Humble Group AB (publ)

Good morning, everyone. Welcome to Humble Group's quarterly presentation of the first quarter 2025. My name is Simon Petrine. I'm the Group CEO of the company. With me today, I have Johan Lennartson, our Group CFO. Good morning, everyone. So before we dig into the details of the quarter, I just want to share a few highlights. We've had a quite strong start to the quarter with strong development in the beginning of the quarter with a little bit softer trading by the end of the quarter, mainly due to seasonality. We didn't have any sales from the Easter and that goes into April. So we're quite confident about the trading for the first six months of this quarter and the year. Looking at the highlights, it's really rewarding to see that we have been able to continuously improve the gross margin, we're making more money out of the sales that we're having, and we are investing that additional profitability into growth initiatives. We can also see that we've been able to maintain the profitability margin despite those quite significant investments. And we have also seen a significant improvement in the operating cash flow after networking capital, which is also one of the key priorities that we highlighted in the fourth quarter report. This is also something that we are going to maintain a high focus on, given that we had a quite weak cash flow in the first six months of last year. priority going forward. One of the big highlights for me this quarter is that we are starting to really see the results of the investments and the initiatives that we've been executing upon in Future Snacking. It's really the highlight segment of the quarter and especially Truco and Poundy where we had a really strong growth of more than 100% for the period. That being said, we have also further initiatives to execute upon quality nutrition, the weakest segment in the quarter. We have an interesting pipeline for the second half of this year and also one of the key priorities for us. But let's dig into some of the details.

And looking at our net sales, it came in on 1.9 billion. It's comprised of a total growth of 4% with an organic growth of also 4% with limited currency impact. Looking at the segment-wise, we saw a strong contribution from the future snacking segment, mainly driven by a really solid growth for some of our strong brands, Pandia and Truco, grew their sales by nearly double the sales in the quarter. We had some challenges in the quality nutrition segment with some delay or postponed orders in some of our production facilities causing some delay in sales and profitability. Looking year on year, we can also see where we had some negative impact from the late Easter and this impact is mainly shown in the Nordic distribution segment for the quarter.

Yes, talking a little bit about So I had a lot of questions the last few weeks from investors asking us, how will this impact Humble Group? Around half of our group sales is in SEAC. But of course, the outstanding currencies, we will have a direct impact when we convert a lower international currency to SEAC. That being said, we are very positive about this because looking at all of our Swedish companies, many of them have either direct or indirect import of goods in international currency. And this is also something that we know have been reducing our gross margin historically. And over time, looking at a few quarters down the line, we assume that this is going to improve the gross margin just with a stronger SEC currency. Overall, as Johan mentioned, we had strong growth in three out of four segments. Quality nutrition also, as in Q4, was a bit weaker. That being said, we will talk more about quality nutrition, and it's a strong macro growth segment overall, so we're not worried about it long term. Future stacking, the real highlight here. Pan and Trueco, not nearly double sales, but actually quite a bit more. So really rewarding to see that the investments we are making in those companies are really starting to show results.