Alligo AB (publ) ($ALLIGOB)

Good day, and thank you for standing by. Welcome to Alligo Interim Report Q1 2026 Conference Call and Webcast. [Operator Instructions] Please note that today's conference is being recorded. I would now like to turn the conference over to your speaker, Mr. Clein Ullenvik. CEO. Please go ahead, sir.

Thank you, Ross. Welcome to Alligo Q1 Report 2026. This is my 51st quarterly report and my last. Presenters are, as always, Irene Wisenborn Bellander, our brilliant CFO and Deputy CEO; and myself, Clein Ullenvik, CEO. As always, we keep the presentation fairly short. You can read most of it on your own. And we have, as you know, some specific topics. This time, it's actually 3 specific topics: Welding, Orebro logistics expansion and Tools Finland. So this is Alligo. Yes, we are getting closer slowly, slowly to SEK 10 billion turnover, Sweden being the largest country, 2,400, a little shy of 2,500 employees. and 240 stores approximately. And we have a little less than 20% of own brands. It's 18% now. And as we acquire companies, that figure is being diluted a little bit. So then you have to start picking up again. But it's 18% as it is today. But in the quarter, all countries increased their share of own brands. The integrated business is -- we normally say it's 80%, but it's actually 79% this quarter. And that part of our business is fully integrated, ERP, logistics, finance, HR, everything it's fully, fully, fully integrated, and we make acquisitions in that part, but then you are always fully integrated. And then we have our other parts, which is the nonintegrated companies, group of companies, which today amounts to 21% of our sales. So it's Product Media, 17, 18 companies, Welding, which now are up on 8 after last week's 2 acquisitions, our wonderful Batterilagret and some other companies where we normally highlight HTP being a big and very profitable part of those. Highlights in Q1, our macroeconomics, it's hard for anybody to get away from all this flow of information what's happening. And we are not affected directly. We can see price increases, but we are very limited affected. But of course, it could affect the market situation if interest rates are increased or the trust for the future is getting down, so the consumption goes down, then, of course, we will be affected as well. But we, as a team, are unfortunately in one sense or luckily in another sense, well trained in maneuvering in tough conditions. We've built this entire group, Alligo, in extremely tough environment, starting our journey with COVID and then freight disasters and super inflation and currency turbulence. So we are, unfortunately, in a way, very used to navigating an uncertain and tough environment. Delivery capacity is good and stable, all central warehouses and all those flows are working nicely. So Q1 in brief, revenue 5.6% up. It should have been 7.5% if the NOK and the euro hasn't affected us negatively. What is especially good is that the organic growth is 4.9%. I would have hoped it would have been 5.0%. It is actually 4.92%. [indiscernible] from rounding it to 5. But it is what it is. Cash flow, it's a weak quarter normally. We had minus SEK 38 million last year. We have plus SEK 209 million this year. Adjusted EBITDA, up 53% from SEK 74 million to SEK 113 million, a good jump. So the adjusted EBITDA margin goes from 3.3% to 4.8% and the gross margin is stable. Highlights. We have been pushing for sales like forever, and we continue to push for sales. And as long as there is a market to fight for, we will fight in that market. And I think we can -- in parts of our organization, see already now that we -- that gives results for sure. We are very good at managing price, and that's also good to know if there will be price increases following this Mid East turmoil. And we increased the share of all brands in all 3 countries. Sustainability, I think we mentioned it already last time, as we are awarded Platinum by EcoVadis, puts us top 1% of all the companies, 50,000 companies, I think, around the world. And that's very good for us when we tender to larger customers to the defense sector and so forth. And operationally, the new bank agreement refinancing is in place, sales assortment. We are developing continuously capital efficiency, you can see in the cash flow is well underway. And yesterday, we decided to actually buy the neighbor plot a lot in Orebro and to start building there. So update. Welding, just to show on a map that they are becoming quite a few of them now 8, 2 of them in Finland and the rest in Sweden. And we are very proud of this group. There are more to be acquired, but we already have a good foothold in Sweden relating to welding. So SEK 450 million and plus 100 employees. And it's good also when we -- more and more going forward, we'll be able to even through those businesses offer things we have. We have the smart service solution. We have workplace equipment. We have other things that the welding customers could need. So we will boost also those companies with offers we have. And also ReCare, of course, could be offered to the welding companies' customers in that sense. Logistics expansion in Orebro could feel -- why do you talk about that, but it's more important than it feels. In our central warehouse in Orebro, we have a road on 2 sides of our building. There were 2 free plots on either of the remaining 2 sites originally. And we -- some years back, we bought one of them when we did the last -- latest expansion. And for the last 12 years, I've been looking at the bigger plot, which our neighbor had had an option to buy for many, many years. But it's important for us to buy that to keep all those open for expansion. So for anybody else to build something there and lock us up would not be good. So we have been having long discussions with Orebro municipality, and we have come to a conclusion that we can buy that plot and we will -- and it's 40,000 square meters, and we will build an extension to our central warehouse because last time we extended our central warehouse, we actually did that after the acquisition of [indiscernible]. And after that, we already included the tools business. So we have 1 extension behind in a way. But it's a limited investment, super good to have all doors open for the future, logistic-wise. Orebro is a Nordic hub. It's not only for Sweden. It's very much of a Nordic hub for us logistically. And that's just the picture, how it will be, and it's plenty of space for future expansion. So we will need to grow and acquire a lot to fill up the remaining square meters where we could build. Finland, it's running very nicely, even a little bit ahead of time schedule actually. 40-plus persons have left us. We have closed a couple of shops. We are phasing out 2 reasonably fair sized customers. But still, we have an organic growth in the quarter of 11.1%. So the Finnish team with Hakan at the helm is doing a brilliant job, and they also had a good EBITDA development in the quarter. So it looks good and stable in the Finnish business. Financials, now?

