5/16/2025

speaker
Thomas Dahlstedt
Co-founder and CEO

Hej och välkomna! Vi ska idag presentera Nordrest kvartalsrapport 1 för 2025. Jag som pratar heter Thomas Dahlstedt och är tillika grundare och vd för koncernen. Bolaget har funnits i drygt 10 år och är sedan ett år tillbaka noterade på First North Group.

speaker
Not provided in transcript
Presenter of Financial Information

Mattias and Kjell and I, the CEO of the company, have been here for three years and will also be present today.

speaker
Thomas Dahlstedt
Co-founder and CEO

This presentation will take about 30 minutes, including a question time at the end. As usual, it contains a short presentation about the company as such, what we work with. We leave financial information, important highlights during the quarter and some time for questions afterwards, as I said. Nordrest, I founded in 2014 and we have managed to grow well in Sweden within the framework of food service. We are a clean food company and we have customers such as Försvarsmakten, Region Gävleborg, Volvo Cars, Ericsson, a number of schools and Swedavia. We maintain a systematic entrepreneurship and deliver a nice time experience. I will tell you more about this very soon. Our business idea is to maintain a systematic entrepreneurship. When the company started, we tried to find our own existence. We both wanted the local entrepreneurship, where you have a strong local boss for every restaurant. that can actually listen to the individual guest and customer, what you want to have at this particular restaurant, so that it is not a main office product that is delivered, i.e. a small degree of centralization. We have a lot of freedom, for example, for our management managers themselves to decide how the food that is to be served menu setting, and also the local logistics, implementation, etc. At the same time, many of our customers, the Defence Force, Ericsson, Volvo Cars, as large organizations, require that we have a rule following, a systematization, GDPR policy, HR policy, IT policy, etc. It can sound quite boring, but it is a necessary pain to be able to do these businesses at all, and that is the systematization itself. So what we are trying to find is the common ground between the local entrepreneur who actually has the passion and drive to carry out such a good restaurant offer on each site with also the combination that we have a rule and a system survival with quality management system, environmental management system and so on, where then our suppliers feel safe in the delivery as such. We say that we will deliver a nice meal experience and the meal experience actually contains three parts or four in our perspective. We have a model called MSN, it is the food itself as such, but we also focus on the service. and the environment. The environment consists of two parts. The DNA is the target environment as such, but it is also a question of sustainability, i.e. the environment from an environmental perspective in the current situation. And what we usually say is that it does not matter how good food you cook, even if you do not have a service that sits or you have an unpleasant or an unpleasant dining room and so on, then you will not have a nice meal experience. On the other hand, you can increase the meal experience by actually being better at service and meal environments and sustainability by food, even if you had a bad day in the kitchen and just delivered, we say we will deliver a 4 on a 5 degree scale, but it may have been a 3.2 in terms of food, but 5 in terms of service and 5 in the environment itself, then you think it was a nice meal experience. And that's how we get the whole thing together. We have a strategy where we focus on natural guest flows. And a natural guest flow, I will go into a little more detail before we talk about the different customer groups and what they mean and what the natural guest flow actually means for us in practice. If we then look at the customer groups we have, we have six customer groups. Defense, companies, campus we usually call it, university, school, hospital and travel. Defense is simple. There is a natural customer group. It is mainly the self-employed. It is a number of thousands every year and it is also increasing now due to the changed security situation that we have in Europe. And where you serve breakfast, lunch, dinner, dinner, a number of days during this basic training every year. And that becomes a natural guest flow where we can easily predict how many guests we will have every day, both today and in the coming weeks, since the education is stuck. If we look at companies, there are almost no guarantees today that you get a certain turnover when you join Ericsson or Volvo. It is up to us as suppliers to calculate how much penetration we will have of X number of employees. And if there are 10,000 employees, then maybe you have 2,000-3,000 eating in the restaurants. It is not that everyone is at work every day, for example. It is also that some do not choose to eat at work. And in that there are key figures. We try to find a higher degree of penetration than our competitors and in that way get the business going. This business also consists of two parts. The first is the traditional business mission where you have the business with Till exempel Eriksson. Men det är också i vissa fall med en hyresvärd där vi då inte har avtalet med själva företaget. Men det bygger på samma teori att vi ser att det jobbar x antal tusen i det här området eller i den här byggnaden. Och på så sätt så når vi i stort sett samma sak som om vi hade haft avtalet med företaget. Högskolor och universitet bygger på att det finns ett x antal tusentals inskrivna på campus och här räknar vi också med nyckeltal. Det är ett naturligt gästflöde, även fast det kanske är mer distansundervisning än innan covid. then you go to the university or the university to actually sit in the library and read. You have seminars, you have lectures, and the students are people and individuals who actually like to meet. And there the campus itself is a meeting place. Here we often do not have agreements with the university in the same way as with the company, but it is a rental agreement with, for example, academic houses. School, on the other hand, is much simpler. There it is pre-ordered. X number of students every day and where we deliver the number of school days that are on a year. Often 178 school days and then there are a few days off on this. Hospitality and elderly care, it's the same thing here. It's also roughly like defense, relatively easy to predict. It's a number of care places or a number of places in the elderly housing. Äldreboende är nästan det enklaste, för har man 100 platser så är det nästan alltid 100 ätande frukost, lunch och middag. På ett sjukhus så går det ner lite granna, vissa avdelningar stänger på sommaren, på helgen och så vidare. Men det är en relativt stabil volym över tiden och också väldigt lätt att förutse. Generellt då, jag tar det sen förresten, jag tänkte kommentera avtalstiderna lite grann här. And then finally we have Reza, and there we are in Arlanda with five units today and we own dinners and restaurants. And it's the same thing here, it's a natural guest flow where we see in Arlanda that we are some kind of oligopoly since we are four operators who work in there. When you have stepped in there, we have natural sales in what we do because there are X number of million residents every year. Same thing with dinners. We might not have built up dinners ourselves, but on the places where dinners are today, there are natural links where people stop, tank and so on, where we see that we have a consumption if we run a restaurant business. All in all, we would say that this is for us the natural guest flow. Many of these businesses also have very long contracts. Some are paid and some are private. But our business, I would say on average, we usually handle between four and seven years of contracts, where some parts of the contract period are options that are almost I would say that 97% will always succeed because it is both expensive and hard and it is not certain that it will get better if you do a new job. Then we go to the financial information, Mattias.

