Humble Group AB (publ)

doubled their adjusted EBITDA for the quarter, while we had some negative impact in the sustainable care segment, mainly due to the headwinds in the UK segment, as mentioned before.

Yes, and let's talk a bit about future snacking. I mean, I think it's really rewarding to see. We've been talking about it for a couple of years now that we are investing. We have a really strong demand, more than 3,000 tons of candy that we can't deliver upon because the demand is so high. But we can clearly see here that the investments that we have been made in our facilities to scale up here is actually reaping some really good profitability. Increase of net sales of 22% and gross profit of 28%. And also, we can also see the operating leverage here with the beta up 98%. And mind you all, this is despite increasing some investments significantly into personnel, marketing, and sales in our growth brands. And despite that, we're making money on them, which I think is quite hard to do in FMCD when you conquer new markets. Pandian Trueco still remains very strong, ending on a strong first six months for the year, and we expect to continue to grow them for the last part of the year. Arena Confectionary, our manufacturers, we see some really tangible growth, and we have also, in Grans, for instance, already made the same profit in the first six months that we made in the full year last year. So our strategy here to invest to scale is working, and we know that we have the demand. Looking into sustainable care, this is the disappointment for the quarter, and there are some really specific reasons for that. UK market had a couple of different headwinds with change labour laws. We had cyber incidents with, not in our company, but with some of our key retailers that we supply with products. We had less than 70% reduction in volume intake for the first part of the quarter. And this impacted specifically Solent Group, which has been a growth company for the last years that we have owned it. We expect the company to grow in solid double digits next year, and we are going to have a bounce back in the second half of this year. But it has been a turbulent quarter in the UK, although we have some highlights. Amber House still doing very strong. Humble Coen 80 are recovering nicely. So just if we surface those headwinds for the period that we've had, we are confident in the bounce back of this segment over time. Talking about quality nutrition, in the last quarter presentation I mentioned that I think we are going to have a recovery in the second half of the year. We have already seen that we are back to growth in this quarter. We do have some challenges with the gross margin due to the volatile raw material pricing. We are working intensively to see how can we utilize our group scale to help our companies here source at more efficient volumes and also cost. What's really good to know here also is that our key customers in both powders and bars, which has been struggling in Q4 and Q1, they are back. They have increased their forecasts and have a good outlook for the second half of the year. In our last segment, Nordic distribution, here we can really see that our strategy of consolidation is working. The profitability is up 28% more than the net sales growth. And this is due to the sort of platform consolidation we have made in a few of the companies, especially Prevab. We can also see here that the demand is really strong. We had a bit of a push into April with the Easter products. But despite that, we have also throughout the quarter had a really solid growth. And we have also just invested in new warehousing for Privat Näsjön Trollhättan because we have been running full days just to be able to deliver the products to our customers. We see some really strong trend here growing a lot faster than the market in general, and it's because we are doing a good job and we've been able to secure several strategic partnerships. So in terms of the cash flow.

Yes, looking at the cash flow for the quarter, we came in on 129 million crowns for the quarter in cash flow before changing net working capital. And after changing net working capital, we ended up in 44 million crowns, which is a significant improvement from the same quarter last year where we had a negative cash flow of 49 million crowns. And we could see the strong delivery in June, as Simon mentioned, the strong momentum and demand for our products also drove up the accounts receivable, especially in the networking capital that have a negative impact for the cash flow for the quarter, with 72 million crowns especially. So with that said... Yeah, we could also mention that we paid a little bit extra tax, especially in our UK companies for the quarter, right? Yeah. That's true. Due to a regulatory change in the UK, where our UK subsidiaries now belong to a group, depending on the group size for Humber Group in total, they now pay their taxes in advance instead of paying them in arrear, which they have been doing in the previous year. So that had a negative impact with approximately 12 million crowns for the cash flow in the second quarter.