BioGaia — Call Transcript 2025

Welcome to BioGaia Q3 report for 2025. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now, I will hand the conference over to CEO Theresa Agnew and CFO Alexander Kotsinas. Please go ahead. Hi, this is Theresa Agnew, CEO of BioGaia, and Alex and I are here to present our Q3 results. Sales were SEK 327 million, which is an increase of 7% due to higher sales in the Americas as well as Asia Pacific. Growth overall was 14% when excluding currency effects. Year to date, our growth is 8% excluding currency effects and 4% including currency. Our sales in Asia Pacific for the quarter increased by 17%, in the Americas increased by 10%, and in EMEA decreased by 4%, primarily due to sales in Eastern Europe. We saw strong growth following increased media investments in the U.S. and other prioritized direct markets such as Canada, the U.K., and Australia. With our increased media, we've been attracting new consumers to the brand and enhancing our brand awareness. For the quarter, our EBIT is SEK 86 million, and our EBIT margin is 26%. As you can see, this compares to a 14% EBIT margin last year. This was lower due to the metabolism impairment loss of SEK 51 million. Our year-to-date EBIT margin is now 27%. Just to remind you of our BioGaia company strategy, we have three strategic pillars. The first is grow the core, in which we focus on gut health, colic, oral health, as well as immune health. Our second is expansion through direct markets, and our third is breakthrough innovation. This is where there are market creation opportunities for using probiotics in new areas. The foundations of our company are, of course, our people and culture, investing for profitable growth, digital as an enabler of our business as well as our go-to-market, driven by science, which has been a foundation for over 30 years for the company, and sustainable solutions with a strong focus on sustainability. We are delivering on our strategy. In terms of our grow the core, we're driving growth of our pediatric and adult health segments. We're investing in marketing and selling activities to drive strong growth in our direct markets, as I mentioned, such as in the U.S. We're successfully launching new products in our core health areas. Last year, we launched BioGaia Gastrus action capsules, and this quarter, we're rolling it out to more markets. This quarter, we also launched ProDentis Fresh Breath, which is a new product that combines our probiotics with zinc. It works on gums, teeth, as well as giving you fresh breath. We're rolling out many of our other products in partner markets and direct markets as well. In terms of our second strategy, expansion through direct markets, we launched France as a direct market in Q2, and that market is starting to do well in Q3. We're preparing to launch Germany and Austria in early 2026. Actually, in Q3, France had its strongest month with record sales in September. We have a high ambition in France to continue our growth into next year. Australia, which we launched in 2024, now with all of our marketing and selling efforts, BioGaia Protectis Drops is now number one in the market. We also have record sales in the U.S. market due to the investments that we've been putting into that market. Our direct markets are growing ahead of our partner markets. In terms of our third strategic area, breakthrough innovation, as you may have seen in a press release, we've established a new subsidiary called BioGaia New Sciences that will focus on skin health, which is a new breakthrough innovation area for us. We are rolling out our BioGaia probiotic ointment to more markets. Now you will see we have new launches of our probiotic ointment. Speaking of launches, this shows you all the launches we have had of products as we expand our new products into more markets for the quarter. We have rolled out our probiotic ointment in Sweden, Finland, and the U.K. We launched ProDentis Fresh Breath lozenges, as I mentioned, in the U.S. In Argentina, we rolled out a number of our products. Slovakia, and in the U.S., we launched our BioGaia GastroSphere Action capsules that we had launched in Finland for the first time last year. Also in Australia and New Zealand, we rolled out GastroSphere Action capsules. All of these launches are doing very well, especially GastroSphere Action is driving increased sales in our adult gut health area. As well, it's continuing to do extremely well in Finland after a year of launch without cannibalizing our chewable Gastrus product. Some of the key events that happened during the quarter, as I said, we launched our BioGaia New Sciences subsidiary at an extraordinary general meeting in August. We resolved to elect Maurizio Graber as our new Chairman of the Board. Also, Maurizio entered into an agreement to purchase some class B shares from the anchor shareholder Anatom Holding. BioGaia also announced distribution in Germany and Austria for the future, so we will be starting that in early 2026. We also announced the launch of a new product, ProDentis Fresh Breath, and as I said, that launched first in the U.S. in the quarter. More recently, we announced the publication of a study on our new patented strain, L. reuteri BGR46. This has actually been published in a journal called Beneficial Microbes. We also introduced a press release on this, talking about how, as expected, this new strain, it's a new patented strain, is safe and well characterized. In terms of sales per segment, in our pediatric area in the quarter, it grew by 7%, and if you exclude currency effects, it's 14%. This is mainly due to increased sales of Protectis drops in Asia Pacific and Latin America. Specifically, some markets that did very well were Indonesia, Vietnam, and Mexico. In terms of adult health, our sales increased by 6% in the quarter, increasing 13% excluding currency effects. We saw particularly strong growth of BioGaia Gastrus in the U.S. and BioGaia ProDentis mainly in the U.S. as well. As you can see, our pediatric business remains at about 75% of our sales. In terms of the regions, as I said earlier, EMEA sales decreased by 4%. This was mainly due to Eastern Europe and Italy. One comment on Italy: Italy is growing well for us this year. The decline that we saw was mainly due to order variability because we saw higher orders in Q2. In France, as I said, we achieved record sales in September. We're driving increased distribution and recommendations through pharmacies, so we anticipate that this will continue. In Turkey, we have signed a long-term distribution agreement with one of our partners, Abbott. Abbott is actually a longstanding BioGaia partner. We partner with them in the Middle East, in Latin America, and some other Asia Pacific markets. We have now signed an agreement with Abbott Turkey for the market of Turkey. In Asia Pacific, our sales increased by 17%. This was mainly seen in Vietnam, Australia, as well as Indonesia. Specifically in Australia, one of our direct markets, we are expanding distribution, increasing our marketing activities, and growing market share in the market. In the Americas, our sales increased by 10%. This was mainly due to the U.S. and Mexico growth. In particular, on the U.S., we're achieving record-breaking sales in the quarter. We successfully launched the two new products, as I said, which are BioGaia GastroSphere Action capsules and the BioGaia ProDentis Fresh Breath. Both products are getting off to a fast start in the U.S. I will now turn it over to Alex to go through our financials in more detail. Thank you, Theresa. If we just summarize the key financials, we see that our sales grew 7% from SEK 304 million-SEK 327 million. Our gross profit grew 9%, and our EBIT grew 108% from SEK 41 million-SEK 86 million, and a margin of 26% in the quarter versus 14% in the same quarter last year. If we look at the sales, as we heard previously, we had a sales growth of 7%. However, excluding currency effects, we had an organic growth of 14%. The gross margin improved from 73% last year to 74% this year, mainly due to an improved margin in pediatrics, which is the largest segment, but also an improvement in the adult health. The main explanation for the improved margin is mainly different geographical sales compared to a year ago, more favorable geographic shift, for example, in direct markets where we do have a higher gross margin, but also partly due to some price improvements, price increases, which we have done during the last year, which are obviously impacting the margin positively. Year to date, then we have a gross margin which is flat compared to a year ago, down 1% in pediatrics, however, up 6% in adult health. If we move on to our expenses, our total expenses were SEK 157 million in the quarter, which is then 13% lower compared to one year ago. If we look at the different lines, sales and marketing cost at SEK 116 million versus SEK 96 million last year, that's an increase of 21%. This is an effect of increased sales and marketing activities, mainly in our subsidiaries, and then mainly, of course, in North America and the U.S. where we have the largest operations. That is why the sales and marketing costs have increased due to those increased investments. In terms of R&D, R&D costs decreased to SEK 26 million, as Theresa mentioned previously, due to the metabolism impairment loss, which we took in the same quarter last year. Excluding that, we had a growth in R&D spending in the quarter. Administration costs at SEK 11 million, an increase of 18%. There are some startup-related costs to going direct, which are included in this line. Other than that, it's basically the same costs. We have other OpEx, which is basically exchange losses on receivables at a cost of SEK 4 million in the quarter. Also worth to note that it's a substantial cost in year to date of SEK 33 million. If we move on to the next, the profit and loss, just to summarize, our sales grew 7%, our cost grew 13%, and therefore our EBIT, the adjusted EBIT declined 8%. The adjustment again was this impairment loss one year ago. If we move on to the cash flow, the cash flow from operating activities increased by SEK 10 million to SEK 110 million, mainly due to a positive change in working capital. The positive change in working capital is related to lower receivables. We had quite high sales in the second quarter this year, and a lot of those payments came in the third quarter. The receivables decreased by SEK 49 million. We had higher payables of SEK 2 million, and this was offset by a higher inventory of SEK 10 million. All of these variations are basically normal variations that we have. There is nothing, no one-offs or anything like that. That leads to a cash flow for the period of SEK 107 million versus SEK 111 million last year. Basically a flat cash flow and a cash at the end of the period of SEK 728 million versus SEK 1.11 billion in the same quarter last year. With that, I hand over to Theresa for some concluding remarks. In summary, as we said in the third quarter, our overall organic growth was 14% and an overall increase of 7%. If you look year to date, we also grew 8% organically and up 4% with the currency effects. In the pediatric segment, we grew 7% in the quarter, 14% excluding the foreign currency effects. Strong growth of BioGaia Protectis Drops, as I said, in Asia Pacific and Latin America. The adult health segment is growing nicely for us, 13% organically and 6% including exchange effects. Year to date, 16% as well as 20% excluding the currency exchange effects. We are seeing particularly strong growth of our BioGaia Gastrus product line, which falls into our adult gut health segment, as well as the BioGaia ProDentis, which falls into our oral health segment in the U.S. In Americas and Asia Pacific, those two regions both delivered double-digit growth. Sales in EMEA declined slightly compared to the same quarter last year. That was primarily driven by weaker performance in Eastern Europe. We are investing in marketing and selling activities this year to drive strong growth in our direct markets. We have seen a nice result of that with strong double-digit growth in the quarter and year to date in the U.S. Some of this is obviously offset by currency effects, as well as lower sales in EMEA due to certain partners. When we take markets direct, what we typically see is we see lower sales up front when we're establishing the direct markets because our partners are typically selling through their prior inventory. As we are establishing these direct markets in France and Germany, we'll see some lower sales, and then that will then pick up once the prior inventory is sold through. The strong double-digit growth in the markets where we're investing is offset by these things. Our adjusted operating margin of 26% is for the quarter and then 27% year to date. As we said, we also had an extraordinary general meeting to elect Maurizio Graber as our new Chairman. We will now turn it over for any questions that you may have. