Hello, and welcome to the Duni Group second quarter interim report 2026. Throughout the call, all participants will be in a listen-only mode, and afterwards, there will be a question and answer session. Please note, this call is being recorded. Today, I am pleased to present Robert Dackeskog. You may begin. Thank you. Hi, and welcome to Duni Group's report for Q2. The headline is, it's been a challenging quarter impacted by the ongoing logistic transition. We'll come back to that, of course. If we look at the agenda, we'll go through some highlights and then the key activities in Q2, what we have been doing, a little bit around the market outlook, and of course, the financial performance within both business areas. Looking into our sustainability and our long-term targets as a company. At the end, a little more deeper dive into the financials and the summary, and a Q&A at the end. If we take the headlines here in Q2, of course, logistic transition is the big thing, impacting our sales and operating income in the quarter. Of course, we've done a lot of work here and tried to stabilize during the quarter. We'll come back to that. Positive was that Germany remained stable, and they were unaffected by the transition. We haven't moved those volumes yet to the new warehouse. We continue to work on our strategic priorities with especially Duniform and Lighting in focus. If we look at the logistic transition here and a little bit of background, what we've have done here is that we are creating a new modern logistics setup where before we had 10 warehouses, now we're moving to one warehouse. It's a state-of-the-art distribution center in Meppen, and we have chosen an outsource operation with a logistic partner there. Of course, it will be expected improved scalability here and reduce the long-term cost for us, just thinking around going from 10 to one warehouses, of course. We had some delivery disruptions in the beginning, especially the outbound. Inbound has worked very well. This has resulted in lost sales and increased cost in form of dual inventories and more expensive transport solutions in the quarter. We have delayed the German volumes. We are still delivering them from our old warehouse, and it's been working very well, and we see that we've got good traction in the German market this quarter. The situation has gradually improved during the end of June, but also the first days here of July. Of course, not fully normalized yet. But the reduction of our outstanding back orders now is contributing positively to the earnings and helps offset the remaining inefficiencies that continue to affect operations. If we look in a little bit what kind of activities we have done in the quarter to stabilize is that, as I mentioned, we postponed the German transition. We worked a lot with improved the capacity and efficiency work in the warehouse and the delivery flows, done some small changes that has actually had a great impact now on getting delivery performance up. We are working really tight with our partner here in order to stabilize the operation, which is working at the moment. That is positive. We will come back to this later on in the Q&A here and in the financial run-through. A little bit also, we haven't just worked with this in the quarter. There are some other activities, of course, focusing on one of our strategic areas is that we want to expand our offering through innovation and selective growth initiatives. There we have a completed acquisition of Solserv to the concept Duniform, which then adds service and machines to our concept, which is really great. Also some new launches in packaging products that are really interesting for the market. We had a big launch of Duni Lighting Solutions that was introduced here in Milan and Copenhagen in big fairs. That will now be launched in September, the first step of the Duni Lighting. The one big milestone is also that we've been, first is to actually serve a plastic-free cup then in a lot of major events in Europe. That's also a great achievement in terms of innovation. Other really interesting areas that we mentioned before, of course, is that we're working really hard to turning sustainability into scalable solutions, and we have actually completed our phase out of the PFAS in all products. We launched a Carbon Footprint Calculator that is a big help for our customers, the big ones especially. We have now launched a reuse system in a market in Munich town, and it's a really interesting project now and then really good investment from the municipality in Munich and a lot of other municipalities is looking into this in Germany. We'll see how that works, but it looks very interesting. Of course, also working with Composting and which we've done at Sweden Rock Festival and Vätternrundan bicycle event in Sweden, which also is very interesting, where napkins and packaging turn into Composting and soil in the end. A really great concept. If we look a little bit on the market development, of course, it's been a weak year. We had anticipated a little bit stronger year this year, more visits actually from before the year started. With everything that happens there, of course, in the Middle East, it dampened a bit the market. Especially, I think it's interesting to look at the bottom graph on the right side where you have the restaurants and hotels and the markets, and where actually the conclusion from those numbers is that the VAT now has