticky as well. Just wanted to add that. Yeah, and we try to find profitable marketing, as is the same as with investments. And if we find something that we think is good for us, we do it. So it's not that we're holding back, but we also need to find profitable marketing that we think is good for us. Okay, perfect. Yeah, that's all from me. Thank you very much. Thank you. The next question comes from Johan Fred from SEB. Please go ahead. Yes, thank you for taking a few follow-up questions from my side. So on the working capital, in the presentation you stated that this was related to timing, which of course makes sense, but But just to follow up here, has there been any changes to your supplier terms, or is there any trade-off between payment terms and purchasing price, for example? I.e., could some of the working capital movement also be reflected in the margins? No, we— I mean, we have stable— if you talk about account payables or debt to suppliers and such, I mean, we have stable terms with them in terms of stable terms. So it's, if that was your question, we are improving them over time. Yes, so no sort of trade-off between shorter payment times and then better or more discounts from suppliers then? No, I mean— No, not really. No, and then we have a lot of suppliers who will always be a kind of a little bit kind of in the commercial agreements for each and every supplier. This is part of that discussion, of course, but by and large stable, and over time we try to be better. Got it. Very clear. And the final one, just to follow up on sort of Q4 last year and going into Black Week, it was obviously quite a challenging period for you last year from a margin perspective. What have you done differently this year to address those issues with inventory allocation between the warehouse and the campaign purchasing, etc.? And how confident are you that you can avoid a similar sort of margining impact in Q4 this year? I mean, we have done so much, but I mean, one example is that the production is much more stable. We have learned a lot. We have different campaigns. We have worked much more with our suppliers and we I mean, all these delivery chains have been so much better this year, and I really hope that we can avoid problems in the future. I mean, we cannot guarantee it, but quite certain that we can. So a lot has changed, so I don't think we shall— yeah, absolutely— be worried about it. No, exactly. But I think as Pär mentioned before, we tried to not do the same mistake twice. Or, uh, but then, then again, I mean, you, you need to have respect for that. Uh, so we'll try to avoid the mistakes that were made last year. Then there are other, of course, challenges all the time. But we, I mean, we try to be constantly improving and we're in much better shape overall than last year. Good, confident. And in terms of sort of overall market campaign activity, are you expecting sort of similar promotional or level of promotional intensity as last year? Yeah, I think in the market in general, it's like a trend that is becoming more and more, and we will probably be similar level as last year. Cool, got it. Those were all my questions. Thank you so much once again for taking the time. Thank you. Perfect. Thank you very much, and thank you for listening in to the presentation, and thank you for your patience in the technical issues that we had. I wish you all a pleasant day. Thank you for listening. Thank you.