Fractal Gaming Group AB (publ)

welcome to the fractal gaming group qt 2025 report presentation for the first part of the presentation participants will be in listen only mode during the questions and answers session participants are able to ask questions by dialing pound key 5 on their telephone keypad if you are listening to the presentation via webcast you can ask written questions using the form below now i will hand the conference over to speakers ceo jonas holst and cfo karen and jim arson please go ahead

Hi everyone and welcome to today's presentation of the Q2 2025 report for Fractal Gaming. In this call, we'll walk you through the key highlights from the quarter, focusing on our business status, our financial performance and the strategic progress that we have made so far this year. We are pleased to report that Fractal has maintained strong momentum throughout the second quarter, resulting in the strongest half year in our history. At the same time, we continue to navigate an uncertain macroeconomic environment, but we have a clear plan in place to mitigate the effects. Today, we'll talk both about our achievements and the challenges that we are facing. And as always, we're happy to answer your questions at the end of the call or individually afterwards. Starting by looking at the highlights, Q2 was another standout quarter for Fractal. It was marked by continued strong performance driven by our strategic initiatives in combination with an increased end consumer demand. We are really pleased with the results, proud over the momentum that we've built and how we were able to strengthen our global presence during the year. Our total net sales reached 215 million SEK, which is an increase of 50% year on year with an organic growth in US dollars of 66%. Looking at USD sales, it is the third consecutive quarter that we are reporting the second highest net sales figure in a single quarter in our history. All regions contribute to the strong growth, but America stand out with over 60% growth, driven by strong consumer demand, record sales on Amazon, and successful product launches. Sales out to end consumers grew by 40% in the quarter, with robust performance across all regions. This was fueled by consumer demand, particularly following the spring launch of new GPUs, which accelerated the upgrade cycle amongst gamers. Our strategic initiatives with the successful launches of Scape and Meshify 3 combined with a sharpened focus on channel management and disciplined price management in the American market also boosted this development. Further, we worked hard to replenish the low inventory levels that we saw at the end of Q1. This contributed further to our strong top-line growth and positioned us well for the fall. So all in all, these achievements underscore the effectiveness of our strategy and our ability to adapt to market opportunities and operational challenges. EBITDA rose to 20 million SEK with a margin just over 9% compared to 7 million and just below 5% in the same quarter last year. Our product margin for the quarter was 36%, impacted by external headwinds from tariffs, higher fate costs and currency fluctuations. We aim to improve these margins in the coming quarters as the measures we put in place to address the macroeconomic challenges begin to deliver results. Finally, we closed the quarter with a strong net cash position of 66 million SEK and we continue to invest in future growth by driving innovation, winning design and international expansion. In Q2, we introduced several important additions to our product portfolio, and they have already made a significant impact on both brand and financial results. The launch of Meshify 3 marked the next chapter for this important series, and it has quickly earned praise from the media for its exceptional airflow, thoughtful engineering and ease of assembly. Meshify 3 is reinforcing our leadership in the high performance case segment. We've integrated subtle lighting directly into the case and the series is offering a range of configurations, lighting options and colors that caters to a wide spectrum of gamers. In combination with our new high performance Momentum fans, it enhances cooling performance and allows users to personalize their builds. We've also launched AdjustPro and AdjustPro Hub, a combined software and hardware solution that enable users to control lighting and fan settings on various Fractal products through a web-based tool without any installation. These products strengthen our position as a leader in the market. It's setting a standard for what modern gaming setup can be, and it ensures that Fractal remains the brand of choice for today's gamers who increasingly value both performance and design. The quarter also marked a major milestone for Fractal as we entered the audio category with the launch of our first gaming headset, Fractal Scape. With Scape, we brought our Scandinavian design philosophy and focus on core functionality into yet another product segment. It is designed to blend into modern gaming setups, offering minimalist aesthetics, discrete lighting and wireless charging. Scape was developed in collaboration with our community and the market response has been outstanding. It quickly became a top seller at major retailers, reaching the number one spot at Newegg in the US and Inet here in the Nordics. And it has received excellent reviews from both media and early adopters. With Scape, we are reinforcing our commitment to enhance the entire gaming experience. And it demonstrates, just as Refine did last year, our ability to challenge norms in the market and to deliver products that resonate with both enthusiasts and mainstream gamers around the world. Now, let's also take a look at the broader market development. In this quarter, we saw a clear lift in demand thanks to the launch of new, more affordable graphic cards These new GPUs have made advanced features accessible to a much broader group of gamers, as prices have started to stabilize and availability improve. This is great news for consumers and for the industry, as it's boosting the upgrade cycle for the entire PC market. Further, major new game releases like L and Ring Night Rain or Doom The Dark Ages are further driving the need for next-generation hardware. And as we predicted, we're also seeing a shift in what gamer wants. Today's gamer is older and more design conscious than before. And we see a trend that the direction that Fractal has been leading for years is growing. These developments reinforce our strategy and is proving that Fractal is well positioned to capture the growing demand for premium design-driven gaming gear. And with that, I'm handing over to Karin to take us through the specifics and the details of the Q2 financials.