come down then from 19% to 7%, but it looks like maybe the restaurant hasn't lowered the full scale. There's the difference between -5.5% and almost 2% in nominal terms value then. That's really interesting. In a way, that's pretty good for us in Duni because we want to have restaurants that actually earn money and actually can buy quality products. That's the positive thing, of course. Still, of course, it's a bit of a challenging market, as we know, in most countries in Europe. If we just look at the other slide here, the dynamics overall, the data we get is for the big five markets in Europe. Of course, it's less visits than anticipated, as I said, in those five markets so far this year in the first six months, which then dampens. We believed it was supposed to be 1% + up, but it's -1%. That's maybe the same trend that we've seen in the past quarters now in Europe. Hopefully, of course, it looked a little bit better here with the Ukraine war. We thought it was ending, but now it's back again, and of course, that dampens a bit and creates a lot of uncertainty again. That's maybe the conclusions of that. If we look at the top financial, we'll come back to this. We were a bit down on net sales. Of course, we had a big profit drop of SEK 58 million in operating income. Come back to the logistics that affected that. The margin was, of course, lower than versus last year, 3.6%. Going more into comments. Of course, if net sales and operating income are affected by the same things, sales was down 2% in fixed currencies. Of course, the whole transition where we moved the warehouse in Germany to a new place and started up has really caused problems, of course, and affected both operating income and the net sales. Actually, on the positive side then, actually, the German volumes, they stayed in the old warehouse, which we postponed the move, and there we've seen a really stable sales, so that's positive in that sense that actually then the problems are logistics in the sales markets that are affected. Of course, the Middle East is putting pressure also, and we saw some light there, actually, but then, of course, the last week here has dampened that as well. We have some higher IT and energy costs affecting the operating income, but also we are offsetting that by savings in sales and marketing. Positive is that Food Packaging turned around here and Australia grew slightly, and the income development was more positive and creating better margins. That's the highlights, and now Magnus will go into a little bit more deeper. Thank you, Robert. Good morning, everyone. As usual, I will take you through our two business areas in more detail. I'm starting off with Dining Solutions, our table setting offer. The net sales amounted to SEK 1.045 billion compared to SEK 1.138 billion last year, and that is a decline of SEK 93 million. The single largest explanation is the temporary constrained delivery capacity that we have talked about during the scale-up of our new external logistics setup in Meppen. That meant that we could not fully serve the demand that was actually there. Operating income decreased from SEK 99 million to SEK 31 million, and the operating margin declined to 3% compared to 8.7% last year. I will talk you through the drivers on the next slide. In fixed currencies, sales declined by 6.2%. I want to be clear about the nature of this decline. It is primarily a delivery issue, not a demand issue. The limited outbound capacity during the warehouse transition meant we could not fully meet demand during this period. The clearest evidence of this, as we have mentioned, is Germany. German distribution has not yet moved to the new logistic setup, and Germany delivered a stable development on par with last year in both sales and earnings in an otherwise weak market, we must say, as we saw on the previous page. That contrast with the rest of Europe underlines that the shortfall is transition-related rather than a loss of market position. Beyond logistics, which has dominated, of course, this quarter, I think three factors shaped the quarter. First, we have the mix shift, and that continued. A higher share of sales come from lower priced products. Our customers own brands within HoReCa, and that weighs on the sales value and gross margin. Second, we have the Middle East, and that declined sharply due to the geopolitical situation and reduced travel. We saw some stabilization towards the end of the quarter. Let's see what will happen in the future. Third, on the cost side, we carry double warehouse structures and more expensive transport solutions during the transition, in addition to higher energy costs and rising input prices. To summarize Dining Solutions, it is a quarter dominated by a temporary transition-related delivery constraint with an underlying market position that Germany shows remains intact. The negative effect remains at the start of Q3 but is expected to decrease now gradually as the operations stabilize and consequently, clearly lower negative impact versus outcome in Q2. Turning now to Food Packaging Solutions, our sustainable food packaging offer. Here, the net sales amounted to close to SEK 780 million compared to SEK 746 million last year. Operating income improved from SEK 22 million to SEK 34 million, and operating margin strengthened to 4.3% compared to 3% last year. A quarter of clear profit improvement despite the European logistic headwind, as we also see here. If