Yes. Thank you. And as Clein mentioned, the Q1 result exceeded last year's and cash flow improved, leading to reduced leverage. Additionally, stabilized demand across all markets and the impact of cold winter weather at the beginning of the year contributed to organic growth. Revenue increased by 5.6% in the quarter, driven by organic growth of 4.9% and growth from acquisitions of 2.5% contracted by negative FX effect. We had organic growth across all countries, and our store sales benefited from the cold and snowy winter weather. EBITDA reached SEK 113 million, representing an improvement of SEK 39 million or plus 53% and the increase was due to improved results in all 3 countries and was driven by higher volumes, cost reduction, and contributions from acquired businesses. The gross margin remained stable compared to last year as positive and negative factors offset each other. For instance, the increase in sales of our own brands and lower purchase cost in U.S. dollars contributed to improving margins. On the other hand, a higher share of sales from the nonintegrated business, which has structurally lower gross margin, along with customer mix effects within the integrated business negatively impacted the overall gross margin. And this is a busy slide. But as you can see, Sweden has the highest share of SMEs and own brands, followed by Norway, while Finland has the lowest. And this directly correlates with the profitability in each market. The higher the shares, the greater the profitability. And the lower gray boxes show the share of own brands within the integrated business. And as shown, this share has increased across all countries, driven by a 15% increase in workwear and PPE sales on group level, which positively impacted the trading gross margin. Moving on to some highlights of each market development in Q1. Starting with Sweden, you can -- there we had revenues that increased by 10%, driven by both organic and acquired growth. Organic growth is driven by both an increase in store sales, primarily of winter-related products and growth in direct sales. And the increase in direct sales is related to both larger customers in the manufacturing industry and project orders to the defense industry. And the improvement in EBITDA is due to higher volumes, cost savings and contributions from the acquired companies. Organic growth in Norway was driven by increased sales of workwear and PPE in stores, while direct sales were flat overall, but declined in the oil and gas segment, which started to slow down in the second half of 2025. EBITDA improved due to higher volumes and cost reductions. And when it comes to Finland, sales continue to recover among larger industrial customers, which balances the 2 larger customer relationships being phased out. And as Clein mentioned, the efficiency program in Finland is progressing as planned, and the improved result in the quarter is due to higher volumes and cost savings. Operating cash flow improved from last year, driven by higher EBITDA, lower income taxes paid and lower inventory levels for our own brands following the strong sales of workwear and PPE in the quarter. Even if the capital efficiency project contributed to positive effects in Q1, there is still more work to do. We aim to reduce net working capital as a percentage of sales from the current 28% to 24%, which was the level in 2022. And when it comes to investing activities in the quarter, it relates to organic investments, which were lower than last year, and the CapEx to depreciation ratio was 0.7% on a rolling 12-month basis. And we didn't finalize any acquisitions during the quarter. However, we completed the acquisition of Batterilagret in February last year. During Q1, leverage continued to decrease due to the improved EBITDA and cash flow and the net debt-to-EBITDA ratio decreased from 2.5x at year-end to 2.2, which is well within the financial target range. We refinanced the business during Q1 and increased the sustainability-linked facility by SEK 500 million, bringing it to SEK 3.1 billion. And the new facility runs until February 2029 with the option to extend twice for 1 year each. Available cash and unutilized credit facilities totaled nearly SEK 2 billion at the end of Q1. Covenants related to interest coverage and equity asset ratios, and these are fulfilled at the end of the period, and there is good headroom before reaching the threshold. So in summary, we have a strong financial position, and we will continue to invest in organic growth, such as the upcoming central warehouse expansion and of course, continue to acquire well-run businesses. Handing over to you, Clein, for summary and outlook.