Thank you, Jonas. Let's take a closer look at our second quarter performance, starting with net sales. In Q2 2025, we achieved the second highest net sales in Fractals history at constant currency, surpassed only by Q2 2023. Net sales reached 215.4 million, which is an increase of close to 50% compared to the same period last year. Organic net sales growth in US dollar was strong at 66.1% and sales out through our track partners increased by 39.5%. This strong performance was primarily driven by continued robust demand for our core products, our PC cases, which remain the main growth engine for the company. We also saw positive contributions from our expansion into new product categories, the launch of our first gaming headset, Scape, and the refined gaming chair. It's also worth noting that we entered the quarter with low inventory levels in our channels. Throughout Q2 we actively worked to replenish channel inventory which not only supported our strong sales performance this quarter but also positions as well for the second half of the year. As we enter Q3, we do so with healthy and normalized inventory levels across our channels, ensuring continued momentum. Another important driver was the ongoing launch of new PC components, particularly graphics cards, which continued into Q2 and further increased consumer demand for upgrades. Sales out remains at high level and we have now delivered yet another quarter of strong growth in sales out to end consumers. This is a clear sign that our products continue to be well received in the market and that underlying demand remains healthy. All these factors contributed to a very strong quarter for Fractal and we are well positioned to build on our strong performance going forward. Let's walk through our segment and regional performance for Q2, starting with the product categories. Sales of cases amounted to 192.6 million compared to 128.3 million last year, a growth of 50.1% year over year. Cases continued to be a strong growth driver supported by the launch of Meshify 3. The other product category, which includes fans, power supplies, water cooling, and not least our new product categories, shares and headsets contributed 22.8 million, a 47.9% increase year over year. Looking at the product mix, cases accounted for 89% of total net sales, slightly up from last year. The other product category represented 11% with continued growth in absolute terms. We expect the other category to expand further as our new product categories gain traction. Now to regional performance. The Americas delivered the strongest year-over-year growth with net sales increasing by 60.9%. The region's share of total revenue increased to 35.1%, up 2.4 percentage points year over year, driven by solid momentum. EMEA remained our largest market, contributing 109 million in net sales, a 43.2% increase year over year. EMEA accounted for 50.6% of total revenue, down 2.4 percentage points compared to last year. APAC delivered 30.8 million in net sales representing a 49.4% growth rate. The region maintained a stable share of 14.3% of total revenue. So let's move on to the product margin. In Q2 2025, product profit amounted to 76.7 million, corresponding to a product margin of 35.6%, compared to 41.4% in the same quarter last year. The decline in margin was mainly driven by external factors. US tariffs reduced the margin by approximately 3.5 percentage points. To mitigate some of the impact of tariffs, we increased prices in the US market starting mid-July. This did not affect the Q2 results, but they are expected to have positive effect in the coming quarters. We have also continued our strategic relocation project to enable shifting parts of our production out of China, aiming to reduce exposure and risk. Currency fluctuations primarily related to US dollar exposure had a negative impact of 3 percentage points, which is an effect of 100% of our sales and manufacturing costs being in US dollars. Freight costs reduced margin by 1.8 percentage points. These costs are split between handling, which is recognized in the month containers arrives in the US, and freight, which is recorded when the goods are sold. The high number of shipments during the quarter was partly driven by increased demand, but also by a strategic inventory buildup ahead of the expiration of certain tariff exemptions, which remain uncertain. As a result, more containers were shipped than usual to the Americas. The margin impact was partly balanced by several positive effects. A stronger product mix with higher sales of premium margin cases added 1.3 percentage points. Lower sales discounts contributed 1.2 percentage points. Discounts levels are typically lower in Q2 and tend to increase in Q3 and Q4, which may influence margin development in the second half of the year. While the product margin was lower than last year, it demonstrates our ability to manage a challenging external environment. We are advancing several initiatives including price adjustments and relocating parts of our production that are expected to support margin recovery going forward. EBITDA increased to 19.8 million during the quarter with a margin of 9.2%, representing a year-over-year improvement of 4.4 percentage points. As previously mentioned, the product margin in Q2 was negatively affected by external factors, which put pressure on overall profitability. In addition, operating expenses increased compared to previous year, first kickbacks increased in absolute terms primarily driven by strong sales growth and second warehousing and storage cost increased due to elevated inventory levels to summarize the ebta margin reflects a combination of pressured product margins and higher operating expenses linked to our growth and inventory strategy underlying profitability remained solid although the quarter was impacted by both external and strategic factors turning to operating cash flow we saw a decrease compared to q2 2024 this was primarily the result of our strategic decision to increase inventory in preparation for anticipated tariff and cost changes While this inventory buildup had a temporary negative impact on cash flow for the quarter, it was a proactive measure to secure our supply chain and ensure our ability to meet customer demand going forward. As inventory levels normalize, we expect operating cash flow to recover. our financial position remains very strong with net cash of 65.7 million even after paying our first ever dividends of about 40 million in q1 this shows that we are able to return value to shareholders while still maintaining the financial flexibility to invest in future growth and innovation moving on to the income statement In Q2 total revenue reached 221 million representing a strong 50% increase year over year. This growth was driven by continued high demand and successful product launches. Good for resale was negatively impacted by higher tariffs, currency effects and freight costs. However, this was partly offset by improved margins within cases, which contributed positively to the overall product margin. operating expenses increased mainly due to higher kickback costs related to a strong sales growth but also cost related to maintaining higher inventory levels as we proactively built up stock to secure our supply chain personnel expenses increased as a result of strategic hires and annual salary adjustments supporting our long-term growth ambitions Net financials were negatively impacted by the USDC exchange rate but our interest expenses remained low as we maintained a strong net cash position and did not utilize our credit facility. Despite these effects on margins and costs our underlying profitability and financial position remain solid This gives us the flexibility to continue investing in future growth and to deliver value to our shareholders. With that, I hand over to Jonas again.