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Kristofer Liljeberg from DNB Carnegie. Please go ahead. Yes, thank you. It's good to hear that direct sales seem to do well. Is it possible to give a figure for how large share of total sales that now represent? That's my first question. The second question is on the extra marketing investment. Is it possible to quantify how that has impacted sales? You're talking about good momentum in the U.S., but maybe if you could quantify that. When it comes to the reason for weakness in Eastern Europe, anything particular there? If I remember correctly, you have one large distributor, so I don't know if it's some destocking stocking effects impacting there as well. Thank you. Yeah. The first question around what percentage of our sales the direct markets now represent, that's approximately 36% of our overall sales. Frankly, we anticipate that to continue to grow because as we grow the business in France and then Germany and Austria next year, it will get to be a bigger percentage of our sales. In terms of our marketing investment, to quantify that more, the majority of our investment by far is in the U.S. We also have made some smaller investments in the U.K., Canada, and Australia. The U.S. business is doing extremely well. Over 20% growth in the U.S., so very, very strong results from our investments around marketing and media. In terms of Eastern Europe, you are right. We have one. Before you say, could I just follow up on these two? The 20% growth in the U.S., I guess that's currency adjusted. Is that in the quarter or year to date? That's overall year to date. What I'm quoting is more year to date, but similar also in the quarter itself. Okay, that's very helpful. Thank you. Just on the first one, the 36% overall or 36% share in direct sales, is that in the quarter or last month or however? That's in the quarter. Perfect. Thank you. My final question, sorry. Yes. In Eastern Europe, you are right. We have one partner, Evo Pharma, that covers about 16 markets across Eastern Europe. There is some order variability that is happening there. We anticipate that there will be increased orders and there's transferability from one quarter to the other in terms of those markets. Thank you very much. The next question comes from Mattias Vadsten from SEB. Please go ahead. Good morning. Thanks for taking my question. First one, I was curious to hear a bit more on EMEA. Maybe if you could quantify what impact the transition to own sales had in Q3 year-over-year on growth. Is that a reason, a role for EMEA declining here? Also, if you can talk about the impact this could have on organic growth for the coming quarters. If you see sort of EMEA returning to growth near-term based on order variability in Eastern Europe, that's the first one. Thanks. Yeah. In terms of own sales in EMEA, because we have taken France direct, we have seen year to date a decline in sales because our partner has been then selling through their inventory, so not ordering from us and also selling through their inventory. We started selling in Q2, but in very small amounts. Now we're starting to see that pick up as expected. Whenever we take a market direct, we anticipate that there will be lower sales for a period of time, and then it will start to grow as inventory is sold through in the markets. That is the own markets, the own sales is a reason for decline in EMEA around France. France is a very big market for us in EMEA. That of course can be offset by some of the other markets, but they're much smaller. Finland, as an own market, is growing really well. U.K., as an own market, is growing double digits. Because France is such a large market for us in Europe, it offsets those. Thanks. That was what I thought as well. In terms of Germany and Austria, could you just elaborate how we should see that transition, sort of how it looked in Q3, and how does it look in those markets? Yes. Good question. We will see a similar effect with Germany and Austria, where we will see some declining orders in terms of the partner ordering from us, and they will be selling through their inventory into next year. We will be able to start selling. Just like France, we'll see a period of time where we will start to increase sales in early next year and then see more benefit in the second half. Perfect. Would you say this effect was already there in Q3? I'm sorry? For Germany and Austria? Yes. Would you say the impact? Okay. That was there in Q3. Yes. Okay. That all makes sense. Thank you very much. In terms of OpEx, it has been up some, I guess, with some variability, but sort of 20% for the four past quarters now. I'm just looking ahead. Q4 last year, you had quite a steep OpEx increase. Do you see the growth in OpEx coming down a little bit in the quarters ahead, or how should we see that? Thank you. Yeah. The OpEx, I think in the fourth quarter, normally we have seasonal effects whereby we have some seasonally increased OpEx in the fourth quarter, for example, in the U.S. market. Without providing any guidance, I mean, our costs, normally they will go up somewhat in the fourth quarter. Perfect. I have one final question, if that's okay. The new patent, that strain that you bring up in the presentation, L. reuteri BGR46, if you could just talk a bit in general about this and maybe how it would be included in your sort of broad product offering that you have today, and then maybe a potential combination with, yeah, DSM 17938 in Colic Drops, for instance. A general run-through of how you see that being included in the offering. Yes. BGR46 is an important strain for us for the future. It is a patented strain that we will include in new products. We have talked before about how we look to launch a new product that will be a combination product of our DSM 17 strain and our new patented strain. This is the new patented strain that would then be in combination with our DSM 17 strain in new products. We will have more information out on that in the near future. We are conducting a clinical study on a new dropped product. More to come on that when we get our results in. We will be including this strain in multiple new products across what we call our grow the core. It will be in colic-oriented products. It will be in other categories as well, immune health, gut health, and so forth. Very clear answer. Thank you very much. The next question comes from Matthias Hegblom from Handelsbanken. Please go ahead. Good morning. Thanks so much. I have two questions, please. Firstly, with a new Chairman as well as a new principal shareholder, I'm curious to hear how the board's work has changed, if at all. Is there, for example, a strategic review plan together with the board to reassure all interests are aligned with regards to the path ahead? Secondly, sort of related to this, I guess we're in the middle of budget planning heading into 2026. With OpEx up 29% year to date, investor feedback suggests this remains a focus area. At least help me think about the pace of OpEx going into 2026, at least directionally. Okay. In terms of the board, with Maurizio as our new Chairman, we have had two board meetings where we have talked about numerous things. We have also updated on our strategic plan. That has been included in all of our discussions with our new Chairman. We will be doing, as a typical part of our process, a strategic review in terms of our strategic plan with the board upcoming. That is a normal part of how we operate. Maurizio has now been involved in two board meetings thus far since August. If Alex wants to talk a little bit about OpEx, I think you had a question on the OpEx. Yeah. Basically, I mean, we do have this ambition, of course. Our financial target is to have a 34% margin, and we're not there at the moment. Our ambition is to improve this going forward. We will improve our EBIT margin, basically, going forward without specifying exactly when, but that is our ambition for next year. Basically, our OpEx will not grow to the same extent as our gross profit will grow. It will grow to a lesser extent. Also, just to add to that, as you know, with our direct markets, we have a level of investment that we do with the direct markets. We run a very lean organization, so we don't have a lot of fixed costs, but we are making investments in those direct markets of France as well as Germany. Thank you. I have one follow-up. If OpEx is up 29% year to date and sales in the U.S. is up over 20%, where a majority of the investments have been targeted, how do investors build confidence that these investments actually do generate and translate into a good return? Yeah. In terms of the future growth, what we can see is, some of the things that we've talked about in terms of direct markets, France and Germany, for instance, we have a lot of confidence in terms of how we will grow in those markets for the future. France is an extremely important European market for us. Frankly, Germany, we anticipate that we will grow our business substantially there because in the past, it has been smaller of the European businesses for us. We want to really focus in that market as well. If you look at where we're investing, we anticipate seeing the growth in those markets where we are investing: France, Germany, U.S., Canada. I think everyone is aligned that these go direct-to-market initiatives have worked favorably. I think if there is a debate, it's more around this more short-term campaign investment, to say. I heard you say the majority of investment this year has been for the U.S., and the U.S. is up less than the OpEx for the group year to date. Is there any way you can share your confidence in that these more campaign-related investments as well translate into permanent good returns? Yes. I mean, they are translating into good returns for us in the U.S. If you look at our spending in the U.S., we are driving considerable growth, as I said, over 20%. There are also currency impacts in terms of the U.S. dollar. Okay. The 20% includes the headwind from FX. In local accounts, the growth year to date in the U.S. may be even higher than 20%. That's correct. That's correct. Okay. That's very helpful. Thank you so much. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. The next question comes from Kristofer Liljeberg from DNB Carnegie. Please go ahead. Kristofer Liljeberg, your line is now unmuted. Please go ahead. Thank you. Two follow-up questions from me. I think you said that France had a record month in September. Is that also compared with the previous distributor's sales in a given month? We don't track it by the previous distributor's sales in a given month. We don't have all of that information from our distributors, but just in terms of our sales in the French market. Yeah, is this since you started to sell directly, or shipments or sales you have booked to a distributor previously in a given month as well? Yes. Yes. It is versus our sales to the distributor in a particular month. We do not always get all of the sellout information and what the sales is in market from our partners. Yeah, that sounds very positive given that there must have been some months where they have had where the previous distributors have built inventory, etc. Yes, it is very positive for us. With our taking this market direct, we now have a broader opportunity for distribution. We are still working on this, but the sales force that we have hired actually has access to even more distribution points than our previous partner. That is one of our goals, to drive our distribution further. Great. Thank you. Nice to see the pediatric margin improving in the quarter. I think, Alex, you mentioned some price adjustment, etc. It sounds this should be a sustainable level or was it a very positive mix also in the quarter that explains this. Yeah, it's always difficult to know exactly, but I mean, we hope it's fairly sustainable, yes, unless there are some negative surprises. It should be sustainable. Great. Thank you so much. There are no more questions at this time. I hand the conference back to the speakers for any closing comments. Thank you for your questions. We appreciate the time to review our Q3 results. We will speak with you again for next quarter. Thank you.

