Earnings call transcript: Scandi Standard Q2 2025 sees record sales growth

Scandi Standard reported its strongest second quarter ever, with net sales growing by 6% and EBIT increasing by 9%, according to its Q2 2025 earnings call. Despite the company’s investments leading to negative operating cash flow of SEK 150 million, its reported leverage remained below its internal aim at 2.4. The company’s stock rose by 3.13% following the announcement, closing at 102.2, up from its previous close of 99.1. According to InvestingPro data, the company has maintained profitability over the last twelve months and currently holds a FAIR Financial Health score of 2.34.

Key Takeaways

• Scandi Standard achieved a 6% increase in net sales, marking its strongest Q2 performance to date.
• EBIT rose by 9%, with a margin improvement of 10 basis points.
• The company’s stock price increased by 3.13% post-announcement.
• Investments in new plants in Lithuania and the Netherlands are expected to boost production capacity significantly.
• Strong European demand for chicken continues to drive growth.

Company Performance

Scandi Standard has reported a robust performance in Q2 2025, with its net sales and EBIT showing significant growth. The company’s strategic investments in expanding production capabilities and focusing on integrated value chains have positioned it well within the European market. The demand for chicken, driven by a protein shift from beef and pork, has further bolstered its market position.

Financial Highlights

• Revenue: 6% growth compared to Q2 2024
• EBIT: Increased by 9% with a 10 basis point margin improvement
• EBIT per kilo: Increased from 1.83 to 1.88 SEK
• Operating cash flow: Negative SEK 150 million
• Leverage: 2.4, below the internal target of 2.5

Market Reaction

Following the earnings announcement, Scandi Standard’s stock price rose by 3.13%, closing at 102.2. This positive market reaction reflects investor confidence in the company’s strong quarterly performance and future growth prospects. The stock’s movement is consistent with the company’s solid financial results and strategic initiatives. InvestingPro data reveals impressive returns, with both YTD and 6-month returns exceeding 19900%, while trading near its 52-week high. The stock maintains an average daily trading volume of 0.03M USD, indicating steady market interest.

Outlook & Guidance

Looking ahead, Scandi Standard aims for a 5-7% net sales growth by 2027, with an EBIT target of over 6%. The company plans to increase its production capacity with the new plant in the Netherlands and expects improvements in the second half of 2025. Additionally, it is committed to reducing CO2 emissions by 42% as part of its sustainability goals. For deeper insights into Scandi Standard’s growth potential and comprehensive analysis, including Fair Value estimates and additional ProTips, explore the detailed Pro Research Report available exclusively on InvestingPro.

Executive Commentary

CEO Jonas Tunstall highlighted the company’s strong growth, stating, "We see strong growth and performance delivered in the quarter." CFO Frederic Sullivan echoed this sentiment, noting, "The second quarter was our strongest second quarter ever." Tunstall also emphasized the benefits of chicken as a protein source, describing it as "convenient, versatile, tasteful, responsible, safe, nutritious, and affordable."

Risks and Challenges

• Potential supply chain disruptions could impact production and delivery timelines.
• Fluctuating feed prices, despite current stability, may affect cost management.
• Market saturation in key regions could limit growth opportunities.
• Regulatory changes in the European market could pose compliance challenges.
• Economic downturns may affect consumer spending and demand for premium products.

Q&A

During the earnings call, analysts inquired about the company’s price increase strategy in the ready-to-eat segment and the startup timeline for the Netherlands plant, confirmed for early Q4. There were also questions about the impact of acquisitions and capital expenditures on future growth, which the company addressed with confidence in its strategic investments.

Full transcript - Scandi Standard publ AB (SCST) Q2 2025:

Operator: Hello, everyone, and welcome to Scandi Standard’s Interim Report for the Second Quarter twenty twenty five. My name is Lydia, and I’ll be your operator today. After the prepared remarks, there’ll be an opportunity to ask questions. I’ll now hand you over to Jonas Tunstall, CEO of Scandi Standard, to begin. Please go ahead.