speaker
Not provided in transcript
Presenter of Financial Information

Yes, we do. Thanks for that. We have set up four financial goals for the company. It is that we will have an organic growth greater than 10%. We will have a profitability measured in pieces that is between 8 to 10%. And then it says that we are going to divide more than 50%. And then there will be a debt that is net debt compared to EBITDA, which is less than two times. If we look at the summary of the quarter, we see an increase in the net turnover compared to the same quarter last year. And this is actually our highest turnover ever for a first quarter. The largest part of the increase comes this time from our existing units. Usually, it is the net income of new units that stands for the largest part of the growth, i.e. that we open more units than we close. But this quarter, the net income has been affected by the fact that we have consciously chosen to develop some unlawful contracts within the customer group companies, as we mentioned in the previous presentation. Even if we have continued to establish new units, the decline has made the net growth a little lower than normal. In addition, we also have an increase in non-organic turnover, which mainly comes from the fact that we acquired units in Finland. Ibita has grown to 49 million, a clear improvement compared to 38 million last quarter. And that means that we improved the result and reached an EBITDA margin of 9.2% compared to 7.9% last year. And the improvement was driven by operational measures, among other things in the restaurants on Arlanda airport, as well as that we have developed unprofitable contracts within the customer group companies. A little bit about the customer groups. We have had growth in all of our customer groups during the quarter. Despite being proactive, we have previously chosen to develop the same rents in a customer group as a company. Among the new customers, we see several exciting units and supplies. For example, as I mentioned earlier, we acquired a company in Finland. We have opened up a restaurant in Svaland in Helsingborg, a restaurant in Yklöven and also Bromund Nasen in Stockholm. These are some examples. It shows that we are growing widely, not only through acquisitions, but also by attracting new customer groups. A lot of capital. We have a low need for capital. We usually have around 1-2%. It can be a bit between the quarters, but it is generally on a low level. The same goes for our investments, i.e. CapEx. Normally, we are at around 1-2%. Last year, we invested a lot of the money on other airports, but we have not made such large investments this year. And it is noticed, because the quarter landed at just over 1%. And then we have the cash generation, where it is still good. And even if it varies a little bit over the quarter, it landed on just over 80%. So Thomas, then I turn to some important highlights during the quarter.