Speaker 3: Welcome to BioGaia Q3 report for 2025. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now, I will hand the conference over to CEO Theresa Agnew and CFO Alexander Kotsinas. Please go ahead. Welcome to BioGaia Q3 report for 2025. welcome to biogaia q3 report for 2025 For the first part of the conference call, the participants will be in listen-only mode. for the first part of the conference call the participants will be in listen-only mode During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. during the questions and answers session participants are able to ask questions by dialing pound key five on their telephone keypad Now, I will hand the conference over to CEO Theresa Agnew and CFO Alexander Kotsinas. now i will hand the conference over to ceo theresa agnew and cfo alexander kotsinas Please go ahead. please go ahead

Speaker 6: Hi, this is Theresa Agnew, CEO of BioGaia, and Alex and I are here to present our Q3 results. Sales were SEK 327 million, which is an increase of 7% due to higher sales in the Americas as well as Asia Pacific. Growth overall was 14% when excluding currency effects. Year to date, our growth is 8% excluding currency effects and 4% including currency. Our sales in Asia Pacific for the quarter increased by 17%, in the Americas increased by 10%, and in EMEA decreased by 4%, primarily due to sales in Eastern Europe. We saw strong growth following increased media investments in the U.S. and other prioritized direct markets such as Canada, the U.K., and Australia. With our increased media, we've been attracting new consumers to the brand and enhancing our brand awareness. For the quarter, our EBIT is SEK 86 million, and our EBIT margin is 26%. Hi, this is Theresa Agnew, CEO of BioGaia , and Alex and I are here to present our Q3 results. hi this is theresa agnew ceo of biogaia and alex and i are here to present our q3 results Sales were SEK 327 million, which is an increase of 7% due to higher sales in the Americas as well as Asia Pacific. sales were sek 327 million which is an increase of 7% due to higher sales in the americas as well as asia pacific Growth overall was 14% when excluding currency effects. growth overall was 14% when excluding currency effects Year to date, our growth is 8% excluding currency effects and 4% including currency. year to date our growth is 8% excluding currency effects and 4% including currency Our sales in Asia Pacific for the quarter increased by 17%, in the Americas increased by 10%, and in EMEA decreased by 4%, primarily due to sales in Eastern Europe. our sales in asia pacific for the quarter increased by 17% in the americas increased by 10% and in emea decreased by 4% primarily due to sales in eastern europe We saw strong growth following increased media investments in the U.S. and other prioritized direct markets such as Canada, the U.K., and Australia. we saw strong growth following increased media investments in the u.s and other prioritized direct markets such as canada the u.k and australia With our increased media, we've been attracting new consumers to the brand and enhancing our brand awareness. with our increased media we've been attracting new consumers to the brand and enhancing our brand awareness For the quarter, our EBIT is SEK 86 million, and our EBIT margin is 26%. for the quarter our ebit is sek 86 million and our ebit margin is 26% As you can see, this compares to a 14% EBIT margin last year. This was lower due to the metabolism impairment loss of SEK 51 million. Our year-to-date EBIT margin is now 27%. Just to remind you of our BioGaia company strategy, we have three strategic pillars. The first is grow the core, in which we focus on gut health, colic, oral health, as well as immune health. Our second is expansion through direct markets, and our third is breakthrough innovation. This is where there are market creation opportunities for using probiotics in new areas. The foundations of our company are, of course, our people and culture, investing for profitable growth, digital as an enabler of our business as well as our go-to-market, driven by science, which has been a foundation for over 30 years for the company, and sustainable solutions with a strong focus on sustainability. As you can see, this compares to a 14% EBIT margin last year. as you can see this compares to a 14% ebit margin last year This was lower due to the metabolism impairment loss of SEK 51 million. this was lower due to the metabolism impairment loss of sek 51 million Our year-to-date EBIT margin is now 27%. our year-to-date ebit margin is now 27% Just to remind you of our BioGaia company strategy, we have three strategic pillars. just to remind you of our biogaia company strategy we have three strategic pillars The first is grow the core, in which we focus on gut health, colic, oral health, as well as immune health. the first is grow the core in which we focus on gut health colic oral health as well as immune health Our second is expansion through direct markets, and our third is breakthrough innovation. our second is expansion through direct markets and our third is breakthrough innovation This is where there are market creation opportunities for using probiotics in new areas. this is where there are market creation opportunities for using probiotics in new areas The foundations of our company are, of course, our people and culture, investing for profitable growth, digital as an enabler of our business as well as our go-to-market, driven by science, which has been a foundation for over 30 years for the company, and sustainable solutions with a strong focus on sustainability. the foundations of our company are of course our people and culture investing for profitable growth digital as an enabler of our business as well as our go-to-market driven by science which has been a foundation for over 30 years for the company and sustainable solutions with a strong focus on sustainability We are delivering on our strategy. In terms of our grow the core, we're driving growth of our pediatric and adult health segments. We're investing in marketing and selling activities to drive strong growth in our direct markets, as I mentioned, such as in the U.S. We're successfully launching new products in our core health areas. Last year, we launched BioGaia Gastrus action capsules, and this quarter, we're rolling it out to more markets. This quarter, we also launched ProDentis Fresh Breath, which is a new product that combines our probiotics with zinc. It works on gums, teeth, as well as giving you fresh breath. We're rolling out many of our other products in partner markets and direct markets as well. We are delivering on our strategy. we are delivering on our strategy In terms of our grow the core, we're driving growth of our pediatric and adult health segments. in terms of our grow the core we're driving growth of our pediatric and adult health segments We're investing in marketing and selling activities to drive strong growth in our direct markets, as I mentioned, such as in the U.S. we're investing in marketing and selling activities to drive strong growth in our direct markets as i mentioned such as in the u.s We're successfully launching new products in our core health areas. we're successfully launching new products in our core health areas Last year, we launched BioGaia Gastrus action capsules, and this quarter, we're rolling it out to more markets. last year we launched biogaia gastrus action capsules and this quarter we're rolling it out to more markets This quarter, we also launched ProDentis Fresh Breath , which is a new product that combines our probiotics with zinc. this quarter we also launched prodentis fresh breath which is a new product that combines our probiotics with zinc It works on gums, teeth, as well as giving you fresh breath. it works on gums teeth as well as giving you fresh breath We're rolling out many of our other products in partner markets and direct markets as well. we're rolling out many of our other products in partner markets and direct markets as well In terms of our second strategy, expansion through direct markets, we launched France as a direct market in Q2, and that market is starting to do well in Q3. We're preparing to launch Germany and Austria in early 2026. Actually, in Q3, France had its strongest month with record sales in September. We have a high ambition in France to continue our growth into next year. Australia, which we launched in 2024, now with all of our marketing and selling efforts, BioGaia Protectis Drops is now number one in the market. We also have record sales in the U.S. market due to the investments that we've been putting into that market. Our direct markets are growing ahead of our partner markets. In terms of our second strategy, expansion through direct markets, we launched France as a direct market in Q2, and that market is starting to do well in Q3. in terms of our second strategy expansion through direct markets we launched france as a direct market in q2 and that market is starting to do well in q3 We're preparing to launch Germany and Austria in early 2026. we're preparing to launch germany and austria in early 2026 Actually, in Q3, France had its strongest month with record sales in September. actually in q3 france had its strongest month with record sales in september We have a high ambition in France to continue our growth into next year. we have a high ambition in france to continue our growth into next year Australia, which we launched in 2024, now with all of our marketing and selling efforts, BioGaia Protectis Drops is now number one in the market. australia which we launched in 2024 now with all of our marketing and selling efforts biogaia protectis drops is now number one in the market We also have record sales in the U.S. market due to the investments that we've been putting into that market. we also have record sales in the u.s market due to the investments that we've been putting into that market Our direct markets are growing ahead of our partner markets. our direct markets are growing ahead of our partner markets In terms of our third strategic area, breakthrough innovation, as you may have seen in a press release, we've established a new subsidiary called BioGaia New Sciences that will focus on skin health, which is a new breakthrough innovation area for us. We are rolling out our BioGaia probiotic ointment to more markets. Now you will see we have new launches of our probiotic ointment. Speaking of launches, this shows you all the launches we have had of products as we expand our new products into more markets for the quarter. We have rolled out our probiotic ointment in Sweden, Finland, and the U.K. We launched ProDentis Fresh Breath lozenges, as I mentioned, in the U.S. In Argentina, we rolled out a number of our products. Slovakia, and in the U.S., we launched our BioGaia GastroSphere Action capsules that we had launched in Finland for the first time last year. In terms of our third strategic area, breakthrough innovation, as you may have seen in a press release, we've established a new subsidiary called BioGaia New Sciences that will focus on skin health, which is a new breakthrough innovation area for us. in terms of our third strategic area breakthrough innovation as you may have seen in a press release we've established a new subsidiary called biogaia new sciences that will focus on skin health which is a new breakthrough innovation area for us We are rolling out our BioGaia probiotic ointment to more markets. we are rolling out our biogaia probiotic ointment to more markets Now you will see we have new launches of our probiotic ointment. now you will see we have new launches of our probiotic ointment Speaking of launches, this shows you all the launches we have had of products as we expand our new products into more markets for the quarter. speaking of launches this shows you all the launches we have had of products as we expand our new products into more markets for the quarter We have rolled out our probiotic ointment in Sweden, Finland, and the U.K. we have rolled out our probiotic ointment in sweden finland and the u.k We launched ProDentis Fresh Breath lozenges, as I mentioned, in the U.S. we launched prodentis fresh breath lozenges as i mentioned in the u.s In Argentina, we rolled out a number of our products. in argentina we rolled out a number of our products Slovakia, and in the U.S., we launched our BioGaia GastroSphere Action capsules that we had launched in Finland for the first time last year. slovakia and in the u.s we launched our biogaia gastrosphere action capsules that we had launched in finland for the first time last year Also in Australia and New Zealand, we rolled out GastroSphere Action capsules. All of these launches are doing very well, especially GastroSphere Action is driving increased sales in our adult gut health area. As well, it's continuing to do extremely well in Finland after a year of launch without cannibalizing our chewable Gastrus product. Some of the key events that happened during the quarter, as I said, we launched our BioGaia New Sciences subsidiary at an extraordinary general meeting in August. We resolved to elect Maurizio Graber as our new Chairman of the Board. Also, Maurizio entered into an agreement to purchase some class B shares from the anchor shareholder Anatom Holding. BioGaia also announced distribution in Germany and Austria for the future, so we will be starting that in early 2026. Also in Australia and New Zealand, we rolled out GastroSphere Action capsules. also in australia and new zealand we rolled out gastrosphere action capsules All of these launches are doing very well, especially GastroSphere Action is driving increased sales in our adult gut health area. all of these launches are doing very well especially gastrosphere action is driving increased sales in our adult gut health area As well, it's continuing to do extremely well in Finland after a year of launch without cannibalizing our chewable Gastrus product. as well it's continuing to do extremely well in finland after a year of launch without cannibalizing our chewable gastrus product Some of the key events that happened during the quarter, as I said, we launched our BioGaia New Sciences subsidiary at an extraordinary general meeting in August. some of the key events that happened during the quarter as i said we launched our biogaia new sciences subsidiary at an extraordinary general meeting in august We resolved to elect Maurizio Graber as our new Chairman of the Board. we resolved to elect maurizio graber as our new chairman of the board Also, Maurizio entered into an agreement to purchase some class B shares from the anchor shareholder Anatom Holding. also maurizio entered into an agreement to purchase some class b shares from the anchor shareholder anatom holding BioGaia also announced distribution in Germany and Austria for the future, so we will be starting that in early 2026. biogaia also announced distribution in germany and austria for the future so we will be starting that in early 2026 We also announced the launch of a new product, ProDentis Fresh Breath, and as I said, that launched first in the U.S. in the quarter. More recently, we announced the publication of a study on our new patented strain, L. reuteri BGR46. This has actually been published in a journal called Beneficial Microbes. We also introduced a press release on this, talking about how, as expected, this new strain, it's a new patented strain, is safe and well characterized. In terms of sales per segment, in our pediatric area in the quarter, it grew by 7%, and if you exclude currency effects, it's 14%. This is mainly due to increased sales of Protectis drops in Asia Pacific and Latin America. Specifically, some markets that did very well were Indonesia, Vietnam, and Mexico. In terms of adult health, our sales increased by 6% in the quarter, increasing 13% excluding currency effects. We also announced the launch of a new product, ProDentis Fresh Breath, and as I said, that launched first in the U.S. in the quarter. we also announced the launch of a new product prodentis fresh breath and as i said that launched first in the u.s in the quarter More recently, we announced the publication of a study on our new patented strain, L. reuteri BGR46. more recently we announced the publication of a study on our new patented strain l reuteri bgr46 This has actually been published in a journal called Beneficial Microbes. this has actually been published in a journal called beneficial microbes We also introduced a press release on this, talking about how, as expected, this new strain, it's a new patented strain, is safe and well characterized. we also introduced a press release on this talking about how as expected this new strain it's a new patented strain is safe and well characterized In terms of sales per segment, in our pediatric area in the quarter, it grew by 7%, and if you exclude currency effects, it's 14%. in terms of sales per segment in our pediatric area in the quarter it grew by 7% and if you exclude currency effects it's 14% This is mainly due to increased sales of Protectis drops in Asia Pacific and Latin America. this is mainly due to increased sales of protectis drops in asia pacific and latin america Specifically, some markets that did very well were Indonesia, Vietnam, and Mexico. specifically some markets that did very well were indonesia vietnam and mexico In terms of adult health, our sales increased by 6% in the quarter, increasing 13% excluding currency effects. in terms of adult health our sales increased by 6% in the quarter increasing 13% excluding currency effects We saw particularly strong growth of BioGaia Gastrus in the U.S. and BioGaia ProDentis mainly in the U.S. as well. As you can see, our pediatric business remains at about 75% of our sales. In terms of the regions, as I said earlier, EMEA sales decreased by 4%. This was mainly due to Eastern Europe and Italy. One comment on Italy: Italy is growing well for us this year. The decline that we saw was mainly due to order variability because we saw higher orders in Q2. In France, as I said, we achieved record sales in September. We're driving increased distribution and recommendations through pharmacies, so we anticipate that this will continue. In Turkey, we have signed a long-term distribution agreement with one of our partners, Abbott. Abbott is actually a longstanding BioGaia partner. We saw particularly strong growth of BioGaia Gastrus in the U.S. and BioGaia ProDentis mainly in the U.S. as well. we saw particularly strong growth of biogaia gastrus in the u.s and biogaia prodentis mainly in the u.s as well As you can see, our pediatric business remains at about 75% of our sales. as you can see our pediatric business remains at about 75% of our sales In terms of the regions, as I said earlier, EMEA sales decreased by 4%. in terms of the regions as i said earlier emea sales decreased by 4% This was mainly due to Eastern Europe and Italy. this was mainly due to eastern europe and italy One comment on Italy: Italy is growing well for us this year. one comment on italy italy is growing well for us this year The decline that we saw was mainly due to order variability because we saw higher orders in Q2. the decline that we saw was mainly due to order variability because we saw higher orders in q2 In France, as I said, we achieved record sales in September. in france as i said we achieved record sales in september We're driving increased distribution and recommendations through pharmacies, so we anticipate that this will continue. we're driving increased distribution and recommendations through pharmacies so we anticipate that this will continue In Turkey, we have signed a long-term distribution agreement with one of our partners, Abbott. in turkey we have signed a long-term distribution agreement with one of our partners abbott Abbott is actually a longstanding BioGaia partner. abbott is actually a longstanding biogaia partner We partner with them in the Middle East, in Latin America, and some other Asia Pacific markets. We have now signed an agreement with Abbott Turkey for the market of Turkey. In Asia Pacific, our sales increased by 17%. This was mainly seen in Vietnam, Australia, as well as Indonesia. Specifically in Australia, one of our direct markets, we are expanding distribution, increasing our marketing activities, and growing market share in the market. In the Americas, our sales increased by 10%. This was mainly due to the U.S. and Mexico growth. In particular, on the U.S., we're achieving record-breaking sales in the quarter. We successfully launched the two new products, as I said, which are BioGaia GastroSphere Action capsules and the BioGaia ProDentis Fresh Breath. Both products are getting off to a fast start in the U.S. I will now turn it over to Alex to go through our financials in more detail. We partner with them in the Middle East, in Latin America, and some other Asia Pacific markets. we partner with them in the middle east in latin america, and some other asia pacific markets We have now signed an agreement with Abbott Turkey for the market of Turkey. we have now signed an agreement with abbott turkey for the market of turkey In Asia Pacific, our sales increased by 17%. in asia pacific our sales increased by 17% This was mainly seen in Vietnam, Australia, as well as Indonesia. this was mainly seen in vietnam australia as well as indonesia Specifically in Australia, one of our direct markets, we are expanding distribution, increasing our marketing activities, and growing market share in the market. specifically in australia one of our direct markets we are expanding distribution increasing our marketing activities and growing market share in the market In the Americas, our sales increased by 10%. in the americas our sales increased by 10% This was mainly due to the U.S. and Mexico growth. this was mainly due to the u.s and mexico growth In particular, on the U.S., we're achieving record-breaking sales in the quarter. in particular on the u.s we're achieving record-breaking sales in the quarter We successfully launched the two new products, as I said, which are BioGaia GastroSphere Action capsules and the BioGaia ProDentis Fresh Breath. we successfully launched the two new products as i said which are biogaia gastrosphere action capsules and the biogaia prodentis fresh breath Both products are getting off to a fast start in the U.S. both products are getting off to a fast start in the u.s I will now turn it over to Alex to go through our financials in more detail. i will now turn it over to alex to go through our financials in more detail