we look a little bit more on the details, sales grew by 4.3% in fixed currencies, driven by contributions from recently acquired companies and a continued positive development in BioPak Group. In Australia, we see slightly positive organic growth that is supported by a regulatory tailwind from stricter plastic restrictions, but also increased sales to new customers. Europe was negatively impacted by the logistic transition in the same way as Dining Solutions. However, Duniform showed a relatively more resilient development, and that is in line with the previous quarters, where we believe very much in this concept. On profitability, margins improved in both Europe and BioPak Group. In Europe, lower volumes were more than offset by improved margins and a continuous focus on profitability. BioPak delivers a strong gross contribution, supported by both the sales growth and improved margins, but also higher indirect costs absorb part of that effect. All in all, the net impact on earnings was clearly positive. As Robert mentioned, during the quarter, we also completed the acquisition of Solserv. It's consolidated from 1st of April. As a company, we're at around SEK 50 million in annual revenue. That strengthens the Duniform offering with machines, service capacity, and of course, an established customer base. That takes Duniform a clear step into the industrial segment in Sweden, but also in Nordics. If we summarize Food Packaging Solutions, continued top-line growth, improved margins, and a strengthened platform through Solserv. The rolling 12 months profitability trend continues to move in the right direction. With that, I hand back to Robert. All right. Yeah. Just to remind ourselves here is that despite all the struggles with the logistics at the moment, we have an aim for the future, a mission to become a trusted sustainability leader. I think that the main thing for Duni here is that we are enabling people to enjoy good food and actually meet in restaurants and actually get the food to their houses and help that today and of course, for generations to come. That's the main thing. We have three strategies, I think going into them is that expanding innovation is important. There, as Magnus was on to, we talked about Duniform here and Lighting are the two ones we're really focusing on now for the coming months here and the years coming. The strengthening our market position in Europe and Asia has been our two focus geographic areas. Asia Pacific has been a bit struggling, of course, especially the Middle East and what that does to Thailand and so on. That is in the long run, we really believe in that, and the middle class in Asia Pacific is growing a lot. That's a very interesting market. What we're working on and why we do the logistics move is that we need to enhance our operational efficiency. We're doing shorter things there and long-term things. Our ESG agenda then adds to this, and we have seven targets that we measure, and if we take the next slide, how it looks at the moment. If we comment on sales growth, which we know it's been a negative sales development over the past 12 months. That is explained, as we talked about quite a lot recently, in general weak market. Now with the logistics situation, that has even further taken that number down, of course. I can mention, and of course, operating margin goes in line with that, and I can mention that the climate target, actually, we have reached that actually already and are down 62% versus the target of -57% versus 2019, which is great. We have a little bit of a higher index now this quarter because we are using a little bit more LPG gas in Skåpafors, our mill. Also great that we have a good traction in suppliers who have signed the Code of Business Conduct and increasing that, and that is actually coming from BioPak Group that have signed more code of conduct contracts with us. That is good progress on those. All right, moving into financials. Thank you, Robert. If we start with the income statement here. Net sales declined by 3.2% in the period and by 2% in fixed currencies, organic growth was -3%. As we said, the delivery constraint from the logistic transition is the single largest factor for this. If we look on the gross margin, it declined to 20.9% from 23.1%. However, the operating gross margin was 21.9%, close to last year. There is a pressure, that comes from lower volumes, the negative mix effect we talked about, and of course, the transition cost that sits in cost of the goods sold, as mentioned previously. On indirect cost, the pattern from previous quarter continues. Selling expenses are contained by the realization of previously announced cost savings in sales and marketing, while we see administrative expenses increased. That is IT costs linked to our own ongoing digital investments, including the ERP program, as we also have mentioned previously. Energy cost also developed negatively in the quarter. Reported EBITDA of SEK 70 million includes a restructuring cost of SEK 33 million. There are two items on this cost for the unutilized part of the new external warehouse in Meppen. We haven't moved everything, as mentioned. There is also an effective efficiency program within sales and admin costs with an expected annual saving of around SEK 30 million full effect, that will be from the fourth quarter. The restructuring is excluded from operating income and reported as items affecting comparability together