Humble Group AB (publ)

Good morning, everyone. Welcome to Humble Group's quarterly presentation for the third quarter in 2024. My name is Simon Petrine. I'm the Group CEO and with me I have Johan Lennartson, our Group CFO. Good morning, everyone. So to start the presentation, we just want to highlight a few things about the quarter. I think it's been a solid start after the summer with some tangible growth. We have a very eventful quarter with our new financial targets communicated. We had a capital market stay and we also did the list change to Nasdaq main market. What's really rewarding to see in this quarter is that we have actually been starting to do some really good cash generation, despite having a tie-up in inventory due to the high months coming in October and November. And we have a strong belief that we are going to continue to delever the business towards our targets of below 2.5 times EBITDA. We also think that we are well positioned going into the fourth quarter. It started strong and we are well prepared for 2025. So let's dig into the figures here.

Our net sales came in just below 2 billion Swedish crowns, and this was comprising a total growth of 9%. The organic growth for the quarter amounted to 10.3%, so the total growth was a little bit negatively impacted by currency impact and the divestment of a subsidiary in the first quarter. We also noted that we had a strong positive momentum in our quality nutrition segment that grew by 18% quarter on quarter. And the future snacking segment had a little bit headwind due to some strategical terminations of distribution contracts in our first class brands subsidiary.

So I think overall with the growth, I'm happy to see that we're back to double digit organic growth. With our new targets, we are saying that we are going to primarily reach them with organic growth. We have a strong outlook for next year with many exciting things coming up ahead. But we can really see that we have tangible growth in all of our business segments. And for those of you that follow us, you will also recognize that we now report gross sales in our quarterly reports, which actually makes a more transparent picture of the growth in each segment. To give an example, if our brands within Future Snacking or Quality Nutrition are selling products through our distribution segments, it will get eliminated in the Future Snacking and Quality Nutrition segments. So this is a way for us to give you all a clearer view of the actual growth in each segment when we are driving synergies by distributing our products within our own subsidiaries. As Johan mentioned, I think quality nutrition has some really, really strong momentum. We can start to see the initiatives coming into play by ramping up the production and also the strong success in Australia with body science. Overall, sustainable care is growing nicely, but meeting tough comparables in the quarter. But we have a solid, solid, strong growth underlying in the segment. Nordic Distribution, we've also communicated one of the big initiatives that we have highlighted for next year with Hammarkväll. But we can also see that we're reaching more and more retailers and we bring more of our products out to the market. And then lastly, Future Snacking. Overall in future snacking we have really strong growth in the companies. FCB is the only one dragging it down. But I'm confident that next year when we have like for like comparable peers without these external distribution contracts that takes the net sales down, it's going to be strong growth in FCB as well. And we have some really interesting initiatives in that. To round things up, I also just want to highlight, I mean, we're growing plus 10% organically in volume, like we are driving volume growth there. And you can clearly see that we are growing faster than the competition in the market. So let's dig into the gross profit a bit.