Scandi Standard AB

Good morning, everyone, and welcome to this presentation of Scandi Standard's result for Q2 2026. My name is Jonas Thunestahl, and I'm the CEO and Managing Director of Scandi Standard. I'm pleased to have Fredrik Sylvan, our CFO, by my side today. I'm also glad to report a strong growth and result in the quarter.

So next slide, please.

And when we look at Q2 2026, margins continue to improve. We have a 4% growth in net sales and increase in volume supported by strong demand. We have a 30% increase in EBIT and a margin of 4.9%. And it's mainly two things. It's a focus in ready to cook to climbing the value ladder and in ready to eat. It's about our growth journey and passing through our cost increase. We also see that our improvement program continued with full force, supported by significant investment in 2026. I'm also glad to present a new five-year financing in place at approved terms. So altogether, we have a strong outlook for the business in the coming period. Next slide, please. And the reason why we see a strong demand, it's related to these three value drivers for chicken. Responsible, safe and nutritious. Convenient, versatile and tasteful. And affordable because it's sustainable. So next slide, please. And here you can see the strong historical and ongoing consumer trend for chicken. On graphs on the right-hand side, you can see the long-term growth in chicken benefiting from substitution from other proteins like pork and beef. And as you can see, we're estimating a 3% volume CAGR in the Nordics and Ireland. The next slide, please. And one of those three value drivers is affordability. And it is benefiting from other proteins just because it's sustainable and affordable. Price has always been important for consumers and the focus has increased even more in the current environment of high food prices. Beef prices are at a high level and are expensive, which chicken is benefiting from. But also, and that is important, the long-term trend of switching proteins from all the red meat to poultry. So chicken is affordable in all segments and it gives us further opportunities to drive long-term volume and value creation. And we see future opportunities to drive more value out of the chicken due to its affordability related to peers. That you can see on the right-hand side in the diagram. So next slide, please. And on this side, we want to present our EBIT per kilo measure. And EBIT per kilo is a good measurement of value creation for our business. And Q2 2026, our whole markets and Scandish Chicken are contributing well, and Osterwalder will be a good addition for us reaching our 2027 goals. And our AB per kilo in Q2 was 2.37 compared to 1.88 last year, which is an increase of 26%. And we are expecting to continue to take material steps also in the second half of 2026. And in the different colors in the diagram, you can see the development in the different segments. And as you can see, RTE is increasing, but still a small part of the earnings, which gives fundament for future growth when recovering prices and ramping up the new RTE capacity. So next slide, please. And now we're moving over to our segments, and the table shows the reconciliation of our segments. strong net sales growth in most of the markets, strong EBIT contribution from RTC and improved results from RTE. And as always, we want to remind you of the category other includes ingredients, business and our corporate costs. And ingredients had a negative contribution in the quarter due to an adverse price environment and operational challenges. We, however, see a positive start in the third quarter. So next slide, please. And here you can see the summary of our sustainability scorecard. We are transparent on multiple parameters, and Q2 shows improvements in all areas compared to last quarter, but still on a level with room for improvement, especially on the LTI side. So we expect a positive trend during the second half of 2026. Next slide, please. And moving into ready to cook. And as we said before, it's another step on the value ladder. We see 3% increase in net sales, and we also see 3% increase in chicken process, what we call the grill weight. To mention Sweden held back due to low supply driven by a few disease cases in our external parent stocks, but full production since July and the demand is high. And we also see positive volume and mix effect. And that comes up to an EBIT of 156 million SEC compared to last year of 115. An EBIT margin of 5.6 compared to 4.2 last year. And we'll remain focused to continue to climb the value ladder. And there's a lot of different activities in that. Of course, product development, going into more convenience and branding is one important thing. But it's also supported by more investment like Legdi bonus and robo batches to improve the quality, improve the efficiency and improve the yield. But we also have had a project of reduced giveaway and improved our product mix. And that is together with our Promatic customers to actually find more value out of the chicken. And at the same time, we do further investment in our backward integration. So next slide, please. And when we move into the feed prices, so we have now been seeing fairly stable feed prices for some quarters. In Q2, the prices decreased slightly versus last year, but still a lot of uncertainties and we need to be prepared for further volatility. Latest days have shown a significant increase in wheat prices. And generally, we look at feed costs and other costs such as packaging, energy and transportation. So we carefully follow the effect of the Middle East crisis where we see some challenges with the fertilizer