with acquisition-related amortization, just to be clear. The financial net was SEK -27 million compared to SEK -24 million last year. Two effects to be aware of, several interest rate swaps of favorable levels matured during the period, we have the new Meppen lease carries an annual interest cost of around SEK 28 million. At the end, if you also look on the tax, the year-to-date effective rate is 48.8%. That, of course, looks very high, and it is closer to 30%, excluding prior year adjustments. The mechanics are straightforward. In periods where group profit before tax is close to zero, and when the BioPak Group’s share of profit becomes proportionally larger, that lifts the blended rate of tax. I think we touched upon this a couple of times before. Net income for the quarter was SEK -15 million, and earnings per share to the parent company was SEK -0.44 compared to SEK 1.25 last year. If we move over to the business areas, the slide summaries what we have covered, I think, for the first half year, Dining Solutions at 5.4% operating margin. That is a decline from 8.9%. Food Packaging Solutions improves to 3.4%, and the group is at 4.6%. On rolling 12 months basis, it is now to 6.6%. The gap to our 10% target remains primarily as a function of volumes. That is still a challenge in tough times, and also the branded share of sales, not the structurally weak gross margins or excessive indirect costs. With volume recovery, operational leverage will support margins clearly. In the meantime, we continue to adapt the cost base with new efficiency programs that should underline this. We look a little bit on the cash flow. Operating cash flow in the quarter was positive at SEK 90 million compared to SEK 150 million last year. I think that's a resilient outcome given the earnings dip, supported by a working capital release of SEK 43 million in the quarter. Higher accounts payable and other working capital more than offset build in the receivables. For the first half, operating cash flow was SEK -7 million compared to SEK 43 million last year. The deviation is explained by two factors: lower EBITDA of SEK 245 million versus SEK 307 million, and the higher capital expenditure of SEK 107 million. I want to highlight the inventory discipline that has been a concern actually for us since the pandemic. Despite carrying double stock structures during this transition period, the inventory build up year to date was contained at SEK 32 million. That's an optimization work from the last year, and that I think is now paying off. On a rolling 12 months basis, operating cash flow was SEK 362 million compared to SEK 446 million for the full year 2025, a level we expect to recover as the transition costs subside and earnings normalize. We take the last slide on the financial position. I think the balance sheet reflects two distinct things in the quarter, one structural and one temporary. The structural item, in January, we gained access to the new logistics facility in Meppen, which is recognized as a financial lease of approximately SEK 600 million over 15 years. This is the dominant driver of the increased net debt to SEK 2.5 billion, from SEK 1.6 billion last year at the year-end. It is not an increase in traditional interest-bearing debt. It reflects a long-term capacity commitment that secures our delivery structure for many years. Very important for us. The temporary part is the working capital build and the weakening earnings in the quarter, which we expect to normalize again, as mentioned, when the logistics situation stabilizes. On financing, I can comment a little bit on that. We have strengthened the structure during the period. In March, I think already communicated, we signed a new long-term revolving credit facility, EUR 200 million, with a three plus one plus one year tenure. As of now, end of the quarter, the facility is sustainable as well. In June, we also converted the existing EUR 200 million loan with Svensk Exportkredit into a three-year facility of EUR 25 million. Together, I think this gives us a robust and also a diversified financing platform throughout the transition period. Finally, I can just mention return on capital employed is going down. We focus very much on this year, and of course, it reflects the earnings dip, and again, a figure we expect to recover when the logistics situation normalizes. To summarize the financial position, the balance sheet has absorbed a major structural investment in our logistics capacity and the temporary operational disturbances in the same quarter. The financing is secured, working capital remains controlled, I must say, outside the transition effect, and the leverage increase is explained and should be understood and expected to reverse direction as earnings recover. Thank you for listening, going through the numbers, and I now hand back to Robert for some concluding remarks. Yes. Just a short summary then. Concluding here that, of course, the quarter has been dominated by the logistics transition then and the performance there. There's been a lot of measures taken in the quarter that actually have supported now a good gradual stabilization, and we've seen the backlog really dropped here in July as well, which is great and following the plan. The implementation of the measures has been positive. We have actually also worked a lot with the strategic initiatives, and despite all this fuss around this and doing progress in especially Lighting