Jonas Tunstall, CEO and Managing Director, Scandi Standard: Thank you very much, and good morning, everyone, and welcome to this presentation of Scandi Standard’s results for Q2 twenty twenty five. My name is Jonas and I’m the CEO and Managing Director of Scandi Standard. By my side, I have Frederic Sullivan, our CFO, and I’m really pleased to have him by my side. And I’m also glad to report a strong growth and result in the quarter. So next slide, please.

And we see solid growth and improved performance in the quarter. We have 6% growth in net sales and increase in volumes, and it’s supported by business across countries, channels, and segments, and the sales are supported by continuous strong underlying demand. So there’s a strong European demand for chicken, both long term and especially now. We see a strong improvement in our EBIT performance. We’re delivering continuous steps toward our financial targets that were set into 2027.

And, when we look into the RTE in specific, we’re in the process of passing through the price increases. But I will come back to that later. Our Lithuanian operations underway with a positive EBIT impact, and that is our first milestone achieved, an EBIT positive within six to twelve months. And as we previously communicated, and as you can see, we are in the early part of those six to twelve months. Farms So are ongoing, and that is important for us to have this backward integration in Lithuania.

And at the same time, we’re preparing for the newly acquired RTE plant for the startup in Q4. And at last, our first dividend installment was paid of SEK1.27 per share and the final installment due in September to the same amount of SEK1.25 per share. So next slide, please. And this is the reason why we see this strong demand, and these are representative slides that we show in every quarter presentation, but it’s important for us to show the drivers behind the long term strong momentum in chicken. And it is convenient, versatile and tasteful, and it is responsible, safe and nutritious, And at last, it’s affordable because it’s sustainable.

And I will get back to that later in the presentation. But these three drivers is important for the growth and the long term growth in chicken. So next slide, please. And here, you can see the strong historical and ongoing consumer trend for chicken. And on top of increased consumption, chicken is benefiting from a long term inflow from other proteins.

So we see a change, a long term change where we see growth in poultry and the take lot from other proteins, pork. But now we see high prices on beef as well, and that makes the trend move over to more poultry from beef as well. So we can move into next slide, please. And one of the major reasons why it’s benefited from other proteins is because it’s sustainable and affordable. And I mentioned before, price has always been important for consumers, and the focus has increased even more in the current environment of high food prices.

And beef prices are increasing and becoming more and more expensive, which is, chicken is benefiting from, but also the long term trend of switching protein from red to white meat. Moving to next slide, please. And on this slide, we want to present our AB per kilo measure, and AB per kilo is a good measurement of value creation for our business. In q two twenty twenty five, EBIT per kilo is 1.88 compared to 1.83 in q two twenty twenty four. And even though mentioned before that Lithuania is EBIT positive, it still contribute negatively to our EBIT per kilo measurement.

So if we exclude the startup cost in Lithuania, EBIT per kilo is 1.92. And Lithuania and Ostovallo will be good contributor for us reaching our 2027 goals, and we’re expecting to make material per kilo steps later in 2025 and onwards. And in the different colors, in the diagram on the right hand side, you can see the development in the different segments, and the RTC color includes the ramp up cost in Lithuania. So in spite of the start of cost in Lithuania, also q two EBIT per kilo was higher than last year and focus declined ladder is progressing. And this is also a slide that we have shown before, and this slide is to remind you of the strong market position, in all our five home markets and that the countries are highly consolidated.

And these markets have large hurdles for new entrants. They can individually be regarded as semi closed markets due to the strong consumer preference for domestic produce. And due to our strong market position, our own supply decision have a meaningful impact on the market balance, which has helped us in the recovery process in the inflation before, but also now when we see that strong demand for chicken is is increasing the prices on those. But note that each market, however, also includes consumer segment less sensitive for province. So next slide, please.