Speaker 5: Thank you, Theresa. If we just summarize the key financials, we see that our sales grew 7% from SEK 304 million-SEK 327 million. Our gross profit grew 9%, and our EBIT grew 108% from SEK 41 million-SEK 86 million, and a margin of 26% in the quarter versus 14% in the same quarter last year. If we look at the sales, as we heard previously, we had a sales growth of 7%. However, excluding currency effects, we had an organic growth of 14%. The gross margin improved from 73% last year to 74% this year, mainly due to an improved margin in pediatrics, which is the largest segment, but also an improvement in the adult health. Thank you, Theresa. thank you theresa If we just summarize the key financials, we see that our sales grew 7% from SEK 304 million- SEK 327 million. if we just summarize the key financials we see that our sales grew 7% from sek 304 million- sek 327 million Our gross profit grew 9%, and our EBIT grew 108% from SEK 41 million- SEK 86 million, and a margin of 26% in the quarter versus 14% in the same quarter last year. our gross profit grew 9% and our ebit grew 108% from sek 41 million- sek 86 million and a margin of 26% in the quarter versus 14% in the same quarter last year If we look at the sales, as we heard previously, we had a sales growth of 7%. if we look at the sales as we heard previously we had a sales growth of 7% However, excluding currency effects, we had an organic growth of 14%. however excluding currency effects we had an organic growth of 14% The gross margin improved from 73% last year to 74% this year, mainly due to an improved margin in pediatrics, which is the largest segment, but also an improvement in the adult health. the gross margin improved from 73% last year to 74% this year mainly due to an improved margin in pediatrics which is the largest segment but also an improvement in the adult health The main explanation for the improved margin is mainly different geographical sales compared to a year ago, more favorable geographic shift, for example, in direct markets where we do have a higher gross margin, but also partly due to some price improvements, price increases, which we have done during the last year, which are obviously impacting the margin positively. Year to date, then we have a gross margin which is flat compared to a year ago, down 1% in pediatrics, however, up 6% in adult health. If we move on to our expenses, our total expenses were SEK 157 million in the quarter, which is then 13% lower compared to one year ago. If we look at the different lines, sales and marketing cost at SEK 116 million versus SEK 96 million last year, that's an increase of 21%. The main explanation for the improved margin is mainly different geographical sales compared to a year ago, more favorable geographic shift, for example, in direct markets where we do have a higher gross margin, but also partly due to some price improvements, price increases, which we have done during the last year, which are obviously impacting the margin positively. the main explanation for the improved margin is mainly different geographical sales compared to a year ago more favorable geographic shift for example in direct markets where we do have a higher gross margin but also partly due to some price improvements price increases which we have done during the last year which are obviously impacting the margin positively Year to date, then we have a gross margin which is flat compared to a year ago, down 1% in pediatrics, however, up 6% in adult health. year to date then we have a gross margin which is flat compared to a year ago down 1% in pediatrics however up 6% in adult health If we move on to our expenses, our total expenses were SEK 157 million in the quarter, which is then 13% lower compared to one year ago. if we move on to our expenses our total expenses were sek 157 million in the quarter which is then 13% lower compared to one year ago If we look at the different lines, sales and marketing cost at SEK 116 million versus SEK 96 million last year, that's an increase of 21%. if we look at the different lines sales and marketing cost at sek 116 million versus sek 96 million last year that's an increase of 21% This is an effect of increased sales and marketing activities, mainly in our subsidiaries, and then mainly, of course, in North America and the U.S. where we have the largest operations. That is why the sales and marketing costs have increased due to those increased investments. In terms of R&D, R&D costs decreased to SEK 26 million, as Theresa mentioned previously, due to the metabolism impairment loss, which we took in the same quarter last year. Excluding that, we had a growth in R&D spending in the quarter. Administration costs at SEK 11 million, an increase of 18%. There are some startup-related costs to going direct, which are included in this line. Other than that, it's basically the same costs. We have other OpEx, which is basically exchange losses on receivables at a cost of SEK 4 million in the quarter. This is an effect of increased sales and marketing activities, mainly in our subsidiaries, and then mainly, of course, in North America and the U.S. where we have the largest operations. this is an effect of increased sales and marketing activities mainly in our subsidiaries and then mainly of course in north america and the u.s where we have the largest operations That is why the sales and marketing costs have increased due to those increased investments. that is why the sales and marketing costs have increased due to those increased investments In terms of R&D, R&D costs decreased to SEK 26 million, as Theresa mentioned previously, due to the metabolism impairment loss, which we took in the same quarter last year. in terms of r&d r&d costs decreased to sek 26 million as theresa mentioned previously due to the metabolism impairment loss which we took in the same quarter last year Excluding that, we had a growth in R&D spending in the quarter. excluding that we had a growth in r&d spending in the quarter Administration costs at SEK 11 million, an increase of 18%. administration costs at sek 11 million an increase of 18% There are some startup-related costs to going direct, which are included in this line. there are some startup-related costs to going direct which are included in this line Other than that, it's basically the same costs. other than that it's basically the same costs We have other OpEx, which is basically exchange losses on receivables at a cost of SEK 4 million in the quarter. we have other opex which is basically exchange losses on receivables at a cost of sek 4 million in the quarter Also worth to note that it's a substantial cost in year to date of SEK 33 million. If we move on to the next, the profit and loss, just to summarize, our sales grew 7%, our cost grew 13%, and therefore our EBIT, the adjusted EBIT declined 8%. The adjustment again was this impairment loss one year ago. If we move on to the cash flow, the cash flow from operating activities increased by SEK 10 million to SEK 110 million, mainly due to a positive change in working capital. The positive change in working capital is related to lower receivables. We had quite high sales in the second quarter this year, and a lot of those payments came in the third quarter. The receivables decreased by SEK 49 million. We had higher payables of SEK 2 million, and this was offset by a higher inventory of SEK 10 million. Also worth to note that it's a substantial cost in year to date of SEK 33 million. also worth to note that it's a substantial cost in year to date of sek 33 million If we move on to the next, the profit and loss, just to summarize, our sales grew 7%, our cost grew 13%, and therefore our EBIT, the adjusted EBIT declined 8%. if we move on to the next the profit and loss just to summarize our sales grew 7% our cost grew 13% and therefore our ebit the adjusted ebit declined 8% The adjustment again was this impairment loss one year ago. the adjustment again was this impairment loss one year ago If we move on to the cash flow, the cash flow from operating activities increased by SEK 10 million to SEK 110 million, mainly due to a positive change in working capital. if we move on to the cash flow the cash flow from operating activities increased by sek 10 million to sek 110 million mainly due to a positive change in working capital The positive change in working capital is related to lower receivables. the positive change in working capital is related to lower receivables We had quite high sales in the second quarter this year, and a lot of those payments came in the third quarter. we had quite high sales in the second quarter this year and a lot of those payments came in the third quarter The receivables decreased by SEK 49 million. the receivables decreased by sek 49 million We had higher payables of SEK 2 million, and this was offset by a higher inventory of SEK 10 million. we had higher payables of sek 2 million and this was offset by a higher inventory of sek 10 million All of these variations are basically normal variations that we have. There is nothing, no one-offs or anything like that. That leads to a cash flow for the period of SEK 107 million versus SEK 111 million last year. Basically a flat cash flow and a cash at the end of the period of SEK 728 million versus SEK 1.11 billion in the same quarter last year. With that, I hand over to Theresa for some concluding remarks. All of these variations are basically normal variations that we have. There is nothing, no one-offs or anything like that. all of these variations are basically normal variations that we have. there is nothing no one-offs or anything like that That leads to a cash flow for the period of SEK 107 million versus SEK 111 million last year. that leads to a cash flow for the period of sek 107 million versus sek 111 million last year Basically a flat cash flow and a cash at the end of the period of SEK 728 million versus SEK 1.11 billion in the same quarter last year. basically a flat cash flow and a cash at the end of the period of sek 728 million versus sek 1.11 billion in the same quarter last year With that, I hand over to Theresa for some concluding remarks. with that i hand over to theresa for some concluding remarks

