Duell Oyj (DUELL) Earnings Call Transcript & Summary

Good morning, and welcome to Duell's webcast for the 9 months and third quarter 2025 Financial Results Webcast. We have here Magnus Miemois, CEO; and CFO, Caj Malmsten, presenting the highlights of the financial report. My name is Pellervo Hämäläinen from Investor Relations. During the webcast, there's opportunity to send questions from the chat in Finnish and English. And at the end of the presentation, we will come back to the questions in the Q&A session. So I think we are ready to move on. So Magnus and Caj, the stage is yours.

Thank you, Pellervo. Good morning, and welcome also on my behalf. The third quarter is normally the peak season in Duell's financial year. The third quarter that goes from April -- March, April and May. And this is the peak season typically in our full year. Also this year, this was the highest activity of the season so far. However, during the months of March, April and May, we saw a clear change in the dynamics in the market with respect to demand if we compare the first month and particularly the month of May. And this we believe is partly shown up to -- from the point of view that in the early months there in the third quarter, the activity is very much about delivering preorders that were committed -- agreed and committed earlier and it's, let's say, execution phase of those. Whereas in May, the market is more in the hands of so-called daily sales, meaning the -- to which degree consumers are active on the shop floors of our dealers and what type of products and in which regions. So here, we saw a clear shift between, let's say, March, April and May and a change which was not favorable. Nordics, the demand in Nordics is still not developing favorably in our business. And also, we had some activities related to the overall product assortment brand portfolio and some changes in the distribution value chain there in France that also impacted this period. And these dynamics in the market then unfortunately, also impacted the rate of profitability during the period. And we can see overall in the market, and let's say, overall consumer market, also looking at comments and looking at data from overall consumer confidence, this seems to be in this period starting to develop unfavorably in how consumers use their purchase power and to what sort of categories and so forth. When we look a little deal opener look into markets and product categories, we can note that in this type of dynamics in the market, it seems in our view that customers to us, dealers that are playing a broader area. They're serving perhaps a broader array of different types of consumers they seem to have fared a little bit better compared to those who serve consumers very locally. And this has to do with what type of price points with what type -- which regions the activity that it comes from. This is something we note. And of course, in a good part of the Nordics, I'm calling in today from Mustasaari in the, let's say, West Coast of Ostrobothnia, and it's not motorcycle riding weather today. And this -- the fact that we have had an unusually cold early summer has been against the activity of consumers on our dealer shop floors. This is something we can clearly note. On the more positive note, as many of you have picked up from earlier communications, our strategy is to gradually grow the business in Central Europe, where we think the potential is massive for Duell and this success continues also in quarter 3 and more details about that here slightly later. And we can also see that some of the product categories that Duell has continued to grow. The bicycle category has been on a positive note throughout the fiscal year, essentially every month, every quarter. And of course, equally bicycle market peaks in this quarter 3 were essentially everybody that owns a bicycle use them actively in the summer months. Here also a slight change in the month of May, but still on positive growth trajectory. So this is a category that we see with very positive perspective. If I'm allowed to highlight a few activities, a few elements of our business also from a point of view that you get a little bit insight into what is behind the numbers and with a few things to raise here, as usual. As I said, the growth in the Central European market continues. As a matter of fact, Central Europe was the clear star in quarter 3 in Duell's equation. And this is very important for us to continue the strategic efforts, the investments we have done into achieving this, they continue to gradually pay off. As I said, the bicycle category is positive, particularly in the Nordics. You could say the trend of bicycling for various reasons is on a steady positive note. However, of course, we can also here note now recently some possible clouds on the sky with respect to market mechanisms and regimes that have so far had a positive support to this business. And now I'm talking about particularly in Finland, the suggestion to change the bicycle benefit that employers -- many employers offer to their employees and the taxation impact of this change. So that's, of course, unfortunate that otherwise positive drivers are, let's say, possibly taken back and remains to be seen what's the impact then for the sector, but we note that this is a possible cloud on the sky around bicycle business going forward in the Nordics. The third highlight is maybe a detail in the overall equation, but about 70% of Duell's business is technical parts. And of course, this is a huge array of different items because they are -- some are specific for -- many of them are actually specific for the particular vehicle. So it's a match to a make and a model. And so availability of technical parts is a key value to our customers that do service on vehicles. And we have decided to actually invest in a little bit higher inventory on certain, let's call them, high runners, very popular parts that have a steady flow demand. And we have done this in a couple of locations in our group. And the results that we have seen on this is very positive. So basically driving above-average growth by ensuring that we have an improved service level. So this is good to see, but it also is maybe a good snapshot of the value positioning the value chain position and the value added tokes to its customers, particularly on the so-called hard parts and where product availability is very, very crucial part of the value creation model. Then the final highlight in this season of early spring and early summer season ahead or season ongoing, then of course, it's also the prime time for rider gear, motorcycle rider gear and Duell has a couple of house brands on rider gear with Halvarssons being the most -- the largest one and the most, let's say, high-end one. And this year, also, we have brought new products to the collection of Halvarssons rider gear and the reception of these have been very positive in the market. These products have their pedigree very strongly in the Nordics and the brand is established in the Nordics. So that's the, you could say, main market. But also, we know that these brands have been favoring or fared quite well in U.K. where the, let's say, the environmental situation is very, in many cases, very similar to Nordics that you might have both rain and shine during your long ride. And the product has found a good start also in the U.K. market. So this is -- this is a good highlight to -- in this period for also one of our important house brands, Halvarssons . If I then move to the key figures for the period there, both the quarter itself and the 9 months cumulative, then the growth continued. The growth continued, albeit in the quarter 3, it slowed down. So the growth was marginal and -- but still is growing year-on-year, reaching EUR 38 million and change in net sales, EUR 38.2 million. This slight slowdown of course, also is seen on the year-to-date, where we had an over 4% growth in the first quarter. We were over 3% in the second quarter year-to-date and now at 3 quarters year-to-date, then the rate is, if we round it off 3%, slightly below, as you can note, reaching almost EUR 96 million. And again, here, we see this trend in the end of Q3 with respect to consumer confidence. This dynamic of consumer confidence, the dynamic of price points of the total blended array of products sold, the composition of which type of dealers favored stronger than others, the composition of which countries have a positive sign in front of their growth and which don't. And this also affect the blended gross margin development in an unfavorable way. So margin -- the blended margins were slightly lower than previous year. And since the quarter 3 is the dominant in volume, this also plays out in the year-to-date that it didn't reach on a year-to-date level, the gross margins either. And equally, this is of a magnitude that it also trickles down to profitability to adjusted EBITA that did not reach on the quarterly level nor on the year-to-date the previous year's levels. On the financial position comparing to a year ago, the net debt is significantly lower. Duell is pending to and sticking to the debt repayment plans that we have agreed with our bank relations. So this is going exactly as expected, as planned. And at the end of quarter 3, the leverage ratio was 3.4x ratio of net debt to adjusted EBITDA. The cash flow profile improved. In this period, it's still slightly negative with the cycles of high volume of incoming goods versus before they are delivered to the market. And the payments settled. So this is -- but comparing it to the previous year's similar period, this is an improvement. So overall, we are very happy and proud to see that we are continuing the growth. The market is shifting to a more difficult market. And even in difficult circumstances, Duell is able to deliver the growth. And the challenge is more on this profitability side where it sort of indicates what is the market willing to pay in this kind of circumstances in the market. But here, I hand over to Caj, and we open up these key -- he can help open up these key figures a little bit more in detail. So Caj, please.