Super. Thank you, Irene. So Q1 in summary, a strong quarter, a little bit of help from -- at the beginning of the quarter from the weather. And we have efficiency programs. So we have had that throughout the group. As you all know, we have plan B, plan C, plan D. So we have been very cost cautious, and we've been very early on taking necessary grip to adjust our cost base. And now at the latest, we are focusing very much on Finland. So we are happy with the organic growth. We are happy with the result development. We are happy with the cash flow, and it's also that it's throughout all the countries. That is what makes us especially happy. It's not one country doing extremely well and others not. So an outlook, the million-dollar question, how does it look going forward? But we have proven, I think you can agree on that we can both grow, but we can also improve profitability also in an uncertain market. So we are so fine-tuned and at such a low cost base and have such a strong offer. So with our financial position, our customer offer and what we have done with Alligo Group, I'm convinced we are in a very, very good place going forward to whatever market conditions there will be. Very good. So handing back to you, Ross.

[Operator Instructions] We are now going to proceed with our first question and the questions come from the line of Emanuel Jansson from Danske Bank.

I hope you can hear me. Very fun to see that the organic growth trends continues and also, of course, also same thing in this quarter. But I wonder if you perhaps could elaborate a bit on the market condition between the regions and perhaps also can elaborate a bit on the trend during the quarter between the months. I assume that January was quite strong, as you mentioned, with cold winter weather, et cetera.

No, exactly. I can start with the last question. And for sure, it started strong. And if I were to write a script of how I'd like the weather to be, it would have been like -- very much like it was in January. On the other hand, as I said, in many different places, if this would have been a couple of years back, then we would have sold extremely much. But the -- in a slower market, the customer tends to buy exactly what they need. So if your start battery is out, then you're going to buy a new start battery. A couple of years ago, the customer would have bought winter boots, winter jacket and diesel warming equipment, but they bought exactly. So we could see in January, battery sales were up 55%. Hydraulic sales were up, all winter-related gears were up. And it was -- so we had a good start of the year, of course. So the better start in January and a slower start at the end, but still okay. So winter helped us, but not as much as it would have done some years back. Looking region for region, if we start from the East, Finland has tough market conditions as it is. It's also predicted to pick up GDP-wise and construction-wise later than Norway and Sweden. But we, as you saw, are growing 11.1% organically despite the fact that we are phasing out 2 reasonably large customers. So we are doing it good in Finland, growing much more than the market is growing. Norway, we have a lot of initiatives, especially focusing on the construction sector. And construction sector this year and next year, actually, Norway is predicted to grow quite a lot. And then we have a stable position in oil and gas. And as we mentioned many times, [indiscernible] just did, the oil and gas sector has been slow a couple of quarters now, but we don't predict it to continue to be slow, looking at oil prices and other things and gas prices. And Sweden is stability. Our position is super strong. It's a good spirit in our sales team. I think we can do a lot with what it's already there, I think this continues to grow. And also Sweden is predicted to have the highest GDP growth this year. And as you know, the best thing for us to correlate against is the GDP development. So if the GDP goes up, our sales normally go up. So Sweden is from a different KPIs perspective, inflation, construction and GDP is looking good going forward. So hopefully, nothing else happens in the world. So those are being revised, but it is looking good going forward.