Speaker 6: In summary, as we said in the third quarter, our overall organic growth was 14% and an overall increase of 7%. If you look year to date, we also grew 8% organically and up 4% with the currency effects. In the pediatric segment, we grew 7% in the quarter, 14% excluding the foreign currency effects. Strong growth of BioGaia Protectis Drops, as I said, in Asia Pacific and Latin America. The adult health segment is growing nicely for us, 13% organically and 6% including exchange effects. Year to date, 16% as well as 20% excluding the currency exchange effects. We are seeing particularly strong growth of our BioGaia Gastrus product line, which falls into our adult gut health segment, as well as the BioGaia ProDentis, which falls into our oral health segment in the U.S. In Americas and Asia Pacific, those two regions both delivered double-digit growth. In summary, as we said in the third quarter, our overall organic growth was 14% and an overall increase of 7%. in summary as we said in the third quarter our overall organic growth was 14% and an overall increase of 7% If you look year to date, we also grew 8% organically and up 4% with the currency effects. if you look year to date we also grew 8% organically and up 4% with the currency effects In the pediatric segment, we grew 7% in the quarter, 14% excluding the foreign currency effects. in the pediatric segment we grew 7% in the quarter 14% excluding the foreign currency effects Strong growth of BioGaia Protectis Drops, as I said, in Asia Pacific and Latin America. strong growth of biogaia protectis drops as i said in asia pacific and latin america The adult health segment is growing nicely for us, 13% organically and 6% including exchange effects. the adult health segment is growing nicely for us 13% organically and 6% including exchange effects Year to date, 16% as well as 20% excluding the currency exchange effects. year to date 16% as well as 20% excluding the currency exchange effects We are seeing particularly strong growth of our BioGaia Gastrus product line, which falls into our adult gut health segment, as well as the BioGaia ProDentis, which falls into our oral health segment in the U.S. we are seeing particularly strong growth of our biogaia gastrus product line which falls into our adult gut health segment as well as the biogaia prodentis which falls into our oral health segment in the u.s In Americas and Asia Pacific, those two regions both delivered double-digit growth. in americas and asia pacific those two regions both delivered double-digit growth Sales in EMEA declined slightly compared to the same quarter last year. That was primarily driven by weaker performance in Eastern Europe. We are investing in marketing and selling activities this year to drive strong growth in our direct markets. We have seen a nice result of that with strong double-digit growth in the quarter and year to date in the U.S. Some of this is obviously offset by currency effects, as well as lower sales in EMEA due to certain partners. When we take markets direct, what we typically see is we see lower sales up front when we're establishing the direct markets because our partners are typically selling through their prior inventory. As we are establishing these direct markets in France and Germany, we'll see some lower sales, and then that will then pick up once the prior inventory is sold through. Sales in EMEA declined slightly compared to the same quarter last year. sales in emea declined slightly compared to the same quarter last year That was primarily driven by weaker performance in Eastern Europe. that was primarily driven by weaker performance in eastern europe We are investing in marketing and selling activities this year to drive strong growth in our direct markets. we are investing in marketing and selling activities this year to drive strong growth in our direct markets We have seen a nice result of that with strong double-digit growth in the quarter and year to date in the U.S. we have seen a nice result of that with strong double-digit growth in the quarter and year to date in the u.s Some of this is obviously offset by currency effects, as well as lower sales in EMEA due to certain partners. some of this is obviously offset by currency effects as well as lower sales in emea due to certain partners When we take markets direct, what we typically see is we see lower sales up front when we're establishing the direct markets because our partners are typically selling through their prior inventory. when we take markets direct what we typically see is we see lower sales up front when we're establishing the direct markets because our partners are typically selling through their prior inventory As we are establishing these direct markets in France and Germany, we'll see some lower sales, and then that will then pick up once the prior inventory is sold through. as we are establishing these direct markets in france and germany we'll see some lower sales and then that will then pick up once the prior inventory is sold through The strong double-digit growth in the markets where we're investing is offset by these things. Our adjusted operating margin of 26% is for the quarter and then 27% year to date. As we said, we also had an extraordinary general meeting to elect Maurizio Graber as our new Chairman. We will now turn it over for any questions that you may have. The strong double-digit growth in the markets where we're investing is offset by these things. the strong double-digit growth in the markets where we're investing is offset by these things Our adjusted operating margin of 26% is for the quarter and then 27% year to date. our adjusted operating margin of 26% is for the quarter and then 27% year to date As we said, we also had an extraordinary general meeting to elect Maurizio Graber as our new Chairman. as we said we also had an extraordinary general meeting to elect maurizio graber as our new chairman We will now turn it over for any questions that you may have. we will now turn it over for any questions that you may have