And this is to show our new start up in in Lithuania, and it will be a 20,000 to 25,000 tonnes drill weight state of the art processing plant, and it will be best in class cost position. That’s why it’s important for us to be in and make the setup in Northern Lithuania. And our intention is to build a fully integrated hub, and that will allow us control of both cost, animal welfare and food safety. And now the recent acquisition of farms accelerating that process. And we’re also planning to see how we can continually build capacity within this market.

So with that, we’re well positioned to serve high quality products to segments less sensitive for provenance and also to our own ready to eat plant and our strategic export customers. And for Lithuania, we’re targeting the medium term, AB per kilo, well above 3 SEK per kilo. So if we move into next slide. Next slide. And here, you can see our, different plants, and the three big plants that we have is Vala in Sweden, Shockock in Ireland, and Eros in Denmark.

And then we have a medium sized plant in Norway and two smaller plants in Lithuania in Janiskis and Lieto in Finland. So if we move to next slide. And this slide is a reminder of the strong historic organic growth in the ready to eat business, and I’m confident that that trend will continue. And it’s divided into different type of business. Three four, is breaded products, and European market, and one third of it is an integrated local business that we have in Sweden, Norway, and Finland.

And in the ready to eat, we have a high return on capital, and, our average ABSS margin is above 6% and low capital employed compared to our ready to cook segment. If we move into next slide, please. And the market is divided into tiers. We have the European players, and then we have the regional players, and we have the local players. And, we, have been a regional player, with a 36,000 tons, product weight in 2024, and that is about 5% of European markets.

And now with the new production platform, we will move into being a European player. So with that, we move into next slide, please. And this is the acquisition in Ostovaldo that we’re ramping up, and that will give us 48,000 tons annual capacity in this plant. So it is a 90% increase in production capacity. And it’s also one of the few with this advanced way of highly efficient producing formed products and whole muscle products.

And as we’ve, said before, it was impacted by fire, and our total investment down there will be €28,000,000, and that will replace an investment in €530,000,000. And the operations are planned to start in q four twenty twenty five, and it looks promising keeping that plan. And the startup cost will, of course, affect with low utilization in the startup in the beginning, but that we have communicated before, and then we will grow in volumes. So if we move into next slide. So if we take a look at it from from a holistic value chain view, we are well positioned to gain market share because we have this low cost and high quality end to end when it starts with a low feed, labor and and stuttering costs.

We have quality control of ready to cook and value chain, efficient logistics, and then we have a state of the art breaded capabilities in Holland. So we start with the farms in Lithuania, the process in Lithuania, and then the breaded production in The Netherlands. And that combination will be a very competitive offering to our customers. So if we move to next slide, and now we’re moving over to our segments, and this table shows the reconciliation of our segments with strong net sales growth in Sweden and Denmark, lower net sales in Finland. Due to that, we have exited the loss making contract.

So it will affect the top line here, but not the the EBIT level. And we also when you read the these charts, it’s important to remind you of that the category other includes ingredients business and our corporate cost put together. We move into next slide, please. And here we see our ready to cook, where we have strong growth and, improved performance. We have 6% increase in net sales, and we have 6% increase in chicken processed, so both in net sales and volume.

We have the EBIT of SEK150 million compared to SEK98 million last year, and that is an improved margin from 3.8 to 4.2. And we’re also proud of that we have really low LTIs this month, and I think that that’s an effect of the our long term focus and and structurally work to reduce our injuries in the factories. We have stable animal welfare indicators, and we have antibiotics below our short term targets. Next slide, please. Here we take a look at the feed prices, and we see stable feed prices after a long period of increase in feed prices.

But however, we need to be prepared for further volatility. We don’t know where it will end, but what we can foresee now is a stable, slightly decreasing prices. And our model have most of the input costs linked to the top line, and we have no limited trade with US and China. So we are really much a pure European player. We also want to highlight, and that is important, that the feed cost is one third of our cost base.

And the short production cycle that we have, compared to other proteins enable us to take more agile decisions, in our supply chain. And when we look at other costs as packaging, energy, so on, we see cost on a more stable level, and we are hedging the majority part of our electricity exposure. If we move into next slide, please, and take a look at our export prices. We see that realized export prices approach historical heights. We have a 3% increase compared to Q1 twenty twenty five.