Thank you, Karin.

So, as we now wrap up the Q2 report, we are proud to conclude that we continue our strong momentum with another standout quarter. It is the second strongest organic sales in our history and with a growth of 66% year over year. Net sales in SIEC grew by 50% and sales out from track partners increased by 40%. This growth was driven by increased consumer demand and strong results from our strategic initiatives in combination with successful efforts to replenish low inventory levels from Q1, ensuring we could meet rising demand across all regions. Our EBDA margin landed at 9.2% and our product margin at 35.6, both impacted by external headwinds including freight costs, tariffs and currency fluctuations. We believe that we can gain back margin during the coming quarters as our mitigating actions take effect. On the product side, the refined gaming share along with the launches of Scape and Meshify 3 played a major role in expanding our brand footprint and strengthening our position in the global gaming market. Financially, we remain in a strong cash position, which enable us to continue investing in strategic initiatives and long-term growth. While we do see continued uncertainty in the global business environment, particularly around the US tariffs, we are actively managing these risks through pricing strategies and supply chain adjustments. And looking ahead, we are confident in our ability to drive profitable growth through innovation, design leadership and international expansion. Our updated financial targets towards 2030 reflect this ambition and we remain committed to creating long-term value for our customers, partners and shareholders. So with that, we conclude the presentation today and are moving over to the Q&A. Thank you.

If you wish to ask a question, please dial pound key 5 on your telephone keypad. To enter the queue, if you wish to withdraw your question, please dial pound key 6 on your telephone keypad.

The next question comes from Jacob Benin from Red Eye. Please go ahead.

Yes. Hi, Jonas and Karin, and thanks for taking my questions. Of course. I would like to start with a question about sales in the other category so in US dollars sales in the other category seems to be down by some 20% if you look quarter over quarter so it seems like an organic decline here despite the release of scape during the quarter as well so firstly is this development according to your expectations And secondly, can you explain a bit more about the dynamics here, like what is happening under the hood if we look on a quarter-over-quarter basis?