Speaker 3: If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Kristofer Liljeberg from DNB Carnegie. Please go ahead. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. if you wish to ask a question please dial pound key five on your telephone keypad to enter the queue If you wish to withdraw your question, please dial pound key six on your telephone keypad. if you wish to withdraw your question please dial pound key six on your telephone keypad The next question comes from Kristofer Liljeberg from DNB Carnegie. the next question comes from kristofer liljeberg from dnb carnegie Please go ahead. please go ahead

Speaker 1: Yes, thank you. It's good to hear that direct sales seem to do well. Is it possible to give a figure for how large share of total sales that now represent? That's my first question. The second question is on the extra marketing investment. Is it possible to quantify how that has impacted sales? You're talking about good momentum in the U.S., but maybe if you could quantify that. When it comes to the reason for weakness in Eastern Europe, anything particular there? If I remember correctly, you have one large distributor, so I don't know if it's some destocking stocking effects impacting there as well. Thank you. Yes, thank you. yes thank you It's good to hear that direct sales seem to do well. it's good to hear that direct sales seem to do well Is it possible to give a figure for how large share of total sales that now represent? is it possible to give a figure for how large share of total sales that now represent That's my first question. that's my first question The second question is on the extra marketing investment. the second question is on the extra marketing investment Is it possible to quantify how that has impacted sales? is it possible to quantify how that has impacted sales You're talking about good momentum in the U.S., but maybe if you could quantify that. you're talking about good momentum in the u.s but maybe if you could quantify that When it comes to the reason for weakness in Eastern Europe, anything particular there? when it comes to the reason for weakness in eastern europe anything particular there If I remember correctly, you have one large distributor, so I don't know if it's some destocking stocking effects impacting there as well. if i remember correctly you have one large distributor so i don't know if it's some destocking stocking effects impacting there as well Thank you. thank you

Speaker 6: Yeah. The first question around what percentage of our sales the direct markets now represent, that's approximately 36% of our overall sales. Frankly, we anticipate that to continue to grow because as we grow the business in France and then Germany and Austria next year, it will get to be a bigger percentage of our sales. In terms of our marketing investment, to quantify that more, the majority of our investment by far is in the U.S. We also have made some smaller investments in the U.K., Canada, and Australia. The U.S. business is doing extremely well. Over 20% growth in the U.S., so very, very strong results from our investments around marketing and media. In terms of Eastern Europe, you are right. We have one. Yeah. yeah The first question around what percentage of our sales the direct markets now represent, that's approximately 36% of our overall sales. the first question around what percentage of our sales the direct markets now represent that's approximately 36% of our overall sales Frankly, we anticipate that to continue to grow because as we grow the business in France and then Germany and Austria next year, it will get to be a bigger percentage of our sales. frankly we anticipate that to continue to grow because as we grow the business in france and then germany and austria next year it will get to be a bigger percentage of our sales In terms of our marketing investment, to quantify that more, the majority of our investment by far is in the U.S. in terms of our marketing investment to quantify that more the majority of our investment by far is in the u.s We also have made some smaller investments in the U.K., Canada, and Australia. we also have made some smaller investments in the u.k canada and australia The U.S. business is doing extremely well. the u.s business is doing extremely well Over 20% growth in the U.S., so very, very strong results from our investments around marketing and media. over 20% growth in the u.s so very very strong results from our investments around marketing and media In terms of Eastern Europe, you are right. in terms of eastern europe you are right We have one. we have one

Speaker 1: Before you say, could I just follow up on these two? The 20% growth in the U.S., I guess that's currency adjusted. Is that in the quarter or year to date? Before you say, could I just follow up on these two? before you say could i just follow up on these two The 20% growth in the U.S., I guess that's currency adjusted. the 20% growth in the u.s i guess that's currency adjusted Is that in the quarter or year to date? is that in the quarter or year to date

Speaker 6: That's overall year to date. What I'm quoting is more year to date, but similar also in the quarter itself. That's overall year to date. that's overall year to date What I'm quoting is more year to date, but similar also in the quarter itself. what i'm quoting is more year to date but similar also in the quarter itself

Speaker 1: Okay, that's very helpful. Thank you. Just on the first one, the 36% overall or 36% share in direct sales, is that in the quarter or last month or however? Okay, that's very helpful. okay that's very helpful Thank you. thank you Just on the first one, the 36% overall or 36% share in direct sales, is that in the quarter or last month or however? just on the first one the 36% overall or 36% share in direct sales is that in the quarter or last month or however

Speaker 6: That's in the quarter. That's in the quarter. that's in the quarter

Speaker 1: Perfect. Thank you. My final question, sorry. Perfect. perfect Thank you. thank you My final question, sorry. my final question sorry

Speaker 6: Yes. In Eastern Europe, you are right. We have one partner, Evo Pharma, that covers about 16 markets across Eastern Europe. There is some order variability that is happening there. We anticipate that there will be increased orders and there's transferability from one quarter to the other in terms of those markets. Yes. yes In Eastern Europe, you are right. in eastern europe you are right We have one partner, Evo Pharma, that covers about 16 markets across Eastern Europe. we have one partner evo pharma that covers about 16 markets across eastern europe There is some order variability that is happening there. there is some order variability that is happening there We anticipate that there will be increased orders and there's transferability from one quarter to the other in terms of those markets. we anticipate that there will be increased orders and there's transferability from one quarter to the other in terms of those markets

Speaker 1: Thank you very much. Thank you very much. thank you very much

Speaker 3: The next question comes from Mattias Vadsten from SEB. Please go ahead. The next question comes from Mattias Vadsten from SEB. the next question comes from mattias vadsten from seb Please go ahead. please go ahead

Speaker 4: Good morning. Thanks for taking my question. First one, I was curious to hear a bit more on EMEA. Maybe if you could quantify what impact the transition to own sales had in Q3 year-over-year on growth. Is that a reason, a role for EMEA declining here? Also, if you can talk about the impact this could have on organic growth for the coming quarters. If you see sort of EMEA returning to growth near-term based on order variability in Eastern Europe, that's the first one. Thanks. Good morning. good morning Thanks for taking my question. thanks for taking my question First one, I was curious to hear a bit more on EMEA. first one i was curious to hear a bit more on emea Maybe if you could quantify what impact the transition to own sales had in Q3 year- over- year on growth. maybe if you could quantify what impact the transition to own sales had in q3 year- over- year on growth Is that a reason, a role for EMEA declining here? is that a reason a role for emea declining here Also, if you can talk about the impact this could have on organic growth for the coming quarters. also if you can talk about the impact this could have on organic growth for the coming quarters If you see sort of EMEA returning to growth near-term based on order variability in Eastern Europe, that's the first one. if you see sort of emea returning to growth near-term based on order variability in eastern europe that's the first one Thanks. thanks

Speaker 6: Yeah. In terms of own sales in EMEA, because we have taken France direct, we have seen year to date a decline in sales because our partner has been then selling through their inventory, so not ordering from us and also selling through their inventory. We started selling in Q2, but in very small amounts. Now we're starting to see that pick up as expected. Whenever we take a market direct, we anticipate that there will be lower sales for a period of time, and then it will start to grow as inventory is sold through in the markets. That is the own markets, the own sales is a reason for decline in EMEA around France. France is a very big market for us in EMEA. That of course can be offset by some of the other markets, but they're much smaller. Finland, as an own market, is growing really well. U.K., as an own market, is growing double digits. Because France is such a large market for us in Europe, it offsets those. Yeah. yeah In terms of own sales in EMEA, because we have taken France direct, we have seen year to date a decline in sales because our partner has been then selling through their inventory, so not ordering from us and also selling through their inventory. in terms of own sales in emea because we have taken france direct we have seen year to date a decline in sales because our partner has been then selling through their inventory so not ordering from us and also selling through their inventory We started selling in Q2, but in very small amounts. we started selling in q2 but in very small amounts Now we're starting to see that pick up as expected. now we're starting to see that pick up as expected Whenever we take a market direct, we anticipate that there will be lower sales for a period of time, and then it will start to grow as inventory is sold through in the markets. whenever we take a market direct we anticipate that there will be lower sales for a period of time and then it will start to grow as inventory is sold through in the markets That is the own markets, the own sales is a reason for decline in EMEA around France. that is the own markets the own sales is a reason for decline in emea around france France is a very big market for us in EMEA. france is a very big market for us in emea That of course can be offset by some of the other markets, but they're much smaller. that of course can be offset by some of the other markets but they're much smaller Finland, as an own market, is growing really well. finland as an own market is growing really well U.K., as an own market, is growing double digits. u.k as an own market is growing double digits Because France is such a large market for us in Europe, it offsets those. because france is such a large market for us in europe it offsets those

Speaker 4: Thanks. That was what I thought as well. In terms of Germany and Austria, could you just elaborate how we should see that transition, sort of how it looked in Q3, and how does it look in those markets? Thanks. thanks That was what I thought as well. that was what i thought as well In terms of Germany and Austria, could you just elaborate how we should see that transition, sort of how it looked in Q3, and how does it look in those markets? in terms of germany and austria could you just elaborate how we should see that transition sort of how it looked in q3 and how does it look in those markets

Speaker 6: Yes. Good question. We will see a similar effect with Germany and Austria, where we will see some declining orders in terms of the partner ordering from us, and they will be selling through their inventory into next year. We will be able to start selling. Just like France, we'll see a period of time where we will start to increase sales in early next year and then see more benefit in the second half. Yes. yes Good question. good question We will see a similar effect with Germany and Austria, where we will see some declining orders in terms of the partner ordering from us, and they will be selling through their inventory into next year. we will see a similar effect with germany and austria where we will see some declining orders in terms of the partner ordering from us and they will be selling through their inventory into next year We will be able to start selling. we will be able to start selling Just like France, we'll see a period of time where we will start to increase sales in early next year and then see more benefit in the second half. just like france we'll see a period of time where we will start to increase sales in early next year and then see more benefit in the second half