And our expectation is that and our forecast is that the export prices will continue to rise in the coming periods. And that is due to two things. It is a strong market that we are talking about, but it’s also our structural approach to find the right export customers. So long term partnership with prioritized customers, we’re optimizing the sales and operation planning, the S and OP planning, and also we have announced the flexibility between export and our ready to eat, and that is super important that we can move volumes between those segments due to to the cost of raw material prices. And we have also reduced our exposure to the volatile spot markets.

So if we move into next slide, please. And on this slide, you can see the channel developing in more detail, and here you can notice an increase in our retail sales and a slightly decrease in the foodservice. And that is mainly due to the prioritization that we need to do and where we are prioritizing big customers that we need to provide with raw material and ready to eat when there are such a high demand. Moving to next slide, please. And now we’re moving to ready to eat.

And we are, as explained earlier in this presentation, we are in the process of passing through high prices. We see a growth in net sales of 4%. So we have growth in both net sales and volumes. So we see that this segment is recovering. Of course, that is driven by increased export and retail performance.

However, we see a weaker EBIT performance of 3,000,000 compared to 38,000,000 last year, and that is the negative impact from the rise in chicken prices. But we’re recapturing the margins in the coming quarters, and that is a natural step when we see that price goes up from the ale chicks to chickens to our ready to cook segment where we sell fresh products, and then we’re putting further prices and ready to eat. And they have a little bit more structured lead times that we need to respect, but we are in the middle of passing those prices through at the moment. If we move into next slide, please. And here, you can see the figures, and we see a solid growth, and we see a growth in our retail segment.

And we’re also really glad that that the the food service is flattening out here in Ready to Eat, and we are linking back to the loss of contract that we had last year and the recovery that we have communicated since then to get back growth and ready to eat. And we can see that we are growing this quarter compared to last quarter and the foodservice flattening out. So overall, we have a positive view on our ready to eat business and see the growth. Now it’s just a push further price increases, but that’s a natural step with these raw material price increases. So with that, I hand over to Frederic Solon for the CFO company.

Frederic Sullivan, CFO, Scandi Standard: Great. Many thanks Jonas, and good morning, everyone. Next slide, please. As Jonas mentioned, the second quarter was a strong one. In fact, it was our strongest second quarter ever.

We see a positive development where top line was driven by both RTC and RT, supported by strong underlying EBIT growth in RTC, partly offset by RTE, which, as Jonas said, is normal when bird or raw material prices are increasing. The RTE profitability is expected to be built back and recovered during the coming quarters. In total, EBIT is up 9% in the quarter with a 10 basis points margin improvement, and the ramp up of Lithane is going well, and it showed positive EBIT in the quarter, which is ahead of plan. Finance net is reduced, and the cost for increased bank loans is close to offset by lower EBO rates. We also have a positive currency impact and partly offset by a reduction of the positive impact from the interest rate swaps that we have talked earlier.

Tax is in line with previous year, and feed efficiency remains stable and strong, and we also see a significant reduction in injuries. Next slide, please. Our return on capital employed continues its positive trajectory, showing improvement compared to previous year. Meanwhile, return on equity is slightly below last year, which is primarily due to the ramp up cost for Lithuania. The equity ratio decreased from 36% to 34%, primarily driven by increased investment activity.

While the decline is modest, the company remains well capitalized and within our targeted capital structure, and we continue to monitor our leverage position to ensure financial stability and maintain flexibility for future investments. Next slide, please. Our operating cash flow was negative SEK150 million in the quarter, primarily due to the timing of trade receivables and increased CapEx linked to the acquisition of poultry farms in Lithuania that amounted to SEK 200,000,000. Other operating items are driven by exchange gains on accounts receivable and accounts payable, as well as revaluation of a provision for pension. Paid tax is in line with previous year.