That is a result of multiple factors. First of all, if we remember, we did a quite big push in Q1 to sell out old inventory when it comes to water coolers and PSUs and others. That then is also under other categories. That same level of sales was then not repeated in Q2. So there you have a significant portion of the difference coming just by that point. Scape then is also launched quite late in the quarter. So even though it had big impact, especially in the absolute last part of Q2, it's not sort of a full quarter effect for that product either. And then finally, we had a fairly good sales scene of Refine in the beginning of the year, allowing us to have a quite stable and good sales development out of that product through both Q1 and now Q2. So it's a combination of factors that is playing in, and it's not something that is surprising us, but especially the drop in sales of the old categories, which is definitely planned.

That's the big reason.

Okay, thank you. And so did you say also that there were maybe some channel inventory related effects when it comes to refine that impacted like the net sales of shares in Q2 compared to Q1?

not not dramatically or so but but i mean it is uh we we had all the situation all through the end of last year as we recall with the refining out of stocks we had a channel fill up in the beginning of the year of that product that we have not had to repeat here in in q2 so from that point of view okay thank you very much and uh is it possible to talk a little bit about like sales dynamics

and how your sales from a new category like develops after launch. For example, I mean, first you produce and sell launch quantities for a selected number of resellers and you do a lot of marketing activities that drives demand at launch. But like after that, is it expected to see kind of like a slight drop off in demand for a couple of quarters before sales pick up again? Or how should you think about this in general terms?

Without going too much into details of that, of course, we have always a launch surge coming when launching a product, and then sales can slightly go down a bit before it gradually increases again with the long-term demand coming into effect. So there are these dynamics, and we talked about that before. We refined, I think, these calls and of course it's similar when we're seeing other products but of course the interest of product at launch is of course driving an immediate interest and especially when it comes to then the sale selling effect which both to have that stock available in the channel but also then for the coming weeks and months before we have replenishment coming in so sales out and sales in dynamics is slightly different

okay perfect thank you and I so I have to ask a little bit about the scape as well and to me it seems it seems like a like a huge success when you look at reviews and also sales data from resellers so can you give us some more color on the reception so far like was this in line with your already high expectations or

We are very satisfied and happy with the reception of Scape. We were hoping for this. We've seen indications of that previously when it comes to reactions all since Computex last year and that the product now is hitting the market and we're seeing end consumers and the reviews coming in um you know in in line with with with those early on that early on hope is is fantastic to see we are super satisfied with scape it's been a great launch um and how we want to enter a category just as we did with refine it's coming in it's reshaping how um gaming headset seen and what it should be and, and, um, um, yeah, proving that, that, uh, the mix of, of design and functionality that we bring to the table is something different. So, so we're really happy with that.

Yeah, that seems very encouraging. And what, what is the plan with scape for the remainder of your key? Is it possible to talk a bit about that? Like what is the next phase and steps in, in growing sales from scape?

Now, we do see with Scape just as early on with the refine and that we're selling out in many channels and that we need to work on replenishing, getting new stock into the market. So that's number one priority in getting the quantities that we need in and We're still in the early stages, meaning that we're focusing on the launch partners. And then we know just as with Refine and other products that we can broaden our channel network with a product like this. And we have opportunities to look much broader than where we are today. But that's later on. So second half 25 and early 26, we should see that coming.

Okay, perfect. And if we look at the other category as a whole, I think gross margin in the quarter amounted to 29%. And correct me if I'm wrong here, but I think you have previously stated that new product categories, which I believe is starting to make up the bulk of the other category, will have product margins that are roughly in line with the overall group. What work needs to be done to increase the product margin here towards the group average?

Karin, you want to start or stay?

What I can say is that, yes, Jacob, you're right. We are having slightly lower margins on our new product categories. But we are, of course, continuously working to improve profitability across the portfolio. So the average margin of our business is the most important. But of course, we want to grow the margins on our new product categories. And I think we talked about this before when it comes to new product categories. In this case, Scape and Refine, there are a lot to do regarding margins going forward. They are new products, first time we sell them. So there will be possibility to negotiate with suppliers, find better ways to do things, et cetera, et cetera. So value engineering, more or less.

Okay, I see. How long after launch of a new product category like this do you expect it to take before a category is generating your desired margin? Is it maybe a year, two years, or is it even a longer work than that?