Speaker 4: Perfect. Would you say this effect was already there in Q3? Perfect. perfect Would you say this effect was already there in Q3? would you say this effect was already there in q3

Speaker 6: I'm sorry? I'm sorry? i'm sorry

Speaker 4: For Germany and Austria? For Germany and Austria? for germany and austria

Speaker 6: Yes. Yes. yes

Speaker 4: Would you say the impact? Okay. That was there in Q3. Would you say the impact? would you say the impact Okay. okay That was there in Q3. that was there in q3

Speaker 6: Yes. Yes. yes

Speaker 4: Okay. That all makes sense. Thank you very much. In terms of OpEx, it has been up some, I guess, with some variability, but sort of 20% for the four past quarters now. I'm just looking ahead. Q4 last year, you had quite a steep OpEx increase. Do you see the growth in OpEx coming down a little bit in the quarters ahead, or how should we see that? Thank you. Okay. okay That all makes sense. that all makes sense Thank you very much. thank you very much In terms of OpEx, it has been up some, I guess, with some variability, but sort of 20% for the four past quarters now. in terms of opex it has been up some i guess with some variability but sort of 20% for the four past quarters now I'm just looking ahead. i'm just looking ahead Q4 last year, you had quite a steep OpEx increase. q4 last year you had quite a steep opex increase Do you see the growth in OpEx coming down a little bit in the quarters ahead, or how should we see that? do you see the growth in opex coming down a little bit in the quarters ahead or how should we see that Thank you. thank you

Speaker 5: Yeah. The OpEx, I think in the fourth quarter, normally we have seasonal effects whereby we have some seasonally increased OpEx in the fourth quarter, for example, in the U.S. market. Without providing any guidance, I mean, our costs, normally they will go up somewhat in the fourth quarter. Yeah. yeah The OpEx, I think in the fourth quarter, normally we have seasonal effects whereby we have some seasonally increased OpEx in the fourth quarter, for example, in the U.S. market. the opex i think in the fourth quarter normally we have seasonal effects whereby we have some seasonally increased opex in the fourth quarter for example in the u.s market Without providing any guidance, I mean, our costs, normally they will go up somewhat in the fourth quarter. without providing any guidance i mean our costs normally they will go up somewhat in the fourth quarter

Speaker 4: Perfect. I have one final question, if that's okay. The new patent, that strain that you bring up in the presentation, L. reuteri BGR46, if you could just talk a bit in general about this and maybe how it would be included in your sort of broad product offering that you have today, and then maybe a potential combination with, yeah, DSM 17938 in Colic Drops, for instance. A general run-through of how you see that being included in the offering. Perfect. perfect I have one final question, if that's okay. i have one final question if that's okay The new patent, that strain that you bring up in the presentation, L. reuteri BGR46, if you could just talk a bit in general about this and maybe how it would be included in your sort of broad product offering that you have today, and then maybe a potential combination with, yeah, DSM 17938 in Colic Drops, for instance. the new patent that strain that you bring up in the presentation l. reuteri bgr46 if you could just talk a bit in general about this and maybe how it would be included in your sort of broad product offering that you have today and then maybe a potential combination with yeah dsm 17938 in colic drops for instance A general run-through of how you see that being included in the offering. a general run-through of how you see that being included in the offering

Speaker 6: Yes. BGR46 is an important strain for us for the future. It is a patented strain that we will include in new products. We have talked before about how we look to launch a new product that will be a combination product of our DSM 17 strain and our new patented strain. This is the new patented strain that would then be in combination with our DSM 17 strain in new products. We will have more information out on that in the near future. We are conducting a clinical study on a new dropped product. More to come on that when we get our results in. We will be including this strain in multiple new products across what we call our grow the core. It will be in colic-oriented products. It will be in other categories as well, immune health, gut health, and so forth. Yes. yes BGR46 is an important strain for us for the future. bgr46 is an important strain for us for the future It is a patented strain that we will include in new products. it is a patented strain that we will include in new products We have talked before about how we look to launch a new product that will be a combination product of our DSM 17 strain and our new patented strain. we have talked before about how we look to launch a new product that will be a combination product of our dsm 17 strain and our new patented strain This is the new patented strain that would then be in combination with our DSM 17 strain in new products. this is the new patented strain that would then be in combination with our dsm 17 strain in new products We will have more information out on that in the near future. we will have more information out on that in the near future We are conducting a clinical study on a new dropped product. we are conducting a clinical study on a new dropped product More to come on that when we get our results in. more to come on that when we get our results in We will be including this strain in multiple new products across what we call our grow the core. we will be including this strain in multiple new products across what we call our grow the core It will be in colic-oriented products. it will be in colic-oriented products It will be in other categories as well, immune health, gut health, and so forth. it will be in other categories as well immune health gut health and so forth

Speaker 4: Very clear answer. Thank you very much. Very clear answer. very clear answer Thank you very much. thank you very much

Speaker 3: The next question comes from Matthias Hegblom from Handelsbanken. Please go ahead. The next question comes from Matthias Hegblom from Handelsbanken. the next question comes from matthias hegblom from handelsbanken Please go ahead. please go ahead Good morning. Thanks so much. I have two questions, please. Firstly, with a new Chairman as well as a new principal shareholder, I'm curious to hear how the board's work has changed, if at all. Is there, for example, a strategic review plan together with the board to reassure all interests are aligned with regards to the path ahead? Secondly, sort of related to this, I guess we're in the middle of budget planning heading into 2026. With OpEx up 29% year to date, investor feedback suggests this remains a focus area. At least help me think about the pace of OpEx going into 2026, at least directionally. Good morning. good morning Thanks so much. thanks so much I have two questions, please. i have two questions please Firstly, with a new Chairman as well as a new principal shareholder, I'm curious to hear how the board's work has changed, if at all. firstly with a new chairman as well as a new principal shareholder i'm curious to hear how the board's work has changed if at all Is there, for example, a strategic review plan together with the board to reassure all interests are aligned with regards to the path ahead? is there for example a strategic review plan together with the board to reassure all interests are aligned with regards to the path ahead Secondly, sort of related to this, I guess we're in the middle of budget planning heading into 2026. secondly sort of related to this i guess we're in the middle of budget planning heading into 2026 With OpEx up 29% year to date, investor feedback suggests this remains a focus area. with opex up 29% year to date investor feedback suggests this remains a focus area At least help me think about the pace of OpEx going into 2026, at least directionally. at least help me think about the pace of opex going into 2026 at least directionally

Speaker 6: Okay. In terms of the board, with Maurizio as our new Chairman, we have had two board meetings where we have talked about numerous things. We have also updated on our strategic plan. That has been included in all of our discussions with our new Chairman. We will be doing, as a typical part of our process, a strategic review in terms of our strategic plan with the board upcoming. That is a normal part of how we operate. Maurizio has now been involved in two board meetings thus far since August. If Alex wants to talk a little bit about OpEx, I think you had a question on the OpEx. Okay. okay In terms of the board, with Maurizio as our new Chairman, we have had two board meetings where we have talked about numerous things. in terms of the board with maurizio as our new chairman we have had two board meetings where we have talked about numerous things we have also updated on our strategic plan that has been included in all of our discussions with our new chairman we will be doing as a typical part of our process a strategic review in terms of our strategic plan with the board upcoming that is a normal part of how we operate. m aurizio has now been involved in two board meetings thus far since august if alex wants to talk a little bit about opex i think you had a question on the opex We have also updated on our strategic plan. we have had two board meetings where we have talked about numerous things we have also updated on our strategic plan that has been included in all of our discussions with our new chairman we will be doing as a typical part of our process a strategic review in terms of our strategic plan with the board upcoming that is a normal part of how we operate. m aurizio has now been involved in two board meetings thus far since august if alex wants to talk a little bit about opex i think you had a question on the opex That has been included in all of our discussions with our new Chairman. we have had two board meetings where we have talked about numerous things we have also updated on our strategic plan that has been included in all of our discussions with our new chairman we will be doing as a typical part of our process a strategic review in terms of our strategic plan with the board upcoming that is a normal part of how we operate. m aurizio has now been involved in two board meetings thus far since august if alex wants to talk a little bit about opex i think you had a question on the opex We will be doing, as a typical part of our process, a strategic review in terms of our strategic plan with the board upcoming. we have had two board meetings where we have talked about numerous things we have also updated on our strategic plan that has been included in all of our discussions with our new chairman we will be doing as a typical part of our process a strategic review in terms of our strategic plan with the board upcoming that is a normal part of how we operate. m aurizio has now been involved in two board meetings thus far since august if alex wants to talk a little bit about opex i think you had a question on the opex That is a normal part of how we operate. M aurizio has now been involved in two board meetings thus far since August. we have had two board meetings where we have talked about numerous things we have also updated on our strategic plan that has been included in all of our discussions with our new chairman we will be doing as a typical part of our process a strategic review in terms of our strategic plan with the board upcoming that is a normal part of how we operate. m aurizio has now been involved in two board meetings thus far since august if alex wants to talk a little bit about opex i think you had a question on the opex If Alex wants to talk a little bit about OpEx , I think you had a question on the OpEx. we have had two board meetings where we have talked about numerous things we have also updated on our strategic plan that has been included in all of our discussions with our new chairman we will be doing as a typical part of our process a strategic review in terms of our strategic plan with the board upcoming that is a normal part of how we operate. m aurizio has now been involved in two board meetings thus far since august if alex wants to talk a little bit about opex i think you had a question on the opex