and Duniform, which is great. Of course, all focus remains then on the improved profit and the cash flow and our competitiveness in the market with our products. All right. We open up for Q&A. Thank you. If you wish to ask an audio question, please press star one on your telephone keypad. If you wish to withdraw your question, you may press star two. Once again, that is star one for questions and star two to withdraw. Your first question is from Johan Fred from SEB. Your line is now open. Thank you, and good morning, Robert and Magnus. Starting off with a question on the warehouse transition. You state that the situation has essentially gradually improved during July, but still, of course, has not normalized. When do you expect the outbound capacity to be fully normalized? Is there a risk of the excess logistics costs extending into Q4 and offset the potential efficiency savings that you've guided for in the same quarter? Yeah. Thank you for your question. Regarding the state there is that the plan is that the backlog then will end here in end of July, in a way, it will be a normal position. Next phase in that is our German volumes. Those, of course, we want to move as soon as possible, but we will not move them until we are 100% sure that we have a stabilized warehouse and operation. That's the plan for that. Regarding cost, of course, there will be some extra cost here going into Q3 because we haven't moved all the volumes from Bramsche. That will prolong. Of course, it depends on when we move the German volumes. That's the key. The aim is to move it as soon as possible. If we get the right answers here in July now and beginning, and the KPIs are all right, then we can stabilize that maybe a few weeks, then it will go pretty fast. On the other hand, you never know. It could take a bit longer. That's I think. Yeah. Base case is that the German volumes will be moved during Q3 then? Yeah, that's the base case and maybe more mid end because we are already in, of course, mid-July here. Yeah. That's the best case. Got it. A follow-up on the same topic. You stated that the overall financial impact in Q3 is suspected to be significantly less than in Q2. How large was the impact from the logistics disruptions, specifically in Q2? How much is significantly less here, using the Q2 number as a reference point? Magnus here. Valid questions, as we indicate, the deviation we had in Q2 was SEK 50 million versus last year and SEK 50 million-SEK 70 million. We'd state that the majority comes from the logistic cost. I think there are two components in the logistics disturbances. One is the direct cost, where it's more easy to quantify this. We measure it and log every single item here. Then, of course, you can say it was roughly more than half of the deviation from last year, the direct cost. The other component in logistics is the loss of revenue. Part of it is more temporary. We move it forward, backlog, and then it comes back. Part of it is lost. Talking about the number for Q2 and Q3, of course, it is closer to the lower part of what we indicated on the deviation in Q2. When we say significantly less in Q3, we talk about maybe one third or something like that, 20%-30% of the cost as we see now mid-July versus Q2. That gives you a little bit of the span of the cost we're talking about. Hopefully regarding the revenue, once we stabilize the situation, we will also not have an issue with loss of revenue. That will disappear, and that's super important. That's very helpful, Magnus. Thank you. A final question on the mixed shift towards lower price product here. It's been an ongoing headwind and from what I gather, also affecting Q2. Firstly, could you by any chance quantify the impact from negative mix on organic growth in the quarter? Then secondly, do you see this as a cyclical trade-down that potentially could reverse as consumer confidence improve or is this more a permanent repricing of the category in your opinion? I can start with the last question here then. Historically, I think we talked around this before, but I think we also went out actually. We've done some surveys with our customers and especially some who actually have changed then from higher quality to lower. Most of them say that they will go back when times are getting better. I think that's something we really believe in. I think historically that has been the case as well when it's been downturns. That we really believe in. Also more from our side then, everything we do now in our sales force, everything is focusing really hard to help the customers and also really push Profile Print, for example, with the high premium quality that is optimally in there in order to get the customers actually to trade back as well. We have a big focus with our sales force on that as well to help the customers coming back maybe sooner than later. Yeah. Maybe I'll just jump in on the first part of the question you want on the profitability impact of this. It is important for us to sell our brands. It's product that is profitable for us. It's something we work with and something we invest in our machinery park, but also in our whole commercial setup and marketing setup. We invest a lot and we take pride in that. It's also reflected in the gross margin. Just to give you an idea, our brand product is roughly double gross margin than the private label. It is a significant difference. Of course, we bring a lot of value into that we try to