Yes. So welcome from my side as well. And if I open up the key numbers a little bit more than starting from the sales. So as the heading is saying, role of Central Europe is increasing according to our strategy. So now we have weight in the quarter 3 turned over to the Central Europe is favored. So 51% of the volume there and on a year-to-date level, it's 49%. So reaching 50-50 soon, and we'll continue to grow there. And overall growth then, as Magnus said, slowed down a little bit still positive 0.7% and in comparable currencies, unfortunately, a little bit lower than a negative growth in comparable currencies. But all in all, still for the full year, a clear growth. And say the trends in the market continues also that online sales is gradually growing now for the quarter, 30% so clearly up from previous year, also year-to-date. So that market trend seems to continue. And then the important piece for us is the own brand sales has kept during the whole year as well as in this quarter also on a stable level. So around now quarter -- for the quarter, 17% and year-to-date 19%. Moving over to the profitability side, which weakened during the quarter very much affected by the prevailing market conditions. So the adjusted EBITDA for the quarter was EUR 2.1 million and 5.4 percentage, so clearly down from a year back. And coming through the -- via gross margin, which Magnus explained that we have 21.7% for the quarter and year-to-date 23.2%. So both down on a comparison to previous year. But on the positive note, we can see that the operating expenses in relation to sales is developing as we have forecast and expected to develop. So for the quarter, 15.4% compared to sales and for the year-to-date 18.3%, so decreasing compared to previous year, which is totally according to plan. On the capital balance sheet side and the capital management side, net working capital developed very positively during the quarter, EUR 52.5 million compared to EUR 57.7 million. So overall, a good development. If we then break it down, look into the inventory portion, then we can see we are on the same level as last year, just below EUR 50 million. And here, we have still the impact from the weak winter season. So some snow category product is still in the inventory. And now with the summer that started a little bit late and it's pretty cold, we have also summer products a little bit more than expected in the inventory. And then as we -- in the same time during the year has decided to increase the availability of high runners or high-demand spare parts, we still managed to be on the same level inventory total as last year, but the expectation was to go down a little bit, and that's why we continue -- focus will continue to be on the capital management. And if we compare the inventory to LTM sales, we are now 39%, year back 40%, so same level. And here, the goal is to quarter-by-quarter go downwards to improve the capital efficiency. Financial position end of the quarter, we had cash flow-wise from the operations, a good quarter. So year-to-date now, we have operational cash flow just on the minus side, minus EUR 1.3 million compared to a year back. It's an improvement of EUR 7 million. And taking into consideration the profile of the business we have, we have the winter time, spring time, we have the most capital intensive part of the year when the inventory is on the highest level and sales is okay, but then it turns into receivables. So it takes some time before we can turn it around. So here, a pretty good development and shows also that the cash balance in end of the quarter, EUR 5.9 million. And leverage also year-by-year has improved now end of quarter 3, 3.4x on a good level in this time of the year. So I hand back to you, Magnus.