Speaker 5: Yeah. Basically, I mean, we do have this ambition, of course. Our financial target is to have a 34% margin, and we're not there at the moment. Our ambition is to improve this going forward. We will improve our EBIT margin, basically, going forward without specifying exactly when, but that is our ambition for next year. Basically, our OpEx will not grow to the same extent as our gross profit will grow. It will grow to a lesser extent. Yeah. yeah Basically, I mean, we do have this ambition, of course. basically i mean we do have this ambition of course Our financial target is to have a 34% margin, and we're not there at the moment. our financial target is to have a 34% margin and we're not there at the moment Our ambition is to improve this going forward. our ambition is to improve this going forward We will improve our EBIT margin, basically, going forward without specifying exactly when, but that is our ambition for next year. we will improve our ebit margin basically going forward without specifying exactly when but that is our ambition for next year Basically, our OpEx will not grow to the same extent as our gross profit will grow. basically our opex will not grow to the same extent as our gross profit will grow It will grow to a lesser extent. it will grow to a lesser extent

Speaker 6: Also, just to add to that, as you know, with our direct markets, we have a level of investment that we do with the direct markets. We run a very lean organization, so we don't have a lot of fixed costs, but we are making investments in those direct markets of France as well as Germany. Also, just to add to that, as you know, with our direct markets, we have a level of investment that we do with the direct markets. also just to add to that as you know with our direct markets we have a level of investment that we do with the direct markets We run a very lean organization, so we don't have a lot of fixed costs, but we are making investments in those direct markets of France as well as Germany. we run a very lean organization so we don't have a lot of fixed costs but we are making investments in those direct markets of france as well as germany Thank you. I have one follow-up. If OpEx is up 29% year to date and sales in the U.S. is up over 20%, where a majority of the investments have been targeted, how do investors build confidence that these investments actually do generate and translate into a good return? Thank you. thank you I have one follow-up. i have one follow-up If OpEx is up 29% year to date and sales in the U.S. is up over 20%, where a majority of the investments have been targeted, how do investors build confidence that these investments actually do generate and translate into a good return? if opex is up 29% year to date and sales in the u.s is up over 20% where a majority of the investments have been targeted how do investors build confidence that these investments actually do generate and translate into a good return Yeah. In terms of the future growth, what we can see is, some of the things that we've talked about in terms of direct markets, France and Germany, for instance, we have a lot of confidence in terms of how we will grow in those markets for the future. France is an extremely important European market for us. Frankly, Germany, we anticipate that we will grow our business substantially there because in the past, it has been smaller of the European businesses for us. We want to really focus in that market as well. If you look at where we're investing, we anticipate seeing the growth in those markets where we are investing: France, Germany, U.S., Canada. Yeah. yeah In terms of the future growth, what we can see is, some of the things that we've talked about in terms of direct markets, France and Germany, for instance, we have a lot of confidence in terms of how we will grow in those markets for the future. in terms of the future growth what we can see is some of the things that we've talked about in terms of direct markets france and germany for instance we have a lot of confidence in terms of how we will grow in those markets for the future France is an extremely important European market for us. france is an extremely important european market for us Frankly, Germany, we anticipate that we will grow our business substantially there because in the past, it has been smaller of the European businesses for us. frankly germany we anticipate that we will grow our business substantially there because in the past it has been smaller of the european businesses for us We want to really focus in that market as well. we want to really focus in that market as well If you look at where we're investing, we anticipate seeing the growth in those markets where we are investing: France, Germany, U.S., Canada. if you look at where we're investing we anticipate seeing the growth in those markets where we are investing france germany u.s canada I think everyone is aligned that these go direct-to-market initiatives have worked favorably. I think if there is a debate, it's more around this more short-term campaign investment, to say. I heard you say the majority of investment this year has been for the U.S., and the U.S. is up less than the OpEx for the group year to date. Is there any way you can share your confidence in that these more campaign-related investments as well translate into permanent good returns? I think everyone is aligned that these go direct-to-market initiatives have worked favorably. i think everyone is aligned that these go direct-to-market initiatives have worked favorably I think if there is a debate, it's more around this more short-term campaign investment, to say. i think if there is a debate it's more around this more short-term campaign investment to say I heard you say the majority of investment this year has been for the U.S., and the U.S. is up less than the OpEx for the group year to date. i heard you say the majority of investment this year has been for the u.s and the u.s is up less than the opex for the group year to date Is there any way you can share your confidence in that these more campaign-related investments as well translate into permanent good returns? is there any way you can share your confidence in that these more campaign-related investments as well translate into permanent good returns Yes. I mean, they are translating into good returns for us in the U.S. If you look at our spending in the U.S., we are driving considerable growth, as I said, over 20%. There are also currency impacts in terms of the U.S. dollar. Yes. yes I mean, they are translating into good returns for us in the U.S. i mean they are translating into good returns for us in the u.s If you look at our spending in the U.S., we are driving considerable growth, as I said, over 20%. if you look at our spending in the u.s we are driving considerable growth as i said over 20% There are also currency impacts in terms of the U.S. dollar. there are also currency impacts in terms of the u.s dollar Okay. The 20% includes the headwind from FX. In local accounts, the growth year to date in the U.S. may be even higher than 20%. Okay. okay The 20% includes the headwind from FX. the 20% includes the headwind from fx In local accounts, the growth year to date in the U.S. may be even higher than 20%. in local accounts the growth year to date in the u.s may be even higher than 20%

Speaker 5: That's correct. That's correct. that's correct

Speaker 6: That's correct. That's correct. that's correct Okay. That's very helpful. Thank you so much. Okay. okay That's very helpful. that's very helpful Thank you so much. thank you so much

Speaker 3: As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. The next question comes from Kristofer Liljeberg from DNB Carnegie. Please go ahead. Kristofer Liljeberg, your line is now unmuted. Please go ahead. As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. as a reminder if you wish to ask a question please dial pound key five on your telephone keypad The next question comes from Kristofer Liljeberg from DNB Carnegie. the next question comes from kristofer liljeberg from dnb carnegie Please go ahead. please go ahead Kristofer Liljeberg, your line is now unmuted. kristofer liljeberg your line is now unmuted Please go ahead. please go ahead

Speaker 1: Thank you. Two follow-up questions from me. I think you said that France had a record month in September. Is that also compared with the previous distributor's sales in a given month? Thank you. thank you Two follow-up questions from me. two follow-up questions from me I think you said that France had a record month in September. i think you said that france had a record month in september Is that also compared with the previous distributor's sales in a given month? is that also compared with the previous distributor's sales in a given month

Speaker 6: We don't track it by the previous distributor's sales in a given month. We don't have all of that information from our distributors, but just in terms of our sales in the French market. We don't track it by the previous distributor's sales in a given month. we don't track it by the previous distributor's sales in a given month We don't have all of that information from our distributors, but just in terms of our sales in the French market. we don't have all of that information from our distributors but just in terms of our sales in the french market

Speaker 1: Yeah, is this since you started to sell directly, or shipments or sales you have booked to a distributor previously in a given month as well? Yeah, is this since you started to sell directly, or shipments or sales you have booked to a distributor previously in a given month as well? yeah is this since you started to sell directly or shipments or sales you have booked to a distributor previously in a given month as well

Speaker 6: Yes. Yes. It is versus our sales to the distributor in a particular month. We do not always get all of the sellout information and what the sales is in market from our partners. Yes. yes Yes. yes It is versus our sales to the distributor in a particular month. it is versus our sales to the distributor in a particular month We do not always get all of the sellout information and what the sales is in market from our partners. we do not always get all of the sellout information and what the sales is in market from our partners

Speaker 1: Yeah, that sounds very positive given that there must have been some months where they have had where the previous distributors have built inventory, etc. Yeah, that sounds very positive given that there must have been some months where they have had where the previous distributors have built inventory, etc. yeah that sounds very positive given that there must have been some months where they have had where the previous distributors have built inventory etc

Speaker 6: Yes, it is very positive for us. With our taking this market direct, we now have a broader opportunity for distribution. We are still working on this, but the sales force that we have hired actually has access to even more distribution points than our previous partner. That is one of our goals, to drive our distribution further. Yes, it is very positive for us. yes it is very positive for us With our taking this market direct, we now have a broader opportunity for distribution. We are still working on this, but the sales force that we have hired actually has access to even more distribution points than our previous partner. with our taking this market direct we now have a broader opportunity for distribution. we are still working on this but the sales force that we have hired actually has access to even more distribution points than our previous partner That is one of our goals, to drive our distribution further. that is one of our goals to drive our distribution further

Speaker 1: Great. Thank you. Nice to see the pediatric margin improving in the quarter. I think, Alex, you mentioned some price adjustment, etc. It sounds this should be a sustainable level or was it a very positive mix also in the quarter that explains this. Great. great Thank you. thank you Nice to see the pediatric margin improving in the quarter. nice to see the pediatric margin improving in the quarter I think, Alex, you mentioned some price adjustment, etc. It sounds this should be a sustainable level or was it a very positive mix also in the quarter that explains this. i think alex you mentioned some price adjustment etc it sounds this should be a sustainable level or was it a very positive mix also in the quarter that explains this

Speaker 5: Yeah, it's always difficult to know exactly, but I mean, we hope it's fairly sustainable, yes, unless there are some negative surprises. It should be sustainable. Yeah, it's always difficult to know exactly, but I mean, we hope it's fairly sustainable, yes, unless there are some negative surprises. yeah it's always difficult to know exactly but i mean we hope it's fairly sustainable yes unless there are some negative surprises It should be sustainable. it should be sustainable

Speaker 1: Great. Thank you so much. Great. great Thank you so much. thank you so much

Speaker 3: There are no more questions at this time. I hand the conference back to the speakers for any closing comments. There are no more questions at this time. there are no more questions at this time I hand the conference back to the speakers for any closing comments. i hand the conference back to the speakers for any closing comments

Speaker 6: Thank you for your questions. We appreciate the time to review our Q3 results. We will speak with you again for next quarter. Thank you. Thank you for your questions. thank you for your questions We appreciate the time to review our Q3 results. we appreciate the time to review our q3 results We will speak with you again for next quarter. we will speak with you again for next quarter Thank you. thank you