speaker
Thomas Dahlstedt
Co-founder and CEO

Just as Mattias said about customer group companies, we have also carried out a number of shutdowns. And even if we have done this, we still have a certain increase in the customer group. But I want to emphasize here that we communicated in connection with the note that we had a number of agreements that were actually not profitable, where we had tried for several years after Covid to actually get them to be what they were. before Covid, but we have not succeeded. And in doing so, we chose to remove them completely. And that gives a very positive result reinforcement, but that means that we will not really get up to more than 10% organic growth on the customer group of companies. And it will be a little while here where we see the effect of this. If we come to the customer group defense, which is at 7%, then it is also a little lower than what we have said as a goal. But then we should remember that we communicate our goals more than 10% in the medium-long term. And as an example, we can just comment that the volume of warm-up for 2020-2026, which is coming in here in the summer and after the summer, it is ordered in 2024-2023, so it is a very slow mass. However, we should remember that the changed security situation in Europe means that this market will grow well for many years to come, and we feel safe in more than 10% over the medium-long term. A few weeks ago, we went out with a press release that we had bought 40% of Orifo in Denmark, and we have the option to buy an arresting part of the company. This is a company that we have had a relationship with for a very long time and where we know the founder. Vi har funderat mycket på vilket erbjudande vi ska ha på den europeiska marknaden kring MRE. Och idag så har vi ju Outmeals som sysslar med ration pack. Och ration pack det är ju egentligen en färdig dygnsportion där allting som en soldat behöver ha, frukost, lunch, middag, mellanmål, kvällsmål, snacks och så vidare och som är näringsberäknad och menysatt. Vad vi saknade kände vi var ju egentligen single products that Orifo manages and where we ourselves are also a customer. But where we also see that this market will continue to grow just like the ration pack market in Europe. But where the different defense forces, instead of buying ready-packed, may choose to pack themselves. And we have not seen that we really have had the price level and the offer. in Outmills, so that we would have managed that ourselves. But in that case, the Orifo business fits very well into our total customer offer, where we can sell to different countries both individual products, but also RationsPack, and where we hope that with the different networks, we can sell both products to customers that Orifo has, where we do not sell Outmills today, and vice versa, where Outmills customers can sell individual products as well. What we also did, which we gave out a press release about a few weeks later, was that we acquired a property in Knislinge. And from there we decided to set up our own production of a part of Single Products. And it is primarily about making us less vulnerable and securing the supply of products even in a more sensitive security situation in Sweden and in our area. At the beginning of May 8, we decided on a division of SEK 5, and unfortunately, the payment of this money happened yesterday. And we are very happy and proud to be able to do that as well. We have had some questions about whether we should continue to keep the money instead of buying our own company, but there is also a a certain amount of volume that we manage to handle in the company. So even if we might have been able to burn the cash register completely to buy things, it is not certain that we would have managed to manage the acquisitions in that case. So I think it is a good consideration between acquisitions and the development that we are now doing. And finally, we chose Katrin Sahlgren as board member in Nordrest Holding. Yes, then it's time for a few questions. Let's take a few questions here. Yes, we have received some questions. One of them is, how long have you been in conversation about the acquisition of Orifo? Why do you think the seller was Nordest? We have had a relationship with IB, who owned the entire company. Now he owns only 60 percent. During the entire Outmills period. Pelle, who is the CEO of the Outmills company, has known him even before then. They have had a collaboration relationship for many years, I would say 15 years. We did an analysis of how we want to broaden our offer, and it came from the roadshow. When we did it in connection with the stock market, some of the investors We thought that we would broaden the offer because we saw the potential in the market. I have based it on that very much and I note that what we have in Outmills is ration pack, but we have been very bad at selling individual products. And if we look at the European market in general, we believe that both these two legs, single products and pre-packaged days, will be markets that grow. And then there is no reason for us not to get involved in that part as well. And we didn't see for ourselves that we had neither the competence nor the products to offer. And there Izzo followed very well in approaching IB and he also not many years left until he was going to retire. So it was a very happy situation that arose here and it happened sometime at the end of last year. And then this process has been going on with finding the business and the model forward, both where we secure him as an individual for a number of years, but we also learn that the business can build it further and incorporate it in our view with nice time-saving solutions. Then we had a question about placing liquid funds to ensure a balance between security and reasonable financial income. We don't really understand the question, but if we talk about liquid funds in general, we have said that we took in an example. How much money did we take in the budget, Mattias? 