Thank you, Caj. As we communicated on Monday this week, with the development of the third quarter and the year-to-date, we revised the guidance for this fiscal year. And the new guidance that we now have communicated is that we expect that with respect to revenue or net sales that this fiscal year, we will end up at a point which is in comparable currencies at the same level or lower. And with respect to profitability, express in adjusted EBITA, where we see now after the peak season and after 3 quarters that we will not reach the same level in absolute terms as last year. So it will come in lower. We also communicated on Monday that we decided to now remove our medium-term guidance. And this we are now reviewing as a part of also the finalizing the planning for the next fiscal year starting in September. And we will come back then and issue a new medium-term guidance for the company around that time. And this -- the medium-term guidance has several components. We decided to, let's say, as a package to take it off the board and then review this and then come back with a new package. So that may have similar components or this is to be seen. But consider it as a complete unit that we are reviewing, and we'll communicate as soon as we are in that situation, we can communicate. Then closing with recap, I guess, a recap of a highlight, again, what is the strategy of Duell. We are continuing to grow in Central Europe. This is -- this third quarter is a super good example of this where when the market demand and market dynamics change, Duell is able to continue growing because we are gradually diversifying the addressable market that the company has. And this is something we consider extremely important, both for the resilience of the company, but primarily for the absolute growth potential of the company. We also saw in this quarter that the share of online sales slightly grew once again. And this, of course, is something we believe is a long trend. It reflects consumer behaviors. It -- we also believe it is gradually shifting the, let's say, the ratios of power in the industry that -- who is able to do the things and gain market share. And this is where we partly are -- want to be with the big ones, and we are, but it's also that we have capabilities in the company that allows also smaller players to extract and utilize these type of go-to-market channels. And here, of course, elements like product information, digital collateral, et cetera, is very, very valuable to our dealers. And strategical, of course, we are continuing the efforts to grow the -- to improve the profitability. Some of these are now actually these focus areas, you could say, shift in focus or demand even more attention in terms of the current performance we are reporting, particularly then profitability and working capital management. These are elements that we have focused on, and now we need to just intensify the focus on this. We still believe that Duell is positioned well in the market and the value chain and the fact that we can grow and we can deliver growth in these large markets where we are up against other companies, some of them larger than Duell is, in our view, clear evidence of that we have the competitive advantages required to be -- to have these ambitions. And this broad portfolio that we have, the wide product category assortment is a clear advantage to many of our customers when they make decisions on who they partner with and who are logical business partners in their business. And this is what we strive for that we are the best logical partner, both for the brands we represent to the dealers that we do business with. And in this mix also, there is, we believe, room for the house brands. And every period, every -- also this year-to-date, we have added brands to our portfolio. We have rationalized our brand portfolio in some parts. We have added house brand products, and we are -- all these elements are constantly ongoing in a continuum. So we believe the company has the position to execute this strategy. So if I summarize the quarter 3, we are growing year-to-date, but the trend of growth slowed down in quarter 3. And as we have mentioned here earlier, the role of the Central European market area was very important, and this is exactly in line with the strategy. So in the future, if you look at some time down the road, of course, we can project and expect that the Central European market area will be larger than Nordics in the long run. Of course, individual quarters, there are isolated circumstances that also affect these ratios. But overall, if you look at the long-term vision, then this can be expected. The result we managed to achieve in the quarter 3 was clearly not what we were shooting for, this was such a disappointment. And as I mentioned already in the beginning, the dynamics of where activities, what price points in which particular country and region this impacted the profitability in this quarter. So now when we go forward, what we will put focus on is that we will continue to work on the things that are addressing improved customer service level. As I mentioned, we have several examples of where we -- where activities focus on this. It might be the certain product availability that we have in a certain period as in one of the highlights I mentioned, it might be which assortment we carry in a specific market, a specific country we have had good results in some of the companies in the group with such actions. And all of this is, of course, steps that serve how can we better serve the customer on speed of delivery, the right product at the right time. And this will continue, and we just have to accelerate it. It's obvious that we will have to increase focus on profitability improvement measures, any equation, any element that is -- has a positive impact on that, everything from sourcing to pricing to efficiency and everything. And now with a slightly slowed up demand, then, of course, we need to make sure that we have full focus, more focus and have our eyes on the ball with respect to the capital -- working capital efficiency. And particularly, this is, of course, inventory being the largest component of our net working capital, but equally, the other elements as well. But how to manage the turnaround of inventories is maybe the easiest way to look at it. So this these things are with intensified focus now going forward after this quarter 3. And this brings us to the end of the presentation itself. And I believe, Pellervo, you can take over and guide us through any possible questions online.