And as mentioned earlier, the first installment of the dividend was paid in May, and the second one will be paid in September. Other items are negatively impacted by FX on interest bearing debt in the quarter. So in total, the change of net interest bearing debt was 41,000,000, mainly driven by the Poultry Farms acquisition, and dividend. Reported leverage landed at 2.4, which is below our internal aim of 2.5. Next slide, please.

Working capital remains low in the quarter. We see a 13% inventory decrease versus year end and a 5% reduction versus Q2 last year. It’s driven by lower level of finished goods, partly offset by live animals. Our target for working capital as a percentage of sales, rolling 12, adjusted for financing is 6%, and in Q2 this metric stood at 4.6%, including financing adjustments, meaning that we are at an efficient and low working capital level for the quarter despite the ramp up effect in Lithuania. Next slide, please.

For 2025, in total, the CapEx is estimated at approximately SEK550 million, which includes the necessary investments related to the acquisition earlier this year in Ostevolde, in addition to the acquisition price, meaning that the acquisition in Netherlands earlier this year and Lithuania in the quarter total amounting to approximately 330,000,000 SEK will come on top of the $550,000,000. The blended effective tax rate is expected to be approximately 20%, and a said dividend will be paid out in September. In total, the dividend is up 9% versus last year. Next slide, please. And back to you, Joel.

Jonas Tunstall, CEO and Managing Director, Scandi Standard: Thank you, Fredrik. And next, I would like to talk about one of our cornerstones and actually license for us to operate. And there are three key areas, when it comes to creating trust for what we do, and it is responsible animal welfare, it is safety for consumers and employees, and it is nutritious products. And those three, are super important for us and, of course, one of our license to play, but also a really important focus for us to actually be the responsible player in the poultry industry, and that is important for Scandi Standard. So if we move into next slide, please.

That’s why we have a sustainability scorecard where we show and being transparent of our different measurements about sustainability measures, and we are the only poultry producer, but we know that shows this every quarter in such a transparent way. And if we look at our LTIs, they are down low in this quarter and the last quarter as well, and we see a long term positive trend in improving our LTI performance. So we’re really proud of the results of this month, but we also know that we have much more to do. If we look into our use of antibiotics, we are below, our short term targets, and of course, when we’re entering new business, with other ways of producing chicken, we are putting in our Scandi standards and transforming to our way of working and lowering the antibiotic use over time, and that will affect the numbers now when we’re entering new areas for Lithuania as an example. We also see our animal welfare indicator footpath score at a low level this quarter.

So if we move into next slide, please. And this is also a slide, that was shown before, and by the we think it’s super important for us to state our four, important strategic pillars, And it is to increase the value of our protein, and that is about taking out more and more value out of the bird and defining the right product, the right markets, but also taking care of the total carcass. And then we have ramping up the efficiency, and that is also an important focus of not only the efficiency in the plant, but the efficiency in the whole value chain. And there we can see examples how we’re actually taking control both in the live operations with good measurements and good cooperation with our farmers, but also how we can create high efficiency in our plants. And then we have the integrated sustainability, and that is important in our total business that we work with sustainability in all means.

And the fourth one is better together, and that’s the way we’re working because we are in five different home markets with strong local preference, but when we are optimizing things together and utilize the best practice all around that will scan the standard benefit from the local players. And if we move into next slide, please. In this slide, we want to remind you of our twenty twenty seven targets, and on the right hand side, you can see the targets, and we are expecting a strong growth over time and over coming years. So, therefore, we set the target of five to 7%, net sales growth. We have an EBIT target, in excess of 6% by 2027.

We’re also measuring the progress in terms of EBIT per kilo, that we have presented in the slides before, and that is above three SEK per kilo, and that is a supporting target for all our other targets. And we will have a rose above 15%, and then we will reduce our CO2 emissions with 42%. So it’s bold goals, but we see, that we’re moving direction, and we feel confident that we will reach the targets in 2027. So if we move into next slide. And this is also a reminder for you about a structured approach of receiving recognition in our sustainability focus areas.