100 total. Yes, but it was not, everything did not go to the company. And there we have said that we did not have a direct need for the money as such, but we see that we have a war budget here now to be able to continue to purchase, but which is also commented on in the quarterly report here, so even if we could buy much more, because it is available, then it is not certain that we can handle it in our organization, but it would then be a bad acquisition because we buy something that does not develop in the direction we want. And therefore we are actually sitting on a little over liquidity, but that is also one of the reasons why we made a division here, because we saw that we had room for it. We have said otherwise that if we were to find things that are so valuable and so good for the company, then it may not be certain that we will make a division in individual years. motivated for that reason, but as the situation looks now, we have good money and we have enough in the future anyway, so we are, as I said, at a little over liquidity. Och sen så har vi lite frågor om operations. Och då var det, vilket kvartal väntade att de avvecklade kontrakten slutade tynga tillväxten i corporate? Ja, men efter kvartal två så är det inte särskilt mycket kvar i alla fall. Så att efter det så är det utan effekt av de avvecklingar vi har gjort. Det är min uppfattning. Vilka är de största drivkrafter till marginalförbättring under kvartalet? Ja, det är ju kombinationen som Mattias mentioned that we have closed down unprofitable contracts that have brought down the profits with quite a lot of money. We said that when we listed the stock market that there is a bit of a lag in the start-ups. Especially in Arlanda, we have had quite a lot of lag. If we compare Q1 in Arlanda with Q2024 and Q2025, there is a huge increase in margins in that business, and that has also contributed to it going as it is now. We see that we are starting to plan out the business as planned. Stark tillväxt från kundgruppförsvar. Har du lagköp för att möta beredskapskrav? Börjar det ta fart på riktigt nu? Ja, det pågår parallellt just nu och det är en av anledning till varför det fortsätter att växa också. Men även själva försvarsförsvar eller militära delen växer ju också. Hur ser ni på efterfrågan på kontrakatering? Märker ni samma sentiment eller är det business as usual? Jag skulle säga att det är business as usual. It is so that companies generally do not run restaurants, but it is about finding the right place. But we have also seen a return in recent times. We have suffered a little bit after Covid, that people have not really come to work, especially not on Mondays and Fridays, which I have commented. But we see now, for example, that some companies are forcing their employees to work more and more. And in that, the volume also grows. So business as usual and according to plan. Ska vi ge lite färg kring Q2? Det tänker vi inte göra. Vi vidmarkthåller våra mål på medellång sikt. How has the Dinners acquisition gone? We haven't really found the right form for Dinners. We discuss a lot what we want to do. Dinners is a 2.0, I would say, but we want to find Dinners 3.0. We haven't really set foot on what content it should be. We have tried a few different things and so on. There are a few wishes of the dinner acquisition, but most internally with us, where we might have put a little more effort and time to take it to the next level. Since last spring, we have owned the entire company, which also facilitates those decisions. But right now it has ended up in stagnation and it is a priority point in the company. However, we see that we will grow with the brand to Dinners and more units, just like all other customer groups. Are all agreements profitable at the start of Q1? We have about 240 sales stations, and there will always be sales stations that do not go with profit. This either means that they are under start-up, or that the basic conditions have changed so much, or that we have poor operations. But if we take our 240 customer agreements, there are not many that are unprofitable anymore. Har kunden i Nato som la order i sommar 2024 börjat köpa det har de? Om ni refererar till det som var pressmeddelande. Vilken är den största fördelen med att kontrollera hela värdekedjan i praktiken? Då måste vi prata om MRE, antar jag. Hur ser korsförsäljningen ut mellan Outmills och Orifo? Varför köper ni bara 40 %? Jättebra fråga. Vi börjar bakifrån. 40 %, det handlar om att... Vi ser det här som en lång förvärvsrelation och där vi inte heller hade en plan på hur vi skulle managera bolaget om vi hade köpt en mycket större del. Så för oss är det viktigt att ha kvar IB i verksamheten, att han har fortfarande väldigt stora morötter att utveckla den här verksamheten under några år framåt, där vi parallellt bygger upp och lär oss hur den här organisationen ska fortsätta att växa framgent. Så det är av den lite mindre köpskinn. Däremot har vi ju option egentligen att köpa hela bolaget palm på om vi skulle vilja men vi vill inte det utan vi tycker det här är en jättebra lösning. So the whole turnover will be consolidated into the company. There is a lot of cross-selling. We have used Orifo as a supplier to us, so of the 300 million that he now sells, there will be some company eliminations due to internal sales. I can't comment on the exact numbers right now either. However, it will not be less profit anyway, because the profit is still the same. And what are the biggest advantages? Yes, but we see, as I said, now we have had ration pack, now we get single products also, and we build up our own production where we then also The biggest strength of my own production is that we suffer from policy problems at the earliest date. Many food industries have very short earliest dates and it is not because the products do not last longer, but because we want to have only two years. We know that they last for five years, but we will just put two years at least. Om vi nu sätter igång den här produktionen själva och kan säkerställa att de här fem åren faktiskt är möjliga, då är ju fem år en mycket bättre shelf life för alla våra andra verksamheter och blir också mycket lättare att sälja till många kunder eftersom de inte behöver omsätta dem så snabbt. Vad är det normaliserande nivå av rörelsekapital framåt? Vi har faktiskt inget bra svar på det. Vad väntar ni er för CAPEX för fastigheten som ska användas till MRE? Vad ska fastigheten producera för volymer i ett moget skede? Om vi tar investeringen i Knislinge så... At the same time, we were also looking for a corresponding location where we would rent. We found that for the five years that we would pay to rent, we had to pay the same amount of money for the carpentry business. So that's how we see it. Even if we didn't get back a crown from the carpenters, which we of course believe in the future, it has still been about the same amount of money on the five-year horizon as renting the business.