It's very hard to say. I can't comment on that, but that's a continuous work we're doing. I mean, our main focus is profitability and right now increasing our margins. So it's definitely on the table.

Okay I understand and my final question is regarding APAC and I believe on the capital markets day you noted that you see APAC as a strong growth region for Fractal so how is your work on going to get a stronger foothold here and what initiatives are you taking in the region specifically?

doing quite a lot when it comes to our presence in the APAC market just as of course with other regions but it should be stated that it's also a long-term ambition to grow APAC and not something that you would see an immediate effect of. We have different setups in the different markets down there so ensuring that we have the right relations with our partners and both existing and especially new ones in certain markets, but even the actions that we're already taking is having effect where we're seeing our market shares and our position grow in the key markets in the regions already. So the APAC region is definitely a long-term growth engine for Fractal, even though you might not see it already in a quarter like this, just as AMEA and NAMR are seeing this extreme strong growth rates.

Perfect. That was all for me. Thank you very much for the answers. Thanks for all the questions.

Thank you. The next question comes from Simon Granath from ABG. Please go ahead.

Hi, Jonas and Karin, and thank you for the presentation and congrats on the strong results. I'd like to start on the gross margin outlook going into H2. Could you talk about some of the takes and puts for the coming quarters versus Q2? Thank you.

Yes, when it comes to margins, we have talked about that a lot. We had a Q2 that was negatively affected by external factors. Tariffs and currency together was 6.5 percentage points. And what we are doing to improve this and how we are looking at margins ahead. Well, as I said previously, we have implemented price increases in the US markets starting mid-July and they are expected to give us positive effects in the coming quarters. And we are continuing with our strategic relocation project to move some parts of our production out of China. And this project is progressing well. So that will also give effect on the margin and of course when it comes to gross margin we are having ongoing negotiations with both existing and new suppliers to secure that we have the optimal pricing and value. And what we have done now in 2025 to further reduce tariff exposure is that we have built up tariff stock in our regional US warehouse during the spring, which will help us during fall. when it comes to tariffs, how we will handle that and improve margin. When it comes to product mix, as I said before, we saw that cases was the strongest category, of course, and we can say that we expect cases to remain our core category. and representing approximately 85% of sales for the remainder of the year. So it will be our core product. But of course, our new category will take place as well and grow in absolute terms. So we expect the margin to improve over time, but we have had extremely tough when it comes to external factor this quarter.

Very much indeed.

Thank you for a very colorful answer. And I'd like to continue with one more question from the price increases. Could you describe in rough terms on what magnitudes we are talking about? Some market players have talked about some 10% increases in rough terms. Is that a reasonable level to expect? Another question is on the move of US-related sales to other markets than China. Are there any costs associated with that that we should be aware of? Thank you.

Could you repeat the second question, Simon?

Should there be any extraordinary costs relating to the move of production to other facilities than China?

Okay, so first on the price increase, yeah, I mean, that's open. You can check where our prices are up approximately 10% in the US market since July 15. And of course, on end consumer side, then we're working on our relations with the channels, of course, to make sure that we can get as much as possible to recover our margins. But of course, it's one of the effects to mitigate the tariffs or one of the actions, not all. It's an important aspect for Fractal as well to... to maintain the value for the consumers and to our community. So it's a constant work, understanding where we are, what kind of tariffs we are facing or will be facing. And also, as Karin has mentioned before, when it comes to the increased inventory levels, especially in the US, has allowed us a bit of stability now and knowing that where we will be for a couple of months at least when it comes to our tariffs. our inventory cost and cost for products. So 10% up approximately today. Then on the out of China sort of production initiatives isn't associated with any particular costs that will be material in that sense. We are doing these kinds of activities all the time. As we talked about during our capital markets day, we have a very broad network of suppliers today. Moving production, switching factories if that's needed and so on is something that we do regularly. So it's not something that is out of the ordinary for us. Of course, setting it up in a new location is one new thing, but not so much for us, but more for the partner that we're doing it with.

So that is not material in that sense.

Crystal clear.

Thank you. And I do appreciate that this might be a hard question to answer, but demand for your cases have naturally seen a tailwind from recent GPU launches and the subsequent PC upgrades. Historically, however, there have been cyclicality in the demand uplift from such events. So I'm curious on where sort of on the demand curve we currently are. Are we in the middle stage or closer to the upper limit considering the currently robust performance that not only you are reporting but also competitors of yours?