So we have on the right hand side, you can see the ESG ratings, and we are proud of the achievements, And of course, the CDP achievement and being an A in CDP, I think it’s only 15 listed companies, if I remember right, that has the CDP A rating, and I think it’s only two in the food industry in Sweden. And if we move into next slide, please. And this is the clear roadmap to reach our three per kg target on avid. And that is mainly two things. It’s about what to say, climb the value ladder or increasing the value of our protein, And that is about balancing supply and demand.

It’s about value creation. It’s about differentiation, but it’s also about utilizing further parts of the chicken. It’s not only breast filling and legs that makes the profit. So a lot more and we are focusing that, and that is our ingredients business. And then we see large efficiency potential in the value chain and optimizing that from farm to nugget.

So if we move into next slide, please. So to summarize it all, we see strong growth and performance delivered in the quarter, all time high EBIT for both the second quarter and for the first half. We’re moving steadily towards our financial targets, and we’re expecting further improvements in the second half twenty twenty five. We remain highly focused on the startup of acquired entities. And as mentioned before, Lithuania delivered positive EBIT, which is ahead of our plan.

Netherlands are on track for starting q four twenty twenty five, and our final dividend installment due in September of 1.25 SEK per share. So that’s all from us in the presentation, and we’ll move over to the Q and A session.

Operator: Thank you. Please press star followed by the number one if you’d like to ask a question and ensure your device is unmuted locally. We have a question from Daniel Schmidt with Danske Bank. Please go ahead. Your line is open.

Daniel Schmidt, Analyst, Danske Bank: Yes. Good morning, Jonas and Frederic. Just wanted to follow-up on the comments regarding Ready to Eat. And I think Jonas, you said that you are passing through price increases that has sort of a structural lag. What are you sort of implicitly saying there?

Does that mean that you will have some lagging effects also in Q3 and then you will be fully catched up as we get to Q4? Is that how we should interpret it?

Jonas Tunstall, CEO and Managing Director, Scandi Standard: Yeah, that’s how I should say it, but also we should mention that we still see increasing prices in the third quarter as well in Ready to Cook. So it’s more about that it’s always a little bit delayed when we’re passing prices through. So it should be seen as positive when we are increasing the prices in our value chain where Reddick Cook is our strongest foothold. But of course, when the price is rising, there are delay in the price implementation. But most of those discussions is already done with the customers and then they are implemented in Q3 and Q4.

But of course, if we still see continued increase, that will pass it further on.

Daniel Schmidt, Analyst, Danske Bank: Yeah. But it also means that you will be benefiting on the RTC side from increasing prices, but you will be hurting on the RTE side, but the net effect is still positive you think?

Jonas Tunstall, CEO and Managing Director, Scandi Standard: Absolutely. RTC is our big box.

Daniel Schmidt, Analyst, Danske Bank: Yes. And when it comes to The Netherlands, when you bought it, you mentioned sort of late Q3 and then you changed it to early Q4, if I remember correctly, now you’re saying Q4. Is it still early Q4 that you plan to be ramping up or start to production?

Jonas Tunstall, CEO and Managing Director, Scandi Standard: Yes. It’s still early Q4.

Daniel Schmidt, Analyst, Danske Bank: And what do you expect in terms of start up costs as we get into the late part of q three and early q four?

Jonas Tunstall, CEO and Managing Director, Scandi Standard: Yeah. We will get back to that later in the in the coming quarter when we are when we are ramping up. So we will not guide on exact numbers in this quarter. We have a positive momentum in ramping up Ostovald, and we will ramp it up sequentially.

Frederic Sullivan, CFO, Scandi Standard: So we

Jonas Tunstall, CEO and Managing Director, Scandi Standard: will start line by line. Actually one of the reasons for not having even more growth in ready to eat is that we have on some SKUs capacity constraints that actually will help us when we are starting up the new line in Ostovald. So that’s why we’re confident on when we’re moving up things sequentially that we will have the orders in the book on the SQ that we start from the beginning. But of course, there will be low amount of volumes in the start, and that will, of course, have have an overhead effect, but we will get back back on that.