Thank you very much, and let's move to the questions. So first question is related to the, let's say, view on the net sales. So we are a bit ahead of to last year, but how do you see the Q4 going forward? So how the June started?

Yes. We -- today, we are reporting quarter 3. So we are not in a position that we can forecast and talk about the quarter 4. We will revert to that in our full year release in October. And -- but of course, I think it's important here to note what we note and follow the consumer confidence trend in the market. And this, of course, there are some overall averages on the European level, but we also see that the individual countries have their own dynamics in this. So it's not a one wide paint brush across the board. It's lines -- thinner lines with smaller painting brushes.

Very good. Then going to the different markets, the European market, it's the Nordics. So how do you see that -- do you have gained market share or have we lost? And what is the competitive situation in these markets?

We certainly gained market share in Central Europe. There's no doubt. This is also where we are a relatively small player in against those who are, let's say, incumbents in those traditional markets. And also within the Central European region, the individual countries are showing very different dynamics. And maybe the easiest way to look at the market activity is particularly in this period that is very summer season oriented and you can see motorcycle parts category is very center stage. So looking at registration data is being like an underlying market activity. There we can see huge swings between countries, some countries heavily on the plus side and some countries have significant on the negative side. And for example, Nordics, Sweden, Finland being the biggest markets in our equation, they're clearly on the negative trend when it comes to new motorcycle registrations, unfortunately.

Very good. Then we come to the, let's say, the acquisitions that Duell has made in the past years. So how these companies have performed despite we don't kind of open a report by the company. But overall, what is the currently the current situation?

I would say, overall, extremely important steps in the growth path of Duell. And the fact that we are growing is telling its clear message that they are performing. Those acquisitions have performed. And -- but that said, integrating companies into and really extracting all the synergies. This is a journey, and I don't consider us even close to the finish line on that process, the integration process. So the companies are -- have fared well and developed well in their own individual markets. And that -- and then we still have potential to extract synergies from these companies as, let's say, utilizing the total Duell capabilities. And of course, this goes both ways. So we have examples where we have implemented product brands and driven growth in an acquired company using the, let's say, prior Duell, the classic Duell capabilities with respect to products and assortment. And we have also the opposite where we have been able to bring to Nordics products and brands that we didn't have earlier. So it actually is -- and this, of course, is the whole point of it that we seek all synergies possible.