Yeah, seems to be reporting better numbers. But as we talked about before, we believe the upgrade cycle this time is longer than before. This has already sort of been proven. It was a steeper sort of increase previously when new components has been launched. And this time it has been a gradual increase over the year with quite stable demand. So our sales out looks really good in that sense and throughout the quarter and showing a positive trend for the fall as well. Then we need to look at the other macroeconomic factors playing in and if that will impact anything on demand side. But we believe that it's a longer cycle that will last through 25 into 26 at least.

Perfect, appreciate that. And a follow-up question from me. Looking at the positive reception of SCAPE and putting that into context of the fact that you are gradually expanding into new product categories, I'm curious to the sort of timing on when we might see further expansion into additional areas. No need to be specific on this, but it would be interesting to hear if you have already started such initiatives.

um i mean practice long-term plan uh here as we talked during capital markets days and others as well um it's clear i mean we we are we are expanding our portfolio to cater to the gaming station and deliver a better gaming station to our community and that does include also potential new uh products investigations ongoing so to say um and and of course we we know where we're heading But we can't really go into details on when that will be. Now we just released Scape, meaning the second year in a row coming up with a new quarter. And we'll see how the trend will continue.

Fair enough. Thanks for having my questions. No problem at all. Thank you.

There are no more callers at this time. So I hand the conference back to the speakers for any written questions and closing comments.

yes so we have had a lot of comments regarding the other category but most of those questions have already been answered so i i i will not go into them now but one here is do you plan to enter additional product segments if yes can you give any hints about which ones

Similar to the last question there from Simon, but now we can't go into detail on what kind of product categories that we are looking at. But of course, it will be somewhere where we can use the strength of Fractal, which is the combination of our design and functionality performance thinking. Somewhere where our Scandinavian gaming tech will flourish and deliver something new to the consumers. So... A way to impact the gaming station.

Yes. Next one. Is it correctly understood that the currency effect on gross margin is mainly caused by timing and should disappear if the US dollar is stable going forward and even turn positive if the US dollar appreciates again? Yes, I would say that is correct. The currency effect on gross margin is primarily related to timing differences between when we purchase inventory and when we recognize revenue, as well as the impact of other things, but mainly these two. And if the US dollar remains stable, we expect this effect to largely disappear over time. And should the US dollar strengthen again, the impact would be positive for our gross margin. So yes. The next one, after the spike in freight rates in Q2, current freight rates from China to US is down more than 50% compared to last year. Is it fair to expect this to reflect positively in your freight cost in Q3 or are timing effects, fixed rates or similar pushing the positive effect further into the future? And yes, it's correct that the freight prices have gone down. We have seen freight prices in Q1 around or above $4,000 per container. And we could see that in April and May and June, they were around $2,000 to $3,000. So that will definitely give an effect. And as I also said previously, when it comes to freight costs in Q2, we have had a lot of handling costs in the quarter. We have had a lot of containers coming in due to the stock building in the American warehouse, which will probably not affect the freight costs going forward in the same way. So we expect the freight costs to go down going forward, yes. Other external expenses amounted to 35 million, up by 5 million SEK year over year. Is there anything specific driving other external costs and should we expect this level to persist during H2? And yes, it's correct that our OPEX has increased by approximately five million SEK year over year, and the main driver is higher kickbacks resulting from stronger sales. And in addition, as I've talked about a little bit, is the warehousing cost. It has been higher due to inventory built up in the American warehouse. So what we can say is that kickbacks is what it is when it comes to, because it's connected to sales, but when it comes to warehouse costs, we expect these elevated inventory related costs to persist a little bit over the coming quarters, but will go down when inventory go down. good morning to karen it sounded like the additional freight costs affecting gross margin have been for warehouse build up in the us does it mean that products that will be sold in h2 already have had their freight costs now in q2 higher gross margins in in h2 um does it mean that products that will be sold in h2 already have had their freight cost now yes to some extent i mean normally when it comes to freight cost the The actual freight cost, it comes when we sell or recognize revenue. But when it comes to handling costs for all these containers coming in, that cost takes directly. So it's both. But yes, some of it has already been taken in Q2. And that was it.

That was all the questions. Very good.

then we thank you all for for questions and interest today and looking forward to me to talk to you all soon again thank you