And perhaps looking a bit into Q2 then, I assume that this quarter is not as weather dependent as Q1. And do you think it is reasonable to assume that you could keep up this organic growth pace from a sequential point of view? Or the weather was quite good for you in January, if you understand what I mean?

I have to promise the 5% organic growth in Q2. That I don't want to do even if I'm not responsible for Q2. I am for the 2 first months, but not the last month. No, that will be high. But we are fully committed to continue this organic growth track and do whatever possible to continue that. But to promise 5%, that will be steep. And as you say, it's not as weather dependent. But having said that, of course, we like the spring to kick in. I mean, we have forestry, agriculture customer segments who are dependent on, of course, that the weather is better. So -- but it's absolutely not, as you mentioned, in the winter side, of course.

Yes, totally understand. We will not expect 5% perhaps. And looking at Norway and just looking at the integrated business, I have noticed that the share of private label is expanding about 6 percentage points year-over-year. Could you perhaps maybe explain a bit behind that increase?

It feels like we've been struggling a lot, and it feels like it's happening a lot now. Obviously, we need to talk about it several years before things start happening. So especially -- and it feels like it's much more focused on workwear, which has, of course, the highest own brand percentage. But it feels like the willingness to grow the own brands are higher in all parts of the organization. Absolutely.

And you also see an effect from the cold winter weather in -- not only in Sweden, you can see that effect in Norway and Finland as well, and that drives the increased share of own brands.

Positive mix effect.

Yes.

Perfect. That's very clear. And looking then at the non-integrated business, is it possible to give out the profitability levels that we are seeing there? And are we also seeing organic growth in that business?

We haven't communicated group by group, but it's -- we follow the industry indexes for them each, and they are in line or better. We can follow 2 different industry indexes for the Product Media Group. The welding industry -- welding bunch of companies, we can follow indexes, and we can also follow how they do in relation to our integrated businesses, welding sales. Mercus is being measured against the workwear sales in the integrated businesses. So they are developing nicely. We don't have them to bring down the result levels that they, of course, should benefit or should improve the average EBITDA for the group, if I express myself like that.

Perfect. And looking at the expansion of the warehouse, limited investment, I think you mentioned in the presentation. What should we expect in terms of CapEx in the coming years from these investments?

I don't know if we have said if we should communicate it or not, but it's actually -- it can be handled within our normal CapEx.

Yes.

So it's...

Over 2 years, actually. So 2027 and 2028, it will be handled under a normal CapEx level.

Yes. So it's not a super expensive project. But it will -- already first stage will improve logistic processes, and we have ensured that we have expansion possibilities going forward. That is super important.

Perfect. And I don't recall if I gave you this question last time, Clein, but looking back at your journey as CEO, what are you most proud of having achieved? And is there anything that has surprised you about the company's resilience or growth along the way?