convince our customers. There's no question that it's appreciated in the market, but in tough times, we see the challenges. Yes, it has an impact and I'm sure you can do the calculation when you set it up that this mix effect has its hold on it, our P&L. Got it. Thank you so much for taking the time. I will get back in the queue now. Thank you. Thank you. Thank you. Thank you once again. That is star one should you wish to ask a question. Your next question is from Erik Sandstedt from Kepler Cheuvreux. Your line is now open. Hi there. Thanks. Erik Sandstedt here at Kepler Cheuvreux. Just a follow-up question on the answer to the earlier question about logistics. Did I understand it correctly that the significantly lower impact that you refer to in Q3 versus Q2 basically is around one third of the impact you had in Q2? One third of the SEK 50 million-SEK 70 million? You should take the lower part of the SEK 50 million-SEK 70 million because we said the majority of the deviation in Q2 is related to logistics. There are some other components we talked about t hat had a negative impact. It is a lower part, and if you take one third of that, then you get the rough idea. I think it is important to state that this is what we see today. We are in the 14th of July. It is two weeks into. The trends are clearly improving. All the curves are going in the right direction. We will not move, as Robert said, the German volumes until we are dead sure that we can deliver, and we would not disturb anything to our customers again. That means that we would rather take more cost to protect our brand, to protect our delivery performance, than take any risk in this. There is uncertainty related to these numbers I am giving you we should just be aware of. It is correctly understood, yes, Erik. Perfect. Thanks for clarifying. If I understand it correctly, it seems that the logistic disruptions are primarily a Q2 and Q3 issue then, with limited impact in Q4, assuming, of course, that the remaining transition of the German goods is completed successfully. Is that the right way to think about timing? Yeah, I would say so absolutely. Yeah, that's what we think as well. Yeah. Perfect. Thanks. Finally, just on the logistics side, I think you elaborated on it, but how has this impacted your business relationships? You talked about permanent losses of sales and so forth, but what has the customer interactions been? Of course, it's been tough for the customers. They expect good delivery like they always get from Duni historically. It's been tough and, of course, some customers had to find other suppliers, of course, short term. Of course, we need to get them back, of course, then. Most have had delays in their deliveries, I think the main thing for us there is to be very clear, even if it's delayed, when do you get it? That has been a little bit hard in the beginning to sort that out. I think that's maybe put some constraints on the relationship as well, because if you can't answer that, the main problem. I think that's something we now have stabilized, and we are much more in control over that. I think a lot of also customers had their fair share of maybe moves or warehouses. Some are quite understanding as well, but of course they want the product on time. Yeah, we have a long relationship with many, so I hope really that that will be continuing. Yeah. Perfect. Thanks. Just finally on your long-term financial targets, if we assume that the logistics issues are sort of stabilized eventually, what do you see as the biggest obstacles to reaching these targets? The biggest obstacle is the macroeconomic climate as we are dependent to get some that the increase in demand from the market. It is tough to save ourself to 10% target. That should be recognized. We have dropped now, you can see it in the German official numbers, that the number of visits is down 20% before the pandemic. Even a small part of that would be extremely helpful to come back to little bit better numbers. It has been a pretty tough year from a consumer perspective, and we need some help from the market. We know when we get that, we will have a very good operational leverage. That's the good part of being vertically integrated. We get that, but it's also a tough part when the volumes are going down. I would say the market situation needs to improve, and the consumer needs to feel a little bit better and dare to go out and eat. That's number one, I would say. Yeah, makes sense. Finally, actually, could you just share some details on your Middle East exposure? It is limited in the sense of share of Group sales. We're talking about very few percent. Of course, the decline in Q2 and also in Q1 first of year has been dramatic, I would say. Nobody has went over to Dubai or that area, but also we see in Thailand, our factory in Thailand and so on, and all of Asia has been impacted by less traveling overseas. It is a small share of the Group's revenue, but the decline has been dramatic. Yeah. Understand. Perfect. Thank you very much. Thank you. Thank you once again. That is star one should you wish to ask a question. There are no further questions at this time. Please proceed with the closing remarks. Yeah. Thank you everyone for listening in, for great questions as well, and I wish everyone a great summer, and thank you for listening in. Bye. Thank you. This now concludes our presentation. Thank you all for attending. You may now disconnect your lines.