Okay. Duell communicated earlier during the Q2 that we are ready to, let's say, look for some new acquisitions. But are those now off the table after this, let's say, not that good result? And is this one of the reasons that we are removing the guidance if we think about the older financial targets when it comes to the net sales level?

I think we have to use the proper horizon for this discussion. And when we talk about strategic steps in general, whether they are of, let's say, organic nature or inorganic nature like acquisitions, we are not looking at those matters on a quarterly or even a fiscal year basis. It's more of a longer horizon. So you could say that on that horizon, nothing has changed. The timing and the priorities of the company might change depending on the situation. And now we have a situation where we have clear unfavorable change on profitability. And this needs attention, and this will get our attention. So when we talk about, let's say, short-term focus, then other priority matters might take precedence over some longer horizon. So this is how we normally shift and share the total bandwidth between short-term and long-term focuses.

Yes. Related to this, so as we remove the midterm financial targets, what was the major reason behind this action?

The major reason simply being that now -- actually, you could say here, the fiscal year perspective played a role into this that now when we saw that now we -- the development in quarter 3 doesn't support maintaining the fiscal year full year guidance, and we have revised that, then the decision was that now it's probably a good time to also revisit the medium-term guidance. And -- but as that will require a little bit more analysis and projection work, then we simply decided now we'll take a small time out to do that work and then communicate that when we are ready to do so.

Yes. Very good. Also if we could take a few questions from the financial side. Looking for the, let's say, the net working capital at the end of Q3. So there was a big change in the payables. What was the reason behind this one?

Of course, we work on getting better terms with suppliers every day and so -- but the big portion here is that we also had a little bit delays in incoming goods, which also then pushed the payments forward to a later point in time. And I can say we have -- it's a result of a job that has been done for a long time, start to pay off.

Yes. You mentioned earlier that our continuous focus is to kind of manage the, let's say, working capital. So are there any concerns towards the end of Q4 that we won't meet the covenants?

Of course, as with the earlier questions there, I cannot really comment on the future here end of Q4, but I can say it the other way around. Since the capital injection sometimes back, we have managed the covenants all the time, and we work for that every day, and that work continues also during the fourth quarter and forward.

Yes. If we dig then to the profitability, so in the Q3, so what were the kind of the major reasons behind the lowering gross margin? Is it kind of a sales mix, product mix, competition or a bunch of issue.

Yes, if I -- I think you have a mix of everything. You cannot put, so to say, pinpoint is this or that. It is weakened market situation, mix, products, customers, whatsoever. So it's a mix of everything. And so hard to say it's this or that.

Yes. So how do we see the, let's say, the competition and the price pressure will it continue as we saw that the consumer confidence is lowering. So will this set new pressure for our company?

I leave that question to you, Magnus.

Yes. I think always when there is a change in how consumers or -- and that, of course, plays an effect on our customers, the dealers' considerations of what to buy in what quantities and when to buy. Absolutely, of course, it's a challenge that goes through the entire chain. And again, as Caj was pointing out, this is a total equation that has many factors that is it the high-end product that is of the consumers' interest? Is it more an entry-level product? Again, just that component has a meaning on both the value, meaning the revenue, so to speak, for that particular transaction. And the margin, the earnings profile is not totally homogeneous across brands and particularly neither on price points. So then this is why I talk about blended margins. This is what we -- and depending on who buy what they buy and also to some degree, the geographical spread there.

Okay. Have there been any, let's say, changes in this competitive environment, thinking about the biggest European players?

I would say only the natural aspect that in a market that is starting to show signs of slowdown and everybody trying to do their efforts to secure the volumes they need. So including Duell, but also the main competitors. Then again, if we talk about have we seen any significant strategic shifts, any new establishments, these kind of major things in this period, no, not that I could see, worthwhile mentioning.

Okay. Then we have, let's say, related to the bicycle business, one question for the Finland, so how do you see the possible impact if the government decides to remove the bicycle benefits from employees?