I'm not surprised, but again and again and again, you can realize how -- what you can achieve working together. So people would be one word. If you have a reasonably clear target where you're heading, we pull in the reasonably same direction what is possible to achieve in extreme tough conditions in a public environment. I mean doing this, as you know, has been a super challenge, and it would have been without having to present quarterly what we are doing. So I'm almost surprised that it was possible to do considering the environment we did it in. And what I'm surprised as your second question was is -- and I think you mentioned the word actually resilience. We have made analysis 2020 and 2021, what would happen to this group. You do that, of course, normally if you lose this much on top line. But to be able to mitigate market decline to the extent that we have done, and of course, we have been hit result-wise, but to deliver what we have done under these circumstances with such a newly built group of companies that is actually surprising. I have to use the word surprising to that part.

I agree on that. And I thank you all, Clein, and on a final note, congratulations on a strong final quarter, and thank you for -- thank you for having us here in the financial markets with Alligo and all the best for the future, and it's been great working with you, Clein.

[Operator Instructions] We are now going to proceed with our next question, and our next question comes from the line of Albin Barnevik from ABG Sundal Collier.

This is Albin from ABG. Perhaps returning a bit on the previous question regarding the solid organic growth in the quarter, you mentioned that defense project orders have been an important driver behind this. Do you consider this growth to be structural? Or how do you see us extrapolating this growth forward at this point in time?

Generally, it's a good growth, but let's be clear, we were helped by the weather in the beginning of the quarter. That helped us. On the other hand, we have other things in the future, which will help the growth of Alligo, which has also the defense sector and so forth. So we have good growth opportunities and the different initiatives we are running, ReCare, especially ReCare is developing nicely. But as I said earlier, we cannot promise the coming quarter at least not -- promise a 5% organic growth, but we are fully dedicated to continue to deliver organic growth for sure.

All right. That's clear. And yes, it was good also to see the positive development in Finland with ongoing efficiency projects seeming to pay dividends here. What are your remaining objectives to do in Finland? Can we expect more store closures, for instance? Or -- and also, how should we think about the profitability in the segment for the remainder of the year?

No, we constantly look at all our shops, if it's Sweden, Finland or Norway, but especially in Finland these days. And the most obvious ones have been closed. There could be a couple that we could co-locate. There could be some acquisitions we have made that's in the same city that we could co-locate. But that's more the the daily operational work. What we're focusing very much in Finland now is on the gross margin side, taking the discussions with the customers. If you look at customer satisfaction index is extremely high in Finland. So the customers are dependent on us, and they very much enjoy working with us, but we see a very bad margin. So we see potential to increase -- to get better paid for what we're doing in short terms. So that's the focus now. So from a cost perspective, mostly done. The planned shop closures has been done. Now it's managing sales and margins.

All right. Yes, I understand. Because the efficiency project doesn't seem to affect the organic growth as it was really strong in the quarter in Finland. How should we think about that dynamic?

We have a lot of ongoing initiatives. We have been lucky in some cases. I mean, we were lucky having a couple of customers who didn't want to pay for the services we delivered. So they are being phased out. That was the unlucky part. But the lucky part is that we have customers that are growing today because the Finnish market is not growing by 11%, that's for sure. So we are doing a good job. We are getting more and more from a few customers, but also generally. So -- but the market is not at all picking up in this space.

We are now going to proceed with our next question. And the questions come from the line of Karl-Johan Bonnevier from DNB Carnegie.

Just continue on Finland. I think it's an interesting subject. And when you look -- you presented a big to-do list here a couple of quarters back and when you were at -- were at a slightly weaker point than you are now. What of those things that were on that to-do list do you feel is now the big contributors? And what might still be on that list that is still to come?

We have done the organizational changes. We have planned it many times, and we have decided to do it many times in Finland. But for some reasons, never been really, really executed. That has been executed now. So that has ticked off. We are looking at store profitability in a totally different way than we've ever done in Finland that has been ticked off. So a couple of shops have been closed and the other ones we are focusing on developing. And now as I said, it's very much on the sales side. So I'm impressed by the pace and the -- how clear they've been on what to do and to do it in Finland. So the execution has been very, very good. Now it's more of operational efficiency, getting price increases through, getting paid for the services we do. We have a history, which goes decades back where we have probably overserved our customers. Again, looking at the customer survey, we can see that they are super happy with us. And of course, they are, if they're getting super service, we are not getting paid for it to the extent that we should. So very much on the fine-tuning and continue to do the operational homework.