supply that can have impact on the grain prices in the future. But we also see challenges with El Niño that can cause an uncertainty if it will have impact on the grains. And also the Ukraine war where we see disturbances in the sales of grains. So we're following this closely. We have seen a stabilization, but there are uncertainty. We also want to highlight that feed cost is one third of our cost base and also that the short production cycle compared to other proteins enable us to be more agile in our supply chain. So next slide, please. So moving into export prices. As you know, 2025 volatility was driven by supply issues, bird flu in Poland and Brazil. But we have seen stable prices versus Q1 2026 and Q2 2025. But we see possible disruptions driven by EU import restrictions on Brazilian chicken in late 2026. There will be a ban of Brazilian chicken from September, but there are a lot of stock in Europe. So we think if that continues to go, there will be effects in late 2026 or in 2027. But there's a lot of uncertainties in that. But we are aiming to reduce our exposure to the volatile markets. So we have long-term partnership. We have optimized sales and operation planning. And we're also benefiting from integration with Ready to Eat. So next slide, please. And in this slide, you can see the strong demand in retail. You can see our challenge development more in detail. And through these details, you can notice the increase in retail in the quarter. So in general, we're seeing a strong demand in all of our home markets in the quarter. Next slide, please. This slide is to remind you of our strong market position in all our five home markets, and the countries are highly consolidated. These markets have large hurdles for new entrants. They can individually be regarded as semi-closed markets due to the strong consumer preference for domestic produce. So due to our strong market position, our own supply decisions have a meaningful impact on the market balance, which has proven to be a strong instrument in the period with volatile markets. Note that each market, however, also includes consumer segment less sensitive to provenance. So next slide, please. And here you can see our ready to cook plants. Note that 11 million chickens in Lithuania is just one shift. And if positive momentum in the market, we will have the possibility to scale up another shift and double the production. So next slide, please. So now moving over to ready to eat. And we see improved results and a positive outlook. We have a 12% growth in net sales driven by demand in both food service and retail. We have an EBIT margin of 4.1 compared to 3.2 last year. And we continue to build back margins towards historical average. But our lead time in passing through raw material pricing, but we have a positive outlook for the second half. And when we look at our Netherlands plant, we're on track with a sequential startup. So our kebab line in factory A is fully utilized and we're installing another. And factory C is preparing for the second half trial runs. So next slide, please. And here you can see the figures. It's of course very encouraging to see the growth in food service after several periods of weak demand in ready-to-eat. Growth in retail channel continued to be very strong. And ready-to-eat will be an important long-term tool on developing AB per kilo. And more specifically, to increase the value of our protein. So next slide, please. And this slide is also a reminder of the strong historic organic growth in our ready-to-eat business the latest 10 years. And I'm confident that we will continue the trend. and are two main type of businesses. Three quarters is breaded products, European market, and one quarter is integrated local business in Sweden, Norway, and Finland. And there is a high return on capital in this segment, and our average EBIT margin of 6% the last five years. And in this quarter, we have a 4.1% EBIT margin, which shows the potential going on forward. And that combined with low capital employed compared to ready to cook makes this as an interesting investment. And as you remember, we lost some continental contract in 2023, but as soon as you can see, we're almost on par with our 2022 high numbers. So next slide, please. And we are expecting a healthy market growth in Europe over the coming years. And the market players divided into tiers, European players, regional players, and local players. And Scandi Standard has been a large regional player with 36,000 ton project weight in 2024 and about 5% European market share. production platform has not been competitive in the top tier. But we saw in the COVID-19 inflation some stagnation and some European overcapacity. But we still see 100,000 tons market growth expected to 2030. And that is the reason why we did the acquisition in Osterwalder. Next slide, please. And the Osterwalder plant were acquired in Q1 2025 in an idle state. They've been firing factory B under previous ownership. The startup of factory A in Q3 2025 after refurbishment, and that increased our capacity for our profitable and popular kebab products. Factory C is being prepared for the second half trial runs. and Factory C has two of Europe's largest and most efficient breaded lines that can produce 50,000 tonne annual capacity. And it's one of the few with advanced form product capability, tailored to meet the criteria of the largest clients. So we have bought a significant growth platform for Scandi Standard. Next slide, please. And here you can see our main processing plant in Scandi Standard. And with that, I hand over to Fredrik Sulvan of CFO. Thank you, Jonas, and good morning, everyone.