speaker
Not provided in transcript
Presenter of Financial Information

Just to mention that the gross capital that we present is between 1-2%.

speaker
Thomas Dahlstedt
Co-founder and CEO

Then we have gross marginals in the restaurant division and out-mills. We do not comment on the marginals of individual customer groups, but we have said that we have two customer groups that have higher profitability. One is the MRE business and the other is our business in Arlanda. The MRE business is because it binds warehouses and is complex in that sense that it is difficult, if you do not sit on these large warehouses, to but it also requires a higher offset for our part, in our view. And the same applies to all the other places where we have invested to build up all the restaurants, and where we also see that we expect a higher offset for that reason. In addition, we say that all other The companies should have the same drop-off. Then you have to calculate yourself what 8-10% will be, and make assumptions about it. Are the cancelled contracts not profitable? They were not profitable. We'll take a few more questions, Mattias, and then I think we'll wrap up. Finns det några synergier med det danska förvärvet och Outmills? Ja, det finns det, men vi räknar inte på det just nu. Det är en sån sak som kommer att få utkristalliseras under den här resan. Men för oss, som jag sa, så är Orifo-förvärvet make sense för oss, både utifrån ett kund-, marknad- och produktivitetsperspektiv. Ja, då var klockan 9.30. Då tänker jag att vi tackar så mycket för oss och på återhörande när vi lämnar kvartalsrapport 2. Tack så mycket. Hejdå. Hejdå.

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