Daniel Schmidt, Analyst, Danske Bank: But is that a much bigger operation compared to what we saw in terms of start up cost in Lithuania. Is that fair to say?

Jonas Tunstall, CEO and Managing Director, Scandi Standard: No, not in terms of how we look at the effects when we’re ramping up things. Lithuania is more a value chain ramp up with bigger effects when we’re starting. On the other hand, Ostovald is a production capacity that we will grow in. As we have said from the beginning, we’re increasing our capacity with 90%. So it will not be fully up and running.

Of course, that will take a long time because it’s a plant that will grow within, but the cost of it will come sequentially and not at the same amount short term as Lithuania.

Daniel Schmidt, Analyst, Danske Bank: Okay. Good. And just maybe a very detailed question, maybe to Fredrik. Depreciation are lower in RTC this quarter compared to last year and they’ve all you’ve added these acquisitions, at least Lithuania is clearly up and running. Is there any other parts of sort of assets that have been fully written off?

Is that the reason?

Frederic Sullivan, CFO, Scandi Standard: Did I hear correctly about it was about depreciation?

Daniel Schmidt, Analyst, Danske Bank: Yeah. It’s a very detailed question. It’s actually lower now in RTC compared to last year.

Jonas Tunstall, CEO and Managing Director, Scandi Standard: It’s

Frederic Sullivan, CFO, Scandi Standard: I would say it’s mainly far correctly. To no. Let let me get back to you on that specific question, mister.

Daniel Schmidt, Analyst, Danske Bank: Yes. Another question for you, Frederic, maybe. Did I get you right when you said that the capital expenditures is $550,000,000 for the sort of guidance for for ’25, and then on top of that, the 03/30. Is that correct?

Jonas Tunstall, CEO and Managing Director, Scandi Standard: Yes.

Daniel Schmidt, Analyst, Danske Bank: And is that still to come? Is that correct? Part of that $3.30 is also still to come this year? It hasn’t been sort of cash out yet?

Frederic Sullivan, CFO, Scandi Standard: No. The $3.30 has been paid.

Daniel Schmidt, Analyst, Danske Bank: It’s it’s a All So of that is already sort of in the cash flow?

Frederic Sullivan, CFO, Scandi Standard: Yes. In the first and second quarter.

Daniel Schmidt, Analyst, Danske Bank: And in terms of maintenance CapEx, so how how to put it, the $5.50, how much of that has already been sort of in the cash flow and how much is to come in the second half?

Frederic Sullivan, CFO, Scandi Standard: About almost 200 has been impacted in the first half year. Rest is the second half.

Jonas Tunstall, CEO and Managing Director, Scandi Standard: It’s important to state that it’s not maintenance CapEx. Is

Daniel Schmidt, Analyst, Danske Bank: No. No. Regular CapEx.

Jonas Tunstall, CEO and Managing Director, Scandi Standard: Yeah. It’s regular CapEx that we’re developing in our home markets. The other ones are linked to the acquisitions.

Frederic Sullivan, CFO, Scandi Standard: Yes. I’m preparing the factory in Netherlands for install production.

Daniel Schmidt, Analyst, Danske Bank: Yeah. Thank you. That’s all for me, guys.

Frederic Sullivan, CFO, Scandi Standard: Thank you.

Operator: Thank you. We have no further questions in the queue, so I’ll hand the call back over to the management team for any closing comments.

Jonas Tunstall, CEO and Managing Director, Scandi Standard: Yes, no further comments from us. We want to thank you all for listening in to this call and hope you have a good day. Thank you very much for joining.

Frederic Sullivan, CFO, Scandi Standard: Many thanks.

Operator: Thank you. This concludes our call. Thank you very much for joining. You may now disconnect your line.

Daniel Schmidt, Analyst, Danske Bank: Thank you. Cheers. Bye.

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