So it sounds more like the same kind of to-do list like you probably have in Sweden all the time and Norway all the time.

Absolutely.

Excellent. And when you look at your strong winter goods sales here in the start of the quarter, were you able to basically sell out of the inventory you had or so you are now going into, say, a full replenishment going into the next season?

No, we have a [ reelection ]. That's taking that into full account. But we did sell out of some products, but we always have a different brand. If one brand is sold out, we can always solve the customers' need. So it's not with the brand they thought when they went into the shop, we can solve their need with another brand. But it was actual diesel heaters and snow removing equipment sold like crazy a couple of weeks in January. And that was a very long time ago since we saw that happening. I think the [indiscernible] shop have had some diesel warming equipment over summer, 2, 3 years. And finally, they were sold. So -- but our systems are taking that into account. But it's a huge risk, as you said, otherwise, that we buy a lot and then it will be a mild winter next time and then we are overstocked. But I think it's very limited risk.

And when you look at -- you mentioned when you talked about the geopolitical situation, do you feel that you get the products home from Asia that you are looking for and you are having, say, inventory that you need to serve maybe a slightly stronger market going forward?

Absolutely. And I said at the Board meeting yesterday, last night, if something as terrible as this should -- is happening, then it happened at a good time where we have all the season products already at home. It's quite a while until we get the next season products on our way. Polyester and plastic-related material, oil-based materials are going up price-wise. We already bought the fabrics for winter gear and partly for spring year 2027. So if something terrible should happen, it happened at least at a good time. So, so far, we are limited affected that if prices were to increase, I think we all can agree on that. Historically, we've been very successful on pushing that forward, and we will do that, of course, this time as well.

Yes. And I guess you then don't really have a lot of things in inventory where you have the price adjustment kind of need if you're putting it like that. So if it's fresh goods coming in, in that respect.

Exactly.

On your comments on further -- finding further acquisitions in the welding market now getting up to SEK 450 million in revenue. What kind of market share do you think that represents when you're looking at the segment as you define it?

It's a very good question, and we have been looking at that. We actually have external help trying to define that. We actually talk about ourselves as a leader, but God knows, we are a big player. We realize that when we do negotiations with the suppliers, then you really understand if we are forced to count on or not. But we don't have the actual market share figure. But we are -- if you take the integrated businesses together with the stand-alone businesses, we have a very decent share of the welding market. That's for sure.

And when you look at the pipeline of potential further transaction, finding more, say, white spots being covered in that segment, is there a lot of potential transactions still to do there? Or are we now looking at a more mature situation?

We have actually -- we have done a consolidation race. So Alligo has consolidated that. We bought the second biggest player in Sweden, and then we have handpicked 7 other businesses, which met our criteria in profitability, ability to grow and so forth. So of course, there are more to be done. It's not that all complete, but the biggest step is already taken. And we have more to do with the group that we have synergy-wise, focus on more of a common assortment to learn from each other, make use of other offers we have in the group, as I said, the Smart Service Solution, workplace equipment, ReCare and so forth. So that group will develop nicely going forward.

Yes. On ReCare, can you communicate any customer wins to see that, that build is starting to gear up?

Absolutely. I get text messages every day. So Jenny, who is heading that, she normally texts me when she's won customers. And as I've said before, it takes a while before it's visible. You win the customer, they sometimes have a similar solution with somebody else, and that needs to run out first. So it has a long time before it really kicks in. But I also said in a number of years to the management of Alligo, you will be asking questions very much on ReCare because that will be a significant part of the Alligo story. I'm 100% convinced.

But there to talk about any sort of backlog in that business or anything like that?