It's certainly not positive. It cannot be seen as anything else than a cloud over the bicycle business in Finland. Now we have to remember that there are different mechanisms in Sweden. There are also incentives in Sweden, but they are not, let's say, structured in the exact same way nor is there a discussion about changing those in Sweden. So this is only related to the Finnish part of our bicycle business and nor is it affecting, of course, the French bicycle business we have. And -- but in the Nordics, the -- while we are not, of course, reporting particular product categories and the geographical revenue split on those, then -- but just from the point of view that we have our warehouse for bicycle parts for the Nordics in Finland. So we have the best service level in the industry to this sector, better than anybody, even huge companies in that sector. So that these changes affecting the Finnish market is, of course, kind of like hitting where we have the most unique competitive advantage. Personally, I'm positive that it will not undermine the bicycle market and the trend in which we all utilize bicycles on a daily basis. I believe those fundamentals are linked to other things than a small benefit of some tens of euros per month from taxation authorities. But as said, incentives are typically the effect are bigger than the nominal value. So yes, medically, it's a small ticket, but how it impacts on -- particularly how it impacts on bringing more enthusiasts and users of bicycles. This remains to be seen. So it's certainly not a positive trend at all.

What about the bicycle has certain kind of support from the, let's say, EU part as well. So Duell has a bicycle business in the Nordics, Finland, Sweden and France. So do you see the opportunity to expand the bicycle business to other countries as well in addition to current markets?

Yes, clearly on paper, so to say. If you start with, let's say, the theoretical point there, so every country where Duell has activities have a clear bicycle market, no doubt. How -- what is the barrier to entry to enter that market? In very well-established markets with very well-established players and value chains. This is the real question. And I think for -- to organically enter that, it would be a very slow process. So just as Duell has entered the Nordics and the French bicycle market in a big way through acquisition, this would be probably the most likely strategic approach to entering a new country, a new market for this product category. But that's just, let's say, objective analysis of the barriers to entry.

Okay. Let's move back still to the Q3 and also to Q2. So as you stated that the weather conditions were pretty bad in the Nordics. So did we have a big amount of winter products or snow category products in the inventory and what will happen to them?

Yes. As we commented already at our Q2 report, that, yes, when the snow conditions were unfavorable, of course, it had an impact on that category. And of course, what that effect kind of like is carried through this period. So obviously, there has been no opportunity in the third quarter to correct. And let's be, let's say, very simple and say that it has been no opportunity to sell snowmobile parts in Q3 that didn't have a demand in Q2. So that correction, that opportunity comes towards the fall when our dealers start to gear up for the winter season again. So it kind of carries through. This is why also, as Caj mentioned there, when we looked at inventory that was a highlight. We had that, let's call it, a little bit handicap throughout this quarter 3 and quarter 4 on that one.

Very good. I think we are pretty much gone through the questions. We have similar kind of questions from several participants. But now when we have come out with the lowered guidance and removed the, let's say, midterm financial targets. So what are the focus areas that Duell is now really kind of working on? And what are the key things that are on top of the agenda?

As I mentioned earlier, we clearly recognize that now we need to how shall we say, rethink, reshift and intensify focus on a number of things. All of those things that we prioritize going forward now aren't new. There are items that has been on our focus and continue to be. Now we just need to further intensify. And they are, of course, on profitability improvement measures, making sure that we have -- we manage our particularly inventory well and let's say, that we can as quick as possible, move back to the plan, the longer-term plan of improvement, the improvement trend that now got a little bit of a stagnation and slowdown. And the fundamentals that we continue to have enough efforts on improving availability, improving what we offer in which location and keep on stocking for those customers, recognizing that most of our warehouses serve the -- within a certain circle. And of course, this is purely for logistical -- from a logistical driver point of view that you cannot be too far away from the customer because your time to the customer's doorstep is too long on outbound logistics. And this work continues. And like I said, we have seen very positive effects in a number of places when we have taken steps forward on matters like this. So this remains. We just have to shift gears and put in the next gear on our machine and throttle wide open. So I look at this mostly as intensified focus on priority matters. And as we discussed when we talked about mergers, acquisitions, et cetera, it doesn't mean it's off the table, but the priority matter prioritization shifts a little bit.

Very good. I think you could have still the closing words for the whole 9 months and Q3 despite you went through kind of the focus areas.

Yes. And really then just with the closing words, we continue to grow. We continue to demonstrate the -- our ability to drive growth in the main markets of Europe. So the strategy that Duell has is working. What we hit the bump in the road when it comes to profitability development. This is why we need to shift priority focus now to making sure that we correct this as soon as possible.

Thank you very much. And thank you for all the participants who follow this webcast, and we will come back with the full year results in mid of October. So thank you very much, and have a pleasant summer days.

Thank you.

Thank you.