We have -- I don't know if we have signed 20 customers now, perhaps. We had 10, 11 earlier, but they are -- I mean it doesn't sound much, but they need to be pretty big. I mean it's not a 5-employee business that wants to have a ReCare solution, you should be 100, 200 plus. But every time she is out presenting and she gets just a high hit rate.

Good to hear. Good to hear. And Irene, much more of a, say, detailed number crunching question. Looking at the IFRS 16 amortization of lease liabilities in the cash flow statement, jumping around a lot, SEK 65 million in this quarter. Is that some sort of new level? Or is it something particular helping that number in this quarter?

No. I think that's the level that it should be at going forward. But of course, it varies a little bit, but you can see it as a normal level going forward.

Excellent. That's very good for the cash flow. So thank you very much for the good answers, Clein, and all the hard work during the year. I'm looking forward to see you in a couple of Board positions. All the best out there.

There are no further questions on the phone. So I'll hand back to you, Mr. Ullenvik, for the webcast questions. Thank you.

Let's see what we have got on a written question. Specific driven weather effect, was that what you said?

Yes.

What does that mean? The weather effects were, as I said earlier, I interpret the question. I'm not sure if that was intention, but we can see the winter-related assortments picked up just as predicted, stark batteries, hydraulics and winter boots and all those things. But we got limited other sales effects as you normally do in a normal market when the customers come to our shop and buy what they need, they normally buy a lot of other things. We didn't see that. So the specific effects were very much exactly their need. Development of customer basket is affected size. We look at the average receipt in the shops, it has been stable. It's also going up a little bit, but we don't measure basket size in that sense. We have much more to do to make all our customers buy more from us. They could be buying a lot of tools, but not much of workwear and vice versa. So we have more to do to expand sales with the customers we have to sell other assortments that they usually have had. Do we have any other questions? Let me see if I can read. Oh my God, it's a small text. How should one -- can I zoom this now? How should one view looking forward as the ambition -- I can't see. It's blue text on blue background. It's impossible to read. It's better there. It was about M&A, I saw. Yes. Can you summarize it in 5 words.

How should one view Alligo looking forward as the ambition for M&A is increasing? Is the goal to dilute the integrated business over time? If so, is it warranted to view and compare it to other serial acquirers?

Exactly. Over the years, we have been invited to Redeye serial acquirer conferences and meetings. So there have been times where we have bought more companies than actually the ones calling themselves compounders. We haven't been looking at ourselves like that, but we have a platform which offers us good opportunities to make acquisitions, both in the integrated channel where you buy something and you integrate it or in the freestanding businesses where we can add -- like last week, welding businesses, product media businesses, battery or other product areas or competencies. So we have a platform financially resilient and the debt ratio has come down to 2.2 after being actually at 3, as we said we should not go over after the acquisition of Batterilagret. So -- and with our cash generation, it will go down quickly and the headroom and the new bank agreement gives us also good headroom. So financially, there is absolutely no restrictions. The restrictions would be us being prudent in how much we pay for our acquisitions. But acquisitions will, for sure, be a central part going forward. Okay, Ross, anything more from your side? Or should I go for closing remarks?

No further questions on the phone line, sir. So please go ahead with the closing remarks. Thank you.

Lovely, lovely. So I can end this by saying we had a good start 2026 and especially happy to see that it's valid in all 3 countries, improved share of own brands, profitability development. So all developments are there throughout the business, which is a super good signal. I think we have delivered most of what we have said this quarter and over the years, and we even bought this little plot in Orebro, which have been -- it would have been a little bit annoying if we hadn't been able to do that because it is actually important. And we have done our homework with EcoVadis, getting Platinum. So we are rated very high in all these tendering processes. We continue to do acquisitions. So I think we are in a very, very good place for whatever the market conditions will be going forward. All the indicators are pointing towards the direction that should be a better market, but God knows. I normally end these meetings by saying the journey continues. This time, I would say the journey continues, but without me. So thank you for listening in. Thank you for all the support over the years, and take care.

This concludes today's conference call. Thank you all for participating. You may now disconnect your lines. Thank you.